Lewisville Budget Workshop 2010-11

8/9/2019 Lewisville Budget Workshop 2010-11

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Claude King, City Manager

Donna Barron, Assistant City ManagerSteve Bacchus, Assistant City ManagerGina Thompson, Budget & Research Dir.

2010-20112010-2011Preliminary BudgetPreliminary Budget


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Utility Fund Revenues Expenditures Fund Balance/CIP Water/Sewer Rates

Unfunded Requests

General Fund Revenues Expenditures CIP

Personnel Property Tax Rate Unfunded Requests

Other Funds

Agenda


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Utility Fund


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Sewer Revenues

FY 08-09 (Actual) $9,665,269

FY 09-10 (Budget) $9,513,732

FY 10-11 (Base) $9,447,566

-$66,166(Base Budget)


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Revenue Comparison (Budget)


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Capital Recovery Fee (Revenue)

Budget Actual

2002-03 .965M 1.369M

2003-04 .684M 1.139M

2004-05 1.152M 1.285M

2005-06 1.545M 1.803M2006-07 .779M 2.248M

2007-08 1.105M 1.773M

2008-09 .891M .919M

2009-10 .305M .489M

2010-11 .336M *

*Actual for 2009-10 as of July 20, was $488,756.


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Capital Recovery Fee (Impact)

Water sales, sewer sales and capital recovery feesrepresent 94.5% of the budgeted Utility Fundrevenues.

Cap. Rec. Fees Water/Sewer Sales

1998-99 13.2% 84%2010-11 1.3% 93.2%


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Revenue Summary

10-11 revenues projected to increase (from budget)$816,563 to $26.052M.

This is due primarily to increases in water revenue($507K) and wholesale sewer sales revenue ($261K).

Total revenue is based on no significant changes andon current rate structure, per Council policy.


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Operating Expenditures

FY 08-09 (Actual) $26,171,624

FY 09-10 (Budget) $25,235,673

FY 10-11 (Base) $26,052,236

$816,563(Base Budget)


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Debt Service

FY 08-09 (Actual) $7,165,278

FY 09-10 (Budget) $7,768,707

FY 10-11 (Base) $7,399,058

-$369,649(Base Budget)


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Debt Service (Budget History)

Budget $ Diff % Diff

2002-03 8.861M 0.775M 9.58%

2003-04 8.979M 0.118M 1.33%

2004-05 8.909M (0.070M) (0.78%)

2005-06 8.757M (0.152M) (1.71%)

2006-07 8.023M (0.734M) (8.38%)

2007-08 8.029M 0.006M 0.07%

2008-09 7.281M (0.749M) (9.33%)

2009-10 7.769M .488M 6.7%2010-11 7.399M (.370M) (4.76%)

% Difference (2003-2011) (16.5%)

Estimated 2011-12 debt service is $7,351,498 including reserve requirements.


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Total Expenditure Comparison (Budget)


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Significant Cost Increases

$776,618 increase in transfers to the General Fundrelated to: PILOT increasing from 2% 4%, as directed during

the City Council Retreat held in February

($526,872).A 1% franchise fee (similar to the fee charged to private

utility companies using our rights of way) is includedas payment to the General Fund ($249,746).

$301,993increase in electricity costs.

$120,781increase in raw and treated water costs based onadjustments to Dallas Water Utility rates.


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Significant Cost Savings

($427,214) one-time costs related to action steps funded in FY2009-10.

($369,649) reduction in debt service requirements (includingreserve).

($312,113) decrease in general and administrative charge to theGeneral Fund based on indirect cost allocation study.

($91,745) removing the one-time transfer to CIP for sewer linereplacements.

($32,565) eliminating the mailing of utility reminder notices.


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Funded New Programs

$30,965 to fund 1% merit pay and minor reclassification adjustments forDivision managers.

$20,615 to replace five doors and frames in the Wastewater plant. Existingdoors were part of the 1976 and 1988 plant expansions.

$18,828 to replace the 14" Apco Valve #7 at Northside Pump Station. Thisvalve is leaking distribution water back into the Clearwells when closed.

$17,362 to replace the existing Motor Control Center (MCC) for the plantwater pumps. Original MCC panel was built and installed in the expansionproject of 1987.


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Funded New Programs

$15,675 to improve the reliability and reduce maintenance needs of theCarbon Feed System at the Upper Trinity Intake. The current systemrequires frequent maintenance and monitoring due to the ease in whichit overflows or stops feeding.

$15,500 to replace both of the North Flocculator belt driven vari-driveunits with gear driven variable speed frequency drive units.

$15,140 to replace and install two gas monitoring systems at theWastewater Plant dry wells.

$8,620to replace the Plant #3 Return and Waste Sludge flow meters. ThePlant Return and Waste meters originally installed in 1995 have failed.These meters are required under the TPDES Permit #10662-001.


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Funded New Programs

$7,632 to purchase a 5000 PSI pressure washer that will enable an operatorto remove the yearly accumulation of lime on the clarifier weir wallsduring the WTP annual maintenance.

$7,500to fund upgrades to five more sites within the Water Plant's SCADAsystem. The existing FIU will not allow any more sites or data to be addedto it.

$6,935 to purchase a water laboratory glassware washer to replace thecurrent washer which is more than ten years old and showing the effects ofthe corrosive environment.

$6,675 to fund the replacement of three 3 inch pumps and one gas powered

tamper. This equipment is used while making repairs to utility lines and isin poor condition.


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Funded New Programs

$4,896 to purchase a wastewater laboratory analytical balance. Thecurrent analytical balance is more than twenty years old.

$2,899to fund vehicle and equipment repair parts.


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Organizational Changes

No organizational changes / personnel shifting in thebase budget.


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Fund Balance

Beginning Ending2008-09 (Actual) 16,202,393 14,549,911

2009-10 (Budget) 14,091,617 13,176,389

2009-10 (Est. Actual) 14,549,911 15,523,259

2010-11 (Base) 15,523,259 15,101,132

The FY 10-11 beginning fund balance is $1.9M more than

anticipated in the FY 09-10 budget due to two things: activityoccurring in FY 08-09 (primarily water and sewer salescoming in over revised budget); and FY 09-10 debtrestructuring - $1.6M.


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Fund Balance

Beginning Fund Balance $15,523,259

(+) Revenues $26,052,236

(-) Expenditures $26,052,236

(-) Transfers Out $422,127Ending Fund Balance $15,101,132

(-) Operating Reserve (15%) $3,907,835

Undesignated Reserve $11,193,297


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Expenditures from Reserves

1)$20,490 for payment of an economic developmentagreement related to the Kathryn Commonstownhome project.

2)3)$401,637for water line replacements; sewer line

replacements and inflow/infiltration repairs.($598,363 is coming from the operating budget toresult in a $1M transfer to CIP for FY 2010-11.)

4)


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2010-11 Capital Program

Inflow/Infiltration Repairs - Basin study andrelated repair work

$250,000

Water Line Replacements TBD $250,000

Sewer Line Replacements TBD $500,000

FY 2010-11 (Reserves)

FY 2010-11 (Bonds)Midway Branch Lift Station and Force Main to

North Holfords Prairie Road$9,400,000


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Planned Capital Program (FY 10-11 through FY 14-15)

Revenue Bonds ReservesWater Treatment Plant $4,000,000 -Sewer Meter, Lift Station, Lines $9,400,000

Water Reuse $6,800,000 -

Water Line Replacements - $1,750,000

Sewer Line Replacements - $3,000,000Wastewater Treatment Plant $4,000,000 -

New Sewer Lines - $3,500,000

Inflow/Infiltration Repairs - $1,250,000

Water Pump Station Transmission Main(Midway West) $2,300,000 -

Eastside Expansion Unknown Unknown

$26,500,000 $9,500,000


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Future Capital Programs(Reserves)

Available $11,193,297

Future Needs $9,500,000

Available amount is the FY 2010-11 ending fundbalance minus the required operating reserve.


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Future Capital Programs

Water Line Replacements TBD $500,000

East Side Gravity Sewer Line $3,500,000

Inflow/Infiltration Repairs Basin study andrelated repair work

$250,000


Water Treatment Plant $4,000,000

FY 2011-12 (Bonds)


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Water Line Replacements - TBD $250,000

Sewer Line Replacements - TBD $1,750,000

Inflow/Infiltration Repairs Basin study andrelated repair work

$250,000


Water Pump Station Transmission Main (Midway) $2,300,000

Water Reuse Design and Construction Phase 1 $3,100,000

FY 2012-13 (Bonds)


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Water Line Replacements - TBD $250,000

Sewer Line Replacements - TBD $500,000

Inflow/Infiltration Repairs Basin study and

related repair work

$250,000


Wastewater Treatment Plant Improvements 3

MGD Expansion - Construction

$3,000,000

FY 2014-15 (Bonds)


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Utility Rate Changes

2001-02 +1%2002-03 +1%

2003-04 +3%

2004-05 -

2005-06 +0.65% (Water)+1.15% (Sewer)

2006-07 +1%

2007-08 +1%

2008-09 +1.5% (Water)+0.5% (Sewer)

2009-10 +2.5% (Sewer)


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Rates (Current)

Water Rates1st 2,000 Gallons $13.18

Each Addl 1,000 Gallons $2.73

Sewer Rates

1st 2,000 Gallons $8.16

Each Addl 1,000 Gallons $3.28


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Rate Comparison

5,000 Gallons


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Rate Comparison

10,000 Gallons


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Rate (Recommendations)

0.5% on water and sewer rates adds $74,155 in waterrevenue and $47,238 in sewer revenue, which covers

the DWU rate increase expenditures ($120,781).


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Rate (Recommendations)

Current 0.5%Water Rates

1st 2,000 Gallons 13.18 13.25

Each Addl 1,000 Gallons 2.73 2.74

Sewer Rates Current 0.5%

1st 2,000 Gallons 8.16 8.20

Each Addl 1,000 Gallons 3.28 3.30


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Direction?

$121,393 - 0.5% increase in water/sewer rates.Allocation of additional revenue.

Also need direction regarding fee modification: Increase residential utility billing deposit from $50 to $75.


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General

Fund


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Revenues

FY 08-09 (Actual) $61,083,450

FY 09-10 (Budget) $60,414,278

FY 10-11 (Base Budget) $60,042,693

(Base Budget) -$371,585


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Major Revenue Changes (Budget 10 vs. Budget 11)

Sales Tax (including Castle Hills) - 630,508Atmos Energy - 210,485

Cable - Verizon +106,787

Commercial Garbage + 140,158

PILOT +526,872

Water/Sewer Franchise Fee +249,746Telephone Franchise -117,824

Engineering Inspection Fees - 121,600

Landfill Host Fee - WM -207,402

Court Fines -150,199G&A Transfer from UF -312,113

- $726,568


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Revenues (Budget 10 vs. Budget 11)

Property Tax FY 09 Actual $21,454,523

PropertyTax FY 10 Est. $21,056,934 (tax decrease $397,589)PropertyTax FY 11 Base $20,784,891 (tax decrease $272,043)


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Revenue Budget


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2000 vs. 2011

1999/00 2010/11

Sales Tax 42.2% 29.44%

Property Tax 27.7% 34.64%

Other Revenues 30.1% 35.92%

For FY 2010/11. Other Revenue percentage increased mainlydue to PILOT increase, W/S Franchise fee addition, andreduction in sales tax projection.


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Potentially Volatile Revenues

Host Fees $1,865,000

Telecom Fees $607,000

Fines $2,978,110

$5,450,110

In 2010-11, these 3 categories account for 9% of total revenues.


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Sales Tax

FY 2003-04 (Actual) $16,711,201FY 2004-05 (Actual) $17,000,576FY 2005-06 (Actual) $18,113,568FY 2006-07 (Actual) $19,216,744FY 2007-08 (Actual) $18,932,595FY 2008-09 (Actual) $17,686,496FY 2009-10 (Estimate) $17,667,819FY 2010-11 (Base) $17,667,819

Down $1.5M since FY 07.


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Property Tax (Rate Analysis)

FY 2009-10 Rate $0.44021

Rate sufficient to meet prop tax revenue $0.45129

Rate without sales tax revenue $0.7407

Rate without any other revenue $1.09802

Rate making up for sales tax loss since 07$0.47679

Assumes: I/S Rate ($0.11865)


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Operating Expenditures

FY 2008-09 (Actual) $59,289,707FY 2009-10 (Budget) $60,414,278FY 2009-10 (Estimate) $59,004,808

FY 2010-11(Base)

$60,042,693FY 10 Budget FY 11 Budget $371,585 reduction


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Operating Expenditures (By Type)


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Expenditures (By Department)


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Significant Cost Increases

TMRS +$376,086

Electricity Costs +$215,182

Health Insurance Costs +191,956


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Significant Cost Reductions

Tuition reimbursement program -$4,550.

Social Services Agency funding - $3,250.

Vacant Call Taker position in the Police department - $45,317. Authority to overfill authorized call taker positions by oneposition will be requested within the budget ordinance.

Reorganizing the police department : downgrading a Captainposition to a Lieutenant and eliminating a vacant Clerk Typistposition - $43,852.

Reducing computer software and generator maintenance,uniforms, and overtime in the Police Department - $45,250.


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Reducing the operating grant transfer from the General Fund for theFamily Violence Grant - $17,926 (Grant not received in 2009-10 andnot budgeted in FY 2010-11).

Three vacant maintenance worker positions (one funded for tenmonths) in the Public Services department - $112,661.

Eliminating plant care for City facilities - $7,000.

Reducing City facility floor maintenance - $5,600.

Reducing daytime janitorial services for City facilities - $68,402.

Reducing frequency of window cleaning for City facilities - $10,000.


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Reduced signal lighting electricity - $26,807.

Vacant Library Services Supervisor position in the Parks and LeisureServices (PALS) department - $89,397. This will be on the unfundedlist.

Reducing Recreation Center hours and part time staffing in the PALSdepartment - $32,641. This will be on the unfunded list.

Reducing mowing of medians and ROWs from 25 cycles to 22 cycles inthe PALS department - $21,201. This will be on the unfunded list.

Reducing book funding in the Library - $5,988.

Vacant Heavy Equipment Operator position in the Public Servicesdepartment - $40,120.


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Reducing PALS mowing costs from rebidding new contract -approximately $82,000.

Vacant Code Enforcement Inspector position in the CommunityDevelopment department - $52,513.

Vacant Public Construction Inspector position in the CommunityDevelopment department - $68,973.

Secretary position in the Community Development department, BuildingInspection Division and moving the existing person into a vacant

Health and Code Enforcement secretarial position - $43,924.

Eliminating miscellaneous engineering and design funding in theCommunity Development department - $3,500.


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Eliminating funding for annual employee events - $20,000.

Eliminating payment for City election workers. Denton County will now pay for these. - $4,000.

Reducing Arts Center expenditures - $50,000.

Part time Deputy Court Clerk position in the Municipal Courtdepartment - $14,560.

Reducing outside audit services in the Finance department -$23,383. This is an unfunded action step request.


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Reducing firefighting tools, nozzles, hoses, power tools, maintenanceof fire stations, firefighting foam and all non-mandatory training inthe Fire department - $30,488

Reducing uniform funding in the Fire department - $10,000.

Eliminating all paper employee pay checks - $4,384.

Eliminating Situational Leadership from the City's internal trainingprogram - $10,467.

Reducing maintenance, consulting, computer replacement funding,and GIS mapping costs in the Information Technology Servicesdepartment - $25,000.


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Eliminating holiday lighting - $43,500 (will be on unfunded list).

Reducing funding for special events. The net affect will be theelimination of the fireworks show - $34,000 (will be on unfunded list).

Eliminating printing and mailing of the Horizon newsletter - $39,440(will be on unfunded list).

Reducing operating grant transfer from the General Fund for the CDBGgrant - $6,599.

Suspending funding for the "traffic improvements" line item in the CIPtransfer program - $330,000. This program has sufficient funds (fromprior years) to survive without appropriations in FY 2010-11.


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Funded New Programsq

q

$500,400 - Compensation Plan adjustments: 1% merit increase for the general government pay plan ($146,615) 1% market plan adjustment for sworn police/fire pay plans

($152,558) Step increases for sworn police/fire pay plans ($170,422)

Policy required reclassifications for three Division Manager positionsand a Business Development Coordinator ($30,805).

$35,029to fund additional miscellaneous concrete rehabilitation (addedas an offset to the reduction of street maintenance workers referencedin the cost savings listing) and because of a dramatic increase in ADA

based sidewalk repair costs.

$1,743for increased operating costs in ITS for network layer two switchesand a migration from Lotus Notes email to outside services provided byGoogle.

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Fund Balance

Beginning Ending2008-09 (Actual) 31,529,355 32,008,365

2009-10 (Budget) 31,607,362 23,656,260

2009-10 (Est. Actual) 32,008,365 24,810,243

2010-11 (Base) 24,810,243 24,148,135

The estimated beginning fund balance for FY 2010-11 is higher thanthe ending FY 2009-10 adopted budget number due to revenue slightly

exceeding projections in FY 2008-09 and expenditures being lowerthan were forecast. In addition, activity this fiscal year indicates asavings of $744,877 due primarily to freezing certain expendituresincluding vacant positions and CIP funding.


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FY 2009-10 Frozen Expenditures

PROJECTS:

Arts Center Operations (non-utility and personnel) $ 59,450

Radio replacements (planned in August) $ 19,277

Computer replacements (planned in August) $ 33,000

Utilities related to Arts Center $ 23,925

Contract mowing (same areas frozen last year) $ 70,000

Neighborhood Street Improvements $400,000

Alley Improvements $170,000

Library Books/AV material $ 42,341


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Reserves

Beginning Fund Balance $24,810,243

(+) Revenues $60,042,693

(-) Expenditures $60,042,693

(-) Transfers Out $221,000(-) One-Time Expenditures $441,108

Ending Fund Balance $24,148,135

(-) Operating Reserve (15%) $9,006,404

Undesignated (Excess) Reserve $15,141,731


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One-Time Expenditures and CIP Transfers (From Reserves)

$220,407for Chapter 380 economic development agreements: $1,739 for the Kathryn Commons Townhome project

$65,000 for Sysco

$138,398 for NewCo

$15,270 for Huffines Plaza.

$50,000to fund smaller ad hoc screening wall maintenance costs. No decisionhas been made on which screening wall maintenance option to pursue for thelarger screening wall projects that are currently needed.

$11,000to fund additional recycling carts. Since implementation of therecycling cart program in 2004, the City has delivered approximately 200carts per yearto new residents and residents requesting second carts.

$171,000 to fund the final phases of the I35 Corridor Comprehensive Plan.


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One-Time Expenditures and CIP Transfers (From Reserves)

$6,000to purchase a new Customer Relations Management Programdue to discontinuing use of Lotus Notes software.

$105,000to fund a new data storage system which will provide XIVstorage for data applications and file shares. The total cost of the

storage system is $210,000 with the Court Technology Fund payingthe other $105,000.

$64,831to fund network layer two switch replacements. This fundingwill replace 16 End of Life Network Switches.

$33,870 to fund wireless access point replacements to allow forcontinued operation of network infrastructure. Funding will replace25 End of Life Access Points, mainly in the Annex and Lake Parkareas.


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Future Projects (Possibly from Reserves)

Technology $1.9M

Econ. Develop. Projects Unknown

Fire Station 8 $6M - $7M

Plaza/Parking $360,000 plus

RTR Matches Unknown

I35 Enhancements Unknown

Screening Wall Construction UnknownPD FF&E $100K

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Annual Street & Drainage Program

Concrete Street Rehab

Valley Parkway (GardenRidge to WCL)

Fox Ave. (Valley to Old Orchard)

Roberts Road

Hebron Parkway

Corporate Drive

College Street (Cowan to Charles)

Misc. Maintenance

$940,000

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Neighborhood Improvements

Lewisville Valley 3

(Abilene, El Paso, Santa Fe, and Chisolm)

$400,000

Alley Rehabilitation

Lewisville Valley 3

$170,000

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Asphalt MaintenanceMidway (Holfords Prairie to Huffines)

McDonnell

Yates

Pine Drive$332,303

Traffic Improvements

$ 0

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Sidewalk Maintenance

Meadow Glen Addition

Valley Parkway

Fox Ave.

Roberts Road

Hebron Parkway

$380,700

Miscellaneous Concrete Rehab

TBD

$ 35,029

Total $2.258M

C id ifi i


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Corridor Beautification

Initial funding in 2004-05 budget

Funded at $250,470 in 2005-06, 2006-07, $751,831 inFY 2007-08, $390,907 in FY 2008-09, $390,907 in FY

2009-10 out of reserves.

There is no funding in 2010-11 base.

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Personnel (Employees per 1,000 population)

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Personnel (Changes from last year)

Parks and Leisure Services Department Removed vacantLibrary Services Supervisor position.

Public Services Department Removed three vacant streetsmaintenance worker positions and a vacant Heavy EquipmentOperator position.

Police Department Removed vacant Call Taker position and avacant Clerk Typist position.

Community Development Removed vacant CodeEnforcement Inspector, Public Construction Inspector, andSecretary.

A total of ten positions have been cut from the recommended GF budget.

T B


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Tax Base(Adjustments to current year)

2009-10

Budgeted Net Taxable Value $6,364,429,892

Adjustments $74,761,372

Final Value $6,439,191,264


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T B


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Tax Base (History)

Values2009-10 Certified Net Taxable $6,364,429,8922009-10 Final Taxable Value* $6,439,191,2642010-11 $6,078,249,548 -4.5%

-5.6%-4.5% from 09-10 Certified roll and -5.6% under 09-10 Final roll

New construction

2008-09 $186,630,6012009-10 $90,145,676 -51.6%

* 2009-10 taxable value includes supplemental roll adjustments.

T B ( j )


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Tax Base (Major Property Types)

2009-10(July)

2010-11(July)

% Change % 10-11 Base

Single Family 2.738B 2.759B .75% 37.60%

Multi-Family .870B .790B -9.15% 10.77%

Commercial 2.134B 2.000B -6.31% 27.26%

Bus. Personal 1.090B 1.042B -4.42% 14.20%

Total Market Value used above.

(Total Exempted properties excluded partial exemptions such as over65 and disabled persons are included in values above.)

T R t I t


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Tax Rate Impact

Each 1 cent = $607,825 (using a 100% collectionrate)

P t T R t (Hi )


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Property Tax Rate (History)

P t T R t (S Citi )


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Property Tax Rate (Survey Cities)


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Debt Rate


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Debt Rate

Calculated debt rate on anticipated debt service of$7,785,476 (using current 100% collection rate and

$92,746 from Debt Fund reserves) is .12143 (2.3%increase from current .11865 debt rate).

Excess collections ($422,228 last fiscal year),$404,462 this fiscal year.

Tax freeze revenue (adds to excess collections)

Although an increase, the .12143 rate is still well belowthe GO Bond Program target rate of .13469 advertisedto voters in 2003.


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Tax Bill Comparison (A g Val e Home)


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Tax Bill Comparison (Avg Value Home)

Average Home Value 2009 $155,037Average Home Value 2010 $155,798

0.45129 Base $682.49 $703.10 $20.61 3.02%

0.46585 Eff O/M $682.49 $725.78 $43.29 6.34%

0.44021 Curr O/M $682.49 $685.84 $3.35 0.49%

0.49641 Rollback $682.49 $773.40 $90.91 13.32%

0.44021 Curr Total $682.49 $685.84 $3.35 0.49%

0.47718 Total Eff $682.49 $743.44 $60.95 8.93%

*Assumes .11865 Debt Rate

Tax Bill Comparison ($100 000 Home)


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Tax Bill Comparison ($100,000 Home)

0.45129 Base 440.21 451.29 11 .08 2.52%

0.46585 Eff O/M 440.21 465.85 25.64 5.82%

0.44021 Curr O/M 440.21 440.21 0 0.00%

0.49641 Rollback 440.21 496.41 56.2 12.7 7 %0.44021 Curr Total 440.21 440.21 0 0.00%

0.47718 Total Eff 440.21 47 7 .18 36.97 8.40%

Tax Rate


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Tax Rate

Base budget O/M rate is .33264, (.01108/3.4% higherthan the current O/M rate of .32156).

Using current rates requires minimum Debt ServiceFund draw down of $261,998 and leaves an operatingdeficit of $678,759.


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Tax Rate


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Tax Rate

Effective O/M rate is .347208. Using this rate wouldresult in additional revenue over base of $887,701(most of which is due to supplemental values receivedthis fiscal year and new growth in 2010-11).


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Unfunded Program Changes


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($114,372 to $606,180) Garbage service rate change.

($27,610) Building permit rate change.

$120,000- Additional contract street repair work. This also helpsoffset the loss of the crew in the base budget. Adding back the crew would cost $120,360 and $48,384 for the Heavy EquipmentOperator.

$66,743- to add back the Library Services Supervisor position.

$30,000- to add-back funding for contracted internal control reviewsof various City functions deemed to be in high risk areas.



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$21,201to add back mowing cycles for median and rights of way. Threemowing cycles were reduced (from 25 to 22 annually) in the basebudget.

$32,641- to add back Recreation Center hours and part time staffing.

Hours eliminated include 26.5 man hours at Herring and 21.0 manhours at Memorial. An additional 8.5 hours per week of part time hoursat Herring, 12 hours per week or part time hours at Memorial, and 7hours per week of part time hours at the Senior Center were alsoeliminated).

$43,500- to add back holiday lighting options - Could be funded out ofthe Recreation Fund. Private funding would be the preferred solution.Reducing the amount of lighting is likely; we are bidding this presently.



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$400,000- The proposed Economic Development policy outlined severalnew incentive opportunities for redevelopment of targeted areas. Funding would be needed to implement this policy - could be funded fromreserves.

$50,000- For video/audio recording equipment. There are two smaller

packages available for this item as needed -- $11,000 just for basic broadcast-quality equipment in the workroom, or $29,000 for high-quality recording equipment in the workroom but no changes to thecouncil chambers. This could be funded from reserves.

$49,462to fund a grand opening celebration at the Arts Center. Staff has

targeted Jan. 14-16 for a potential three-day grand opening that wouldinclude a stakeholders event on Friday night and public events onSaturday and Sunday. This could be funded from reserves orsponsorships.



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$34,000- to add back funding for the Red White and Lewisvillefireworks show. Other options include Recreation Fund or GeneralFund reserves (short term) or sponsorships.

$10,000 - to add back printing for the Horizon newsletter three timesper year. Base budget assumes digital distribution only (to those subscribing with

email addresses) and website access

Recreation WOW still printed ($19K) and mailed ($18K) throughRecreation fund three times per year.


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Budget Reduction Options


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Lower the transfer to the Capital Improvement Program(CIP) by the entire amount needed to offset the decline inproperty tax revenue. This amount has been built up over many years when the tax

base was growing (it was $1.38M in 1997).

The FY 09-10 transfer amount out of the operating budget was$2,553,000.

The base budget transfer was reduced to $2.258M (trafficsignal/lane improvements - $330,000; concrete rehab +

$35,029. see page 36).



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Traffic Engineer (-$127,694). Two years ago, we attempted to add anothercivil engineer to deal with oncoming projects such as Corporate Driveand I35. That position was never filled and was cut last year. Theremaining Traffic Engineer is a vacant frozen position. One option would

be to add back a lesser amount of consulting funds to farm out some of

the work using an "as needed" retainer.1

Eliminate membershipsin Texas Cities Coalition on Franchise UtilitiesIssues (TCCFUI -$4,500) and North Texas Commission (-$7,224).Both of these are regional City advocates, one on utility issues such as

telecom company ROW regulation, the other on general economicgrowth.



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Planner in Economic Development (-$66,419). This position iscurrently vacant and performs plan review for Old Town projectsas well as other projects citywide. ED has a second frozen and

vacant position (Community Services and PlanningAdministrator) that would be filled and then the workload wouldbe spread between this and the second planner.

Maintenance Workers in PALS (-$120,363). The loss of these

positions would impact scheduling, overtime, flexibility inperforming other work and ultimately quality of parks/ROWappearance. Three positions are currently vacant and frozen. Two are in mowing crews One is in athletic field maintenance.



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Seasonal Maintenance Workers in PALS (-$49,672). Thereare currently 12 summertime positions that provideadditional manpower during the high maintenance season.

Three are assigned to Lake Park, Eight to other parks and ROW maintenance,

And one to athletic field maintenance.



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Police Department Communications Supervisor (-$61,391).This is a shift supervision position that is vacant. It is acritical core mission function however, like the vacant calltaker, staff would ask Council to authorize "overfilling" thisposition if the opportunity to get the right person develops,and amend the budget later if needed.

Receptionist (Secretary) (-$46,598) - This is a filled position in

the Manager's office and would require moving theincumbent to a vacant position of the same grade at PALS

Administration. Central phone answering duties would betransferred to either PALS (two clerical) or the City Secretary(three clerical). Coverage responsibilities during breaks andtime off would have to be shared with the City Secretary orFinance, placing more strain on those two functions.



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Staff furlough (-$155,000 per day of furlough) - wouldrequire all employees (including Public Safety andUtility Fund employees) to take one unpaid day off. Loss of pay is usually better handled as a temporary reduction of the

pay rate for the entire year with the employee/supervisor workingtogether to schedule a mutually acceptable date for the off day

Alternative is to leave the pay rates alone and incorporate theunpaid day off within the pay period it occurs...

The idea is to deal with the downturn without the permanent loss ofstaff and services, until revenues recover (hopefully in the shortterm).

The downside is a significant impact to employee relations, whichwould increase with the frequency of furlough days and durationof the approach.


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udget educt o Opt o s

Compensation Plan (-$500,400) One could argue for passing along the costs of at least the

public safety portion of this ($323,000) in the form ofadditional property taxes each year. Public safety continues to be the top priority of residents and

councilproperty taxes alone are barely enough to cover the cost of the

Police department, much less the Fire Department.

Balancing Option


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g p

D/S Fund drawdown of $342,746. Reduces debt rate to .11732 and allows increase of O/M rate to .32289 withstable total rate (.44021).

Leaves operating deficit of -$595,598.

Make transfers of frozen street/traffic CIP in FY 09-10budget (Alley Rehab $170,000, Neighborhood Rehab$400,000).

Eliminate FY 10-11 lines for alley/neighborhood.

Balancing Option


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g p

Adjusted program balances with FY 10-11 budget included (basedon August 5 report)

Alley Rehab $ 170,000 Concrete Rehab 982,735

Asphalt Rehab 860,934 Sidewalk Maint 389,369 Traffic Improv 672,483 Funds Available $3,075,521

Add revenues for building permit fee change $25,598.

Equals balanced budget.

Reduces FY 09-10 reserves (estimated) by $570,000.


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Hotel / MotelTax Fund

Fund Summary(2010-11)


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y ( )

Beginning Fund Balance $1,978,823(+) Revenues $1,275,623

(- ) Expenditures $1,275,623

Ending Fund Balance $1,978,823

Revenue


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Hotel Occupancy Tax revenues estimated at $1.557M;decrease of $62,376 (3.85%) from FY 09-10 budget.

This revenue is offset by the Convention Center

mgmt fee, which is shown as a negative revenueto account for the refunding required under theConvention Center Agreement. This amount iscapped at $300,000.

Interest earnings estimated at $18,375.

Total revenue $1,275,623.

Expenditures


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p

Expenditures decrease 5.8%.

Equipment Fund loan of $2.0 M for CC lease was being paid at rate of $250,000 per year; dropped

to $45,043 due to declining revenue in FY 2009-10and then frozen (will actually be reimbursed byconvention center owner in FY 2011-12($1,750,000) and FY 2015-16 ($2.0M); analysis ofEquipment Fund shows fund can wait for later

payback).

Eliminated visitors guide - $25,000

Arts Funding


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g

Arts Groups funded at $154,831 (Actors ConservatoryTheatre, Greater Lewisville Community Theatre, VisualArts League, Musical Feast, Lake Cities Ballet Theatre,and Lewisville Lake Symphony)

State law sets an Arts cap (15% of tax revenue): $191,343.Money budgeted for marketing of the arts centerprograms; as well as for the arts groups bring the totalspent on arts funding to 14%.

Special Events Funding


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Holiday at the Hall - $30,000Western Day - $282,000

Farmers Market and Kick-Off - $11,200

Keeping the Tradition Alive - $10,000

Saddle Club - $7,000

Fall and Summer entertainment in Old Town Area -$44,000

Total special events budget in HM Fund (including misc.event costs): $388,279; 30% of HM Fund expenditures

Personnel


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5.1 positions

Comm. Relations & Tourism Director (.32)

Tourism Sales Coordinator (2)

Tourism Specialist (1)

Tourism Secretary (1)

Publication Specialist (.70)

Construction Project Manager (.11)

Visitor Information Center


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Visitor Information Center Relocated to Old Town area in December 2009.

Space leased for VIC. Houses a Secretary and Tourism Specialistpositions; conference room and storage space.

Remaining CVB staff members located on Main Street in aseparate building.

Total cost of rental of the VIC and three offices is $48,108

Unfunded Programs


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$27,900 to fund Super Bowl Entertainment Cost for design and marketing of a campaign to encourage individuals to book

hotel rooms in Lewisville.

Campaign will focus on corporate outreach efforts as well as communitywideentertainment including mall activities and evening entertainment.

$25,696 to fund a Texas Music Acoustic Series at the Arts Center. Four events in the courtyard offering acoustic performances by Texas artists.

There would be some off-setting revenue from this performance series.

$42,140 to fund an International Variety Series at the Arts Center. Four events on the main stage offering a variety of dance, music and/or

theater reflecting diverse cultures.

There would be some off-setting revenue from this performance series.


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4B Sales TaxFund

Fund Summary(2010-11)


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Beginning Fund Balance 6,155,069

(+) Revenues 4,750,240

(- ) Expenditures 4,734,575

(- ) Transfers Out 220,474

Ending Fund Balance 5,950,260

(- ) Operating Reserve 710,186

Undesignated Reserve 5,240,074

Revenues


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2009-10 2010-114B Sales Tax 4,676,924 4,521,438 -155,486

Aquatic Facilities 182,342 182,600 258

Transfers In/Interest

161,800 46,202 -115,598

5,021,066 4,750,240 -270,826

Original budget shown for 2009-10.

Expenditures


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2009-10 2010-11 ChangeLibrary 485,879 485,879 0

Aquatic Facilities 524,628 450,495 -74,133

Ballfield Maint 805,566 841,889 36,323

Debt Service 2,894,503 2,895,812 1,309

Administration 60,500 60,500 0

4,771,076 4,734,575 -36,501

Original budgeted shown for 2009-10.

Expenditures


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Administration costs include $500 for required training,and annual indirect cost reimbursement to GeneralFund ($60,000).

Railroad Park operations total $652,495 including 2 crewleaders, 1 chemical applicator, 5 maintenance workers,and a part-time ranger. Also includes all misc.operational costs of the new Park (electricity, etc.)

Expenditures


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Aquatic facility savings of $74,133 due to reducing one-time costs funded in the operating budget in FY 2009-10including $20,600 added for on-going poolmaintenance; $10,717 in utility savings; caulking the

pool decks $19,145, replacing hair baskets $10,886, andrefurbishing slides $14,925.


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Expenditures


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$37,204- Replacing the tot slide at Sun Valley Aquatic Center - Currentslide pads have begun to wear and crack.

$13,200 - Replacing Lily Pads at Sun Valley Aquatic Center - Current

pads have begun to wear and crack.

$23,391- Refurbishing three aquatic play structures - The tea cup andplay structure at Sun Valley Pool and the play structure at Old Townpool. Each feature will be primed, painted and treated to restore theoriginal brightness of color.

Expenditures


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$20,600- Continue the maintenance program for poolrepainting. $20,600 was set aside in FY2010 to begin afour year program to repaint the pools.

$27,890 - Upgrading the Library server and oracle software.

Debt Service


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Debt Service for original debt issue in 2004 (libraryexpansion, land and the aquatic facilities) is$1,671,203.

Debt Service for Railroad Park is $1,224,609.


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Grant Fund

Summary


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Includes revenues and expenditures related togrants made to the city

Grant matches are transferred in from the GeneralFund

CDBG entitlement of $635,106 in 2010-11 ($582,078in 2009-10)


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Debt ServiceFund

Summary


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November, 2003 bond package:

$23.47M authority remaining

Debt service for FY 2010-11 is budgeted at $9,192,024. Includes refunded general obligation and Water/Sewer revenue

bonds that were outstanding.

A transfer from UF will be made each year to recover costsassociated with the revenue bonds.

FY 10-11 Issuance TBD.

Street improvements 64,270,000

Jail Facilities 3,115,000

Public Safety Training Facilities 1,340,000


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InsuranceRisk Fund

Summary


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Includes workers compensation, property-casualty, Life, LTD

Receives revenue from internal premium charges to thedepartments. Rate adjustments for FY 2010-11 include: Workers Compensation set at $900 per employee

Auto liability and physical damage rate dropped from$1,166 per vehicle to $475 per vehicle.

Expenses include payments to insurers, claims costs, thirdparty fees and consultant costs

Proposed claims expenditures are budgeted at $1.47Mcompared to $1.8M in 2009-10 due primarily topositive claims experience.

Fund Balance


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Beginning Fund Balance 6,835,366(+) Revenues 1,466,399(- ) Expenditures 1,466,399(- ) Transfers Out 601,271

Ending Fund Balance 6,234,095

Fund balance is used to cover uninsured losses too large forthe operating budget

2006 analysis by McGriff, Seibels and Williams of Texas, Inc.recommended $5.0M fund balance be maintained in thisfund.


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Health TrustFund


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Summary


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Total FY 2010-11 health trust fund expenditures projected at$6.388M vs. budget of $5.858M in 2009-10; health claimsare projected to be $4.460M in FY 2010-11 (11.6%) increase.

Employee paid premiums for the HRA plan for employeesparticipating in a wellness initiative will increase from 9% to12% depending on the plan and level of coverage (EmployeeOnly rate will increase from $20 per month to $22 permonth). Employees not participating in the wellnessinitiative will see higher premium increases.

Summary


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Enhanced Plan will no longer be offered.

Catastrophic Plan rates remain flat.

Summary


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GASB 45, the GFOA rule relating to funding of retireehealth benefits, necessitates funding this liability byrecognizing the expense as it is earned--during a futureretirees active working life. This avoids future impactson financial ratings and ultimately lower this liability for

future years. This pre-funding is known as the ARC(annual required contribution).

This pre-funding is budgeted at $494,400 for FY 10-11as a transfer from the Health fund to the OPEB fund.

Projected Health fund balance is $1.57M.


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Summary


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Fund created in FY 2007-08 to account for RetireeHealth (other post employment benefits) liability

Advantage is that all fund assets can be invested to reflect a

diversified mix of stocks and bonds for long term growthand sustainability (assumed investment return of 7.5% will be higher than the average gained on other Cityinvestments).

Separate investment policy controls trust investments andPFM Asset Management LLC manages these long terminvestments.

Summary


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Higher return lowers the annual ARC calculation andfunding required in future years.

Operating revenue into fund is made from the HealthFund to cover the calculated ARC amount (recalculatedeach year, $494,400 for FY 2010-11) as well as interestearnings ($60,000 for FY 2010-11).


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TIF Fund

Summary


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Revenue increased this year due to higher property valuations. Captured tax base increment is $78,909,810compared to $77,367,158 in FY 2009-10.

Total property tax revenue in preliminary budget is $441,907.Based on new valuation, the revenue estimate would be$533,970, using current City and County tax rates.

Summary


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Debt issued in 2007 for $8,040,000 for the Arts/Cultural Center.Debt payment in FY 2010-11 is $368,979.Debt service will increase in 2012-13 to $508,266 and will

continue to increase in the 5 6% range every year there after.Tax value will be increasing as well. However, if tax values do

not keep up with the debt schedule requirements, other optionsinclude:

Refinancing Extending the life of the TIRZ

Transfers from the Debt Service Fund Draw downs from TIRZ or General Fund reserves.


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TIF 2 Fund

Summary


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New zone established in Oct. 2008 comprised of 427 acres nearI35E and SH 121 (NW Corner); expires in December, 2038.

The tax increment base (value of properties in the zone as of

October, 2008) is $9,097,649. Value now is $5,239,355,resulting in a tax increment value of -$3,858,294. Property taxresulting from this value (based on current City and County taxrates) is therefore zero. $12,923 is currently budgeted in thepreliminary budget. This amount will be zeroed out in the

Proposed Budget.

Summary


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There are no TIF #2 planned expenditures for FY 2010-11.However, a General Fund expenditure of $2.4M was madein FY 2009-10 to pre-fund the Riverside projectroad/bridge. This will ultimately be paid back to the

General Fund by revenue from TIF #2.

Lewisville Budget Workshop 2010-11

Documents

Transcript of Lewisville Budget Workshop 2010-11