AND BUSINESS PLAN OVERVIEW City Value Proposition FY 2019 Proposed - PowerPoint PPT Presentation

2019 PROPOSED BUDGET City of Arlington, Texas AND BUSINESS PLAN

OVERVIEW • City Value Proposition • FY 2019 Proposed Budget • FY 2019 Priorities and Core Services • August 14 th Meeting • Budget Calendar

BUDGET DEVELOPMENT PROCESS • Comprehensive Financial Forecast • Department reviews with CMO • All items considered included in Budget Document (Other Budget Information) • Reconciliation of Positions (adds, deletes, reorganizations)

BUDGET STRATEGY • Balanced and in accordance with City’s Financial Principles • Advance Priorities while maintaining Core Services • Addresses employee compensation (three-year plan)& insurance adjustments • Distribute Oversight and Workload • Maintain Favorable Tax Policy

FY 2019 BUDGET • Targeted investments in new technology & public safety • Tax rate of $0.6348, a half-cent reduction in the tax rate • Electricity savings • Strategic use of one-time funding • Fee adjustments • Capital expenses planned in CIP • Volunteer program (124,000 Hours) • Grants ($13.3M)

BEST PRACTICES

CITY CONTRIBUTIONS TO THE STATE • Sales Tax Service Fee - $2.2M • Court Fines - $3.8M • Payments to Other Agencies - $796k • Total = $6.8M • 2.6 cents on tax rate

FIRE ISO & NFIP RATING • Fire ISO 1 rating effective March 1, 2018 • 1% of US communities achieve ISO 1 • Rating used by most insurance companies to predict risk when assessing premiums • Rating upgrade means reduced costs for businesses • Public Works achieved upgraded National Flood Insurance Community Rating on May 1, 2018 • Upgrade based on capital improvement project planning, building standards, infrastructure maintenance, storm water education & outreach • Upgraded rating may provide average annual flood insurance premium savings ranging from $83 to $217 depending location of the property to the floodplain

FAVORABLE TAX POLICY Mandated Veteran Exemptions Local Option Exemptions RESIDENTIAL General Tax Ceiling for Over 65 Disabled Person Vet1 Vet2 Vet3 Vet4 Homestead Over 65 Minimums and Up to 20% of appraised Local Officials At least $3,000; no At least $3,000; no Maximums value, must be worth at Authorized or Not 5,000 7,500 10,000 12,000 max established max established Authorized least $5,000 Authorized 5,000 7,500 10,000 12,000 Arlington 20% $60,000 $60,000 Authorized Authorized Business Exemptions COMMERCIAL Freeport Abatements Minimums and Local Officials Authorized or Not Local Officials Authorized or Not Maximums Authorized Authorized Authorized Arlington Authorized Authorized

AMOUNT OF EXEMPTIONS No Ceilings or Current Homestead Exemption M&O 0.4428 0.3859 I&S 0.1920 0.1675 Total Tax Rate 0.6348 0.5534 0.0814 Total AV Value $25,753,273,388 $29,549,318,686 Exemption/Ceiling $3,796,045,298 Avg Taxable Home Value $140,455 Avg Appraised Home Value $181,444 Cost to Average Home Owner $891.61 $1,004.11

TAX BILL COMPARISON Using $177,490 as Average Home Value Tax Rate Homestead Tax Bill El Paso 0.8034 0% 1,425.95 Mansfield 0.7100 0% 1,260.18 Mesquite 0.6870 0% 1,219.36 Fort Worth 0.8050 20% 1,143.04 Grand Prairie 0.6700 > 1% or $10,000 1,117.83 Richardson 0.6252 0% 1,109.67 Dallas 0.7804 20% 1,108.11 Corpus Christi 0.6063 10% 968.51 Lubbock 0.5380 0% 954.90 Arlington 0.6398 20% 908.46 Carrollton 0.5997 20% 851.53 Irving 0.5941 20% 843.57 Austin 0.4448 > 8% or $5,000 726.32 Plano 0.4686 20% 665.37 Southlake 0.4620 20% 656.00 Grapevine 0.2892 20% 410.64

TAX BILL COMPARISON

TAX BILL COMPARISON

TAX BILL COMPARISON 2017 Exemptions 2018 Tax Bill Valuation House 1 None $121,121 $768.88 House 1 HS $121,121 $615.10 House 2 HS $124,267 $631.08 House 2 HS, OV65 – No Freeze $124,267 $250.20 House 2 HS, OV65 w/Freeze $124,267 $167.53 • Homeowner 1 Savings: • HS – $153.78 • Homeowner 2 Savings: • Over 65 Tax Freeze – $82.67 • Over 65 Exemption/Tax Freeze – $463.55

CITY COMPARISONS

OTHER CITY COMPARISONS FY 2018 Assessed Value FY 2018 Employees per Capita (in $1,000's) per 10,000 Citizens Southlake $244 Austin 146.9 Grapevine Southlake $157 138.2 Austin Grapevine $146 137.5 Plano Dallas $140 115.7 Richardson $135 Richardson 98.5 Irving $103 Corpus Christi 97.3 Carrollton $99 Lubbock 92.0 Dallas $88 El Paso 91.0 $85 Mansfield Plano 82.7 Corpus Christi $78 Fort Worth 80.8 Arlington $60 Irving 80.7 Fort Worth $60 Mansfield 78.5 Lubbock $55 Mesquite 77.9 El Paso $49 Arlington 66.3 Average : $103 Average : 96.5 Mesquite $47 Carrollton 63.5 $- $50 $100 $150 $200 $250 - 20 40 60 80 100 120 140 160 Populations: 2018 Survey of Texas Cities

OTHER CITY COMPARISONS FY 2018 Tax Levy Per Capita FY 2018 General Fund Expenditures per Capita Southlake $1,127 Grapevine $1,312 Richardson $842 Southlake $1,299 Dallas $689 Richardson $1,227 Plano $654 Plano $1,086 Austin $649 Austin $1,076 Irving $614 Irving $991 Mansfield $603 Dallas $972 Carrollton $596 Lubbock $836 Fort Worth $481 Mansfield $819 Corpus Christi $476 Mesquite $797 Grapevine $455 Fort Worth $777 El Paso $397 Carrollton $754 Arlington $382 Corpus Christi $735 Mesquite $323 Average: $572 Arlington $621 Average : $926 Lubbock $298 El Paso $584 $0 $200 $400 $600 $800 $1,000 $1,200 $- $200 $400 $600 $800 $1,000 $1,200 $1,400

OTHER CITY COMPARISONS FY 2018 Ad Valorem Tax Rates FY 2018 General Homestead Exemption State Limit Fort Worth $0.8050 Arlington 20% El Paso $0.8034 Southlake 20% Dallas $0.7804 Plano 20% Mansfield $0.7100 Irving 20% Mesquite $0.6870 Grapevine 20% Arlington $0.6398 Fort Worth 20% Richardson $0.6252 Dallas 20% Corpus Christi $0.6063 Carrollton 20% Carrollton $0.5997 Corpus Christi 10% Irving $0.5941 Austin 8% Greater of 8% or $5,000 Lubbock $0.5380 Grand Prairie 1% Greater of 1% or $10,000 Plano $0.4686 Richardson 0% Southlake $0.4620 Mesquite 0% Austin $0.4448 Mansfield 0% Average: $0.6036 Grapevine $0.2892 Lubbock 0% Average: 11.2% $- $0.20 $0.40 $0.60 $0.80 $1.00 El Paso 0% General Fund Rate Debt Rate 0% 5% 10% 15% 20% 25%

OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION *Adopted Crime Tax

OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION Fire 2.0 1.53 1.52 1.43 1.5 1.38 1.29 1.22 1.19 1.19 1.09 1.08 1.04 0.92 1.0 0.5 -

OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION

OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION

OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION

BUDGET AND BUSINESS PLAN HIGHLIGHTS

RESULTS • Turnaround time for commercial construction plans within 12 business days: 88% in FY 2017, 98% estimated for FY 2018 • Requests for pothole repair completed within 3 working days of request: 93% in FY 2017, 95% estimated for FY 2018 • Participation in Parks programs and classes: 40,124 in FY 2017, 42,000 estimated for FY 2018 • Citizen satisfaction with overall library services: 89% in FY 2017, 92% in FY 2018

PLANNED ITEMS FOR 2019 CIP DEBT ISSUANCE • Fire Heavy Fleet replacement ($2,692,336) • Tierra Verde HVAC ($750,000) • Infrastructure Maintenance/City Facilities ($1,000,000) • Playground Replacement Program ($1,140,000) • River Legacy Parking lot renovations ($350,000) Total: $5.9M

FY 2019 BUDGET

ALL FUNDS – OPERATING POSITIONS

CITY REVENUES BY FUND

CITY EXPENDITURES BY FUND

SUMMARY OF EXPENDITURE CHANGES

GENERAL FUND BUDGET BY DEPARTMENT

GENERAL FUND EXPENDITURES

GENERAL FUND POSITIONS Police vs. Other General Fund Staffing FY 2001 - FY 2019 1,400 1,200 1,000 800 600 400 200 - Police Other General Fund

GENERAL FUND REVENUE CHANGES • Ad Valorem revenue increase of 9.3% • Reduction in rate • Increase in General Fund revenue of $9.1M in FY 2019 budget • Anticipates September bill valuation change and ongoing impact of tax litigation settlements • Sales Tax Revenue • FY 2019 General Fund sales tax revenue is projected to be $64.5M, which is $1.7M above the FY 2018 budget • 3.1% growth over FY 2018 estimate • Other Revenues • Ballpark lease reallocate $750k (moved to one-time) • Municipal Court down $575k • Franchise Fees down $376k • Interest income growth of $322k

GENERAL FUND REVENUES

PROPERTY TAX BASE

PROPERTY TAX RATES