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HomeMy WebLinkAboutCity of Euless Annual Operating Budget FY2019City of Euless Annual Operating Budget Fiscal Year Ending September 30, 2019 201 N. Ector Drive, Euless, TX 76039 www.eulesstx.gov                       City of Euless, Texas Fiscal Year 2018-2019 Budget Cover Page September 11, 2018 This budget will raise more revenue from property taxes than last year's budget by an amount of $738,232, which is a 4.21 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $371,232. The members of the governing body voted on the budget as follows: FOR: Linda Martin, Mayor Tim Stinneford, Mayor Pro Tem, Place 1 Jeremy Tompkins, Place 2 Eddie Price, Place 3 Linda Eilenfeldt, Place 4 Harry Zimmer, Place 5 Salman Bhojani, Place 6 AGAINST: PRESENT and not voting: ABSENT: Property Tax Rate Comparison 2018-2019 2017-2018 Property Tax Rate: $0.462500/100 $0.462500/100 Effective Tax Rate: $0.434906/100 $0.432693/100 Effective Maintenance & Operations Tax Rate: $0.340309/100 $0.336044/100 Rollback Tax Rate: $0.463482/100 $0.470245/100 Debt Rate: $0.090790/100 $0.101444/100 Total debt obligation for City of Euless, Texas secured by property taxes: $62,434,140                       CITY OF EULESS FISCAL YEAR 2018-2019 LINDA MARTIN, MAYOR Tim Stinneford, Place One, Mayor Pro Tem Jeremy Tompkins, Council Member – Place Two Eddie Price, Council Member – Place Three Linda Eilenfeldt, Council Member – Place Four Harry Zimmer, Council Member – Place Five Salman Bhojani, Council Member – Place Six Loretta Getchell, City Manager Bob Freeman, Deputy City Manager Chris Barker, Assistant City Manager The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Euless, Texas for its annual budget for the fiscal year beginning October 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operational guide, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. *As of December 11, 2018 2018 B O A R D S & C O M M I S S I O N S Animal Shelter Advisory Board (2) Dr. Susan Read Scott Cepak Council Member Eddie Price Civil Service Commission (3) Carla Shields John Deithloff Bobby Baker Crime Control & Prevention District (3) Ron Shields Rusty Brown Mike Pruitt Council Member Eddie Price Council Member Harry Zimmer Council Member Linda Eilenfeldt Council Member Jeremy Tompkins Euless Development Corporation (3) Sonja Adams Jason Turner Carmen Deithloff Mayor Linda Martin Mayor Pro Tem Tim Stinneford Council Member Jeremy Tompkins Council Member Linda Eilenfeldt Historical Preservation Committee (36) Gary Barnhill Jan Bellamy-Genee Doris Brown Alford Browning Dan Burger Michele Burger Bill Byers Joe Cannon Weldon Cannon Barbara Collier Iris Elliot Susan Ellis Gary Fieldsend Betty Fuller Bill Golden Kathey Knecht Norma Lively Marilyn Long Don Martin David Massey Veva Lou Massey Anniece McKanna Suzy McCormick Robert Nail Gary Parker Helen Payton Lindalyn Pool Mary Lib Saleh Corey Stack Faye Stinneford Jeffrey Taylor Peggy Vandiver Helen Voss Glenn Walker Andy Weinzapfel Mavy T. Wright Industrial Development Authority Mayor Linda Martin Mayor Pro Tem Tim Stinneford Council Member Eddie Price Council Member Jeremy Tompkins Council Member Linda Eilenfeldt Council Member Harry Zimmer Council Member Salman Bhojani Library Board (7) Allan Gibbs Jim Hamilton Mike McGehee Christopher McAllister Barney Snitz Magen Brown Leslie Kane, Alt. 1 Parks and Leisure Services Board (6) Jason Reyes John Raab Randy Jones Steve Doty Roger Sickler Mohib Nawab, Alt. 2 Planning and Zoning Commission (7) Eric Owens Curtis Brown LuAnn Portugal Richard McNeese Ronald Dunckel Steve Ellis Warren Wilson Tax Increment Reinvestment Zone #3 (3) Rebecca Barksdale – Tarrant Cty Prcnt 3 Administrator Scott Rule – Vice President, JPS Health Network Mark McClendon – Staff Liaison, TCC District Mayor Linda Martin Mayor Pro Tem Tim Stinneford Council Member Linda Eilenfeldt Council Member Eddie Price Tax Increment Reinvestment Zone #4 (3) Rebecca Barksdale – Tarrant Cty Prcnt 3 Administrator Scott Rule – Vice President, JPS Health Network Mark McClendon – Staff Liaison, TCC District Mayor Linda Martin Mayor Pro Tem Tim Stinneford Council Member Linda Eilenfeldt Council Member Eddie Price Zoning Board of Adjustment (7) Steven Elliott Clarence Moore Ron Young Ruby Anne Crites Charles Cinquemani David Brown, Alt. 1 Carol Dufinetz, Alt. 2 HEB Teen Court Advisory Board (4) Robin Edwards Renu Sloan Moses Vakalahi, Alt. 1 Katie Shue, Alt. 2 Liaison - Council Member Eddie Price Other Appointments CITY HEALTH AUTHORITY (1) Robert Tafel, M.D. NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS (NCTCOG) Mayor Linda Martin HURST EULESS BEDFORD ISD LIAISON Council Member Jeremy Tompkins GRAPEVINE/COLLEYVILLE ISD LIAISON Council Member Harry Zimmer HURST-EULESS-BEDFORD ECONOMIC DEVELOPMENT FOUNDATION Council Member Linda Eilenfeldt, Liaison 81 CITIZEN BOARD MEMBERS TABLE OF CONTENTS  FY2018‐2019 OPERATING BUDGET    TITLE DESCRIPTION PAGE COVER PAGE      TAX BUDGET COVER  CITY OFFICIALS  BUDGET AWARD  BOARDS AND COMMISSIONS  TABLE OF CONTENTS  BUDGET MESSAGE City Manager's message highlighting major accomplishments i‐xvi COMBINED SUMMARY OF REVENUES,  EXPENDITURES AND CHANGES IN FUND  BALANCE  Consolidated statement of revenues, expenditures and changes  in fund balance for all funds with appropriations with  comparison to prior year  xvii‐xviii BUDGET SECTION I LETTER OF TRANSMITTAL FOR PROPOSED  BUDGET  1‐6 EXECUTIVE SUMMARIES 7‐9 FUND BALANCE SUMMARIES Summary of operating and capital funds 10‐16 WHERE DOES THE MONEY COME FROM? Listing of all operational funds, with pie charts illustrating  proportion of each to the total income  17 WHERE DOES THE MONEY GO? Listing of all operational funds, with pie charts illustrating  proportion of each to the total expenditures  18 GENERAL FUND REVENUES  Listing of revenue sources, with pie chart showing proportion  of each to total revenues  20 TAX RATE SCENARIOS 21 GENERAL FUND EXPENDITURES Details of departmental expenditures plus pie chart 22 WATER & WASTEWATER REVENUES Details and pie chart showing sources of revenues in the water  & wastewater fund  23 WATER & WASTEWATER EXPENDITURES Details and pie chart showing expenditures in this fund 24 ALL OTHER ENTERPRISE OPERATING FUNDS Summary of budgets for other enterprise funds, revenues and  expenditures  25 SPECIAL REVENUE OPERATING FUNDS Summary of budgets for special revenue, revenues and  expenditures  26‐27 INTERNAL SERVICE OPERATING FUNDS Summary of budgets for internal service funds, revenues and  expenditures  28 DEBT SERVICE OPERATING FUNDS Summary of budgets for debt service funds, revenues and  expenditures  29 PERSONNEL COUNTS Personnel statistics by departments and funds 30 BOND INDEBTEDNESS Summary of Outstanding Bond Indebtedness and Proposed  Bond Indebtedness  31 CAPITAL & SUPPLEMENTAL EXPENSES &  FUNDING  Detail of Capital & Supplemental items requested 32‐34    SUPPLEMENTARY DATA  SECTION II INTRODUCTION 36 WELCOME A look at the City of Euless ‐brief physical description of the  area  37‐40 MISSION STATEMENT 41 FISCAL YEAR 2018‐2019 GOALS MATRIX 42 GOALS & OBJECTIVES 43 ACCOMPLISHMENTS Highlights of accomplishments for FY2018 44‐46 RESIDENTIAL MONTHLY SERVICE  CHARGES/KEY FISCAL POINTS  Summary of utility charges, and key fiscal points 47 ORGANIZATIONAL CHART 48 BUDGET PROCESS Excerpts from City ordinance outlining major guidelines and  chronology  49‐51 BUDGET SCHEDULE 52 EXCERPTS FROM CITY CHARTER Reproduction of portions of City of Euless charter pertaining to  finance  53‐54 FISCAL POLICIES Fiscal policies adopted by City council applicable to all funds 55‐61 GENERAL FUND 62 GENERAL FUND SUMMARY 63 GENERAL FUND REVENUES Listing of revenue sources, with pie chart showing proportion  of each to total revenues  64 GENERAL FUND REVENUE ASSUMPTIONS Assumptions utilized for FY2019 budget 65 GENERAL FUND MULTI‐YEAR ANALYSIS General fund five‐year analysis 66 PROPERTY TAXES Detail of property tax revenue and history of tax rate  distribution  67 GENERAL FUND EXPENDITURES Details of departmental expenditures plus pie chart 68 CITY ADMINISTRATION All summaries include expenditure history, department goals,  program highlights and major budgetary and operational  trends, in addition to actual budget amounts  69‐70 FINANCE DEPARTMENT 71‐72 MUNICIPAL COURT 73‐74 POLICE DEPARTMENT 75‐76 FIRE DEPARTMENT 77‐78 ADMINISTRATIVE SERVICES DEPARTMENT 79‐80 PLANNING & DEVELOPMENT DEPARTMENT 81‐82 PARKS & COMMUNITY SERVICES  DEPARTMENT  83‐84 PUBLIC WORKS DEPARTMENT 85‐86 NON‐DEPARTMENTAL 87‐88 ENTERPRISE FUNDS 90 ENTERPRISE FUND SUMMARY 91 WATER & WASTEWATER REVENUES  Details and pie chart showing sources of revenues in the water  & wastewater fund  92 WATER & WASTEWATER REVENUE  ASSUMPTIONS  Assumptions utilized for FY2019 budget 93 WATER & WASTEWATER EXPENDITURES  Details and pie chart showing expenditures in this fund 94 FINANCE DEPARTMENT All summaries include expenditure history, fund or department  goals, program highlights and major budgetary and operational  trends, in addition to actual budget amounts  95‐96 PUBLIC WORKS DEPARTMENT 97‐98 NON‐DEPARTMENTAL 100 SERVICE CENTER FUND 101‐102 DRAINAGE/STORM WATER UTILITY FUND 103‐104 RECREATION CLASS FUND 105‐106 ARBOR DAZE FUND 108 TEXAS STAR GOLF COURSE FUND 109‐110 TEXAS STAR SPORTS COMPLEX FUND 111‐112 SPECIAL REVENUE FUNDS 114 SPECIAL REVENUE FUNDS SUMMARY 115 HOTEL OCCUPANCY TAX FUND All summaries include expenditure history, fund goals, program  highlights and major budgetary and operational trends, in  addition to actual budget amounts  116 EULESS DEVELOPMENT CORPORATION  FUND  117‐118 CRIME CONTROL AND PREVENTION  DISTRICT FUND  119‐120 CAR RENTAL TAX FUND 121 PUBLIC SAFETY SPECIAL REVENUE FUNDS 122 TIRZ & PID FUNDS 124 OTHER SPECIAL REVENUE FUNDS 125‐126 INTERNAL SERVICE FUNDS 128 INTERNAL SERVICE FUND SUMMARY 129 VEHICLE/EQUIPMENT REPLACEMENT FUND 130 INSURANCE/BENEFITS FUND 131‐132 RISK FUND 133‐134 CAPITAL IMPROVEMENTS 136 CAPITAL PROJECTS FUND SUMMARY 137 CAPITAL IMPROVEMENTS PROGRAM Definitions and descriptions 138 CAPITAL IMPROVEMENT PROGRAM POLICY Statement of purpose, scope, responsibility and types of plans,  guidelines for classifying projects, definitions and procedures  for capital improvement projects  139‐140 CURRENT CAPITAL PROJECTS FUNDS Brief description of various capital improvement funds 142 CAPITAL IMPROVEMENT PROGRAM Brief description of the capital improvement program 143 FUND BALANCE SUMMARY Summary of capital improvement funds 144‐146 PROPOSED & UNFUNDED – SORTED BY  TYPE  Summary of proposed projects with estimated costs and  proposed method of financing  147‐148 SUMMARY OF FUNDED PROJECTS Summary of appropriations and amendments, extensions, and  estimated project costs upon completion  149‐150 DEBT 152 DEBT FUNDS SUMMARY 153 RESERVE FUNDS SUMMARY 154 INTRODUCTION TO DEBT 155‐156 ANNUAL DEBT SERVICE Graph summarizing total annual debt service requirements 157 TOTAL GENERAL OBLIGATION DEBT  COMPOSITION OF DEBT SERVICE  Graph summarizing the general obligation 158 TAX‐SUPPORTED GENERAL OBLIGATION  DEBT COMPOSITION OF DEBT SERVICE  159 GENERAL OBLIGATION REFUNDING BONDS,  SERIES 2011  Debt service schedules 160 GENERAL OBLIGATION REFUNDING BONDS,  SERIES 2012  Debt service schedules 161 GENERAL OBLIGATION REFUNDING BONDS,  SERIES 2014  Debt service schedules 162 TAX ANTICIPATION NOTES, SERIES 2016 Debt service schedules 163 CISCO CAPITAL LEASE, SERIES 2016 Debt service schedules 164 TAX ANTICIPATION NOTES, SERIES 2017 Debt service schedules 165 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTIFICATES  OF OBLIGATION, SERIES 2018  Debt service schedules 166 TIRZ/PID‐SUPPORTED GENERAL  OBLIGATION DEBT COMPOSITION OF DEBT  SERVICE  Debt service schedules 167 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTFICATES  OF OBLIGATION, SERIES 2011  Debt service schedules 168 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTFICATES  OF OBLIGATION, SERIES 2011 (GLADE  PARKS)  Debt service schedules 169 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTFICATES  OF OBLIGATION, SERIES 2014 (GLADE  PARKS)  Debt service schedules 170 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTFICATES  OF OBLIGATION, SERIES 2015 (GLADE  PARKS PHASE 3)  Debt service schedules 171 TAX & WATERWORKS & SEWER SYSTEM  (LIMITED PLEDGE) REVENUE CERTFICATES  OF OBLIGATION, SERIES 2016 (MIDTOWN  DEVELOPMENT)  Debt service schedules 172 TAXABLE (SELF SUPPORTING) G. O. DEBT  COMPOSITION OF DEBT SERVICE  Graph summarizing debt service requirements 173 TAXABLE GENERAL OBLIGATION  REFUNDING BONDS, SERIES 2010  Debt service schedules 174 GOLF G.O. REFUNDING DEBT  COMPOSITION OF DEBT SERVICE  Graph summarizing debt service requirements 175 GENERAL OBLIGATION REFUNDING BONDS,  SERIES 2012A‐GOLF  Debt service schedules 176 WATER & WASTEWATER REVENUE DEBT  COMPOSITION OF DEBT SERVICE  Graph summarizing debt service requirements 177 WATERWORKS AND SEWER SYSTEM  REVENUE REFUNDING BONDS, SERIES 2012  Debt service schedules 178 WATERWORKS AND SEWER SYSTEM  REVENUE BONDS, SERIES 2013  Debt service schedules 179 WATERWORKS AND SEWER SYSTEM  REVENUE BONDS, SERIES 2015A (METERS)  Debt service schedules 180 WATERWORKS AND SEWER SYSTEM  REVENUE BONDS, SERIES 2015B  (RECLAIMED WATER SYSTEM)  Debt service schedules 181 WATERWORKS AND SEWER SYSTEM  REVENUE BONDS, SERIES 2018  Debt service schedules 182 SALES TAX REVENUE BOND DEBT  COMPOSITION OF DEBT SERVICE  Graph summarizing debt service requirements 183 EULESS DEVELOPMENT CORPORATION,  SALES TAX REVENUE REFUNDING BONDS,  SERIES 2012  Debt service schedules 184 APPENDICES 186 APPENDIX A Human Resources 188 PERSONNEL COUNTS BY DIVISION Full‐time personnel counts by department and division 189‐190 PERSONNEL COUNTS BY FUND Personnel counts by fund 191 APPENDIX B Financial Terminology 192 BASIS OF ACCOUNTING AND BUDGETING 194 FUND RELATIONSHIPS Brief description of funds, their purpose and relationship to  other funds  195‐196 FUND STRUCTURE Graphical representation of City funds 197 GLOSSARY OF TERMS 198‐203 APPENDIX C Ordinances 204 BUDGET ORDINANCE Ordinance No. 2199 205‐209 TAX RATE ORDINANCE Ordinance No. 2200 210‐213 TAX ROLL ORDINANCE Ordinance No. 2201 214‐215 APPENDIX D Multi‐Year Financial Plan 216 MULTI‐YEAR FINANCIAL PLAN Brief description of assumptions and procedures used in the  multi‐year financial plan  217‐220 GENERAL FUND EXECUTIVE SUMMARY Highlights assumptions made in the 5‐year general fund  operating plan  221 GENERAL FUND Five‐year financial plan 222 GENERAL FUND REVENUE ASSUMPTIONS Assumptions utilized for 5‐year financial plan 223 GENERAL OBLIGATION DEBT SERVICE Five‐year financial plan 224 HALF CENT SALES TAX FUND Five‐year financial plan 225 HALF CENT SALES TAX DEBT SERVICE AND  DEBT RESERVE FUNDS  Five‐year financial plan 226 CRIME CONTROL & PREVENTION DISTRICT  FUND  Five‐year financial plan 227 CAR RENTAL TAX FUND Five‐year financial plan 228 WATER & WASTEWATER EXECUTIVE  SUMMARY  Highlights assumptions made in the 5‐year water & wastewater  operating plan  229 WATER & WASTEWATER FUND Five‐year financial plan 230 WATER & WASTEWATER REVENUE  ASSUMPTIONS  Assumptions utilized for 5‐year operating plan 231 WATER & WASTEWATER DEBT SERVICE  FUND  Five‐year financial plan 232 DRAINAGE UTILITY FUND Five‐year financial plan 233 SERVICE CENTER FUND Five‐year financial plan 234 GOLF COURSE FUND Five‐year financial plan 235 TEXAS STAR SPORTS COMPLEX Five‐year financial plan 236 EQUIPMENT REPLACEMENT FUND Five‐year financial plan 237 HEALTH INSURANCE FUND Five‐year financial plan 238 OTHER INFORMATION Includes supplemental requests, capital requests and fleet  transfer schedule  239‐248    i  October 1, 2018 Honorable Mayor Linda Martin City Council: Tim Stinneford, Place One, Mayor Pro Tem Jeremy Tompkins, Place Two Eddie Price, Place Three Linda Eilenfeldt, Place Four Harry Zimmer, Place Five Salman Bhojani, Place Six In accordance with requirements of State law and the City of Euless' Home Rule Charter, the City of Euless, Texas Annual Operating and Capital budgets for the fiscal year beginning October 1, 2018 and ending September 30, 2019 are presented. The FY2018-19 budget, as presented, continues to provide quality services to citizens, customers, and community partners. The City of Euless has achieved many accomplishments over the last year. This budget reflects the positive financial condition of the City and meets the City’s mission to: Provide our citizens the most efficient services possible to protect and enhance the quality of life through planning and visionary leadership. The City accomplishes this mission through the utilization of sound fiscal policy directives, a conservative approach in revenue and expenditure forecasting and a continued effort to develop and enhance revenue sources. For FY2018-19, the City’s budget provides for continued programs and services, while maintaining the tax rate at $0.4625 per $100 valuation. Several factors continue to ensure the strength of the City’s budget, including:  Strategic planning for realization of long-term as well as short-term goals,  Fiscal management to monitor revenues, expenditures, and economic conditions to identify and address risks,  The quarter cent (¼¢) sales tax for crime control and prevention purposes which funds several public safety positions,  The half cent (½¢) sales tax which provides funding for economic development, library and park projects,  Net growth in residential and commercial property valuations over the past decade, and  Conservative sales tax revenue budgeting practices. FY2017-18 ACCOMPLISHMENTS The accomplishments highlighted below reflect the City’s achievement of several stated goals:  Promote a culture that instills a “sense of community,” builds confidence and promotes harmony between citizens, elected officials and City staff; specifically, the City held several ii  town hall meetings, various neighborhood meetings, Tongan and Nepali Community Committee meetings, and participated in several national night out events, as well as, many community events throughout the year to encourage open dialogue between residents, elected officials and City staff regarding needs within the community. The City participated with 6 Stones Mission Network in a variety of events to benefit the citizens of the community.  Continue the long-standing emphasis on providing a safe community through quality Public Safety and Health Services; specifically, the Fire Department maintained a Class 1 ISO (Insurance Service Organization) rating. This allows both commercial businesses and residents to benefit financially from decreased fire insurance premiums. The Euless Police and Fire Departments continued their commitment to community outreach through its neighborhood programs and proactive strategies designed to create interest and participation in making this community a safe place to live, work, and play including Coffee with a Cop, National Night Out, 6 Stones events, Fire Safety Clown programs, CFA (Citizens Fire Academy), CPA (Citizens Police Academy), CERT (Community Emergency Response Team) and Open Houses. The Police Department joined with the school district and conducted joint active shooter training in every public and private schools located within the City. They also provided Citizen Response to Active Shooter event training to our faith based community, business community, and City employees. Multi- jurisdictional entities, including Euless, joined together to provide emergency access to the newly constructed managed lanes along Midtown Express. Multi-jurisdictional programs continued with the Victims Assistance Liaison and Mental Health program and others including a drone program and a more inclusive approach to crime analysis in the area have started. The Police Department upgraded its body camera program and improved interoperability. The Code Compliance division continued the apartment PMI (Property Maintenance Inspection) program and has expanded the program to include hotel/motel inspections.  Employ high quality, professional, service-oriented personnel by providing a competitive salary and benefit structure for City employees; specifically, the FY2017-18 operating budget included a 2.5% merit based salary increase for exempt employees and a 2.5% movement in the pay plan and continuation of a step plan for non-exempt and public safety employees.  Provide excellent and efficient services to citizens; specifically, our departments continue to provide quality service and programs to the citizens of Euless, serving approximately 142 citizens for every full-time funded position. This is one of the lowest employee per capita ratios of any of our surrounding cities. However, the City continues to streamline several processes to provide more efficient and convenient services to citizens. The City has increased the convenience to citizens by offering 24 hour online services, including citation payments, utility bill payments, animal registration, City maps, and an employment application system. In addition, citizens have online access to sign up for recreation classes, apply for garage sale permits, search the library catalogs, and monitor water consumption. The City also utilizes Access Euless which is designed to provide our residents, businesses, and visitors with a Virtual City Hall, giving them the opportunity to access City Hall 24 hours a day, 7 days a week, 365 days a year from the comfort of their own home. This system is also available for iPhone and Android users.  Maintain a solid financial position which is responsive to the overall economic climate with emphasis on maintaining a stable low tax rate, promotion of a pay-as-you-go strategy, when possible in lieu of debt, and maintenance of established reserve levels; specifically, budget cuts were enacted swiftly in response to decreased sales tax collections to ensure an overall balanced budget. The City maintained Aa2 ratings from Moody’s Investor’s Services and AA rating from Standard and Poor’s which cited historically strong financial performance, conservative budgeting practices and solid reserves. The City maintained a low tax rate of 46.25¢ per $100 of assessed value. The Police Department continued to receive overtime grants for DWI (Driving While Intoxicated) and traffic enforcement programs and partnered with Lowe’s to install a training simulator that was obtained with grant funding. The Library was awarded a grant to fund a mobile STEM (Science, Technology, Engineering and Math) Library to be shared with the cities of Hurst, Bedford, and HEB ISD (Hurst Euless Bedford Independent School District), which was launched in iii  the spring of 2018. The City also took the lead on working with the Homeland Security Grant Division for a Mobile Geographical Information System (GIS) Response Unit.  Maintain quality infrastructure improvements by constructing municipal facilities and infrastructure improvements in accordance with the Capital Improvement Plan (CIP); specifically, the City continued the annual street overlay, Americans with Disabilities Act (ADA) improvements, and street light and sidewalk maintenance programs. Additionally, the City completed wastewater line replacements at Cedar Hill Estates and Hollywood Boulevard, Reclaimed Water Line Extension Phase II, the Fixed Base Meter Reading and Water Meter Change Out, a traffic signal at Harwood and Bear Creek Parkway, Texas Star Sport Complex Phase V, the Development / Engineering Building Improvements and Texas Star Golf Course miscellaneous improvements and maintenance building.  Promote the continued investment in the community with new residential and commercial development while focusing on reinvestment of existing properties; specifically, the City continued the apartment inspection program which has resulted in immediately recognizable capital reinvestment in many of the apartment communities throughout the City, thus improving residents’ housing livability, community aesthetics, and preserving property values. During FY2017-18, the City processed 214 new residential housing permits, with an average permit value of over $376,000. There are eight (8) active subdivisions in the City of Euless with 393 platted lots. The RiverWalk! development, which includes approximately 200 acres, is located at the northwest corner of Airport Freeway and State Highway 360 extending north to E. Harwood Road. Lennar Homes is developing five (5) subdivisions within the RiverWalk! mixed use project, including The Dominion at Bear Creek, which is a 174 lot single-family subdivision located south of Midway Drive, between Fuller-Wiser Road and Bear Creek Parkway. The Dominion Phase V includes an additional 67 lots. The Villas at Bear Creek is a 60 lot single-family subdivision at the southeast corner of Bear Creek Parkway and Midway Drive and The Estates at Bear Creek is a 112 lot single- family subdivision. Lennar Homes had three (3) of these subdivisions with 353 platted lots at the beginning of FY 2018. As the FY 2017-18 ended, Lennar had thirty-two lots remaining. Construction of the infrastructure within Founders Parc, was completed in FY2017-18. This development includes 259 new single-family homes, 285 urban lofts, and approximately 57,000 square feet of commercial space and replaces three non-conforming Tier 3 apartment complexes that had fallen into total disrepair. Both a Tax Increment Reinvestment Zone and a Public Improvement District have been created by the City to fund the debt associated with the public improvements needed for the area including roadways, water distribution system, sanitary sewer and storm sewer collections systems, hardscaping, and amenities. During FY2017-18, the City processed 32 new commercial permits with a permit valuation of over $102 million. The commercial development activity is geographically dispersed throughout the community and can be found in multiple sectors, including manufacturing, light assembly, wholesale distribution, commercial contracting, and retail. The 200-acre Glade Parks development, along Highway 121, represents the largest amount of the total square footage under construction. Additions to Glade Parks in FY2017-18 included: Burlington, DXL Men’s Apparel, Dickey’s Barbecue Pit, Hopdoddy, Midici Pizza Company, Outback Steakhouse, Total Wine and More, American Nail Bar, Amazing Lash Studio, Runway Seven, and Maxiam Nail Bar. The LifeStyle Area within Glade Parks is completed and includes 6 buildings that are estimated to bring over 100,000 s.f. of retail/restaurant space, as well as a 35,000 s.f. public plaza area. The City continued its partnership with Tarrant County, local churches, and the cities of Hurst and Bedford to renovate qualifying homes in the community through the Community Powered Revitalization Program. With the help of volunteers, churches, non-profit organizations, and local businesses, 6 Stones completed 13 home renovations in Euless during 2018.  Provide quality leisure opportunities for Euless citizens of all ages; specifically, the City offers an outdoor and indoor aquatics facility at the Euless Family Life Center. The outdoor facility features a leisure pool, slides, aqua play features, shade structures, and a lazy river. The indoor iv  portion features a lap pool, therapy pool, and water slides. The Learn to Swim program has continued to be very popular. The library continues to collaborate with Hurst, Bedford, and HEB ISD on an annual joint summer reading program and provided summer outreach programs and nutritional support for underserved areas. A book locker was installed at City Hall to offer an additional site for item pick up and drop off. The library moved children's classes and services to the Simmons Center during the building remodel, and is taking advantage of adjoining Carr Park to integrate nature themes and activities into classes. The parks and library continue to provide a variety of high-quality free family events such as Movies in the Park, Junior Angler Fishing, Halloween Trunk or Treat, summer camps and a concert series. Euless strives to “enhance the quality of life” for citizens. The initiatives shown symbolize the City’s commitment to enhance the quality of life for residents. As the next fiscal year begins, the budget serves as the blueprint to achieve the goals and meet the mission as set forth by the City Council. BUDGET GUIDANCE The FY2018-19 budget is a culmination of several months of intensive effort involving the City Council, all departments and staff. Beginning in early spring, the City staff began working on a budget that would meet the mission, vision, and objectives set forth by the City Council. In July, a preliminary budget was submitted to the City Council and was available online for citizen review. A final budget was submitted in August and adopted by the City Council in September. This budget document represents the final results from all their hard work. Preparing the budget for FY2018-19 required careful consideration of all revenues and expenditures. As we prepared this budget, the primary concerns were continuing all existing services for our citizens, maintaining appropriate staffing levels, and maintaining reserve levels in accordance with the City’s fiscal policies. Although the City has seen improvements in many revenue sources, the City maintained a conservative approach when forecasting both revenues and expenditures. As the new fiscal year begins, the City’s budget maintains the services and programs that Euless citizens have come to enjoy. The City maintains a strong property tax base, healthy reserves, innovative leadership, strong community partners, and excellent City services. Although retail growth over the last several years has increased the sales tax base, this revenue source is highly volatile and creates budgetary pressure during slower economic periods. The City’s conservative approach to revenue projections is important in maintaining a strong financial position. The City’s future remains optimistic due in large part to the visionary leadership of the Mayor and City Council. The City will continue to provide award-winning programs and excellent services to citizens. As resources allow, service enhancements may also be initiated. With the help of community partners such as citizens, businesses, volunteers, Tarrant County, DFW (Dallas Fort Worth) Airport, the school districts, neighboring cities, and the loyal and dedicated employees of Euless, the City can capitalize on opportunities and continue to build a vibrant community. GOALS AND OBJECTIVES The FY2018-19 budget continues to reflect the City Council’s conservative fiscal policy direction. The major short-term objectives of the budget process each year are to: 1) continue all existing services for citizens; 2) maintain a competitive employee compensation package; 3) preserve appropriate reserve levels; 4) identify cost saving measures; 5) provide funding to implement the City Council’s strategic plans while considering the impact on the City’s tax rate; and 6) provide for appropriate levels of staffing as shown in the following table. v  Multi-Year Full-Time Staffing Levels FY17 FY18 FY18 FY19 Actual Budgeted Estimated Proposed General Fund-FT 271.25 274.25 274.25 274.75 Enterprise-FT 67.75 69.75 69.75 69.25 Special Revenue- FT 45.5 44.5 44.5 44.5 Internal Service- FT 1.5 1.5 1.5 1.5 Total-FT 386 390 390 390 The approved FY2018-19 budget meets the objectives stated above by providing:  Continuation of all current programs and services for citizens,  Funding to continue a step pay plan for all non-exempt and public safety employees, a 2.5% merit based salary increase for exempt employees and a 2.5% movement in the pay plan for non-exempt employees and public safety personnel,  Reserve levels which meet or exceed requirements established in the fiscal policy. Surpluses in excess of the minimum required reserve may be used, when needed, to cash flow capital equipment purchases and capital improvement projects to limit debt issuance, and  An unchanged property tax rate of $0.4625 per $100 of assessed valuation for FY2018-19. This was accomplished by holding departmental expenditures, utilizing a portion of the short-term motor vehicle tax, and limiting the issuance of debt. GENERAL FUND REVENUES The General Fund resources are proposed at $44,633,535, which includes $42,138,677 in revenues and $2,494,858 of budgeted fund balance drawdown. The City’s fiscal policies provide that General Fund reserves should be at least 30 to 60 days of working capital. At no time shall the reserve fall below 8.3% of the General Fund expenditure budget (i.e. 30-day level). The current reserve is maintained at 60 days which equates to approximately 16.4% of next year’s budgeted expenditures excluding capital. In order to minimize debt issuance, the City has chosen to cash flow capital expenditures from excess reserves when available. As shown on page 10, the recommended reserve level for FY2018-19 is $6,921,298. The estimated beginning fund balance is $9,993,741, leaving $3,072,443, to fund the budgeted drawdown mentioned above. Proposed revenue for FY2018-19 assumes overall growth of 2% from the FY2017-18 original budget. Revenues were projected based on economic forecasting and utilization of trending techniques. This methodology has proven to be successful for the City in the past. Funding of the City’s General Fund operations is derived from six (6) major revenue categories which include property taxes, sales taxes, franchise fees, licenses and permits, fines and fees, and intergovernmental transfers. Each of these revenue sources is detailed as follows with a brief description of how internal and external factors affect each revenue amount. General Property Taxes The largest financial consideration that guides the development of the budget for the upcoming year is the projection of property tax revenues. This revenue is based on information from the Certified Tax Roll received July 25th from the Tarrant Appraisal District (TAD). After the roll is received, the tax rate is set by the City Council based on both the debt rate required to pay annual debt service on the City’s general bonded indebtedness and funds needed for maintenance and operations. Property taxes are levied each October 1 on the assessed value as of the prior January 1 for all real, business, and personal property vi  located in the City. Assessed value represents the appraised value less applicable exemptions authorized by the City Council. Appraised values are established by TAD at 100% of estimated market value. Taxes are due October 1 and are delinquent after January 31. Penalty and interest are charged at 7% on delinquent taxes beginning February 1 and increase incrementally each month to 18% on July 1. After July 1, additional interest accrues at a rate of 1% each month. These penalties and interest do not apply to taxpayers who choose to pay their tax bill quarterly. Certified property valuations for tax year 2018, including minimum value of property under protest, provided to the City by TAD totaled $4,415,713,775, an increase of $414,418,435 from the 2017 tax roll of $4,001,295,340. The certified roll reflects all taxable property in the City as of January 1, 2018. The current certified values show an increase of 10.3% over the prior year. Property values currently total $4.41 billion as shown by the graph. The City’s adopted tax rate is $0.4625 per $100 of assessed valuation. Euless’ tax rate has declined steadily from 61.6¢ in 1995 to an adopted rate of 46.25¢ for FY2018-19, which is unchanged from FY2017-18. The City’s willingness to lower the tax rate in strong economic times and maintain the tax rate during recessed economic times has proven very beneficial to the citizens of Euless. In addition to the tax relief provided during those times, the City grants exemptions for homesteads allowed by state law and provides senior and disabled citizen exemptions. In 2004, the City established an irrevocable tax freeze on the residential homesteads of disabled persons and residential homesteads of persons age 65 years or older. General property tax revenues are anticipated to generate $15,250,605 (including delinquent taxes and related penalties but excluding Tax Increment Reinvestment Zone (TIRZ) revenues) which accounts for 36% of all General Fund revenue. Sales Tax Revenues Revenue collected from sales taxes is the second largest component of the General Fund. Sales taxes in the General Fund account for 32% of total revenues. Sales tax receipts are the result of a tax levy on the sale of goods and services within the City as authorized by the State of Texas. The sales tax rate for the City of Euless is 8.25¢. Of this amount, the State receives 6.25¢ and the City receives 2¢. Of the City’s portion, the General Fund receives 1.25¢ which includes a 1¢ general sales tax and a ¼¢ for property tax relief. In addition, in 1993 the citizens of Euless voted to levy an additional ½¢ sales tax for the Euless Development Corporation (EDC) and in 1995 an additional ¼¢ sales tax for the Crime Control and Prevention District (CCPD) which are reported as blended component units of the City in Special Revenue Funds. The City’s economic development department continues to seek development opportunities to $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 1995 2000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Property Tax Rate History Maintenance & Operations Interest & Sinking $0.97 $1.40 $2.50 $2.66 $2.76 $2.86 $3.05 $3.15 $3.55 $4.00 $4.41 0.75 1.25 1.75 2.25 2.75 3.25 3.75 4.25 4.75 1995 2000 2011 2012 2013 2014 2015 2016 2017 2018 2019Value (billions)Fiscal  Year Taxable Assessed Valuation vii  further diversify the sales tax base. It is the City’s policy to use a conservative approach in forecasting this revenue source due to volatility and high dependence on local economic conditions. The 1¢ General Fund sales tax is expected to generate $10,487,214 in FY2018-19 and the ¼¢ additional sales tax for property tax relief is anticipated to generate $2,706,739. As the total sales tax collections chart indicates, this revenue source has grown significantly over the last decade, which has increased the City’s risk and vulnerability to adverse changes in economic conditions. For FY2017-18, total sales tax revenues decreased slightly due to various business’ operating changes. Most of the decline was offset by significant development. For FY2018-19 are projected to return to FY2016-17 levels. This increase is based on historical trends and continued economic growth. Projecting sales tax revenues in future years continues to be challenging given the uncertain impact of development efforts, legislative initiatives, and economic conditions. Franchise Fees Franchise Taxes (gross receipt taxes) are charged to utility companies for the privilege of using right-of- way within the City. The City Council authorized a 5% charge on gas, garbage, recycling, water and wastewater, and cable receipts. Electric utilities pay a fee based on the kilowatt hours provided to customers within the City of Euless. Telecommunications companies remit payments based on a per line access fee. Total gross receipt/franchise taxes are estimated at $4,549,168 which represents 11% of the General Fund revenues. Licenses and Permit Fees Licenses and permit fees represent 2% of General Fund revenues and include charges by the City for certain types of operator licenses and permits for construction and other items regulated by City ordinance. Building activity remained strong over the last four years. FY2018-19 is expected to decrease slightly from these highs. Fines and Fees Fines and fees represent 10% of the General Fund revenues and include revenue generated from municipal court cases, ambulance fees, jail revenues, and library fees. Fines and fees are projected to remain at a lower level than several year ago due to decreases mainly in municipal court and ambulance revenues. Intergovernmental Transfers/Misc. Intergovernmental transfers represent 7% of General Fund revenues which includes general and administrative transfers from the Water and Wastewater Fund, the Drainage Fund, and the Short-term Motor Vehicle Fund. Other miscellaneous revenues represent 2% of General Fund revenue. GENERAL FUND EXPENDITURES General Fund operating expenditures are projected at $42,104,564, which represents an increase of 2% from the FY2017-18 budget excluding capital programs. This increase is primarily attributed to the employees’ pay plan and associated benefits, and the inclusion of funding for street overlay and improvements and the City’s computer replacement program that was included as capital expenses in $0 $4 $8 $12 $16 $20 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. 2019 Prop.(in millions)Total Sales Tax Collections General EDC CCPD viii  FY2017-18. The baseline budget has also increased slightly for equipment replacement transfers. The adopted budget includes the use of excess reserves in the amount of $2,494,858 to cash flow capital programs. Capital programs include funding for community revitalization, hardware and software upgrades, various facility improvements, equipment for the Euless Family Life Center, infrastructure improvements, and additional emergency contingency reserves. In addition, the FY2018-19 budget includes funding for continued technological advancements in the City’s municipal court operations. A breakdown of General Fund Revenues and Expenditures is graphed as follows: In accordance with the City’s fiscal policy, all current expenditures will be paid from current revenues. The budgeted General Fund reserve, as provided for in the fiscal policies, is equal to 60 days of working capital which equals 16.4% of budgeted General Fund expenditures excluding capital. The fund balance summary, provided on page 10, verifies that the City has complied with this policy. Only excess reserves have been used to fund capital needs. A detail of capital expenses can be found on page 32-34. WATER & WASTEWATER FUND REVENUES Resources available in the Water and Wastewater fund totaled $26,271,131, which includes $25,797,210 in revenues and $473,921 of budgeted drawdown from excess reserves. The water and wastewater revenue projection is based on average historical consumption, with proposed increases in both water and wastewater rates. Budgeted water revenues are calculated utilizing a base rate of $12.50 per month for residential customers and a variable commercial customer base rate based on meter size. In an effort to promote continued water conservation, the City’s water rates are structured whereby customers pay a graduated volume rate based on varying levels of monthly water consumption. The FY2018-19 budget includes an increase in the rate for potable water consumption of 30¢ per thousand gallons on all tiers. This increase is based upon increased costs of production including cost for water purchased from Trinity River Authority (TRA). Total revenue projections are reduced by a rebate to single family residential customers of 30¢ per thousand gallons used up to a maximum of 15,000 gallons per month. The City’s rate stabilization fund will provide the resources to cover the cost of the rebates for FY2018-19. Budgeted wastewater revenue is calculated on a base rate of $10.75 per month for all customer classes, and a volume charge of $4.27 per 1,000 gallons of wastewater treatment up to a maximum of 12,000 gallons for residential customers. This is an increase of 29¢ per thousand gallons which is primarily related to increased cost of collection and treatment including cost increases from TRA for wastewater treatment. No maximum applies to commercial customers for wastewater treatment. Sales & Uses Taxes 32% Licenses/ Permits 2% Franchise Fees 11%Fines & Fees 10%Interest 0% Transfers 7% Miscellaneous 2% Property Taxes 36% Revenues City Admin 2% Police 32% Fire 23% Development 2% Non-Depart 12% Admin Srvcs 7% Finance 4% Public Works 6% PACS 6%Capital 6% Expenditures General Fund ix  The City’s fiscal policy requires the Water and Wastewater Fund to maintain a minimum of 45 to 75 days working capital. The City of Euless currently maintains a 75 day reserve. As mentioned, the City has chosen to cash flow capital expenses from excess reserve levels when available. As shown on page 13, the recommended reserve level for the Water and Wastewater Fund is $5,294,170. The estimated beginning working capital for FY2018-19 totals $6,468,595, leaving $1,174,425 to fund the budgeted drawdown mentioned below for capital. In addition to water and wastewater charges, this fund derives its revenues from sanitation service, recycling, reconnection fees, inspection fees, transfer fees, late payment penalties, and interest earnings. Actual revenue in this enterprise fund varies seasonally and can fluctuate substantially based on weather conditions. Revenues and Expenditures of the Water and Wastewater Fund are graphed below: WATER & WASTEWATER FUND EXPENDITURES Water and Wastewater Fund operating expenditures are projected at $25,764,960. This is an increase of 5% from the FY2017-18 original budget excluding capital programs. The majority of this increase is directly related to the cost of water and wastewater treatment by TRA and the employees’ pay plan and associated benefits. This budget meets the criteria set forth in the City’s fiscal policies with reserves calculated at the minimum requirement of 75 days of working capital. Budgeted expenditures in the Water and Wastewater fund provide for the production and distribution of water, transmission and treatment of wastewater, recycling, and utility billing and collections. The FY2018- 19 budget also includes a transfer from the operating fund to the capital projects fund for capital improvements detailed in the Water and Wastewater Capital Projects section below. The adopted budget includes the use of excess reserves in the amount of $473,921 for previously approved capital projects that have not yet been completed, an enclosed cab backhoe and infrastructure maintenance. WATER AND WASTEWATER CAPITAL PROJECTS The Water and Wastewater Capital Projects Fund includes wastewater line replacement at Cedar Hill Estates North and Oakwood Terrace Addition Phase III, water line replacement at Kynette Drive and well Sanitation 1% Recycling 2%Other 2% Water 55% Reclaimed Water 2% Penalties 1% Wastewater 37% Revenues Finance 2% Public Works 2% Water Production 32% Water Distribution 4% Wastewater Treatment 19% GIS 2% Capital 2% Non-Depart. 37% Expenditures Water & Wastewater x  replacement construction for the Fuller and Far North Main wells. This budget also includes continued funding for miscellaneous water and wastewater projects, well repairs, and ongoing valve replacements. Additional information is provided in the Capital Improvement Program section of the budget on pages 136-151, as well as in the Capital Improvement Program issued under separate cover. WATER AND WASTEWATER RESERVE REQUIREMENTS Water and Wastewater revenue bond covenants require the City to have on-hand reserve amounts sufficient to cover the cost of the average annual debt service on outstanding bonds. This reserve is in addition to the working capital required by the City’s fiscal policies and is maintained in a separate fund. For the FY2018-19 budget, the required reserve is $669,065. INTERNAL SERVICE FUNDS Health Insurance/Benefits Fund The City provides employee medical insurance coverage on a self-insured basis. The employee pays a portion of the insurance cost. The excess coverage insurance policy for FY2018-19 requires a specific deductible of $125,000 per person plus an aggregated specific deductible of $110,000 and covers aggregate claims in excess of $6,661,017. The excess policy also allows higher specific deductibles for certain individuals as deemed necessary. Vehicle/Equipment Replacement Fund The City maintains a Vehicle/Equipment Replacement Fund to accumulate resources for the replacement of existing equipment. In an effort to assist in fuel conservation, the proposed replacement schedule includes recommendations for alternative fuel and fuel efficient vehicles, where feasible. Funding is provided annually by the user departments in order to accumulate funds to cover the expected replacement costs of the equipment. Any shortfall is funded from the Car Rental Fund. SPECIAL REVENUE FUNDS Hotel/Motel Fund The Hotel/Motel Fund was established to account for a 7% hotel/motel occupancy tax allowed by the State of Texas. This tax is levied on the rental rate for a hotel/motel room. Funds generated by this occupancy tax must be expended for items that qualify in accordance with state law including promotion of tourism, programs which enhance the arts, historical preservation programs, and convention facilities. This revenue source provides funding for the Texas Star Conference Centre, historical preservation and Arbor Daze. The Hotel/Motel tax receipts are projected to increase in FY2018-19 from FY2017-18 estimated revenues. Most of this increase is due to a new hotel opening at Glade Parks. Capital purchases for Phase II of the Wayfinding Sign program were also included. Half-Cent Sales Tax Fund Euless citizens approved an additional ½¢ sales tax in 1993 that is restricted for parks, library, and economic development activities. For FY2017-18, total sales tax revenues decreased slightly due to various business’ operating changes. Most of the decline was offset by significant development. For FY2018-19 revenues are projected to return to FY2016-17 levels plus some added development. This increase is based on historical trends and continued economic growth. Expenses in this fund include an increase to fund the employees’ pay plan and associated benefits, annual hardware and software replacements, and debt service requirements for the new Carr Park issuance. Recommended capital programs, as detailed on page 33, includes various equipment and software, parks improvements, library remodel construction funds, and funding for Texas Star Sports Complex Phase VIII Design. This budget maintains operating reserves of 60 days of working capital, which is consistent with other governmental funds. xi  Police Drug Fund This fund was established to account for the proceeds from sale of assets seized in connection with drug arrests. These revenues are used exclusively for Police Department expenditures and have allowed the City to upgrade police radio systems, provide protection gear for officers, purchase additional police vehicles, purchase a mobile sky watch trailer, purchase a security system for the police facility, and develop the Commercial Vehicle Enforcement program. Crime Control and Prevention District Fund The Crime Control and Prevention District Fund is used to account for an additional ¼¢ voter-approved sales tax. State law restricts the use of these funds to crime control and prevention activities. This revenue source provides funding for several public safety positions. The FY2018-19 budget also includes additional funding for public safety equipment, software upgrades, crime scene cameras, a new command console, a drug detection system and a drone program. Short-Term Motor Vehicle (Car Rental) Tax Fund In November 1999, Euless citizens approved a 5% tax to be collected on all short-term motor vehicle rentals within the City limits. In the spring of 2000, the Dallas-Fort Worth International (DFW) airport opened a consolidated car rental facility within Euless City limits. These funds are divided equally among Euless, Dallas, and Fort Worth per the requirements of a revenue sharing agreement established by the parties in FY1997-98. Annual transfers for FY2018-19 include transfers to the General Fund and Equipment Replacement Fund as described previously. A transfer to the CIP Fund is included to cash flow projects identified in the CIP plan including the library remodel and redevelopment. Staff has maintained the $2,000,000 reserve level approved by the City Council. OTHER ENTERPRISE FUNDS Recreation Class Fund The Recreation Class Fund provides outstanding community activities for citizens. The activities financed from this fund range from youth programs to senior citizen activities, and provide funding for many activities at the Euless Family Life Center. Capital requests included replacement equipment, front desk remodel, and the continuation of the Playbook publication. Drainage Utility Fund This fund was established to account for the acquisition, operation, and maintenance of a municipal drainage utility. User fees collected on a monthly basis from residential and commercial customers support this fund. The FY2018-19 residential monthly rate remains at $2.75 and remains competitive with others communities in the area. Monthly commercial drainage fees are based upon lot size. This revenue source is used to fund eight public works positions, drainage capital improvement projects, and maintenance of the drainage system. Texas Star Golf Course The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community. This facility is well-known for world class golf that is secluded in the midst of the Dallas/Fort Worth Metroplex. This challenging course has been recognized as a premier municipal facility by leading golf publications, including Golf Digest and Golfweek. During FY2017-18 Texas Star Golf Course received a 4 ½ star rating from Golf Digest in places to play in Texas. Golfweek ranked Texas Star in the top 20 public course in Texas. Dallas Morning News and Avid Golfer list Texas Star as one of the Top Ranked Public Golf Courses in the Metroplex. The PGA (Professional Golfers’ Association) lists Texas Star as number 3 of the best golf courses in Texas. Raven’s Grille and the Conference Centre continue to receive rave reviews. The Conference Centre has 7,000 square feet of divisible space and hosts business conferences, weddings, xii  concerts, and other events. The FY2018-19 budget includes proposed revenues of $4,636,280 and proposed operating expenses of $4,620,972. Texas Star Sports Complex Softball World and the Parks at Texas Star provide a valuable addition to the City's recreational program and facilities. These facilities are deemed an amateur athlete’s dream. They provide the perfect location for tournaments and special events. Synthetic turf and parking enhancements during FY2016-17 at the Parks at Texas Star have taken amateur fields in the area to a higher level and allow for quicker play time following rain events. The Texas Star Sports Complex registered over 800 league teams and over 1,200 tournament teams between the two facilities in FY2017-18. The FY2018-19 budget for this combined complex includes proposed revenues of $1,281,100 and proposed expenses including capital of $1,254,498. Capital expenses include fencing and replacement netting and turf. LONG-TERM FOCUS Multi-Year Financial Plan To this point, the budget message has focused on short-term financial policies and goals that guide the development of the budget for the upcoming year. Long-term financial goals and issues are examined each year through the preparation of the Multi-Year Financial Plan, which covers the next five years. Decisions for the upcoming year are not made without considering the long-term financial impact. The plan is an essential component of each year’s budget process. Expenditures are projected at moderate growth and funding strategies are developed to provide for this growth. Potential revenue sources, cost saving strategies, and debt issuance are considered before property tax rate changes or utility rate changes are factored into the plan to balance the projected budgets. The Multi-Year Financial Plan is located in Appendix D starting on page 216. Capital Improvement Plan Another important long-term planning document is the Capital Improvements Program (CIP). The City has created and produced, under separate cover, a CIP to address many of its long-term goals which include: maintaining and constructing infrastructure and municipal facilities in accordance with the CIP Plan and Facilities Master Plan while maintaining consistent debt levels; completing park projects that have been identified by the Parks Master Plan; and promoting community revitalization. The program includes a framework for assessing the fiscal impact of identified projects. The capital program is reviewed annually to reflect changing priorities and funding availability. The CIP Plan meets the City Council’s goal of continuing current programs and services for citizens by upgrading amenities and reconstructing infrastructure. Many of the projects will enhance programs and service levels for citizens. The program identifies potential projects which are described in detail and prioritized. Projects scheduled for consideration in the FY2018-19 budget are matched with funding sources. Projects scheduled for consideration within the next five years are included in the preparation of the multi-year plan with potential funding sources identified and operational impacts included in the appropriate funds. The multi-year capital plan is a useful tool that allows the City to evaluate the operating impact of future capital projects. Projects funded through the issuance of debt impact operating budgets and are planned accordingly. The FY2018-19 budget includes a variety of capital improvement projects, as detailed in the capital section of this document on pages 136-151 and in the CIP under separate cover. Several project for FY2018-19 will be funded through operating transfers or excess reserves, however additional debt issuance is planned for the FY2019 Street Improvements, Well Replacement Construction, and Euless Development Corporation Carr Park Improvements. xiii  The FY2018-19 CIP budget includes total resources available (including intergovernmental transfers) of $45,722,211 and capital expenditures (including on-going funded projects) of $32,793,897. The budget cycle of the capital project funds is different from the budget cycle of operating funds. The most significant difference is the method of financing. Capital projects are often financed through the use of nonrecurring sources, specifically, bond proceeds, and the use of excess reserves. Therefore, the money is received in one fiscal year and the payment of the project expenses often extends over several fiscal years. As in the past, excess operational revenues will have a priority to fund capital projects in order to reduce interest expense related to bond issues. Additional funding for future projects will include the consideration of grant availability, self-sufficiency of revenue type bonds, and debt capacity. The FY2018-19 budget further addresses the goal of maintaining infrastructure by allocating funds to continue the annual street maintenance programs, park improvements, water and wastewater system rehabilitation, water well repairs, and valve replacement. GENERAL DISCUSSION OF LONG-TERM DEBT POLICIES/OBJECTIVES The City Council and citizens of Euless have determined that debt issuance is a viable method of financing major capital projects. Per the City’s fiscal policies, long-term debt will not be used for operating purposes and the life of the debt instruments will not exceed the useful life of the projects financed. The City has also specified that bonds with an average life of 20 years or less will be issued to reduce net interest cost and maintain future flexibility by paying off debt earlier. The majority of the City’s long-term debt has been used to finance infrastructure needs and traditional government facilities such as streets, public safety facilities, libraries, and park development. The following discussion highlights the City’s legal restrictions and requirements relating to debt issuance, types of debt issuance and the impact of the CIP on City operations and debt service amounts. Authorization to Issue Debt/Legal Debt Margin As set forth in the Constitution of the State of Texas, cities with a population of 5,000 or more inhabitants may, by majority vote of the qualified voters adopt or amend charters to become “home rule cities.” Euless, being a home rule City, has adopted a Charter. The Charter provides in Article VIII, Section 4 that: “It shall be the duty of the Council to levy an annual tax sufficient to pay the interest on and provide the necessary sinking fund required by law on all outstanding general obligation bonds of the City.” In accordance with the State of Texas Constitution, the City of Euless has not exceeded the legal debt limit as calculated: Taxable Assessed Valuation $4,415,713,775 Constitutional Limit of Debt 2.5% of assessed valuation Maximum Constitutional Revenue Available $100,392,844 Constitutional Maximum Tax Rate $2.50 per $100 assessed valuation Adopted Tax Rate $0.4625 per $100 of valuation Available Unused Constitutional Maximum Tax Rate $2.0375 xiv  Types of Debt Outstanding The City has existing long-term debt for the acquisition and construction of major capital facilities, infrastructure, and equipment. The City has identified four projects in the CIP Plan that may require debt issuance. We anticipate the issuance of Certificates of Obligation for 2019 Street Improvements which when combined with a reduction of outstanding debt service obligations is expected to have no overall impact on the interest and sinking portion of the tax rate. We are seeking a low interest loan and loan forgiveness with the Texas Water Development Board to replace water wells at Fuller and Far North locations. Debt issued for this project will be repaid by the utility system. We also anticipate the issuance of Euless Development Corporation Sales Tax Revenue Bonds for the Carr Park Improvements and Texas Star Sports Complex Phase VII construction. A brief explanation of various debt instruments is provided below. Additional information on the debt is included in pages 152-185 of this book. General Obligation Bonds – are issued pursuant to voter authorization for infrastructure and facility projects. General Obligation Refunding Bonds – are issued to refund existing General Obligation Bonds and Certificates of Obligations in order to lower the overall debt service requirements of the City. These bonds do not require voter authorization. Certificates of Obligation – are similar to General Obligation bonded debt in their intended usage but do not require voter authorization and cannot be used for refunding existing debt. Water and Wastewater Revenue Bonds – are issued to provide funds for certain improvements to the water and wastewater system as well as to refund prior water and wastewater debt issues. These bonds are reported in the Water and Wastewater Fund and are repaid from revenues of this enterprise fund. Sales Tax Revenue Bonds – are used to finance library, park, and economic development projects. Sales tax revenue bonds are repaid from the half-cent sales tax revenues collected by the Euless Development Corporation. Tax Anticipation Notes – are issued to finance shorter-term debt such as short economic life assets. Impact of Capital Improvement Program The City recognizes that many capital projects will have an impact on future operating budgets. Although the reconstruction of streets and replacement of water and wastewater lines impacts operations by reducing maintenance costs, these funds are redirected for additional maintenance throughout the City. Therefore, the net effect to operations and maintenance cost is expected to be minimal. However, there are many positive impacts to citizens including improved driving conditions and improved water and wastewater flow due to line replacements. New and expanded facilities will have some impact on operations, specifically, in additional utility, maintenance and janitorial costs. These costs are incorporated in the operational budgets and the multi-year financial plan. Further detail on the operational impact is provided in the CIP document. ECONOMIC CONDITION The City of Euless is located in Tarrant County in the heart of the Dallas/Fort Worth (DFW) Metroplex and adjacent to the DFW International Airport. Thus, the economic vitality of the region significantly impacts the economic health of Euless. Airports Council International ranks DFW Airport as the fourth largest airport in terms of operations and twelfth largest in terms of passengers in the world, handling over 65 million passengers a year. DFW xv  Airport reports service is provided to 244 destinations. It is reported by the airport that economic activity across the North Texas area attributable to DFW Airport totals $37 billion in economic output, 228,000 in full-time jobs, and $12.5 billion in payroll. According to the North Texas Commission, DFW is the 4 largest region in the US and has experienced tremendous growth during the past decade. With its highly-diversified economy, DFW has a population of over 7.4 million, a Gross Metro Product of $511.6 billion, a labor force of over 3.9 million, a 2.8% job growth rate, 22 Fortune 500 Firms, and college enrollment of over 333,000. Such an economic environment has helped the region weather economic downturns in key sectors better than other regions in the nation. The Alliance Texas development in North Fort Worth is a 26,000-acre master-planned, mixed-use community which is home to more than 480 companies, 48,000+ employees, and is anchored by the inland port known as the Alliance Global Logistics Hub. This area offers a variety of commercial real estate options, industrial space, office space, and retail facilities and had a $4.73 billion annual impact in North Texas in 2017 (www.alliancetexas.com, Alliance Texas Facts). Taxable value for all residential and commercial property in the City of Euless is estimated at approximately $4.4 billion for tax year 2018, which is a 10.3% increase from the prior year, due to increases in both residential and commercial real estate property values. Sales tax collections decreased during FY2017- 18. Euless continues to look for additional revenue opportunities in order to minimize the tax burden to citizens and strives to cut costs without impacting service. The City also receives a significant amount of revenue from a consolidated rental car facility located at DFW Airport. The City Council has chosen to use this funding source to build reserves and to cash flow capital projects in lieu of debt issuance. This has allowed the City to refrain from becoming overly dependent on a volatile resource while providing for needed improvements for citizens. The City of Euless has approximately 552.1 acres of undeveloped land outside of DFW Airport. Much of the Glade Parks mixed-use development consisting of major retail, restaurants, neighborhood pedestrian- oriented retail uses and residential neighborhoods is open with several other structures currently under construction. The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Park in Arlington, within minutes of Euless, continue to attract additional tourism to the City by hosting major concerts and sporting events, including Super Bowl XLV in 2011, World Series in 2010 and 2011, NCAA Regional Basketball Tournament in 2013, the NCAA Final Four Basketball Tournament in 2014, the first College Playoff National Championship game in 2015, and the Cotton Bowls since 2010. During the past few years, Euless has realized new commercial, industrial, residential, and multi-family developments. The City of Euless is focused on bringing quality development to the area, seeking redevelopment opportunities, and promoting business retention. IN SUMMARY Management and staff are very pleased with the direction and vision of Euless. Staff has worked hard to provide successful government programs and services to the community in an effective and efficient manner. These programs are intended to provide the community with an improved quality of life. In looking to the future, the goal is to continue to provide high quality government services and improve the quality of life for Euless residents with available resources. ABOUT THIS BOOK...Understanding how to use this book most efficiently is the key to absorbing the volume of data needed to analyze information and make informed decisions. Supplemental information is provided for informational purposes only and is not formally approved as part of the budget process. xvi  Supplemental information is reported at the department or fund level, charts and graphs have been used when possible to provide information at a glance and comparison data has been limited to prior year actual budget, estimated and proposed. A copy of this document will be in the library for citizen review and is available on the City’s website at www.eulesstx.gov/finance. The City’s CIP Document is printed separately. This document includes details of funded, unfunded, and completed capital projects. Descriptions, cost estimates, and priority status is also provided for each project. The Mayor and Council have been very supportive during the budget process, and on behalf of all employees I want to thank you for your time and involvement in developing a budget that will allow us to pursue the City’s goals and objectives. As always, the City of Euless staff welcomes and appreciates your comments. Respectfully submitted, Loretta Getchell City Manager COUNCIL ADOPTED 2018-19 ANNUAL CITY OF EULESS BUDGET COMBINED SUMMARY OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BY CATEGORY Includes All Funds Subject to Appropriation with Comparison to Prior Years 9,993,741$ 10,570,222$ 1,755,981$ 7,757,304$ 8,422,185$ 8,529,520$ BUDGETED REVENUES Property Taxes 15,185,605$ 1,354,294$ 3,604,556$ -$ -$ -$ Gross Receipts Tax 4,549,168$ 111,000$ -$-$ -$ -$ General Sales Tax 13,193,953$ 8,425,252$ -$-$ -$ -$ Selective Sales Tax 171,075$ 15,625,455$ -$-$ -$ -$ Fines/Fees/Penalties 2,583,980$ 1,205,529$ 15,000$ 237,500$ -$ -$ Licenses & Permits 574,000$ -$ -$-$ -$ -$ Interest Income 170,000$ 125,485$ 83,400$ 83,000$ 95,500$ 44,450$ Intergovernmental Revenue 420,000$ 115,662$ -$-$ 51,000$ -$ Charges for Service 1,693,615$ -$ -$32,190,635$ -$ -$ Miscellaneous/Rental Income 614,244$ 73,580$ 495,000$ 79,521$ 687,459$ 236,000$ Insurance/Risk/Other Sources 4,000$ -$ -$-$ 7,417,872$ -$ Revenues before Transfers 39,159,640$ 27,036,257$ 4,197,956$ 32,590,656$ 8,251,831$ 280,450$ Transfers from other funds 2,979,037$ 35,456$ 4,799,928$ 2,043,863$ 2,396,842$ 1,018,880$ TOTAL REVENUES 42,138,677$ 27,071,713$ 8,997,884$ 34,634,519$ 10,648,673$ 1,299,330$ AVAILABLE RESOURCES 52,132,418$ 37,641,935$ 10,753,865$ 42,391,823$ 19,070,858$ 9,828,850$ BUDGETED EXPENDITURES Personal Services 31,839,327$ 5,276,941$ -$8,937,456$ 867,661$ -$ Professional/Technical Services 1,429,795$ 264,211$ -$2,614,582$ 296,220$ -$ Contractual Services 675,944$ 43,021$ -$417,730$ -$ -$ Utilities 1,035,823$ 288,000$ -$13,543,420$ -$ -$ Maintenance 678,893$ 55,500$ -$531,631$ 13,500$ -$ Other Services/Contingencies 150,500$ 217,000$ -$88,500$ 128,915$ -$ Insurance 5,300$ -$ -$72,000$ 7,215,442$ -$ General & Administrative 459,356$ 154,925$ -$244,980$ 2,000$ -$ Rebates/Incentives 2,069,609$ 10,450,922$ -$-$ -$ -$ Supplies 1,039,033$ 294,580$ -$1,876,095$ 10,375$ -$ Capital & Infrastructure Improvements -$ -$ -$-$ -$ -$ Capital Purchases (Equipment)3,206,898$ 2,090,290$ -$653,427$ 1,742,000$ -$ Debt Service/Bank Charges 102,576$ 278,037$ 9,067,231$ 6,000$ -$ -$ Expenditures before Transfers 42,693,054$ 19,413,427$ 9,067,231$ 28,985,821$ 10,276,113$ -$ Transfers to other funds 1,906,368$ 9,475,710$ -$6,247,654$ -$ 1,043,131$ TOTAL EXPENDITURES 44,599,422$ 28,889,137$ 9,067,231$ 35,233,475$ 10,276,113$ 1,043,131$ ENDING BALANCE DESIGNATED 66,567$ 816,950$ 334,079$ -$ 200,000$ 4,768,826$ UNDESIGNATED 7,466,429$ 7,935,848$ 1,352,555$ 7,158,348$ 8,594,745$ 4,016,893$ PROJECTED ENDING FUND BALANCE 7,532,996$ 8,752,798$ 1,686,634$ 7,158,348$ 8,794,745$ 8,785,719$ RECOMMENDED RESERVES PER FISCAL POLICY 6,921,298$ 3,322,312$ 344,074$ 5,599,078$ 7,609,095$ 1,193,200$ NOTE: Some accounts may have been recategorized to provide consistent presentation across funds. RESERVE FUNDS BEGINNING FUND BALANCE GENERAL FUND SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS ENTERPRISE FUNDS INTERNAL SERVICE FUNDS xvii COUNCIL ADOPTED 2018-19 ANNUAL CITY OF EULESS BUDGET COMBINED SUMMARY OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BY CATEGORY Includes All Funds Subject to Appropriation with Comparison to Prior Years BUDGETED REVENUES Property Taxes Gross Receipts Tax General Sales Tax Selective Sales Tax Fines/Fees/Penalties Licenses & Permits Interest Income Intergovernmental Revenue Charges for Service Miscellaneous/Rental Income Insurance/Risk/Other Sources Revenues before Transfers Transfers from other funds TOTAL REVENUES AVAILABLE RESOURCES BUDGETED EXPENDITURES Personal Services Professional/Technical Services Contractual Services Utilities Maintenance Other Services/Contingencies Insurance General & Administrative Rebates/Incentives Supplies Capital & Infrastructure Improvements Capital Purchases (Equipment) Debt Service/Bank Charges Expenditures before Transfers Transfers to other funds TOTAL EXPENDITURES ENDING BALANCE DESIGNATED UNDESIGNATED PROJECTED ENDING FUND BALANCE RECOMMENDED RESERVES PER FISCAL POLICY BEGINNING FUND BALANCE FY2017-18 FY2017-18 FY2016-17 8,950,730$ 55,979,683$ 66,237,606$ 66,237,606$ 72,390,460$ -$ 20,144,455$ 18,654,674$ 18,604,455$ 16,587,266$ -$ 4,660,168$ 4,633,276$ 4,581,182$ 4,455,137$ -$ 21,619,205$ 22,134,566$ 20,379,350$ 21,252,491$ -$ 15,796,530$ 14,658,302$ 15,570,574$ 15,328,921$ -$ 4,042,009$ 4,061,383$ 3,886,260$ 3,622,533$ -$ 574,000$ 749,000$ 1,287,195$ 1,895,460$ 44,359$646,194$ 346,770$ 989,926$ 610,217$ 655,159$ 1,241,821$ 815,758$ 4,130,429$ 1,975,590$ 7,678$33,891,928$ 32,769,528$ 33,409,244$ 32,154,438$ 58,583$2,244,387$ 2,587,267$ 4,166,525$ 3,199,997$ 24,176,299$ 31,598,171$ 22,239,835$ 18,952,682$ 7,428,051$ 24,942,078$ 136,458,868$ 123,650,359$ 125,957,822$ 108,510,101$ 11,829,403$ 25,103,409$ 18,939,048$ 21,855,432$ 18,286,975$ 36,771,481$ 161,562,277$ 142,589,407$ 147,813,254$ 126,797,076$ 45,722,211$ 217,541,960$ 208,827,013$ 214,050,860$ 199,187,536$ -$ 46,921,385$ 46,302,870$ 45,595,984$ 42,292,005$ 2,342,166$ 6,946,974$ 5,458,497$ 6,033,309$ 4,305,066$ 25,000$1,161,695$ 1,092,094$ 1,174,165$ 990,246$ 100,000$ 14,967,243$ 14,227,473$ 14,119,616$ 13,380,053$ -$ 1,279,524$ 1,201,088$ 1,124,890$ 1,092,219$ 92,493$677,408$ 1,443,669$ 1,858,746$ 96,220$ -$ 7,292,742$ 7,104,859$ 7,083,859$ 7,125,119$ -$ 861,261$ 828,002$ 806,115$ 606,851$ 25,000$12,545,531$ 14,231,301$ 21,050,045$ 18,919,742$ -$ 3,220,083$ 3,437,915$ 3,358,448$ 3,187,959$ 29,549,800$ 29,549,800$ 17,680,066$ 20,840,447$ 10,093,400$ -$ 7,692,615$ 8,450,546$ 9,505,510$ 6,673,655$ 284,020$ 9,737,864$ 8,201,729$ 8,273,791$ 6,911,742$ 32,418,479$ 142,854,125$ 129,660,109$ 140,824,925$ 115,674,277$ 375,418$ 19,048,281$ 17,903,148$ 17,246,253$ 17,275,653$ 32,793,897$ 161,902,406$ 147,563,257$ 158,071,178$ 132,949,930$ -$ 6,186,422$ 6,260,290$ 6,260,290$ 5,254,771$ 12,928,314$ 49,453,132$ 42,243,312$ 49,719,392$ 60,982,835$ 12,928,314$ 55,639,554$ 61,263,756$ 55,979,682$ 66,237,606$ -$ 24,989,057$ 23,877,543$ 23,877,543$ 22,392,479$ NOTE: Some accounts may have been recategorized to provide consistent presentation across funds. CAPITAL IMPROVEMENT FUNDS ACTUAL BUDGET ESTIMATED FY2018-19 ALL FUND SUMMARY xviii Budget 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400  Metro 817/267-4403  Fax 817/685-1416 www.eulesstx.gov July 27, 2018 Honorable Mayor Linda Martin Honorable City Councilmembers: Tim Stinneford, Place One, Mayor Pro Tem Jeremy Tompkins, Place Two Eddie Price, Place Three Linda Eilenfeldt, Place Four Harry Zimmer, Place Five Salman Bhojani, Place Six INTRODUCTION As required by the City of Euless' Home Rule Charter, the operating budget for the fiscal year beginning October 1, 2018 and ending September 30, 2019 is submitted for your review. Although this document contains a large volume of data, the majority of the budget discussion will focus on the Proposed Budget section and the Capital tab (tab 5 of the Supplementary Information section). We encourage you to carefully review the Capital tab, which details the recommended programs for FY2018-19. We would like to extend our thanks to all of the department directors and managers along with the finance staff for their outstanding performance in preparing the budget document. BUDGET HIGHLIGHTS As we prepared this budget, the primary concerns were continuing all existing services for our citizens, maintaining appropriate staffing levels, and preserving reserve levels in accordance with the City’s fiscal policies. We also placed emphasis on ensuring the City is in a sound financial position in the future by preparing for changes that will occur as the City reaches buildout. Requests for capital items were evaluated and recommendations are based upon need and available funds. Funded capital items have been included in the FY2018-19 proposed budget as presented. 1 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400  Metro 817/267-4403  Fax 817/685-1416 www.eulesstx.gov Highlights of the proposed budget are detailed below: ♦The property tax rate for the upcoming fiscal year is proposed to remain at 46.25¢ per $100 of assessed valuation. ♦There are no cuts in programs or services for citizens. ♦Baseline budget includes a proposed salary plan of 2.5%. ♦The water rate includes a 75¢ increase in the base rate to cover increased debt service and an increase to the volume rate of 30¢ per thousand gallons. The volume rate increase covers a 26¢ pass-through increase from Trinity River Authority (TRA) in the City’s cost to purchase water and a 4¢ increase in the City’s production and distribution cost. ♦A 30¢ per thousand gallons rate stabilization rebate has been included for residential water customers for the first 15,000 gallons per month. ♦The wastewater rate includes a 25¢ increase in the base rate for City operating costs and an increase of 29¢ per thousand gallons, which is wholly attributed to a 29¢ pass- through increase from TRA for the collection and treatment of the wastewater. ♦The W ater and W astewater Operating Fund includes transfers to Capital Improvement Programs (CIP) to cash flow system infrastructure improvements including water and wastewater line replacements. The annual commitment for line replacement continues at $1,075,000. ♦The General Fund includes a transfer to CIP to cash flow annual street improvements in the amount of $950,000. This represents a significant step in achieving recommended baseline funding and eliminating dependence upon excess reserves for this critical expenditure. ♦General Fund supplemental programs include an integrated camera and Taser system for the Police Department, a field tech for public works, annual funding for tree trimming, and increased funds for HVAC system improvements. Additionally, the budget achieves the recommended baseline funding level for computer hardware and software and eliminates reliance on excess reserves. ♦The W ater and Wastewater Fund budget also includes funding for annual hardware and software maintenance agreements within the baseline budget. ♦Recommended capital items are detailed by fund in tab 5 of this book and have been included in the proposed budget. GENERAL FUND General Fund revenues are proposed at $42,138,677 which represents an increase of 2% from the previous year’s budget. Due to increased property tax values, including new construction, property tax revenues are expected to increase; however, sales tax collections have been trending downward as have other revenue sources. Property valuations as of July 25th, including minimum value of property under protest and incomplete properties, provided to the City by the Tarrant Appraisal District totaled $4,415,713,775 for FY2018-19. This represents an increase of $414,418,435 or 10.3% from the FY2017-18 tax roll of $4,001,295,340. The tax rate proposed for FY2018-19 is 46.25¢ per $100 of assessed valuation, which includes 37.1710¢ for maintenance and operations and 9.0790¢ for debt service. This total proposed rate is unchanged from FY2017-18 and represents the 25th consecutive year that the Euless property tax rate has been held flat or reduced. 2 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400  Metro 817/267-4403  Fax 817/685-1416 www.eulesstx.gov FY2017-18 sales tax collections are projected to end the fiscal year down approximately 7.7% from budget. Based on this information, sales tax projections for FY2018-19 were calculated using the estimated collections through the end of this fiscal year adjusted for anticipated development, construction, and tax increment reinvestment zone allocations. Overall, sales tax revenues are projected to decrease 2.8% below the current year budget. Other revenue sources including building permits and fines and fees have been reduced. While building permits have been strong, this revenue source will be vastly reduced when the City reaches buildout. Therefore, we continue to reduce our dependence on this revenue. Municipal court fines and fees have also been reduced based on declining case volume and legislative changes that impact collection of fines and fees. Telephone and cable franchise fees have also been reduced based on changes in the industry. Ambulance fees have also been reduced based on current collection rates. Interest income has been increased as a result of rate hikes by the Federal Reserve. General Fund operating expenses, excluding capital programs, are proposed at $42,104,564 which represents an increase of approximately 2%. This increase is primarily attributed to including the funding for hardware and software and annual street improvements in the baseline and the addition of an integrated camera and Taser system for the police department, an employees’ pay plan and a field tech for public works. The decrease in rebates is directly associated with contractual agreements and expected revenues. Recommended capital programs include funding for facility improvements, community reinvestment, inspection services, and various equipment needs. These items are proposed to be funded from excess reserves. Additionally, a transfer of $500,000 has been recommended to increase the Emergency and Contingency Reserve Fund. The current funding level of $1 million dollars has been in place for over 25 years. Given the City’s increased dependence on sales tax, an increased reserve is crucial to sustaining operations during downturns in the economy. In accordance with the City’s fiscal policy, all current expenses will be paid from current revenues. Per this policy, the budgeted General Fund reserve is equal to 60 days working capital. The fund balance summary verifies that the City has complied with this policy. Excess reserves have only been used to fund proposed capital needs. A detailed list of the recommended capital purchases can be found in tab 5. WATE R AND WASTEWATER FUND The FY2018-19 budget includes proposed operating revenues of $25,797,210, which is an increase of 5% over FY2017-18 budgeted revenues. The water and wastewater revenue projections are based on proposed rates and estimated consumption for FY2018-19. A proposed rebate is included for single family residential customers of 30¢ per thousand gallons of water used up to a maximum of 15,000 gallons per month. The City’s Rate Stabilization Fund will provide the resources to cover the cost of the proposed rebate. Proposed water and wastewater baseline expenses are $25,764,960, which is an increase of 5% over current year. Although the anticipated volume of water purchased and wastewater treatment is remaining flat, the projected cost of water and wastewater collection services from TRA is increasing. Funding has also been included for the employees’ pay and benefits plan, additional debt service, and funding for annual hardware and software maintenance 3 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400  Metro 817/267-4403  Fax 817/685-1416 www.eulesstx.gov agreements. Proposed capital items include the purchase of an enclosed cab backhoe and transfers for wastewater and valve replacement rehabilitation projects. The proposed budget meets the criteria set forth in the City’s fiscal policies with reserves calculated at 75 days of working capital. Water and Wastewater Debt Reserve Requirements Water and wastewater revenue bond covenants require the City to maintain sufficient reserves equal to the average annual debt service requirements. This debt reserve is in addition to the working capital reserve required by the City’s fiscal policies and is maintained in a separate fund. The reserve level currently meets the requirements of the bond covenants. However, if Texas Water Development Board bond funding is awarded for the Fuller and Far North well replacements, additional reserves will be required. This budget proposes to cover the new reserve requirements from the Rate Stabilization Fund. EQUIPMENT REPLACEMENT FUND The City maintains an equipment replacement program to accumulate funds for the replacement of existing vehicles and equipment. Funding is provided annually by user departments in order to accumulate funds to cover the expected replacement costs of equipment. Any shortfall is funded from the Car Rental Fund. SPECIAL REVENUE FUNDS Hotel/Motel Fund The Hotel/Motel Fund was established to account for a 7% hotel/motel occupancy tax allowed by the State of Texas. The tax is levied on the rental of a hotel/motel room within the City of Euless. Funds generated by this occupancy tax must be expended for items that qualify in accordance with state law including the promotion of tourism, programs which enhance the arts, historical restoration programs, and convention facilities. The hotel/motel tax receipts are projected to increase in FY2018-19 from current year collections based on new development. Funding is included for Arbor Daze, conference center operations and contractual rebates. Capital funds are also included for the completion of the wayfinding sign program. Half-Cent Sales Tax Fund – Euless Development Corporation (EDC) Euless citizens approved an additional ½¢ sales tax in 1993 that is restricted for parks, library, and economic development activities. Sales tax revenue projections for FY2018-19 were calculated using the estimated collections through the end of this fiscal year adjusted for development and construction. Expenses in this fund include an increase to fund the employees’ pay plan and benefits and annual hardware and software replacements. Recommended capital programs, as detailed in tab 5, include a transfer to cash flow a portion of the library remodel, equipment for the library, transfer for the design of Texas Star Sports Complex Phase VII, transfer for miscellaneous park improvements, and funding for various parks equipment and software. This budget maintains the 60 days of working capital for reserves. 4 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400  Metro 817/267-4403  Fax 817/685-1416 www.eulesstx.gov Car Rental Tax Fund In November 1999, Euless citizens approved a 5% tax to be collected on all short-term motor vehicle rentals within the City limits. In the spring of 2000, the Dallas-Fort Worth International (DFW ) Airport opened a consolidated car rental facility within Euless city limits. These funds are divided equally among Euless, Dallas, and Fort Worth per the requirements of a revenue sharing agreement established by the parties in FY1997-98. Transfers for FY2018-19 from this fund include the annual transfer to the General Fund and a transfer to the Equipment Replacement Fund as described previously. A transfer to the CIP Fund is included to cash flow portions of the Library remodel and replenish redevelopment projects. Details of both items can be found in the CIP plan. Staff has maintained the $2,000,000 reserve level approved by the City Council. CAPITAL IMPROVEMENT FUNDS A separate Capital Improvements Program (CIP) has been updated and will be distributed under separate cover. This comprehensive document provides a summary of all funded projects detailing project scope, justification, funding sources, future maintenance and operating costs, and expenses to-date. Unfunded projects are categorized as Priority A, B, or C. Priority A items are recommended in the upcoming budget year and funding sources have been identified. Priority B items are expected to be presented for funding consideration within a two to five year window. Priority C items have been identified, but will be introduced for funding consideration at some time beyond the five year window. Projects identified as Priority B have been considered in preparing the multi-year financial plan. This plan is fluid and will be reviewed and updated annually based on infrastructure needs within the City. The FY2018-19 recommended Priority A projects include funds for the annual street improvements program including the reconstruction of portions of West Pipeline Road, South Pipeline Road, Harwood Road, Mills Drive, and Highland Drive. Other projects include funds for screening wall repairs, wastewater line replacement in Cedar Hill Estates and Oakwood Terrace Addition, water line replacement on Kynette Drive, replacement of the Fuller and Far North water wells, Carr Park Improvements, and the design of the Parks at Texas Star Phase VII. LONG-TERM DEBT The City has existing long-term debt issued for the acquisition and construction of major capital facilities, infrastructure, and equipment. Additional debt issuance planned for FY2018-19 includes: Certificates of Obligation for FY2019 Street Improvements, Euless Development Corporation Sales Tax Revenue Bonds for the Carr Park Improvements, and Water and Wastewater Revenue Bonds for the well replacements at Fuller and Far North (Texas Water Development Board). A brief explanation of the various debt instruments is provided below: General Obligation Bonds – issued pursuant to voter authorization for infrastructure and facility projects. General Obligation Refunding Bonds – issued to refund existing General Obligation Bonds and Certificates of Obligations in order to lower the overall debt service requirements of the City. These bonds do not require voter authorization. 5 Certificates of Obligation -similar to General Obligation bonded debt in usage, but do not require voter authorization and cannot be used for refunding existing debt. Water and Wastewater Revenue Bonds -issued to provide funds for certain improvements to the water and wastewater system as well as to refund prior water and wastewater debt issues. These bonds are reported in the Water and Wastewater Fund and will be repaid from revenues of this enterprise operation. Sales Tax Revenue Bonds -are used to finance library, park, and economic development projects as well as to refund prior sales tax revenue debt issues. Sales tax revenue bonds will be repaid from the half-cent sales tax revenues collected by the Euless Development Corporation. The City strives to utilize the long-term plan to maintain a stable Interest and Sinking (l&S) tax rate so as not to have undue volatility in the overall tax rate due to capital projects and debt issuance. Additional information relating to the City's currently outstanding debt is included in tab 6 of this book. CLOSING COMMENTS Preparation of this budget in cluded a city-wide effort guided by our mission to provide quality services to our citizens. Input was received from Euless residents at various forums including the June Town Hall Meeting. We believe this budget allows us to accomplish the City's goals, while maintaining the existing tax rate. We feel that this is a fiscally sound budget that meets our City's primary objectives including: maintaining financial integrity; providing public safety and health services to the community; employing high-quality professional personnel; maintaining the City's infrastructure; promoting quality development; providing quality leisure opportunities; and instilling a "sense of community" in residents. We look forward to seeing you at the budget work session. Respectfully submitted, Loretta Getchell, City Manager 20 I N. Ector Drive, Euless, Texas 76039-3595 817/685-1400 o Metro 817/267-4403 o Fax 817/685-1416 www.eulesstx.gov 6 FY 2018 Budgeted Resources 43,976,146$ Less Use of Prior Year Reserves (2,750,528)$ FY 2018 Net Operating Revenues 41,225,618$ Proposed Changes in Revenue Property Taxes 1,516,557$ Sales Tax (383,208)$ Franchise Fees 43,892$ License and Permits (195,485)$ Fines & Fees (331,601)$ Interest Income 30,000$ Transfers 207,541$ Other Changes 25,363$ Subtotal:913,059$ FY 2019 Proposed Operating Revenues 42,138,677$ FY 2018 Budgeted Expenses 43,967,653$ Less Capital Expenses (2,750,528)$ FY 2018 Net Operating Expenses 41,217,125$ Proposed Changes in Expenses Salaries and Benefits 389,190$ Rebates/Incentives (310,887)$ Professional/Technical (37,644)$ Utilities and Fees (25,947)$ Maintenance/Supplies (12,572)$ Equipment Replacement 21,181$ Traffic Signals (20,000)$ Other Changes (28,116)$ Subtotal:(24,795)$ FY 2019 Proposed Supplemental 912,234$ FY 2019 Proposed Operating Expenses 42,104,564$ Proposed Capital Expenses Capital Carryover 627,350$ Recommended Capital Expenses 1,867,508$ FY 2019 Proposed Capital Expenses 2,494,858$ FY 2019 Proposed Budget 44,599,422$ EXECUTIVE SUMMARY GENERAL FUND 7 FY 2018 Budgeted Resources 24,978,100$ Less Use of Prior Year Reserves (521,230)$ FY 2018 Net Operating Revenues 24,456,870$ Proposed Changes in Revenue Water Service 735,123$ Wastewater Service 462,305$ Reclaimed Water Service 87,267$ Interest Income 45,000$ Sanitation/Recycling/Penalties 5,645$ Other Changes 5,000$ Subtotal:1,340,340$ FY 2019 Proposed Operating Revenues 25,797,210$ FY 2018 Budgeted Expenses 24,959,864$ Less Capital Expenses (521,230)$ FY 2018 Net Operating Expenses 24,438,634$ Proposed Changes in Expenses Salaries and Benefits 81,411$ TRA Payments 806,215$ Reclaimed Water Purchases 49,801$ Transfers 273,882$ G&A/Franchise 134,034$ Utilities and Fees (55,691)$ Maintenance 37,320$ Other Changes (646)$ Subtotal:1,326,326$ FY 2019 Proposed Supplemental -$ FY 2019 Proposed Operating Expenses 25,764,960$ Proposed Capital Expenses Capital Carryover 198,921$ Recommended Capital Expenses 275,000$ FY 2019 Proposed Capital Expenses 473,921$ FY 2019 Proposed Budget 26,238,881$ EXECUTIVE SUMMARY WATER & WASTEWATER 8 FY 2018 Budgeted Resources 15,651,791$ Less Use of Prior Year Reserves (2,026,439)$ FY 2018 Net Operating Revenues 13,625,352$ Proposed Changes in Revenue Car Rental Taxes 1,170,413$ Interest Income 40,000$ Subtotal:1,210,413$ FY 2019 Proposed Operating Revenues 14,835,765$ FY 2018 Budgeted Expenses 12,967,568$ Less Capital Expenses (2,026,439)$ FY 2018 Net Operating Expenses 10,941,129$ Proposed Changes in Expenses DFW Rebate 780,275$ Contingencies -$ Transfer to General Fund 130,046$ Transfer to Equipment Replacement 105,818$ Subtotal:1,016,139$ FY 2019 Proposed Operating Expenses 11,957,268$ Proposed Capital Expenses Capital Carryover 381,339$ Recommended Capital Expenses 3,464,900$ FY 2019 Proposed Capital Expenses 3,846,239$ FY 2019 Proposed Budget 15,803,507$ EXECUTIVE SUMMARY CAR RENTAL FUND 9 Beginning Balance, FY18 $12,449,468 $2,492,157 $2,116,376 $3,148,905 (per audit, FYE 2017) FY18 Estimated Revenues 43,615,830 8,292,644 1,034,813 2,426,387 Total Available:56,065,298 10,784,801 3,151,189 5,575,292 FY18 Estimated Expenses (40,679,468)(8,151,422)(998,892)(1,925,283) Proposed Budget Adjustment (3,268,911)0 0 0 Capital Expenses (2,123,178)0 (13,500)0 Total Projected Expenses:(46,071,557)(8,151,422)(1,012,392)(1,925,283) Estimated Ending Balance FY18 9,993,741 2,633,379 2,138,797 3,650,009 FY19 Budgeted Revenues 42,138,677 7,559,893 1,079,938 2,008,842 Total Available:52,132,418 10,193,272 3,218,735 5,658,851 FY19 Budgeted Expenses (42,104,564)(7,514,893)(1,008,720)(1,326,500) Capital Carryover (627,350)0 (298,000)0 Capital Expenses (1,867,508)0 (128,000)0 Total Projected Expenses:(44,599,422)(7,514,893)(1,434,720)(1,326,500) Projected Ending Balance, FY19 7,532,996 2,678,379 1,784,015 4,332,351 Less: Designated Reserve (66,567)0 (200,000)0 Adjusted Ending Balance 7,466,429 2,678,379 1,584,015 4,332,351 Recommended Reserve Levels per Fiscal Policy: 6,921,298 2,676,744 600,000 4,332,351 Available for Supplemental:34,113 45,000 71,218 682,342 Available for Capital:511,018 (43,365)912,797 (682,342) Total Available 545,131 1,635 984,015 0 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 General and Internal Service Funds General Insurance & Benefits Risk Mgmt. & Workers Comp Equipment Replacement 10 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 Special Revenue Funds Beginning Balance, FY18 $604,024 $242,557 $2,383,014 $1,294,807 $2,987,692 (per audit, FYE 2017) FY18 Estimated Revenues 777,690 94,000 5,149,990 2,525,429 14,732,884 Total Available: 1,381,714 336,557 7,533,004 3,820,236 17,720,576 FY18 Estimated Expenses (772,821) (90,167) (4,246,179) (2,506,656) (10,941,129) Proposed Budget Adjustment (72,000)0 0 0 (824,858) Capital Expenses (219,355)0 (1,530,586)(168,885)(1,645,100) Total Projected Expenses: (1,064,176)(90,167)(5,776,765)(2,675,541)(13,411,087) Estimated Ending Balance FY18 317,538 246,390 1,756,239 1,144,695 4,309,489 FY19 Budgeted Revenues 869,690 94,000 5,495,559 2,683,915 14,835,765 Total Available: 1,187,228 340,390 7,251,798 3,828,610 19,145,254 FY19 Budgeted Expenses (843,868) (81,317) (4,442,163) (2,676,714) (11,957,268) Capital Carryover 0 0 (937,324) (10,000) (381,339) Capital Expenses (75,000)0 (1,107,552)(95,970)(3,464,900) Total Projected Expenses: (918,868)(81,317)(6,487,039)(2,782,684)(15,803,507) Projected Ending Balance, FY19 268,360 259,073 764,759 1,045,926 3,341,747 Less: Designated Reserve (66,950)0 0 0 0 Adjusted Ending Balance 201,410 259,073 764,759 1,045,926 3,341,747 Recommended Reserve Levels per Fiscal Policy: 138,718 13,367 730,219 440,008 2,000,000 Available for Supplemental:25,822 12,683 1,053,396 7,201 2,878,497 Available for Capital:36,870 233,023 (1,018,856)598,717 (1,536,750) Total Available 62,692 245,706 34,540 605,918 1,341,747 Hotel/ Motel EDC 1/2 Cent Sales Tax CCPD 1/4 Cent Sales Tax Car RentalJuvenile Case 11 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 Special Revenue Funds (continued) Beginning Balance, FY18 $508,958 $24,188 $291,923 $750,000 $311,955 $616,827 $43,833 $0 (per audit, FYE 2017) FY18 Estimated Revenues 9,431 235,537 3,650 0 1,259,673 123,240 988,301 0 Total Available:518,389 259,725 295,573 750,000 1,571,628 740,067 1,032,134 0 FY18 Estimated Expenses (500)(235,537)(61,956)0 (965,350)(120,000)(988,302)0 Proposed Budget Adjustment 0 0 0 0 0 0 0 0 Capital Expenses 0 0 0 0 0 0 0 0 Total Projected Expenses:(500)(235,537)(61,956)0 (965,350)(120,000)(988,302)0 Estimated Ending Balance FY18 517,889 24,188 233,617 750,000 606,278 620,067 43,832 0 FY19 Budgeted Revenues 7,300 151,118 3,500 0 1,658,217 120,300 1,114,529 37,820 Total Available:525,189 175,306 237,117 750,000 2,264,495 740,367 1,158,361 37,820 FY19 Budgeted Expenses (500)(151,118)(61,506)0 (1,130,249)(120,000)(1,114,529)(37,820) Capital Carryover (200,000)0 0 0 0 0 0 0 Capital Expenses 0 0 0 0 0 0 0 0 Total Projected Expenses:(200,500)(151,118)(61,506)0 (1,130,249)(120,000)(1,114,529)(37,820) Projected Ending Balance, FY19 324,689 24,188 175,611 750,000 1,134,246 620,367 43,832 0 Less: Designated Reserve 0 0 0 (750,000)0 0 0 0 Adjusted Ending Balance 324,689 24,188 175,611 0 1,134,246 620,367 43,832 0 Recommended Reserve Levels per Fiscal Policy: 0 0 0 0 0 0 0 0 Available for Supplemental:6,800 0 (58,006)0 527,968 300 0 0 Available for Capital:317,889 24,188 233,617 0 606,278 620,067 43,832 0 Total Available 324,689 24,188 175,611 0 1,134,246 620,367 43,832 0 Grant Midtown TIRZ Glade Parks TIRZ Police Drug Police Seized Assets Glade Parks PID #1 Cable PEG Fee Midtown PID 12 Beginning Balance, FY18 $6,392,221 $452,423 $344,177 $297,311 $16,441 $79,303 $106,333 (per audit, FYE 2017) FY18 Estimated Revenues 24,557,515 1,282,836 811,162 714,651 80,000 4,399,687 1,368,834 Total Available:30,949,736 1,735,259 1,155,339 1,011,962 96,441 4,478,990 1,475,167 FY18 Estimated Expenses (24,158,832)(1,232,036)(807,617)(650,806)(79,500)(4,394,825)(1,219,742) Proposed Budget Adjustment 0 0 0 (19,530)0 0 0 Capital Expenses (322,309)(17,800)(100,000)(56,743)0 0 (85,850) Total Projected Expenses:(24,481,141)(1,249,836)(907,617)(727,079)(79,500)(4,394,825)(1,305,592) Estimated Ending Balance FY18 6,468,595 485,423 247,722 284,883 16,941 84,165 169,575 FY19 Budgeted Revenues 25,797,210 1,309,899 814,000 716,030 80,000 4,636,280 1,281,100 Total Available:32,265,805 1,795,322 1,061,722 1,000,913 96,941 4,720,445 1,450,675 FY19 Budgeted Expenses (25,764,960)(1,309,899)(813,404)(670,481)(80,000)(4,620,972)(1,185,932) Capital Carryover (198,921)(25,000)0 0 0 0 0 Capital Expenses (275,000)(56,500)(80,000)(83,840)0 0 (68,566) Total Projected Expenses:(26,238,881)(1,391,399)(893,404)(754,321)(80,000)(4,620,972)(1,254,498) Projected Ending Balance, FY19 6,026,924 403,923 168,318 246,592 16,941 99,473 196,177 Less: Designated Reserve 0 0 0 0 0 0 0 Adjusted Ending Balance 6,026,924 403,923 168,318 246,592 16,941 99,473 196,177 Recommended Reserve Levels per Fiscal Policy: 5,294,170 0 167,138 137,770 0 0 0 Available for Supplemental:32,250 0 596 45,549 0 15,308 95,168 Available for Capital:700,504 403,923 584 63,273 16,941 84,165 101,009 Total Available 732,754 403,923 1,180 108,822 16,941 99,473 196,177 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 Enterprise Funds Water & Wastewater Service Center Drainage Utility System Recreation Classes Arbor Daze Texas Star Golf Texas Star Sports Complex 13 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 Debt Service Funds Beginning Balance, FY18 $1,263,920 $134,575 $2,260 $91,913 $55,106 (per audit, FYE 2017) FY18 Estimated Revenues 6,059,049 708,900 36,383 950,828 596,206 Total Available:7,322,969 843,475 38,643 1,042,741 651,312 FY18 Estimated Expenses (5,649,042)(706,300)(36,372)(949,992)(595,826) Proposed Budget Adjustment (205,627)0 0 0 0 Total Projected Expenses:(5,854,669)(706,300)(36,372)(949,992)(595,826) Estimated Ending Balance FY18 1,468,300 137,175 2,271 92,749 55,486 FY19 Budgeted Revenues 5,945,013 711,390 249,054 1,502,987 589,440 FY19 Budgeted Revenues 7,413,313 848,565 251,325 1,595,736 644,926 FY19 Budgeted Expenses (6,017,320)(708,830)(249,054)(1,502,987)(589,040) Capital Carryover 0 0 0 0 0 Capital Expenses 0 0 0 0 0 Total Projected Expenses:(6,017,320)(708,830)(249,054)(1,502,987)(589,040) Projected Ending Balance, FY19 1,395,993 139,735 2,271 92,749 55,886 Less: Designated Reserve (292,829)(41,250)0 0 0 Adjusted Ending Balance 1,103,164 98,485 2,271 92,749 55,886 Recommended Reserve Levels per Fiscal Policy: 344,074 0 0 0 0 Available for Supplemental:(72,307)2,560 0 0 400 Available for Capital:831,397 95,925 2,271 92,749 55,486 Total Available 759,090 98,485 2,271 92,749 55,886 Texas Star Golf Course Debt EDC 1/2 Cent Sales Tax Debt G.O.Debt Service Stars Center Debt Water & Wastewater Debt 14                       15 Fund Balance Summary Estimated FY2017-18 and Budgeted FY2018-19 Reserve Funds Beginning Balance, FY18 1,000,000 $134,964 $999,725 $1,141,351 $2,101,245 $521,812 $1,067,487 (per audit, FYE 2017) FY18 Estimated Revenues 0 50 0 41,015 1,786,880 26,700 252,500 Total Available:1,000,000 135,014 999,725 1,182,366 3,888,125 548,512 1,319,987 FY18 Estimated Expenses 0 (36,422)0 0 (307,787)0 (100,000) Proposed Budget Adjustment 0 0 0 0 0 0 0 Capital Expenses 0 0 0 0 0 0 (100,000) Total Projected Expenses:0 (36,422)0 0 (307,787)0 (200,000) Estimated Ending Balance FY18 1,000,000 98,592 999,725 1,182,366 3,580,338 548,512 1,119,987 FY19 Budgeted Revenues 500,000 74,530 0 450,000 20,000 26,300 228,500 FY19 Budgeted Revenues 1,500,000 173,122 999,725 1,632,366 3,600,338 574,812 1,348,487 FY19 Budgeted Expenses 0 (46,522)0 0 (331,609)0 (100,000) Capital Carryover 0 0 0 0 0 0 0 Capital Expenses 0 0 0 0 (450,000)0 (115,000) Total Projected Expenses:0 (46,522)0 0 (781,609)0 (215,000) Projected Ending Balance, FY19 1,500,000 126,600 999,725 1,632,366 2,818,729 574,812 1,133,487 Less: Designated Reserve (1,500,000)(126,600)(999,725)(1,619,065)0 0 (523,436) Adjusted Ending Balance 0 0 0 13,301 2,818,729 574,812 610,051 Recommended Reserve Levels per Fiscal Policy: 0 0 0 0 0 243,685 949,515 Available for Supplemental:500,000 28,008 0 450,000 (311,609)26,300 128,500 Available for Capital:(500,000)(28,008)0 (436,699)3,130,338 304,827 (467,964) Total Available 0 0 0 13,301 2,818,729 331,127 (339,464) General Emergency / Contingency Reserves EDC 1/2 Cent Sales Tax Debt Reserve Water & Wastewater Debt & Emergency Reserve Texas Star Golf Course Reserve Water & Wastewater Rate Stabilization Reserve Texas Star Sports Complex Reserve Midtown Bond Reserve 16 Budgeted FY2017-2018 Proposed FY2018-2019 Fund Revenue Use of Reserves Revenue Use of Reserves General 41,225,618$ 2,750,528$ 42,138,677$ 2,494,858$ Hotel/Motel 924,450$ 219,355$ 869,690$ 75,000$ Juvenile Case 91,800$ -$ 94,000$ -$ EDC ½¢ Sales Tax 5,546,154$ 2,367,910$ 5,495,559$ 2,044,876$ CCPD ¼¢ Sales Tax 2,738,659$ 188,282$ 2,683,915$ 105,970$ Police Seized Assets Fund 1,250$ 60,706$ 3,500$ 58,006$ Police Drug Fund 1,400$ 200,000$ 7,300$ 200,000$ Grant Fund 235,537$ -$ 151,118$ -$ Car Rental 13,625,352$ 2,026,439$ 14,835,765$ 3,846,239$ Glade Parks PID -$ -$ -$ -$ Glade Parks TIRZ 1,362,650$ -$ 1,658,217$ -$ Cable PEG Fund 130,400$ -$ 120,300$ -$ Midtown PID 988,302$ -$ 1,114,529$ -$ Midtown TIRZ -$ -$ 37,820$ -$ Water & Wastewater 24,456,870$ 521,230$ 25,797,210$ 473,921$ Service Center 1,284,986$ 42,800$ 1,309,899$ 81,500$ Drainage Utility 810,212$ 100,000$ 814,000$ 80,000$ Recreation Classes 679,430$ 56,743$ 716,030$ 83,840$ Arbor Daze 80,000$ -$ 80,000$ -$ Texas Star Golf Course (TSGC)4,540,896$ -$ 4,636,280$ -$ Texas Star Sports Complex (TSSC)1,338,600$ 85,850$ 1,281,100$ 68,566$ Equip. Replacement 2,399,920$ -$ 2,008,842$ -$ Insurance 8,219,059$ 100,000$ 7,559,893$ -$ Risk/WC 1,019,938$ 311,500$ 1,079,938$ 426,000$ General Obligation Debt 5,907,923$ -$ 5,945,013$ 72,307$ Star Center Debt 706,300$ -$ 711,390$ -$ EDC Debt 36,372$ -$ 249,054$ -$ Water & Wastewater Debt 1,195,689$ -$ 1,502,987$ -$ TSGC Debt 595,826$ -$ 589,440$ -$ TOTAL 120,143,593$ 9,031,343$ 123,491,466$ 10,111,083$ Schedule includes operating and debt funds and excludes CIP and reserve funds. Where Does The Money Come From? General 34% EDC 5% CCPD 2%Car Rental 12% W&WW 21% Golf 4% Insurance 6% Risk/WC 1% Debt 7% Other 8% FY2018-2019 17 Budgeted FY2017-2018 Proposed FY2018-2019 Fund Operating Expenses Capital Expenses Operating Expenses Capital Expenses General 41,217,125$ 2,750,528$ 42,104,564$ 2,494,858$ Hotel/Motel 772,821$ 219,355$ 843,868$ 75,000$ Juvenile Case 90,167$ -$ 81,317$ -$ EDC ½¢ Sales Tax 4,246,179$ 2,367,910$ 4,442,163$ 2,044,876$ CCPD ¼¢ Sales Tax 2,719,514$ 188,282$ 2,676,714$ 105,970$ Police Seized Assets Fund 61,956$ -$ 61,506$ -$ Police Drug Fund 500$ 200,000$ 500$ 200,000$ Grant Fund 235,537$ -$ 151,118$ -$ Car Rental 10,941,129$ 2,026,439$ 11,957,268$ 3,846,239$ Glade Parks PID -$ -$ -$ -$ Glade Parks TIRZ 965,350$ -$ 1,130,249$ -$ Cable PEG Fund 120,000$ -$ 120,000$ -$ Midtown PID 988,302$ -$ 1,114,529$ -$ Midtown TIRZ -$ -$ 37,820$ -$ Water & Wastewater 24,438,634$ 521,230$ 25,764,960$ 473,921$ Service Center 1,284,986$ 42,800$ 1,309,899$ 81,500$ Drainage Utility 807,617$ 100,000$ 813,404$ 80,000$ Recreation Classes 650,806$ 56,743$ 670,481$ 83,840$ Arbor Daze 79,500$ -$ 80,000$ -$ Texas Star Golf Course (TSGC)4,518,975$ -$ 4,620,972$ -$ Texas Star Sports Complex (TSSC)1,236,204$ 85,850$ 1,185,932$ 68,566$ Equip. Replacement 1,935,783$ -$ 1,326,500$ -$ Insurance 8,151,422$ 100,000$ 7,514,893$ -$ Risk/WC 998,892$ 311,500$ 1,008,720$ 426,000$ General Obligation Debt 5,649,042$ -$ 6,017,320$ -$ Star Center Debt 706,300$ -$ 708,830$ -$ EDC Debt 36,372$ -$ 249,054$ -$ Water & Wastewater Debt 1,195,689$ -$ 1,502,987$ -$ TSGC Debt 595,826$ -$ 589,040$ -$ TOTAL 114,644,628$ 8,970,637$ 118,084,608$ 9,980,770$ Schedule includes operating and debt funds and exlcudes CIP and reserve funds. Where Does The Money Go? General 36% EDC 4%CCPD 2% Car Rental 10% W&WW 22% Golf 4% Insurance 6% Risk/WC 1% Debt 8%Other 7% FY2018-2019 18                       19 General Fund Revenues Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Revenues FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Property Taxes 12,274,326$ 13,639,048$ 13,590,183$ 15,155,605$ 1,516,557$ 11% Prior Year Property Taxes 47,690$ 30,000$ 25,000$ 30,000$ -$ 0% Penalties & Interest 68,615$ 65,000$ 60,000$ 65,000$ -$ 0% Sales Tax 10,435,753$ 10,805,859$ 9,985,426$ 10,487,214$ (318,645)$ (3%) Additional Sales Tax 2,658,227$ 2,771,302$ 2,552,249$ 2,706,739$ (64,563)$ (2%) Mixed Drink Tax 128,252$ 145,000$ 150,000$ 171,075$ 26,075$ 18% Electric Franchise 1,633,066$ 1,683,432$ 1,683,432$ 1,700,266$ 16,834$ 1% Gas Franchise 384,230$ 380,000$ 427,604$ 430,000$ 50,000$ 13% Telephone Franchise 282,336$ 309,000$ 275,500$ 268,000$ (41,000)$ (13%) Sanitation Service 232,445$ 232,800$ 248,185$ 252,000$ 19,200$ 8% Recycling Franchise Fee 19,585$ 19,200$ 20,225$ 20,225$ 1,025$ 5% Cable Franchise Fee 623,174$ 658,000$ 583,000$ 580,000$ (78,000)$ (12%) W&WW Franchise Tax 1,155,834$ 1,222,844$ 1,229,236$ 1,298,677$ 75,833$ 6% Other Permits 26,613$ 25,000$ 26,330$ 26,000$ 1,000$ 4% Health Permits 72,050$ 70,000$ 70,185$ 70,000$ -$ 0% Fire Permits 84,448$ 69,500$ 106,275$ 90,000$ 20,500$ 29% Contractor Regulatory License 67,200$ 62,000$ 62,000$ 65,000$ 3,000$ 5% Minimum Housing 101,623$ 100,000$ 79,015$ 79,015$ (20,985)$ (21%) Misc. Permits and Fees 43,382$ 44,000$ 45,145$ 45,000$ 1,000$ 2% Building Permits 1,624,178$ 500,000$ 1,000,000$ 300,000$ (200,000)$ (40%) Swimming Pools/Concessions 233,553$ 265,000$ 226,955$ 230,000$ (35,000)$ (13%) Auto Theft Task Force Grant 85,616$ 87,506$ 93,210$ 95,000$ 7,494$ 9% School Resource Officers 316,933$ 323,272$ 323,272$ 325,000$ 1,728$ 1% Municipal Court 2,582,580$ 2,650,846$ 2,490,941$ 2,513,980$ (136,866)$ (5%) Library Fees 30,395$ 29,835$ 28,725$ 20,100$ (9,735)$ (33%) Ambulance Fees 1,043,748$ 1,150,000$ 1,018,000$ 1,010,000$ (140,000)$ (12%) Alarm Revenue 118,825$ 130,000$ 95,000$ 130,000$ -$ 0% Jail Revenue 302,115$ 210,000$ 160,000$ 200,000$ (10,000)$ (5%) Interest Income 140,239$ 140,000$ 163,910$ 170,000$ 30,000$ 21% Miscellaneous 164,815$ 108,778$ 124,411$ 105,174$ (3,604)$ (3%) Tower Lease 465,998$ 511,400$ 490,828$ 505,570$ (5,830)$ (1%) Betterment/Contributions 15,452$ 15,500$ 15,290$ 15,000$ (500)$ (3%) Issuance of Debt 249,370$ -$ 3,268,911$ -$ -$ 0% Transfers 2,771,596$ 2,771,496$ 2,897,387$ 2,979,037$ 207,541$ 7% TOTAL REVENUES 40,484,262$ 41,225,618$ 43,615,830$ 42,138,677$ 913,059$ 2% Use of Reserves -$ 2,750,528$ 2,455,727$ 2,494,858$ (255,670)$ (9%) TOTAL RESOURCES 40,484,262$ 43,976,146$ 46,071,557$ 44,633,535$ 657,389$ 1% Sales & Uses Taxes 32% Licenses/Permits 2% Franchise Fees 11% Fines & Fees 10%Interest 0% Transfers 7% Miscellaneous 2% Property Taxes 36% FY2018-2019 20 TAX RATE SCENARIOS As Computed from July 2018 Certified Tax Roll Fiscal Year 2018-19 Fiscal Year Revenue at Revenue at Revenue at 2017-18 Effective Tax Rate Proposed Rate Rollback Rate Total Tax Rate 0.462500 0.434906 0.462500 0.463482 Debt Tax Rate 0.101444 0.090790 0.090790 0.090790 M & O Tax Rate 0.361056 0.344116 0.371710 0.372692 Assessed Valuation (a)$4,001,295,340 $4,415,713,775 $4,415,713,775 $4,415,713,775 Adj. Net Taxable Value Assessed (b)$3,629,365,224 $3,953,691,076 $3,953,691,076 $3,953,691,076 TIF Increment Value (c)113,256,202 149,223,532 149,223,532 149,223,532 Total Debt $5,441,881 $6,426,150 $6,426,150 $6,426,150 Debt Paid by other Sources ($1,760,106)($2,836,566)($2,836,566)($2,836,566) Taxable Debt Service $3,681,775 $3,589,584 $3,589,584 $3,589,584 Debt Revenue $3,681,773 $3,589,556 $3,589,556 $3,589,556 Prior Year Debt Revenue $3,251,160 $3,681,773 $3,681,773 $3,681,773 Increase (Decrease) in Debt Revenue $430,614 ($92,217)($92,217)($92,217) M&O Revenue - General Fund $12,907,480 $13,265,151 $14,328,858 $14,366,713 Ceiling Revenues $731,568 $813,935 $826,747 $827,175 Total General Fund Tax Revenue $13,639,048 $14,079,086 $15,155,605 $15,193,888 Prior Year M&O Revenue $12,340,137 $13,639,048 $13,639,048 $13,639,048 Increase (Decrease) in M&O Revenue $1,298,911 $440,038 $1,516,557 $1,554,840 Total Increase in Tax Revenue $1,729,525 $347,821 $1,424,340 $1,462,623 NOTES: (c) TIF = Tax Increment Finance zone increment value increase contracted at 75% ($198,964,709 @ 75% = $149,223,532). Note: Under these circumstances each penny of tax equals approximately $385,485 ($3,953,691,076*.01*.975/100 = $385,485). M&O Revenues are at a collection rate of approximately 97.5%. Debt Revenues are at 100% collections. M&O = Maintenance and Operations (a) Assessed Valuation is the Net Taxable Value from T.A.D. plus minimum value of ARB and estimate of incomplete property. (b)Adj.Net Taxable Value Assessed =Assessed Value less TIF increment $149,223,532 and authorized ceiling Over 65 $291,950,368 and Disabled Persons $20,848,799. 21 General Fund Expenditures Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. City Council 14,980$ 40,680$ 40,680$ 40,680$ -$ 0% City Administration 574,838$ 596,912$ 593,212$ 604,731$ 7,819$ 1% City Secretary 355,690$ 412,918$ 405,828$ 432,205$ 19,287$ 5% Communications/Marketing 13,489$ 23,475$ 16,725$ 16,725$ (6,750)$ (29%) Total - City Administration 958,997$ 1,073,985$ 1,056,445$ 1,094,341$ 20,356$ 2% Finance/Budget 225,151$ 240,938$ 240,513$ 248,954$ 8,016$ 3% Municipal Court 699,822$ 808,974$ 799,444$ 848,515$ 39,541$ 5% Accounting 341,077$ 469,965$ 380,139$ 434,131$ (35,834)$ (8%) Purchasing 91,641$ 95,286$ 73,717$ 103,457$ 8,171$ 9% Total - Finance 1,357,691$ 1,615,163$ 1,493,813$ 1,635,057$ 19,894$ 1% Emergency Management 40,675$ 50,775$ 40,775$ 56,770$ 5,995$ 12% Police Code Compliance 1,566,648$ 1,703,150$ 1,691,468$ 1,754,218$ 51,068$ 3% Police Administration 1,020,744$ 1,068,297$ 1,051,434$ 1,100,434$ 32,137$ 3% Police Patrol 5,239,569$ 5,852,113$ 5,817,982$ 5,880,980$ 28,867$ 0% Police CID 1,714,247$ 1,795,160$ 1,784,467$ 1,745,815$ (49,345)$ (3%) Police Service 1,929,777$ 2,281,586$ 2,239,838$ 2,301,329$ 19,743$ 1% Police Detention 1,507,558$ 1,569,978$ 1,545,278$ 1,633,638$ 63,660$ 4% Total-Police 13,019,218$ 14,321,059$ 14,171,242$ 14,473,184$ 152,125$ 1% Fire Marshal/Education 583,052$ 614,337$ 615,587$ 647,537$ 33,200$ 5% Fire Administration 524,205$ 553,477$ 551,977$ 555,136$ 1,659$ 0% EMS/Suppression 8,772,335$ 9,254,148$ 9,230,148$ 9,319,870$ 65,722$ 1% Total-Fire 9,879,592$ 10,421,962$ 10,397,712$ 10,522,543$ 100,581$ 1% Information Services 306,587$ 352,956$ 347,456$ 682,820$ 329,864$ 93% Human Resources 379,054$ 449,397$ 433,757$ 437,783$ (11,614)$ (3%) Facility Maintenance 1,016,191$ 1,044,176$ 968,436$ 1,095,480$ 51,304$ 5% Library 751,803$ 793,773$ 788,692$ 807,535$ 13,762$ 2% Total - Administrative Services 2,453,635$ 2,640,302$ 2,538,341$ 3,023,618$ 383,316$ 15% Planning & Development 305,928$ 325,492$ 317,613$ 321,777$ (3,715)$ (1%) Inspection Services 364,872$ 395,007$ 392,227$ 395,426$ 419$ 0% Total-Development 670,800$ 720,499$ 709,840$ 717,203$ (3,296)$ (0%) Recreation 600,346$ 725,351$ 714,395$ 722,417$ (2,934)$ (0%) Parks 1,286,136$ 1,457,924$ 1,411,623$ 1,424,511$ (33,413)$ (2%) Swimming Pools 137,329$ 163,460$ 156,460$ 156,460$ (7,000)$ (4%) Senior Center 247,366$ 278,107$ 270,355$ 283,240$ 5,133$ 2% Recreation Admin.70,635$ 79,162$ 79,162$ 82,723$ 3,561$ 4% Total-Parks & Comm Srvcs 2,341,812$ 2,704,004$ 2,631,995$ 2,669,351$ (34,653)$ (1%) Street Maintenance 1,761,557$ 1,955,713$ 1,937,722$ 2,354,700$ 398,987$ 20% Animal Control 276,924$ 315,937$ 287,937$ 307,551$ (8,386)$ (3%) City Engineer 51,556$ 122,735$ 82,735$ 79,324$ (43,411)$ (35%) Total - Public Works 2,090,037$ 2,394,385$ 2,308,394$ 2,741,575$ 347,190$ 15% Legal Services 133,857$ 175,000$ 160,000$ 175,000$ -$ 0% Non-Departmental 5,052,777$ 5,137,266$ 8,467,097$ 5,037,692$ (99,574)$ (2%) Betterment 23,794$ 13,500$ 13,500$ 15,000$ 1,500$ 11% Total - Non-Depart.5,210,428$ 5,325,766$ 8,640,597$ 5,227,692$ (98,074)$ (2%) Total Operating Expenses 37,982,210$ 41,217,125$ 43,948,379$ 42,104,564$ 887,439$ 2% Capital Expenses 1,296,054$ 2,750,528$ 2,123,178$ 2,494,858$ (255,670)$ (9%) Total Expenses 39,278,264$ 43,967,653$ 46,071,557$ 44,599,422$ 631,769$ 1% City Admin 2% Police 32% Fire 23% Development 2% Non-Depart 12% Admin Srvcs 7% Finance 4% Public Works 6% PACS 6%Capital 6%FY2018-2019 22 Water & Wastewater Revenues Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Revenues FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Interest Income(1)63,125$ 30,000$ 60,000$ 75,000$ 45,000$ 150% Sanitation 243,528$ 218,400$ 224,045$ 224,045$ 5,645$ 3% Water Service 12,517,495$ 13,532,489$ 13,532,489$ 14,267,612$ 735,123$ 5% Wastewater Service 8,386,398$ 9,085,715$ 9,085,715$ 9,548,020$ 462,305$ 5% Reclaimed Water Service 511,593$ 475,984$ 475,984$ 563,251$ 87,267$ 18% New Meters(1)77,862$ 55,000$ 60,000$ 55,000$ -$ 0% Reconnect Fees(1)237,128$ 230,000$ 235,000$ 235,000$ 5,000$ 2% Inspection Fees(1)393,976$ 150,000$ 200,000$ 150,000$ -$ 0% Miscellaneous(1)55,406$ 35,000$ 40,000$ 35,000$ -$ 0% Penalties 239,864$ 230,000$ 230,000$ 230,000$ -$ 0% Initiations/Transfer Fees(1)32,495$ 30,000$ 30,000$ 30,000$ -$ 0% Recycling Fees 371,578$ 384,282$ 384,282$ 384,282$ -$ 0% Use of Rate Stabilization 210,840$ 266,772$ 266,772$ 266,609$ (163)$ (0%) Rate Stabilization Rebate (210,840)$ (266,772)$ (266,772)$ (266,609)$ 163$ (0%) TOTAL REVENUES 23,130,448$ 24,456,870$ 24,557,515$ 25,797,210$ 1,340,340$ 5% Use of Reserves -$ 521,230$ -$ 473,921$ (47,309)$ (9%) TOTAL RESOURCES 23,130,448$ 24,978,100$ 24,557,515$ 26,271,131$ 1,293,031$ 5% (1) Water & Wastewater Revenue line items are aggregated in graph under "Other" The above graph shows the sources of revenues in the Water &Wastewater Fund which are generated by services provided to the citizens of Euless for recycling, sanitation, water and wastewater. The "Other" amount represents 2% of total revenues and is an aggregate of several revenue sources as indicated in the table below. The above chart details revenues for the past, current, and upcoming fiscal years, as well as expected increases and decreases in service fee collections within the past year. The Water and Wastewater 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. Sanitation 1% Recycling 2% Other (1) 2% Water 55% Reclaimed Water 2% Penalties 1% Wastewater 37% FY2018-2019 23 Water & Wastewater Expenditures Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Water Office 449,344$ 474,981$ 474,981$ 476,243$ 1,262$ 0% Total-Finance 449,344$ 474,981$ 474,981$ 476,243$ 1,262$ 0% City Engineer 298,682$ 364,501$ 364,501$ 369,821$ 5,320$ 1% Water Production 7,678,566$ 7,961,337$ 7,956,337$ 8,446,471$ 485,134$ 6% Water Distribution 976,728$ 1,089,964$ 1,089,964$ 1,177,137$ 87,173$ 8% Wastewater Treatment 3,781,276$ 4,542,215$ 4,543,515$ 4,884,966$ 342,751$ 8% Meter Reading 63,344$ 68,847$ 68,847$ 70,396$ 1,549$ 2% Total-Public Works 12,798,596$ 14,026,864$ 14,023,164$ 14,948,791$ 921,927$ 7% Recycling 25,058$ 41,300$ 41,300$ 41,300$ -$ 0% GIS/Information Services 570,333$ 632,601$ 632,601$ 684,857$ 52,256$ 8% Legal Services 64,596$ 85,000$ 85,000$ 85,000$ -$ 0% Non-Departmental 8,309,044$ 9,177,888$ 8,901,786$ 9,528,769$ 350,881$ 4% Total-Non Departmental 8,969,031$ 9,936,789$ 9,660,687$ 10,339,926$ 403,137$ 4% Total Operating Expenses 22,216,971$ 24,438,634$ 24,158,832$ 25,764,960$ 1,326,326$ 5% Capital Expenses 13,257$ 521,230$ 322,309$ 473,921$ (47,309)$ (9%) Total Expenses 22,230,228$ 24,959,864$ 24,481,141$ 26,238,881$ 1,279,017$ 5% The graph above indicates the expenditure amounts disbursed to the individual departments within the Water and Wastewater Fund. These expenditures reflect the cost incurred by the City for the services provided to Euless citizens. The chart details the expenditures over the past, current, and upcoming fiscal years, as well as the expected increases and decreases in costs within the past year. These expenditures account for the cost associated with the acquisition, operation and maintenance of a municipal water and wastewater utility system. Finance 2% Public Works 2% Water Production 32% Water Distribution 4% Wastewater Treatment 19% GIS 2% Capital 2% Non-Depart. 37%FY2018-2019 24 All Other Enterprise Operating Funds Proposed FY18 Budget to Enterprise Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Service Center Fund: Revenues 1,317,509$ 1,284,986$ 1,282,836$ 1,309,899$ 24,913$ 2% Operating Expenses 1,110,299$ 1,284,986$ 1,232,036$ 1,309,899$ 24,913$ 2% Use of Reserves -$ 42,800$ -$ 81,500$ 38,700$ 90% Capital Expenses 39,532$ 42,800$ 17,800$ 81,500$ 38,700$ 90% Drainage Utility System: Revenues 731,978$ 810,212$ 811,162$ 814,000$ 3,788$ 0% Operating Expenses 649,748$ 807,617$ 807,617$ 813,404$ 5,787$ 1% Use of Reserves -$ 100,000$ 96,455$ 80,000$ (20,000)$ (20%) Capital Expenses 75,000$ 100,000$ 100,000$ 80,000$ (20,000)$ (20%) Recreation Classes: Revenues 734,589$ 679,430$ 714,651$ 716,030$ 36,600$ 5% Operating Expenses 700,183$ 650,806$ 670,336$ 670,481$ 19,675$ 3% Use of Reserves -$ 56,743$ 12,428$ 83,840$ 27,097$ 48% Capital Expenses 25,829$ 56,743$ 56,743$ 83,840$ 27,097$ 48% Arbor Daze: Revenues 66,275$ 80,000$ 80,000$ 80,000$ -$ 0% Operating Expenses 66,274$ 79,500$ 79,500$ 80,000$ 500$ 1% Use of Reserves -$ -$ -$ -$ -$ 0% Capital Expenses -$ -$ -$ -$ -$ 0% Texas Star Golf Course: Revenues 4,335,978$ 4,540,896$ 4,399,687$ 4,636,280$ 95,384$ 2% Operating Expenses 4,415,419$ 4,518,975$ 4,394,825$ 4,620,972$ 101,997$ 2% Use of Reserves 79,441$ -$ -$ -$ -$ 0% Capital Expenses -$ -$ -$ -$ -$ 0% Texas Star Sports Complex: Revenues 1,351,259$ 1,338,600$ 1,368,834$ 1,281,100$ (57,500)$ (4%) Operating Expenses 1,242,598$ 1,236,204$ 1,219,742$ 1,185,932$ (50,272)$ (4%) Use of Reserves -$ 85,850$ -$ 68,566$ (17,284)$ (20%) Capital Expenses 49,985$ 85,850$ 85,850$ 68,566$ (17,284)$ (20%) This chart presents revenues, operating and capital expenses, and use of reserves for all other enterprise operating funds presented within the City of Euless' Annual Operating Budget. 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 Drainage Fund is used to account for the acquisition, operation, and maintenance of the City's municipal drainage utility system. The Arbor Daze Fund is used to account for expenses related to the annual festival. The Texas Star Golf Course and Texas Star Sports Complex Funds are used to account for the operations and maintenance of these facilities which are supported primarily by user charges. The Service Center Fund is used to account for the maintenance of the City's motor vehicles. The Recreation Class Fund is used to account for the operation of recreational programs, activities and special events offered to Euless citizens and other groups on a fee basis. 25 Special Revenue Operating Funds Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Hotel/Motel: Revenues 802,874$ 924,450$ 777,690$ 869,690$ (54,760)$ (6%) Operating Expenses 656,361$ 772,821$ 772,821$ 843,868$ 71,047$ 9% Use of Reserves -$219,355$ 286,486$ 75,000$ (144,355)$ (66%) Capital Expenses 5,606$ 219,355$ 291,355$ 75,000$ (144,355)$ (66%) Juvenile Case: Revenues 91,734$ 91,800$ 94,000$ 94,000$ 2,200$ 2% Operating Expenses 62,563$ 90,167$ 90,167$ 81,317$ (8,850)$ (10%) Use of Excess Reserves -$-$ -$-$-$ 0% Capital Expenses -$-$ -$-$-$ 0% EDC ½¢ Sales Tax: Revenues 5,331,415$ 5,546,154$ 5,149,990$ 5,495,559$ (50,595)$ (1%) Operating Expenses 3,693,719$ 4,246,179$ 4,246,179$ 4,442,163$ 195,984$ 5% Use of Reserves 677,278$ 2,367,910$ 626,775$ 2,044,876$ (323,034)$ (14%) Capital Expenses 2,314,974$ 2,367,910$ 1,530,586$ 2,044,876$ (323,034)$ (14%) CCPD ¼¢ Sales Tax: Revenues 2,678,584$ 2,738,659$ 2,525,429$ 2,683,915$ (54,744)$ (2%) Operating Expenses 2,453,484$ 2,719,514$ 2,506,656$ 2,676,714$ (42,800)$ (2%) Use of Reserves 45,972$ 188,282$ 150,112$ 105,970$ (82,312)$ (44%) Capital Expenses 271,072$ 188,282$ 168,885$ 105,970$ (82,312)$ (44%) Police Seized Assets Fund: Revenues 2,445$ 1,250$ 3,650$ 3,500$ 2,250$ 180% Operating Expenses 99,634$ 61,956$ 61,956$ 61,506$ (450)$ (1%) Use of Reserves 130,864$ 60,706$ 58,306$ 58,006$ (2,700)$ (4%) Capital Expenses 33,675$ -$ -$-$-$ 0% Police Drug Fund: Revenues 19,077$ 1,400$ 9,431$ 7,300$ 5,900$ 421% Operating Expenses 9,381$ 500$ 500$ 500$ -$ 0% Use of Reserves -$200,000$ -$200,000$ -$ 0% Capital Expenses -$200,000$ -$200,000$ -$ 0% Grant Fund: Revenues 281,032$ 235,537$ 235,537$ 151,118$ (84,419)$ (36%) Operating Expenses 276,299$ 235,537$ 235,537$ 151,118$ (84,419)$ (36%) Use of Reserves -$-$ -$-$-$ 0% Capital Expenses -$-$ -$-$-$ 0% Car Rental Tax: Revenues 14,458,792$ 13,625,352$ 14,732,884$ 14,835,765$ 1,210,413$ 9% Operating Expenses 11,758,682$ 10,941,129$ 11,765,987$ 11,957,268$ 1,016,139$ 9% Use of Reserves -$ 2,026,439$ -$3,846,239$ 1,819,800$ 90% Capital Expenses 2,490,306$ 2,026,439$ 1,645,100$ 3,846,239$ 1,819,800$ 90% Glade Parks TIRZ: Revenues 966,338$ 1,362,650$ 1,259,673$ 1,658,217$ 295,567$ 22% Operating Expenses 779,744$ 965,350$ 965,350$ 1,130,249$ 164,899$ 17% Use of Reserves -$-$ -$-$-$ 0% Capital Expenses -$-$ -$-$-$ 0% Cable PEG Fund: Revenues 128,244$ 130,400$ 123,240$ 120,300$ (10,100)$ (8%) Operating Expenses 36,868$ 120,000$ 120,000$ 120,000$ -$ 0% Use of Reserves -$-$ -$-$-$ 0% Capital Expenses -$-$ -$-$-$ 0% This chart presents revenues, operating and capital expenses, and use of reserves for all Special Revenue Funds presented within the City of Euless' Annual Operating Budget. 26 Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Midtown PID: Revenues 607,588$ 988,302$ 988,301$ 1,114,529$ 126,227$ 13% Operating Expenses 598,755$ 988,302$ 988,302$ 1,114,529$ 126,227$ 13% Use of Reserves -$ -$ 1$ -$ -$ 0% Capital Expenses -$ -$ -$ -$ -$ 0% Midtown TIRZ: Revenues -$ -$ -$ 37,820$ 37,820$ 0% Operating Expenses -$ -$ -$ 37,820$ 37,820$ 0% Use of Reserves -$ -$ -$ -$ -$ 0% Capital Expenses -$ -$ -$ -$ -$ 0% The Hotel/Motel Fund is used to account for occupancy tax revenues from area hotels. Expenses are dedicated to the promotion of tourism and the convention and hotel industry. Special Revenue funds are used for specific revenues that are legally restricted to expenditures for particular purposes. The Juvenile Case Fund is used to account for court fees collected. Expenses are dedicated primarily to personnel and operating costs required to process juvenile cases. The Euless Development Corporation (EDC)½¢Sales Tax Fund is used to account for the ½¢sales tax revenues. Expenses are dedicated to parks, library, recreational, and economic development activities within the City of Euless. The Cable Public Educational and Governmental (PEG)Fund is used to account for a 1% fee collected from cable channel providers for expansion of the City's public, educational, and governmental channel. The Police Seized Asset Fund is used to account for proceeds from sale of seized assets which are dedicated to police expenditures. The Glade Parks Public Improvement District (PID)Fund is used to account for assessments levied upon properties within the district boundaries. Expenses are incurred for the repayment of debt issued to fund public improvements within the district.The district will only assess property owners for the portion of the debt payment not covered with resources from the Glade Parks TIRZ. The Crime Control and Prevention District (CCPD)¼¢Sales Tax Fund is used to account for ¼¢sales tax revenues. Expenses are dedicated to additional personnel,crime prevention programs, and equipment for the Euless Police Department. The Police Drug Fund is used to account for proceeds from sale of assets seized in connection with drug arrests. Expenses are dedicated solely for police department expenditures.Only interest earnings and overtime cost are budgeted due to the volatility and unpredictable nature in asset confiscation. Grant Fund is used to account for grant funds and other restricted revenues received by the City.Expenses must be spent in accordance with the grant provisions. The Car Rental Tax Fund is used to account for the 5% tax charged on any short-term motor vehicle rental. Expenses may be dedicated to operations, debt avoidance/reduction and capital expenditures. These revenues are shared equally between the cities of Dallas, Fort Worth, and Euless. The Glade Parks Tax Increment Reinvestment Zone (TIRZ)Fund is used to account for new revenues generated from increased values of properties located within the Zone, based on the percentage pledged by each participating taxing entity. Expenses are incurred for the repayment of the related infrastructure cost. The Midtown Public Improvement District (PID)Fund is used to account for assessments levied upon properties within the district boundaries. Expenses are incurred for the repayment of debt issued to fund public improvements within the district. The Midtown Tax Increment Reinvestment Zone (TIRZ)Fund is used to account for new revenues generated from increased values of properties located within the Zone, based on the percentage pledged by each participating taxing entity. Expenses are incurred for the repayment of the related infrastructure cost. 27 Internal Service Operating Funds Proposed FY18 Budget to Internal Service Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Equipment Replacement: Revenue 3,390,670$ 2,399,920$ 2,426,387$ 2,008,842$ (391,078)$ (16%) Operating Expenses 3,474,784$ 1,935,783$ 1,925,283$ 1,326,500$ (609,283)$ (31%) Use of Excess Reserves 84,114$ -$ -$ -$ -$ - Insurance: Revenue 6,882,873$ 8,219,059$ 8,292,644$ 7,559,893$ (659,166)$ (8%) Operating Expenses 7,157,766$ 8,151,422$ 8,151,422$ 7,514,893$ (636,529)$ (8%) Use of Reserves 274,893$ 100,000$ -$ -$ (100,000)$ (100%) Capital Expenses -$ 100,000$ -$ -$ (100,000)$ (100%) Risk/WC Management: Revenue 967,478$ 1,019,938$ 1,034,813$ 1,079,938$ 60,000$ 6% Operating Expenses 844,032$ 998,892$ 998,892$ 1,008,720$ 9,828$ 1% Use of Reserves -$ 311,500$ -$ 426,000$ 114,500$ 37% Capital Expenses -$ 311,500$ 13,500$ 426,000$ 114,500$ 37% This chart presents revenues, operating and capital expenses, and use of reserves for all Internal Service Funds presented within the City of Euless' Annual Operating Budget. 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 is used to account for the accumulation of funds from user departments. Expenses are dedicated to replacement of existing equipment and motor vehicles. The Insurance Fund is used to account for both city and employee premiums. Expenses are dedicated to employees' health, dental, and prescription claims. The Risk Management/Workers'Compensation Fund is used to account for the program(s) used for worker's compensation, general liability, and property claims. 28 Debt Service Operating Funds Proposed FY18 Budget to Debt Service Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. General Obligation Debt Revenues 4,949,162$ 5,907,923$ 6,059,049$ 5,945,013$ 37,090$ 1% Operating Expenses 5,856,790$ 5,649,042$ 5,854,669$ 6,017,320$ 368,278$ 7% Use of Reserves 907,628$ -$ -$ 72,307$ 72,307$ 0% Star Center Debt Revenues 712,057$ 706,300$ 708,900$ 711,390$ 5,090$ 1% Operating Expenses 711,955$ 706,300$ 706,300$ 708,830$ 2,530$ 0% Use of Reserves -$ -$ -$ -$-$ 0% EDC Debt Service Revenues 47,115$ 36,372$ 36,383$ 249,054$ 212,682$ 585% Operating Expenses 47,016$ 36,372$ 36,372$ 249,054$ 212,682$ 585% Use of Reserves -$ -$ -$ -$-$ 0% Water & Wastewater Debt Revenues 944,200$ 1,195,689$ 950,828$ 1,502,987$ 307,298$ 26% Operating Expenses 944,100$ 1,195,689$ 949,992$ 1,502,987$ 307,298$ 26% Use of Reserves -$ -$ -$ -$-$ 0% Texas Star Golf Course Debt Revenues 590,267$ 595,826$ 596,206$ 589,440$ (6,386)$ (1%) Operating Expenses 590,075$ 595,826$ 595,826$ 589,040$ (6,786)$ (1%) Use of Reserves -$ -$ -$ -$-$ 0% The Golf Course Debt Service Fund is used to account for a pledge of the surplus net revenues derived from the operation and ownership of the Texas Star Golf Course. Expenses are dedicated to payment of annual debt service requirements. The Star Center Debt Fund is used to account for monthly lease payments on the Dr.Pepper Stars Center. Expenses are dedicated to annual debt service requirements. The EDC Debt Service Fund is used to account for pledged revenues, which includes the proceeds of a ½¢sales and use tax levied within the City. Expenses are dedicated to the sole benefit of the Euless Development Corporation obligations. This chart presents revenues and operating expenses, and use of reserves for all Debt Service Funds presented within the City of Euless' Annual Operating Budget. Debt Service funds are used to account for the repayment of General Obligation Bonds, Certificates of Obligation, Taxable Bonds, and Revenue Supported Bonds. These Bonds represent direct and special obligations of the City. The General Obligation Debt Service Fund is used to account for the collection of a continuing ad valorem tax levied by the City.Expenses are dedicated to the payment of principal and interest on General Obligation Bonds, General Obligation Refunding Bonds, and Certificates of Obligation. The Water &Wastewater Debt Service Fund is used to account for a pledge of the surplus net revenues of the City's Waterworks and Sewer System. Expenses are dedicated to payment of annual debt service requirements. 29 FY 16/17 FY 17/18 FY 17/18 FY 18/19 ACTUAL BUDGETED ESTIMATED BUDGETED CITY MANAGERS OFFICE 3.50 3.50 3.50 3.50 CITY SECRETARY 3.50 3.50 3.50 3.50 INFORMATION SERVICES 1.00 1.00 1.00 1.00 FACILITY MAINTENANCE 3.50 1 4.00 4.00 4.00 LIBRARY 9.00 9.00 9.00 9.00 Total City Administration 20.50 21.00 21.00 21.00 FINANCE/BUDGET 2.00 2.00 2.00 2.00 COURTS 7.75 7.75 7.75 7.75 ACCOUNTING 3.50 2 4.00 4.00 4.00 HUMAN RESOURCES 3.50 3.50 3.50 3.50 PURCHASING 1.00 1.00 1.00 1.00 Total Finance/HR Department 17.75 18.25 18.25 18.25 PD CODE 15.00 15.00 15.00 15.00 PD ADMINISTRATION 6.00 6.00 6.00 6.00 PD PATROL 44.00 1 45.00 45.00 45.00 PD INVESTIGATION 13.00 13.00 13.00 13.00 PD SERVICE 21.00 2 22.00 22.00 22.00 PD DETENTION 17.00 17.00 17.00 17.00 Total Police Department 116.00 118.00 118.00 118.00 FIRE MARSHAL 4.00 4.00 4.00 4.00 FD ADMINISTRATION 4.00 4.00 4.00 4.00 FD PARAMEDIC 67.00 67.00 67.00 67.00 Total Fire Department 75.00 75.00 75.00 75.00 PLANNING 3.00 1 2.50 2.50 2.50 INSPECTIONS SERVICES 4.00 4.00 4.00 4.00 Total Planning & Development 7.00 6.50 6.50 6.50 RECREATION 6.50 6.50 6.50 6.50 PARKS 11.00 11.00 11.00 11.00 SENIOR CENTER 2.00 2.00 2.00 2.00 RECREATION ADMINISTRATION 1.00 1.00 1.00 1.00 Total Community Services 20.50 20.50 20.50 20.50 STREET MAINTENANCE 10.50 10.50 10.50 A 11.50 ANIMAL CONTROL 3.00 3.00 3.00 3.00 CITY ENGINEER 0.50 3 1.00 1.00 1.00 Total Public Works 14.00 14.50 14.50 15.50 GF NON-DEPARTMENTAL 0.50 0.50 0.50 A 0.00 Total Non-departmental 0.50 0.50 0.50 0.00 TOTAL GENERAL FUND 271.25 274.25 274.25 274.75 EDC - PARKS 13.25 13.25 13.25 13.25 EDC - LIBRARY 10.00 10.00 10.00 10.00 EDC - ECO. DEV.1.00 1.00 1.00 1.00 TOTAL EDC FUND 24.25 24.25 24.25 24.25 WATER OFFICE 5.00 5.00 5.00 5.00 Total Finance 5.00 5.00 5.00 5.00 W&S ENGINEERING 2.50 3 3.00 3.00 3.00 WATER PRODUCTION 5.75 5.75 5.75 5.75 WATER DISTRIBUTION 7.25 7.25 7.25 7.25 SEWAGE & TREATMENT 7.00 7.00 7.00 7.00 METER READING 1.00 1.00 1.00 1.00 Total Public Works 23.50 24.00 24.00 24.00 INFORMATION SERVICES 4.00 4.00 4.00 4.00 W&S NON-DEPT.10.00 2 10.50 10.50 A 10.00 Total Non-departmental 14.00 14.50 14.50 14.00 TOTAL W&S FUND 42.50 43.50 43.50 43.00 GOLF NON DEPARTMENTAL 0.75 0.75 0.75 0.75 GOLF COURSE MAINT.4.00 4.00 4.00 4.00 GOLF PRO SHOP 2.50 2.50 2.50 2.50 GOLF FOOD AND BEVERAGE 3.00 3.00 3.00 3.00 GOLF CONFERENCE CENTRE 1.50 1.50 1.50 1.50 TOTAL GOLF COURSE FUND 11.75 11.75 11.75 11.75 JUVENILE CASE FUND 1.25 1.25 1.25 1.25 CRIME CONTROL FUND 19.00 19.00 19.00 19.00 PUBLIC SAFETY SPECIAL FUND 1.00 1 0.00 0.00 0.00 SERVICE CENTER FUND 5.00 5.00 5.00 5.00 DRAINAGE UTILITY FUND 7.00 2 8.00 8.00 8.00 TEXAS STAR SPORTS COMPLEX 1.50 1.50 1.50 1.50 HEALTH INSURANCE FUND 1.00 1.00 1.00 1.00 WC/RISK MANAGEMENT FUND 0.50 0.50 0.50 0.50 TOTAL OTHER FUNDS 36.25 36.25 36.25 36.25 TOTAL ALL FUNDS 386.00 390.00 390.00 390.00 1) Shifted position based on funding and job function. 2) Added 1 Accountant, 1 Dispatcher and 1 Field Technician. 3) Converted a part time position into a full time position. A) Added 1 PW Field Tech I, eliminated Director of Admin Services. Full-Time Personnel Counts 30 Description Date Issued Principal Amount Outstanding Amount of Original Issuance Paying Agent Remaining Interest Rate Maturity General Obligation Refunding Bonds, Series 2011 1/15/2011 2,460,000$ 6,575,000$ U.S. Bank 3.5% to 4%8/15/2021 General Obligation Refunding Bonds, Series 2012 12/1/2011 2,965,000$ 5,955,000$ U.S. Bank 3% to 4%2/15/2024 General Obligation Refunding Bonds, Series 2014 10/15/2014 1,810,000$ 5,685,000$ U.S. Bank 3%2/15/2020 Tax & Waterworks & Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 20111 1/15/2011 2,230,000$ 3,035,000$ U.S. Bank 3% to 4.25%8/15/2030 Tax & Waterworks & Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 20141 10/15/2014 5,265,000$ 5,715,000$ U.S. Bank 3% to 5%8/15/2034 Tax & Waterworks & Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 20151 10/27/2015 2,915,000$ 3,030,000$ U.S. Bank 3% to 5%2/15/2035 Tax & Waterworks & Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 20161 1/12/2016 16,070,000$ 16,450,000$ U.S. Bank 2% to 4%2/15/2041 Tax & Waterworks & Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 20185 3/1/2018 9,180,000$ 9,180,000$ U.S. Bank 3% to 4%2/15/2038 Taxable General Obligation Refunding Bonds, Series 20102 8/15/2010 4,225,000$ 8,110,000$ U.S. Bank 3.65% to 4.4%8/1/2025 General Obligation Refunding Bonds, Series 2012A3 11/1/2012 4,770,000$ 7,185,000$ U.S. Bank 2% to 3%2/15/2027 Waterworks & Sewer System Revenue Refunding Bonds, Series 20124 3/29/2012 1,315,000$ 3,340,000$ Bank of Texas 2.03%7/15/2024 Waterworks & Sewer System Revenue Bonds, Series 20134 6/25/2013 1,280,000$ 1,585,000$ U.S. Bank 3% to 5%7/15/2033 Waterworks & Sewer System Revenue Bonds, Series 2015A4 8/5/2015 4,025,000$ 4,685,000$ Texas Water Development Board 0% to 1.98%7/15/2035 Waterworks & Sewer System Revenue Bonds, Series 2015B4 8/5/2015 2,140,000$ 2,380,000$ Texas Water Development Board 0% to 1.68%7/15/2035 Waterworks & Sewer System Revenue Bonds, Series 20184 4/12/2018 2,785,000$ 2,785,000$ Texas Water Development Board 0% to 1.49%7/15/2038 Euless Development Corporation, Sales Tax Revenue Refunding Bonds, Series 2012 1/12/2012 40,000$ 3,785,000$ Bank of Texas 1.43%9/15/2019 Tax Anticipation Notes, Series 2016 8/30/2016 435,000$ 1,280,000$ Frost Bank 1.16%8/15/2019 Tax Anticipation Notes, Series 2017 9/12/2017 300,000$ 625,000$ First Nat'l Bank 1.17%8/15/2019 Cisco Capital Lease 10/31/2016 83,848$ 275,000$ De Lage Landen Public Finance, LLC 8.024% IRS Purposes 12/15/2019 Proposed Issuance Amount Proposed Sale Type Anticipated Payment Source Proposed Issuance Date Proposed Term 797,167$ Capital Lease Purchase General Fund Revenues October 2018 5 Year 1,680,320$ Competitive Sale 1/2 ¢ Sales Tax October 2018 20 Year 9,275,000$ Texas Water Development Board Water & Sewer System Revenues January 2019 30 Year 12,423,813$ Competitive Sale Property Tax March 2019 20 Year 1 Bonds paid by Tax Increment Financing District & Public Improvement District. 2 Bonds paid by rental income from Dallas Stars Center. 3 Remaining Bonds paid by Texas Star Golf Course. 4 Bonds paid by Water & Wastewater user charges. 5 Bonds partially paid by Tax Increment Financing District and Public Improvement District. * Depending on funding availability from Texas Water Development Board. Certificates of Obligation-FY 2019 Street Improvements Description Outstanding Indebtedness Proposed Indebtedness Waterworks & Sewer System Revenue Bonds* Euless Development Corporation, Sales Tax Revenue Bonds Integrated Camera/Taser System Capital Lease 31 Capital & Supplemental Requests 2019 by Fund *Fund subject to change. ^ Project contains both Capital and Supplemental Requests ~ Page numbers found in "Capital & Supplemental Requests" book for fiscal year 2018-2019 presented to Council June 11, 2018. ~ Ref #Dept Division *Fund Program Description Program Type Program Cost Totals Dept Ranking 1 Non-departmental Non-departmental General HOME/CPR Funding Capital 150,000$ 150,000$ 1 Yes No 2 Admin Svcs Human Resources General Career Prep Program Capital 15,000$ 165,000$ 1 Yes No 3 CMO Communications General Multi-Media Intern Capital 10,500$ 175,500$ 1 Yes No 4 Planning & Development Inspection Services General Third-Party Plan Review and Construction Inspection Capital 35,000$ 210,500$ 1 Yes No 5 Planning & Development Inspection Services General Scanning Service Capital 20,000$ 230,500$ 2 Yes No 10 Admin Svcs Information Svcs General Hardware/Software Replacement^Capital 10,000$ 240,500$ 2 Yes No 13 Admin Svcs Information Svcs General Laserfiche License Upgrade Capital 89,790$ 330,290$ 5 Yes No 16 PW Street Maintenance General Public Works Yard Reconstruction - Phases II and III Capital 220,000$ 550,290$ 2 Yes No 20 Fire EMS/Suppression General Exercise Equipment Replacement Capital 3,000$ 553,290$ 3 Yes No 21 Fire Fire Marshal General Part-time Fire Inspectors Capital 23,400$ 576,690$ 2 Yes No 23 Fleet & Fac Fac Maintenance General HVAC Repairs and Upgrades - Police and Courts Capital 370,000$ 946,690$ 2 Yes No 24 Fleet & Fac Fac Maintenance General MagnaGrip System Additions Capital 21,000$ 967,690$ 3 Yes No 26 Fleet & Fac Fac Maintenance General Window Treatment Replacement - Building D Capital 6,200$ 973,890$ 5 Yes No 29 PD Administration General Brazos Ticket Writer Replacement Capital 67,043$ 1,040,933$ 1 Yes No 34 PD Administration General Furniture Replacement Capital 11,500$ 1,052,433$ 6 Yes No 41 PACS Recreation General Floor Replacement - Recreation Center Capital 95,400$ 1,147,833$ 1 Yes No 42 PACS Aquatics General Aquatic Park Slide Resurfacing Capital 15,000$ 1,162,833$ 2 Yes No 44 PACS Recreation General Locker Room Upgrade Capital 12,000$ 1,174,833$ 4 Yes No 47 PACS Aquatics General Umbrella Fabric Replacement Capital 15,000$ 1,189,833$ 7 Yes No 48 PACS Recreation General Lobby Furniture Replacement - Recreation Center Capital 29,500$ 1,219,333$ 8 Yes No 49 PACS Parks General Coverworx Shelter - Bob Eden Park Capital 25,000$ 1,244,333$ 9 Yes No 50 PACS Senior Center General Treadmill Replacement Capital 23,175$ 1,267,508$ 10 Yes No Non-departmental Non-departmental General Transfer to Misc Street Repairs Capital 75,000$ 1,342,508$ Yes No Non-departmental Non-departmental General Transfer to Misc Screening Wall Repair Capital 25,000$ 1,367,508$ Yes No Non-departmental Non-departmental General Transfer to General Emergency Contingency Reserve Capital 500,000$ 1,867,508$ Yes No 18 Fire EMS/Suppression General Firefighters/Paramedics (3)^Capital 12,600$ 1,880,108$ 1 Yes No 19 Fire Fire Marshal General Audio/Visual System Replacement Capital 4,220$ 1,884,328$ 2 Yes No 38 PD Patrol General Equipment for New Patrol Officer^Capital 12,500$ 1,896,828$ 10 Yes No 39 PD Code Compliance General Truck for New Code Officer^Capital 29,000$ 1,925,828$ 11 Yes No 10 Admin Svcs Information Svcs General Hardware/Software Replacement^Supplemental 277,000$ 277,000$ 2 Yes No 11 Admin Svcs Courts General Court Technology Supplemental 45,000$ 322,000$ 3 Yes No 40 PD Administration General Integrated Camera/Taser System Supplemental 56,279$ 378,279$ 1 Yes No 22 Fleet & Fac Fac Maintenance General HVAC System Improvements Supplemental 35,000$ 413,279$ 1 Yes No 53 PACS Parks General Tree Trimming Services Supplemental 7,500$ 420,779$ 13 Yes No 17 PW Streets General Field Tech 1 Supplemental 66,455$ 487,234$ 1 Yes No PW Streets General Transfer to FY2019 Street Improvements Supplemental 425,000$ 912,234$ Yes No 18 Fire EMS/Suppression General Firefighters/Paramedics (3)^Supplemental 321,018$ 1,233,252$ 1 Yes No 38 PD Patrol General Patrol Officer^Supplemental 65,081$ 1,298,333$ 2 Yes No 39 PD Code Compliance General Code Officer^Supplemental 91,007$ 1,389,340$ 3 Yes No Funded 32 Capital & Supplemental Requests 2019 by Fund *Fund subject to change. ^ Project contains both Capital and Supplemental Requests ~ Page numbers found in "Capital & Supplemental Requests" book for fiscal year 2018-2019 presented to Council June 11, 2018. ~ Ref #Dept Division *Fund Program Description Program Type Program Cost Totals Dept Ranking Funded Non-departmental Non-departmental General CIP Lease for Integrated Camera/Taser System Capital 797,167$ 797,167$ Yes No 7 Admin Svcs Library EDC Audio/Visual Equipment Capital 150,000$ 150,000$ 1 Yes No 8 Admin Svcs Library EDC Security Cameras Capital 20,000$ 170,000$ 2 Yes No 14 Admin Svcs Information Svcs EDC RecTrac On-site Upgrade Capital 15,000$ 185,000$ 6 Yes No 43 PACS Parks EDC Toro Reel Mower Capital 60,000$ 245,000$ 3 Yes No 45 PACS Parks EDC Toro Multi Pro Boom Sprayer Capital 36,200$ 281,200$ 5 Yes No 46 PACS Parks EDC Brush and Debris Equipment Capital 7,300$ 288,500$ 6 Yes No 51 PACS Parks EDC Chemical Sprayer Capital 7,759$ 296,259$ 11 Yes No 52 PACS Parks EDC Box Blade Attachment Capital 3,800$ 300,059$ 12 Yes No 54 PACS Parks EDC Soil Batch Mixer Capital 10,000$ 310,059$ 14 Yes No Non-departmental Non-departmental EDC Transfer to EDC CIP for Library Remodel Capital 550,000$ 860,059$ Yes No Non-departmental Non-departmental EDC Transfer to EDC CIP for TSSC Phase VII Design Capital 150,000$ 1,010,059$ Yes No Non-departmental Non-departmental EDC Transfer to EDC CIP for Misc Park Improvements Capital 90,000$ 1,100,059$ Yes No Non-departmental Non-departmental EDC Transfer to EDC CIP for Contingency Capital 7,493$ 1,107,552$ Yes No 30 PD Administration CCPD Incident Management Software Capital 15,500$ 15,500$ 2 Yes No 31 PD Administration CCPD Laserfiche Repository and Licenses Capital 20,000$ 35,500$ 3 Yes No 32 PD Administration CCPD Crime Scene Cameras Capital 4,500$ 40,000$ 4 Yes No 33 PD Administration CCPD Wide Format Laminator Capital 3,000$ 43,000$ 5 Yes No 35 PD Administration CCPD Emergency Operations Center Command Console Capital 8,920$ 51,920$ 7 Yes No 36 PD Administration CCPD Drug Detection System Capital 24,050$ 75,970$ 8 Yes No 37 PD Administration CCPD Drone Program Capital 20,000$ 95,970$ 9 Yes No 15 PW Water Distribution W/WW Enclosed Cab Backhoe Capital 125,000$ 125,000$ 1 Yes No Non-departmental Non-departmental W/WW Transfer to Misc Wastewater Rehab Capital 25,000$ 150,000$ Yes No Non-departmental Non-departmental W/WW Transfer to Misc Valve Replacement Capital 125,000$ 275,000$ Yes No Non-departmental Non-departmental Car Rental Transfer to Car Rental CIP for Library Construction Capital 2,964,900$ 2,964,900$ Yes No Non-departmental Non-departmental Car Rental Transfer to Redevelopment Fund Capital 500,000$ 3,464,900$ Yes No Non-departmental Non-departmental Car Rental CIP Library Construction (From FB9918)Capital 1,595,100$ 1,595,100$ Yes No Non-departmental Non-departmental Drainage Transfer to Misc Drainage Improvements Capital 80,000$ 80,000$ Yes No33 Capital & Supplemental Requests 2019 by Fund *Fund subject to change. ^ Project contains both Capital and Supplemental Requests ~ Page numbers found in "Capital & Supplemental Requests" book for fiscal year 2018-2019 presented to Council June 11, 2018. ~ Ref #Dept Division *Fund Program Description Program Type Program Cost Totals Dept Ranking Funded 58 PACS PATS Athletic Complex Champion Wall Outfield Fence Capital 53,200$ 53,200$ 1 Yes No 59 PACS PATS Athletic Complex Netting and Turf Replacement Capital 15,366$ 68,566$ 2 Yes No 6 Planning & Development Development Hotel/Motel Wayfinding Program Phase II Capital 75,000$ 75,000$ 3 Yes No 55 PACS Recreation Rec Class Fitness Equipment Replacement Capital 25,800$ 25,800$ 1 Yes No 56 PACS Recreation Rec Class Fitness Center Desk Remodel Capital 11,040$ 36,840$ 2 Yes No 57 PACS Recreation Rec Class Playbook Printing and Mailing Capital 47,000$ 83,840$ 3 Yes No 12 Admin Svcs Information Svcs Risk Security Initiative Capital 9,000$ 9,000$ 4 Yes No 25 Fleet & Fac Fac Maintenance Risk Roof Restoration - Building B Capital 94,000$ 103,000$ 4 Yes No Non-departmental Non-departmental Risk Transfer to ADA/TAS Facility Improvements Capital 25,000$ 128,000$ Yes No 27 Fleet & Fac Fleet Svcs Svc Center Fence, Gate and Miscellaneous Enhancements Capital 35,000$ 35,000$ 1 Yes No 28 Fleet & Fac Fleet Svcs Svc Center Shop Heater Replacement and Enhancements Capital 21,500$ 56,500$ 2 Yes No Non-departmental Non-departmental TSGC Reserve Transfer to TSGC CIP Capital 115,000$ 115,000$ Yes No Non-departmental Non-departmental WT Impact Transfer to Water Tank Debt Capital 255,674$ 255,674$ Yes No Non-departmental Non-departmental WT Impact Transfer to Reclaimed Debt Capital 119,744$ 375,418$ Yes No Non-departmental Non-departmental W/WW Rate Stabilization Transfer to W/WW Debt Reserve Capital 450,000$ 450,000$ Yes No 34                       35 Introduction 36 Welcome to a Look at The City of Euless, Texas GEOGRAPHY The City of Euless is located in North Central Texas in Northeast Tarrant County approximately 16 miles west of Dallas and 16 miles east of Fort Worth. The City is located on Texas Highway 183, a six-lane expressway with two managed lanes linking Dallas to Fort Worth. Other major highways through the City include State Highway 121, State Highway 360, State Highway 10 and Farm-to- Market Road 157. Euless’ centralized location provides quick access to both Dallas and Fort Worth metropolitan areas and is adjacent to Dallas-Fort Worth (DFW) International Airport in east Tarrant County, one of the world’s busiest airports. The City has a total land area of 16.2 square miles or 10,379.5 acres, which has been recently updated for right-of-way and boundary adjustments. Of the 10,379.5 acres, 3,219.5 acres are located within DFW Airport and the remaining 7,160 acres outside the airport boundaries. Current development statistics estimate that Euless has approximately 552.1 acres of undeveloped land remaining outside the airport. HISTORY Euless was first settled in 1867 and named after the Elisha Adams Euless family. The family settled here with many of their Tennessee neighbors. Mr. Euless served two terms as Tarrant County sheriff in the 1890's. The City of Euless was incorporated on February 24, 1953 with a total population of less than 4,200. The community experienced a growth surge in the 1970’s with the completion of DFW Airport in 1974. The 1980 census reported the population of Euless as 24,002. The 2010 Census Population Count was 51,277. Current population figures for Euless total 55,170. FORM OF GOVERNMENT Euless now operates under a Home Rule Charter adopted on July 21, 1962, which provides for a council-manager form of government. The Mayor and six Council members are elected at-large. The Council is responsible for all matters of policy and is also the authority for levying taxes, securing revenues, authorizing expenditures of City funds, and incurring City debt. The City Manager is directly responsible to the City Council, and the management of the City’s departments. 37 An organizational chart is included in the Introduction Section of the budget. In addition, several boards and commissions were created to assist the City Council in deciding matters of policy and procedures and meet on various issues throughout the year. DEMOGRAPHICS Euless’ close proximity to DFW Airport has made the City a major commercial-industrial center for the Northeast Tarrant County area. In recent years, new retail development has added a number of quality shopping centers which provide residents with a variety of goods and services to choose from. This diversified business community provides substantial property tax revenues and sales tax revenues to the City. The City collects 2% of sales and use receipts from businesses within the City. Of 15,520 non-mineral lease property accounts in the City, 13,089 are residential accounts. The top ten taxpayers listed in the following table are found in the remaining 2,431 commercial and industrial accounts. Over the past year, taxable property values increased over $414 million dollars from $4,001,295,340 to $4,415,713,775, a 10.3% increase due to an increase in both residential and commercial property values. Ten Largest Property Taxpayers Population with a median age of 34.9 years (U.S. Census Bureau American Fact Finder 2016) has increased from 54,200 to 55,170 in ten years. The City’s median household income is $58,606, which compares favorably to $54,727 for the State of Texas (U.S. Census Bureau American Fact Finder 2016). The educational level is 89.5% high school graduate or higher (U.S. Census Bureau American Fact Finder 2016). Name of Taxpayer Nature of Property 2018-19 Taxable Assessed Valuation % of Total Taxable Assessed Valuation Star Monticello LLC/Star Kensington LLC Apartments $100,900,000 2.29% EAN Holdings LLC Car Rental $89,401,459 2.02% Westdale Hills 2013 LP Apartments $83,608,284 1.89% Brazos TX Partners LLC Apartments $75,060,000 1.70% WOP Mandolin LLC Apartments $73,900,000 1.67% Stoneleigh at Bear Creek Apt. Apartments $65,895,000 1.49% CMF 15 Portfolio LLC Apartments $61,200,000 1.39% Bedrock Holdings II (Dallas) LLC Apartments $58,950,000 1.34% Avenue 900 Holdings LLC Apartments $52,590,662 1.19% Avis Rent a Car System LLC/Budget Car Rental Car Rental $48,915,653 1.11% $710,421,058 16.09% 38 COMMUNITY INFORMATION Being centrally located, the Hurst-Euless-Bedford area (also known as the Mid-Cities) can tap into the abundant cultural, sports, and recreational amenities that Dallas and Fort Worth offer. Citizens of Euless can access some of the Nation’s finest museums, zoos, symphonies, ballets, and operas. In addition, amusement facilities such as Six Flags over Texas, Six Flags Hurricane Harbor Water Park, and Fort Worth’s historic stockyards are all within a short driving distance. For the avid sports enthusiast, both amateur and professional sporting activities are available year- round. Professional sports teams, including the Dallas Cowboys, Texas Rangers, Dallas Mavericks, Dallas Stars, and FC Dallas plays all of their home games within a 20-30 minute drive from Euless. In the spring and summer months, citizens can catch a minor league baseball game featuring the Fort Worth Cats, the Frisco Rough Riders, or the Grand Prairie Air Hogs. Or, if hockey is preferred, one can take in an exciting minor league hockey game featuring the Fort Worth Brahmas. For the racing fans, the fastest and loudest sporting facility in the DFW metroplex is Texas Motor Speedway where top names in both NASCAR and Indy Car racing compete. Collegiate sports are also available through a local university network, which includes Southern Methodist University, Texas Christian University, the University of North Texas, the University of Texas at Arlington, and Texas Wesleyan University. The City is serviced by several medical facilities which are recognized among the best in the DFW metroplex. Texas Health Resources Harris Methodist H-E-B Hospital (Harris H-E-B) is fully equipped with state-of-the-art technology to meet today’s medical needs. The hospital offers patients a full range of health services in completely modern facilities and has access to CareFlite airborne ambulance to provide quick transport in the most immediate emergencies. In addition to acute care services, Harris H-E-B offers comprehensive programs for the treatment of alcoholism, chemical dependencies, and psychiatric care. The Edwards Cancer Center, located on the hospital campus, offers radiation therapy and a full range of comprehensive cancer care. The City is tied directly into the Tarrant County 9-1-1 emergency response system and provides advanced life support ambulance service through the Euless Fire Department. Educational facilities within the City are provided by the Hurst-Euless-Bedford (HEB) and Grapevine-Colleyville Independent School Districts (ISD). The HEB ISD consists of twenty 39 elementary schools, five junior high schools, two high schools, and three non-traditional campuses with total enrollment topping 23,578 students. Of these facilities, six elementary schools, two junior highs, one high school, and one non-traditional campus are located in the City of Euless. The Grapevine-Colleyville ISD has one elementary school located in northern Euless. HEB ISD’s implemented Continuous Improvement (CI) as a core district philosophy. This CI model makes HEB ISD more efficient and effective in its efforts to provide a quality education for all students. Using the CI model means aligning efforts at the district, department, campus, teacher, and ultimately, the student level. Everyone must work together to prepare each student for the future. The commitment to quality learning also extends to higher education. The Tarrant County College (TCC) offers a wide range of curriculum in occupational, basic studies, and continuing education courses. The College is one of the 20 largest higher education institutions in the United States. Numerous two-year degree plans are available and a majority of the courses offered may be transferred to four-year universities. Financial assistance is available to everyone, and counselors are available to answer any questions a student may have. The college is fully accredited by the Southern Association of Colleges and Schools Commission on Colleges to award an associate’s degree. The City of Euless provides many facilities and services to its Citizens including seventeen parks totaling 345 acres, 4.35 miles of paved trails, 2.75 miles of unpaved trails, four tennis courts, an aquatics park with numerous outdoor and indoor features, one outdoor swimming pool, four sand volleyball courts, 15 playgrounds, a splash pad, two fishing piers, six pavilions, four gazebos, three amphitheaters, a Conference Centre, Golf Course, youth and adult sports complex, and an ice hockey facility. Indoor recreational facilities include a 35,000 square foot recreation center with a 5,000 square foot fitness center, a 35,000 square foot senior center, over 12,000 square feet of rental facilities, an almost 2,000 square foot museum, and a 1,500 square foot log house. The City has three fire stations serviced by 73 certified firefighters and one police station serviced by 91 certified officers. The City also maintains a full service library with over 80,000 materials. Current bond ratings for the City's General Obligation Bonds are "AA" from Standard & Poor’s and "Aa2" from Moody's. The City’s website (www.eulesstx.gov) allows citizens to access vital information and services 24 hours a day, 7 days a week. Interactive functions include the City’s mapping system, subscription to emergency mobile e-mail and text alerts, and subscription to MyEuless which includes construction updates, community news, employment opportunities, library events, Texas Star events, and recreation classes offered. Utility customers also have the ability to view their water usage on an hourly consumption basis and even get contacted when consumption reaches a predetermined amount. There are many other features that appeal to visitors, businesses, and residents including online forms and payment options, financial information, and events calendar. 40 To provide our citizens the most efficient services possible that protect and enhance the quality of life, through planning and visionary leadership. Mission of The City of Eules s 41 FISCAL YEAR 2018-19 GOALS MATRIX Superior Customer ServiceFiscally ResponsibleSafety And SecurityDiversified Business ClimateQuality InfrastructureAttract VisitorsQuality Leisure OpportunitiesPreserve Positive City ImageAdministration Facilities Library Fiscal Services Police Fire Development Parks & Community Services Public Works Water Department Recreation Arbor Daze Texas Star Sports Complex Texas Star Golf Course Hotel / Motel Economic Development Note: Department goals that align with City goals are highlighted in blue in the matrix above. 42 The City will provide excellent and efficient service to our citizens. Assure courteous, effective, and efficient service to both external and internal customers. Pursue technological updates that will enhance customer service. Structure departmental operations to ensure rapid response and resolution to customer complaints. The City will maintain a solid financial position while minimizing the impact on Euless citizens. Explore new and innovative revenue sources. Promote and utilize Euless businesses whenever possible when making municipal purchases. Adopt the city budget in context of the multi-year financial plan which emphasizes funding of capital projects through operating revenues rather than issuing debt. Maintain reserves levels as provided for in the City’s fiscal policy. Retain high bond rating and financial reputation. Provide Quality Public Safety and Health Services to the community. Promote proactive neighborhood-based crime watch. Promote high visibility and community involvement for public safety employees. Support strict health and code enforcement. Uphold commitment to environmental programs. Explore and develop programs to reduce crime. Maintain excellent reputation in police and fire services. Provide quality emergency medical services to our citizens. Promote investment in the community through new development and redevelopment opportunities for a diversified business climate. Enhance communication between the City and the business community. Pursue economic development through the use of innovation programs that seeks to emphasize retention and expansion of existing businesses. Promote the City’s premier locations as a key element to the City’s image and success. Promote existing and new businesses within the City. Employ high-quality, professional, service- oriented personnel. Promote educational standards and re-education opportunities. Cultivate future leaders. Maintain a work force of highly qualified, friendly, and professional employees. Provide competitive salary and benefit packages to retain a motivated work force. Maintain quality infrastructure improvements to allow our City to thrive. Maintain Euless’ street system to effectively accommodate vehicular traffic while protecting the integrity of attractive median and right-of- way landscaping. Aggressively pursue infrastructure improvements in conjunction with the Capital Improvements Program using a pay as you go system when possible. Enhance pedestrian-oriented means of travel throughout Euless to enhance public safety. Provide quality leisure activities and events for the community. Continue to provide a wide variety of educational and recreational classes and activities to all ages at a reasonable cost through the Library and the Park and Recreation department. Continue to provide recreational sports options for youth and adults in our community. Provide activities and social outings for senior residents. Provide events that encourage community engagement. Promote a culture that instills a “sense of community, builds confidence and promotes harmony.” Build a sense of community through activities including Citizens Police and Fire Academies, Town Hall meetings, Neighborhood meetings, and apartment managers meetings. Work to find new avenues to involve more residents in the civic process and to serve on boards and commissions with the hope of developing leadership from a diversified section of the community. Promote community partnerships with neighboring cities, HEB ISD, non-profit agencies, and DFW Airport. Goals & Objectives 43 THE CITY OF EULESS has achieved many accomplishments that illustrate the quality of life for our City, as well as the level of teamwork. Among the accomplishments are: THE CITY COUNCIL held the ad valorem tax rate at $0.4625. They held various meetings including town hall meetings, budget meetings, neighborhood meetings, the Tongan Community Committee meetings, and Nepali community meetings to provide open dialogue between residents, elected officials, and staff. Coffee with a Cop and open houses at the Police Department and Fire Department were also hosted. THE CITY MANAGER’S OFFICE provided support to the departments to allow them to accomplish their goals and objectives in support of the overall vision established by the City Council. This was accomplished by providing the necessary resources while maintaining a stable and conservative tax rate and strong financial position. Through community partnerships, the City was able to offer or participate in even more activities and events to meet the various needs within the community and to provide more recreational and leisure opportunities for our citizens. By promoting a business friendly environment, the City was able to continue near record growth in both commercial and residential development. THE CITY MANAGER’S COMMUNICATIONS OFFICE provides information and education to our residents in order to keep them informed, engaged, and improve community relations. This includes a monthly Euless Today newsletter and regular updates on the website and cable channel. In addition, they send subscription-based e- mails as well as oversee a variety of social media channels including Facebook, Twitter, and NextDoor. They produce several videos throughout the year touting the progression of the Euless Parks Department, National Night Out, recruitment for the Police Department, and Master Composter Certification. They also play a major role in working with the media both proactively and during crisis and recently received an Advanced Media Relations certification. They also work on several marketing campaigns throughout the year with groups such as Safe Kids Tarrant County, the Euless Small Business Association, and It's Time Texas. THE CITY SECRETARY’S OFFICE coordinated appointments to the City’s Boards and Commissions and maintained all City ordinances, resolutions, and records retention including the continuation of a records web portal to allow access to city records via the city’s website. A City Council election was also held and they processed all requests for open records within State statute requirements. THE PARKS DEPARTMENT received the distinction as Tree City USA from the National Arbor Day Foundation for the 32nd consecutive year. Only 5 other cities in Texas have received this award more times than Euless. THE COMMUNITY SERVICES DEPARTMENT increased participation in classes offered, increased aquatic class participation, increased aquatic programming, and increased overall visits in the indoor to over 12,000 in 2018. Senior center attendance surpassed 45,000 and the Recreation Center surpassed 119,000 visits for 2018. THE TEXAS STAR SPORTS COMPLEX increased overall league and tournament participation between the two facilities. THE POLICE DEPARTMENT replaced the 15-year-old rifles in the department. The promotion of three personnel to Lieutenant, four Sergeants, and four Senior Corporals has provided continued exceptional leadership for the future of the organization. The Department invested in building infrastructure to protect equipment and information systems such as additional air conditioning for the computer server rooms, covered parking for trailers, evidence locker replacement and a new blood bank refrigerator. The Department focused on training, invested in a training simulator, and constructed a room to provide additional in-house training for Officers. The Department emphasized collaborating with all schools in the City of Euless and worked to build relationships with each campus administration, faculty, and students. The Department partnered with the schools, businesses, and faith-based communities to deliver the Citizens Response to Active Shooter Events training to increase preparedness for the whole-community. THE FACILITY MAINTENACE OPERATION completed numerous facility improvements including carpet, lighting, and roof replacements and jail upgrades. Completed the planning and the bid phases of the library remodel. THE FLEET OPERATION received the Automotive Service Excellence (ASE) “Blue Shield of Excellence” award for the 23rd consecutive year. The City was recognized by North Central Texas Council of Governments (NCTCOG) as a leader in emission reduction in North Central Texas for the fourth year by obtaining “Silver” status. Upgraded the fleet refueling system to WI-FI controls and now have an on-line training program for technicians. 44 THE MUNICIPAL COURT includes the administration and operations of the Euless Municipal Court of Record with the Court having jurisdiction over traffic offenses, commercial vehicle violations, city ordinance violations, and other Class C misdemeanors committed within the city limits. Court staff is responsible for the processing, documentation, and maintenance of the information system for all cases filed. The Court and it officers continue to implement legislative changes affecting the adjudication procedures and processing of cases filed. THE EULESS PUBLIC LIBRARY received the Achievement in Excellence in Libraries Award from the Texas Municipal Library Director’s Association for the thirteenth consecutive year. The Library moved into a temporary space at 1100 Westpark and revamped services in order to continue offering high-quality educational and recreational books, media, and classes for all ages during the remodeling of the building, which begins in fiscal year 2019. THE INFORMATION SERVICES DEPARTMENT completed all hardware and software upgrades planned for the fiscal year. New desktop and mobile computer replacements proceeded as planned and continued to follow standard practices. The existing Microsoft Enterprise Agreement was modified to include a migration strategy to Office 365 and other cloud-based services. This will provide a pathway going forward to migrate services such as e-mail, file storage, and collaboration tools from on premise equipment to cloud services. Multiple projects were planned and started to convert paper-based processes to electronic workflow processes. These electronic document workflows will allow forms that require signatures from multiple city departments to be processed through a web browser instead of using standard interoffice mail. Additionally, several substantial network equipment and security upgrades were performed over the course of the year, which increased the performance and resilience of the city data network, as well as internal data center communications. These upgrades were necessary to meet growing demands placed on the data network. THE FIRE DEPARTMENT maintained its Community Protection Class #1 rating through the Insurance Service Organization (ISO). The City is one of 305 municipalities in the United States, receiving the highest rating possible, Insurance Services Office (ISO) Class 1, according to the latest ISO report. The Operations Division completed in excess of 16,000 training hours in 2018 including Live Fire, EMS, Hazardous Materials, Swift Water Rescue, and active shooter exercises. In addition, department members completed 443 fire inspections, tested 1,537 hydrants and completed dozens of pre-fire plans. The department continued to stay very involved in the community through fire prevention events, Community Emergency Response (CERT) training, Citizen’s Fire Academy classes, home revitalization program, and residential smoke alarm installations. The Department continued to be active at the state level and a leader at the regional and local level through participation in various regional committees, county work groups, NEFDA, Tarrant County College Regional Fire Academy, and the Texas Commission on Fire Protection. The Fire Marshal’s Office continued to review plans for each new construction project in the City to begin the lifelong process of fire prevention inspections and activities necessary to keep the public safe and reduce fire risk in the community. Eighteen citizens attended Class #25 of the Citizens Fire Academy learning more about the fire department and an additional eighteen citizens attended the Community Emergency Response Team training class learning how to prepare their families for a natural disaster. Additional quarterly training for active CERT members helped prepare volunteers to work alongside fire responders during large-scale emergencies. Numerous public education programs throughout the year targeted citizens of all ages and all walks of lives, from introducing younger citizens to possible careers in the fire service through the Junior Fire Academy to reaching out to the older population with smoke alarm installs and fire extinguisher training classes. The department participated in numerous community events including the HEB Reads Program, 6Stones Operation Back2School , and Trunk or Treat. They continue to explore new opportunities to engage our citizens through special events, social media, public safety videos and other avenues while still focusing on core fire safety prevention programs such as annual business inspections and apartment smoke alarm inspections. THE HUMAN RESOURCES DEPARTMENT provided recruitment and testing services for all employment candidates, maintained compliance with internal compensation and benefits programs, provided orientation programs for new employees, and assisted the Fire and Police Departments with promotional testing. The department managed all liability claims and ongoing safety programs for employees, administered employee benefit programs, and responded to all employee relations/Civil Service issues. THE PUBLIC WORKS AND ENGINEERING DEPARTMENT continued the general maintenance and repair of the city’s infrastructure which includes streets, sidewalks, storm drainage system, water and sewer systems, traffic 45 signals and the reclaimed water system. Engineering staff completed the design and contract management of several city projects and also conducted reviews and inspection on all citywide development projects. Animal Shelter staff continues its great relationship with the Girls Awareness Program (GAP) organization. THE FINANCE DEPARTMENT received the Distinguished Budget Award for the 27th consecutive year for the Fiscal Year 2018 Budget and the 31st consecutive Certificate of Excellence in Financial Reporting for the fiscal year 2017 Comprehensive Annual Financial Report (CAFR) from the Government Finance Officers Association of the US and Canada. In addition, the department issued revenue bonds and certificates of obligation and managed a multi- million dollar investment portfolio. THE GEOGRAPHIC INFORMATION SYSTEMS DEPARTMENT (GIS) began the transition to the new “next generation” of GIS software – currently at about 25% completion. The transition will continue over the next year as new capabilities are added to the software to accommodate needs and requirements. In addition, standard GIS related projects were completed to support Public Works, Engineering, Planning and Development, Emergency Services, and assist in annual projects such as the ADA compliance plan and the water/wastewater/storm water accreditation reports. THE PURCHASING DEPARTMENT held three online auctions during the year for proper disposal of assets. They continued to expand the procurement card program throughout the City alleviating some of the workload required for small dollar purchases and assisted departments with purchasing guidelines and state law compliance. THE PLANNING AND DEVELOPMENT DEPARTMENT successfully facilitated the construction of various commercial and residential projects throughout the community. Positive commercial growth continues within the Glade Parks Mixed-Use development. Five (5) buildings totaling almost 114,500 square feet will be new locations for eleven businesses. In the industrially zoned areas, five (5) businesses involved in manufacturing, wholesale distribution, warehousing, and commercial contracting constructed or renovated six (6) buildings that totaled approximately 115,000 square feet. Modest residential development continues. At the beginning of the fiscal year 2018, there were eight (8) active subdivisions totaling 720 platted lots with 293 lots available for development. Two (2) new hotel developments were approved that include the 173 room dual branded Home2Suites/TRU and the 95 room Comfort Inn and Suites. Including the ALOFT and La Quinta Del Sol projects, four (4) new hotels under construction that will add 483 rooms to the city. Construction has been completed or continues on several major developments and transportation projects that has established strong development momentum south of Airport Freeway. These projects include: a mixed-use development called Founder’s Parc consisting of Commercial Retail, Single Family Residential, and Urban Lofts. Development of the 259 lot single family residential has begun. The 120-unit Senior Housing project was completed, as well as development beginning on a 44-lot single-family subdivision south of S.H. 10 between Cullum Drive and Dickey Drive. The Texas Department of Transportation completed construction of Airport Freeway from FM 157 east through Euless. This included reconstruction of existing lanes and the addition of two managed lanes. Three (3) intersections along S.H. 183 will be improved at Main St., Ector Drive, and FM 157 with signage, landscaping, lighting, and new/enhanced bridge abutments. THE INSPECTION SERVICES DEPARTMENT completed over 10,000 inspections related to the 214 new residential building permits, 99 residential addition/alteration permits, 246 residential fence permits, 32 new commercial permits, and 115 certificates of occupancy. The department also assisted in numerous development site plan reviews. They continue to work with the code compliance division placing emphasis on voluntary compliance, on-site visits, door hangers, notices of violation, citations, and appearances in municipal court. THE UTILITY BILLING DEPARTMENT set-up 2,170 new accounts, generated 11,029 service calls, continued training customers and staff on the new automated metering system and on-line customer portal that aids customers in monitoring their water consumption. THE TEXAS STAR GOLF COURSE was listed by the PGA, Golf Week and Golf Digest as one of the top places to play in Texas. Dallas Morning News and Avid Golfer list Texas Star as one of the Top Ranked Public Golf Courses in the Metroplex. The Texas Star uses their website and new mobile App as the main avenues to place online tee times. The professional golf staff participated for the third year in the PGA Jr League; their youth participation continues to grow from the prior years. After the fourth year of growth, the Mini Verde Greens continued to perform well, providing consistent well-groomed conditions from the tee to the green throughout the year. 46 Residential Monthly Service Charges Water Wastewater Trash Drainage Recycling FY19 Prop $12.50 Base Tiered Rates/tgals 0-2 tgals - $3.88 3-8 tgals - $4.81 9-15 tgals - $5.38 16-35 tgals - $5.91 Over 35 tgals - $6.51 $10.75+90% of metered water usage @ $4.27 per tgals. $9.83** $2.75 **$1.39 per home $2.95 per home-cart $1.06 per apt. unit $.69 for Seniors $2.25 for Seniors home- cart FY18 $11.75 Base Tiered Rates/tgals 0-2 tgals - $3.58 3-8 tgals - $4.51 9-15 tgals - $5.08 16-35 tgals - $5.61 Over 35 tgals - $6.21 $10.50+90% of metered water usage @ $3.98 per tgals. $9.54 $2.75 $1.34 per home $2.85 per home-cart $1.05 per apt. unit $.67 for Seniors $2.18 for Seniors home- cart FY17 $10.75 Base Tiered Rates/tgals 0-2 tgals - $3.44 3-8 tgals - $4.37 9-15 tgals - $4.94 16-35 tgals - $5.47 Over 35 tgals - $6.07 $9.50+90% of metered water usage @ $3.72 per tgals. $9.26 $2.50 $1.30 per home $2.76 per home-cart $1.01 per apt. unit $.65 for Seniors $2.11 for Seniors home- cart **Effective for customer billings beginning April 1, 2019 through March 31, 2020. General Fund Key Fiscal Points Proposed FY19 % Change Budget FY18 % Change Actual FY17 Operating Expenses $42,104,564 2.15% $41,217,125 8.5% $37,982,210 Capital Expenses $ 2,494,858 -9.25%$ 2,750,528 112% $ 1,296,054 Tax Rate .462500 per $100 Debt = .09079 M&O = .37171 0%.462500 per $100 Debt = .101444 M&O = .361056 0% .462500 per $100 Debt = .099447 M&O = .363053 Taxable Valuation* $4,415,713,775 10.4% $4,001,295,340 12.6% $3,553,921,930 Debt Rating: Moody’s S & P G.O. = Aa2 W&S = Aa2 Drainage = A1 Sales Tax = A1 G.O. = AA W&S=AA+ Drainage = AA+ G.O. = Aa2 W&S = Aa2 Drainage = A1 Sales Tax = A1 G.O. = AA W&S=AA+ Drainage = AA+ G.O. = Aa2 W&S = Aa2 Drainage = A1 Sales Tax = A1 G.O. = AA W&S=AA+ Drainage = AA+ *Includes minimum taxable value of properties under protest and estimate of incomplete properties. 47 48 BUDGET PROCESS DEFINITION AND AUTHORITY The budget is a financial plan for a specific fiscal year that contains both the estimated revenues to be received during the year and the proposed expenditures to be incurred to achieve stated objectives. The City Charter established the City of Euless’ fiscal year as October 1 through September 30. The City Charter further states: The City Manager, prior to August first of each year, shall prepare and submit the budget, covering the next fiscal year, to the City Council, which shall contain the following information. In preparing the budget, each employee, officer, board, and department shall assist the city manager by furnishing all necessary information. (1) The city manager’s budget message shall outline the proposed financial policies for the next fiscal year with explanations of any changes from previous years in expenditures and any major changes of policy and a complete statement regarding the financial condition of the City. (2) An estimate of all revenue from taxes and other sources, including the present tax structure rates and property evaluation for the ensuing year. (3) A carefully itemized list of proposed expenses by office, department, agency, employee, and project for the budget year, as compared to actual expenses of the last ended fiscal year, and the present year to date. (4) A description of all outstanding bond indebtedness, showing amount, purchaser, date of issue, rate of interest, and maturity date, as well as any other indebtedness which the City had incurred and which has not been paid. (5) A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing. (6) A list of capital projects which should be undertaken within the five (5) next succeeding years. PUBLIC ACCESS Article VII, Section 3 of the City Charter provides: The budget and all supporting schedules shall be filed with the City Secretary when submitted to the City Council and shall be open for public inspection by anyone interested. PUBLIC HEARINGS Article VII, Section 4 of the City Charter provides: At the Council meeting at which time the budget is submitted, the Council shall, in conformance with the requirements of law, name the date and place of a public hearing and shall cause to be published the time and place thereof. At this hearing, interested citizens may express their opinion concerning items of expenditure, giving their reasons for wishing to increase or decrease any items of expense. 49 BUDGET AMENDMENT Department heads can amend the budget within their divisions as long as it does not affect total appropriations. The City Manager can amend the budget within a particular fund as long as it does not affect total appropriations. The City Council may amend the budget by a majority vote of the full membership for emergency conditions which may arise which could not reasonably have been foreseen in the normal process of planning the budget when the general welfare of the citizenry is involved. These amendments must be by ordinance and attached to the original budget in accordance with Article VII, Section 8 of the City Charter. BUDGET PREPARATION The budget preparation is coordinated through the City Manager’s Office and the Finance Department. The budget process begins in late February or early March with a budget kickoff meeting with all City department directors and managers. Each department and division receives a budget preparation manual, forms and year to date budget information. Departments prepare a summary including the following information about their activities: Location and Hours of Operation Mission/Programs/Services Highlights/Accomplishments for the current fiscal year Goals & Objectives for the upcoming fiscal year Major Budgetary Issues and Operational Trends. Current year estimates are carefully reviewed and known exceptions or cost increases are reported along with justification. These variances are reviewed by the City Manager’s Office for amendment as deemed necessary. The budget requests are submitted along with justification for any increases. The City Manager’s office holds meetings with each director to review each of their line items and discuss any changes. All capital and supplemental requests are submitted separately and must include the following information: Purpose/objective of this request Changes/improvements from current operations Alternative financing options Estimated life of requested item Impact or consequence of not funding this request Equipment being replaced by this request Cost of the item Other associated cost A work session is held to allow each department the opportunity to present their capital and supplemental requests to the City Council. The City Manager’s Office consolidates all capital requests and all supplemental requests, assigns a ranking based on funding available, and submits its recommendation to the City Council for consideration. In accordance with the fiscal policies, supplemental programs will only be funded from current revenues. One-time revenue sources and excess reserves are used to fund capital requests. The finance department prepares revenue estimates based on historical data available from the revenue manual (which is updated monthly) and other available data. Estimates are reviewed and adjusted by the City Manager’s office as deemed necessary. The objective of 50 the City is to estimate revenues as accurately as possible to allow use of all available funding. The City Manager’s Office completes a final review of the budget and submits a preliminary budget to the City Council. In accordance with Article VII, Section 2 of the City Charter, this document must be submitted to City Council prior to August 1st. STRATEGIC PLANNING The City Council meets for a winter work-session and a budget work-session each year. During these work-sessions, a strategic planning session is held for discussion of short, intermediate, and long-term goals. These goals and the fiscal impact are considered during the budget process and serves as a guide throughout the year for staff. COMPREHENSIVE PLAN The City’s long-term planning has been consolidated into a comprehensive five-year plan produced by the City Manager’s office. This plan is updated every year and serves as the City’s “road map” to which infrastructure, facility, and park projects will be done in the coming years. Each project contains a fiscal impact analysis. The comprehensive plan includes a five-year plan for drainage infrastructure, streets including overlay and construction, water and wastewater line replacement, City facilities, and the parks master plan. The information included in this document is an integral part of the budget process. The Capital Improvements Program details all funded and unfunded projects that have been identified to date and meets the requirements of the City Charter. Article VII, Section 2 (4) requires “A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing”. Section 2 (5) further requires “A list of capital projects which should be undertaken within the five (5) next succeeding years”. BUDGET ADOPTION The City Charter provides: After public hearing, the City Council makes any changes deemed necessary and adopts the budget at least ten (10) days prior to the beginning of the next fiscal year by a favorable majority vote of all members of the Council. On August 2nd and 4th, the City Council reviewed the preliminary operating and capital budgets. At their regularly scheduled City Council meeting on August 14th, the Euless City Council set a date, time, and place for the budget public hearing on August 28th. City Council held that public hearing and adopted the budget September 11th. After the budget adoption, the Finance Department prepares a monthly financial report which is presented to the City Council for their review. 51 DATE RESPONSIBILITY ACTION Wednesday, February 21, 2018 Managers, Directors & Administrators Budget Kickoff - 2:00PM, City Hall Council Chambers Saturday, February 24, 2018 CC, CMO & Finance Winter Work Session Friday, March 02, 2018 Managers, Directors & Administrators Computer Request Forms due to Information Services,Vehicle Request due to Fleet Services, and pay plan adjustments to HR. February 26 - March 9, 2018 CMO, Finance & Directors Preliminary CIP Review (Facilities, Public Works, PACS) Friday, March 16, 2018 Managers, Directors, Administrators & Finance Capital &Supplemental Request Budget Forms,including FY2019 Multi-year Budget Forms,with supporting documentation and rankings, returned to Finance. Friday, March 23, 2018 Managers, Directors, Administrators & Finance All Other Budget Forms,including FY2019 Known Exceptions and Travel Budget Forms,with supporting documentation, returned to Finance. Departmental Data Entry completed. Monday, April 02, 2018 Finance & Directors Notice of Fee Changes Due to Finance Monday, April 02, 2018 Finance & Directors All CIP Sheets Updated and returned to Finance. April 16-27, 2018 CMO, Finance & Directors Operating &Capital Budget Review with Directors and Administrators Tuesday, May 15, 2018 TAD Preliminary Tax Roll from TAD Wednesday, May 30, 2018 CSO & Finance Publish Notice of Public Hearing on CCPD budget to be held on June 11th (CCPD Board) Monday, June 11, 2018 CCPD Board Hold Public Hearing on CCPD Budget. Adopt FY2019 CCPD Budget. Submit CCPD Budget to City Council. Monday, June 11, 2018 CC Receive CCPD Budget. Special called meeting at 6:00P.M. Monday, June 11, 2018 CC, CMO & Directors Pre-Budget Work Session on Capital and Supplemental at 6:15P.M. Thursday, June 14, 2018 CC, CMO & Directors Town Hall Meeting Monday, June 25, 2018 CC, CMO & Finance CIP Budget Work Session Wednesday, July 25, 2018 TAD Receipt of Final Tax Roll from TAD ( Make final changes) Tuesday, July 31, 2018 Finance Preliminary Budget: CC, CMO, CSO, Library, Website Wednesday, August 01, 2018 CSO & Finance Publish Notice of Public Hearing of EDC Budget to be held August 13 th (EDC Board). Publish Notice of City Council Public Hearing of CCPD Budget to be held on August 14th. Thursday, August 02, 2018 CC, CMO & Finance Budget Work Session Saturday, August 04, 2018 CC, CMO & Finance Budget Work Session Monday, August 13, 2018 EDC Board Hold Public Hearing on EDC Budget and Adopt FY2019 EDC Budget. Tuesday, August 14, 2018 CC Vote to Place a Proposal to adopt a Specified Tax Rate on the September 11 th agenda. Schedule Public Hearings on Proposed Tax Rate for August 28th and September 4th. Schedule Public Hearing on Proposed City and EDC budgets to be held August 28th.Hold Public Hearing on FY2019 CCPD Budget. Approve CCPD FY2019 Budget. Thursday, August 16, 2018 CSO & Finance Publish Notice of Property Tax Rate and Public Hearings on Tax Increase to be held August 28th and September 4th. Publish Notice of Public Hearing on Proposed Budgets (City and EDC) to be held August 28th. Tuesday, August 28, 2018 CC Hold Public Hearing on Proposed EDC and City FY2019 budgets.Hold 1st Public Hearing on Proposed Tax Rate. Announce date,time and place of 2nd public hearing on the Tax Rate and announce date,time and place of meeting to adopt the proposed tax rate for September 11th. Tuesday, September 04, 2018 CC Special Called Meeting to Hold 2nd Public Hearing on Proposed Tax Rate. Announce date,time and place of meeting to adopt the proposed tax rate for Tax Year 2018 for September 11th. Tuesday, September 11, 2018 CC Approve EDC Budget.First Reading and Adoption of the FY2019 Budget.Ratify Property Revenue Increase.First Reading and Adoption of Tax Rate. Adopt the Tax Roll. Tuesday, September 25, 2018 CC Second Reading and Adoption of FY2019 Budget (if necessary). Final Reading and Adoption of Tax Rate (if necessary). * Tentative Subject to Change FY2018-2019 Budget Schedule* 52 EXCERPTS FROM CHARTER CITY OF EULESS, TEXAS ARTICLE VII. FINANCE Sec. 1. Fiscal year. The fiscal year of the City of Euless shall begin on October first of each calendar year and will end on September thirtieth of the following calendar year. The fiscal year will also be established as the accounting and budget year. All funds collected by the City during any fiscal year, including both current and delinquent revenue shall belong to such fiscal year and, except funds derived to pay interest and create a sinking fund on the bonded indebtedness of the City, may be applied to the payment of the expenses incurred during such fiscal year. Any revenues uncollected at the end of any fiscal year, and any unencumbered funds actually on hand shall become resources of the next succeeding fiscal year. State law references – Budgets. V.T.C.A. Local Government Code ¶ 102.001 et seq: fiscal powers. V.T.C.A., Local Government Code ¶ 101.002. State law reference – Fiscal Year. V.T.C.A. Tax Code ¶1.05 Sec. 2. Preparation and submission of budget. The City Manager, prior to August first of each year, shall prepare and submit the budget, covering the next fiscal year, to the Council, which shall contain the following information. In preparing the budget, each employee, officer, board, and department shall assist the City Manager by furnishing all necessary information. (1) The City Manager’s budget message shall outline the proposed financial policies for the next fiscal year with explanations of any change from previous years in expenditures and any major changes of policy, and a complete statement regarding the financial conditions of the City. (2) An estimate all revenue from taxes and other sources, including the present tax structure rates and property evaluation for the ensuing year. (3) A carefully itemized list of proposed expenses by office, department, agency, employee and project for the budget year, as compared to actual expenses of the last ended fiscal year, and the present year-to-date. (4) A description of all outstanding bond indebtedness, showing amount, purchaser, date of issue, rate of interest and maturity date, as well as any other indebtedness which the City had incurred and which has not been paid. (5) A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing. (6) A list of capital projects which should be undertaken within the five (5) next succeeding years. State law reference – Budget, V.T.C.A., Local Government Code ¶ 102.001 et seq. Sec. 3 Budget a public record. The budget and all supporting schedules shall be filed with the City Secretary when submitted to the Council and shall be open to public inspection by anyone interested. State law reference – Budget, V.T.C.A., Local Government Code ¶ 102.001 et seq. 53 Sec. 4. Public hearing on budget. At the Council meeting at which time the budget is submitted, the Council shall, in conformance with the requirements of law, name the date and place of a public hearing and shall cause to be published the time and place thereof. At this hearing, interested citizens may express their opinions concerning items of expenditure, giving their reasons for wishing to increase or decrease any items of expense. (Amended 11-5-91) State law reference – Budget, V.T.C.A., Local Government Code ¶ 102.001 et seq. Sec. 5. Proceeding on adoption of budget. After public hearing, the Council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall, at least ten (10) days prior to the beginning of the next fiscal year, adopt the budget by a favorable majority vote all members of the Council. State law reference – Budget, V.T.C.A. Local Government Code ¶ 102.001 et seq. Sec. 6. Budget, appropriation, and amount to be raised by taxation. On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the Council shall constitute the official appropriations as proposed expenditures for the current year and shall constitute the basis of the official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any item required for the same general purpose. Sec. 7. Unallocated reserve fund. The City Manager may recommend for action by the Council, an unallocated reserve fund to be used for unexpected items of expense which were not contained as original items of expenditures. Sec. 8. Amending the budget. Under the extreme emergency conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the Council may, by a majority vote of the full membership, amend or change the budget to provide for any additional expenses in which the general welfare of the citizenry is involved. These amendments shall be by ordinance, and shall become an attachment to the original budget. State law reference – Budget, V.T.C.A. Local Government Code ¶ 102.001 et seq. Sec. 9. Certification: copies made available. A copy of the budget, as finally adopted, shall be filed with the City Secretary. The final budget shall be printed, mimeographed, or otherwise reproduced and sufficient copies shall be made available for the use of all offices, agencies and for the use of interested persons and civic organizations. Sec. 10. Defect shall not invalidate the tax levy. Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements shall not nullify the tax levy or the tax rate. 54 CITY OF EULESS FISCAL POLICIES I. INTRODUCTION A. Purpose Statement – The City of Euless has an important responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan for the adequate funding of services desired by the public. The overriding goal of the Fiscal Policies is to enable the City to achieve a long-term stable and positive financial condition. The watchwords of the City’s fiscal management include integrity, prudent stewardship, planning, accountability, and full disclosure. The purpose of the Fiscal Policies is to provide guidelines for the Director of Finance in planning and directing the City’s day to day financial affairs and in developing recommendations to the City Manager and City Council. The scope of the policies spans accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash management, expenditure control, and debt management. B. Annual Review of Policies – These policies will be reviewed administratively by the Finance Director and City Manager and will be presented to the City Council for approval of any significant changes. II. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING A. Accounting – The Director of Finance is the City’s Chief Accountant and is responsible for establishing the chart of accounts and for properly recording financial transactions. B. Accounts Receivable – This asset account reflects amounts owed to the City from citizens, companies, or other governmental entities. Delinquent accounts will be pursued. C. External Auditing 1. The City will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm of national reputation and must demonstrate that they have the breadth and depth of staff to conduct the City’s audit in accordance with generally accepted auditing standards and contractual requirements. The auditor’s report on the City’s financial statements will be completed and submitted to City staff within 120 days of the City’s fiscal year end, and the auditor’s management letter will be presented to the City staff accordingly. An interim management letter will be issued prior to this date if any materially significant internal control weaknesses are discovered. 2. The Auditors are accountable to the City Council and will have access to direct communication with the City Council if the City staff is unresponsive to auditor recommendations or if the auditors consider such communication necessary to fulfill their legal and professional responsibilities. 3. Auditor Rotation – The City will not require auditor rotation, but will circulate requests for proposal for audit services at least every five years. D. Internal Auditing – The City recognizes the need for an internal audit function to provide independent, unbiased and objective reviews and assessments of the business activities, operations, financial systems and internal accounting controls of the City and some of its business partners. The reviews and assessments are conducted in order to instill confidence to citizens and stakeholders that resources are responsibly and effectively managed in order to achieve intended results. The City shall devote resources, as available, to conduct operational, financial and performance audits, selected as a result of risk analysis and assessment process. The internal audit function will report directly to the City Manager’s Office. E. External Financial Reporting – The City will prepare and publish a comprehensive annual financial report (CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and awarding of the Certificate of Achievement for Excellence in Financial Reporting. The 55 CAFR will be published and presented to the City Council within 150 days after the end of the fiscal year. City staffing limitations may preclude such timely reporting. In such case, the Finance Director will inform the City Manager and the City Manager will inform the City Council of the delay and the reasons therefore. F. Internal Financial Reporting – The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control the City’s financial affairs. Internal financial reporting objectives are addressed throughout the policies. III. INTERNAL CONTROLS A. Objective – To provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition. At all times the City of Euless shall maintain an environment conducive to good internal controls. B. Written Procedures – The Finance Director is responsible for developing Citywide written guidelines on accounting, cash handling, and other financial matters which will be approved by the City Manager. The Finance Department will assist Department Managers as needed in tailoring these guidelines into detailed written procedures to fit each department’s specific requirements. C. Department Managers Responsible – Each Department Manager is responsible to ensure that good internal controls are followed throughout his or her department, that all Finance Department guidelines on accounting and internal controls are implemented, and that all independent auditor internal control recommendations are addressed. IV. OPERATING BUDGET A. Preparation – The City’s “operating budget” is the City’s annual financial operating plan. It comprises governmental and proprietary funds, including the General Obligation Debt Service Fund. The budget is prepared by the Finance Director or appointee with the cooperation of all City Departments, and is submitted to the City Manager who makes any necessary changes and transmits the document to the City Council. The operating budget will be submitted to the GFOA annually for evaluation and awarding of the Award for Distinguished Budget Presentation. B. Balanced Budget – The operating budget will be balanced, with current revenues, exclusive of beginning resources, greater than or equal to current expenditures/expenses. C. Adoption Process – Pursuant to City Charter Article VII Section 5, a budget will be presented by the City Manager to the City Council, and to the public through the Euless Public Library, by August 1, and after public hearings the City Council shall adopt, with any changes, at least ten days prior to beginning of the new fiscal year by a majority vote. D. Amendment Process – According to Section 8 of the same article, amendments may be made by ordinance as necessary. E. Planning – The budget process will be coordinated so as to identify major policy issues for the City Council consideration several months prior to the budget approval date so that proper decision analysis can be made. Periodic financial reports will be prepared to enable the Department Managers to manage their budgets and to enable the Budget Office to monitor and control the budget as authorized by the City Manager. Summary financial reports will be presented to the City Council monthly by the third Friday after the end of each month. Such reports will enable the City Council to understand the big picture budget status. Operating Expenditure Control is addressed in another section of the Policies. F. Performance Measures and Productivity Indicators – Where appropriate, performance measures and productivity indicators will be developed and used as guidelines and reviewed for efficiency and effectiveness. This information will be included in the annual budgeting process and reported to the City Council at least annually. V. CAPITAL BUDGET AND PROGRAM A. Preparation – The City’s capital budget will include all capital project funds and all capital resources. The budget will be prepared annually in conjunction with the operating budget. The capital budget will be compiled by the Finance Director with the involvement of all required City departmental project managers. Integration of the fiscal impact of capital improvements on the operating budget will be monitored. 56 B. Definition – 1. Facilities - include any structures or properties owned by the City, the land upon which the facility is situated for the provision of City services, and the initial furniture, fixtures, equipment and apparatus necessary to put the facility in service. Facilities include, but are not limited to the following: administrative offices, parks, service centers and storage yards, recreation centers, libraries, fire stations, jails and courts, and water and sewer related structures. 2. Infrastructure - Includes permanently installed facilities, generally placed underground or at grade, which form the basis for the provision of City services. Typically included are thoroughfares, bridges, water and sanitary sewer lines, drainage channels, and storm sewers. C. Control – All capital project expenditures must be appropriated in the capital budget. The Finance Department must certify the availability of such appropriations or the availability of resources so an appropriation can be made before a capital project contract is presented by the City Manager to the City Council for approval. D. Program Planning – The capital budget will include capital improvements program plans for future years. The planning time frame should normally be at least five years. The replacement and maintenance for capital items should be projected for the next five years. Future maintenance and operations will be fully costed, so that these costs can be considered in the operating budget. E. Alternate Resources – Where applicable, assessments, impact fees, pro-rata charges, or other user- based fees should be used to fund capital projects which have a primary benefit to specified property owners. Drainage Utility revenues are established to fund small citywide drainage projects. Single large drainage projects may be funded by debt. F. Debt Financing – Recognizing that debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives which equal or exceed the average life of the debt issue. The exceptions to this requirement are the traditional costs of marketing and issuing the debt, capitalized labor for design and construction of capital projects, and small component parts which are attached to major equipment purchases. G. Infrastructure Maintenance – The City recognizes that deferred street maintenance increases future capital costs by an estimated five- to ten-fold. Therefore, a portion of the General Fund budget will be set aside each year to maintain the quality of streets. The amount will be established annually so that repairs will be made amounting to a designated percentage of the value of the streets. H. Reporting – Periodic financial reports will be prepared to enable the Department Managers to manage their capital budgets and to enable the Finance Department to monitor and control the capital budget as authorized by the City Manager. VI. REVENUE MANAGEMENT A. Simplicity – The City will strive to keep the revenue system simple, which will result in a decrease of compliance costs for the taxpayer or service recipient and a corresponding decrease in avoidance to pay. The City will avoid nuisance taxes, fee, or charges as revenue sources. B. Certainty – An understanding of the revenue source increases the reliability of the revenue system. The City will try to understand its revenue sources, and enact consistent collection policies so that assurances can be provided that the revenue base will materialize according to budgets and plans. C. Equity – The revenue system of the City will strive to maintain equity in its structure. That is, the City will seek to minimize or eliminate all forms of subsidization between entities, funds, services, utilities, and customers. However, it is recognized that public policy decisions may lead to subsidies in certain circumstances, e.g., homestead tax exemption. D. Administration – The benefits of a revenue will exceed the cost of producing the revenue. The cost of collection will be reviewed annually for cost effectiveness as a part of the indirect cost, cost of services analysis. Where appropriate, the City will use the administrative processes of State or Federal collection agencies in order to reduce administrative costs. 57 E. Revenue Adequacy – The City will require that there be a balance in the revenue system. That is, the revenue base will have the characteristic of fairness and neutrality as it applies to cost of service, willingness to pay, and ability to pay. F. Cost/Benefit of Abatement – The City will use due caution in the analysis of any tax, fee, or water and wastewater incentives that are used to encourage development. Ideally, a cost/benefit (fiscal impact) analysis will be performed as a part of such review. G. Diversification and Stability – In order to protect the government from fluctuations in a revenue source due to fluctuations in the economy, and variations in weather (in the case of water and wastewater), a diversified revenue system will be maintained which has a stable source of income. H. Nonrecurring Revenues – One-time revenues will not be used for ongoing operations. Nonrecurring revenues will be used only for nonrecurring expenditures. Care will be taken not to use these revenues for budget balancing purposes. I. Property Tax Revenues – 1. Process. Property shall be assessed at 100% of the fair market value as appraised by Tarrant Appraisal District. Reappraisal and reassessment shall be done regularly as required by State law. A 97% collection rate will serve as a goal for tax collections, with a delinquency rate of 3% or less. All delinquent taxes will be aggressively pursued, with delinquents greater than 150 days being turned over to an attorney and a penalty assessed to compensate the attorney as allowed by State law, and in accordance with the attorney’s contract. Annual performance criteria will be developed for the attorney. 2. Reduce Reliance on Property Tax. The City will try to reduce reliance on property tax by seeking additional revenue sources and attempting to expand and diversify the City tax base. J. Exemptions – In order to maintain stability of funds for the City, it is the Council’s intentions for the exemptions presently allowed by the City to be continued with no allowance for additional exemptions. Tax abatements should be used selectively and only when a good chance exists of economic return exceeding the loss. K. User-Based Fees – For services associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. There will be an annual review of fees and charges to ensure that fees provide adequate coverage of costs of services. L. Property Tax Distribution – The percentage of the tax rate allocated to the General Fund is the percent equal to the Maintenance and Operations portion of the total tax rate. The allocation of the tax rate for debt purposes is the percent equal to the Interest and Sinking portion of the total tax rate. Debt service should not exceed 40% except for extraordinary and temporary reasons. M. Proprietary – Proprietary funds will pay the General Fund for direct services rendered. Additionally, the Water and Wastewater Fund will pay a franchise fee of 5% of gross receipts. This is to compensate the General Fund for the lost revenue that would be payable from a privately owned utility. N. Franchise Agreements – The City will monitor the status of existing financial agreements and take necessary actions to negotiate new agreements as they near expiration or as they need revisions to best serve the citizens of Euless. O. General and Administrative Charges – A method will be maintained whereby the General Fund may impose a charge to the proprietary funds for general and administrative services (indirect costs) performed on the enterprise funds’ behalf. P. Utility Rates – The City will review and adopt utility rates that will generate revenues required to fully cover operating expenditures, meet the legal restrictions of all applicable bond covenants, and provide for an adequate level of working capital needs. This policy does not preclude drawing down cash balance to finance current operations. However, it is best that any extra cash balance be used instead to finance capital projects. Q. Interest Income – Interest earned from investment of available moneys, whether pooled or not, will be distributed to the funds in accordance with the operating and capital budgets which, wherever possible, will be in accordance with the equity balance of the fund from which moneys were provided to be invested. 58 R. Revenue Monitoring – Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. VII. EXPENDITURE CONTROL A. Appropriations – The level of budgetary control is the department level in the General Fund and Water and Sewer Fund, and the fund level in all other funds. When budget adjustments between funds are necessary, these must be approved by the City Council. Budget appropriation amendments at lower levels of control shall be made in accordance with the applicable administrative procedures through the finance office. B. Central Control – Significant salary and capital budgetary savings in any department will be centrally controlled and may not be spent by the department without specific City Manager authorization. C. Purchasing – All purchases shall be in accordance with the City’s purchasing policies. Purchases and any contracts exceeding the limit established by state law will conform to a formal bidding process as outlined. Recommendations on purchases and contracts that are subject to the bidding process will be made to the City Council for their approval. D. Prompt Payment – All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Procedures will be used to take advantage of all purchase discounts where considered cost effective. However, payments will also be reasonably delayed in order to maximize the City’s investable cash, where such delay does not violate the agreed upon payment terms. E. Equipment Financing – Equipment may be financed when the unit purchase price is $20,000 or more and the useful life is at least four years with City Council approval. VIII. ASSET MANAGEMENT A. Investments – The City’s investment practices will be conducted in accordance with the City Council approved Investment Policies. Utilized objectives: safety, liquidity, and yield. B. Cash Management – The City’s cash flow will be managed to maximize the cash available to invest. C. Investment Performance – At the end of each fiscal year a report on investment performance will be provided by the Finance Director to the City Manager for presentation to the City Council. D. Fixed Assets and Inventory – These assets will be reasonably safeguarded, property accounted for, and prudently insured. IX. FINANCIAL CONDITION AND RESERVES A. No Operating Deficits – Current expenditures will be paid with current revenues. Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques. Reserves will be used only for emergencies or nonrecurring expenditures, except when balances can be reduced because their levels exceed guideline minimums. B. Operating Reserves – The General Fund resources balance combined with the Emergency Reserve Funds should be at least 30 to 60 days in working capital and never fall below 8.3% of the General Fund expenditures budget. This percentage is the equivalent of 30 days’ expenditures. The Enterprise Fund working capital should be at least 45 to 75 days in working capital and never fall below 12% of the Water and Wastewater operating expense budget. An additional cash test will be required for the Water and Wastewater Fund to ensure the City’s ability to operate, exclusive of accounts receivable. C. Risk Management Program – The City will aggressively pursue every opportunity to provide for the public’s and City employees’ safety and to manage its risks. All reasonable options will be investigated to finance losses. Such options may include risk transfer, insurance, and risk retention. Where risk is retained, reserves will be established based on actuarial determinations. Such reserves will not be used for any purpose other than for financing losses. D. Compensated Absences – The City will establish a separate expenditure account within its operating funds to pay for accrued vacation leave. Accrued vacation leave can normally be paid by allowing a vacated position to remain open for several weeks. This account will be established based upon a schedule of estimated retirements which will be developed in conjunction with the operating budget. 59 E. Equipment Replacement – The City shall maintain an Equipment Replacement Fund for vehicles and equipment. Funds will be transferred based on a depreciated calculation of each piece of equipment. F. Health Claims – The City shall maintain a fund for health claims for all employees. Adequate reserves shall be maintained as determined actuarially. All reasonable cost containments will be reviewed to keep the cost to the City and the employees minimal. X. DEBT MANAGEMENT A. Short-Term Debt – Short-term debt may be issued for interim financing, short economic life assets, or funding operational cash flow deficits or anticipated revenues. If utilized, tax anticipation notes (TAN’s) will be retired in accordance with State law, and bond anticipation notes (BAN’s) will be retired within six months of completion of the project. Any short-term debt outstanding at year end will not exceed 5% (including TAN’s, but excluding BAN’s) of net operating revenues. B. Long-Term Debt – The City may issue long-term debt when it is deemed that capital improvements should not be financed from current revenues, reserves, or short-term borrowings. Long-Term debt will not be used for operating purposes, and the life of the bonds will not exceed the useful life of the projects financed. C. Self-Supporting Debt – When appropriate, self-supporting revenues will pay debt service in lieu of tax revenues. D. Rating – Full disclosure of operations will be made to the bond rating agencies. The City staff, with the assistance of fiscal advisors or bond counsel, will prepare the necessary materials for and presentation to the rating agencies. E. Water and Wastewater Bond Coverage Ratios – The City has both revenue bonds and other indebtedness of the Water and Wastewater Fund. The City will maintain two coverage ratios: 1.50 for revenue bonds “technical average” and 1.25 for all indebtedness “practical coverage”. The City will issue new debt for an Enterprise only after an “additional bonds” test has been applied to the issuance. This test determines that revenues are sufficient to defray the additional debt service burden that will be created by the new issuance. F. Federal Requirements – The City will maintain procedures to comply with arbitrage rebate and other Federal requirements as necessary. In attempt to exempt the City from arbitrage rebate requirements, the City will attempt to issue bonds in increments not to exceed $5,000,000 per calendar year. G. Debt Service Reserves – The Debt Service Fund will maintain a minimum level of reserves equal to one month of principal and interest. This does not include the amounts accrued for the next debt service payment. The policy above does not preclude the debt service reserves normally established to market revenue bonds. The City’s policy and bond ordinance requirement are to maintain these debt service reserves at the level of the average annual debt service. H. Debt Burden – The Debt Burden should be within the norm of comparable cities. Specifically, maintenance of capacity not to exceed the median per capita and per assessed valuation will be monitored. I. Debt Structuring – The City will issue bonds with an average life of twenty (20) years or less in order to reduce net interest cost and maintain future flexibility by paying off debt earlier. The issuance should contribute to an overall curve that is relatively flat. J. Competitive vs. Negotiated Bidding – The City will analyze on a per issue and market basis the desire to utilize competitive versus negotiated sale of bonds. In either instance, the fiscal staff will present to management and council advantages and disadvantages of the process. K. Bidding Parameters – The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of the existing market conditions and other prevailing factors. Parameters to be examined include: • Limits between lowest and highest coupons • Coupon requirements relative to the yield curve • Method of underwriter compensation, discount or premium coupons • Use of True Interest Cost (TIC) vs. Net interest Cost (NIC) 60 • Use of bond insurance • Deep discount bonds • Variable rate bonds • Call provisions L. Bond Issuance Advisory Fees and Costs – The City will be actively involved in the selection of all financial advisors, underwriters, paying agents, and bond counsel. The City shall evaluate the merits of rotating professional advisors and consultants as well as the kinds of services and fee structures available from independent financial advisors, investment banking firms, and commercial banks. The City will carefully itemize and scrutinize all costs associated with the issuance of bonds. M. Refunding Debt – The City shall continually review outstanding obligations and may initiate refinancing when the potential for present value savings calculate to approximately five percent (5%) or gross savings exceed $100,000. N. Maximum Debt Levels – The water and wastewater bond maximum shall be within Bond Coverage Ratios as stated in this policy. The City will strive to keep the portion of the City’s ad valorem tax rate for interest and sinking (debt service) that is tax supported debt (excluding self-supporting debt) below forty percent (40%) of the total adopted City ad valorem tax rate. The State of Texas limits the total City ad valorem tax rate to $2.50 per $100 valuation. O. Fixed Rate Debt – To maintain a predictable debt service schedule, the City may give preference to debt that carries a fixed interest rate. P. Variable Rate Debt - Variable rate debt is debt that bears interest at a floating rate established at specific intervals. The City strives not to exceed thirty percent (30%) of the City’s total outstanding debt in variable rate debt and may consider using variable rate debt in circumstances where assets and liabilities match, for interim financing, where interest rates are above historic averages, if diversification of debt is desired, or there is a variable revenue stream. XI. STAFFING AND TRAINING A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the City to function effectively. Overtime shall be used only to address temporary or seasonal demands that require excessive hours. Workload shedding alternatives as well as technology will be explored before adding staff. B. Training – The City will support the continuing education efforts of all financial staff including the investment in time and materials for maintaining a current perspective concerning financial issues. Staff will be held accountable for communicating, teaching, and sharing with other staff members all information and training materials acquired from seminars, conferences, and related education efforts. C. Awards, Credentials – The City will support efforts and involvements which result in meeting standards and receiving exemplary recitations on behalf of any of the City’s fiscal policies, practices, processes, products, or personnel. Further, the Finance Director will try to obtain and/or maintain designation of Certified Government Finance Officer as awarded by the GFOA of Texas. 61 General Fund 62 $ 11,243,470 $ 12,449,468 $ 12,449,468 $ 9,993,741 REVENUES Property Taxes 12,322,016$ 13,669,048$ 13,615,183$ 15,185,605$ Gross Receipts Tax 4,330,670$ 4,505,276$ 4,467,182$ 4,549,168$ General Sales Tax 13,093,980$ 13,577,161$ 12,537,675$ 13,193,953$ Selective Sales Tax 128,252$ 145,000$ 150,000$ 171,075$ Fines/Fees/Penalties 2,659,322$ 2,724,581$ 2,558,566$ 2,583,980$ Licenses & Permits 1,895,460$ 749,000$ 1,287,195$ 574,000$ Interest Income 140,239$ 140,000$ 163,910$ 170,000$ Intergovernmental Revenue 402,549$ 410,778$ 419,142$ 420,000$ Charges for Service 1,853,184$ 1,904,400$ 1,630,305$ 1,693,615$ Miscellaneous/Rental Income 610,334$ 618,878$ 610,374$ 614,244$ Insurance/Risk/Other Financing Sources 276,660$ 10,000$ 3,278,911$ 4,000$ Revenues before Transfers 37,712,666$ 38,454,122$ 40,718,443$ 39,159,640$ Transfers from Other Funds 2,771,596$ 2,771,496$ 2,897,387$ 2,979,037$ TOTAL REVENUES 40,484,262$ 41,225,618$ 43,615,830$ 42,138,677$ TOTAL RESOURCES 51,727,732$ 53,675,086$ 56,065,298$ 52,132,418$ EXPENDITURES Personal Services 28,658,039$ 31,404,077$ 30,941,510$ 31,839,327$ Professional/Technical Services 1,115,175$ 1,452,296$ 1,354,617$ 1,429,795$ Contractual Services 567,606$ 666,999$ 662,555$ 675,944$ Utilities 1,362,125$ 1,096,770$ 1,054,530$ 1,035,823$ Maintenance 633,258$ 649,697$ 586,719$ 678,893$ Other Services/Contingencies 46,430$ 175,500$ 119,575$ 150,500$ Insurance 5,077$ 5,300$ 5,300$ 5,300$ General & Administrative 376,185$ 484,292$ 468,510$ 459,356$ Rebates/Incentives 2,273,141$ 2,380,496$ 2,416,460$ 2,069,609$ Supplies 904,659$ 1,068,141$ 984,048$ 1,039,033$ Capital Purchases (Equipment)2,059,228$ 3,174,672$ 6,068,320$ 3,206,898$ Debt Service/Bank Charges 3,133$ 6,000$ 6,000$ 102,576$ Expenditures before Transfers 38,004,056$ 42,564,240$ 44,668,144$ 42,693,054$ Transfers to Other Funds 1,274,208$ 1,403,413$ 1,403,413$ 1,906,368$ TOTAL EXPENDITURES 39,278,264$ 43,967,653$ 46,071,557$ 44,599,422$ ENDING FUND BALANCE 12,449,468$ 9,707,433$ 9,993,741$ 7,532,996$ 1 General Emergency and Contingency Fund reflected in the Reserve Fund Summary. NOTE: Some accounts may have been recategorized to provide consistent presentation across funds. BEGINNING FUND BALANCE1 ACTUAL FY2016-17 BUDGET FY2017-18 ESTIMATED FY2017-18GENERAL FUND SUMMARY The budget declines in fund balance are planned drawdowns for the purchase of capital equipment and other non- recurring, one-time expenditures. The drawdown is funded from excess reserves that exceed the recommended 60- day level. BUDGET FY2018-19 63 General Fund Revenues Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Revenues FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Property Taxes 12,274,326$ 13,639,048$ 13,590,183$ 15,155,605$ 1,516,557$ 11% Prior Year Property Taxes 47,690$ 30,000$ 25,000$ 30,000$ -$ 0% Penalties & Interest 68,615$ 65,000$ 60,000$ 65,000$ -$ 0% Sales Tax 10,435,753$ 10,805,859$ 9,985,426$ 10,487,214$ (318,645)$ (3%) Additional Sales Tax 2,658,227$ 2,771,302$ 2,552,249$ 2,706,739$ (64,563)$ (2%) Mixed Drink Tax 128,252$ 145,000$ 150,000$ 171,075$ 26,075$ 18% Electric Franchise 1,633,066$ 1,683,432$ 1,683,432$ 1,700,266$ 16,834$ 1% Gas Franchise 384,230$ 380,000$ 427,604$ 430,000$ 50,000$ 13% Telephone Franchise 282,336$ 309,000$ 275,500$ 268,000$ (41,000)$ (13%) Sanitation Service 232,445$ 232,800$ 248,185$ 252,000$ 19,200$ 8% Recycling Franchise Fee 19,585$ 19,200$ 20,225$ 20,225$ 1,025$ 5% Cable Franchise Fee 623,174$ 658,000$ 583,000$ 580,000$ (78,000)$ (12%) W&WW Franchise Tax 1,155,834$ 1,222,844$ 1,229,236$ 1,298,677$ 75,833$ 6% Other Permits 26,613$ 25,000$ 26,330$ 26,000$ 1,000$ 4% Health Permits 72,050$ 70,000$ 70,185$ 70,000$ -$ 0% Fire Permits 84,448$ 69,500$ 106,275$ 90,000$ 20,500$ 29% Contractor Regulatory License 67,200$ 62,000$ 62,000$ 65,000$ 3,000$ 5% Minimum Housing 101,623$ 100,000$ 79,015$ 79,015$ (20,985)$ (21%) Misc. Permits and Fees 43,382$ 44,000$ 45,145$ 45,000$ 1,000$ 2% Building Permits 1,624,178$ 500,000$ 1,000,000$ 300,000$ (200,000)$ (40%) Swimming Pools/Concessions 233,553$ 265,000$ 226,955$ 230,000$ (35,000)$ (13%) Auto Theft Task Force Grant 85,616$ 87,506$ 93,210$ 95,000$ 7,494$ 9% School Resource Officers 316,933$ 323,272$ 323,272$ 325,000$ 1,728$ 1% Municipal Court 2,582,580$ 2,650,846$ 2,490,941$ 2,513,980$ (136,866)$ (5%) Library Fees 30,395$ 29,835$ 28,725$ 20,100$ (9,735)$ (33%) Ambulance Fees 1,043,748$ 1,150,000$ 1,018,000$ 1,010,000$ (140,000)$ (12%) Alarm Revenue 118,825$ 130,000$ 95,000$ 130,000$ -$ 0% Jail Revenue 302,115$ 210,000$ 160,000$ 200,000$ (10,000)$ (5%) Interest Income 140,239$ 140,000$ 163,910$ 170,000$ 30,000$ 21% Miscellaneous 164,815$ 108,778$ 124,411$ 105,174$ (3,604)$ (3%) Tower Lease 465,998$ 511,400$ 490,828$ 505,570$ (5,830)$ (1%) Betterment/Contributions 15,452$ 15,500$ 15,290$ 15,000$ (500)$ (3%) Issuance of Debt 249,370$ -$ 3,268,911$ -$ -$ 0% Transfers 2,771,596$ 2,771,496$ 2,897,387$ 2,979,037$ 207,541$ 7% TOTAL REVENUES 40,484,262$ 41,225,618$ 43,615,830$ 42,138,677$ 913,059$ 2% Use of Reserves -$ 2,750,528$ 2,455,727$ 2,494,858$ (255,670)$ (9%) TOTAL RESOURCES 40,484,262$ 43,976,146$ 46,071,557$ 44,633,535$ 657,389$ 1% Sales & Uses Taxes 32% Licenses/Permits 2% Franchise Fees 11% Fines & Fees 10%Interest 0% Transfers 7% Miscellaneous 2% Property Taxes 36% FY2018-2019 64 General Fund FY2019 revenue assumptions revenue source assumptions Property Taxes Projection based on tax rate of 46.25¢ on certified appraisals from Tarrant Appraisal District. Prior Year Property Taxes Projected to remain flat with FY18 budget. Penalties & Interest Projected to remain flat with FY18 budget. Sales Tax Projected to decline 3% from FY18 budget. Additional Sales Tax Decrease based on 25% of projected sales tax revenues without TIF allocation. Mixed Drink Tax Projected to increase with new development. Electric Franchise Projection to increase with new development with offset for lower rates in the market. Gas Franchise Projected increase from FY18 budget based on actual collections. Telephone Access Line Fees Decreased based on historical trend. Sanitation Services Franchise Increase from FY18 budget based on approved rates. Recycling Franchise Projection to remain flat with from FY18 estimates. Cable Franchise Projected decrease from FY18 estimates. Water & Wastewater Franchise Based on 5% of projected gross receipts. Other Permits Projected to increase slightly based on historical trend. Health Permits Projected to remain flat from FY18 budget due to food establishment closures for highway expansion combined with known increases from development. Fire Permits Projected to increase from FY18 budget due to new development. Contractors Regulatory License Projected to increase slightly based on historical trend. Minimum Housing Projected decrease due to the demolition of older apartments and several achieving Tier 1. Miscellaneous Permits and Fees Projected slight increase from FY18 budget. Building Permits Projected to decrease as City reaches buildout. Police Program Reimbursements Based on 80% of projected officer salary. School Police Reimbursements Based on current contract of four patrol officers. Municipal Court Projected to increase slightly from FY18 estimates. Library Fees Projected to decrease from FY18 estimates due to library remodel. Ambulance Fees Projection of a slight decrease from FY18 estimates. Alarm Revenue Projected to remain flat with FY18 budget. Jail Revenue Projected to decrease slightly from FY18 budget levels. Interest Income Projected to increase based on market outlook and investable balances. Miscellaneous Projected slight decrease from FY18 budget. Tower Lease Revenue Based on current lease agreements. Betterment Contributions Projected to decrease from FY18 estimates. Transfers Based on administrative fees charged to utility operations and 1/3 of Euless’ portion of the Car Rental Tax. 65 General Fund Multi-Year Analysis FY18 Budget to REVENUE ACTUAL ACTUAL ACTUAL BUDGETED ESTIMATED PROPOSED FY19 Proposed SOURCE FY2015 FY2016 FY2017 FY2018 FY2018 FY2019 % Diff Property Taxes*$10,855,011 $11,164,933 $12,390,631 $13,734,048 $13,675,183 $15,250,605 11.04% Franchise Fees $4,403,348 $4,320,999 $4,330,669 $4,505,276 $4,467,182 $4,549,168 0.97% Sales & Use Taxes $11,537,264 $12,697,947 $13,222,232 $13,722,161 $12,687,675 $13,365,028 (2.60%) Fines & Fees $4,690,582 $4,834,627 $4,366,624 $4,435,681 $4,072,371 $4,158,104 (6.26%) Licenses & Permits $1,409,704 $1,717,416 $2,019,496 $870,500 $1,388,950 $675,015 (22.46%) Interest Income $55,022 $97,775 $140,239 $140,000 $163,910 $170,000 21.43% Int'gov't./Trans./Misc.$3,622,055 $3,777,938 $4,014,371 $3,817,952 $7,160,559 $3,970,757 4.00% TOTAL REVENUES $36,572,985 $38,611,635 $40,484,262 $41,225,618 $43,615,830 $42,138,677 2.21% Revenue Source - Percentage of General Fund Revenues Average Property Taxes 29.68%28.92%30.61%33.31%31.35%36.19%31.68% Franchise Fees 12.04%11.19%10.70%10.93%10.24%10.80%10.98% Sales & Use Taxes 31.55%32.89%32.66%33.29%29.09%31.72%31.87% Fines & Fees 12.83%12.52%10.79%10.76%9.34%9.87%11.02% Licenses & Permits 3.85%4.45%4.99%2.11%3.18%1.60%3.36% Interest Income 0.15%0.25%0.35%0.34%0.38%0.40%0.31% Int'gov't./Trans./Misc.9.90%9.78%9.90%9.26%16.42%9.42%10.78% TOTAL 100.00%100.00%100.00%100.00%100.00%100.00%100.00% The graph and chart above depicts the five year trend for revenues which support services and operations accounted for in the General Fund.While indicating which revenue sources have experienced an increase or decrease,the chart indicates what percentage of the total revenue stream a source constitutes. While growth in sales tax revenue helps to reduce the dependency on property taxes, sales taxes are more volatile in nature, and therefore are subject to sharp declines in slower economic periods. Through the years the trend now shows sales and use tax to be the largest source of revenues averaging 31.87% of the total.Previously this was property tax which is now the second highest source on average at 31.68% and fines third at 11.02%. Franchise Fees make up approximately 10.98% of total revenues with other sources varying from less than 1%to a little under 11%. Recent trends are showing less reliance on other sources of revenues and more on the sales and use and property taxes. * Includes Penalty and Interest. $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 FY2015 FY2016 FY2017 FY2018 BUD FY2018 EST FY2019 PROPRevenues In MillionsProperty Taxes*Franchise Fees Sales & Use Taxes Fines & Fees Licenses & Permits Interest Income Int'gov't./Trans./Misc. 66 Operating & Maintenance Debt Service Adj. Net Taxable Value Assessed $3,953,691,076 $3,953,691,076 TIF Increment Value $149,223,532 Proposed Tax Rate per $100 Valuation 0.371710 0.090790 Estimated Tax Levy $14,696,265 $3,589,556 Est. Percent of Collection (O&M and I&S)97.50%100.00% General Fund Collections $14,328,858 Ceiling Revenues $826,747 Estimated Fund Collections $15,155,605 $3,589,556 Additional Rate Percent $ Amount Sales Tax Total Operating & Maintenance - General Fund 0.371710 80.37%$15,155,605 2,706,739$ 17,862,344$ Interest and Sinking - Debt Service Fund 0.090790 19.63%$3,589,556 -$ 3,589,556$ TOTAL 0.462500 100.00%$18,745,162 2,706,739$ 21,451,901$ Fiscal Operating &Interest &Total Year Maintenance Sinking Tax Rate 2010 0.360791 0.109209 0.470000 2011 0.343905 0.126095 0.470000 2012 0.345388 0.124612 0.470000 2013 0.355130 0.114870 0.470000 2014 0.360619 0.109381 0.470000 2015 0.364505 0.102995 0.467500 2016 0.366571 0.100929 0.467500 2017 0.363053 0.099447 0.462500 2018 0.361056 0.101444 0.462500 Proposed 2019 0.371710 0.090790 0.462500 PROPERTY TAXES Estimated Revenues FY19 Proposed Fund Distribution 0.000000 0.050000 0.100000 0.150000 0.200000 0.250000 0.300000 0.350000 0.400000 0.450000 0.500000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Proposed 2019Cents Per $100 ValuationTen Year Breakdown of Tax Rate Interest & Sinking Operating & Maintenance 67 General Fund Expenditures Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. City Council 14,980$ 40,680$ 40,680$ 40,680$ -$ 0% City Administration 574,838$ 596,912$ 593,212$ 604,731$ 7,819$ 1% City Secretary 355,690$ 412,918$ 405,828$ 432,205$ 19,287$ 5% Communications/Marketing 13,489$ 23,475$ 16,725$ 16,725$ (6,750)$ (29%) Total - City Administration 958,997$ 1,073,985$ 1,056,445$ 1,094,341$ 20,356$ 2% Finance/Budget 225,151$ 240,938$ 240,513$ 248,954$ 8,016$ 3% Municipal Court 699,822$ 808,974$ 799,444$ 848,515$ 39,541$ 5% Accounting 341,077$ 469,965$ 380,139$ 434,131$ (35,834)$ (8%) Purchasing 91,641$ 95,286$ 73,717$ 103,457$ 8,171$ 9% Total - Finance 1,357,691$ 1,615,163$ 1,493,813$ 1,635,057$ 19,894$ 1% Emergency Management 40,675$ 50,775$ 40,775$ 56,770$ 5,995$ 12% Police Code Compliance 1,566,648$ 1,703,150$ 1,691,468$ 1,754,218$ 51,068$ 3% Police Administration 1,020,744$ 1,068,297$ 1,051,434$ 1,100,434$ 32,137$ 3% Police Patrol 5,239,569$ 5,852,113$ 5,817,982$ 5,880,980$ 28,867$ 0% Police CID 1,714,247$ 1,795,160$ 1,784,467$ 1,745,815$ (49,345)$ (3%) Police Service 1,929,777$ 2,281,586$ 2,239,838$ 2,301,329$ 19,743$ 1% Police Detention 1,507,558$ 1,569,978$ 1,545,278$ 1,633,638$ 63,660$ 4% Total-Police 13,019,218$ 14,321,059$ 14,171,242$ 14,473,184$ 152,125$ 1% Fire Marshal/Education 583,052$ 614,337$ 615,587$ 647,537$ 33,200$ 5% Fire Administration 524,205$ 553,477$ 551,977$ 555,136$ 1,659$ 0% EMS/Suppression 8,772,335$ 9,254,148$ 9,230,148$ 9,319,870$ 65,722$ 1% Total-Fire 9,879,592$ 10,421,962$ 10,397,712$ 10,522,543$ 100,581$ 1% Information Services 306,587$ 352,956$ 347,456$ 682,820$ 329,864$ 93% Human Resources 379,054$ 449,397$ 433,757$ 437,783$ (11,614)$ (3%) Facility Maintenance 1,016,191$ 1,044,176$ 968,436$ 1,095,480$ 51,304$ 5% Library 751,803$ 793,773$ 788,692$ 807,535$ 13,762$ 2% Total - Administrative Services 2,453,635$ 2,640,302$ 2,538,341$ 3,023,618$ 383,316$ 15% Planning & Development 305,928$ 325,492$ 317,613$ 321,777$ (3,715)$ (1%) Inspection Services 364,872$ 395,007$ 392,227$ 395,426$ 419$ 0% Total-Development 670,800$ 720,499$ 709,840$ 717,203$ (3,296)$ (0%) Recreation 600,346$ 725,351$ 714,395$ 722,417$ (2,934)$ (0%) Parks 1,286,136$ 1,457,924$ 1,411,623$ 1,424,511$ (33,413)$ (2%) Swimming Pools 137,329$ 163,460$ 156,460$ 156,460$ (7,000)$ (4%) Senior Center 247,366$ 278,107$ 270,355$ 283,240$ 5,133$ 2% Recreation Admin.70,635$ 79,162$ 79,162$ 82,723$ 3,561$ 4% Total-Parks & Comm Srvcs 2,341,812$ 2,704,004$ 2,631,995$ 2,669,351$ (34,653)$ (1%) Street Maintenance 1,761,557$ 1,955,713$ 1,937,722$ 2,354,700$ 398,987$ 20% Animal Control 276,924$ 315,937$ 287,937$ 307,551$ (8,386)$ (3%) City Engineer 51,556$ 122,735$ 82,735$ 79,324$ (43,411)$ (35%) Total - Public Works 2,090,037$ 2,394,385$ 2,308,394$ 2,741,575$ 347,190$ 15% Legal Services 133,857$ 175,000$ 160,000$ 175,000$ -$ 0% Non-Departmental 5,052,777$ 5,137,266$ 8,467,097$ 5,037,692$ (99,574)$ (2%) Betterment 23,794$ 13,500$ 13,500$ 15,000$ 1,500$ 11% Total - Non-Depart.5,210,428$ 5,325,766$ 8,640,597$ 5,227,692$ (98,074)$ (2%) Total Operating Expenses 37,982,210$ 41,217,125$ 43,948,379$ 42,104,564$ 887,439$ 2% Capital Expenses 1,296,054$ 2,750,528$ 2,123,178$ 2,494,858$ (255,670)$ (9%) Total Expenses 39,278,264$ 43,967,653$ 46,071,557$ 44,599,422$ 631,769$ 1% City Admin 2% Police 32% Fire 23% Development 2% Non-Depart 12% Admin Srvcs 7% Finance 4% Public Works 6% PACS 6%Capital 6%FY2018-2019 68 City Administration  Location & Hours of Operation:  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.  Mission:  To provide our citizens the most efficient services  possible that protect and enhance quality of life, through  planning and visionary leadership.  Accomplishments FY2017‐18:   Maintained a solid financial position including a stable property tax rate. Participated in numerous events and activities for the community, many in conjunction with our neighboring cities and school district as well as local non‐profit agencies. Held citywide Town Hall meetings. Coordinated Board & Commission Appreciation event. Maintained document imaging system for City's legislative records. Completed updates to the Code of Ordinances. Responded to all open records requests within state statute requirements. Worked with the rapidly changing face of media on Euless events and issues. Provided resources for citizens, staff and media to learn more about City issues and services. Completed numerous water, wastewater and street improvements in accordance with the adopted Capital Improvements Plan. Objectives for FY2018‐19:  Maintain solid financial position, which is responsive to the overall economic climate with emphasis on maintaining a stable low tax rate, promotion of a pay‐as‐you‐go strategy when possible in lieu of debt, and maintenance of established reserve levels. Continue to provide a safe community through quality police and fire service. Use a systematic approach to upgrading the City’s infrastructure and facilities using a pay‐as‐you‐go system when possible. Promote community partnerships with neighboring cities, school districts, Tarrant County, DFW Airport, and non‐profit agencies within the area. Continue progress on the development of vacant tracts and seek redevelopment opportunities that will complement the overall vision for Euless. Develop and mentor future leaders to ensure continuity. Maintain a culture of harmony that celebrates various perspectives to produce the best outcomes for our citizens. Maintain the records and minutes of all boards and commissions. Conduct general election. Process public information requests according to state statutes. Evaluate and implement solutions to efficiently track and respond to request from the public. Create new avenues of promotion for water conservation and reclaimed water education. Continue to cultivate a simple philosophy of “Do the right thing… every day.” Issues / Trends:  Economic conditions have improved, but the City still faces budgetary challenges. City personnel and service to citizens remain a top priority. With changing laws, staff training is critical to ensure compliance with state statutes. Expand communication method to citizens by utilizing new trends in technology. General Fund 97.5% City Council 0.1%City Administration 1.4% City Secretary's Office 1.0% Communications /  Marketing 0.0% Budget Appropriation 69 City Administration  Expenditures by Division:  Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  City Council  $           14,980   $                 40,680   $              40,680   $           40,680   $                     ‐  0%  City Administration  $         574,838   $               596,912   $            593,212   $         604,731   $             7,819  1%  City Secretary  $         355,690   $               412,918   $            405,828   $         432,205   $           19,287  5%  Communications/Marketing  $           13,489   $                 23,475   $              16,725   $           16,725   $            (6,750) (29%)  Total City Administration  $         958,997   $            1,073,985   $         1,056,445   $      1,094,341   $           20,356  2%  Division Services:  City Council – The Mayor and City Council, as the legislative branch of city government, are responsible for establishing policy by  adopting ordinances (local laws) and resolutions (statements of official policy) for the city government to be implemented by the City  Manager through the administrative staff.    City Administration – To enhance the City's tradition of professional city management, ensuring the effective use of the City's  resources. To provide support and coordination of legislative and administrative activities. To facilitate the development of priorities  and goals for the City departments. To serve as a link between the City Council and Staff and to see that all policies of the City are  executed. The City Manager is the chief administrative officer for the City of Euless.  The City Manager and staff are responsible for  the preparation, recommendation, and execution of the policies to aid in the efficient delivery of services to the citizens.  City Secretary’s Office – The City Secretary's Office is committed to providing support services to the citizens, the City Council members,  and the City staff in a cost effective and efficient manner. The City Secretary serves at the discretion of the City Council and is  responsible for the City Council meeting minutes and other official records such as ordinances, resolutions, contracts, deeds, liens,  etc.  The City Secretary serves as the chief election official conducting all City elections, as the Records Management Officer  administering the Local Government Records Act, and as the coordinator of the Board and Commission appointments.  Communications/Marketing – The Communications/Marketing office is the citizen, staff, and media link to Euless city government  enabling each to access information, understand local, and regional issues and improve community relations through means of  communication, including cable programming, website, digital and print newsletters, special publications, media relations, special  events, crisis communication, and other proactive marketing effort.  Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  City Administration 3.50  3.50  3.50  3.50   City Secretary 3.50  3.50  3.50  3.50   Total City Administration 7.00  7.00  7.00  7.00     Services Levels:   Maintain G.O. and W&W/W Revenue Bond Ratings at or above Aa2/AA (AA+)   54,250  54,870 55,170   53,500  54,000  54,500  55,000  55,500 FY2017 FY2018 FY2019 Population 3,554 4,001 4,416   ‐  2,000  4,000  6,000 FY2017 FY2018 FY2019MillionsProperty Tax  Base 70 Finance Department General Fund 98.2% Finance / Budget 0.6% Accounting 1.0% Purchasing 0.2% Budget Appropriation Location & Hours of Operation: 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Mission: To providing accurate and timely financial data to management, council, and stakeholders to facilitate the decision making process and regulatory compliance. Accomplishments FY2017-18: • Received Distinguished Budget Award and Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA). • Worked with financial advisors to prepare and issue continuing disclosure documents, perform arbitrage rebate calculations on all applicable bond issues, and issue water and sewer system revenue bonds and certificates of obligation. • Earned a market-based return on the City's investment portfolio while ensuring compliance with remaining investment objectives. • Continued to refine external audit process by updating and utilizing year-end closing and work paper preparation checklists and assignments. • Held three online auctions for proper disposal of assets. • Continued to expand the procurement card program with JPMorgan bank. • Began implementation of document imaging and workflow process project. Objectives for FY2018-19: • Receive Distinguished Budget Award and Certificate of Achievement for Excellence in Financial Reporting from GFOA. • Monitor market conditions and determine feasibility of potential debt refunding or debt issuance. • Optimize return on investment while attaining remaining investment objectives in accordance with established policies. • Monitor advances in and leverage of new technology to automate processes, streamline procedures, and increase efficiency. • Continue work on document imaging and workflow process, and electronic paystub distribution projects. • Continue to identify additional commodities and services that could be placed on an annual agreement with the intent of obtaining lower prices through economies of scale. • Present various training opportunities for staff. • Assist City in detailing the long-ranging financing of Capital Improvement Projects. Issues / Trends: • Closely monitor City compliance with new laws at the federal and state level. • Explore new revenue opportunities, monitor citywide expenditures/expenses, maintain current service levels, and remain competitive in the labor market while working within budgetary constraints and maintaining a stable tax rate. • To continue to provide quality services and achieve operational efficiencies while working within budgetary constraints. • To utilize technology to streamline operations to accomplish more with less. • To attract and retain knowledgeable, professional personnel and provide development opportunities for existing team members. 71 Finance Department Expenditures by Division: Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Finance/Budget $ 225,151 $ 240,938 $ 240,513 $ 248,954 $ 8,016 3% Accounting $ 341,077 $ 469,965 $ 380,139 $ 434,131 $ (35,834) (8%) Purchasing $ 91,641 $ 95,286 $ 73,717 $ 103,457 $ 8,171 9% Total Finance $ 657,869 $ 806,189 $ 694,369 $ 786,542 $ (19,647) (2%) Division Services: Finance / Budget – To establish, monitor, and update the City's fiscal policies to ensure they are both responsive in the current environment and fiscally responsible. Administration performs timely and thorough analysis of new pronouncements and legislation to identify applicability, implementation options, and compliance. Accounting – To plan, collect, record, summarize, and report the results of all financial transactions of the City in a timely manner and in accordance with generally accepted accounting principles; as well as ensure compliance with applicable local, state and federal statutes, bond covenants, grant contracts, and management policies. Purchasing – To maintain continuity of supply to support ongoing services, operations, and construction services. Responsible for advising the user departments of any unusual delays in delivery schedules, and to maintain sufficient quantities of inventoried supplies for the benefit of all City departments. To conduct all purchases in accordance with state laws. To foster an understanding and appreciation of a sound purchasing policy and procedures throughout all departments of the City. Responsible for obtaining the lowest possible price and best value consistent with delivery terms. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Finance/Budget 2.00 2.00 2.00 2.00 Accounting 3.50 4.00 4.00 4.00 Purchasing 1.00 1.00 1.00 1.00 Total Finance 6.50 7.00 7.00 7.00 Services Levels: GFOA Distinguished Budget Award GFOA Certification of Achievement for Excellence in Financial Reporting Collateral Compliance Unmodified Audit Opinion GASB 74 and 77 Implementation 72 Municipal Court  Location & Hours of Operation:  1102 W Euless Blvd.    Mon‐Wed & Fri, 8 a.m. – 5 p.m.  Thursday, 8 a.m. – 6 p.m.    Mission:  The Municipal Court is the judicial branch of the  government of the City of Euless.  The Court shall serve as an  unbiased entity for the adjudication of Class C cases filed.  The  court and its officers are dedicated to the principles of fair and  impartial justice administered with respect and equality.  Accomplishments FY2017‐18:    Victims Impact Panel hosted by Euless Municipal Court and  the City’s Juvenile Case Manager, sponsored and presented  by MADD.   Maintained and managed all cases filed with the Court in a  timely manner.   Continued Community Service Program.    Courtroom Security committee established.      Objectives for FY2018‐19:   Continue to explore and improve processes by maximizing  current software available through technology.   Maintain a high percentage level of entering citations timely  into the court system.   Continue to provide court services to our defendants online,  by telephone, and through mail.  Issues / Trends:     Monitor legislation pertaining to Municipal Court.    Implement changes and procedures set out by the Municipal  Court Judge.                       General Fund 98% Municipal Court 2% Budget Appropriation 73 Municipal Court  Expenditures by Division:   Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Municipal Court  $         699,822   $               808,974  $            799,444  $         848,515   $           39,541  5%  Total Municipal Court  $         699,822   $               808,974  $            799,444  $         848,515   $           39,541  5%    Division Services:  Municipal Court – Provides administrative and clerical support for municipal court proceedings including: the collection of fines, fees,  and state costs; filing citations and complaints; court scheduling; issuing, tracking and clearing warrants; updating and maintaining  court records; and reporting collections, convictions, and statistical data to appropriate state agencies.  Personnel by Division:     Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Municipal Court 7.75  7.75  7.75  7.75   Total Municipal Court 7.75  7.75  7.75  7.75     Services Levels:     25,957  25,061 25,101   24,000  24,500  25,000  25,500  26,000 FY2016 FY2017 FY2018 Cases Filed 16,136 14,216 12,945   ‐  5,000  10,000  15,000  20,000 FY2016 FY2017 FY2018 Arrest Warrants  Issued 74 Police Department Location & Hours of Operation: Administration, Code, Technological Support, Property & Evidence, Records 1102 W Euless Blvd. Mon-Fri, 8 a.m. – 5 p.m. Criminal Investigations 1102 W Euless Blvd. Mon-Fri, 8 a.m. – 6 p.m. Communications, Detention, Emergency Management, Patrol 1102 W Euless Blvd. 24/7 Mission: To provide the citizens of Euless professional, efficient police services including, but not limited to, enforcement of Federal, State, and Local Laws; investigation of criminal offenses; crime prevention; prevention and investigation of traffic accidents; order maintenance; and community social services. Accomplishments FY2017-18: • Provided all police department employees with Crisis Intervention/Mental Health Training. • Received grant funding for incident management software. • Installed equipment and constructed room for a training simulator. • Trained teachers in all public and private Euless schools in Citizens Response to Active Shooter Events training. Objectives for FY2018-19: • Maintain citizens' trust and confidence in their police department by maintaining a high degree of integrity and professionalism among all police employees. • Develop and implement new training simulator program. • Continue Cadet Program, targeting young people 18-25 years of age to develop future, quality police employees. • Increase clearance and stolen property recovery rates. • Expand and improve Citizens Police Academy. • Continue to expand and improve upon the positive relations with the community and local schools. • Decrease the number of residential, commercial, and vehicular burglaries. • Continue goal of decreasing dispatch times to: <1:00 minute for Police priority one calls for service, and <45 seconds for Fire and EMS. Issues / Trends: • Succession planning. • Recruiting quality employees. • Growing demands by Federal, State, and local Emergency Planners. General Fund 67.5% Emergency Management 0.1% Code Compliance 3.9% Administration 2.5% Patrol 13.2% CID 3.9% Service 5.2% Detention 3.7% Budget Appropriation 75 Police Department Expenditures by Division: Proposed FY18 Budget to General Fund Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Emergency Management $ 40,675 $ 50,775 $ 40,775 $ 56,770 $ 5,995 12% Police Code Compliance $ 1,566,648 $ 1,703,150 $ 1,691,468 $ 1,754,218 $ 51,068 3% Police Administration $ 1,020,744 $ 1,068,297 $ 1,051,434 $ 1,100,434 $ 32,137 3% Police Patrol $ 5,239,569 $ 5,852,113 $ 5,817,982 $ 5,880,980 $ 28,867 0% Police CID $ 1,714,247 $ 1,795,160 $ 1,784,467 $ 1,745,815 $ (49,345) (3%) Police Service $ 1,929,777 $ 2,281,586 $ 2,239,838 $ 2,301,329 $ 19,743 1% Police Detention $ 1,507,558 $ 1,569,978 $ 1,545,278 $ 1,633,638 $ 63,660 4% Total Police $ 13,019,218 $ 14,321,059 $ 14,171,242 $ 14,473,184 $ 152,125 1% Division Services: Emergency Management – To identify, prepare for, respond to and recover from any manmade or naturally occurring disaster that may strike the City of Euless. Code Compliance – To provide the Citizens of Euless a safe, healthy, prosperous community in which to live. Administration – To provide the citizens of Euless professional, efficient police services. Patrol – To aggressively, and intelligently provide the most effective service possible, in partnership with the community, to improve the quality of life for all of the citizens of Euless. Criminal Investigations (CID) – To investigate alleged and suspected criminal activity reported to the Department. Personnel conduct follow-up investigations on criminal offenses, interview victims and witnesses, interrogate suspects, perform crime scene processing and evidence recovery, execute search and arrest warrants, prepare criminal cases for prosecution, and provide courtroom testimony. Service – To provide twenty-four-hour emergency communications, including 911, the processing and storage of all police records, technical support and assistance for information management, and instruction to the Citizens Police Academy and other local groups. Detention – To provide safe, secure and sanitary environment for persons being held in the detention facility. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Police Code Compliance 15.00 15.00 15.00 15.00 Police Administration 6.00 6.00 6.00 6.00 Police Patrol 44.00 45.00 45.00 45.00 Police CID 13.00 13.00 13.00 13.00 Police Service 21.00 22.00 22.00 22.00 Police Detention 17.00 17.00 17.00 17.00 Total Police 116.00 118.00 118.00 118.00 Services Levels: 2016 2017 2018 Citizen Requests for Police Service 24,753 23,857 23,561 Officer Initiated Activity 55,391 54,531 53,729 Officer Initiated Traffic Stops 22,990 23,410 23,783 Officer Assigned as back-up on Traffic Stop 2,940 2,413 2,515 911 Calls Received 22,781 23,008 25,388 Non 911 Calls Received 75,497 71,366 74,362 Volations Investigated by Code Officers 3,455 3,065 2,884 Total Police Activity 207,807 201,650 206,222 Police Department Activity 76 Fire Department  Location & Hours of Operation:   Administration, 201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.  Fire Station 1   201 E Ash Ln.  24/7  Fire Station 2  1515 Westpark Way  24/7  Fire Station 3  202 S Main St.  24/7    Mission:  To provide the highest level of professional and  knowledgeable response to emergency calls and protection to  the community through life safety and community support  services.    Accomplishments FY2017‐18:    • Added a part‐time fire inspector to maintain commercial fire  service inspections during present elevated economic  growth.  • Staffed Squad 55 an average of 84% of the time.  • Purchased and installed ambulance stretcher loading  system.  • Purchased and installed bunker gear extractors at Fire  Stations 1 and 2 to reduce carcinogen exposure.  • Installed theft deterrent systems in all vehicles.  • Specified, planned, and placed in service a new 100’  platform truck housed at Fire Station 3.  • Euless maintained Insurance Service Office (ISO) #1 Public  Protection Rating (PPC) during recent community evaluation  with an effective date of September 1, 2017.  Objectives for FY2018‐19:  • Look for methods and processes to reduce expenditures  when possible while maintaining high level of services.  • Staff Squad 55 at 75% or more.   Continue to maintain overall  response times of 5:30‐5:35 for 100% of emergency calls.  • Continue officer development and succession planning.  • Monitor the emergency deployment model and adjust as  needed as the Midtown Express project impacts travel  throughout the City.  • Attempt to maintain annual apartment inspections at 20%  annually.  • Upgrade technology in reporting systems, paperless check‐ offs, scheduling, inspections, and pre‐fire plans.  • Spec and place in service a new ambulance and Fire  Inspector vehicle.  Issues / Trends:    • Prepare for growth and development of the City by analyzing  and evaluating the potential demand on the Fire  Department and resource deployment.   • Continue to monitor newest trends in patient care through  review and evaluation of medical protocols.  • Increased training demands due to the required  certifications, for personnel and regional involvement, in the  Northeast Fire Department Association (NEFDA) and Tarrant  County.  • Continued increased demands on the Fire Marshal’s Office  due to increases in development and public education  related areas.     General Fund 76% Fire Marshal / Education 2%Administration 1% EMS / Suppression 21% Budget Appropriation 77 Fire Department  Expenditures by Division:          Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Fire Marshal/Education  $                     583,052   $             614,337   $            615,587   $                      647,537   $                33,200  5%  Fire Administration  $                     524,205   $             553,477   $            551,977   $                      555,136   $                   1,659 0%  EMS/Suppression  $                  8,772,335   $          9,254,148  $         9,230,148  $                   9,319,870   $                65,722  1%  Total Fire  $                  9,879,592   $        10,421,962  $       10,397,712  $                10,522,543   $              100,581 1%    Division Services:  Fire Marshal /Education ‐ To maintain fire prevention, fire inspection, fire investigation, and fire education programs in the community.    Administration – Responsible for the personnel management, budget, payroll, research and development, records management,  public education, and oversight of the department.  EMS/Suppression – To effectively deliver hazard emergency mitigation and emergency medical service to those who call within the  response area. These services are delivered from three stations located strategically throughout the City for optimum response.   Services are targeted to preserve life and protect property.    Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Fire Marshal 4.00  4.00  4.00  4.00   Fire Administration 4.00  4.00  4.00  4.00   EMS/Suppression 67.00  67.00  67.00  67.00   Total Fire 75.00  75.00  75.00  75.00     Services Levels:  4445 4675 4716 210 210 297 FY2016 FY2017 FY2018 Emergency Calls In‐City Mutual Aid 2077 2045 2550 110 141 186369445 508 FY2016 FY2017 FY2018 Fire Marshal Activities Fire / Bldg. Plans Received DRC/Construction Meetings Inspections 78 Administrative Services Department  Locations & Hours of Operation:    Information Services  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 7 p.m.  Human Resources   201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.  Facility Maintenance   1314 Royal Parkway   Mon‐Fri, 7:30 a.m. – 4:30 p.m.  Library   1100 Westpark Way  Mon‐Thu, 9 a.m. – 8 p.m.; Fri‐Sat, 9 a.m. – 5 p.m.;   Sun., 1 p.m. – 5 p.m.    Mission:  To maintain and improve the quality of living for  residents and organizational efficiency by managing various  activities of the City.    Accomplishments FY2017‐18:     Performed Fire and Police Department promotional testing.   Continued to streamline new employee orientation sessions  to promote employee assimilation.   Converted several paper‐based processes to electronic  forms with approval workflow.   Began migration to Microsoft Office 365 cloud services.   Introduced major upgrades to GIS online map offerings.   Assured continuation of a high level of service during the  Library remodel by moving Library operations to a  temporary facility.   Launched the Think Tank Mobile Science, Technology,  Engineering and Math (STEM) Lab in partnership with the  cities of Hurst, Bedford, and HEB ISD.   Replaced generator at Fire Station 2.   Remodeled Old Fire Station 2 to accommodate the  temporary Library location.   Replaced carpet in the Fire Administration and Purchasing  building.   Relocated City records storage to the Purchasing building.    Replaced exterior bollard lights and interior atrium and  stairwell lights at the Police and Courts building.   Continued conversion of parking lot lights to LED fixtures.  Objectives for FY2018‐19:   Complete email system migration to Microsoft Office 365.   Expand Wi‐Fi coverage to select public parks.   Incorporate annual hardware/software replacement in  operating budget rather than one‐time allocation.   Utilize the Think Tank mobile STEM Lab at a minimum of six  outreach and community events.   Continue various lighting, carpeting, roofing, and HVAC  system replacements or enhancements.     Begin remodel of the Library building.    Roof restoration at the Finance building.   Install generator at Public Works.   Locker room drainage and HVAC improvements at Euless  Family Life Center.    Continued reduction in electrical usage.  Issues / Trends:     Stay abreast of federal and local changes in health care and  labor policies.   Introduction of Internet of Things (IoT), and sensor  technology to monitor remote assets.   Continue to enhance network security for critical systems.   Increased interest in streaming formats, and the Library’s  temporary move, will continue to affect circulation.   Upgrade facility security‐access systems.  General Fund 93% Information Services 2%Human Resources 1% Facility Maintenance 2% Library 2% Budget Appropriation 79 Administrative Services Department  Expenditures by Division:          Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Information Services  $                 306,587   $                 352,956   $                 347,456   $                 682,820   $              329,864  93%  Human Resources  $                 379,054   $                 449,397   $                 433,757   $                 437,783   $               (11,614) (3%)  Facility Maintenance  $              1,016,191   $              1,044,176   $                 968,436   $              1,095,480   $                51,304  5%  Library  $                 751,803   $                 793,773   $                 788,692   $                 807,535   $                13,762  2%  Total Administrative Services  $              2,453,635   $              2,640,302   $              2,538,341   $              3,023,618   $              383,316  15%    Division Services:  Information Services – To provide timely and competent computer services to City departments.  Provide in‐house support for both  software and hardware, and assist other departments in systems selection, implementation, and operation.  Human Resources – Recruitment, hiring, orientation, compensation, benefit administration, safety and risk management and  communications. Ensures compliance with mandates established by the City of Euless, State of Texas, and United States Government.  Facility Maintenance – To provide the citizens of Euless and City staff with safe and accessible facilities. To maintain the City's  investment in facility structures both interior and exterior, building control equipment, interior environmental controls, security  systems, and lighting control devices.   Library – To serve the continuing informational, educational, cultural, and leisure needs of residents of all ages.  To provide the  community with the best possible materials in various formats.  To promote the joy of reading and learning.   Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Information Services 1.00  1.00 1.00 1.00  Human Resources 3.50  3.50  3.50  3.50   Facility Maintenance 3.50  4.00  4.00  4.00   Library 9.00  9.00  9.00  9.00   Total Administrative Services 17.00  17.50 17.50 17.50    Services Levels:  557  488 499   440  460  480  500  520  540  560  580 FY2016 FY2017 FY2018ThousandsLibrary Items Circulated 101 86 80   ‐  20  40  60  80  100  120 FY2016 FY2017 FY2018ThousandsLibrary Holdings 80 Planning & Development Department  Location & Hours of Operation:  Planning and Engineering Building  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  Planning and Development is primarily responsible  for facilitating the City's property development through the  land use plan. The department reviews site plans for proposed  projects, issues building permits, processes zoning variance  requests, and continually assesses the City's land use plan for  future development and redevelopment of the City.    Accomplishments FY2017‐18:     Facilitated over fifty‐one residential and commercial cases  affecting 324 acres of property.   Among these cases were three new hotel developments and  one hotel redevelopment.   Two new single‐family residential Planned Developments  located at Westpark Way and W Pipeline Road (Lonestar  Estates) and at Midway Drive and Fuller‐Wiser Road  (Midway Square Estates) were approved.   Coordinated final plat and site plan approvals, and initial  construction of the Founders Parc Mixed‐Use Development  project.   Coordinated final plat and site plan approvals, and  continued construction within the Glade Parks Mixed‐Use  Planned Development project, including six new  restaurants, three new retail stores, and completion of the  Lifestyle area.   Objectives for FY2018‐19:   Continue to effectively administer inspection and review of  construction within the Glade Parks, Founders Parc, and  RiverWalk! Planned Developments.   Update a development process public information packet,  which outlines the steps from initial submittal to approval.   Conduct land use analysis to evaluate remaining  undeveloped land for potential of highest and best use and  provide feedback to determine potential need for rezoning.    Perform all inspections within 24 hours of request.   Provide comments on all plans reviewed within 10 business  days of submittal.   Provide weekly in‐house training and formal training as  needed for inspection staff.   Provide additional on‐line services, applications, and  information.   Complete verification of state credentials as required by  new state law.   Implement electronic reporting of inspections in the field to  provide improved customer service and reduce staff time.  Issues / Trends:     Construction activity levels will remain strong with several  residential and commercial developments.   With Euless nearing build‐out, coupled with many analysts  belief that the current development cycle is beginning to  slow, the workload demands created to get new projects  through the development process, complete plan review,  and construction inspections should begin to decrease a bit.    General Fund 98.4%Planning &  Development 0.7% Inspection Services 0.9% Budget Appropriation 81 Planning & Development Department  Expenditures by Division:   Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Planning & Development  $         305,928   $               325,492  $            317,613  $         321,777   $            (3,715) (1%)  Inspection Services  $         364,872   $               395,007  $            392,227  $         395,426   $                419  0%  Total Planning & Dev.  $         670,800   $               720,499  $            709,840  $         717,203   $            (3,296) (0%)    Division Services:  Planning & Development – To guide the growth and redevelopment of the City, in a well‐planned and sustainable manner, whereby  enhancing the quality of life for residents while encouraging future economic development.  To assist the City Council and Planning  and Zoning Commission in the preparation of long and short range plans; to help guide the City’s future physical development; and to  assist in the planning, preparation, maintenance, coordination and enforcement of land development policies, regulations, and  guidelines. Coordinate the activities of and prepare agendas, packets and minutes for a variety of Boards and Commissions. Assist  developers and citizens with applications for various development activities.  Inspection Services – To evaluate, recommend, and enforce minimum standards to safeguard life or limb, health, property, and public  welfare by regulating and controlling the design, construction, quality of materials used and occupancy, location, and maintenance of  all buildings and structures within the City of Euless and certain equipment specifically regulated. To regulate thorough plan reviews  and field inspections, the initial construction, subsequent remodeling, and occupancy of all buildings and structures within in the City  of Euless.    Personnel by Division:    ACTUAL BUDGETED ESTIMATED BUDGETED    FY17  FY18  FY18 FY19  Planning & Development 3.00  2.50  2.50  2.50   Inspection Services 4.00  4.00  4.00  4.00   Total Planning & Dev. 7.00  6.50  6.50  6.50     Services Levels:  84  98 92   70  80  90  100 FY2016 FY2017 FY2018 Certificates of Occupancy  Issued 9,450 9,300  10,374   8,500  9,000  9,500  10,000  10,500 FY2016 FY2017 FY2018 Inspections 82 Parks & Community Services Department  Locations & Hours of Operation:    Administration  1314 Royal Parkway  Mon‐Fri, 8 a.m. – 5 p.m.  Parks Department  1997 S Pipeline Rd.  Mon‐Fri, 7 a.m. – 3:30 p.m.  Simmons Center  508 Simmons Dr.  Available for rent, Fri‐Sun, 9 a.m. – 11 p.m.  Euless Family Life Center  300 W Midway Dr.  Mon‐Thurs, 5 a.m. – 9 p.m.; Fri, 5 a.m. – 8 p.m.;   Sat, 8 a.m. – 6 p.m.; Sun, noon – 6 p.m.  Senior Center   Mon‐Wed & Fri, 6:30 a.m. – 4 p.m.; Thurs, 6:30 a.m. – 9 p.m.  Natatorium   Mon‐Thur 10:30 a.m. – 8:30 p.m.; Fri 10:30 a.m. – 5 p.m.;          Sat, 10:30 a.m. – 3:30 p.m.; Sun noon – 3:30 p.m.  Aquatics Center   Seasonal Hours  Splash Island  600 S Main St.  Seasonal Hours  Wilshire Pool  201 Sierra Dr.  Seasonal Hours    Mission:  To provide quality parks and leisure activities for  citizens and to provide direction, leadership and support to the  Parks and Leisure Services Board, Historical Preservation  Committee, and the Economic Development Corporation by  promoting the benefits of parks and recreation to the  community through programming, planning, preservation, and  professional staff development.    Accomplishments FY2017‐18:    • Revised Standard Operating Procedures for each division.  • Improved program offerings at the Senior Center.  • Improved ventilation issues at the Natatorium.  • Improved registration procedure for swim lessons.  • Installed new recumbent bikes, and purchased new activity  tables for the Senior Center.  Objectives for FY2018‐19:  • Continue to look for new and exciting classes and programs  for our citizens.  • Increase overall quality of class and program offerings.   • Develop relationships with our patrons to increase overall  customer service experience.  • Ensure cleanliness of facilities.  • Improve overall quality of the parks system by making  necessary improvements that meet the needs of our  community.  • Expand our vision of the parks system to meet the growing  demands of a changing demographic.   Issues / Trends:    • Ability to provide additional rental/meeting room space for  citizens and organizations with long‐standing relationships  with the City, such as the DFW Writer’s Club.  • Aging pool at Wilshire.  • Hard to find parts for mechanical equipment at Splash  Island.  • Parks are aging and assessments need to be made to  determine parks usage to provide the best experience.   • Being able to protect our parks system from continued  erosion that occurs after each major rain event.  General Fund 94.0% Recreation 1.6% Parks 3.2% Aquatics 0.4% Senior Center 0.6% Recreation Admin. 0.2% Budget Appropriation 83 Parks & Community Services Department  Expenditures by Division:          Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Recreation  $                 600,346   $                 725,351   $                 714,395   $                 722,417   $                 (2,934) (0%)  Parks  $              1,286,136   $              1,457,924   $              1,411,623   $              1,424,511   $               (33,413) (2%)  Aquatics  $                 137,329   $                 163,460   $                 156,460   $                 156,460   $                 (7,000) (4%)  Senior Center  $                 247,366   $                 278,107   $                 270,355   $                 283,240   $                   5,133  2%  Recreation Administration  $                    70,635   $                    79,162   $                    79,162   $                    82,723   $                   3,561  4%  Total Parks & Community Services  $              2,341,812   $              2,704,004   $              2,631,995   $              2,669,351   $               (34,653) (1%)    Division Services:  Recreation – Encourages a healthy and positive lifestyle through exemplary fitness and recreational programs.  Parks – Provides safe and aesthetically pleasing parks, amenities, and leisure opportunities thereby contributing to a wholesome  lifestyle.   Aquatics – Promotes recreation and leisure opportunities for citizens of all ages and skill levels and enhances the quality of life of the  community.   Senior Center – Furnishes a friendly environment for seniors to stimulate their minds, strengthen their bodies, and engage in  community.  Recreation Admin. – Provides direction, leadership, and support to the Parks and Leisure Services Board, Historical Preservation  Committee, and the Economic Development Corporation.  Promotes the benefits of parks and recreation to the community through  programs, planning, preservation, and professional staff development.    Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Recreation  6.50  6.50  6.50  6.50   Parks 11.00  11.00  11.00  11.00   Senior Center 2.00  2.00  2.00  2.00   Recreation Administration 1.00  1.00  1.00  1.00   Total Parks & Community Services 20.50  20.50  20.50  20.50     Services Levels:   43,146 43,355 45,493 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 FY2016 FY2017 FY2018 Senior Center Attendance 46,158 40,971 38,209 1,738 1,504 1,249 14,554 14,465 12,582 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 FY2016 FY2017 FY2018 Aquatics Attendance Aquatics Center Wilshire Pool Natatorium 84 Public Works Department  Locations & Hours of Operation:    Streets  1513 Westpark Way  Mon‐Fri, 8 a.m. – 5 p.m.  On‐call 24/7  Animal Control  1517 Westpark Way  Mon, Tues, Thurs, Fri, 7 a.m. – 4 p.m.  Wed, 7 a.m. – 6 p.m.  Sat, 9 a.m. – 2 p.m.  On‐call 24/7  Engineering  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  To improve the safety and quality of living for  residents by managing the maintenance of streets, sidewalks,  and the storm drainage system, and to compassionately and  responsibly care for stray, abandoned, and surrendered  animals through the Animal Services Department.    Accomplishments FY2017‐18:     Used private vendors to supplement City forces with  concrete work, road striping, traffic signals, and street  paving.   Concentrated on preventative street maintenance program  based on the Infrastructure Management Services (IMS)  report.   Provided continuing education for staff.   Encouraged adoption from the shelter through Euless  publications, web site, and participation at Trinity Gap  Rescue events.   Completed 43rd year of Community Development Block  Grant (CDBG) project construction.   Completed FY18 Sanitary Sewer project.  Objectives for FY2018‐19:   Complete IMS street maintenance program.    Complete 44th year of CDBG project construction.   Continue to provide continuing education for staff.   Explore new avenues for adoption from the shelter.   Continue existing adoption efforts through Euless  publications, web site and participation at Trinity Gap  Rescue events.   Expand in‐house street paving with new paver.   Begin wall replacement project.   Complete Bear Creek/Fuller Wiser/Ash Lane road project.   Incorporate annual street maintenance in operating budget  rather than one‐time allocation.  Issues / Trends:     Increase of streets reaching the end of their useful life with  many requiring extensive curb and gutter repairs and  Americans with Disabilities Act (ADA) ramp upgrades.   Increased price of petroleum based products including  asphalt.    Utilize contract labor when more efficient.   Construction unit bid prices show a slow inflationary trend.     General Fund 93.8% Streets 5.3% Animal Control 0.7% Engineering 0.2% Budget Appropriation 85 Public Works Department  Expenditures by Division:          Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Street Maintenance  $              1,761,557   $              1,955,713  $              1,937,722  $              2,354,700   $              398,987  20%  Animal Control  $                 276,924   $                 315,937  $                 287,937   $                 307,551   $                 (8,386) (3%)  City Engineer  $                    51,556   $                 122,735  $                    82,735  $                    79,324   $               (43,411) (35%)  Total Public Works  $              2,090,037   $              2,394,385  $              2,308,394  $              2,741,575   $              347,190  15%    Division Services:  Street Maintenance – Maintains safe driving conditions and prolong the material life of City streets through aggressive preventative  maintenance. Performs curb, gutter, street, and sidewalk repairs; installation and replacement of street and traffic control signs; right‐ of‐way maintenance; and drainage maintenance.   Animal Control – Provides animal control services to protect the health, safety, and welfare of both people and animals efficiently and  professionally.  Enforces City ordinances and regulations concerning pets and other animals. Provides public outreach to citizens and  businesses through public education, training in schools, and community organizations.  City Engineer – Provides a safe and efficient street and thoroughfare network, which includes proper functioning of all traffic signals,  signs, and installation of streetlights throughout the City.  Inspects all Public Works construction within the City and review  development plans and studies for regulation compliance, engineering design, safety, and health concerns.  Conduct acquisition of  properties, right‐of‐way, and easements and verifies legal documents.    Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Street Maintenance 10.50  10.50  10.50  11.50   Animal Control 3.00  3.00  3.00  3.00   City Engineer  0.50  1.00  1.00  1.00   Total Public Works 14.00  14.50  14.50  15.50     Services Levels:     ADA/TSA Infrastructure Improvements Completed      FY2018 Street Overlay Completed      86 Non‐Departmental  Location & Hours of Operation:  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  To define the costs in the budget that may not be  specifically identifiable to any operational budget.    Accomplishments FY2017‐18:     Provided funding for infrastructure improvements.   Provided funding for one‐time capital purchases.   Provided funding for computer and equipment  replacements.  Objectives for FY2018‐19:   Provide funding for facility improvements.   Provide funding for one‐time capital purchases.  Issues / Trends:     Balancing rising cost of infrastructure and equipment  purchases with available funds.   Identifying resources to cash flow capital purchases.  General Fund 82.7% Non‐Departmental 11.7% Capital 5.6% Budget Appropriation 87 Non‐Departmental  Expenditures by Division:           Proposed FY18 Budget to   General Fund Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Legal Services  $                 133,857    $                 175,000   $                 160,000   $                 175,000   $                            ‐  0%  Non‐Departmental  $              5,052,777   $              5,137,266   $              8,467,097   $              5,037,692   $               (99,574) (2%)  Betterment  $                    23,794   $                    13,500  $                    13,500  $                    15,000   $                   1,500  11%  Total Non‐Dept.  $              5,210,428   $              5,325,766   $              8,640,597   $              5,227,692   $               (98,074) (2%)  Capital Expenses  $              1,296,054   $              2,750,528   $              2,123,178   $              2,494,858   $            (255,670) (9%)    Division Services:  Non‐Departmental – This activity is administered by the Finance Department and funds various charges that are not defined, or  directly related to, any specific department or activity of the City.  Examples of costs here include: electrical; general liability  insurance; audit, tax appraisal, and collection services; and contingencies.   These types of expenditures affect all budgets and are  generally not prorated. All one‐time appropriations are accounted for in this department in order to maintain stable department  budgets from year to year.  Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Non‐Departmental 0.50  0.50  0.50  0.00   Total Non‐Dept. 0.50  0.50  0.50  0.00     Services Levels:  54,250  54,870  55,170   53,600  53,800  54,000  54,200  54,400  54,600  54,800  55,000  55,200  55,400 FY2017 FY2018 FY2019 Population 3,554 4,001 4,416   ‐  1,000  2,000  3,000  4,000  5,000 FY2017 FY2018 FY2019MillionsProperty Tax  Base 88                       89 Enterprise Funds 90 $ 6,625,273 $ 7,688,209 $ 7,688,209 $ 7,757,304 REVENUES Property Tax $ - $ - $ - $ - Gross Receipts Tax $ - $ - $ - $ - General Sales Tax $ - $ - $ - $ - Selective Sales Tax $ - $ - $ - $ - Fines/Fees/Penalties $ 246,666 $ 237,500 $ 237,500 $ 237,500 License & Permits $ - $ - $ - $ - Interest Income $ 71,410 $ 32,750 $ 72,121 $ 83,000 Intergovernmental Revenue $ - $ - $ - $ - Charges for Service $ 29,264,668 $ 30,865,128 $ 30,779,589 $ 32,190,635 Miscellaneous/Rental Income $ 164,703 $ 52,858 $ 133,277 $ 79,521 Other Financing Sources $ - $ - $ - $ - Revenues before Transfers 29,747,447$ 31,188,236$ 31,222,487$ 32,590,656$ Transfer from other Funds $ 1,920,586 $ 2,002,758 $ 1,992,198 $ 2,043,863 TOTAL REVENUES 31,668,033$ 33,190,994$ 33,214,685$ 34,634,519$ TOTAL RESOURCES 38,293,306$ 40,879,203$ 40,902,894$ 42,391,823$ EXPENDITURES Personal Services $ 8,033,785 $ 8,819,619 $ 8,720,312 $ 8,937,456 Professional/Technical Services $ 2,384,829 $ 2,527,961 $ 2,567,311 $ 2,614,582 Contractual Services $ 366,395 $ 379,265 $ 395,794 $ 417,730 Utilities $ 11,635,800 $ 12,741,703 $ 12,676,086 $ 13,543,420 Maintenance $ 452,835 $ 488,391 $ 485,671 $ 531,631 Other Services/Contingencies $ 43,390 $ 100,000 $ 99,633 $ 88,500 Insurance $ 23,584 $ 58,000 $ 37,000 $ 72,000 General & Administrative $ 221,189 $ 242,365 $ 236,260 $ 244,980 Rebates/Incentives $ - $ - $ - $ - Supplies $ 1,889,820 $ 1,916,349 $ 1,862,951 $ 1,876,095 Capital Purchases (Equipment) $ 216,543 $ 577,223 $ 347,099 $ 653,427 Debt Service/Bank Charges $ 3,133 $ 6,000 $ 6,000 $ 6,000 Expenditures before Transfers $ 25,271,303 $ 27,856,876 $ 27,434,117 $ 28,985,821 Transfers to Other Funds $ 5,333,794 $ 5,966,469 $ 5,711,473 $ 6,247,654 TOTAL EXPENDITURES $ 30,605,097 $ 33,823,345 $ 33,145,590 $ 35,233,475 ENDING FUND BALANCE 7,688,209$ 7,055,858$ 7,757,304$ 7,158,348$ Total expenditures include capital purchases for equipment and transfers to capital improvement projectswhich are funded from excess reserves above the required 75 day reserve level. FY2019 includes a reduction in fund balance for the use of excess reserves. ACTUAL FY2016-17 ESTIMATED FY2017-18 BUDGET FY2018-19 BEGINNING FUND BALANCE BUDGET FY2017-18 ENTERPRISE FUND SUMMARY 91 Water & Wastewater Revenues Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Revenues FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Interest Income(1)63,125$ 30,000$ 60,000$ 75,000$ 45,000$ 150% Sanitation 243,528$ 218,400$ 224,045$ 224,045$ 5,645$ 3% Water Service 12,517,495$ 13,532,489$ 13,532,489$ 14,267,612$ 735,123$ 5% Wastewater Service 8,386,398$ 9,085,715$ 9,085,715$ 9,548,020$ 462,305$ 5% Reclaimed Water Service 511,593$ 475,984$ 475,984$ 563,251$ 87,267$ 18% New Meters(1)77,862$ 55,000$ 60,000$ 55,000$ -$ 0% Reconnect Fees(1)237,128$ 230,000$ 235,000$ 235,000$ 5,000$ 2% Inspection Fees(1)393,976$ 150,000$ 200,000$ 150,000$ -$ 0% Miscellaneous(1)55,406$ 35,000$ 40,000$ 35,000$ -$ 0% Penalties 239,864$ 230,000$ 230,000$ 230,000$ -$ 0% Initiations/Transfer Fees(1)32,495$ 30,000$ 30,000$ 30,000$ -$ 0% Recycling Fees 371,578$ 384,282$ 384,282$ 384,282$ -$ 0% Use of Rate Stabilization 210,840$ 266,772$ 266,772$ 266,609$ (163)$ (0%) Rate Stabilization Rebate (210,840)$ (266,772)$ (266,772)$ (266,609)$ 163$ (0%) TOTAL REVENUES 23,130,448$ 24,456,870$ 24,557,515$ 25,797,210$ 1,340,340$ 5% Use of Reserves -$ 521,230$ -$ 473,921$ (47,309)$ (9%) TOTAL RESOURCES 23,130,448$ 24,978,100$ 24,557,515$ 26,271,131$ 1,293,031$ 5% (1) Water & Wastewater Revenue line items are aggregated in graph under "Other" The above graph shows the sources of revenues in the Water &Wastewater Fund which are generated by services provided to the citizens of Euless for recycling, sanitation, water and wastewater. The "Other" amount represents 2% of total revenues and is an aggregate of several revenue sources as indicated in the table below. The above chart details revenues for the past, current, and upcoming fiscal years, as well as expected increases and decreases in service fee collections within the past year. The Water and Wastewater 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. Sanitation 1% Recycling 2% Other (1) 2% Water 55% Reclaimed Water 2% Penalties 1% Wastewater 37% FY2018-2019 92 Water & WasteWater Fund FY19 revenue assumptions revenue source assumptions Interest Income Projected to increase based on market outlook and investable balances. Sanitation Services Increase based on approved rate structure. Water Service Consumption is estimated to increase 1% over FY2018 year- end projections. Proposed increase of 30¢ per 1000 gallons with a 75¢ increase in the base rate for residential customers. Wastewater Service Anticipated treatment volume is relatively flat with FY2018 year- end projections. Proposed increase of 29¢ per 1000 gallons with a 25¢ increase in the base rate. Reclaimed Water Service Revenue projections are based on anticipated cost increase and expansion of service area. Rates per tier are based on 87% of the potable water rate per tier. Sale of New Meters Projected to remain flat with FY2018 budget. Reconnect Fees Projected to remain flat with FY2018 estimated. Inspection Fees Projected to remain flat with FY2018 budget. Miscellaneous Projected to remain flat with FY2018 budget. Penalties Projected to remain flat with FY2018 budget. Initiation & Transfer Fees Projected to remain flat with FY2018 budget. Recycling Fees Projected to remain flat with FY2018 budget. 93 Water & Wastewater Expenditures Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Water Office 449,344$ 474,981$ 474,981$ 476,243$ 1,262$ 0% Total-Finance 449,344$ 474,981$ 474,981$ 476,243$ 1,262$ 0% City Engineer 298,682$ 364,501$ 364,501$ 369,821$ 5,320$ 1% Water Production 7,678,566$ 7,961,337$ 7,956,337$ 8,446,471$ 485,134$ 6% Water Distribution 976,728$ 1,089,964$ 1,089,964$ 1,177,137$ 87,173$ 8% Wastewater Treatment 3,781,276$ 4,542,215$ 4,543,515$ 4,884,966$ 342,751$ 8% Meter Reading 63,344$ 68,847$ 68,847$ 70,396$ 1,549$ 2% Total-Public Works 12,798,596$ 14,026,864$ 14,023,164$ 14,948,791$ 921,927$ 7% Recycling 25,058$ 41,300$ 41,300$ 41,300$ -$ 0% GIS/Information Services 570,333$ 632,601$ 632,601$ 684,857$ 52,256$ 8% Legal Services 64,596$ 85,000$ 85,000$ 85,000$ -$ 0% Non-Departmental 8,309,044$ 9,177,888$ 8,901,786$ 9,528,769$ 350,881$ 4% Total-Non Departmental 8,969,031$ 9,936,789$ 9,660,687$ 10,339,926$ 403,137$ 4% Total Operating Expenses 22,216,971$ 24,438,634$ 24,158,832$ 25,764,960$ 1,326,326$ 5% Capital Expenses 13,257$ 521,230$ 322,309$ 473,921$ (47,309)$ (9%) Total Expenses 22,230,228$ 24,959,864$ 24,481,141$ 26,238,881$ 1,279,017$ 5% The graph above indicates the expenditure amounts disbursed to the individual departments within the Water and Wastewater Fund. These expenditures reflect the cost incurred by the City for the services provided to Euless citizens. The chart details the expenditures over the past, current, and upcoming fiscal years, as well as the expected increases and decreases in costs within the past year. These expenditures account for the cost associated with the acquisition, operation and maintenance of a municipal water and wastewater utility system. Finance 2% Public Works 2% Water Production 32% Water Distribution 4% Wastewater Treatment 19% GIS 2% Capital 2% Non-Depart. 37%FY2018-2019 94 Finance Department  Location & Hours of Operation:  201 N Ector Dr.  Mon‐Fri, 8 a.m. – 5 p.m.  Mission:  To provide all customers the best service possible  for prompt administration of their utility accounts.   Accomplishments FY2017‐18:    Generated 11,029 work orders including consumption verification, customer turn‐ons/offs, meter/transponder  change out, and other service related orders.  Completed billing and collection conversion to new automated metering system.  Rolled out an online customer services portal that aides customers in monitoring water usage.  Outsourced printing and mailing of bills. Objectives for FY2018‐19:  Continue focus on quality customer service. Take advantage of available computer training of automated metering system to better assist customers and increase efficiency of system. Continue to introduce customers to online portal. Issues / Trends:   Operation and understanding of new automated system by staff and customers.  Water / Wastewater  Fund 98% Water Office 2% Budget Appropriation 95 Finance Department  Expenditures by Division:          Proposed FY18 Budget to   Water & Wastewater Actual Budget Estimated Budget FY19 Proposed  Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Water Office  $                 449,344   $                 474,981  $                 474,981  $                 476,243   $                      1,262 0%  Total Finance  $                 449,344   $                 474,981  $                 474,981  $                 476,243   $                      1,262 0%    Division Services:  Water Office – To perform in a way that will protect the assets of the City and its citizens. Constantly seek ways to raise the level and  quality of customer service provided through continuous monitoring and training.  The services provided include but are not limited  to: establishing new accounts, reading/rereading meters, auditing/monitoring water consumption, billing, answering customer  inquiries, generating and completing work orders for the Water Department and Public Works Department, posting and depositing  customer payments, processing delinquent accounts, receipting, and posting financial activity for other City departments.    Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Water Office 5.00  5.00  5.00  5.00   Total Finance 5.00  5.00  5.00  5.00     Services Levels:  10,691  12,164  11,029   9,500  10,000  10,500  11,000  11,500  12,000  12,500 FY2016 FY2017 FY2018 Work  Orders 14,164  14,286  14,521   13,900  14,000  14,100  14,200  14,300  14,400  14,500  14,600 FY2017 FY2018 FY2019 Water Accounts *As of October 1 of each year. 96 Public Works Department Locations & Hours of Operation: Engineering & Meter Reading 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Water Production, Distribution, Wastewater Treatment 1513 Westpark Way Mon-Fri, 8 a.m. – 5 p.m. On-call 24/7 Mission: To provide a high level of customer satisfaction by providing reliable safe drinking water supply, water for fire protection, and reliable sewer service for our essential daily needs. Accomplishments FY2017-18: • Maintained wells for increased production. • Completed and distributed the Consumer Confidence Report. • Completed study of City wells. • Responded to water emergencies in a timely fashion. • Continued the water valve maintenance program. • Decreased City wastewater blockages through various cleaning procedures and maintenance techniques. • Provided professional and courteous service to citizens when reading meters or providing repairs. • Completed citywide meter replacement project. Objectives for FY2018-19: • Produce quality water from the City owned well system to supplement Trinity River Authority (TRA) water. • Complete and distribute the Consumer Confidence Report and complete water quality state mandated reports. • Manage the City’s reclaimed water system. • Respond to water emergencies in a timely fashion and repair all substantial water leaks within the first five hours. • Continue to reduce the “unaccounted for” water loss and improve efficiency. • Continue the water valve maintenance program. • Decrease City wastewater blockages through various cleaning procedures and maintenance techniques. • Provide professional and courteous service to citizens when reading meters, responding to water quality complaints, providing repairs, etc. • Replace existing Far North and Fuller wells. Issues / Trends: • Construction unit bid prices show a slow inflationary trend. • Identify funding for future well rehabilitation. • More service providers are placing their utilities underground creating conflicts with existing water lines. • Rising cost of raw water. • Rising cost of sewer treatment. Water / Wastewater Fund 43.0% Engineer 1.4% W Production 32.2%W Distribution 4.5% WW Treatment 18.6%Meter Reading 0.3% Budget Appropriation 97 Public Works Department Expenditures by Division: Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Engineering $ 298,682 $ 364,501 $ 364,501 $ 369,821 $ 5,320 1% Water Production $ 7,678,566 $ 7,961,337 $ 7,956,337 $ 8,446,471 $ 485,134 6% Water Distribution $ 976,728 $ 1,089,964 $ 1,089,964 $ 1,177,137 $ 87,173 8% Wastewater Treatment $ 3,781,276 $ 4,542,215 $ 4,543,515 $ 4,884,966 $ 342,751 8% Meter Reading $ 63,344 $ 68,847 $ 68,847 $ 70,396 $ 1,549 2% Total Public Works $ 12,798,596 $ 14,026,864 $ 14,023,164 $ 14,948,791 $ 921,927 7% Division Services: Engineering – Responsible for the design and construction of a safe water distribution system, an environmentally safe wastewater collection system, an adequate storm drainage system, and management of the floodplains. This division inspects all Public Works construction within the City, and reviews development plans and studies for regulation compliance, engineering design, safety, and health concerns. Conducts acquisition of properties, right-of-way and easements, and verifies legal documents. Water Production – Provides safe drinking water to water customers. Primary functions include water production, valve exercising, treatment of production well water, flushing, water quality sampling, and backflow prevention. Water Distribution – Maintains water mains, valves, hydrants, and service taps. Maintains the water distribution system for maximum delivery of water for consumption and fire protection. Primary functions include water main repairs, continue system maintenance, valve exercising, meter reading, meter replacement, assist water office, and flushing. Wastewater Treatment – Maintains wastewater mains, manholes, and cleanouts. Works to reduce and prevent inflow and infiltration. Responds quickly and courteously to all known wastewater problems. Meter Reading – Performs meter change-outs, performs meter box maintenance and installations, and assists other departments. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Engineering 2.50 3.00 3.00 3.00 Water Production 5.75 5.75 5.75 5.75 Water Distribution 7.25 7.25 7.25 7.25 Wastewater Treatment 7.00 7.00 7.00 7.00 Meter Reading 1.00 1.00 1.00 1.00 Total Public Works 23.50 24.00 24.00 24.00 Service Levels: 147 53 77 0 50 100 150 200 FY2016 FY2017 FY2018 Water Leaks Repaired 239 228 290 - 100 200 300 400 FY2016 FY2017 FY2018 New Meters Set 98                       99 Non-Departmental Water / Wastewater Fund 58.8% Non-Departmental 36.3% GIS 2.6%Capital 1.8%Recycling 0.2% Legal Services 0.3% Budget Appropriation Location & Hours of Operation: 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Mission: To define the costs in the budget that may not be specifically identifiable to any operational budget. Accomplishments FY2017-18: • Completed several infrastructure improvements. • Continued funding for computer replacements. Objectives for FY2018-19: • Provide funding for infrastructure improvements. • Provide funding for new equipment. Issues / Trends: • Balancing rising cost of infrastructure and equipment purchase with available funds. • Identifying resources to cash flow capital purchases. Expenditures by Division: Proposed FY18 Budget to Water & Wastewater Actual Budget Estimated Budget FY19 Proposed Expenditures FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Recycling $ 25,058 $ 41,300 $ 41,300 $ 41,300 $ - 0% GIS/Information Services $ 570,333 $ 632,601 $ 632,601 $ 684,857 $ 52,256 8% Legal Services $ 64,596 $ 85,000 $ 85,000 $ 85,000 $ - 0% Non-Departmental $ 8,309,044 $ 9,177,888 $ 8,901,786 $ 9,528,769 $ 350,881 4% Total Non-Dept. $ 8,969,031 $ 9,936,789 $ 9,660,687 $ 10,339,926 $ 403,137 4% Capital Expenses $ 13,257 $ 521,230 $ 322,309 $ 473,921 $ (47,309) (9%) Division Services: Non-Departmental – Generally, this activity is administered by the Finance Department and funds various charges that are not defined or directly related to any specific department or activity of the City. Examples of costs here include electrical, general liability insurance, audit, and contingencies. Other activities include recycling expenses, Geographic Information Systems (GIS)/Information Services expenses and legal service expenses. These types of expenditures affect all budgets and are generally not prorated. All one- time appropriations are accounted for in the department in order to maintain stable department budgets from year to year. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Information Services 4.00 4.00 4.00 4.00 W&S Non-Departmental 10.00 10.50 10.50 10.00 Total Non-Dept. 14.00 14.50 14.50 14.00 100 Service Center Fund  Location & Hours of Operation:    1314 Royal Parkway  Mon‐Fri, 7 a.m. – 4:30 p.m.    Mission: To maintain and protect the City’s investment in  equipment; provide exemplary and timely internal customer  service to each City department; to be flexible in finding  acceptable solutions for the needs of our customers; to  continuously strive to improve our service and  communications in order to meet our customers’  expectations; and to treat every customer’s request for service  as an opportunity to provide professional and courteous  service.        Accomplishments FY2017‐18:     Added security cameras to the exterior of the Service  Center.    Replaced shop radiant heaters.   Repaired Service Center masonry fence and entrance gates.    Added staff training by investing in the Ford Motor  Company’s STARS internet study, training, and testing  platform.    Upgrade of Fleet refueling software and conversion of  hardware to Wi‐Fi service.    Objectives for FY2018‐19:   Bring Fleet staff up to date on ASE certifications.   Further shop accreditations.    Issues / Trends:     Continued training for technical staff.            Personnel 34.7% Capital 6.3% Transfers 0.4% Operating 58.6% Budget Appropriation 101 Service Center Fund  Fund Summary:          Proposed FY18 Budget to   Enterprise Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Service Center Fund:                   Revenues  $          1,317,509   $       1,284,986   $ 1,282,836   $ 1,309,899   $   24,913  2%       Operating Expenses  $          1,110,299 $       1,284,986 $ 1,232,036 $ 1,309,899   $   24,913 2%      Use of Reserves  $                           ‐$             42,800 $                  ‐$       81,500   $   38,700 90%      Capital Expenses   $                39,532   $             42,800   $       17,800   $       81,500   $   38,700  90%    Services:  Service Center ‐ The Service Center Fund is used to account for the maintenance of the City's motor vehicles. Fleet Operations provides  professional fleet services to departments including but not limited to; vehicle and equipment information, training for City personnel  on equipment safety, correct operational procedures, and coordinate vehicle damage claims for all City departments.  Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Service Center Fund 5.00  5.00  5.00  5.00     Services Levels:         NCTCOG Clean Fleet Silver Award     ASE Blue Seal of Excellence            102 Drainage / Storm Water Utility Fund  Location & Hours of Operation:    1513 Westpark Way   Mon‐Fri, 8 a.m. – 5 p.m.  On‐call 24/7    Mission: To prevent street flooding, and protect life and  property through the maintenance of drainage facilities.    Accomplishments FY2017‐18:     Reviewed the 2006 Drainage System Study to provide the  most current channel information as it relates to actual work  required in several sections of our City’s drainage channels.  Objectives for FY2018‐19:   Continue efforts to keep storm water channels clear of  debris and obstructions to reduce flooding during rain  events.    Continue bridge inspection and repair efforts.   Inspect new construction sites for required storm water  pollution prevention measures.   Continue to update storm water map.   Inspect and make necessary repairs to the storm water  system.   Issues / Trends:     Increased development has boosted the demand for  maintenance to existing creeks and channels.   In conjunction with the new five year Storm Water  Management Program that is expected to be approved in  December of 2018 at the TCEQ stakeholders meeting,  several new demands may require additional funding.     Personnel 68% Capital 9% Transfers 5% Operating 18% Budget Appropriation 103 Drainage / Storm Water Utility Fund  Fund Summary:          Proposed FY18 Budget to   Enterprise Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Drainage Utility System:           Revenues  $              731,978 $           810,212 $    811,162 $    814,000   $      3,788 0%      Operating Expenses  $              649,748 $           807,617 $    807,617 $    813,404   $      5,787 1%      Use of Reserves  $                           ‐$           100,000 $       96,455 $       80,000   $  (20,000)(20%)      Capital Expenses  $                75,000   $           100,000   $    100,000   $       80,000   $  (20,000) (20%)    Services:  Drainage / Storm Water Utility Fund – Used to account for the acquisition, operation, and maintenance of the City's municipal drainage  utility system.  Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Drainage Utility Fund 7.00  8.00  8.00  8.00     Services Levels:  7,822  3,878 5,410   ‐  2,000  4,000  6,000  8,000  10,000 FY2016*FY2017 FY2018 Linear Feet of Storm Sewer  Maintenance 13,137 10,050  15,788   ‐  5,000  10,000  15,000  20,000 FY2016 FY2017 FY2018 Linear Feet of Channel  Maintenance *Additional maintenance was performed in Blessing  Branch Creek in conjunction with an inspection by the  Army Corp of Engineers.  104 Recreation Class Fund  Locations & Hours of Operation:    Administration  1314 Royal Parkway   Mon‐Fri, 8 a.m. – 5 p.m.   Euless Family Life Center  300 W Midway Dr.  Mon‐Thurs, 5 a.m. – 9 p.m.; Fri, 5 a.m. – 8 p.m.;   Sat, 8 a.m. – 6 p.m.; Sun, 1 – 6 p.m.  Simmons Center  508 Simmons Dr.   Available for rent Fri – Sun, 8 a.m. – 11 p.m.    Mission:  To provide and encourage a healthy atmosphere  for the overall well‐being of the community through  progressive fitness and recreational programs.    Accomplishments FY2017‐18:     Replaced all hydraulic weight machines at the Euless Family  Life Center.   Resurfaced large slide at the Aquatics Pool.   Replaced all 8’ tables at the Aquatics Pool.   Ran a successful summer camp.   Introduced 50 new recreation classes at the Euless Family  Life Center.   Created rental blocks for the Simmons Center to maximize  usage.   Coordinated a successful summer concert series.  Objectives for FY2018‐19:   Evaluate and improve class offerings at the Recreation  Center.   Continue to train supervisors and staff to improve daily  operations at the Euless Family Life Center.   Keep facilities and vehicles safe and functional for programs  and events.   Stay up to date with marketing trends, including social  media.  Issues / Trends:     Introducing a new format of the Playbook this year.   Aesthetic and functional improvements to the Recreation  Center.   Possible new venues for the concert series, such as Glade  Parks.   Upgrade Recreation software system.   Limited part‐time hours due to constraints of health care  laws.       Personnel 36% Capital 11% Operating 53% Budget Appropriation 105 Recreation Class Fund  Fund Summary:          Proposed FY18 Budget to   Enterprise Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Recreation Classes:                   Revenues  $              734,589   $           679,430   $    714,651   $    716,030   $   36,600  5%       Operating Expenses  $              700,183   $           650,806   $    670,336   $    670,481   $   19,675  3%       Use of Reserves  $                           ‐   $             56,743   $       12,428   $       83,840   $   27,097  48%       Capital Expenses  $                25,829   $             56,743   $       56,743   $       83,840   $   27,097  48%    Services:  Recreation Class Fund – To account for the operation of recreational programs, activities, and special events offered to Euless citizens  and other groups on a fee basis.  Personnel by Division:  None Assigned  Services Levels:  4,185  4,025  4,502   3,700  3,800  3,900  4,000  4,100  4,200  4,300  4,400  4,500  4,600 FY2016 FY2017 FY2018 Memberships 5,885 5,282 6,246 4,800 5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400 FY2016 FY2017 FY2018 Class Registrations 106                       107 Arbor Daze Fund  Location & Hours of Operation:   Special Event – Location and Times – See City Website    Mission: To promote the planting of trees and teach families  the importance of trees in a community. To continue Euless'  commitment to the Tree City USA and the National Arbor Day  Foundation programs through planting, preserving, and  educating. To provide a community event that benefits  citizens, local businesses, and community organization by  providing an opportunity to feature entertainment, products,  and services to the festival attendees.  Accomplishments FY2017‐18:    Received Tree City USA designation for the 32nd consecutive  year from the National Arbor Day Foundation.   Prepared over 3,000 trees for the tree giveaway.  Objectives for FY2018‐19:   Provide an event that promotes our community and tree  preservation.    Try to develop a long‐term plan for Arbor Daze as it relates  to location and community involvement.   Continue the City’s commitment to Tree City USA and work  towards enhancing our community tree education through  visionary planning.  Issues / Trends:   Increase in prices for equipment rental and services.   Locating functional space to host the event.   Trends and technology evolve rapidly in the festival industry.   Emergency procedures for large gatherings.   Weather can adversely affect the event or cause  cancellation.   Fund Summary:          Proposed FY18 Budget to   Enterprise Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Arbor Daze:           Revenues  $                66,275   $             80,000   $       80,000   $       80,000   $               ‐  0%       Operating Expenses  $                66,274   $             79,500   $       79,500   $       80,000   $         500  1%       Use of Reserves  $                           ‐   $                        ‐   $                  ‐   $                  ‐   $               ‐  0%       Capital Expenses  $                           ‐   $                        ‐   $                  ‐   $                  ‐   $               ‐  0%    Services:  Arbor Daze – To account for expenses related to the annual festival, funded by sponsorships and booth rentals.  Personnel by Division:  None Assigned  Services Levels:      Tree City USA  2,300  3,000 3,000   ‐  500  1,000  1,500  2,000  2,500  3,000  3,500 FY2016 FY2017 FY2018 Trees Distributed 108 Texas Star Golf Course Fund  Location & Hours of Operation:    1400 Texas Star Parkway  Daily ‐ Times vary by season – See City website   Mission:  To ensure a quality experience to all visitors to  Texas Star Golf Course, Conference Centre, and / or Raven’s  Grille.    Accomplishments FY2017‐18:     Golf Week, Dallas Morning News, and Avid Golfer listed  Texas Star as one of the “Top Ranked Public Golf Courses” in  the metroplex.   Ranked as one of the “The Top 100 Texas Golf Courses” by  sportsday.dallasnews.com.   Ranked number one of “Top Five Public Golf Courses in the  DFW Area” by Fox Sports.   Ranked in the top 15 of “The Best Texas Golf Courses in  2018” by texasgolf.com.   Received a 4 ½ star rating for the 18th consecutive year, and  listed in top places to play in Texas by Golf Digest.   Introduced the Texas Star Golf app, allowing tee time  reservations, and use of the GPS from a smart phone.   Objectives for FY2018‐19:   Provide guests an outstanding experience on the course  through consistent and exceptional conditions during all  seasons.   Provide a great dining experience for patrons of the Raven’s  Grille and Conference Centre while sustaining the desired  cost of goods.   Improve level of outside guest service through improved  staff training and new cart fleet.   Increase visibility of the Golf Course and Conference Centre  by continuing to find ways to market on social media and  periodicals.  Issues / Trends:    The golf market competition is increasing with local golf  clubs offering discounts, lowering user fees, and adding apps  to enhance their visibility.   Local public and municipal course upgrading, adding  additional competition in the market of high‐end daily fee  courses.   Increasing and maintaining merchandise sales in the Pro  Shop continues to be a challenge with discount and sporting  stores offering similar items.   Finding quality and reliable part‐time staff members for  weekday shifts for all areas of the course and clubhouse  continues to be a struggle.   Continued increase in utilities, operational supplies, and  labor cost.   Cost of mandatory healthcare for contract labor and  controlling hours of part‐time staff continues to be a  financial concern. Personnel 48% Transfers 16% Operating 36% Budget Appropriation 109 Texas Star Golf Course Fund  Fund Summary:          Proposed FY18 Budget to   Enterprise Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Texas Star Golf Course:                   Revenues  $          4,335,978   $       4,540,896   $ 4,399,687   $ 4,636,280   $   95,384  2%       Operating Expenses  $          4,415,419 $       4,518,975 $ 4,394,825 $ 4,620,972   $ 101,997 2%      Use of Reserves  $                79,441 $                        ‐$                  ‐$                  ‐   $               ‐0%      Capital Expenses  $                           ‐   $                        ‐   $                  ‐   $                  ‐   $               ‐  0%    Services:  Non‐Departmental – This division administers activities and funds for various charges that are not defined or not directly related to  any specific division of the golf course operation, such as electrical costs and insurance.  The costs of providing general management  to the operation is also a cost of this division.  Course Maintenance – To maintain the golf course at the highest possible standards.  To provide the best possible golfing experience  in the area. To bring recognition to the City of Euless via Texas Star Golf Course.  Pro Shop – Look for opportunities to market Texas Star locally and encourage local businesses to advertise with us.  Draw local, State,  and National Golf Programs to Texas Star as their host location for events.  Provide favorable first impression opportunities in the Pro  Shop for all guests and members.  Increase golf participation for juniors and women through programs and clinics.  Offer patrons high  quality golf equipment, Texas Star logo apparel, and skill clinics.  Food & Beverage – To provide quality food and beverage service to Raven’s Grille guests in a timely and professional manner. Provide  quality food and beverage service to guests on the golf course. To enhance the overall Texas Star experience for all guests.  Conference Centre ‐ To provide a versatile, first‐class conference venue that reflects the pride of Euless. To market a beautifully  maintained facility that provides excellent service and professionalism, while continuously striving to go beyond the expectations of  guests.    Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  Golf Non‐Departmental 0.75  0.75  0.75  0.75   Golf Course Maintenance 4.00  4.00  4.00  4.00   Golf Pro Shop 2.50  2.50  2.50  2.50   Golf Food and Beverage 3.00  3.00  3.00  3.00   Golf Conference Centre 1.50  1.50  1.50  1.50   Total Golf Course Fund 11.75  11.75  11.75  11.75     Services Levels:     ‐  50  100  150  200  250  300 FY2016 FY2017 FY2018 Average  Monthly Memberships Individual Corporate 32,852  33,237  32,993   32,600  32,700  32,800  32,900  33,000  33,100  33,200  33,300 FY2016 FY2017 FY2018 Total  Paid Rounds 110 Texas Star Sports Complex Fund Location & Hours of Operation: Softball World 1375 W Euless Blvd. Seasonal Hours Parks at Texas Star 1501 S Pipeline Rd. Seasonal Hours Mission: To provide and promote recreation and leisure opportunities that enhance the quality of life in the community; to provide a safe and aesthetically pleasing athletic complex for the citizens in the most cost efficient manner possible; to satisfy citizen demands for parks and park amenities, thus creating a more wholesome lifestyle by providing opportunities for participation in youth sports at all skill levels; to provide quality youth baseball programs to players from around the metroplex, state, and country; to provide an outstanding baseball and softball complex for patrons. Accomplishments FY2017-18: • Registered over 800 league teams between the two facilities • Registered nearly 1200 tournament teams between the two facilities. Objectives for FY2018-19: • Continue to look for new opportunities to promote Texas Star. • Continue to look for opportunities to maximize usage of all fields. • Continue to maintain both facilities to the highest level. Issues / Trends: • Limited part-time hours due to constraints of health care laws. • Additional workload required to coordinate and successfully run the Texas Star Sports Complex. • Increased competition in hiring part-time workers at a competitive wage. Personnel 26.2% Capital 5.5% Transfers 0.3% Operating 68.0% Budget Appropriation 111 Texas Star Sports Complex Fund Fund Summary: Proposed FY18 Budget to Enterprise Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Texas Star Sports Complex: Revenues $ 1,351,259 $ 1,338,600 $ 1,368,834 $ 1,281,100 $ (57,500) (4%) Operating Expenses $ 1,242,598 $ 1,236,204 $ 1,219,742 $ 1,185,932 $ (50,272) (4%) Use of Reserves $ - $ 85,850 $ - $ 68,566 $ (17,284) (20%) Capital Expenses $ 49,985 $ 85,850 $ 85,850 $ 68,566 $ (17,284) (20%) Services: Texas Star Sports Complex – The Texas Star Sports Complex Fund is used to account for the operations and maintenance of Softball World (SBW) and the Parks at Texas Star (PATS). Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Texas Star Sports Complex 1.50 1.50 1.50 1.50 Services Levels: - 500 1,000 1,500 2,000 2,500 3,000 FY2016 FY2017 FY2018 Softball World Teams League Tournament - 200 400 600 800 1,000 1,200 1,400 FY2016 FY2017 FY2018 Athletic Complex Teams League Tournament 112                       113 Special Revenue Funds 114 10,232,777$ 10,059,778$ 10,059,778$ 10,570,222$ REVENUES Property Tax 768,578$ 1,083,308$ 1,033,601$ 1,354,294$ Gross Receipts Tax 124,467$ 128,000$ 114,000$ 111,000$ General Sales Tax 8,158,511$ 8,557,405$ 7,841,675$ 8,425,252$ Selective Sales Tax 15,200,669$ 14,513,302$ 15,420,574$ 15,625,455$ Fines/Fees 697,753$ 1,079,302$ 1,079,301$ 1,205,529$ License/Permits -$ -$ -$ -$ Interest Income 88,114$ 49,050$ 136,316$ 125,485$ Intergovernmental Revenue 188,546$ 181,855$ 183,886$ 115,662$ Charges For Service -$ -$ -$ -$ Miscellaneous/Rental Income (4)$ -$ 36,790$ 73,580$ Other Financing Sources 33,271$ -$ -$ -$ Revenues before Transfers 25,259,905$ 25,592,222$ 25,846,143$ 27,036,257$ Transfers from Other Funds 108,219$ 53,732$ 53,682$ 35,456$ TOTAL REVENUES 25,368,124$ 25,645,954$ 25,899,825$ 27,071,713$ TOTAL RESOURCES 35,600,901$ 35,705,732$ 35,959,603$ 37,641,935$ EXPENDITURES Personal Services 4,907,605$ 5,219,763$ 5,074,011$ 5,276,941$ Professional/Technical Services 285,130$ 280,590$ 280,590$ 264,211$ Contractual Services 44,834$ 45,830$ 45,830$ 43,021$ Utilities 282,128$ 289,000$ 289,000$ 288,000$ Maintenance -$ 2,500$ 2,500$ 55,500$ Other Services/Contingencies 1,000$ 167,000$ 167,000$ 217,000$ Insurance -$ -$ -$ -$ General & Administrative 8,327$ 100,345$ 100,345$ 154,925$ Rebates/Incentives 10,167,099$ 9,825,805$ 10,722,663$ 10,450,922$ Supplies 380,822$ 418,050$ 400,944$ 294,580$ Capital Purchases (Equipment)923,100$ 2,361,868$ 1,151,308$ 2,090,290$ Debt Service/Bank Charges 5,540$ 6,500$ 6,500$ 278,037$ Expenditures before Transfers 17,005,585$ 18,717,251$ 18,240,691$ 19,413,427$ Transfer to Other Funds 8,535,538$ 7,426,190$ 7,148,690$ 9,475,710$ TOTAL EXPENDITURES 25,541,123$ 26,143,441$ 25,389,381$ 28,889,137$ ENDING FUND BALANCE 10,059,778$ 9,562,291$ 10,570,222$ 8,752,798$ The decline in fund balance in FY2019 is a planned drawdown used to purchase capital equipment and to cash flow capital improvement projects. This drawdown is funded from excess reserves above the recommended reserve level. BUDGET FY2018-19 BEGINNING FUND BALANCE SPECIAL REVENUE FUND SUMMARY ACTUAL FY2016-17 BUDGET FY2017-18 ESTIMATED FY2017-18 115 Hotel Occupancy Tax Fund  Rebates / Incentives 23% Capital 8% Transfers 56% Historic  Preservation/Other 13% Budget Appropriation Location & Hours of Operation:    201 N Ector Dr.   Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  To use Hotel/Motel occupancy tax revenue for the  promotion of tourism and the convention and hotel industry  within Euless.    Accomplishments FY2017‐18:     Funding was provided for Historical Preservation including  Heritage Park Christmas and monthly open houses at the  Heritage Park Museum.   Funding also supported the Texas Star Conference Centre  operations, and the annual Arbor Daze festival.      Objectives for FY2018‐19:   Continue to design and implement creative ways to preserve  the City's heritage.   Continue support of Arbor Daze festival.     Continue to offer first class conference facility for social and  business events.   Complete installation of citywide wayfinding signs.  Issues / Trends:     Increased number of area venues competing for events.       Expanding awareness of Heritage Museum and City’s  history.                                Fund Summary:          Proposed FY18 Budget to   Special Revenue Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Hotel/Motel:                   Revenues  $         802,874   $         924,450  $         777,690  $         869,690   $     (54,760) (6%)       Operating Expenses  $         656,361   $         772,821  $         772,821  $         843,868   $      71,047  9%       Use of Reserves  $                     ‐   $         219,355  $         286,486  $           75,000   $   (144,355)(66%)       Capital Expenses  $             5,606   $         219,355  $         291,355  $           75,000   $   (144,355)(66%)    Services:  Hotel Occupancy Tax Fund – To preserve and promote awareness of local heritage and demonstrate how history defines current  culture and provides a bridge between yesterday, today, and tomorrow. To provide a versatile, first‐class conference venue that  reflects the pride of Euless.  Personnel by Division:  None Assigned  116 Euless Development Corporation (EDC) Fund  Location & Hours of Operation:   201 N Ector Dr.   Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  The EDC ½¢ Sales Tax Fund is used to account for  ½¢ sales tax revenues.  Expenses are dedicated to parks,  library, recreational, and economic development activities  within the City of Euless.    Accomplishments FY2017‐18:     Facilitated various projects within the Glade Parks, Founders  Parc, and Riverwalk! Planned Developments.   Completed Glade Parks Trail Connection.   Completed JA Carr Park Renovation Plan for construction.   Assured continuation of a high level of service during the  library remodel by moving library operations to a temporary  facility.   Launched the Think Tank Mobile STEM Lab in partnership  with the cities of Hurst, Bedford, and HEB ISD.  Objectives for FY2018‐19:   Focus on citywide beautification program.   Continue to create and promote high quality leisure  programs to meet the needs of a diverse population.   Complete renovations of JA Carr Park.   Masterplan Phase VII of Parks at Texas Star.   Complete the library remodel design and prepare to move  the library into temporary space.   Utilize the Think Tank Mobile STEM Lab at a minimum of six  outreach and community events.  Issues / Trends:     Limited part‐time hours due to constraint of healthcare laws  affects the ability to hire quality part‐time staff.   Increased interest in streaming formats and the Library’s  temporary move will impact circulation.  Personnel 41% Capital 29% Transfers 13% Operating 17% Budget Appropriation 117 Euless Development Corporation (EDC) Fund  Fund Summary:          Proposed FY18 Budget to   Special Revenue Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  EDC ½¢ Sales Tax:                   Revenues  $      5,331,415   $      5,546,154   $      5,149,990   $      5,495,559   $     (50,595) (1%)       Operating Expenses  $      3,693,719   $      4,246,179   $      4,246,179   $      4,442,163   $    195,984  5%       Use of Reserves  $         677,278   $      2,367,910   $         626,775   $      2,044,876   $   (323,034) (14%)       Capital Expenses  $      2,314,974   $      2,367,910   $      1,530,586   $      2,044,876   $   (323,034) (14%)    Services:  Parks – To provide a safe and aesthetically pleasing park system for the citizens of Euless in the most cost effective manner possible.  To satisfy citizen demands for parks and park amenities, thus creating a more wholesome lifestyle. To provide parks and leisure  opportunities for all citizens. To provide a comprehensive parks system through the use of an updated Parks Master Plan. To identify  and apply cost saving measures where feasible. To provide services necessary to upkeep, develop, and maintain all parks within the  City.  Library – To serve the continuing informational, educational, cultural, and leisure needs of residents of all ages.  To provide the  community with the best possible materials in various formats.  To promote the joy of reading and learning. The primary role of the  Euless Public Library is to act as an Independent Learning Center by supporting people of all ages pursuing a program of learning.   Additional roles are Popular Materials Library, Preschoolers' Door to Learning, and provider of other specialized resources such as  small business assistance, young adult materials, and electronic resources.  Economic Development – Encourage and facilitate activity that brings sales tax generating businesses to the community. Implement  the best practices available to market Euless properties to the development community.  Foster and promote Euless as a “Business  Friendly” City with a one‐stop permitting shop while serving as a member of the Development Services Group. Provide assistance and  recommend financial incentives for projects where such assistance is necessary to stimulate private investment.  Promote Euless  businesses for City purchases.  Personnel by Division:    Actual Budgeted Estimated Budgeted    FY 17  FY 18  FY 18 FY 19  EDC ‐ Parks 13.25  13.25  13.25  13.25   EDC ‐ Library 10.00  10.00  10.00  10.00   EDC ‐ Economic Development 1.00  1.00  1.00  1.00   Total EDC Fund 24.25  24.25  24.25  24.25     118 Crime Control and Prevention District (CCPD) Fund Location & Hours of Operation: 1102 W Euless Blvd. Admin. - Mon – Fri, 8 a.m. – 5 p.m. Police Service 24/7 Mission: To provide the citizens of Euless professional, efficient police services. Increase staff efficiency, expand use of alternative policing methods, reduce response time, increase interaction between citizens and police, provide additional police space, expand current gang and juvenile intervention programs, expand Neighborhood Watch programs, and Citizen Volunteer Involvement. Accomplishments FY2017-18: • Maintained and improved officer training. • Continued Citizens Police Academy program. • Hosted a successful Open House and participated in various community events such as: Coffee with a Cop, National Night Out, Halloween Trunk or Treat Celebration and 6 Stones Night of Hope where the department was able to interact and engage with the citizens of the community. • Purchased new safety equipment for officers. • Provided additional air conditioning in the computer server rooms to keep equipment working efficiently. • Installed a new blood bank refrigerator in Property to store blood evidence in compliance with state law. • Replaced fifteen-year-old rifles in Patrol. • Replaced the Jail oven used for meal preparation. • Installed and provided additional covered parking for trailers that are stored at the Police building. • Replaced and improved the evidence lockers to provide a more effective way to store biological and non-biological evidence. • Purchased and installed a training simulator to enhance training options for police officers. • Continued to strengthen and cultivate relationships with local businesses and residential areas, as well as new developments. Objectives for FY2018-19: • Develop new avenues for community involvement. • Maintain and improve officer training. • Maintain Citizens Police Academy program. • Continue to increase community outreach. • Continue to evaluate and purchase safety equipment for officers as needed. • Continue to advance business and residential partnerships. • Development of a drone program. Issues / Trends: • Cost of equipment • Manpower Shortages Personnel 85% Capital 9% Operating 6% Budget Appropriation 119 Crime Control and Prevention District (CCPD) Fund Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. CCPD ¼¢ Sales Tax: Revenues $ 2,678,584 $ 2,738,659 $ 2,525,429 $ 2,683,915 $ (54,744) (2%) Operating Expenses $ 2,453,484 $ 2,719,514 $ 2,506,656 $ 2,676,714 $ (42,800) (2%) Use of Reserves $ 45,972 $ 188,282 $ 150,112 $ 105,970 $ (82,312) (44%) Capital Expenses $ 271,072 $ 188,282 $ 168,885 $ 105,970 $ (82,312) (44%) Services: CCPD Fund - The Crime Control and Prevention District (CCPD) ¼¢ Sales Tax Fund is used to account for ¼¢ sales tax revenues. Expenses are dedicated to additional personnel, crime prevention programs, and equipment for the Euless Police Department. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Crime Control and Prevention District Fund 19.00 19.00 19.00 19.00 120 Car Rental Tax Fund  Rebates / Incentives 62% Capital 21% Transfers 16% Contingency 1% Budget Appropriation Location & Hours of Operation:    201 N Ector Dr.   Mon‐Fri, 8 a.m. – 5 p.m.    Mission:  The Car Rental Tax Fund is used to account for the  5% tax charged on any short‐term motor vehicle rental.   Expenses may be dedicated to operations, debt  avoidance/reduction, and capital expenditures.  Car rental  taxes collected on Airport property are shared equally  between the cities of Dallas, Fort Worth, and Euless.    Accomplishments FY2017‐18:   Provided funding for transfers to the General Fund to help  maintain a stable tax rate for citizens.   Provided cash funding for redevelopment within the City  and projects identified in the Capital Improvement Program  plan.      Objectives for FY2018‐19:   Provide funding for transfers to the General Fund to help  maintain a stable tax rate for citizens.   Provide funding for redevelopment within the City.   Provide funding for projects identified in the Capital  Improvement Program plan.  Issues / Trends:     Revenues may be affected by ride sharing services.  It is  important to maintain flexibility in this fund so as not to  become overly dependent on this revenue source for  operations.                             Fund Summary:          Proposed FY18 Budget to   Special Revenue Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Car Rental Tax:                   Revenues  $    14,458,792   $    13,625,352   $    14,732,884   $    14,835,765   $ 1,210,413  9%       Operating Expenses  $    11,758,682   $    10,941,129   $    11,765,987   $    11,957,268   $ 1,016,139  9%       Use of Reserves  $                     ‐   $      2,026,439   $                     ‐   $      3,846,239   $ 1,819,800  90%       Capital Expenses  $      2,490,306   $      2,026,439   $      1,645,100   $      3,846,239   $ 1,819,800  90%    Services:  Car Rental Fund – Euless citizens authorized the levy of a motor vehicle tax on short‐term rentals. Funds derived from this tax may be  spent for any general government purpose. This tax was approved by voters on November 2, 1999 and became effective February 1,  2000. These funds are used to maintain a stable tax rate, cash flow special projects and infrastructure improvements, and reduce or  avoid debt issuance.  Personnel by Division:  None Assigned  121 Public Safety Special Revenue Funds  Location & Hours of Operation:  Police Administration  1102 W Euless Blvd.  Mon‐Fri, 8 a.m. – 5 p.m.  Mission:  To account for funds received from asset seizures  that are dedicated solely for funding of police programs and  capital expenditures.        Accomplishments FY2017‐18:     Funded cadet program.  Objectives for FY2018‐19:    Continue to provide funding for cadet program.  Issues / Trends:     Legislative changes could adversely affect revenue stream.   Recruiting and retaining quality employees.    Fund Summary:           Proposed FY18 Budget to   Special Revenue Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Police Seized Assets Fund:                   Revenues  $             2,445   $             1,250   $             3,650   $             3,500   $        2,250  180%       Operating Expenses  $           99,634   $           61,956   $           61,956   $           61,506   $          (450) (1%)       Use of Reserves  $         130,864   $           60,706   $           58,306   $           58,006   $       (2,700) (4%)       Capital Expenses  $           33,675   $                     ‐   $                     ‐   $                     ‐   $                ‐  0%    Services:  Police Seized Assets Fund accounts for proceeds from sale of seized assets that are dedicated solely for police expenditures.  Personnel by Division:  None Assigned        Fund Summary:           Proposed FY18 Budget to   Special Revenue Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Police Drug Fund:                   Revenues  $           19,077   $             1,400   $             9,431   $             7,300   $        5,900  421%       Operating Expenses  $             9,381   $                500   $                500   $                500   $                ‐  0%       Use of Reserves  $                     ‐   $         200,000   $                     ‐   $         200,000   $                ‐  0%       Capital Expenses  $                     ‐   $         200,000   $                     ‐   $         200,000   $                ‐  0%    Services:  Police Drug Fund is used to account for proceeds from sale of assets seized in connection with drug arrests.  Expenses are dedicated  solely for police department expenditures.  Only interest earnings and overtime cost are budgeted due to the volatility and  unpredictable nature in asset confiscation.  Personnel by Division:  None Assigned  122                       123 Tax Increment Reinvestment Zone (TIRZ) & Public Improvement District (PID) Funds Location & Hours of Operation: 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Mission: To promote economic development by utilizing public/private partnerships that encourage quality growth within the City. Accomplishments FY2017-18: • Continued development of Lifestyle Center at Glade Parks. • Completed parking garage at Glade Parks. Objectives for FY2018-19: • Complete outlying development at Glade Parks. • Continue development of Founders Parc (Midtown) planned development. Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Glade Parks TIRZ: Revenues $ 966,338 $ 1,362,650 $ 1,259,673 $ 1,658,217 $ 295,567 22% Operating Expenses $ 779,744 $ 965,350 $ 965,350 $ 1,130,249 $ 164,899 17% Use of Reserves $ - $ - $ - $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Midtown TIRZ: Revenues $ - $ - $ - $ 37,820 $ 37,820 0% Operating Expenses $ - $ - $ - $ 37,820 $ 37,820 0% Use of Reserves $ - $ - $ - $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Services: Glade Parks TIRZ is used to account for new revenues generated from increased values of properties located within the Zone, based on the percentage pledged by each participating taxing entity. Expenses are incurred for the repayment of debt related to the infrastructure cost. Midtown TIRZ is used to account for new revenues generated from increased values of properties located within the Zone, based on the percentage pledged by each participating taxing entity. Expenses are incurred for the repayment of debt related to the infrastructure cost. Personnel by Division: None Assigned Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Midtown PID: Revenues $ 607,588 $ 988,302 $ 988,301 $ 1,114,529 $ 126,227 13% Operating Expenses $ 598,755 $ 988,302 $ 988,302 $ 1,114,529 $ 126,227 13% Use of Reserves $ - $ - $ 1 $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Services: Midtown PID is used to account for assessments levied upon properties within the district boundaries. Expenses are incurred for the repayment of debt issued to fund public improvements within the district. Personnel by Division: None Assigned 124 Other Special Revenue Funds Location & Hours of Operation: 201 N Ector Dr. Mon-Fri 8 a.m. – 5 p.m. Mission: The Juvenile Case Fund provides funding for personnel and related costs incurred to prosecute juvenile cases. The Grant Fund properly accounts for the award of local, state, and federal funding to enhance City services, purchase capital equipment, and expand various programs. The Cable PEG (Public, Educational and Governmental) Fund properly accounts for funds that enhance and expand the City cable station. Accomplishments FY2017-18: • Assisted with hosting the Victims Impact Panel at Municipal Court. • Received grant for police training simulator, radio assistance program, mobile GIS unit, HEB Reads van, composting project, and STEP program. • Funded equipment for live streaming video and voting/conference system for expanded cable services. Objectives for FY2018-19: • Continue to provide support for the Victims Impact Panel. • Continue to apply for grant funding to enhance City services. • Continue STEP grant. • Continue to enhance and expand City cable station. Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Juvenile Case: Revenues $ 91,734 $ 91,800 $ 94,000 $ 94,000 $ 2,200 2% Operating Expenses $ 62,563 $ 90,167 $ 90,167 $ 81,317 $ (8,850) (10%) Use of Excess Reserves $ - $ - $ - $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Services: Juvenile Case Fund is used to account for court fees collected. Expenses are dedicated primarily to personnel and operating costs required to process juvenile cases. Personnel by Division: ACTUAL BUDGETED ESTIMATED BUDGETED FY17 FY18 FY18 FY19 Juvenile Case Fund 1.25 1.25 1.25 1.25 125 Other Special Revenue Funds Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Grant Fund: Revenues $ 281,032 $ 235,537 $ 235,537 $ 151,118 $ (84,419) (36%) Operating Expenses $ 276,299 $ 235,537 $ 235,537 $ 151,118 $ (84,419) (36%) Use of Reserves $ - $ - $ - $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Services: Grant Fund is used to account for grant funds and other restricted revenues received by the City. Expenses must be spent in accordance with the grant provisions. Personnel by Division: None Assigned Fund Summary: Proposed FY18 Budget to Special Revenue Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Cable PEG Fund: Revenues $ 128,244 $ 130,400 $ 123,240 $ 120,300 $ (10,100) (8%) Operating Expenses $ 36,868 $ 120,000 $ 120,000 $ 120,000 $ - 0% Use of Reserves $ - $ - $ - $ - $ - 0% Capital Expenses $ - $ - $ - $ - $ - 0% Services: Cable PEG Fund is used to account for a 1% fee collected from cable channel providers for expansion of the City’s public, educational, and governmental channel. Personnel by Division: None Assigned 126                       127 Internal Services Funds 128 $ 7,993,000 $ 7,757,438 $ 7,757,438 $ 8,422,185 REVENUES Property Tax -$ -$ -$ -$ Gross Receipts Tax -$ -$ -$ -$ General Sales Tax -$ -$ -$ -$ Selective Sales Tax -$ -$ -$ -$ Fines/Fees -$ -$ -$ -$ License/Permits -$ -$ -$ -$ Interest Income 65,644$ 27,000$ 95,375$ 95,500$ Intergovernmental Revenue -$ -$ -$ 51,000$ Charges for Service -$ -$ -$ -$ Miscellaneous/Rental Income 615,582$ 679,959$ 725,959$ 687,459$ Insurance/Risk/Other Financing Sources 6,917,369$ 8,460,271$ 8,460,823$ 7,417,872$ Revenues before Transfers 7,598,595$ 9,167,230$ 9,282,157$ 8,251,831$ Transfer from Other Funds 3,642,425$ 2,471,687$ 2,471,687$ 2,396,842$ TOTAL REVENUES 11,241,020$ 11,638,917$ 11,753,844$ 10,648,673$ TOTAL RESOURCES 19,234,020$ 19,396,355$ 19,511,282$ 19,070,858$ EXPENDITURES Personal Services 692,576$ 859,411$ 860,151$ 867,661$ Professional/Technical Services 198,994$ 286,800$ 286,800$ 296,220$ Contractual Services -$ -$ -$ -$ Utilities -$ -$ -$ -$ Maintenance -$ 10,500$ -$ 13,500$ Other Services/Contingencies 5,400$ 951,169$ 951,169$ 128,915$ Insurance 7,096,458$ 7,041,559$ 7,041,559$ 7,215,442$ General & Administrative -$ 1,000$ 1,000$ 2,000$ Rebates/Incentives -$ -$ -$ -$ Supplies 8,370$ 10,375$ 9,635$ 10,375$ Capital Improvements Projects -$ -$ -$ -$ Capital Purchases (Equipment)3,474,784$ 2,336,783$ 1,938,783$ 1,742,000$ Debt Service/Bank Charges -$ -$ -$ -$ Expenditures before Transfers 11,476,582$ 11,497,597$ 11,089,097$ 10,276,113$ Transfers To Other Funds -$ -$ -$ -$ TOTAL EXPENDITURES 11,476,582$ 11,497,597$ 11,089,097$ 10,276,113$ ENDING FUND BALANCE 7,757,438$ 7,898,758$ 8,422,185$ 8,794,745$ NOTE: Some accounts may have been recategorized to provide consistent presentation across funds. ACTUAL FY2016-17 BUDGET FY2017-18 ESTIMATED FY2017-18 INTERNAL SERVICE FUND SUMMARY The projected increase in fund balance is expected mainly from the Equipment Replacement Fund where accumulated resources are used to replace existing equipment. BUDGET FY2018-19 BEGINNING FUND BALANCE 129 Vehicle / Equipment Replacement Fund  Location & Hours of Operation:    1314 Royal Parkway   Mon‐Fri, 7 a.m. – 4 p.m.    Mission:  To administer and procure funding for the  replacement of vehicles and equipment owned, and/or leased,  by the City of Euless.      Accomplishments FY2017‐18:     Continued to right‐size units in departments to optimize  usage.   Continued to update vehicle depreciation schedule to more  accurately reflect future purchase expense.  Objectives for FY2018‐19:   Directly involve the departments in vehicle and equipment  specifications for replacements approved in the budget.   Continue exploration of alternative fuel options for fleet.  Issues / Trends:   Increase in ethanol blend into gasoline E10 – E15.   Broadened use of bio‐diesel in fleet.   EV vehicle inclusion in City’s fleet.   Fund Summary:          Proposed FY18 Budget to   Internal Service Actual Budget Estimated Budget FY19 Proposed  Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff.  Equipment Replacement:                  Revenue  $ 3,390,670   $ 2,399,920   $ 2,426,387   $ 2,008,842   $(391,078) (16%)      Operating Expenses   $ 3,474,784   $ 1,935,783   $ 1,925,283   $ 1,326,500   $(609,283) (31%)      Use of Excess Reserves  $      84,114   $               ‐   $               ‐   $               ‐   $              ‐  ‐    Services:  Vehicle / Equipment Replacement Fund ‐ The Equipment Replacement Fund is used to account for the accumulation of funds from  user departments.  Expenses are dedicated to replacement of existing equipment and motor vehicles.  Personnel by Division:  None Assigned    130 Insurance / Benefits Fund Location & Hours of Operation: 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Mission: To provide City employees with a competitive benefits program at the most cost-effective price to the employees and to the City. Our mission is to ensure our employees are receiving quality service and that all issues are satisfactorily resolved in a timely manner. Accomplishments FY2017-18: • Evaluated the medical, pharmaceutical and dental benefit plans. Implemented changes as needed to be more cost effective while continuing to provide quality medical care and services. • Held Open Enrollment Meetings to allow employees to learn more about the City’s benefit programs. • Continued with the wellness program, offering incentives to participants. • Held Wellness Fair to allow employees to learn more about the City’s wellness initiatives, vendors, and many benefit programs. • Immunized employees, retirees, and eligible dependents with flu vaccine. Objectives for FY2018-19: • Evaluate medical, pharmacy, and dental benefit plans and identify changes that will be more cost effective while continuing to provide quality medical care and services. Issues / Trends: • Health care costs continue to rise and will require continued monitoring of all expenses and development of cost containment measures. Personnel 1% Operating 99% Budget Appropriation 131 Insurance / Benefits Fund Fund Summary: Proposed FY18 Budget to Internal Service Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Insurance: Revenue $ 6,882,873 $ 8,219,059 $ 8,292,644 $ 7,559,893 $(659,166) (8%) Operating Expenses $ 7,157,766 $ 8,151,422 $ 8,151,422 $ 7,514,893 $(636,529) (8%) Use of Reserves $ 274,893 $ 100,000 $ - $ - $(100,000) (100%) Capital Expenses $ - $ 100,000 $ - $ - $(100,000) (100%) Services: Insurance/Benefits Fund - To account for both City and employee premiums. Expenses are dedicated to employees' health, dental, and prescription claims. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Insurance/Benefits Fund 1.00 1.00 1.00 1.00 Services Levels: - 200 400 600 800 1,000 FY2016 FY2017 FY2018 Covered Lives Retirees Dependents Employees 151 167 158 140 145 150 155 160 165 170 FY2016 FY2017 FY2018 Flex Participants 132 Risk / Workers’ Compensation Management Fund Location & Hours of Operation: 201 N Ector Dr. Mon-Fri, 8 a.m. – 5 p.m. Mission: The Risk/Workers’ Compensation Management Department’s mission is to identify, analyze and control risks; to administer and evaluate liability insurance programs; to ensure cost effectiveness; to conduct educational safety programs; and to monitor and ensure compliance with mandates established by the City of Euless, State of Texas and US Government. The department’s goal is to protect the City’s assets and resources by minimizing the internal and external exposures and associated risks, and to respond in a timely manner to the information needs of citizens, staff, and employees. The mission of the Workers' Compensation Insurance function of the Human Resources Department is to ensure, through pre-placement physicals, all new employees are capable of performing the essential functions of the job for which they are hired; to administer the occupational injury program; and to provide instructional training in safe and efficient performance of job duties. To provide cost-effective medical treatment through occupational injury/illness program, with the objective of facilitating the timely return to work of those employees who have been injured or become ill on the job. Accomplishments FY2017-18: • Presented monthly safety education programs including workers’ compensation training. • Routinely monitored motor vehicle records. • Administered routine random drug and alcohol tests as required by the Department of Transportation (DOT) and internal policy. • Continued emphasis to ensure compliance with the American’s with Disabilities Act (ADA). • Ensured all job descriptions are compliant with the requirements of the ADA. • Ensured departments hold safety-training meetings. • Continued to investigate and settle property claims in a fair and timely manner. • Lowered claims handled by Texas Municipal League (TML) and handled more in-house. • Continued emphasis on compliance with ADA and compiled ADA Transition Plan. • Decreased TML insurance coverage contribution by $175k. • Provided immunizations and vaccinations for employees in positions exposed to blood-borne pathogens. Objectives for FY2018-19: • Focus on training in areas with greatest risk per quarterly assessments. • More hands-on training and observation collaborating with all departments. • Ensure all job descriptions are compliant with the requirements of the ADA. • Continue to produce management reports to bring attention to causes and types of injuries for prevention purposes. • Ensure departments hold safety-training meetings. Issues / Trends: • Property claims cost will continue to rise due to inflationary trends. • Medical treatment and rehabilitative costs continue to rise. • Workers compensation premiums expected to rise due to prior experience. Personnel 5% Capital 30% Operating 65% Budget Appropriation 133 Risk / Workers’ Compensation Management Fund Fund Summary: Proposed FY18 Budget to Internal Service Actual Budget Estimated Budget FY19 Proposed Funds FY 17 FY 18 FY 18 FY 19 $ Diff % Diff. Risk/WC Management: Revenue $ 967,478 $ 1,019,938 $ 1,034,813 $ 1,079,938 $ 60,000 6% Operating Expenses $ 844,032 $ 998,892 $ 998,892 $ 1,008,720 $ 9,828 1% Use of Reserves $ - $ 311,500 $ - $ 426,000 $ 114,500 37% Capital Expenses $ - $ 311,500 $ 13,500 $ 426,000 $ 114,500 37% Services: Risk/Workers’ Compensation Management Fund - The Risk Management Fund is used to account for the program(s) used for workers’ compensation, general liability, and property claims. Personnel by Division: Actual Budgeted Estimated Budgeted FY 17 FY 18 FY 18 FY 19 Risk/WC Management Fund 0.50 0.50 0.50 0.50 Services Levels: 43 38 43 18 14 16 - 10 20 30 40 50 60 70 FY2016 FY2017 FY2018 Workers' Comp Claims In-House TML 4 10 8 67 48 67 - 10 20 30 40 50 60 70 80 FY2016 FY2017 FY2018 Risk Claims In-House TML 134                       135 Capital Improvements 136 $ 27,616,359 $ 19,768,355 $ 19,768,355 $ 8,950,730 REVENUES Property Tax $ - $ - $ - Gross Receipts Tax $ - $ - $ - General Sales Tax $ - $ - $ - Selective Sales Tax $ - $ - $ - Fines/Fee/Penalties $ - $ - $ - License/Permits $ - $ - $ - Interest Income $ 136,291 $ 48,900 $ 402,900 $ 44,359 Intergovernmental Revenue $ 1,384,495 $ 223,125 $ 3,527,401 $ 655,159 Charges for Services $ 1,036,586 $ - $ 999,350 $ 7,678 Miscellaneous/Rental Income $ 79,684 $ 42,100 $ 78,045 $ 58,583 Other Financing Sources $ 200,751 $ 13,742,597 $ 7,043,863 $ 24,176,299 Revenues before Transfers 2,837,807$ 14,056,722$ 12,051,560$ 24,942,078$ Transfers from Other Funds $ 6,749,522 $ 7,075,470 $ 10,819,000 $ 11,829,403 TOTAL REVENUES 9,587,329$ 21,132,192$ 22,870,560$ 36,771,481$ TOTAL RESOURCES 37,203,688$ 40,900,547$ 42,638,915$ 45,722,211$ EXPENDITURES Personal Services -$ -$ -$ -$ Professional/Technical Services 320,938$ 910,850$ 1,543,991$ 2,342,166$ Contractual Services 11,411$ -$ 69,986$ 25,000$ Utilities 100,000$ 100,000$ 100,000$ 100,000$ Maintenance 6,126$ 50,000$ 50,000$ -$ Other Services/Contingencies -$ 50,000$ 521,369$ 92,493$ Insurance -$ -$ -$ -$ General & Administrative 1,150$ -$ -$ -$ Rebates/Incentives 6,479,502$ 2,025,000$ 7,910,922$ 25,000$ Supplies 4,288$ 25,000$ 100,870$ -$ Capital Improvements Projects 10,093,400$ 17,680,066$ 20,840,447$ 29,549,800$ Debt Service/Bank Charges -$ 112,132$ 284,020$ Expenditures before Transfers 17,016,815$ 20,840,916$ 31,249,717$ 32,418,479$ Transfer to Other Funds 418,518$ 2,373,882$ 2,438,468$ 375,418$ TOTAL EXPENDITURES 17,435,333$ 23,214,798$ 33,688,185$ 32,793,897$ ENDING FUND BALANCE 19,768,355$ 17,685,749$ 8,950,730$ 12,928,314$ ESTIMATED FY2017-18 BUDGET FY2018-19 BEGINNING FUND BALANCE Capital Projects are funded over the life of the project. Unspent appropriations roll over from year to year until the project is complete. Most appropriations will be spent by the end of the fiscal year, with the exception of escrow funds and impact fees. ACTUAL FY2016-17 BUDGET FY2017-18 CAPITAL PROJECTS FUND SUMMARY 137 CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program (CIP) is a process by which the City designs a multi-year plan for major capital expenditures. Due to the tremendous growth of the capital projects program, and the amount of detail required for these projects, a separate document is provided for the Capital Improvement Program. Generally the CIP includes improvements that are relatively expensive, are non-recurring, have a multi-year useful life, and like capital outlay items, result in fixed assets. These include the construction and acquisition of new buildings, additions to or renovations of existing buildings, construction of streets, drainage improvements, land purchases, and water and wastewater utility lines. This is a very progressive process, with projects being added and deleted from the funded and unfunded lists as they move through the project completion phase. A. Preparation – The City’s capital budget will include all capital project funds and all capital resources. The budget will be prepared annually in conjunction with the operating budget. The capital budget will be compiled by the Finance Director with the involvement of all required City departmental project managers. Integration of the fiscal impact of capital improvements on the operating budget will be monitored. B. Definition – Facilities include any structures or properties owned by the City, the land upon which the facility is situated for the provision of City services, and the initial furniture, fixtures, equipment, and apparatus necessary to put the facility in service. Facilities include, but are not limited to the following: administrative offices, parks, service centers and storage yards, recreation centers, libraries, fire stations, jails and courts, and water and sewer related structures. C. Infrastructure – Includes permanently installed facilities, generally placed underground or at grade, which form the basis for the provision of City services. Typically included are thoroughfares, bridges, water and wastewater lines, drainage channels, and storm sewers. D. Control – All capital project expenditures must be appropriated in the capital budget. The Finance Department must certify the availability of such appropriations or the availability of resources so an appropriation can be made before a capital project contract is presented by the City Manager to the City Council for approval. E. Program Planning – The capital budget will include capital improvements program plans for future years. The planning time frame should normally be at least five years. The replacement and maintenance for capital items should be projected for the next five years. Future maintenance and operations will be determined, so that these costs can be considered in the operating budget. F. Alternate Resources – Where applicable, assessments, impact fees, pro-rata charges, or other user-based fees should be used to fund capital projects which have a primary benefit to specified property owners. Drainage Utility revenues are established to fund small citywide drainage projects. Single large drainage projects will be funded by debt. G. Debt Financing – Recognizing that debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives which equal or exceed the average life of the debt issue. The exceptions to this requirement are the traditional costs of marketing and issuing the debt, capitalized labor for design and construction of capital projects, and small component parts which are attached to major equipment purchases. H. Infrastructure Maintenance – The City recognizes that deferred street maintenance increases future capital costs by an estimated five- to ten-fold. Therefore, a portion of the General Fund budget will be set aside each year to maintain the quality of streets. The amount will be established annually. I. Reporting – Periodic financial reports will be prepared to enable the Department Managers to manage their capital budgets and to enable the Finance Department to monitor and control the capital budget as authorized by the City Manager. 138 CITY OF EULESS CAPITAL IMPROVEMENT PROJECTS DATE: June 25, 1991 PREPARED BY: Finance Department Rev. July 15, 1992 RE: Capital Improvements APPROVED BY: City Manager I. PURPOSE Pursuant to City of Euless Charter, Article VII, Section 2, Paragraph (5) and (6), the City Manager’s Office will present annually a statement of capital expenditures for the next fiscal year and provisions for financing, as well as a five-year project listing. II. SCOPE & NECESSARY ELEMENTS All City improvements to be considered by City Council will be presented utilizing these guidelines. Proper planning, consistency, and uniformity will provide better format for public consumption of information. Initial Necessary Elements: 1. Project Name or Title 2. Estimated cost of an improvement project 3. Anticipated method of funding 4. Some form of priority rating 5. Scheduling fiscal year 6. Account number to which the project is to be charged III. RESPONSIBILITIES & TYPES OF PLANS Water Projects – Any project intended to improve or expand the water production and distribution system, capabilities, or facilities of the City of Euless is a water project. Responsibility rests with the Public Works Department. Wastewater Projects – Any project that is intended to improve, expand, or extend some portion of the wastewater collection system or the wastewater treatment facilities of the City of Euless. Responsibility rests with the Public Works Department. Park Projects – Improvements and additions to the City Park and open-space system. The responsibility rests with the Community Services Department. Traffic Control Projects – Improvements and additions to the City traffic control system including signal relocation, upgrading and new installation and other devices for improving traffic control represents Traffic Control projects. Responsibility rests with the Engineering Department. Street Projects – These projects include the construction or major redevelopment of streets and thoroughfares, which include project engineering and drainage improvements incidental to the thoroughfare improvement. Responsibility rests with the Public Works Department. Drainage Projects – This category includes new development drainage, major drainage, and designated project drainage independent from street construction, and thus separate and distinct from drainage incidental to street or thoroughfare improvements. Responsibility rests with the Public Works Department. 139 Golf Projects – This project type includes the sites, planning and construction of Golf Course facilities, including course, driving range, maintenance, and clubhouse. This facility is normally a one-time project. Responsibility rests with the Community Services Department. Athletic Complex – These projects include the construction of all recreational facilities, including volley ball, soccer fields, youth baseball fields, concessions, and batting cages. Responsibility rests with the Community Services Department. Softball – These projects include land acquisition, renovations/improvements, and additions to the softball complex and related facilities of the City of Euless. Responsibility rests with the Community Services Department. Half-Cent Sales Tax – These projects include the construction of a new library, additions to park facilities and park improvements, and economic development related projects. Responsibility rests with the City Manager and respective departmental directors. Fire – Fire projects are those which involve the renovation, acquisition or construction of equipment or facilities for fire protection. Responsibility rests with the Fire Department. CATEGORIZED GUIDELINES FOR CLASSIFYING PROJECT: Land – All expenditures for the acquisition of land (for the purpose of long-term use by the City) should be included. Payments of damage claims arising from the taking of or the use of the land as well as the acquisition in fee simple would be included. Structures – All expenditures for the structures, including not only construction costs, but also architectural, engineering, legal and related expenses would be included. However, small structures of relatively nominal value, such as a metal storage shed, would be excluded from the C.I.P. As a general rule of thumb, somewhere in the range of $25,000 is considered the minimum structure cost for inclusion in the C.I.P., and it should have an expected useful life of at least ten years. Machinery – All expenditures for machinery that is a part of structures at the time of initial acquisition or construction of the structure should be included. Additionally, expenditures for machinery which constitute a substantial upgrading or renovation of an existing structure should be included. A general rule of thumb for C.I.P. inclusion for such machinery outlays is a minimum cost of approximately $10,000 and an expected useful life of ten years. Vehicular Equipment – Vehicular equipment is not generally considered appropriate as an item for the C.I.P. due to the relatively nominal unit cost and short life. However, heavy equipment may be included using the machinery and equipment guidelines: $25,000 minimum cost and at least ten years of expected useful life. Furnishing and Office Equipment – The total furnishings for a new facility addition may constitute a C.I.P. item. Each such case must be considered individually. However, the machinery and equipment rule of thumb of ten years minimum expected useful life and $10,000 cost (total furnishing cost for new facility or addition) may be used as a general guideline. Office equipment is not considered a proper C.I.P. item. Thoroughfares and Utility Lines – All expenditures for thoroughfare and utility line construction, engineering, legal and related expenses should be included. Preliminary Plans, Investigation and Studies – For many projects, substantial sums are required for preliminary plans, investigations and studies. Ordinarily, such inquiries (if aimed at possible capital outlays of the charter that would be admitted to the C.I.P. under the previous categories) would be included in the capital program. 140 Landscaping – All landscaping expenditures for new or existing facilities may qualify as a C.I.P. item. Each case will be considered individually. As a rule of thumb, costs of approximately $10,000 are considered. Grant-In-Aid Items – All expenditures of grant, matching or participating moneys from other governmental entities or private contributors (Foundations) which are expended in conjunction with City funds for Capital Improvements Projects. IV. DEFINITIONS Definition of Program - A Capital Improvement Program is a list of public physical improvements scheduled over a period of time taking project priority and financial capability into account. Definition of Capital Improvement - Any major non-recurring expenditure or any expenditure for physical facilities of government, such as cost for acquisition of land or interest in land; construction of buildings or other structures, including additions or major alterations; construction of highways or utility lines; fixed equipment; landscaping and similar expenditures. Webster’s Definition of “Project” - “A specific plan or design; scheme; an idea; a planned undertaking; a large usually government-supported undertaking.” V. PROCEDURES In conjunction with the annual operational budget cycle, input will be received from appropriate departments by the City Manager’s Office for inclusion in the C.I.P. budget for presentation to City Council. 141 CURRENT CAPITAL PROJECTS FUNDS Water and Wastewater Construction Fund – Used to account for the financing and construction of various water and sewer mains. Proceeds are from the sale of revenue bonds, contributions from other agencies, capital recovery fees, and water and sewer operating transfers. Water Impact Fee Fund - Used to account for the construction of projects funded by the water impact fees. These funds are legally restricted to items identified in the water impact fee study. Wastewater Impact Fee Fund - Used to account for the construction of projects funded by the wastewater impact fees. These funds are legally restricted to items identified in the wastewater impact fee study. Drainage Improvement Fund – Used to account for the financing and construction of various drainage projects. Proceeds are from the sale of drainage revenue bonds and monthly billings. Texas Star Sports Complex Capital Fund – Used to account for the financing, renovation, and construction of the sports facilities projects. Proceeds are from inter-fund transfer, operating reserves, gas royalties, and interest income. Texas Star Golf Course Capital Fund – Used to account for the financing and construction of capital improvements at the golf course, clubhouse, and conference center. Proceeds are from gas royalties, excess reserves, and interest income. Street Construction Fund – Used to account for the financing and construction of various street infrastructures. Proceeds are from the sale of general obligation bonds, certificates of obligation, contributions from other agencies, and accumulated cash reserves. General Construction Fund – Used to account for bond proceeds and accumulated cash reserves related to general facility improvements such as fire stations and campus improvements. Car Rental Tax Capital Projects Fund – Used to account for any ongoing projects or construction projects funded from this revenue source. EDC Capital Fund – Used to account for the financing and construction of Euless Development Corporation approved projects, currently include Parks, Library, and Economic Development. Proceeds are from the sale of revenue bonds, sales tax collections, and interest earnings. Redevelopment Fund- Used to account for any land acquisition and revitalization projects designed to enhance the development of deteriorating areas throughout the community. Developer Contribution (Escrow) Fund- Used to account for funds received for the purposes of making new and future improvements to various development areas within the City. Midtown Development Fund- Used to account for the financing and construction of various street, water, wastewater, drainage, and other infrastructure improvements in the area generally known as Midtown on the south side of State Highway 183. This fund will be used to account for proceeds from the sale of certificates of obligation. 142 CITY OF EULESS CAPITAL IMPROVEMENT PROGRAM The City of Euless has developed and produced under separate cover a Capital Improvements Program. This program is reviewed annually to reflect changing priorities. It provides a framework for identifying capital requirements, scheduling projects over multiple years, coordinating related projects, and identifying future fiscal impact. This document details all capital projects that have been identified to date and meets the requirements of the City Charter. Article VII, Section 2 (4) requires “A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing.” Section 2 (5) further requires “A list of capital projects which should be undertaken within the five (5) next succeeding years.” Excerpts from the Capital Improvements Program publication have been summarized in the Operating Budget document for your convenience. Formal City Council Adoption of the Capital Improvement Program indicates the City’s commitment to the plan, but does not in itself authorize expenditures. The necessary funding mechanisms must be adopted each year to pay for the improvements. Each year, the Capital Improvement Program includes a thorough review process similar to the operating budget. A Capital Improvement Program Fund Balance Summary has been provided that reflects all resources currently available and projected resources for the upcoming budget year. This summary reflects capital expenditures that were approved during the budget process, lists all capital projects presented during FY2018-19 for approval, and verifies that resources are currently available to fund all these projects. As projects are approved by the City Council, they will be moved from the “Unfunded” section of the Capital Improvement Program to the “Funded” section. Summaries of Funded and Unfunded Projects have been provided in this section and each summary contains five major categories including Drainage Projects, Street Projects, Wastewater Projects, Water Projects, and Other Projects. Unfunded projects have been prioritized into three categories. Priority A indicates that the project was presented for the FY2018-19 budget. Priority B indicates that projects will be presented to Council within two to five years. Priority C indicates that projects will not begin for at least 5 years. For more detail information on capital projects and their possible impact on operating budgets refer to the Capital Improvements Program document. The following table summarizes budgets for Funded Projects. Unfunded Projects have also been summarized by category and priority. Funded Projects Unfunded Projects Priority A Priority B Priority C Drainage $ 1,967,011 $ -0- $ 300,000 TBD Street $ 22,811,134 $ 13,398,813 $ 4,075,000 TBD Wastewater $ 2,784,883 $ 818,853 $ 2,840,707 TBD Water $ 17,029,657 $ 9,910,000 $ 2,130,000 TBD Other $ 32,936,576 $ 1,830,320 $ 6,873,684 TBD $ 25,957,986 $ 16,219,391 TBD Total Funded $ 77,529,261 Total Unfunded Projects $ 42,177,377 143 Fund Balance Summary - Capital Estimated FY18 and Budgeted FY19 Capital Improvement Projects EDC Developer's Streets Half-Cent General Escrow CIP CIP CIP Beg. Working Capital FY18 $2,091,529 $348,930 $2,026,936 $1,299,010 FY18 Estimated Revenues 176,684 9,968,846 1,457,337 280,409 Total Available: 2,268,213 10,317,776 3,484,273 1,579,419 FY18 Estimated Project Expenditures 0 (10,043,660)(3,365,281)(99,785) Total Expenses:0 (10,043,660) (3,365,281) (99,785) Estimated Working Capital FY18 $2,268,213 $274,116 $118,992 $1,479,634 FY19 Budgeted Revenues 7,678 16,742,723 2,527,813 839,867 Total Available: 2,275,891 17,016,839 2,646,805 2,319,501 FY19 Project Expenditures 0 (13,473,813) (2,527,813) 0 Total Expenses: 0 (13,473,813)(2,527,813)0 Estimated Working Capital FY19 $2,275,891 $3,543,026 $118,992 $2,319,501 FY19 Projects Miscellaneous Street Repairs 0 75,000 0 0 FY2019 Street Improvements 0 950,000 0 0 FY2019 Street Reconstruction 0 12,423,813 0 0 Miscellaneous Screening Wall Repair 0 25,000 0 0 Incentives 0 0 25,000 0 Contingency 0 0 32,493 0 Miscellaneous Park Improvements 0 0 90,000 0 Library Construction 0 0 550,000 0 Carr Park Improvements 0 0 1,680,320 0 Texas Star Sports Complex Phase VII Design 0 0 150,000 0 Total FY19 Projects $0 $13,473,813 $2,527,813 $0 144 Fund Balance Summary - Capital Estimated FY18 and Budgeted FY19 Capital Improvement Projects Midtown Car Rental Redevelopment Development Tax TSGC TSSC CIP CIP CIP CIP CIP Beg. Working Capital FY18 $115,551 $3,986,197 $2,512,623 $63,197 $79,841 FY18 Estimated Revenues 2,028,893 999,725 1,714,227 225,443 997 Total Available: 2,144,444 4,985,922 4,226,850 288,640 80,838 FY18 Estimated Project Expenditures (2,133,024)(4,985,922)(2,553,177)(247,180)(64,586) Total Expenses: (2,133,024) (4,985,922) (2,553,177) (247,180) (64,586) Estimated Working Capital FY18 $11,420 $0 $1,673,673 $41,460 $16,252 FY19 Budgeted Revenues 516,482 0 4,822,732 115,000 0 Total Available: 527,902 0 6,496,405 156,460 16,252 FY19 Project Expenditures (500,000)0 (4,585,000) (115,000)0 Total Expenses: (500,000)0 (4,585,000)(115,000)0 Estimated Working Capital FY19 $27,902 $0 $1,911,405 $41,460 $16,252 FY19 Projects Redevelopment 500,000 0 0 0 0 ADA/TAS Improvements 0 0 25,000 0 0 Library Construction 0 0 4,560,000 0 0 TSGC Misc. Improvements 0 0 0 115,000 0 Total FY19 Projects $500,000 $0 $4,585,000 $115,000 $0 145 Fund Balance Summary - Capital Estimated FY18 and Budgeted FY19 Capital Improvement Projects Water Wastewater W&WW Impact Impact Drainage CIP Fee Fee CIP Beg. Working Capital FY18 $3,563,126 $1,845,425 $621,670 $1,214,320 FY18 Estimated Revenues 4,996,076 695,958 206,506 119,459 Total Available: 8,559,202 2,541,383 828,176 1,333,779 FY18 Estimated Project Expenditures (8,428,974)(373,882)(100,000)(1,292,714) Total Expenses: (8,428,974) (373,882) (100,000) (1,292,714) Estimated Working Capital FY18 $130,228 $2,167,501 $728,176 $41,065 FY19 Budgeted Revenues 11,119,186 0 0 80,000 Total Available: 11,249,414 2,167,501 728,176 121,065 FY19 Project Expenditures (11,036,853) (375,418) (100,000) (80,000) Total Expenses: (11,036,853)(375,418)(100,000)(80,000) Estimated Working Capital FY19 $212,561 $1,792,083 $628,176 $41,065 FY19 Projects Wastewater Line Replacement 441,214 0 0 0 Wastewater Line Replacement-CDBG 377,639 0 0 0 Valve Replacement 125,000 0 0 0 Meters/Transponders 158,000 0 0 0 Water and Wastewater Rehab 25,000 0 0 0 Water Line Replacement 635,000 0 0 0 Well Replacement Construction - Fuller/Far North 9,275,000 0 0 0 Water Tank Debt Payment 0 255,674 0 0 Reclaimed Water Line Extension Debt Payment 0 119,744 0 0 TRA Payments 0 0 100,000 0 Miscellaneous Drainage Improvements 0 0 0 80,000 Total FY19 Projects $11,036,853 $375,418 $100,000 $80,000 146 Project DescriptionPriority Estimated Cost Operating FundCIP Fund BalanceBond SaleGrants/ ContributionsImpact FeesEscrow FundsCar Rental TaxOther EDCTo Be DeterminedDRAINAGE PROJECTSNone CurrentlyA $ - Sub-Total Drainage Priority A-Proposed FY2019 $ - Kynette Drive Storm Drain Installation (20)B $ 300,000 XX Sub-Total Drainage Priority B-Unfunded $ 300,000 Chittam Drive Storm Drain Installation C TBD (1) XX Little Bear Creek Drainage Improvements C TBD XX Sub-Total Drainage Priority C-Unfunded $ - DRAINAGE PROJECTS - TOTAL$ 300,000 STREET PROJECTSFY2019 Street Improvements A $ 950,000 XX FY2019 Street Reconstruction A $ 12,423,813 XX Miscellaneous Screening Wall Repair A $ 25,000 XX Sub-Total Street Priority A-Proposed FY2019 $ 13,398,813 FY2020 Street Improvements (20)B $ 950,000 XX Traffic Signal-Cheek Sparger Road at Heritage Avenue (20)B $ 275,000 $ 50,000 $ 50,000 $ 175,000 FY2021 Street Improvements (21)B $ 950,000 XX FY2022 Street Improvements (22)B $ 950,000 XX FY2023 Street Improvements (23)B $ 950,000 XX Sub-Total Street Priority B-Unfunded $ 4,075,000 Cresthaven Drive Reconstruction C TBD XX E Alexander Lane Reconstruction C TBD XX Ross Avenue Extension C TBD XX Vine Street Reconstruction-SH183 to SH10 C TBD XX Sub-Total Street Priority C-Unfunded$ - STREET PROJECTS - TOTAL$ 17,473,813 WASTEWATER PROJECTSLR: Cedar Hill Estates North A $ 409,903 XX FY2019 44th CDBG LR: Oakwood Terrace Addition Phase III A $ 408,950 $ 31,311 $377,639 Sub-Total Wastewater Priority A-Proposed FY2019 $ 818,853 LR: Cedar Hill Estates South Phase I (20)B $ 389,400 XX FY2020 45th CDBG LR: Oakwood Terrace Addition Phase IV (20)B $ 115,000 XX LR: Cedar Hill Estates South Phase II (21)B $ 446,300 XX FY2021 46th CDBG LR: Midway Park 2nd Addition Phase I (21)B $ 327,000 XX FY2022 47th CDBG LR: Midway Park 2nd Addition Phase II (22)B $ 280,000 XX LR: Midway Park 3rd Addition Phase I (22)B $ 398,800 XX LR: Midway Park 3rd Addition Phase II (22)B $ 348,068 XX LR: Midway Park 2nd Addition Phase III (23)B $ 536,139 XX Sub-Total Wastewater Priority B-Unfunded $ 2,840,707 LR: Midway Park 2nd Addition Phase IV C TBD XX LR: Oakwood Terrace North Phase I C TBD XX Sub-Total Wastewater Priority C-Unfunded$ - WASTEWATER PROJECTS - TOTAL$ 3,659,560 LR = Line Replacement1 Preliminary cost estimate of $1,186,000.PROPOSED METHOD OF FINANCINGCAPITAL IMPROVEMENT PROGRAMSFY2019 PROPOSED & UNFUNDED PROJECTS - SORTED BY TYPE147 Project DescriptionPriority Estimated Cost Operating FundCIP Fund BalanceBond SaleGrants/ ContributionsImpact FeesEscrow FundsCar Rental TaxOther EDCTo Be DeterminedPROPOSED METHOD OF FINANCINGCAPITAL IMPROVEMENT PROGRAMSFY2019 PROPOSED & UNFUNDED PROJECTS - SORTED BY TYPEWATER PROJECTSLR: Kynette Drive A $ 635,000 XX Well Replacement Construction-Fuller/Far North A $ 9,275,000 XX Sub-Total Water Priority A-Proposed FY2019 $ 9,910,000 LR: Alexander Lane (20)B $ 440,000 XX LR: Dunaway Drive (21)B $ 450,000 XX LR: Huntington Drive (21)B $ 450,000 XX LR: Bell-Hi Addition Phase I (23)B $ 225,000 XX LR: Dickey Drive (23)B $ 565,000 XX Sub-Total Water Priority B-Unfunded $ 2,130,000 1 Mil Well Replacement C TBD XX LR: Bell-Hi Addition Phase II C TBD XX LR: Midway Park 1st Addition C TBD XX LR: Midway Park 3rd Addition C TBD XX LR: Sagebrush Trail C TBD XX SH360 Water Crossing C TBD XX LR: Sotogrande Boulevard C TBD XX Sub-Total Water Priority C-Unfunded$ - WATER PROJECTS - TOTAL$ 12,040,000 OTHER PROJECTSCarr Park Improvements A $ 1,680,320 XX Texas Star Sports Complex Phase VII Design A $ 150,000 XX Sub-Total Other Priority A-Proposed FY2019 $ 1,830,320 Texas Star Sports Complex Phase VII Construction (20)B $ 3,420,200 XX Kiddie Carr Park Improvements (21)B $ 893,500 $ 393,500 $ 500,000 Wilshire Park Upgrades (22)B $ 1,953,820 $ 1,453,820 $ 500,000 Blessing Branch Park Improvements (23)B $ 365,064 XX Carr Park Trail Connection (23)B $ 241,100 XX Sub-Total Other Priority B-Unfunded $ 6,873,684 Animal Shelter Expansion/RenovationC TBD XX Fire Station #1 C TBD XX Parks Maintenance Building RemodelC TBD XX South Euless Park UpgradesC TBD XX Trail Enhancements Phase I C TBD XX Trail Enhancements Phase IIC TBD XX Trail Enhancements Villages of Bear CreekC TBD XX Trailwood Park ImprovementsC TBD XX Sub-Total Other Priority C-Unfunded$ - OTHER PROJECTS - TOTAL$ 8,704,004 LR = Line Replacement148 CAPITAL IMPROVEMENTS PROGRAMFUNDED PROJECTS SUMMARYProject Number Project DescriptionBudget as of 5/31/17Appropriation/ AmendmentBudget as of 5/31/18Expended as of 5/31/18Remaining FundsRevised Project Cost EstimatesUnfunded/ (Excess Funding) DRAINAGE PROJECTSDR9903Misc. Drainage Improvements 1,017,011$ 100,000$ 1,117,011$ 509,839$ 607,172$ 1,197,011$ 80,000$ DR1101Flooding Mitigation500,000$ -$ 500,000$ 18,334$ 481,666$ 500,000$ -$ DR1201 Misc. Creek Maintenance (min bal $100,000)270,000$ -$ 270,000$ 116,316$ 153,684$ 270,000$ -$ FB9902Fund Balance - Drainage CIP-$ -$ -$ -$ -$ -$ (33,065)$ 1,787,011$ 100,000$ 1,887,011$ 644,489$ 1,242,522$ 1,967,011$ 46,935$ STREET PROJECTSPS1102Glade Parks Improvements 15,369,514$ -$ 15,369,514$ 12,180,334$ 3,189,180$ 15,369,514$ -$ PS1203 Misc. Street Repairs (min bal $150,000)661,000$ 150,000$ 811,000$ 732,586$ 78,414$ 886,000$ 75,000$ PS1601East Harwood Road Extension100,000$ -$ 100,000$ -$ 100,000$ 100,000$ -$ PS1801FY2018 Street Improvements-$ 425,000$ 425,000$ 225,724$ 199,276$ 425,000$ -$ PS1802 FY2018 Street Reconstruction-Fuller Wiser Rd./Bear Creek Pkwy. -$ 6,030,620$ 6,030,620$ -$ 6,030,620$ 6,030,620$ -$ FB9907Fund Balance - Street CIP-$ -$ -$ -$ -$ -$ (189,648)$ 16,130,514$ 6,605,620$ 22,736,134$ 13,138,644$ 9,597,490$ 22,811,134$ (114,648)$ WASTEWATER PROJECTSWW0002 Misc. Wastewater Rehab (min bal $100,000)706,086$ 50,000$ 756,086$ 624,407$ 131,679$ 781,086$ 25,000$ WW0605 TRA Wastewater Payments - Impact 880,000$ 100,000$ 980,000$ 880,000$ 100,000$ 1,080,000$ 100,000$ WW1801 SH183 Phase II Wastewater Relocation -$ 700,672$ 700,672$ -$ 700,672$ 700,672$ -$ WW1802 FY2018 43rd CDBG LR: Oakwood Terrace Addition Phase II -$ 223,125$ 223,125$ -$ 223,125$ 223,125$ -$ FB9911 FB - Wastewater Impact (Restricted) -$ -$ -$ -$ -$ -$ (663,242)$ 1,586,086$ 1,073,797$ 2,659,883$ 1,504,407$ 1,155,476$ 2,784,883$ (538,242)$ WATER PROJECTSWT0001 Misc. Water Rehab (min bal $150,000)853,511$ 100,000$ 953,511$ 793,647$ 159,864$ 953,511$ -$ WT0101 Water Tank Debt Payment-Impact 4,474,226$ 252,188$ 4,726,414$ 4,642,354$ 84,060$ 4,982,088$ 255,674$ WT0104 Well Repairs 1,613,992$ 75,000$ 1,688,992$ 1,560,540$ 128,452$ 1,688,992$ -$ WT0803 Meters/Transponders/Leak Detection (annual transfer $158,000)1,878,671$ 158,000$ 2,036,671$ 1,194,759$ 841,912$ 2,194,671$ 158,000$ WT1403 Reclaimed Water Line Extension Debt Payment-Impact 479,451$ 121,694$ 601,145$ 560,579$ 40,566$ 720,889$ 119,744$ WT1603 Misc. Valve Replacement (min bal $150,000)160,000$ 105,000$ 265,000$ 121,327$ 143,673$ 390,000$ 125,000$ WT1604 Reclaimed Water Line Extension Phase III 544,173$ 3,991,181$ 4,535,354$ 297,131$ 4,238,223$ 4,535,354$ -$ WT1801 SH183 Phase II Water Relocation -$ 780,672$ 780,672$ 22,368$ 758,304$ 780,672$ -$ WT1802 Well Replacement Design-Fuller/Far North -$ 783,480$ 783,480$ 140,343$ 643,137$ 783,480$ -$ FB9910 FB - Water Impact (Restricted) -$ -$ -$ -$ -$ -$ (1,984,678)$ FB9901 FB - Water & Wastewater CIP -$ -$ -$ -$ -$ -$ (95,472)$ 10,004,024$ 6,367,215$ 16,371,239$ 9,333,048$ 7,038,191$ 17,029,657$ (1,421,732)$ Sub-Total Street ProjectsSub-Total Drainage ProjectsSub-Total Wastewater ProjectsSub-Total Water Projects149 CAPITAL IMPROVEMENTS PROGRAMFUNDED PROJECTS SUMMARYProject Number Project DescriptionBudget as of 5/31/17Appropriation/ AmendmentBudget as of 5/31/18Expended as of 5/31/18Remaining FundsRevised Project Cost EstimatesUnfunded/ (Excess Funding) OTHERCM0304 Entry Monument135,782$ -$ 135,782$ 106,227$ 29,555$ 135,782$ -$ CM0804 Redevelopment 1,661,947$ 2,034,055$ 3,696,002$ 1,876,711$ 1,819,291$ 4,196,002$ 500,000$ CM1701 Municipal Plaza Improvements Phase II266,733$ -$ 266,733$ 61,555$ 205,178$ 266,733$ -$ DV9901 EDC Incentive Funds575,854$ 800,000$ 1,375,854$ 1,351,148$ 24,706$ 1,400,854$ 25,000$ ED1002 EDC Contingency250,000$ (32,493)$ 217,507$ -$ 217,507$ 250,000$ 32,493$ ED1601 Midtown Development16,417,980$ -$ 16,417,980$ 13,988,603$ 2,429,377$ 16,417,980$ -$ FM1201 ADA/TAS Facility Improvements (min bal $75,000)115,000$ -$ 115,000$ 43,630$ 71,370$ 140,000$ 25,000$ FM1708 Library Remodel 147,630$ 1,977,370$ 2,125,000$ 194,545$ 1,930,455$ 7,235,000$ 5,110,000$ (1)GC1801 TSGC Misc. Improvements (min bal $150,000)-$ 247,180$ 247,180$ 15,895$ 231,285$ 362,180$ 115,000$ PR0720 Misc. Park Improvements (min bal $100,000)745,500$ 50,000$ 795,500$ 735,190$ 60,310$ 885,500$ 90,000$ PR0804 Park Irrigation 250,000$ -$ 250,000$ 160,760$ 89,240$ 250,000$ -$ PR1401 Glade Parks Trail Connection 1,396,545$ -$ 1,396,545$ 1,144,536$ 252,009$ 1,396,545$ -$ FB9906 FB-EDC CIP-$ -$ -$ -$ -$ -$ (97,739)$ FB9908 FB-Texas Star Sports Complex CIP -$ -$ -$ -$ -$ -$ (16,101)$ FB9909 FB-General CIP -$ -$ -$ -$ -$ -$ (216,225)$ FB9913 FB-Car Rental CIP -$ -$ -$ -$ -$ -$ (273,878)$ FB9916 FB-TSGC CIP-$ -$ -$ -$ -$ -$ (6,366)$ FB9918 FB-Car Rental CIP Restricted -$ -$ -$ -$ -$ -$ (1,595,100)$ 21,962,971$ 5,076,112$ 27,039,083$ 19,678,800$ 7,360,283$ 32,936,576$ 3,692,084$ 51,470,606$ 19,222,744$ 70,693,350$ 44,299,388$ 26,393,962$ 77,529,261$ 1,664,397$ 1 The funds will be transferred upon award of construction contract.TOTAL FUNDED PROJECTSSub-Total Other Projects150                       151 Debt 152 2,454,909$ 1,547,774$ 1,547,774$ 1,755,981$ REVENUES Property Taxes 3,496,672$ 3,902,318$ 3,955,671$ 3,604,556$ Gross Receipts Tax -$ -$ -$ -$ General Sales Tax -$ -$ -$ -$ Selective Sales Tax -$ -$ -$ -$ Fines/Fees/Penalties 18,792$ 20,000$ 10,893$ 15,000$ Licenses & Permits -$ -$ -$ -$ Interest Income 83,910$ 41,420$ 82,054$ 83,400$ Intergovernmental Revenue -$ -$ -$ -$ Charges for Service -$ -$ -$ -$ Miscellaneous/Rental Income 548,800$ 495,000$ 553,200$ 495,000$ Insurance/Risk/Other Financing Sources -$ 26,967$ 169,085$ -$ Revenues before Transfers 4,148,174$ 4,485,705$ 4,770,903$ 4,197,956$ Transfers from Other Funds 3,094,627$ 3,956,405$ 3,580,463$ 4,799,928$ TOTAL REVENUES 7,242,801$ 8,442,110$ 8,351,366$ 8,997,884$ TOTAL RESOURCES 9,697,710$ 9,989,884$ 9,899,140$ 10,753,865$ EXPENDITURES Personal Services -$ -$ -$ -$ Professional/Technical Services -$ -$ -$ -$ Contractual Services -$ -$ -$ -$ Utilities -$ -$ -$ -$ Maintenance -$ -$ -$ -$ Other Services/Contingencies -$ -$ -$ -$ Insurance -$ -$ -$ -$ General & Administrative -$ -$ -$ -$ Rebates/Incentives -$ -$ -$ -$ Supplies -$ -$ -$ -$ Capital Purchases (Equipment)-$ -$ -$ -$ Debt Service/Bank Charges 6,899,936$ 8,183,229$ 8,143,159$ 9,067,231$ Expenditures before Transfers 6,899,936$ 8,183,229$ 8,143,159$ 9,067,231$ Transfers to Other Funds 1,250,000$ -$ -$ -$ TOTAL EXPENDITURES 8,149,936$ 8,183,229$ 8,143,159$ 9,067,231$ ENDING FUND BALANCE 1,547,774$ 1,806,655$ 1,755,981$ 1,686,634$ BUDGET FY2018-19 The decline in fund balance if FY2019 is a planned drawdown of excess reserves above recommended reserve levels in lieu of increasing tax rates. ACTUAL FY2016-17 BUDGET FY2017-18 ESTIMATED FY2017-18 DEBT FUND SUMMARY BEGINNING FUND BALANCE 153 6,224,672$ 6,966,584$ 6,966,584$ 8,529,520$ REVENUES Property Taxes -$ -$ -$ -$ Gross Receipts Tax -$ -$ -$ -$ General Sales Tax -$ -$ -$ -$ Selective Sales Tax -$ -$ -$ -$ Fines/Fees/Penalties -$ -$ -$ -$ Licenses & Permits -$ -$ -$ -$ Interest Income 24,609$ 7,650$ 37,250$ 44,450$ Intergovernmental Revenue -$ -$ -$ -$ Charges for Service -$ -$ -$ -$ Miscellaneous/Rental Income 1,180,898$ 698,472$ 2,028,880$ 236,000$ Insurance/Risk/Other Financing Sources -$ -$ -$ -$ Revenues before Transfers 1,205,507$ 706,122$ 2,066,130$ 280,450$ Transfers from Other Funds -$ 607,500$ 41,015$ 1,018,880$ TOTAL REVENUES 1,205,507$ 1,313,622$ 2,107,145$ 1,299,330$ TOTAL RESOURCES 7,430,179$ 8,280,206$ 9,073,729$ 9,828,850$ EXPENDITURES Personal Services -$ -$ -$ -$ Professional/Technical Services -$ -$ -$ -$ Contractual Services -$ -$ -$ -$ Utilities -$ -$ -$ -$ Maintenance -$ -$ -$ -$ Other Services/Contingencies -$ -$ -$ -$ Insurance -$ -$ -$ -$ General & Administrative -$ -$ -$ -$ Rebates/Incentives -$ -$ -$ -$ Supplies -$ -$ -$ -$ Capital Purchases (Equipment)-$ -$ -$ -$ Debt Service/Bank Charges -$ -$ -$ -$ Expenditures before Transfers -$ -$ -$ -$ Transfers to Other Funds 463,595$ 733,194$ 544,209$ 1,043,131$ TOTAL EXPENDITURES 463,595$ 733,194$ 544,209$ 1,043,131$ ENDING FUND BALANCE 6,966,584$ 7,547,012$ 8,529,520$ 8,785,719$ Proposed FY2019 increase in fund balance is due to expected additional reserve requirements for planned debt issuances. BUDGET FY2018-19 ACTUAL FY2016-17 BUDGET FY2017-18 ESTIMATED FY2017-18 BEGINNING FUND BALANCE RESERVE FUND SUMMARY 154 INTRODUCTION TO DEBT General Obligation: The existing debt obligation and individual issues are presented in this section with graphical representations as well. Existing debt level reflects twenty-three years of remaining payments with additional debt capacity as the structure begins to decline after 2019 with significant drops in 2020, 2021, and 2022 and falls again in 2025. The final debt service payment lies in fiscal year 2041. This debt structure also represents the following ratios: Debt to Current Debt Debt per Capita: Tax Base: to Revenue: City - $879 0.86% 10% General obligation ratios are favorable. Low debts to tax base ratios reveal the City’s goal of not burdening the citizens with excessive debt. The portion of the tax rate that is dedicated for existing debt levels is approximately 19.63%, which is a fiscally sound level. The State of Texas limits the ad valorem tax rate to $2.50 per $100 valuation. Euless’ adopted rate of $0.4625 falls well below this limit. Euless’ financial policies address debt management. Excerpts from that section include the following:  Long-term debt will not be used for operating purposes, and the life of the bonds will not exceed the useful life of the projects financed.  Full disclosure of operations will be made to the bond rating agencies. The City staff, with the assistance of fiscal advisors or bond counsel, will prepare the necessary materials for and presentation to the rating agencies.  The debt burden should be within the norm of comparable cities. Specifically, maintenance of capacity not to exceed the median per capita and per assessed valuation will be monitored.  The City will issue bonds with an average life of twenty (20) years or less in order to reduce net interest cost and maintain future flexibility by paying off debt earlier. The issuance should contribute to an overall curve that is relatively flat. Future debt issues will be considered within the parameters of the City’s financial policies, ratios, supporting revenues, and political climate. Revenue: The City’s revenue bonds are comprised of Water and Wastewater, and Sales Tax. Water and Wastewater The existing debt structure represents twenty years of remaining payments with a decline in 2021. The final payment lies in 2038. Current Revenue Bond Coverage for Water and Wastewater Bonds is 5.43 (see Table 12 of September 30, 2017 CAFR). 155 Sales Tax The City approved an additional sales tax of a half-cent under the 4b Economic Development legislation. The purpose of the sales tax is to fund library projects, parks projects, and economic development. The final payment on these bonds is scheduled for 2019. Current coverage ratio is 131 times, as calculated below: Gross Sales Tax Receipts $5,316,453 131 Avg. Annual Debt outstanding $40,572 Euless’ financial policies also address revenue issues in the debt management section. Excerpts from that section include the following:  When appropriate, self-supporting revenues will pay debt service in lieu of tax revenues.  The City has both revenue bonds and other indebtedness of the Water and Wastewater Fund. The City will maintain two coverage ratios: 1.50 for revenue bonds “technical average” and 1.25 for all indebtedness “practical coverage”. The City will issue new debt for an Enterprise only after an “additional bonds” test has been applied.  The City will issue bonds with an average life of twenty (20) years or less in order to reduce net interest cost and maintain future flexibility by paying off debt earlier. The issuance should contribute to an overall curve that is relatively flat. Bond Rating History RATING AGENCY TYPE DATES RATING Standard & Poor’s G.O. 02/09 to present 6/04 to 02/09 4/84 to 6/04 4/84 AA AA- A+ A to A+ WW & SS Revenue 05/12 to present 9/08 to 05/12 6/04 to 9/08 6/87 to 6/04 AA+ AA A+ A 4/83 to 6/87 Prior to 4/83 A- BBB+ Moody’s G.O. *04/10 to present 5/85 to 04/10 Prior to 5/85 Aa2 A1 A WW & SS Revenue *04/10 to present 6/04 to 04/10 6/99 to 6/04 1983 to 1999 Aa2 A1 A2 A *Moody’s recalibrated its rating designations in April of 2010. 156 GENERAL & CERTIFICATES WATER &SALES TAX YEAR OF OBLIGATION GOLF WASTEWATER STAR CENTER ½ CENT REQUIREMENTS 2019 $5,712,030 $588,600 $1,106,112 $708,390 $40,572 $8,155,704 2020 $4,904,413 $589,125 $1,104,649 $708,863 $0 $7,307,049 2021 $3,967,188 $594,125 $833,849 $712,495 $0 $6,107,656 2022 $3,070,013 $591,275 $826,923 $710,020 $0 $5,198,231 2023 $3,071,938 $590,444 $834,074 $706,020 $0 $5,202,475 2024 $3,060,603 $588,738 $830,076 $708,740 $0 $5,188,157 2025 $2,520,769 $591,072 $690,103 $715,140 $0 $4,517,084 2026 $2,519,594 $587,419 $687,046 $0 $0 $3,794,059 2027 $2,526,419 $592,678 $693,248 $0 $0 $3,812,344 2028 $2,525,763 $0 $688,129 $0 $0 $3,213,891 2029 $2,528,075 $0 $692,353 $0 $0 $3,220,428 2030 $2,525,376 $0 $695,803 $0 $0 $3,221,179 2031 $2,287,978 $0 $693,030 $0 $0 $2,981,008 2032 $2,288,259 $0 $699,622 $0 $0 $2,987,881 2033 $2,291,266 $0 $695,471 $0 $0 $2,986,736 2034 $2,292,113 $0 $565,707 $0 $0 $2,857,819 2035 $1,865,472 $0 $571,462 $0 $0 $2,436,934 2036 $1,638,156 $0 $156,748 $0 $0 $1,794,904 2037 $1,641,813 $0 $159,588 $0 $0 $1,801,401 2038 $1,638,463 $0 $157,310 $0 $0 $1,795,772 2039 $999,625 $0 $0 $0 $0 $999,625 2040 $999,725 $0 $0 $0 $0 $999,725 2041 $589,425 $0 $0 $0 $0 $589,425 TOTAL $57,464,472 $5,313,475 $13,381,299 $4,969,668 $40,572 $81,169,486 ANNUAL DEBT SERVICE TOTAL GENERAL OBLIGATION AND REVENUE DEBT TOTAL ANNUAL DEBT SERVICE REQUIREMENTS SUMMARY OF TOTAL GENERAL OBLIGATION AND REVENUE DEBT $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 FISCAL YEAR SALES TAX 1/2 CENT GOLF STAR CENTER WATER & WASTEWATER G.O.'S AND C.O.'S 157 U.S. BANK, DALLAS, TX 84525 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $1,528,182 $4,183,848 $5,712,030 2020 $1,284,413 $3,620,000 $4,904,413 2021 $1,172,188 $2,795,000 $3,967,188 2022 $1,070,013 $2,000,000 $3,070,013 2023 $996,938 $2,075,000 $3,071,938 2024 $915,603 $2,145,000 $3,060,603 2025 $855,769 $1,665,000 $2,520,769 2026 $799,594 $1,720,000 $2,519,594 2027 $741,419 $1,785,000 $2,526,419 2028 $680,763 $1,845,000 $2,525,763 2029 $618,075 $1,910,000 $2,528,075 2030 $555,376 $1,970,000 $2,525,376 2031 $492,978 $1,795,000 $2,287,978 2032 $438,259 $1,850,000 $2,288,259 2033 $381,266 $1,910,000 $2,291,266 2034 $322,113 $1,970,000 $2,292,113 2035 $260,472 $1,605,000 $1,865,472 2036 $213,156 $1,425,000 $1,638,156 2037 $166,813 $1,475,000 $1,641,813 2038 $118,463 $1,520,000 $1,638,463 2039 $79,625 $920,000 $999,625 2040 $49,725 $950,000 $999,725 2041 $9,425 $580,000 $589,425 TOTAL $13,750,623 $43,713,848 $57,464,472 Total General Obligation Debt Composition of Debt Service DEBT SERVICE REQUIREMENTS SUMMARY OF GENERAL OBLIGATION DEBT $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 Fiscal Year Interest Principal 158 U.S. BANK, DALLAS, TX 84525 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $667,401 $3,158,848 $3,826,249 2020 $463,331 $2,550,000 $3,013,331 2021 $387,281 $1,695,000 $2,082,281 2022 $322,431 $865,000 $1,187,431 2023 $293,581 $890,000 $1,183,581 2024 $264,172 $920,000 $1,184,172 2025 $240,113 $400,000 $640,113 2026 $223,813 $415,000 $638,813 2027 $206,813 $435,000 $641,813 2028 $189,113 $450,000 $639,113 2029 $170,713 $470,000 $640,713 2030 $154,039 $485,000 $639,039 2031 $139,263 $500,000 $639,263 2032 $123,716 $515,000 $638,716 2033 $107,309 $535,000 $642,309 2034 $90,013 $550,000 $640,013 2035 $71,813 $570,000 $641,813 2036 $52,594 $590,000 $642,594 2037 $32,344 $610,000 $642,344 2038 $11,025 $630,000 $641,025 TOTAL $4,210,874 $17,233,848 $21,444,722 Tax-Supported General Obligation Debt Composition of Debt Service DEBT SERVICE REQUIREMENTS SUMMARY OF TAX-SUPPORTED GENERAL OBLIGATION DEBT $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 Fiscal Year Interest Principal 159 DATED:January 15, 2011 ORIGINAL AMOUNT: $6,575,000 PAYING AGENT: U.S. BANK N/A PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 3.500% $47,250 $47,250 $780,000 $874,500 2020 4.000% $33,600 $33,600 $820,000 $887,200 2021 4.000% $17,200 $17,200 $860,000 $894,400 TOTAL $98,050 $98,050 $2,460,000 $2,656,100 OPTION DATE: INTEREST Proceeds from the sale of the Bonds were used to (i) refund a portion of the City's outstanding debt in order to lower the overall debt service requirements of the City and (ii) to pay the costs associated with the issuance of the bonds. These Bonds are direct obligations of the City payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: GENERAL OBLIGATION REFUNDING BONDS,SERIES 2011 INTEREST RATES:BOND YEARS 2013-2014 @ 2.000%, 2015-2016 @ 3.000%, 2017-2019 @ 3.500%, 2020-2021 @ 4.000% 160 DATED:December 1, 2011 ORIGINAL AMOUNT: $5,955,000 PAYING AGENT: U.S. BANK February 15, 2021 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 FEBRUARY 15 REQUIREMENTS 2019 3.000% $52,109 $45,359 $450,000 $547,469 2020 4.000% $45,359 $35,959 $470,000 $551,319 2021 4.000% $35,959 $26,259 $485,000 $547,219 2022 4.000% $26,259 $16,159 $505,000 $547,419 2023 3.000% $16,159 $8,359 $520,000 $544,519 2024 3.125% $8,359 $0 $535,000 $543,359 TOTAL $184,206 $132,097 $2,965,000 $3,281,303 OPTION DATE: INTEREST Proceeds from the sale of the Bonds were used to (i) refund a portion of the City's outstanding debt in order to lower the overall debt service requirements of the City and (ii) to pay the costs associated with the issuance of the bonds. These Bonds are direct obligations of the City payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: GENERAL OBLIGATION REFUNDING BONDS,SERIES 2012 INTEREST RATES:BOND YEARS 2012-2016 @ 2.000%, 2017-2019 @ 3.000%, 2020-2022 @ 4.000%, 2023 @ 3.000% and 2024 @ 3.125% 161 DATED: ORIGINAL AMOUNT: $5,685,000 PAYING AGENT: U.S. BANK OPTION DATE: N/A PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 FEBRUARY 15 REQUIREMENTS 2019 3.000% $27,150 $13,800 $890,000 $930,950 2020 3.000% $13,800 $0 $920,000 $933,800 TOTAL $40,950 $13,800 $1,810,000 $1,864,750 INTEREST Proceeds from the sale of the Bonds will be used to (i) refund a portion of the City's currently refundable outstanding debt (the "Refunded Obligations"), in order to lower the overall debt service requirements of the City and (ii) payment of costs associated with the issuance of the Bonds (see "Plan of Financing - Refunded Obligations" for more detail and Schedule I for a detailed description of the Refunded Obligations). These Bonds are direct obligations of the City payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014 INTEREST RATES: BOND YEARS 2016-2020 @ 3.00% October 15, 2014 162 DATED: ORIGINAL AMOUNT: $1,280,000 PAYING AGENT: FROST BANK OPTION DATE: N/A PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 1.160% $2,523 $2,523 $435,000 $440,046 TOTAL $2,523 $2,523 $435,000 $440,046 INTEREST Proceeds from the sale of the Notes will be used to (i) purchase equipment for the fire department and (ii) payment of costs associated with the issuance of the Notes. These Notes are direct obligations of the City payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAX ANTICIPATION NOTES, SERIES 2016 August 30, 2016 INTEREST RATES: BOND YEARS 2017-2019 @ 1.16% 163 CITY OF EULESS DEBT SERVICE REQUIREMENTS DATED: ORIGINAL AMOUNT: $275,000 PAYING AGENT:DE LAGE LANDEN PUBLIC FINANCE LLC OPTION DATE:N/A IRS PRINCIPAL TOTAL YEAR INTEREST DECEMBER 15 DECEMBER 15 REQUIREMENTS 2019 8.024% $7,818 $83,848 $91,667 TOTAL $7,818 $83,848 $91,667 INTEREST Proceeds from the sale of the Notes will be used to purchase equipment for the City. The Lease is a direct obligation of the City payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. DESCRIPTION:CISCO CAPITAL LEASE, SERIES 2016 October 31, 2016 INTEREST RATES:* 0% INTEREST RATE; 8.024% Yield for Internal Revenue Purposes 164 DATED: ORIGINAL AMOUNT: $625,000 PAYING AGENT: FIRST NATIONAL BANK OF TEXAS OPTION DATE: N/A PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 1.170% $1,755 $1,755 $300,000 $303,510 TOTAL $1,755 $1,755 $300,000 $303,510 INTEREST Proceeds from the sale of the Notes will be used to (i) purchase equipment for the City and (ii) payment of costs associated with the issuance of the Notes. These Notes are direct obligations of the City payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAX ANTICIPATION NOTES, SERIES 2017 September 12, 2017 INTEREST RATES: BOND YEARS 2018-2019 @ 1.17% 165 DATED: ORIGINAL AMOUNT: $9,180,000 PAYING AGENT: U.S. BANK OPTION DATE: February 15, 2028 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 FEBRUARY 15 REQUIREMENTS 2019 4.000% $265,051 $153,056 $220,000 $638,108 2020 3.000% $153,056 $147,956 $340,000 $641,013 2021 3.000% $147,956 $142,706 $350,000 $640,663 2022 3.000% $142,706 $137,306 $360,000 $640,013 2023 3.000% $137,306 $131,756 $370,000 $639,063 2024 4.000% $131,756 $124,056 $385,000 $640,813 2025 4.000% $124,056 $116,056 $400,000 $640,113 2026 4.000% $116,056 $107,756 $415,000 $638,813 2027 4.000% $107,756 $99,056 $435,000 $641,813 2028 4.000% $99,056 $90,056 $450,000 $639,113 2029 4.000% $90,056 $80,656 $470,000 $640,713 2030 3.000% $80,656 $73,382 $485,000 $639,039 2031 3.000% $73,381 $65,881 $500,000 $639,263 2032 3.125% $65,881 $57,834 $515,000 $638,716 2033 3.125% $57,834 $49,475 $535,000 $642,309 2034 3.250% $49,475 $40,538 $550,000 $640,013 2035 3.250% $40,538 $31,275 $570,000 $641,813 2036 3.375% $31,275 $21,319 $590,000 $642,594 2037 3.375% $21,319 $11,025 $610,000 $642,344 2038 3.500% $11,025 $0 $630,000 $641,025 TOTAL $1,946,198 $1,681,148 $9,180,000 $12,807,346 A portion of the debt service is being repaid from other sources. INTEREST Proceeds from the sale of the Certificates will be used for (i) the construction of public works, to wit: (a) constructing, renovating, enlarging, equipping and improving various streets, roads, bridges, overpasses, alleyways, thoroughfares, sidewalks, pathways and related municipal facilities within the City, including lane markings, signage, street, drainage, curbs, gutters, ADA accessibility, traffic signals, lighting and landscaping related thereto and the acquisition of necessary rights-of-way and land in connection therewith; (b) constructing, renovating, enlarging, equipping, and improving water and wastewater facilities for the City and the acquisition of necessary rights-of-way and land in connection therewith; and (c) renovating, improving and equipping existing City buildings and facilities for police, fire and other City departments, including HVAC system and lighting improvements, and (ii) professional services rendered in relation to such projects and the financing thereof. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2018 March 1, 2018 INTEREST RATES: BOND YEARS 2019 @ 4.00%, 2020-2023 @ 3.00%, 2024-2029 @ 4.00%, 2030- 2031 @ 3.00%, 2032-2033 @ 3.125%, 2034-2035 @ 3.250%, 2036-2037 @ 3.3375% and 2038 @ 3.50% 166 U.S. BANK, DALLAS, TX 84525 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $860,781 $1,025,000 $1,885,781 2020 $821,081 $1,070,000 $1,891,081 2021 $784,906 $1,100,000 $1,884,906 2022 $747,581 $1,135,000 $1,882,581 2023 $703,356 $1,185,000 $1,888,356 2024 $651,431 $1,225,000 $1,876,431 2025 $615,656 $1,265,000 $1,880,656 2026 $575,781 $1,305,000 $1,880,781 2027 $534,606 $1,350,000 $1,884,606 2028 $491,650 $1,395,000 $1,886,650 2029 $447,363 $1,440,000 $1,887,363 2030 $401,338 $1,485,000 $1,886,338 2031 $353,716 $1,295,000 $1,648,716 2032 $314,544 $1,335,000 $1,649,544 2033 $273,956 $1,375,000 $1,648,956 2034 $232,100 $1,420,000 $1,652,100 2035 $188,659 $1,035,000 $1,223,659 2036 $160,563 $835,000 $995,563 2037 $134,469 $865,000 $999,469 2038 $107,438 $890,000 $997,438 2039 $79,625 $920,000 $999,625 2040 $49,725 $950,000 $999,725 2041 $9,425 $580,000 $589,425 TOTAL $9,539,750 $26,480,000 $36,019,750 TIRZ - Tax Increment Reinvestment Zone PID - Public Improvement District TIRZ/PID-Supported General Obligation Debt Composition of Debt Service DEBT SERVICE REQUIREMENTS SUMMARY OF TIRZ/PID-SUPPORTED GENERAL OBLIGATION DEBT $0 $500,000 $1,000,000 $1,500,000 $2,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 Fiscal Year Interest Principal 167 DATED:January 15, 2011 ORIGINAL AMOUNT: $180,130 PAYING AGENT: U.S. BANK August 15, 2021 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 4.000% $2,650 $2,650 $10,000 $15,300 2020 4.000% $2,450 $2,450 $10,000 $14,900 2021 4.000% $2,250 $2,250 $10,000 $14,500 2022 4.000% $2,050 $2,050 $10,000 $14,100 2023 4.000% $1,850 $1,850 $10,000 $13,700 2024 4.000% $1,650 $1,650 $10,000 $13,300 2025 4.000% $1,450 $1,450 $10,000 $12,900 2026 4.000% $1,250 $1,250 $10,000 $12,500 2027 4.125% $1,050 $1,050 $10,000 $12,100 2028 4.125% $844 $844 $10,000 $11,688 2029 4.250% $638 $638 $15,000 $16,275 2030 4.250% $319 $319 $15,000 $15,638 TOTAL $18,450 $18,450 $130,000 $166,900 OPTION DATE: INTEREST Proceeds from the sale of the Bonds were used for (i) street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, signage, lighting, and traffic signalization incidental thereto, and the acquisition of land and rights-of-way therefor, and (ii) to pay the costs associated with the issuance of the bonds. These Bonds are direct obligations of the City payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2011 INTEREST RATES:BOND YEARS 2011-2018 @ 3.000%, 2019-2026 @ 4.000%, 2027-2028 @ 4.125%, 2029-2030 @ 4.250% 168 DATED:January 15, 2011 ORIGINAL AMOUNT: $2,854,870 PAYING AGENT: U.S. BANK August 15, 2021 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 4.000% $42,772 $42,772 $140,000 $225,544 2020 4.000% $39,972 $39,972 $145,000 $224,944 2021 4.000% $37,072 $37,072 $150,000 $224,144 2022 4.000% $34,072 $34,072 $155,000 $223,144 2023 4.000% $30,972 $30,972 $165,000 $226,944 2024 4.000% $27,672 $27,672 $170,000 $225,344 2025 4.000% $24,272 $24,272 $175,000 $223,544 2026 4.000% $20,772 $20,772 $185,000 $226,544 2027 4.125% $17,072 $17,072 $195,000 $229,144 2028 4.125% $13,050 $13,050 $200,000 $226,100 2029 4.250% $8,925 $8,925 $205,000 $222,850 2030 4.250% $4,569 $4,569 $215,000 $224,138 TOTAL $301,191 $301,191 $2,100,000 $2,702,381 Proceeds from the sale of the Bonds were used for (i) street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, signage, lighting, and traffic signalization incidental thereto, and the acquisition of land and rights-of-way therefor, and (ii) to pay the costs associated with the issuance of the bonds. These Bonds are direct obligations of the City payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2011 (GLADE PARKS) INTEREST RATES:BOND YEARS 2011-2018 @3.000%, 2019-2026 @ 4.000%, 2027-2028@ 4.125%, 2029-2030 @4.250% OPTION DATE: INTEREST 169 DATED:October 15, 2014 ORIGINAL AMOUNT: $5,715,000 PAYING AGENT: U.S. BANK August 15, 2024 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 5.000% $92,325 $92,325 $240,000 $424,650 2020 5.000% $86,325 $86,325 $255,000 $427,650 2021 5.000% $79,950 $79,950 $265,000 $424,900 2022 5.000% $73,325 $73,325 $280,000 $426,650 2023 5.000% $66,325 $66,325 $295,000 $427,650 2024 3.000% $58,950 $58,950 $305,000 $422,900 2025 3.000% $54,375 $54,375 $315,000 $423,750 2026 3.000% $49,650 $49,650 $325,000 $424,300 2027 3.000% $44,775 $44,775 $335,000 $424,550 2028 3.000% $39,750 $39,750 $345,000 $424,500 2029 3.000% $34,575 $34,575 $355,000 $424,150 2030 3.000% $29,250 $29,250 $365,000 $423,500 2031 3.000% $23,775 $23,775 $380,000 $427,550 2032 3.000% $18,075 $18,075 $390,000 $426,150 2033 3.000% $12,225 $12,225 $400,000 $424,450 2034 3.000% $6,225 $6,225 $415,000 $427,450 TOTAL $769,875 $769,875 $5,265,000 $6,804,750 OPTION DATE: INTEREST Proceeds from the sale of the Bonds will be used for (i) street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, signage, lighting, and traffic signalization incidental thereto, and the acquisition of land and rights-of-way therefor, and (ii) professional services rendered in relation to such projects and the financing thereof. These Bonds are direct obligations of the City payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2014 (GLADE PARKS) INTEREST RATES: BOND YEARS 2017-2023 @5.000%, 2024-2034 @ 3.000% 170 DATED:October 27, 2015 ORIGINAL AMOUNT: $3,030,000 PAYING AGENT: U.S. BANK February 15, 2026 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 FEBRUARY 15 REQUIREMENTS 2019 5.000% $53,125 $50,125 $120,000 $223,250 2020 5.000% $50,125 $46,875 $130,000 $227,000 2021 5.000% $46,875 $43,500 $135,000 $225,375 2022 5.000% $43,500 $40,000 $140,000 $223,500 2023 5.000% $40,000 $36,375 $145,000 $221,375 2024 5.000% $36,375 $32,625 $150,000 $219,000 2025 3.000% $32,625 $30,225 $160,000 $222,850 2026 3.000% $30,225 $27,750 $165,000 $222,975 2027 3.000% $27,750 $25,200 $170,000 $222,950 2028 3.000% $25,200 $22,500 $180,000 $227,700 2029 3.000% $22,500 $19,725 $185,000 $227,225 2030 3.000% $19,725 $16,875 $190,000 $226,600 2031 3.125% $16,875 $13,828 $195,000 $225,703 2032 3.125% $13,828 $10,703 $200,000 $224,531 2033 3.250% $10,703 $7,291 $210,000 $227,994 2034 3.500% $7,291 $3,797 $215,000 $226,088 2035 3.375% $3,797 $0 $225,000 $228,797 TOTAL $480,519 $427,394 $2,915,000 $3,822,913 OPTION DATE: INTEREST Proceeds from the sale of the Certificates will be used for (i) street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, signage, lighting and traffic signalization incident thereto and the acquisition of land and rights-of-way therefor and (ii) professional services rendered in relation to such projects and the financing thereof. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2015 (GLADE PARKS PHASE 3) INTEREST RATES: BOND YEARS 2016-2035 @3.000% - 5.000% 171 DATED:January 12, 2016 ORIGINAL AMOUNT: $16,450,000 PAYING AGENT: U.S. BANK August 15, 2026 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 AUGUST 15 REQUIREMENTS 2019 3.000% $241,019 $241,019 $515,000 $997,037 2020 2.000% $233,294 $233,294 $530,000 $996,588 2021 2.000% $227,994 $227,994 $540,000 $995,988 2022 3.000% $222,594 $222,594 $550,000 $995,188 2023 4.000% $214,344 $214,344 $570,000 $998,688 2024 2.250% $202,944 $202,944 $590,000 $995,888 2025 3.000% $196,306 $196,306 $605,000 $997,613 2026 3.000% $187,231 $187,231 $620,000 $994,463 2027 3.000% $177,931 $177,931 $640,000 $995,863 2028 3.000% $168,331 $168,331 $660,000 $996,663 2029 3.000% $158,431 $158,431 $680,000 $996,863 2030 3.000% $148,231 $148,231 $700,000 $996,463 2031 3.000% $137,731 $137,731 $720,000 $995,463 2032 3.000% $126,931 $126,931 $745,000 $998,863 2033 3.000% $115,756 $115,756 $765,000 $996,513 2034 3.000% $104,281 $104,281 $790,000 $998,563 2035 3.000% $92,431 $92,431 $810,000 $994,863 2036 3.125% $80,281 $80,281 $835,000 $995,563 2037 3.125% $67,234 $67,234 $865,000 $999,469 2038 3.125% $53,719 $53,719 $890,000 $997,438 2039 3.250% $39,813 $39,813 $920,000 $999,625 2040 3.250% $24,863 $24,863 $950,000 $999,725 2041* 3.250% $9,425 $0 $580,000 $589,425 TOTAL $3,231,116 $3,221,690 $16,070,000 $22,522,806 * In 2041, Prinicipal payment and final maturity is February 15, 2041. OPTION DATE: INTEREST Proceeds from the sale of the Certificates will be used for (i) public infrastructure including demolishing dangerous structures, streets, street improvements, water and wastewater, drainage, curbs, gutters, sidewalks, entryways, signage, lighting, traffic signalization and other public improvements thereto and the acquisition of land and rights-of- way therefor and (ii) professional services rendered in relation to such projects and the financing thereof. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: TAX & WATERWORKS & SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2016 (MIDTOWN DEVELOPMENT) INTEREST RATES: BOND YEARS 2016-2041 @2.000% - 4.000% 172 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $173,390 $535,000 $708,390 2020 $153,863 $555,000 $708,863 2021 $132,495 $580,000 $712,495 2022 $110,020 $600,000 $710,020 2023 $86,020 $620,000 $706,020 2024 $58,740 $650,000 $708,740 2025 $30,140 $685,000 $715,140 TOTAL $744,668 $4,225,000 $4,969,668 G.O. - General Obligation Taxable (Self Supporting) G.O. Debt Composition of Debt Service DEBT SERVICE REQUIREMENTS SUMMARY OF TAXABLE (SELF SUPPORTING) G.O. DEBT $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2019 2021 2023 2025 Fiscal Year Interest Principal 173 DATED:AUGUST 15, 2010 ORIGINAL AMOUNT: $8,110,000 PAYING AGENT: U.S. BANK August 1, 2021 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 1 AUGUST 1 AUGUST 1 REQUIREMENTS 2019 3.650% $86,695 $86,695 $535,000 $708,390 2020 3.850% $76,931 $76,931 $555,000 $708,863 2021 3.875% $66,248 $66,248 $580,000 $712,495 2022 4.000% $55,010 $55,010 $600,000 $710,020 2023 4.400% $43,010 $43,010 $620,000 $706,020 2024 4.400% $29,370 $29,370 $650,000 $708,740 2025 4.400% $15,070 $15,070 $685,000 $715,140 TOTAL $372,334 $372,334 $4,225,000 $4,969,668 CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:TAXABLE GENERAL OBLIGATION REFUNDING BONDS SERIES 2010 Proceeds from the sale of the Certificates were used to purchase a community ice skating recreation facility and to pay the costs associated with the issuance of the Certificates. The Certificates constitute direct obligations of the City, payable from a combination of (i) the levy and collection of a direct and continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law, and (ii) a limited pledge (not to exceed $1,000) of the Net revenues of the City's combined Waterworks and Sewer System as provided in the Ordinance. The facility is operated by the Dallas Stars; rental payments received from the operator are used to fund this self- supporting debt. INTEREST RATES: 2011 - 2025, RATES VARY FROM .680% TO 4.400% OPTION DATE: INTEREST 174 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $113,600 $475,000 $588,600 2020 $99,125 $490,000 $589,125 2021 $84,125 $510,000 $594,125 2022 $71,275 $520,000 $591,275 2023 $60,444 $530,000 $590,444 2024 $48,738 $540,000 $588,738 2025 $36,072 $555,000 $591,072 2026 $22,419 $565,000 $587,419 2027 $7,678 $585,000 $592,678 TOTAL $543,475 $4,770,000 $5,313,475 G.O. - General Obligation C.O. - Certificates of Obligation These bonds were originally issued as C. O. bonds paid from the surplus revenues of each function. Therefore, they are presented separately from other G.O. and C.O. Bonds. Golf G.O. Refunding Debt Composition of Debt Service DEBT SERVICE REQUIREMENTS SUMMARY OF GOLF G.O. REFUNDING DEBT $0 $200,000 $400,000 $600,000 $800,000 2019 2021 2023 2025 2027 Fiscal Year PRINCIPAL INTEREST 175 DATED:November 1, 2012 ORIGINAL AMOUNT: $7,185,000 PAYING AGENT: U.S. BANK FEBRUARY 15, 2022 PRINCIPAL TOTAL YEAR COUPON FEBRUARY 15 AUGUST 15 FEBRUARY 15 REQUIREMENTS 2019 3.000% $60,363 $53,238 $475,000 $588,600 2020 3.000% $53,238 $45,888 $490,000 $589,125 2021 3.000% $45,888 $38,238 $510,000 $594,125 2022 2.000% $38,238 $33,038 $520,000 $591,275 2023 2.125% $33,038 $27,406 $530,000 $590,444 2024 2.250% $27,406 $21,331 $540,000 $588,738 2025 2.375% $21,331 $14,741 $555,000 $591,072 2026 2.500% $14,741 $7,678 $565,000 $587,419 2027 2.625% $7,678 $0 $585,000 $592,678 TOTAL $301,919 $241,556 $4,770,000 $5,313,475 AVERAGE ANNUAL DEBT OUTSTANDING $590,386 CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION: GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012A-GOLF Proceeds from the sale of the Bonds were used to (i) advance refund a portion of the City's outstanding debt in order to lower the overall debt service requirements of the City and (ii) to pay the costs associated with the issuance of the bonds. INTEREST RATES: BOND YEAR 2013-2014 @ 2.00%, 2015-2016 @ 4.000%, 2017-2018 @ 2.000%, 2019-2021 @ 3.000%, 2022 @ 2.000%, 2023 @ 2.125%, 2024 @ 2.250%, 2025 @ 2.375%, 2026 @ 2.500%, 2027 @ 2.625% OPTION DATE: INTEREST 176 YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $191,112 $915,000 $1,106,112 2020 $174,649 $930,000 $1,104,649 2021 $163,849 $670,000 $833,849 2022 $156,923 $670,000 $826,923 2023 $149,074 $685,000 $834,074 2024 $140,076 $690,000 $830,076 2025 $130,103 $560,000 $690,103 2026 $122,046 $565,000 $687,046 2027 $113,248 $580,000 $693,248 2028 $103,129 $585,000 $688,129 2029 $92,353 $600,000 $692,353 2030 $80,803 $615,000 $695,803 2031 $68,030 $625,000 $693,030 2032 $54,622 $645,000 $699,622 2033 $40,471 $655,000 $695,471 2034 $25,707 $540,000 $565,707 2035 $16,462 $555,000 $571,462 2036 $6,748 $150,000 $156,748 2037 $4,588 $155,000 $159,588 2038 $2,310 $155,000 $157,310 TOTAL $1,836,299 $11,545,000 $13,381,299 AVERAGE ANNUAL PRINCIPAL AND INTEREST OUTSTANDING $669,065 DEBT SERVICE REQUIREMENTS SUMMARY OF WATER AND WASTEWATER SYSTEM REVENUE DEBT Water & Wastewater Revenue Debt Composition of Debt Service $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 Fiscal Year PRINCIPAL INTEREST 177 DESCRIPTION: DATED: March 29, 2012 ORIGINAL AMOUNT: $3,340,000 PAYING AGENT: BANK OF TEXAS OPTION DATE: N/A PRINCIPAL TOTAL YEAR COUPON JANUARY 15 JULY 15 JULY 15 REQUIREMENTS 2019 2.030% $13,347 $13,347 $385,000 $411,694 2020 2.030% $9,440 $9,440 $395,000 $413,880 2021 2.030% $5,430 $5,430 $130,000 $140,860 2022 2.030% $4,111 $4,111 $130,000 $138,222 2023 2.030% $2,791 $2,791 $140,000 $145,582 2024 2.030% $1,370 $1,370 $135,000 $137,740 TOTAL $36,489 $36,489 $1,315,000 $1,387,978 INTEREST Proceeds from the sale of the Bonds were used to (i) advance refund a portion of the City's outstanding Water and Wastewater System debt in order to lower the overall debt service requirements of the Water and Sewer fund and (ii) to pay the costs associated with the issuance of the Bonds. CITY OF EULESS DEBT SERVICE REQUIREMENTS WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 2012 INTEREST RATES: BOND YEAR 2012-2024 @ 2.030% 178 DESCRIPTION: DATED: June 25, 2013 ORIGINAL AMOUNT: $1,585,000 PAYING AGENT: U. S. BANK OPTION DATE: July 25, 2023 PRINCIPAL TOTAL YEAR COUPON JANUARY 15 JULY 15 JULY 15 REQUIREMENTS 2019 3.000% $27,372 $27,372 $65,000 $119,744 2020 3.000% $26,397 $26,397 $65,000 $117,794 2021 3.625% $25,422 $25,422 $70,000 $120,844 2022 3.625% $24,153 $24,153 $70,000 $118,306 2023 3.625% $22,884 $22,884 $75,000 $120,769 2024 4.000% $21,525 $21,525 $75,000 $118,050 2025 4.000% $20,025 $20,025 $80,000 $120,050 2026 4.000% $18,425 $18,425 $80,000 $116,850 2027 4.500% $16,825 $16,825 $85,000 $118,650 2028 4.500% $14,913 $14,913 $90,000 $119,825 2029 4.500% $12,888 $12,888 $95,000 $120,775 2030 5.000% $10,750 $10,750 $100,000 $121,500 2031 5.000% $8,250 $8,250 $105,000 $121,500 2032 5.000% $5,625 $5,625 $110,000 $121,250 2033 5.000% $2,875 $2,875 $115,000 $120,750 TOTAL $258,328 $258,328 $1,280,000 $1,796,656 Proceeds from the sale of the Bonds will be used for (i) the construction, acquisition, purchase, renovation, enlargement, equipment and improvement of waterworks and sewer system properties and facilities, including the acquisition of land and rights-of-way therefor, and (ii) paying the costs associated with the issuance of the Bonds. CITY OF EULESS DEBT SERVICE REQUIREMENTS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2013 INTEREST RATES: BOND YEAR 2012-2033 @ 2.00% - 5.00% INTEREST 179 DESCRIPTION: DATED:* June 15, 2015 ORIGINAL AMOUNT:$4,685,000 PAYING AGENT:Texas Water Development Board OPTION DATE:N/A PRINCIPAL TOTAL YEAR COUPON JANUARY 15 JULY 15 JULY 15 REQUIREMENTS 2019 0.110%$27,346 $27,346 $220,000 $274,693 2020 0.350%$27,225 $27,225 $220,000 $274,451 2021 0.590%$26,840 $26,840 $220,000 $273,681 2022 0.800%$26,191 $26,191 $220,000 $272,383 2023 0.960%$25,311 $25,311 $220,000 $270,623 2024 1.120%$24,255 $24,255 $225,000 $273,511 2025 1.250%$22,995 $22,995 $225,000 $270,991 2026 1.390%$21,589 $21,589 $230,000 $273,178 2027 1.500%$19,991 $19,991 $235,000 $274,981 2028 1.590%$18,228 $18,228 $235,000 $271,456 2029 1.670%$16,360 $16,360 $240,000 $272,720 2030 1.740%$14,356 $14,356 $245,000 $273,712 2031 1.800%$12,224 $12,224 $250,000 $274,449 2032 1.850%$9,974 $9,974 $255,000 $274,949 2033 1.900%$7,616 $7,616 $260,000 $275,231 2034 1.940%$5,146 $5,146 $260,000 $270,291 2035 1.980%$2,624 $2,624 $265,000 $270,247 TOTAL $308,271 $308,271 $4,025,000 $4,641,542 *Previously reported as August 5, 2015. Proceeds from the sale of the Bonds will be used for (i)the construction, acquisition, purchase, renovation, enlargement, equipment and improvement of waterworks and sewer system properties and facilities,including the acquisition of land and rights-of-way therefor, and (ii) paying the costs associated with the issuance of the Bonds. CITY OF EULESS DEBT SERVICE REQUIREMENTS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2015A (Meters) INTEREST RATES:BOND YEARS 2019-2035 @ 0% - 1.98% INTEREST 180 DESCRIPTION: DATED:* June 15, 2015 ORIGINAL AMOUNT:$2,380,000 PAYING AGENT:Texas Water Development Board OPTION DATE:N/A PRINCIPAL TOTAL YEAR COUPON JANUARY 15 JULY 15 JULY 15 REQUIREMENTS 2019 0.000%$11,349 $11,349 $120,000 $142,698 2020 0.050%$11,349 $11,349 $120,000 $142,698 2021 0.290%$11,319 $11,319 $120,000 $142,638 2022 0.500%$11,145 $11,145 $120,000 $142,290 2023 0.660%$10,845 $10,845 $120,000 $141,690 2024 0.820%$10,449 $10,449 $120,000 $140,898 2025 0.950%$9,957 $9,957 $120,000 $139,914 2026 1.090%$9,387 $9,387 $120,000 $138,774 2027 1.200%$8,733 $8,733 $125,000 $142,466 2028 1.290%$7,983 $7,983 $125,000 $140,966 2029 1.370%$7,177 $7,177 $125,000 $139,353 2030 1.440%$6,320 $6,320 $130,000 $142,641 2031 1.500%$5,384 $5,384 $130,000 $140,769 2032 1.550%$4,409 $4,409 $135,000 $143,819 2033 1.600%$3,363 $3,363 $135,000 $141,726 2034 1.640%$2,283 $2,283 $135,000 $139,566 2035 1.680%$1,176 $1,176 $140,000 $142,352 TOTAL $132,626 $132,626 $2,140,000 $2,405,252 *Previously reported as August 5, 2015. Proceeds from the sale of the Bonds will be used for (i)the construction, acquisition, purchase, renovation, enlargement, equipment and improvement of waterworks and sewer system properties and facilities,including the acquisition of land and rights-of-way therefor, and (ii) paying the costs associated with the issuance of the Bonds. CITY OF EULESS DEBT SERVICE REQUIREMENTS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2015B (Reclaimed Water System) INTEREST RATES:BOND YEARS 2020-2035 @ 0% -1.68% INTEREST 181 DESCRIPTION: DATED:* April 15, 2018 ORIGINAL AMOUNT:$2,785,000 PAYING AGENT:Texas Water Development Board OPTION DATE:N/A PRINCIPAL TOTAL YEAR COUPON JANUARY 15 JULY 15 JULY 15 REQUIREMENTS 2019 0.000%$19,370 $12,914 $125,000 $157,284 2020 0.000%$12,914 $12,914 $130,000 $155,827 2021 0.080%$12,914 $12,914 $130,000 $155,827 2022 0.240%$12,862 $12,862 $130,000 $155,723 2023 0.410%$12,706 $12,706 $130,000 $155,411 2024 0.540%$12,439 $12,439 $135,000 $159,878 2025 0.670%$12,075 $12,075 $135,000 $159,149 2026 0.810%$11,622 $11,622 $135,000 $158,245 2027 0.940%$11,076 $11,076 $135,000 $157,151 2028 1.020%$10,441 $10,441 $135,000 $155,882 2029 1.110%$9,753 $9,753 $140,000 $159,505 2030 1.170%$8,976 $8,976 $140,000 $157,951 2031 1.220%$8,157 $8,157 $140,000 $156,313 2032 1.270%$7,303 $7,303 $145,000 $159,605 2033 1.320%$6,382 $6,382 $145,000 $157,764 2034 1.370%$5,425 $5,425 $145,000 $155,850 2035 1.410%$4,432 $4,432 $150,000 $158,863 2036 1.440%$3,374 $3,374 $150,000 $156,748 2037 1.470%$2,294 $2,294 $155,000 $159,588 2038 1.490%$1,155 $1,155 $155,000 $157,310 TOTAL $185,664 $179,208 $2,785,000 $3,149,872 * Previously reported as April 12, 2018 Proceeds from the sale of the Bonds will be used for (i)the construction, acquisition, purchase, renovation, enlargement, equipment and improvement of waterworks and sewer system properties and facilities,including the acquisition of land and rights-of-way therefor, and (ii) paying the costs associated with the issuance of the Bonds. CITY OF EULESS DEBT SERVICE REQUIREMENTS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2018 INTEREST RATES:BOND YEARS 2018-2038 @ 0% -1.68% INTEREST 182 TOTAL YEAR INTEREST PRINCIPAL REQUIREMENTS 2019 $572 $40,000 $40,572 TOTAL $572 $40,000 $40,572 MAXIMUM ANNUAL DEBT SERVICE (RESERVE)$40,572 AVERAGE ANNUAL DEBT OUTSTANDING $40,572 Sales Tax Revenue Debt Composition of Debt Service SUMMARY OF SALES TAX REVENUE DEBT DEBT SERVICE REQUIREMENTS $0 $50,000 2019 Fiscal Year PRINCIPAL INTEREST 183 DATED:JANUARY 12, 2012 ORIGINAL AMOUNT: $3,785,000 PAYING AGENT: BANK OF TEXAS OPTION DATE:N/A PRINCIPAL TOTAL YEAR COUPON MARCH 15 SEPTEMBER 15 SEPTEMBER 15 REQUIREMENTS 2019 1.43% $286 $286 $40,000 $40,572 TOTAL $286 $286 $40,000 $40,572 INTEREST Proceeds from the sale of the Bonds were used to refund the Corporation's Sales Tax Revenue Refunding Bonds, Series 2002 and Corporation's Sales Tax Revenue Refunding Bonds, Series 2006, to lower interest costs on such indebtedness, and to pay the costs of issuance associated with the bonds. The Bonds are special obligations of the Corporation, payable from and secured by a lien on and pledge of certain pledged revenues which include the proceeds of a half of one percent sales and use tax levied within the City of Euless for the sole benefit of the Corporation. CITY OF EULESS DEBT SERVICE REQUIREMENTS DESCRIPTION:EULESS DEVELOPMENT CORPORATION, SALES TAX REVENUE REFUNDING BONDS, SERIES 2012 INTEREST RATE: 1.43% 184                       185 Appendices 186                       187 Appendix A Human Resources 188 FY 16/17 FY 17/18 FY 17/18 FY 18/19 ACTUAL BUDGETED ESTIMATED BUDGETED CITY MANAGERS OFFICE 3.50 3.50 3.50 3.50 CITY SECRETARY 3.50 3.50 3.50 3.50 INFORMATION SERVICES 1.00 1.00 1.00 1.00 FACILITY MAINTENANCE 3.50 1 4.00 4.00 4.00 LIBRARY 9.00 9.00 9.00 9.00 Total City Administration 20.50 21.00 21.00 21.00 FINANCE/BUDGET 2.00 2.00 2.00 2.00 COURTS 7.75 7.75 7.75 7.75 ACCOUNTING 3.50 2 4.00 4.00 4.00 HUMAN RESOURCES 3.50 3.50 3.50 3.50 PURCHASING 1.00 1.00 1.00 1.00 Total Finance/HR Department 17.75 18.25 18.25 18.25 PD CODE 15.00 15.00 15.00 15.00 PD ADMINISTRATION 6.00 6.00 6.00 6.00 PD PATROL 44.00 1 45.00 45.00 45.00 PD INVESTIGATION 13.00 13.00 13.00 13.00 PD SERVICE 21.00 2 22.00 22.00 22.00 PD DETENTION 17.00 17.00 17.00 17.00 Total Police Department 116.00 118.00 118.00 118.00 FIRE MARSHAL 4.00 4.00 4.00 4.00 FD ADMINISTRATION 4.00 4.00 4.00 4.00 FD PARAMEDIC 67.00 67.00 67.00 67.00 Total Fire Department 75.00 75.00 75.00 75.00 PLANNING 3.00 1 2.50 2.50 2.50 INSPECTIONS SERVICES 4.00 4.00 4.00 4.00 Total Planning & Development 7.00 6.50 6.50 6.50 RECREATION 6.50 6.50 6.50 6.50 PARKS 11.00 11.00 11.00 11.00 SENIOR CENTER 2.00 2.00 2.00 2.00 RECREATION ADMINISTRATION 1.00 1.00 1.00 1.00 Total Community Services 20.50 20.50 20.50 20.50 STREET MAINTENANCE 10.50 10.50 10.50 A 11.50 ANIMAL CONTROL 3.00 3.00 3.00 3.00 CITY ENGINEER 0.50 3 1.00 1.00 1.00 Total Public Works 14.00 14.50 14.50 15.50 GF NON-DEPARTMENTAL 0.50 0.50 0.50 A 0.00 Total Non-departmental 0.50 0.50 0.50 0.00 TOTAL GENERAL FUND 271.25 274.25 274.25 274.75 Full-Time Personnel Counts 189 FY 16/17 FY 17/18 FY 17/18 FY 18/19 ACTUAL BUDGETED ESTIMATED BUDGETED Full-Time Personnel Counts EDC - PARKS 13.25 13.25 13.25 13.25 EDC - LIBRARY 10.00 10.00 10.00 10.00 EDC - ECO. DEV.1.00 1.00 1.00 1.00 TOTAL EDC FUND 24.25 24.25 24.25 24.25 WATER OFFICE 5.00 5.00 5.00 5.00 Total Finance 5.00 5.00 5.00 5.00 W&S ENGINEERING 2.50 3 3.00 3.00 3.00 WATER PRODUCTION 5.75 5.75 5.75 5.75 WATER DISTRIBUTION 7.25 7.25 7.25 7.25 SEWAGE & TREATMENT 7.00 7.00 7.00 7.00 METER READING 1.00 1.00 1.00 1.00 Total Public Works 23.50 24.00 24.00 24.00 INFORMATION SERVICES 4.00 4.00 4.00 4.00 W&S NON-DEPT.10.00 2 10.50 10.50 A 10.00 Total Non-departmental 14.00 14.50 14.50 14.00 TOTAL W&S FUND 42.50 43.50 43.50 43.00 GOLF NON DEPARTMENTAL 0.75 0.75 0.75 0.75 GOLF COURSE MAINT.4.00 4.00 4.00 4.00 GOLF PRO SHOP 2.50 2.50 2.50 2.50 GOLF FOOD AND BEVERAGE 3.00 3.00 3.00 3.00 GOLF CONFERENCE CENTRE 1.50 1.50 1.50 1.50 TOTAL GOLF COURSE FUND 11.75 11.75 11.75 11.75 JUVENILE CASE FUND 1.25 1.25 1.25 1.25 CRIME CONTROL FUND 19.00 19.00 19.00 19.00 PUBLIC SAFETY SPECIAL FUND 1.00 1 0.00 0.00 0.00 SERVICE CENTER FUND 5.00 5.00 5.00 5.00 DRAINAGE UTILITY FUND 7.00 2 8.00 8.00 8.00 TEXAS STAR SPORTS COMPLEX 1.50 1.50 1.50 1.50 HEALTH INSURANCE FUND 1.00 1.00 1.00 1.00 WC/RISK MANAGEMENT FUND 0.50 0.50 0.50 0.50 TOTAL OTHER FUNDS 36.25 36.25 36.25 36.25 TOTAL ALL FUNDS 386.00 390.00 390.00 390.00 1) Shifted position based on funding and job function. 2) Added 1 Accountant, 1 Dispatcher and 1 Field Technician. 3) Converted a part time position into a full time position. A) Added 1 PW Field Technician I, eliminated Director of Administrative Services. 190 PERSONNEL COUNTS BY FUND FULL-TIME EMPLOYEES FY17 ACTUAL FY18 BUDGETED FY18 ESTIMATED FY19 FUNDED 271.25 274.25 274.25 274.75 24.25 24.25 24.25 24.25 42.50 43.50 43.50 43.00 11.75 11.75 11.75 11.75 JUVENILE CASE FUND 1.25 1.25 1.25 1.25 19.00 19.00 19.00 19.00 PUBLIC SAFETY SPECIAL FUND 1.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00 7.00 8.00 8.00 8.00 1.50 1.50 1.50 1.50 1.00 1.00 1.00 1.00 0.50 0.50 0.50 0.50 TOTAL 386.00 390.00 390.00 390.00 PART-TIME EMPLOYEES 49.00 49.00 49.00 49.00 17.00 17.00 17.00 17.00 2.00 2.00 2.00 2.00 57.00 57.00 57.00 57.00 3.00 3.00 3.00 3.00 26.00 26.00 26.00 26.00 TOTAL 154.00 154.00 154.00 154.00 HEALTH INSURANCE FUND TEXAS STAR SPORTS COMPLEX CRIME CONTROL DISTRICT DRAINAGE UTILITY GENERAL FUND WATER & WW FUND GOLF COURSE FUND EDC FUND SERVICE CENTER FUND TEXAS STAR SPORTS COMPLEX SPECIAL RECREATION FUND WATER & WW FUND GOLF COURSE FUND WC/RISK MANAGEMENT FUND GENERAL FUND EDC FUND 191 Appendix B Financial Terminology 192                       193 BASIS OF ACCOUNTING AND BUDGETING 1) The City’s finances shall be accounted for in accordance with generally accepted accounting principles as established by the Governmental Accounting Standards Board (“GASB”). a) City accounts are organized and operated on the basis of funds, or account groups, each of which is considered a separate accounting entity. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds maintained is consistent with legal and managerial requirements. Funds are divided into two types: governmental and proprietary fund types. Governmental funds are those through which most governmental functions of the City are financed. Proprietary funds operate in a manner similar to private business enterprise. b) Governmental fund types are those through which most governmental functions of the City are financed and include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e. when both “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Substantially all revenues are considered to be susceptible to accrual. Revenues from ad valorem taxes, sales taxes, hotel occupancy taxes, franchise taxes, and short-term motor vehicle taxes, recorded in the governmental funds are susceptible to accrual. License and permits, charges for service, fines and forfeitures, and miscellaneous revenues are recorded as revenues when received because generally they are not measurable until that time. Investment earnings are recorded as earned since they are both measurable and available. Expenditures are recognized when the related fund liability is incurred. However, debt service expenditures as well as expenditures related to compensated absences are recorded only when payment is due. c) The City utilizes encumbrance accounting for governmental fund types, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriations. Encumbrances lapse at fiscal year end. d) Proprietary funds operate in a manner similar to private business and include enterprise funds and internal service funds. The City’s proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Under the full accrual method, revenues are recorded when earned and expenses are recorded at the time the associated liabilities occur. Net position is presented as Invested in capital assets – net of related debt, Restricted, and Unrestricted. The accounting objectives are determinations of net income, financial position, and cash flow. Proprietary fund operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net position. 2) The City’s annual budgets shall be prepared and adopted on a basis consistent with generally accepted accounting principles for all governmental and proprietary funds except the capital project funds, which adopt project-length budgets. Using these principles, the revenues and expenditures are budgeted and approved before the beginning of the fiscal year by an ordinance passed by the City Council. Depreciation of capital assets is not recognized in proprietary fund budgets. All annual appropriations lapse at fiscal year end. 3) Under GASB 34, the City will continue utilizing the accounting and budgeting processes as described in paragraphs 1 and 2 of this section for individual fund statements. However, because GASB 34 mandates the flow of economic resources measurement focus and accrual basis of accounting for government-wide reporting, eliminating entries and extensive reconciliation must be performed to present aggregated fund information in the government–wide reporting model. Therefore, individual operating funds will be created with the objective of reducing fund level to government-wide reconciliation as much as possible. When appropriate, individual funds will be examined to determine if it will be appropriate to account for them as proprietary fund types. Also, the City will limit the use of internal service funds and incorporate the financial transactions of these funds into other governmental funds. 194 FUND RELATIONSHIPS Why all these funds? Where is the money being spent? All legitimate questions. Picture a city as a large corporation with many small subsidiaries – that is how to follow the funds. See below for a more detailed explanation. FUND/PURPOSE RELATIONSHIP TO OTHER FUNDS GENERAL FUND To account for most operating revenues and expenditures of the City, not specifically required to be reported separately. Provides funding for general City operations or traditional City services. Supports all other fund groups. WATER & WASTEWATER FUND To account for water and sewer system services. Rates are applied to actual usage. Uses no tax dollars for support. Rates are based on consumption. Billing services provided for other funds. CAPITAL PROJECTS FUNDS To account for financial resources to be used for the acquisition or construction of major facilities or assets. Receives funding from the General Fund, Water & Sewer Fund, Car Rental Fund, and from the proceeds of the sale of debt instruments for capital improvements. DEBT SERVICE FUNDS To account for the accumulation of resources for, and the payment of, general obligation, certificates of obligation, water and sewer, or drainage long-term debt principal and interest. Funds borrowed for general operations. NOTE: Both Water and Sewer, as well as Drainage Enterprise Funds, pay for their own debt and are not G.O. debt. RISK MANAGEMENT / WORKERS COMP FUND To account for liability and casualty claims as well as workers’ compensation programs. Receives funding from all operating departments, on a per employee basis for compensation and pro rata for liability. HOTEL/MOTEL FUND To account for the operations and expenditures for tourism and related programs of the City, primarily advertising and promotion. Funded from hotel/motel occupancy tax revenues. SERVICE CENTER FUND To account for operating costs and revenues of the fleet maintenance service to all City Departments. Receives funds from water and sewer fund. POLICE DRUG FUND To account for revenues and expenditures of the Police Department activities in conjunction with various DEA Task Forces. Receives funding through the forfeiture of assets seized from drug traffickers through efforts of the two DEA Task Forces. Revenue is then utilized for law enforcement in our community. INSURANCE & BENEFITS FUND To account for the revenues and expenditures for the City’s health insurance claims for all employees and retirees. Receives employee premiums and funding from all operating departments, on a per employee basis. EQUIPMENT REPLACEMENT FUND To account for the accumulation of funds planned to be used for replacement of vehicles and some equipment. Allows for level of expenditures for these costly assets. Funding is provided annually by user departments based on a calculation of depreciable value. Sale of auction equipment is reported here. RECREATION CLASSES FUND To account for operating revenues and expenditures of the City’s recreational program and events. Funded from various athletic and special events, recreation class fees, etc. ARBOR DAZE FUND To account for revenues and expenditures of the City’s annual Arbor Daze festival. Funded from business sponsorships, booth rental, ticket sales, souvenir sales, plant sales, etc.             195 FUND/PURPOSE RELATIONSHIP TO OTHER FUNDS DRAINAGE UTILITY FUND To account for acquisition, operation, and maintenance of the City’s drainage utility system. Uses no tax dollars for support. Funded primarily by user charges. TEXAS STAR GOLF COURSE FUND To account for revenues for the Texas Star Golf Course and Conference Centre. Revenues generated from green fees, cart rentals, membership dues, pro shop sales, restaurant sales, and conference centre rentals. EULESS DEVELOPMENT CORPORATION ½ CENT SALES TAX FUND (EDC) To account for proceeds of half cent sales tax for economic development, library and parks, per referendum. Funds mandated for economic development, library and parks by half-cent sales tax proceeds. CRIME CONTROL & PREVENTION DISTRICT ¼ CENT SALES TAX FUND (CCPD) To account for ¼ cent sales tax for the revenues and expenditures for CCPD. Receives funding from sales tax collections for CCPD. TEXAS STAR SPORTS COMPLEX FUND (TSSC) To account for revenues for Youth and Adult Sports activity at Softball World and the Parks at Texas Star. Revenues generated from tournaments, recreational league fees, pro shop sales, concessions, and use of facilities. CAR RENTAL TAX FUND To account for proceeds from a 5% tax on the short-term rental of motor vehicles . Revenues received from car rental facilities for the short-term rental of passenger cars, vans, SUV’s and light trucks. Funds used for any governmental purpose. CABLE PEG FEE FUND To account for proceeds from a 1% fee collected from cable channel providers. Revenues received from cable providers for the expansion of the City’s public, education, and governmental access channel. POLICE SEIZED ASSET FUND To account for resources received from asset forfeiture pursuant to court judgement File No. 09-13-640. Revenues received from forfeitures are to be administered in compliance with Chapter 59, Texas Code of Criminal Procedure. JUVENILE CASE FUND To account for resources received from a $5 fee assessed on any conviction in municipal court. Revenues received from forfeitures are used to employ and fund the needs of a juvenile case manager. GRANT FUND To account for resources awarded from various grant funding sources. Revenues received must be used in accordance with the grant provisions. PUBLIC IMPROVEMENT DISTRICT (PID) FUNDS To account for the accumulation of resources from an assessment levied upon properties within district boundaries. Revenues received are utilized for the repayment of debt issued to fund public improvements within the district. TAX INCREMENTAL REINVESTMENT ZONE (TIRZ) FUNDS To account for the accumulation of a portion of the incremental property taxes from taxing entities participating in the tax increamental reinvestment zone. Revenues received are utilized for the repayment of debt issued to fund public improvements within the district. RESERVE FUNDS To account for the accumulation of resources for future projects or acquisitions, financial stabity, or contractual agreements. Funds are for the allowable purposes.              196 Fund StructureGeneralFundHotel/MotelJuvenile CaseEDC ½¢CCPD ¼¢Car RentalPolice DrugGrantPolice Seized AssetsGlade Park PIDGlade Park TIRZCable PEG FeeMidtown PIDSpecialRevenueFundsG.O.Stars CenterEDC ½¢W & WWTSGCTSSCDebtServiceFundsDeveloper's EscrowStreetsEDC ½¢GeneralRedevelopmentPolice FacilityCar RentalTSGCTSSCW & WWW Impact FeesWW Impact FeesDrainageCapitalImprovementProgramsGeneralEDC ½¢Midtown Bond ReserveW & WWW & WWStabilizationTSGCTSSCReserveGovernmentalFundsW & WWService CenterDrainageRecreation ClassesArbor DazeTSGCTSSCEnterpriseFundsInsurance & BenefitsRisk Mgmt. & Workers Comp.Equipment ReplacementInternalServiceFundsProprietaryFundsOperating &Capital FundsW = WaterWW = WastewaterTSGC = Texas Star Golf CourseTSSC = Texas Star Sports ComplexEDC = Economic Development CorporationCCPD = Crime Control and Prevention DistrictPID = Public Improvement DistrictTIRZ = Tax Increment Reinvestment Zone197 GLOSSARY OF TERMS Accounts Payable: A liability account reflecting amount of open accounts owed to private persons or organizations for goods and services received by a government (but not including amounts due to other funds of the same government or to other governments). Accounts Receivable: An asset account reflecting amounts owed to open accounts from private persons or organizations for goods or services furnished by the government. Accrual Accounting: Recognition of the financial effects of transactions, events, and circumstances in the period(s) when they occur regardless of when the cash is received or paid. Activity: A service performed by a department or division. Ad Valorem Tax: All property, real, personal, mixed tangible, intangible, annexations, additions, and improvements to property located within the taxing units jurisdiction which are subject to taxation on January 1 of the current fiscal year. Each year, following the adoption of the budget ordinance, the City Council sets the ad valorem tax rate and the levy for the fiscal year beginning October 1 and continuing through the following September 30. Additional Sales Tax: Euless citizens approved a ¼¢ sales tax addition in FY96 to reduce ad valorem tax rates within the City. Amortization: Payment of principal plus interest over a fixed period of time. Appraised Value: The market value of real and personal property located in the City as of January 1 each year, as determined by the Tarrant Appraisal District. Appropriation: An authorization made by the legislative body of a government, which permits officials to incur obligations against and to make expenditures of governmental resources. Specific appropriations are usually made at the fund level and are granted for a one-year period. Appropriation Ordinance: The official enactment by the legislative body establishing the legal authority for officials to obligate and expend resources. Assessed Valuation: A valuation set upon real estate or other property by a government as a basis for levying taxes. Assets: Resources owned or held by the City which has monetary value. Arbitrage: The interest earnings derived from invested bond proceeds or debt service fund balances. Balance Sheet: The basic financial statement, which discloses the assets, liability, and equities of an entity at a specific date in conformity with General Accepted Accounting Principles. Balanced Budget: Annual financial plan in which the operating budget is balanced with current revenues, exclusive of beginning resources, and is greater than or equal to current expenditures / expenses. Baseline: The amount necessary to provide the same level of services as in the prior year. Bond: A written promise to pay a specified sum of money, called the face sum of money, called the principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Budget: The City's financial plan for a specific fiscal year that contains an estimate of proposed expenditures and the proposed means of financing them. Budget Calendar: Schedule of key dates which the City follows in the preparation and adoption of the budget. Budget Document: Instrument used by the budget-making authority to present a comprehensive financial plan of operations to the City Council. Budgetary Control: The control or management of the organization in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues. Budget Manager: The individual in a specific department who is responsible for compiling budget information, assembling it in the proper format, presenting the information, and administering the department budget during the fiscal year. 198 Capital: Any major non-recurring expenditure or expenditure for facilities, including additions or major alterations, construction of highways or utility lines, fixed equipment, landscaping or similar expenditures. Capital Improvements Program (CIP): Is an important planning tool that is used to link the City’s physical development planning with fiscal planning. CART: Acronym for Child Abduction Response Team which provides an immediate and specialized response to a missing child report where the child is believed to be endangered. Cash Basis: A basis of accounting under which transactions are recognized when cash changes hands. CCPD: Acronym for the Crime Control and Prevention District, which is special district funded by a ¼¢ sales and use tax which is legally restricted to police department operations as approved by the Crime Control and Prevention Board. CDBG: Acronym for the Community Development Block Grant, federal funds made available to municipalities specifically for community revitalization. Administered by Tarrant County. Certificates of Obligations (CO’s): Similar to general obligation bonds except certificates require no voter approval. City Charter: The document of a home rule City similar to a constitution, which establishes the City’s government structure and provides for the distribution of powers and duties among the various branches of government. City Council: The Mayor and six council members collectively acting as the legislative and policymaking body of the City. Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services: The costs related to services performed for the City by individuals, businesses, or utilities. Cost: The amount of money or other consideration exchanged for property or services. Cost may be incurred before money is paid; that is, as soon as liability is incurred. CPR: Acronym for Community Powered Revitalization Program with the mission of helping people and homes in need. Current Assets: Those assets which are available or can be made readily available to finance current operations or to pay current liabilities. Those assets which will be used up or converted into cash within one year. Some examples are cash, temporary investments, and accounts receivable collected within one year. Current Liabilities: Debt or other legal obligation arising out of transactions in the past which must be liquidated, renewed, or refunded within one year. DEA: Acronym for the Drug Enforcement Administration, a United States federal law enforcement agency under the Department of Justice, tasked with combating drug smuggling and use within the United States. Debt Service Fund: A fund used to account for the moneys set aside for the payment of interest and principal to holders of the City's general obligation and revenue bonds, the sale of which finances long-term capital improvements, such as facilities, streets and drainage, parks and water/wastewater systems. Delinquent taxes: Taxes remaining unpaid on or after the date on which a penalty or nonpayment is attached. Department: A functional unit of the City containing one or more divisions or activities. Depreciation: Change in the value of assets (equipment, buildings, etc. with a useful life of 5 years or more) due to the use of the asset. D/FW: Acronym for the Dallas and Fort Worth. EDC: Acronym for the Euless Development Corporation, a component unit of the City. This Corporation is funded by a ½¢ sales and use tax that is legally restricted to library, parks, and 199 economic development projects, and the debt associated with each. Effective Tax Rate: A rate which generates the same amount of revenues from property which is taxed in both years. Encumbrances: Obligations in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. When paid, the encumbrance is liquidated. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Excess Fund Balance: The excess of a fund’s current assets over its current liabilities and required reserve limits. Exempt: Personnel not eligible to receive overtime pay and who are expected to work whatever hours are necessary to complete their job assignments. Expenditures: The cost of goods received or services rendered whether cash payments have been made or encumbered. Fiscal Year: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the result of its operations. The City of Euless’ fiscal year begins each October 1st and ends the following September 30th. Fixed Assets: Assets of a long-term character, which are intended to continue to be held or used, such as land, buildings, and improvements other than buildings, machinery, and equipment. Franchise: A special privilege granted by the government permitting the continuing use of public property, such as City streets, and usually involving the elements of monopoly and regulation. FTE: Acronym for full time equivalent, a measurement of staffing. One FTE is a 40 hours per week employee. A part-time position working 20 hours per week, or a temporary full-time position working six months would be ½ FTE. Fund: A fiscal and accounting entity with a self- balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund Accounting: A governmental accounting system that is organized and operated on a fund basis. Fund Balance: The excess of a fund's current assets over its current liabilities, sometimes called working capital or fund equity. A negative fund balance is often referred to as a deficit. GAAP: Acronym for Generally Accepted Accounting Principles, which is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. GASB: Acronym for Government Accounting Standards Board, an independent, non-profit agency responsible for the promulgation of accounting and financial reporting procedures for governmental entities. GC ISD: Acronym for the Grapevine Colleyville Independent School District, the local independent school district, with board members elected to provide administration for schools in the cities of Grapevine, Colleyville, and Euless. The school district has a separate tax office which assesses and collects taxes for operation of the elementary and secondary schools. Note: Some Euless residents in the southern part of Euless attend school in the HEB ISD. General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund. The General Fund is generally tax supported. General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing government are pledged. The bonds are paid by revenue provided from real property 200 which is assessed through the taxation power of the local governmental unit. Bonds must have voter approval. GFOA: Acronym for Government Finance Officers Association whose mission is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership. Governmental Funds: The funds through which most governmental functions typically are financed. The acquisition, use, and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects, and Debt Service Funds). Grant-Funded Program: Any program requiring any amount of State and/or Federal funds. Goal: The purpose toward which an endeavor is directed; and objective. H-E-B ISD: Acronym for the Hurst-Euless- Bedford Independent School District, a local independent school district, with board members elected to provide administration for schools in the cities of Hurst, Euless and Bedford. Homestead Exemption: A deduction from the total taxable assessed value of owner occupied property. The exemption in Euless is 20% with an additional $35,000 for disabled and senior citizens. Infrastructure: The underlying permanent foundation or basic framework. Internal Service Fund: A fund used to account for the financing of goods or services provided by one City department or cost center to other departments, on a cost-reimbursement basis. Investments: Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. The term does not include fixed assets used in governmental operations. ISO: Acronym for Insurance Service Organization. ISO is a New York-based advisory organization that serves the property and casualty insurance industry by providing inspection services, insurance coverage form development and statistical services. IVR: Acronym for Interactive Voice Response which allows customers to interact with a company’s call center systems via a telephone keypad or by speech recognition, after which they can service their own inquiries by following the IVR dialogue. Levy: To impose taxes, special assessments, or service charges for the support of city services. Maintenance: The upkeep of physical properties in condition for use or occupancy. Examples are the inspection of equipment to detect defects and the making of repairs. Mission: An inner calling to pursue an activity or perform a service. Modified Accrual Accounting: Accounting system in which revenues are recognized and recorded in the accounts when they are measurable, available, and collectible in the fiscal year. Non-departmental: Department to budget expenses that benefit the fund as a whole rather than a particular department within the fund. Non-exempt: Personnel eligible to receive overtime pay when overtime work has been authorized or requested by the supervisor. Objective: Something worked toward or striven for; a goal. Operating Budget: Plan for current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of the City are controlled. The use of annual operating budgets is required by State law. Operating Expenditure: Expenditure on an existing item of property or equipment that is not a capital expenditure. Ordinance: A formal legislative enactment by the governing body of the municipality. If it is not in conflict with any higher form of law, such as state statute or constitutional provision, it has the 201 full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has lower legal status. Revenue raising measures such as the imposition of taxes, special assessments and service charges, usually require ordinances. P-Cards: Acronym for procurement card. A City- issued credit card which allows employees to make small purchases in a cost effective manner. Performance Measures: Specific quantitative measures of work performed within an activity or program. They may also measure results obtained through an activity or program. Personal Services: The costs associated with compensating employees for their labor. Proprietary Funds: Operation that operates like a private operation, in which services are financed through user charges and expenditures include the full cost of operations. Public Hearing: The portions of open meetings held to present evidence and provide information on both sides of an issue. PID: Acronym for Public Improvement District which offer cities and counties a means for improving their infrastructure to promote economic growth in an area by allowing cities and counties to levy and collect special assessments on properties that are within the city or its extraterritorial jurisdiction. Purchase Order (PO): A document authorizing the delivery of specified merchandise or the rendering of certain services. PVC: Acronym for polyvinyl chloride, a plastic compound used for water and sewer pipes. Reimbursement: Repayment to a specific fund for expenditures incurred or services performed by that fund to or for the benefit of another fund. Reserve: An account used to indicate that a portion of fund resources is restricted for a specific purpose, or is not available for appropriation and subsequent spending. Revenues: All amounts of money received by a government from external sources other than expense refunds, capital contributions, and residual equity transfers. ROW: Acronym for right-of-way. Sales Tax: A general “sales tax” is levied on persons and businesses selling merchandise or services in the City limits on a retail basis. The categories for taxation are defined by state law. Monies collected under authorization of this tax are for the use and benefit of the City. Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. STEP: Acronym for Selective Traffic Enforcement Program whose goal is to reduce the number of crashes caused by excessive speed, disregard of traffic control devices, and alcohol. Supplemental Request: A request to budget an activity at a level above current service levels in order to achieve increased or additional objectives. These expenditures are ongoing in nature. Supplies: A cost category for minor items (individually priced at less than $5,000) required by departments to conduct their operations. TAD: Acronym for Tarrant Appraisal District who is responsible for local property tax appraisal and exemption administration for seventy jurisdictions or taxing units in the county. Tax Rate: A percentage applied to all taxable property to raise general revenues. It is derived by dividing the total tax levy by the taxable net property valuation. Tax Roll: The official list showing the amount of taxes levied against each taxpayer or property in the City. The list is provided to the City by Tarrant Appraisal District. Taxable Value: Estimated value of taxable property to which the ad valorem tax rate is applied. 202 Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. TCEQ: Acronym for Texas Commission on Environmental Quality, a state agency which enforces federal and state environmental laws. TIRZ: Acronym for Tax Increment Reinvestment Zone which is a special zone created by City Council to attract new investment to an area. This zone helps finance the cost of redevelopment and encourage development in an area that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set-aside in a fund to finance public improvements within the boundaries of the zone. TMRS: Acronym for the Texas Municipal Retirement System, a pension plan for employees of member cities within the State of Texas. TRA: Acronym for the Trinity River Authority of Texas which is a conservation and reclamation district providing water and wastewater treatment, along with recreation and reservoir facilities, for municipalities within the nearly 18,000-square-mile Trinity River basin. TSGC: Acronym for the Texas Star Golf Course which is used to account for the revenues and expenditures of a 275 acre 18-hole golf course, 7,000 square foot conference center, and full service restaurant. TSSC: Acronym for the Texas Star Sports Complex which is used to account for the revenues and expenditures of both Softball World and the Parks at Texas Star enterprise operations. TXDOT: Acronym for the Texas Department of Transportation, a state government agency responsible for administering capital grants for street repairs within the City of Euless. User Charges: The payment of a fee for direct receipt of a public service by the party benefiting from the service. Working Capital: Budgeted working capital is calculated as a fund’s current assets less current liabilities and outstanding encumbrances. The term is used to indicate unencumbered fund balances in enterprise funds such as utility, golf course, Softball World and the Parks at Texas Star. 203 Appendix C Ordinances 204 205 206 207 208 209 210 211 212 213 214 215 Appendix D Multi-Year Financial Plan 216 INTRODUCTION The City of Euless Multi-Year Plan is presented for review. Major funds will show the estimated beginning fund balances, estimated revenues and expenses, and ending fund balances. Staffing levels, estimated tax rates, and estimated water and wastewater rates are also presented. This plan includes operations and capital items that are recommended for FY2018-19 and the impact of recommended major capital projects through FY2022-23. Due to the volume of information included in the General Fund and the W ater and W astewater Fund, separate executive summaries have been provided that highlight significant assumptions. Supplemental and capital requests for all major funds were submitted by departmental directors. Only a limited number of requests have been included in the plan as recommended and funded. The remaining items are shown for planning purposes and funding has not yet been identified. Capital items recommended and funded have been included in the Proposed Capital section of each fund’s presentation. Recommended reserve levels and designated reserves are reflected as required by the City’s fiscal policies. General Fund Revenue increases are projected at conservative growth levels. Most revenue items are projected at 2% to 3% growth factors. Sales tax is also projected to grow approximately 2% annually based on new retail development. Departmental expenditures include an increase of less than 1% with annual increases for salary plan adjustments, health insurance increases, and changes in depreciation. Funding has also been included in future years for needed staffing including three police officers, partially offset with grant funding, and three fire fighters. Recommended capital funding is primarily limited to public safety equipment. General Obligation Debt Service The debt component of the tax rate includes debt service requirements for all general debt currently outstanding and projected in the next five years. Under the multi-year capital plan, debt issuance is proposed for street reconstructions in FY2018-19. The principal and interest requirements associated with the proposed bonds have been included in the multi-year plan. Infrastructure and street projects are detailed in the Capital Improvement Project (CIP) book. 217 Half Cent Sales Tax Fund The Half Cent Sales Tax operating budget includes salary plan adjustments, health insurance increases, and transfers to CIP for proposed capital which is detailed in the CIP book. Funding has been included for library relocation, miscellaneous park improvements, Kiddie Carr Park improvements, Wilshire Park upgrades, Blessing Branch Park improvements, and Carr Park Trail Connection. Additionally, funds are included to support Texas Star Sports Complex operations during the proposed remodel. Half Cent Sales Tax Debt Fund The Half Cent Sales Tax Debt Fund includes debt service requirements for all sales tax revenue debt currently outstanding. Current debt obligations will be retired in FY2018- 19 and a proposed issuance of $1,680,320 is included to fund Carr Park Improvements. FY2019-20 includes an issuance of $3,420,200 for construction of Texas Star Sports Complex Phase VII. Crime Control and Prevention District The Crime Control and Prevention District fund includes salary plan adjustments, health insurance increases, and continuation of existing programs. Car Rental Tax Fund Car Rental Tax revenue projected increases for future years are attributed to inflationary increases on the rates charged by car rental companies. Two-thirds of the total revenue is shared with Dallas and Fort Worth. Expenditures for this fund include transfers to support General Fund operations which are budgeted at 1/3 of Euless’ portion of the revenue. Transfers to the Equipment Replacement Fund have been included to offset a portion of the replacement cost of large equipment purchases. In addition, funds will be used to cash flow several capital requests including traffic signals, improvements to Kiddie Carr Park, and Wilshire Park. The accumulation of fund balance is expected to be used to cash flow future capital projects. This proposed plan maintains the recommended minimum reserve in the short-term motor vehicle fund of $2,000,000. Water and Wastewater Fund Revenues in this enterprise operation are based on projected rates sufficient to cover operations in each of the future years. Rates are based on projected cost increases from Trinity River Authority, as well as increases for the City’s operations, including salary plan adjustments, health insurance increases, and changes in depreciation 218 expense. Future projected rate increases for both water and wastewater are shown. W ater rate increases have been spread equally across each tier. Reclaimed water rates are based on expected increases in raw water costs and increased operating costs. The operating budget includes funding for current and proposed water and wastewater revenue bonds and funding to continue the annual water and wastewater infrastructure improvements. The water and wastewater capital improvements plan includes the FY2018-19 recommended capital projects as well as the replacement of two city water wells and other water and wastewater line replacements as detailed in the CIP plan. Water and Wastewater Debt Service Fund Debt service transfers are based on current debt outstanding and proposed debt for the replacement of the water wells. Debt service payments for the existing water tank debt and Phase I of the reclaimed water system expansion are paid from impact fees as identified in the Impact Fee CIP plan and a portion of the water well debt and required reserves will be paid from the Rate Stabilization Fund in FY2018-19. All other water and wastewater debt is paid from system revenues. Drainage Fund The Drainage Utility Fund provides for salary plan adjustments, health insurance increases, and changes in depreciation charges. Service Center Fund The Service Center Fund provides for salary plan adjustments, health insurance increases, and changes in depreciation charges. Transfers from the W ater and W astewater Fund have increased accordingly. Texas Star Golf Course Fund The Golf Course Fund includes modest increases in revenues from fee increases and those revenues that are directly attributable to the number of rounds projected such as increases in green fees, food and beverage sales, and conference centre bookings. Expenses are projected to increase in all divisions as a result of increased rounds, salary plan adjustments, health insurance increases, and depreciation charges. An increase in cost of goods is anticipated as a result of the estimated additional sales volume. Debt service payments are based on repayment schedules and include annual transfers from the Golf Course Reserve Fund. 219 Texas Star Sports Complex Fund Revenues and expenses are projected to decrease in FY2019-20 due to planned improvements. Texas Star Sports Complex Phase VII will include renovation of the existing Softball World to incorporate multi-purpose fields with an emphasis on youth sports. The facility is anticipated to reopen in FY2020-21 and increases are included for pay plan adjustments, health insurance costs, and operating costs. The five year plan continues to show this fund to be self-supporting, with a modest net income each year. Equipment Replacement Fund The Equipment Replacement Fund includes equipment purchases based on the projected replacement schedule, which is re-evaluated each year. Following the year of purchase, equipment and vehicle purchases are added to the depreciation charge in order to ensure that proper funds will be available for the next scheduled replacement. CLOSING COMMENTS This document is a plan for the future. Many things will certainly change and this document will need to be adjusted accordingly. Future capital projects and the timing of debt issuance can significantly impact the interest and sinking portion of the tax rate. The recommended Multi-Year Plan strives for a level tax rate and continues existing service levels. The Water and Wastewater plan indicates that the City will be facing significant challenges from increased water and wastewater costs which will likely have a significant impact on future rates. While it is understood that this plan is certain to change, it is intended to help guide future decisions. 220 General Fund Executive Summary Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 TAX RATE VARIABLE Tax Rate $0.4625 $0.4625 $0.4625 $0.4625 $0.4625 Tax Rate Change $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 Assessed Value/$100 39,536,911$ 41,513,756$ 41,928,894$ 42,767,472$ 43,622,821$ Amount generated by 1¢ 385,485$ 404,759$ 408,807$ 416,983$ 425,323$ Transfer from Car Rental 1,640,085$ 1,656,486$ 1,673,051$ 1,689,781$ 1,706,679$ Tax Rate Equivalent - Car Rental Transfer 0.042546 0.040925 0.040925 0.040524 0.040127 EXPENDITURES Departmental Expenditures 42,104,564$ 42,305,642$ 43,476,152$ 44,792,311$ 45,903,445$ Insurance Increase -$ 301,119$ 177,285$ 211,491$ 222,354$ Salary Package -$ 602,059$ 614,100$ 626,382$ 638,910$ Capital Expenses 2,494,858$ -$ -$ -$ -$ Total Expenditures 44,599,422$ 43,208,820$ 44,267,537$ 45,630,184$ 46,764,708$ Proposed Supplemental (65,081)$ (321,018)$ (66,708)$ (68,375)$ Proposed Capital (202,500)$ (133,600)$ (143,750)$ (168,000)$ STAFFING VARIABLE Full-time Positions 274.75 275.75 278.75 279.75 280.75 Part-time Positions 49.00 49.00 49.00 49.00 49.00 221 General Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 9,993,741 7,532,996 7,345,190 7,448,710 7,686,190 REVENUES Ad valorem taxes 14,328,858 14,674,299 15,576,844 16,182,528 16,557,010 Ad valorem taxes(1)826,747 835,014 843,365 851,798 860,316 Delinquent taxes 30,000 30,000 30,000 30,000 30,000 Penalties 65,000 66,950 68,959 71,027 73,158 Sales taxes 13,193,953 13,457,832 13,776,989 14,052,528 14,333,579 Mixed Beverage 171,075 176,207 181,493 186,938 192,546 Franchise taxes 4,549,168 4,782,240 4,863,570 4,943,162 5,004,971 Fines and fees 4,104,080 4,227,202 4,354,018 4,484,639 4,619,178 Licenses and permits 675,015 663,515 626,786 604,321 604,321 Interest Income 170,000 171,700 173,417 175,151 176,903 Grants 420,000 468,400 477,768 527,323 577,870 Tower Lease 505,570 520,737 536,359 552,450 569,023 Transfers from Car Rental 1,640,085 1,656,486 1,673,051 1,689,781 1,706,679 General & Administrative Charges 1,338,952 1,434,234 1,515,564 1,595,156 1,656,965 Miscellaneous 120,174 123,779 127,493 131,317 135,257 Total Revenues 42,138,677 43,288,596 44,825,675 46,078,122 47,097,778 EXPENDITURES Administration (4,117,959) (4,138,549) (4,159,242) (4,180,038) (4,200,938) Finance (1,635,057) (1,643,232) (1,651,448) (1,659,706) (1,668,004) Police Protection (14,473,184) (14,545,550) (14,683,359) (14,756,775) (14,897,267) Fire Protection (10,522,543) (10,575,156) (10,628,031) (11,002,190) (11,057,201) Planning & Development (717,203) (720,789) (724,393) (728,015) (731,655) Community Services (2,669,351) (2,682,698) (2,696,111) (2,709,592) (2,723,140) Public Works (2,741,575) (2,755,283) (2,769,059) (2,782,905) (2,796,819) Non-Departmental - Operating (5,227,692) (6,147,564) (6,955,893) (7,810,965) (8,689,685) Operating Expenditures (42,104,564) (43,208,820) (44,267,537) (45,630,184) (46,764,708) Capital Expenses (carryover)(2,494,858) - - - - Total Expenditures (44,599,422) (43,208,820) (44,267,537) (45,630,184) (46,764,708) Designated Reserves (66,567) (60,000) (50,000) (40,000) - Recommended Reserves per Policy (6,921,298) (7,113,518) (7,329,625) (7,511,818) (7,698,589) Available for Supplemental 34,113 79,775 558,138 447,938 333,069 Proposed Supplemental (65,081) (321,018) (66,708) (68,375) Remaining Supplemental 34,113 14,694 237,120 381,230 264,694 Additional Available for Capital 511,018 359,478 (34,435) (103,108) (12,399) Total Available for Capital 545,131 374,172 202,685 278,122 252,295 Proposed Capital(2)(202,500) (133,600) (143,750) (168,000) Remaining Funds Available 545,131 171,672 69,085 134,372 84,295 ENDING FUND BALANCE 7,532,996 7,345,190 7,448,710 7,686,190 7,782,884 Tax Rate Variable Assessed Taxable Value/$100 39,536,911 41,513,756 41,928,894 42,767,472 43,622,821 Amount generated by 1¢ tax 385,485 404,759 408,807 416,983 425,323 I&S Rate 0.090790 0.087815 0.064759 0.042598 0.041688 General Fund 0.371710 0.374685 0.397741 0.419902 0.420812 Total Tax Rate 0.462500 0.462500 0.462500 0.462500 0.462500 Rollback I&S 0.090790 0.087815 0.064759 0.042598 0.041688 Rollback M&O 0.372692 0.386144 0.404267 0.425003 0.448468 Total Rollback Rate 0.463482 0.473959 0.469026 0.467600 0.490157 14,514,064 15,789,839 16,696,197 17,903,656 19,269,999 Tax Rate Equiv. - Motor Vehicle Tax 0.042546 0.040925 0.040925 0.040524 0.040127 Staffing Variable Full-time positions 274.75 275.75 278.75 279.75 280.75 Part-time positions 49.00 49.00 49.00 49.00 49.00 (1) Frozen Property Tax Collections (2) Proposed Capital will only be funded if excess reserves are available. Note: Non-departmental operating includes salary plan, Increase in city's insurance contribution & increase in equipment depreciation. M&O Rollback Amount Prior to Ceiling and TIF Adjustments. 222 General Fund Five Year Plan Revenue Assumptions Revenue Source Assumptions Property Taxes Projections are based on expected new development in the City with conservative increase in values each year from 2020 to 2023. This is very conservative considering the recent significant increases in values for our area. Prior Year Property Taxes Projected to remain flat. Penalties & Interest Projected average growth of 3%. Sales Tax Based on 2% increase for new development. Mixed Beverage Tax Projected average growth of 3% for new development. Franchise Fees Projected average growth of 3%. Fines & Fees Projected average growth of 3%. Licenses & Permits Projected relatively flat with some decline due to projected build out. Interest Income Projected slight increase due to increasing interest rates. Grants Projected average growth of 2%. Tower Lease Projected average growth of 3% based on current contracts. Transfers Based on administrative fees from the utility operations and 1/3 of Euless’ portion of car rental tax. Miscellaneous Projected average growth of 3%, less rental income. 223 General Obligation Debt Service Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 1,468,300 1,395,993 1,506,793 1,618,401 1,730,825 REVENUES Ad valorem taxes 3,589,556 3,645,520 2,715,283 1,821,788 1,818,567 Delinquent taxes 15,000 15,000 15,000 15,000 15,000 Penalties 15,000 15,000 15,000 15,000 15,000 Interest Income 80,000 80,800 81,608 82,424 83,248 Transfer from PID/TIRZ 2,245,457 2,219,633 2,213,314 2,210,721 2,216,105 Total Revenues 5,945,013 5,975,953 5,040,205 4,144,933 4,147,920 EXPENDITURES Principal (4,183,848) (3,860,000) (3,230,000) (2,455,000) (2,550,000) Interest (1,528,182) (1,999,263) (1,692,707) (1,571,619) (1,478,782) Bank Charges (5,290) (5,890) (5,890) (5,890) (5,890) Issuance Costs (300,000) - - - - Total Expenditures (6,017,320) (5,865,153) (4,928,597) (4,032,509) (4,034,672) Recommended Reserves per Policy (636,903) (703,511) (705,979) (711,499) (791,198) ENDING FUND BALANCE 1,395,993 1,506,793 1,618,401 1,730,825 1,844,073 Tax Rate Variable Assessed Taxable Value/$100 39,536,911 41,513,756 41,928,894 42,767,472 43,622,821 Amount generated by 1¢ tax 395,369 415,138 419,289 427,675 436,228 I&S Rate 0.090790 0.087815 0.064759 0.042598 0.041688 General Fund 0.371710 0.374685 0.397741 0.419902 0.420812 Total Tax Rate 0.462500 0.462500 0.462500 0.462500 0.462500 Debt Issuance Variable: Beginning debt outstanding*43,713,848 51,953,813 48,093,813 44,863,813 42,408,813 Principal Retired (4,183,848)(3,860,000)(3,230,000)(2,455,000)(2,550,000) Principal Issued (Proposed)12,423,813 - - - - Ending debt outstanding 51,953,813 48,093,813 44,863,813 42,408,813 39,858,813 * Excludes self supporting taxable GO Refunding Bonds (Dallas Stars Center) 224 EDC Half Cent Sales Tax Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 1,756,239 764,759 1,118,162 1,466,123 1,841,812 REVENUES Sales taxes 5,413,479 5,521,749 5,632,184 5,744,827 5,859,724 Interest Income 8,500 8,585 8,671 8,758 8,845 Transfer from EDC Debt Reserve - 5,707 5,764 5,821 5,879 Rental Income 73,580 73,580 73,580 73,580 77,845 Total Revenues 5,495,559 5,609,620 5,720,198 5,832,986 5,952,293 EXPENDITURES Parks (2,142,626) (2,164,052) (2,185,693) (2,207,550) (2,229,625) Library (1,239,732) (1,252,129) (1,264,651) (1,277,297) (1,290,070) Economic Development (338,077) (343,623) (349,268) (355,014) (360,862) Transfer to Debt Service (208,182) (375,782) (377,938) (375,653) (378,345) Non-Departmental - Operating (513,546) (570,144)(619,688)(666,783)(714,014) Operating Expenditures (4,442,163) (4,705,730) (4,797,237) (4,882,297) (5,351,260) Capital Expenditures (2,044,876) (254,487) - - - Total Expenditures (6,487,039) (4,960,217) (4,797,237) (4,882,297) (5,351,260) Designated Reserves Recommended Reserves per Policy (730,219) (773,545) (788,587) (802,569) (879,659) Available for Supplemental 1,053,396 903,890 922,961 950,689 601,033 Proposed Supplemental - - - - Remaining Supplemental 1,053,396 903,890 922,961 950,689 601,033 Additional Available for Capital (1,018,856) (263,273) 329,575 663,554 962,153 Total Available for Capital 34,540 640,617 1,252,536 1,614,243 1,563,186 Proposed Capital: Library Remodel & Relocation (50,000) - - - Misc. Park Improvements (75,000) (75,000) (75,000) (75,000) Kiddie Carr Park Improvements - (500,000) - - Wilshire Park Upgrades - (500,000) - Blessing Branch Park Improvements - - - (365,064) Carr Park Trail Connection - - - (241,100) Transfer to TSSC (171,000) - - - Proposed Capital (296,000) (575,000) (575,000) (681,164) Remaining Funds Available 34,540 344,617 677,536 1,039,243 882,022 ENDING FUND BALANCE 764,759 1,118,162 1,466,123 1,841,812 1,761,681 Staffing Variable: Full-time positions 24.25 24.25 24.25 24.25 24.25 Part-time positions 17.00 17.00 17.00 17.00 17.00 225 EDC Half Cent Sales Tax Debt Service and Debt Reserve Funds Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 100,863 128,871 383,358 383,358 383,358 REVENUES Transfer from EDC Operations 317,934 630,269 377,938 375,653 378,345 Interest Income 5,650 5,707 5,764 5,821 5,879 Total Revenues 323,584 635,976 383,701 381,474 384,224 EXPENSES Principal (95,000)(171,950)(182,127)(187,127)(197,304) Interest (68,534)(203,533)(195,511)(188,226)(180,741) Bank Charges / Issuance Cost (85,520)(300)(300)(300)(300) Total Expenses (249,054)(375,782)(377,938)(375,653)(378,345) Transfer to EDC Operations (5,650)(5,707)(5,764)(5,821)(5,879) Transfer to EDC Debt (40,872)0 0 0 0 Total Transfers (46,522)(5,707)(5,764)(5,821)(5,879) Recommended Reserves per Policy *(126,600)(381,087)(381,087)(381,087)(381,087) ENDING FUND BALANCE 128,871 383,358 383,358 383,358 383,358 Debt Issuance Variable: Beginning debt outstanding 40,000 1,625,320 4,873,570 4,691,444 4,504,317 Principal retired (95,000)(171,950)(182,127)(187,127)(197,304) Principal Issued (proposed)1,680,320 3,420,200 - - - Ending debt outstanding 1,625,320 4,873,570 4,691,444 4,504,317 4,307,013 *Recommended reserve level equal to the maximum annual debt outstanding 226 Crime Control & Prevention District Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 922,440 823,671 575,268 525,227 506,576 REVENUES Sales taxes 2,672,030 2,725,471 2,779,980 2,835,580 2,892,291 Interest Income / Misc. 11,885 12,004 12,124 12,245 12,368 Total Revenues 2,683,915 2,737,474 2,792,104 2,847,825 2,904,659 EXPENDITURES Police Protection (2,676,714) (2,735,877) (2,787,145) (2,841,476) (2,897,291) Capital Expenditures (105,970) - - - - Total Expenditures (2,782,684) (2,735,877) (2,787,145) (2,841,476) (2,897,291) Recommended Reserves per Policy (440,008) (449,733) (458,161) (467,092) (476,267) Available for Supplemental 7,201 1,597 4,959 6,349 7,368 Proposed Supplemental - - - - Remaining Supplemental 7,201 1,597 4,959 6,349 7,368 Additional Available for Capital 376,462 373,938 117,107 58,135 30,309 Total Available for Capital 383,663 375,535 122,067 64,484 37,677 Proposed Capital(1)(250,000) (55,000) (25,000) - Remaining Funds Available 383,663 125,535 67,067 39,484 37,677 ENDING FUND BALANCE 823,671 575,268 525,227 506,576 513,944 Staffing Variable: Full-time positions 19.0 19.0 19.0 19.0 19.0 Part-time positions 0.0 0.0 0.0 0.0 0.0 (1) Proposed Capital will only be funded if excess reserves are available. 227 Car Rental Tax Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 4,309,489 3,341,747 6,135,593 8,919,401 10,562,034 REVENUES Motor Vehicle Tax 14,760,765 14,908,373 15,057,456 15,208,031 15,360,111 Interest Income 75,000 75,750 76,508 77,273 78,045 Total Revenues 14,835,765 14,984,123 15,133,964 15,285,304 15,438,157 EXPENDITURES DFW Rebate (9,840,510) (9,938,915) (10,038,304) (10,138,687) (10,240,074) Transfer to Equipment Replacement (376,673) (444,876) (145,301) (260,382) (259,847) Contingencies (100,000) (100,000) (100,000) (100,000) (100,000) Transfer to General Fund (1,640,085) (1,656,486) (1,673,051) (1,689,781) (1,706,679) Operating Expenditures (11,957,268) (12,140,277) (11,956,656) (12,188,851) (12,306,600) Capital Expenses (3,846,239) Total Expenditures (15,803,507) (12,140,277) (11,956,656) (12,188,851) (12,306,600) Recommended Reserves per Policy (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) Available for Supplemental 2,878,497 2,843,846 3,177,308 3,096,453 3,131,556 Additional Available for Capital (1,536,750) 1,341,747 4,135,593 6,919,401 8,562,034 Total Available for Capital 1,341,747 4,185,593 7,312,901 10,015,854 11,693,590 Proposed Capital: Kiddie Carr Park Improvements - (393,500) - - Wilshire Park Upgrades - - (1,453,820) - Traffic Signal - Cheek Sparger at Heritage (50,000) - - - Proposed Capital (50,000) (393,500) (1,453,820) - Remaining Funds Available 1,341,747 4,135,593 6,919,401 8,562,034 11,693,590 ENDING FUND BALANCE 3,341,747 6,135,593 8,919,401 10,562,034 13,693,590 228 Water and Wastewater Fund Executive Summary Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 RATES Water Base Rate $12.50 $13.00 $13.50 $14.00 $14.75 Water Consumption Rate (1)Tiered Tiered Tiered Tiered Tiered Proposed Water Rate Increase $0.30 $0.29 $0.42 $0.35 $0.24 Wastewater Base Rate $10.75 $11.25 $11.75 $12.25 $13.00 Wastewater Consumption Rate(1)$4.27 $4.63 $4.88 $5.05 $5.19 Proposed Wastewater Rate Increase $0.29 $0.36 $0.25 $0.17 $0.14 EXPENSES Departmental Expenditures (19,163,022)$ (20,893,651)$ (22,352,579)$ (23,566,923)$ (24,611,345)$ Salary Package (174,748)$ (178,243)$ (183,590)$ (189,098)$ (194,771)$ Transfers (1,475,000)$ (1,475,000)$ (1,475,000)$ (1,475,000)$ (1,475,000)$ G&A/Franchise Fee (2,579,722)$ (2,784,738)$ (2,945,726)$ (3,102,949)$ (3,224,823)$ Service Center (1,309,899)$ (1,325,157)$ (1,338,329)$ (1,352,302)$ (1,366,658)$ Debt Service (1,062,569)$ (1,125,300)$ (1,109,940)$ (1,106,020)$ (1,111,083)$ Capital (473,921)$ -$ -$ -$ -$ Total Expenses (26,238,881)$ (27,782,088)$ (29,405,165)$ (30,792,291)$ (31,983,680)$ Proposed Supplemental -$ -$ -$ -$ Proposed Capital -$ -$ -$ -$ STAFFING VARIABLE Full-time Positions 43.00 43.00 43.00 43.00 43.00 Part-time Positions 2.00 2.00 2.00 2.00 2.00 (1) Includes Proposed Water & Wastewater Rate Increase 229 Water and Wastewater Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 6,468,595 6,026,924 6,092,212 6,144,305 6,381,504 REVENUES Water Service 14,267,612 15,454,606 16,414,291 17,434,333 18,085,928 Wastewater Service 9,548,020 10,386,512 10,856,816 11,330,035 11,708,202 Reclaimed Water Service 563,251 545,432 682,549 716,463 859,029 Sanitation Service 224,045 230,766 237,689 244,820 252,165 Sale of New Meter/Reconnect 290,000 298,700 307,661 316,891 326,398 Inspection Fees 150,000 154,500 159,135 163,909 168,826 Penalties 230,000 236,900 244,007 251,327 258,867 Miscellaneous 35,000 35,000 35,000 35,000 35,000 Interest Income 75,000 78,250 80,598 83,015 85,506 Initiation & Transfer Fees 30,000 30,900 31,827 32,782 33,765 Recycling Fees 384,282 395,810 407,685 420,915 434,543 Total Revenues 25,797,210 27,847,377 29,457,257 31,029,490 32,248,228 Total Available 25,797,210 27,847,377 29,457,257 31,029,490 32,248,228 EXPENSES Utility Billing (476,243) (488,149) (500,353) (512,862) (525,683) Recycling (41,300) (42,333) (43,391) (44,476) (45,587) Information Services (684,857) (701,978) (719,528) (737,516) (755,954) City Engineer (369,821) (379,067) (388,543) (398,257) (408,213) Water Production (8,288,471) (8,872,737) (9,667,822) (10,337,671) (10,830,511) Water Distribution (1,177,137) (1,214,345) (1,350,853) (1,394,023) (1,464,671) Wastewater Treatment (4,884,966) (5,812,627) (6,135,880) (6,429,819) (6,682,446) Meter Reading (70,396) (72,156) (73,960) (75,809) (77,704) Transfers (1,475,000) (1,475,000) (1,475,000) (1,475,000) (1,475,000) G&A/Franchise Fee (2,579,722) (2,784,738) (2,945,726) (3,102,949) (3,224,823) Fleet Services (1,309,899) (1,325,157) (1,338,329) (1,352,302) (1,366,658) W&WW Debt (1,062,569) (1,125,300) (1,109,940) (1,106,020) (1,111,083) Non-Departmental - Operating (3,344,579) (3,488,502) (3,655,840) (3,825,588) (4,015,346) Operating Expenses (25,764,960) (27,782,088) (29,405,165) (30,792,291) (31,983,680) Capital Expenses (473,921) - - - - Total Expenses (26,238,881) (27,782,088) (29,405,165) (30,792,291) (31,983,680) Recommended Reserves per Policy (5,294,170) (5,708,648) (6,042,157) (6,327,183) (6,571,989) Available for Supplemental 32,250 65,288 52,093 237,199 264,549 Proposed Supplemental - - - - Remaining Supplemental 32,250 65,288 52,093 237,199 264,549 Additional Available for Capital 700,504 318,276 50,055 (182,878) (190,485) Total Available for Capital 732,754 383,564 102,148 54,321 74,063 Proposed Capital (1)- - - - Remaining Funds Available 732,754 383,564 102,148 54,321 74,063 ENDING FUND BALANCE 6,026,924 6,092,212 6,144,305 6,381,504 6,646,052 Rates (2) Water Base Rate $12.50 $13.00 $13.50 $14.00 $14.75 Consumption/1,000 gallons Tiered Tiered Tiered Tiered Tiered Proposed Water Rate Increases - All Tiers $0.30 $0.29 $0.42 $0.35 $0.24 Wastewater Base Rate $10.75 $11.25 $11.75 $12.25 $13.00 90% of Metered Water Usage/1000 gallons $4.27 $4.63 $4.88 $5.05 $5.19 Proposed Wastewater Rate Increases $0.29 $0.36 $0.25 $0.17 $0.14 Staffing Variable Full-time Positions 43.00 43.00 43.00 43.00 43.00 Part-time positions 2.00 2.00 2.00 2.00 2.00 (1) Proposed Capital will only be funded if excess reserves are available. (2) FY19 Includes Proposed Water & Wastewater Rate Increases 230 Water & Wastewater Fund Five Year Plan Revenue Assumptions Revenue Source Assumptions Interest Income Projected increase based on increasing interest rates. Sanitation Services Based on average growth of 3%. Water Service Based on projected rate increases sufficient to cover increased costs and TRA rate increases. Wastewater Service Based on projected rate increases sufficient to cover increased costs and TRA rate increases. Reclaimed Water Service Tiered rate increases based on a percentage of the anticipated tiered rates for sprinkler customers (i.e. 87% for FY2019). The percentage drops 1% annually until the differential reaches 85% of anticipated sprinkler rates. Sale of New Meters Based on average growth of 3%. Reconnect Fees Based on average growth of 3%. Inspection Fees Based on average growth of 3%. Miscellaneous Projected to be flat. Penalties Based on average growth of 3%. Initiation & Transfer Fees Based on average growth of 3%. Recycling Fees Based on average growth of 3%. 231 Water and Wastewater Debt Service Fund/Debt Reserve Funds Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE^775,115 1,225,115 1,225,115 1,225,115 1,225,115 REVENUES Transfer from W&WW Operations 1,062,569 1,125,300 1,109,940 1,106,020 1,111,083 Transfer from Rate Stabilization 515,000 0 0 0 0 Transfer from Impact Fees 375,418 376,024 121,144 118,606 121,069 Total Revenues 1,952,987 1,501,324 1,231,084 1,224,626 1,232,152 EXPENSES Principal (1,200,000)(1,170,000)(915,000)(920,000)(940,000) Interest (300,987)(328,924)(313,684)(302,226)(289,752) Bank Charges (2,000)(2,400)(2,400)(2,400)(2,400) Total Expenses (1,502,987)(1,501,324)(1,231,084)(1,224,626)(1,232,152) Recommended Reserves per Policy *(838,600)(815,759)(791,361)(775,164)(757,969) ENDING FUND BALANCE 1,225,115 1,225,115 1,225,115 1,225,115 1,225,115 Debt Issuance Variable: Beginning debt outstanding 11,545,000 19,620,000 18,450,000 17,535,000 16,615,000 Principal retired (1,200,000)(1,170,000)(915,000)(920,000)(940,000) Principal Issued (Proposed)9,275,000 - - - - Anticipated Loan Forgiveness TWDB - - - - - Net Principal to be Repaid 9,275,000 - - - - Ending debt outstanding 19,620,000 18,450,000 17,535,000 16,615,000 15,675,000 * Recommended reserve level equal to the average annual W&WW debt outstanding 232 Drainage Utility Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 247,722 168,318 172,273 176,482 182,593 REVENUES Drainage Fees 804,000 826,512 843,042 862,432 879,681 Penalties 7,500 8,265 8,430 8,624 8,797 Interest Income 2,500 2,525 2,550 2,576 2,602 Total Revenues 814,000 837,302 854,023 873,632 891,079 EXPENSES Operating Expenses (813,404) (833,347) (849,815) (867,521) (885,748) Capital Expenses (80,000) - - - - Total Expenses (893,404) (833,347) (849,815) (867,521) (885,748) Recommended Reserves per Policy (167,138) (171,236) (174,619) (178,258) (182,003) Available for Supplemental 596 3,955 4,208 6,111 5,332 Proposed Supplemental - - - - Remaining Supplemental 596 3,955 4,208 6,111 5,332 Additional Available for Capital 584 (2,918) (2,346) (1,776) 590 Total Available for Capital 1,180 1,038 1,862 4,335 5,922 Proposed Capital - - - - Remaining Funds Available 1,180 1,038 1,862 4,335 5,922 ENDING FUND BALANCE 168,318 172,273 176,482 182,593 187,925 Rates Drainage Rate $2.75 $2.75 $2.75 $2.75 $2.75 Staffing Variable: Full-time positions 8.00 8.00 8.00 8.00 8.00 Part-time positions 0.0 0.0 0.0 0.0 0.0 233 Service Center Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 485,423 403,923 403,923 403,923 403,923 REVENUES Transfer from W&WW Fund 1,309,899 1,325,157 1,338,329 1,352,302 1,366,658 Total Revenues 1,309,899 1,325,157 1,338,329 1,352,302 1,366,658 EXPENSES Service Center (1,309,899) (1,325,157) (1,338,329) (1,352,302) (1,366,658) Capital Expenses (81,500) - - - - Total Expenses (1,391,399) (1,325,157) (1,338,329) (1,352,302) (1,366,658) Available for Supplemental - - - - - Proposed Supplemental - - - - Remaining Supplemental - - - - - Additional Available for Capital 403,923 403,923 403,923 403,923 403,923 Total Available for Capital 403,923 403,923 403,923 403,923 403,923 Proposed Capital - - - - Remaining Funds Available 403,923 403,923 403,923 403,923 403,923 ENDING FUND BALANCE 403,923 403,923 403,923 403,923 403,923 Staffing Variable: Full-time positions 5.0 5.00 5.00 5.00 5.00 Part-time positions 0.0 0.0 0.0 0.0 0.0 234 Texas Star Golf Course Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 84,165 99,473 103,666 107,967 115,238 REVENUES Green Fees 1,383,310 1,422,127 1,454,124 1,481,026 1,506,944 Driving Range Fees 94,745 97,416 99,608 101,450 103,226 Cart Rental Fees 363,675 374,019 382,435 389,510 396,326 Club Rental Fees 26,710 28,443 29,082 29,621 30,139 Merchandise Sales 230,000 241,762 247,201 251,774 256,180 Tobacco 4,835 5,017 5,130 5,225 5,317 Food Sales 1,226,390 1,240,805 1,268,724 1,292,195 1,314,808 Non-Alcoholic Beverage Sales 132,705 136,524 139,596 142,178 144,667 Alcohol Sales 405,175 419,527 428,967 436,903 444,548 Catering Fees 65,000 65,650 66,307 66,970 67,639 Monthly Fees 109,225 113,048 117,005 121,100 125,338 Rental Income 160,000 164,000 168,100 172,303 176,610 Interest Income - - - - - GF Transfer 16,000 16,639 17,013 17,328 17,631 H/M Transfer 371,355 382,000 391,000 398,000 405,000 Advertising Revenue 47,155 47,155 47,155 47,155 47,155 Other - - - - - Total Revenues 4,636,280 4,754,132 4,861,446 4,952,737 5,041,529 EXPENDITURES Golf Course Maintenance (935,113) (961,296) (983,406) (1,001,796) (1,018,826) Golf Course Pro Shop (273,413) (281,069) (287,533) (292,910) (297,889) Golf Course Food & Beverage (807,215) (829,817) (848,903) (864,778) (879,479) Conference Centre (270,955) (278,542) (284,948) (290,277) (295,211) Cart/Driving Range Operations (201,849) (207,501) (212,273) (216,243) (219,919) Non-Departmental - Operating (578,697) (613,456) (634,395) (656,055) (672,498) Debt Service (422,293) (422,318) (426,751) (424,224) (423,487) Equipment Replacement (312,793) (317,485) (322,247) (327,081) (331,987) COGS-Merchandise (161,000) (169,233) (173,041) (176,242) (179,326) COGS-Tobacco (3,225) (3,347) (3,422) (3,485) (3,546) COGS-Food (429,237) (434,282) (444,053) (452,268) (460,183) COGS-Beverage (44,058) (45,326) (46,346) (47,203) (48,029) COGS-Alcohol (131,074) (135,717) (138,771) (141,338) (143,811) COGS-Catering (50,050) (50,551) (51,056) (51,567) (52,082) Total Expenses (4,620,972) (4,749,938) (4,857,145) (4,945,466) (5,026,275) Recommended Reserves per Policy*- - - - - Available for Supplemental 15,308 4,193 4,301 7,270 15,253 Proposed Supplemental - - - - Remaining Supplemental 15,308 4,193 4,301 7,270 15,253 Additional Available for Capital 84,165 99,473 103,666 107,967 115,238 Total Available for Capital 99,473 107,860 112,268 122,508 145,744 Proposed Capital - - - - Remaining Funds Available 99,473 107,860 112,268 122,508 145,744 ENDING FUND BALANCE 99,473 103,666 107,967 115,238 130,491 Estimated # of Rounds 35,855 36,214 36,576 36,576 36,576 Staffing Variable: Full-time positions 11.75 11.75 11.75 11.75 11.75 Part-time positions (LL Roberts)57.0 57.0 57.0 57.0 57.0 *Recommended Reserves are funded in a separate fund 235 Texas Star Sports Complex Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 169,575 196,177 196,285 212,279 221,041 REVENUES Tournament Fees 305,000 120,000 305,000 305,000 305,000 Concessions 210,000 100,000 210,000 210,000 210,000 Alcohol Sales 195,000 - - - - Memberships/Leagues 410,000 120,000 440,000 440,000 440,000 Admissions 21,000 20,000 21,000 21,000 21,000 Advertising/Sponsorships 19,000 9,000 19,000 19,000 19,000 Sales of Goods 36,000 - 36,000 36,000 36,000 Miscellaneous/Events/Transfers 100 171,000 100 100 100 Interest Income 1,500 1,500 1,500 1,500 1,500 Rental Income 81,000 63,000 93,000 93,000 93,000 Batting Cages 2,500 2,500 2,500 2,500 2,500 Total Revenues 1,281,100 607,000 1,128,100 1,128,100 1,128,100 EXPENSES Operations (1,182,232) (603,136) (1,108,294) (1,115,469) (1,119,868) Equipment Replacement (3,700) (3,756) (3,812) (3,869) (3,927) Operating Expenses (1,185,932) (606,892) (1,112,106) (1,119,338) (1,123,795) Capital Expenses (68,566) - - - - Total Expenses (1,254,498) (606,892) (1,112,106) (1,119,338) (1,123,795) Minimum Reserves per Policy - - - - - Available for Supplemental 95,168 108 15,994 8,762 4,305 Proposed Supplemental - - - - Remaining Supplemental 95,168 108 15,994 8,762 4,305 Additional Available for Capital 101,009 196,177 196,285 212,279 221,041 Total Available for Capital 196,177 196,285 212,279 221,041 225,346 Proposed Capital - - - - Remaining Funds Available 196,177 196,285 212,279 221,041 225,346 ENDING FUND BALANCE 196,177 196,285 212,279 221,041 225,346 Staffing Variable: Full-time positions 1.50 1.50 1.50 1.50 1.50 Part-time positions 26.0 26.0 26.0 26.0 26.0 236 Equipment Replacement Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 3,650,009 4,332,351 4,388,890 4,714,944 4,587,373 REVENUES General Fund Depreciation 1,112,912 1,129,606 1,146,550 1,163,748 1,181,204 TSSC Depreciation 3,700 3,756 3,812 3,869 3,927 Water/Wastewater Depreciation 92,536 93,924 95,333 96,763 98,214 Drainage Depreciation 3,400 3,451 3,452 3,504 3,556 Fleet Services Depreciation 5,328 5,408 5,489 5,571 5,655 EDC Parks Depreciation 5,500 5,583 5,666 5,751 5,837 Texas Star Depreciation 312,793 317,485 322,247 327,081 331,987 Car Rental Transfer 376,673 444,876 145,301 260,382 259,847 Sale of Assets 61,000 116,100 48,500 84,700 $82,900 Interest Income 35,000 35,350 35,704 36,061 36,421 Total Revenues 2,008,842 2,155,539 1,812,054 1,987,430 2,009,548 EXPENSES Equipment Replacements (1,326,500) (2,099,000) (1,486,000) (2,115,000) (2,047,000) Total Expenses (1,326,500) (2,099,000) (1,486,000) (2,115,000) (2,047,000) Available for Capital 4,332,351 4,388,890 4,714,944 4,587,373 4,549,921 Proposed Capital - - - - ENDING FUND BALANCE 4,332,351 4,388,890 4,714,944 4,587,373 4,549,921 237 Health Insurance Fund Multi-Year Financial Plan Base Year Year 2 Year 3 Year 4 Year 5 Budget Projected Projected Projected Projected 2018-19 2019-20 2020-21 2021-22 2022-23 BEGINNING BALANCE 2,633,379 2,678,379 2,835,829 3,002,734 3,180,097 REVENUES Premiums collected from Employees 1,933,536 1,969,741 2,065,737 2,167,148 2,274,264 City Contribution 5,581,357 6,021,223 6,318,210 6,632,443 6,963,792 Interest Income / Misc. / Rebates 45,000 45,450 45,905 46,364 46,827 Total Revenues 7,559,893 8,036,414 8,429,851 8,845,955 9,284,883 EXPENSES Operating Expenses (192,614) (196,481) (199,948) (203,592) (207,329) OPEB Trust Contribution (679,959) (679,959) (679,959) (679,959) (679,959) Insurance Claims (4,995,619) (5,294,067) (5,610,357) (5,945,558) (6,300,799) RX Claims (615,699) (646,484) (678,808) (712,749) (748,386) Re-insurance Fees (797,279) (821,197) (845,833) (871,208) (897,345) Insurance Services (226,715) (233,516) (240,522) (247,738) (255,170) Employee Wellness Program (5,000) (5,150) (5,305) (5,464) (5,628) Federal Requirements (2,008) (2,108) (2,214) (2,325) (2,441) Operating Expenses (7,514,893) (7,878,964) (8,262,946) (8,668,591) (9,097,055) Capital Carryover - - - - - Total Expenses (7,514,893) (7,878,964) (8,262,946) (8,668,591) (9,097,055) Recommended Reserves per Policy (2,676,744)(2,834,915)(3,002,454)(3,179,918)(3,367,895) Available for Supplemental 45,000 157,450 166,904 177,364 187,827 Proposed Supplemental - - - - Remaining Supplemental 45,000 157,450 166,904 177,364 187,827 Additional Available for Capital (43,365) (156,536) (166,625) (177,184) (187,798) Total Available for Capital 1,635 914 280 179 29 Proposed Capital - - - - Remaining Funds Available 1,635 914 280 179 29 ENDING FUND BALANCE 2,678,379 2,835,829 3,002,734 3,180,097 3,367,924 Estimated City Contribution Per Employee Per Month 1,193 1,283 1,336 1,399 1,465 Staffing Variable: Full-time positions 1.00 1.00 1.00 1.00 1.00 Part-time positions 0.0 0.0 0.0 0.0 0.0 238 Supplemental Requests City Manager Recommended and Funded Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested Admin Svcs Information Svcs General Hardware/Software Replacement^Supplemental 277,000$ 2019 Admin Svcs Information Svcs General Court Technology Supplemental 45,000$ 2019 Fire Administration General Integrated Camera/Taser System Supplemental 56,279$ 2019 Fleet & Fac Fac Maintenance General HVAC System Improvements Supplemental 35,000$ 2019 PACS Parks General Tree Trimming Services Supplemental 7,500$ 2019 PW Streets General Field Tech 1 Supplemental 66,455$ 2019 PW Streets General Transfer to FY2019 Street Improvements Supplemental 425,000$ 2019 912,234$ PD Patrol General Patrol Officer^Supplemental $65,081 2020 $65,081 Fire EMS/Suppression General 3 Firefighter/Paramedics^Supplemental $ 321,018 2021 $ 321,018 PD Patrol General Patrol Officer^Supplemental $66,708 2022 $66,708 PD Patrol General Patrol Officer^Supplemental $68,375 2023 $68,375 239 Capital Requests City Manager Recommended and Funded Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested PACS PATS Athletic Complex Champion Wall Outfield Fence Capital 53,200$ 2019 PACS PATS Athletic Complex Netting and Turf Replacement Capital 15,366$ 2019 68,566$ PD Administration CCPD Incident Management Software Capital 15,500$ 2019 PD Administration CCPD Laserfiche Repository and Licenses Capital 20,000$ 2019 PD Administration CCPD Crime Scene Cameras Capital 4,500$ 2019 PD Administration CCPD Wide Format Laminator Capital 3,000$ 2019 PD Administration CCPD Emergency Operations Center Command Console Capital 8,920$ 2019 PD Administration CCPD Drug Detection System Capital 24,050$ 2019 PD Administration CCPD Drone Program Capital 20,000$ 2019 95,970$ Admin Svcs Library EDC Audio/Visual Equipment Capital 150,000$ 2019 Admin Svcs Library EDC Security Cameras Capital 20,000$ 2019 Admin Svcs Information Svcs EDC RecTrac On-site Upgrade Capital 15,000$ 2019 PACS Parks EDC Toro Reel Mower Capital 60,000$ 2019 PACS Parks EDC Toro Multi Pro Boom Sprayer Capital 36,200$ 2019 PACS Parks EDC Brush and Debris Equipment Capital 7,300$ 2019 PACS Parks EDC Chemical Sprayer Capital 7,759$ 2019 PACS Parks EDC Box Blade Attachment Capital 3,800$ 2019 PACS Parks EDC Soil Batch Mixer Capital 10,000$ 2019 Non-departmental Non-departmental EDC Transfer to EDC CIP for Library Remodel Capital 550,000$ 2019 Non-departmental Non-departmental EDC Transfer to EDC CIP for TSSC Phase VII Design Capital 150,000$ 2019 Non-departmental Non-departmental EDC Transfer to EDC CIP for Misc Park Improvements Capital 90,000$ 2019 Non-departmental Non-departmental EDC Transfer to EDC CIP for Contingency Capital 7,493$ 2019 1,107,552$ Non-departmental Non-departmental General HOME/CPR Funding Capital 150,000$ 2019 Admin Svcs Human Resources General Career Prep Program Capital 15,000$ 2019 CMO Communications General Multi-Media Intern Capital 10,500$ 2019 Planning & Development Inspection Services General Third-Party Plan Review and Construction Inspection Capital 35,000$ 2019 Planning & Development Inspection Services General Scanning Service Capital 20,000$ 2019 Admin Svcs Information Svcs General Hardware/Software Replacement^Capital 10,000$ 2019 Admin Svcs Information Svcs General Laserfiche License Upgrade Capital 89,790$ 2019 PW Street Maintenance General Public Works Yard Reconstruction - Phases II and III Capital 220,000$ 2019 Fire EMS/Suppression General Exercise Equipment Replacement Capital 3,000$ 2019 Fleet & Fac Fire Marshal General Part-time Fire Inspectors Capital 23,400$ 2019 Fleet & Fac Fac Maintenance General HVAC Repairs and Upgrades - Police and Courts Capital 370,000$ 2019 Fleet & Fac Fac Maintenance General MagnaGrip System Additions Capital 21,000$ 2019 PD Fac Maintenance General Window Treatment Replacement - Building D Capital 6,200$ 2019 PD Administration General Brazos Ticket Writer Replacement Capital 67,043$ 2019 PACS Administration General Furniture Replacement Capital 11,500$ 2019 PACS Recreation General Floor Replacement - Recreation Center Capital 95,400$ 2019 PACS Aquatics General Aquatic Park Slide Resurfacing Capital 15,000$ 2019 PACS Recreation General Locker Room Upgrade Capital 12,000$ 2019240 Capital Requests City Manager Recommended and Funded Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested PACS Aquatics General Umbrella Fabric Replacement Capital 15,000$ 2019 PACS Recreation General Lobby Furniture Replacement - Recreation Center Capital 29,500$ 2019 PACS Parks General Coverworx Shelter - Bob Eden Park Capital 25,000$ 2019 PACS Senior Center General Treadmill Replacement Capital 23,175$ 2019 Non-departmental Non-departmental General Transfer to Misc Street Repairs Capital 75,000$ 2019 Non-departmental Non-departmental General Transfer to Misc Screening Wall Repair Capital 25,000$ 2019 Non-departmental Non-departmental General Transfer to General Emergency Contingency Reserve Capital 500,000$ 2019 1,867,508$ Planning & Development Development Hotel/Motel Wayfinding Program Phase II Capital 75,000$ 2019 75,000$ PACS Recreation Rec Class Fitness Equipment Replacement Capital 25,800$ 2019 PACS Recreation Rec Class Fitness Center Desk Remodel Capital 11,040$ 2019 PACS Recreation Rec Class Playbook Printing and Mailing Capital 47,000$ 2019 83,840$ Admin Svcs Information Svcs Risk Security Initiative Capital 9,000$ 2019 Fleet & Fac Fac Maintenance Risk Roof Restoration - Building B Capital 94,000$ 2019 Non-departmental Non-departmental Risk Transfer to ADA/TAS Facility Improvements Capital 25,000$ 2019 128,000$ Fleet & Fac Fleet Svcs Svc Center Fence, Gate and Miscellaneous Enhancements Capital 35,000$ 2019 Fleet & Fac Fleet Svcs Svc Center Shop Heater Replacement and Enhancements Capital 21,500$ 2019 56,500$ PW Water Distribution W/WW Enclosed Cab Backhoe Capital 125,000$ 2019 Non-departmental Non-departmental W/WW Transfer to Misc Wastewater Rehab Capital 25,000$ 2019 Non-departmental Non-departmental W/WW Transfer to Misc Valve Replacement Capital 125,000$ 2019 275,000$ Non-departmental Non-departmental Drainage Transfer to Misc Drainage Improvements Capital 80,000$ 2019 80,000$ Non-departmental Non-departmental Car Rental Transfer to Car Rental CIP for Library Construction Capital 2,964,900$ 2019 Non-departmental Non-departmental Car Rental Transfer to Redevelopment Fund Capital 500,000$ 2019 3,464,900$ PD Administration CCPD Security Camera System Capital 250,000$ 2020 250,000$ Admin Svc Library EDC Moving Expenses Capital 50,000$ 2020 PACS Parks EDC Misc Park Improvements Capital 75,000$ 2020 PACS Parks EDC Transfer to TSSC Capital 171,000$ 2020 296,000$ 241 Capital Requests City Manager Recommended and Funded Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested PD Patrol General Patrol Officer^Capital 12,500$ 2020 Fire EMS/Suppression General Hand Tool Replacement Package Capital 10,000$ 2020 Fire EMS/Suppression General Hydraulic Rescue Tools Capital 35,000$ 2020 Fire EMS/Suppression General Thermal Imaging Camera Capital $13,000 2020 Fire EMS/Suppression General Bunker Gear Extractor Capital $20,000 2020 Non-departmental Non-departmental General Transfer to cover Insurance Reserve Capital 112,000$ 2020 202,500$ PD Administration CCPD SWAT Vest Capital 30,000$ 2021 PD Administration CCPD Under Cover Vehicle Capital 25,000$ 2021 55,000$ PACS Parks EDC Misc Park Improvements Capital 75,000$ 2021 75,000$ Fire EMS/Suppression General 3 Firefighter/Paramedics^Capital 12,600$ 2021 Non-departmental Non-departmental General Transfer to cover Insurance Reserve Capital 121,000$ 2021 133,600$ PD Administration CCPD Batteries for large UPS in Dispatch & Radio System Capital 25,000$ 2022 25,000$ PACS Parks EDC Misc Park Improvements Capital 75,000$ 2022 75,000$ PD Patrol General Patrol Officer^Capital 12,750$ 2022 Non-departmental Non-departmental General Transfer to cover Insurance Reserve Capital 131,000$ 2022 143,750$ PACS Parks EDC Misc Park Improvements Capital 75,000$ 2023 75,000$ PD Patrol General Patrol Officer^Capital 13,000$ 2023 Fire EMS/Suppression General Thermal Imaging Camera Capital 14,000$ 2023 Non-departmental Non-departmental General Transfer to cover Insurance Reserve Capital 141,000$ 2023 168,000$ 242 Supplemental Requests Other Items Requested Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested Fire EMS/Suppression General Firefighters/Paramedics (3)^Supplemental 321,018$ 2019 PD Patrol General Patrol Officer^Supplemental 65,081$ 2019 PD Code Compliance General Code Officer^Supplemental 91,007$ 2019 PD Administration General Computer Support Tech Supplemental 70,000$ 2020 PD Administration General Crime Analyst Supplemental 60,000$ 2020 PACS Recreation General Aquatic Programmer Supplemental 86,088$ 2020 PW Street Maintenance General Field Tech Supplemental 77,096$ 2020 PD Administration General Dispatcher Supplemental 80,850$ 2021 PD Administration General Scheduling Software Maintenance Supplemental 3,000$ 2021 PW Sewage & Treatment W/WW Field Tech Supplemental 80,751$ 2021 Fire EMS/Suppression General Training/EMS Officer Supplemental $ 157,852 2022 PW Street Maintenance General Field Tech Supplemental 86,695$ 2022 PW Water Distribution W/WW Field Tech Supplemental 92,408$ 2023 243 Capital Requests Other Items Requested Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested Fire EMS/Suppression General Firefighters/Paramedics (3)^Capital 12,600$ 2019 Fire Fire Marshal General Audio/Visual System Replacement Capital 4,220$ 2019 PD Patrol General Equipment for New Patrol Officer^Capital 12,500$ 2019 PD Code Compliance General Truck for New Code Officer^Capital 29,000$ 2019 Admin Svc Library EDC Consultant - Marketing and Branding Capital 6,800$ 2020 Admin Svc Library EDC Library Staff Technology Capital 25,000$ 2020 Admin Svc Library EDC Digital signage Capital 7,200$ 2020 Admin Svc Library EDC Self Checkout App Capital 10,000$ 2020 Admin Svc Library EDC Smart Table Capital 5,000$ 2020 PD Administration General Floor Machine Capital 7,000$ 2020 PD Administration General Patrol Vehicle Capital 60,000$ 2020 PD Administration General Unmarked Vehicle Capital 25,000$ 2020 PD Administration General Storage Area Network (end of life)Capital 75,000$ 2020 Fire Fire Marshal General Laptop Computers Capital 15,000$ 2020 Fire Fire Marshal General Furniture Replacement Capital 5,000$ 2020 Fire EMS/Suppression General Bail Out Safety System Capital 25,000$ 2020 Fire EMS/Suppression General Compressor/Cascade Capital $ 20,000 2020 Admin Svcs Information Svcs General Cartogrpah Cityworks software - PW and P&D Capital 100,000$ 2020 Fleet & Fac Fac Maintenance General Repaint Redi-Mix HQ Capital 62,000$ 2020 Fleet & Fac Fac Maintenance General Council Chamber Audience Chairs Replacement Capital 85,000$ 2020 Fleet & Fac Fac Maintenance General Roof Restoration - Building D Capital $ 100,693 2020 Fleet & Fac Fac Maintenance General Roof Restoration - Service Center Capital $ 61,000 2020 Fleet & Fac Fac Maintenance General Roof PM Repairs - EFLC Capital $ 60,000 2020 PACS Parks General Field Groomer Capital 10,000$ 2020 PACS Parks General Reel Mower Capital 60,000$ 2020 PACS Parks General Park Shop Expansion Capital $ 20,000 2020 PACS Parks General Chemical Program Capital 35,000$ 2020 PACS Parks General Heritage Playground Capital 100,000$ 2020 PACS Parks General Sea Container/Storage Building Capital 5,000$ 2020 PACS Aquatics General Indoor Pool Floor Resurface Capital 40,000$ 2020 PACS Aquatics General Portable ADA Chair Capital 8,000$ 2020 PACS Aquatics General Pool Vacuum Capital 8,000$ 2020 PACS Aquatics General UV System Capital 45,000$ 2020 PACS Sr Ctr General Treadmill Replacement Capital 7,295$ 2020 PACS Sr Ctr General Fitness Bike Replacement Capital 12,000$ 2020 PACS Sr Ctr General Furniture Replacement Capital 28,000$ 2020 PACS Programs Rec Class Stairmaster, AbCoaster & Row Machine Capital 11,400$ 2020 Fleet & Fac Fleet Svcs Svc Ctr Replace Machine Shop Cabinets Capital 8,500$ 2020 Fleet & Fac Fleet Svcs Svc Ctr Tire Balance and Installation Machine Capital 11,500$ 2020 Fleet & Fac Fleet Svcs Svc Ctr Vinyl Floor Covering Replacement Capital 9,500$ 2020 PACS PATS TSSC Concession Equipment at SBW Capital 33,000$ 2020 PACS PATS TSSC Scoreboard Conversion to LED Capital 50,000$ 2020244 Capital Requests Other Items Requested Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested Admin Svc Library EDC Library Patron Technology Capital 26,000$ 2021 Admin Svc Library EDC Everbrite Interactive digital art Capital 14,000$ 2021 Admin Svc Library EDC Digital endcap signage Capital 30,000$ 2021 PD Administration General Recorder for Dispatch Phone Calls and Backup Radios Capital 160,000$ 2021 PD Administration General Sky Tower Capital 100,000$ 2021 PD Administration General Refrigerator Capital 5,000$ 2021 PD Administration General Washer / Dryer Capital 20,000$ 2021 PD Administration General Freezer Capital 4,000$ 2021 PD Administration General Patrol Vehicle Capital 60,000$ 2021 Fire Fire Marshal General Codes Adoption Capital 4,000$ 2021 Fire Fire Marshal General Hydrocarbon Sniffer Capital 2,500$ 2021 Fire EMS/Suppression General Compressor/Cascade Capital 20,000$ 2021 Fleet & Fac Fac Maintenance General Carpet Replacement - Building B Capital 52,000$ 2021 Fleet & Fac Fac Maintenance General Roof Coating System - PACS Capital 50,660$ 2021 Fleet & Fac Fac Maintenance General Roof Replacement - Simmons Center Capital 160,000$ 2021 Fleet & Fac Fac Maintenance General Roof Restoration - Parks Maintenance Building Capital 65,000$ 2021 Fleet & Fac Fac Maintenance General Roof Restoration - SBW Capital 65,000$ 2021 PACS Parks General Bob Eden Playground Capital $ 100,000 2021 PACS Parks General Mid Cities Median Beautification Capital 25,000$ 2021 PACS Parks General VOBC Amphitheatre Renovation Capital 15,000$ 2021 PACS Parks General Fenway/Shea Dug Out Covers Capital 8,000$ 2021 PACS Parks General Park Shop Concrete/Asphalt Capital 25,000$ 2021 PACS Parks General Equipment Life Capital 14,000$ 2021 PACS Parks General Chemical Program Capital 35,000$ 2021 PACS Aquatics General Outdoor Sand Change Capital 10,000$ 2021 PACS Aquatics General Aquatic Play Unit Capital 75,000$ 2021 PACS Sr Ctr General Kitchen Equipment Replacement Capital 10,000$ 2021 PACS Programs General Poster Printer Capital 6,500$ 2021 PACS Programs Rec Class Adaptive Motion Trainers Capital 14,000$ 2021 Fleet & Fac Fleet Svcs Svc Ctr Roll-up Shop Doors Replacement Capital 36,000$ 2021 Fleet & Fac Fleet Svcs Svc Ctr Lube Reels and Tanks Replacement Capital 14,500$ 2021 PACS PATS TSSC Replace Fence - Royal Capital 50,000$ 2021 PACS PATS TSSC Hitting Tunnels Capital 20,000$ 2021 PW Water Distribution W/WW Full Size Crew Cab Capital 32,000$ 2021245 Capital Requests Other Items Requested Year/Fund/Department *Fund subject to change ^Project contains both Capital and Supplemental Requests Dept Division Fund*Program Description Program Type Program Cost Requested Admin Svc Library EDC Automated Materials Handling (sorters)Capital 125,000$ 2022 Fire Fire Marshal General File Storage Unit Capital $4,000 2022 Fire EMS/Suppression General Heart Monitors Capital 140,000$ 2022 Fire EMS/Suppression General Treadmills Capital 25,000$ 2022 Fire EMS/Suppression General Station Furniture Capital 12,000$ 2022 Fleet & Fac Fac Maintenance General Elevator System Upgrades - PD & Rec Capital 125,000$ 2022 Fleet & Fac Fac Maintenance General Alarm System Replacements Capital 25,000$ 2022 Fleet & Fac Fac Maintenance General Roof Restoration - PD & Courts Capital 149,419$ 2022 Fleet & Fac Fac Maintenance General Roof Restoration - PW Capital 75,000$ 2022 PACS Parks General Midway Playground Capital 200,000$ 2022 PACS Parks General PATS Fitness Area Capital 135,000$ 2022 PACS Parks General Power Washer Capital 15,000$ 2022 PACS Parks General Chemical Program Capital $ 35,000 2022 Fleet & Fac Fleet Svcs Svc Ctr Fuel Pumps Replacement Capital 68,000$ 2022 PACS PATS TSSC Replace Fence - VETS Capital 50,000$ 2022 PD Administration General Console Upgrade Dispatch & Consolette Radio Upgrade Capital 300,000$ 2023 PD Administration General SWAT Vehicle Capital 30,000$ 2023 PD Administration General Live Scan Capital 75,000$ 2023 PD Administration General Fitness Center Remodel Capital 20,000$ 2023 Fire Fire Marshal General Furniture Replacement Capital 5,000$ 2023 Fire EMS/Suppression General Heart Monitors Capital 160,000$ 2023 Fire EMS/Suppression General Treadmills Capital 25,000$ 2023 Fleet & Fac Fac Maintenance General Roof Replacement - Texas Star Conference Centre Capital 410,000$ 2023 Fleet & Fac Fac Maintenance General Roof Restoration - Redi-Mix HQ Capital 122,595$ 2023 Fleet & Fac Fac Maintenance General Generator Replacement - Fire Station #3 Capital 68,000$ 2023 Fleet & Fac Fac Maintenance General Median Light Replacement - City Hall Capital 70,000$ 2023 PACS Parks General Playground Replacement TBD Capital 135,000$ 2023 PACS Parks General PATS Bed Renovation Capital 25,000$ 2023 PACS Parks General Fire Admin Flower Bed Renovation Capital 25,000$ 2023 PACS Parks General Police North Fence Replacement Capital 15,000$ 2023 PACS Parks General Chemical Program Capital 35,000$ 2023 PW Street Maintenance General Re-assessment of 5 Year Pavement Management Plan Capital $ 75,000 2023 Fleet & Fac Fleet Svcs Svc Ctr Shop Lighting Replacement Capital 15,000$ 2023 PACS PATS TSSC Convert Lights to LED Capital 594,000$ 2023 PD Administration General Police Department Building Renovation Capital TBD246                       247 Fleet Transfer : 5 Year Budget Department Name Account Code 2020 2021 2022 2023 Administration 101-1011-513 9601 2,368$ 2,404$ 2,440$ 2,476$ Police / Code Enforcement 101-3025-521 9601 14,040$ 14,251$ 14,465$ 14,682$ Police / Administration 101-3045-521 9601 5,777$ 5,864$ 5,952$ 6,041$ Police / Patrol 101-3046-521 9601 259,709$ 263,605$ 267,559$ 271,572$ Police / C.I.D.101-3047-521 9601 21,334$ 21,654$ 21,979$ 22,309$ Police / Service 101-3048-521 9601 19,872$ 20,170$ 20,472$ 20,779$ Police / Detention 101-3049-521 9601 1,910$ 1,939$ 1,968$ 1,997$ Fire / Marshall / Education 101-4023-522 9601 33,879$ 34,387$ 34,903$ 35,426$ Fire / EMS / Suppression 101-4041-522 9601 417,188$ 423,446$ 429,798$ 436,245$ Facility Maintenance 101-5037-519 9601 17,743$ 18,009$ 18,280$ 18,554$ Planning 101-6032-540 9601 10,421$ 10,577$ 10,736$ 10,897$ Animal Control 101-8033-531 9601 9,643$ 9,787$ 9,934$ 10,083$ Recreation 101-7051-550 9601 24,327$ 24,691$ 25,062$ 25,438$ Parks 101-7052-550 9601 123,195$ 125,043$ 126,918$ 128,822$ Streets 101-8033-531 9601 168,200$ 170,723$ 173,284$ 175,883$ General Fund Total:1,129,606$ 1,146,550$ 1,163,748$ 1,181,204$ City Engineer 501-8066-531 9601 7,275$ 7,384$ 7,494$ 7,607$ Water Production 501-8071-531 9601 21,442$ 21,764$ 22,090$ 22,421$ Water Distribution 501-8072-531 9601 23,073$ 23,419$ 23,770$ 24,127$ Sewer & Treatment 501-8073-531 9601 42,135$ 42,767$ 43,408$ 44,059$ Water and Sewer Fund Total:93,924$ 95,333$ 96,763$ 98,214$ Texas Star - EDC Funded 210-1052-550 9601 5,583$ 5,666$ 5,751$ 5,837$ Fleet Services 504-5090-519 9601 5,408$ 5,489$ 5,571$ 5,655$ Drainage Utility 510-8029-531 9601 3,451$ 3,452$ 3,504$ 3,556$ Texas Star Sports Complex 530-7050-550 9601 3,756$ 3,812$ 3,869$ 3,927$ Texas Star Golf Course 540-7060-550 9601 317,485$ 322,247$ 327,081$ 331,987$ City Total:1,559,212$ 1,582,549$ 1,606,287$ 1,630,381$ 248                       249