FY 2019-20 Budget David Gaines Finance Director September 17, 2019 - - PowerPoint PPT Presentation

SLIDE 1

FY 2019-20 Budget

David Gaines Finance Director September 17, 2019

SLIDE 2

Key Budget Dates

✓ June 18, 2019

General Fund Five Year Forecast Presentation, Departmental Presentations

✓ June 25, 2019

Departmental Presentations

✓ July 16, 2019

2nd General Fund Five Year Forecast Discussion, Departmental Presentations

✓ July 23, 2019

Departmental Presentations

✓ July 24, 2019

Final Certified Value Received

✓ August 1, 2019

1st Budget Workshop – City Manager’s Proposed Budget Submitted to Council

✓ August 13, 2019

2nd Budget Workshop

✓ August 20, 2019

3rd Budget Workshop/1st Public Hearing on Tax Rate

✓ September 10, 2019

2nd Public Hearing on Tax Rate & Public Hearing on Budget

• September 17, 2019

Council Adopts Budget

September 10, 2019 - ID19-1882

SLIDE 3

Property Values and Tax Rate

Current Tax Rate $0.620477 / $100 Proposed Tax Rate Maintenance & Operation $0.385364 / $100 Debt Service $0.205090 / $100 Total Proposed Tax Rate $0.590454/ $100 Effective Tax Rate $0.590454 / $100 Rollback Tax Rate (Current 8%) $0.633033/ $100

Future “Rollback Tax Rate” (Future 3.5%) $0.610501 / $100 (Beginning in FY2021 For Reference Only)

* Excluding TIRZ Values

Certified Taxable Value* $12,620,560,528 Value Increase 11.52% Freeze Adjusted Certified Taxable Value* $11,196,080,339 Value Increase 11.3%

September 10, 2019 - ID19-1882

SLIDE 4

General Fund Revenue FY 2019-20 Proposed Budget

Property Tax 35.7% Sales Tax 28.8% Franchise Agreements 3.4% Other Taxes 0.4% Service Fees 6.0% Fines and Fees 2.6% Licenses and Permits 4.9% Transfers 9.2% Return on Investment (ROI) 6.6% Other Revenues 2.4%

September 10, 2019 - ID19-1882

$136,335,942

SLIDE 5

General Fund Expenditures by Function FY 2019-20 Proposed Budget

Building Inspections 2.5% Comm Imp Services 1.2% Libraries 4.5% Parks & Recreation 9.0% Planning 2.8% Gas Well Inpections 0.3% Comm Development 1.2% Animal Services 1.5% Fire 23.4% Municipal Court 0.9% Police 26.4% Public Safety Communications 3.0% Traffic/Transportation 2.3% Legal/CMO/Judge 4.1% 380 Agreements 2.8% Economic Development 0.9% Finance/Internal Audit 1.0% Other 12.4%

September 10, 2019 - ID19-1882

$136,461,548

SLIDE 6

FY 2019-20 Proposed Budget by Fund - $1,233,556,997

August 1, 2019 - ID19-1710

General Fund 11.1% General Debt Service Fund 7.4% Electric Fund 18.6% Water Fund 4.1% Wastewater Fund 3.1% Solid Waste Fund 3.1% Internal Service Funds 8.2% Street Improvement Fund 1.3% Other Funds 2.0% Grants 0.4% Capital Budget New Funding 11.0% Capital Budget Available Funding 29.7%

SLIDE 7

Monthly Rate Impact – Average Residential Customer

FY 2018-19 FY 2019-20 Increase/ (Decrease) % Change Electric (1,200 kWh/month) $124.80 $124.80 $0.00 0.00% Water $54.18 $54.18 $0.00 0.00% (9,200 gallons/month) Wastewater $31.15 $31.15 $0.00 0.00% (5,400 gallons/month) SW – Standard Cart $24.51 $24.51 $0.00 0.00% (standard sized cart) Total $234.64 $234.64 $0.00 0.00%

September 10, 2019 - ID19-1882

SLIDE 8

September 10, 2019 - ID19-1882

SLIDE 9

September 10, 2019 - ID19-1882

Changes to Proposed Budget

• Increased Development Service Fee Revenue $2.8 Million
• Reduced Property Tax Rate to Effective Rate
• Funded Development Fee Grant or Other Assistance an Additional $150,000
• Decreased Engineering Services Transfer $500,000 due to Engineering Review Fee

changes

• Increased Meet and Confer Allocation $60,000 ($510,000 total)
• Increased City Council Contingency Budget from $1,600 to $1,700
• Increased Election Expenses by $50,000 for November and May elections
• Included funding for Downtown Pressure Washing ($35,000) in the General Fund

SLIDE 10

Revenue Assumptions

• Assessed Value Increases
• FY 2019-20 – 11.52% (11.9% with TIRZ values)
• 11.3% increase in Non-Frozen Values
• FY 2020-21 and beyond – Assumes effective tax rate each year plus new value.
• Proposed (Effective) tax rate of $0.590454 (3 Cent Decrease from Current Tax Rate)
• Debt Service Portion of Tax Rate
• Decrease of $0.00995 to $0.205090 in FY 2019-20
• M&O Portion of Tax Rate
• Decrease of $0.020066 from $0.405432 in FY 2018-19 to $0.385364 in FY 2019-20
• Sales Tax
• FY 2019-20 – 3.5% above the revised estimate for FY 2018-19
• FY 2020-21 and beyond – 3.5% increase
• Franchise Fees
• Assumed $650K decrease in FY 2019-20 projection
• Result of SB 1152 change to Franchise Fee Payments
• Increase in Development Service Fees
• $2.8 Million increase based on revised fees following cost of service study

September 10, 2019 - ID19-1882

SLIDE 11

Average Taxable Value - History

Fiscal Year Operations Rate Debt Rate Total Rate Average Taxable Value Average Tax Bill 2020 $0.385364 $0.20509 $0.59045 $248,909 $1,470 2019 $0.40543 $0.21505 $0.62048 $233,165 $1,447 2018 $0.43031 $0.20755 $0.63786 $214,136 $1,366 2017 $0.46674 $0.21660 $0.68334 $197,379 $1,349 2016 $0.47456 $0.21519 $0.68975 $179,149 $1,236 2015 $0.48119 $0.20856 $0.68975 $166,728 $1,150 2014 $0.47480 $0.21495 $0.68975 $157,039 $1,083 2013 $0.47088 $0.21887 $0.68975 $154,354 $1,065 2012 $0.47088 $0.21887 $0.68975 $154,282 $1,064 2011 $0.47088 $0.21887 $0.68975 $153,160 $1,056

September 10, 2019 - ID19-1882

SLIDE 12

Tax Rate - History

September 10, 2019 - ID19-1882

$0.50815 $0.59815 $0.66652 $0.59045 $0.40000 $0.50000 $0.60000 $0.70000 $0.80000 Fiscal Year

SLIDE 13

September 10, 2019 - ID19-1882

City Comparison

City Population Cents Over Effective Rate Proposed Tax Rate Water Rate Increase Wastewater Rate Increase Denton 133,808 $0.0000 $0.59045 0% 0% Plano 288,061 $0.0000 $0.4482 2% 0% Mesquite 142,816 $0.0392 $0.7340 0% 0% McKinney 191,645 $0.0069 $0.5156 2% 6% Allen 103,383 $0.0024 $0.4890 8% 10% Richardson 120,981 $0.0353 $0.6252 7.5% 7.5% Garland 242,504 $0.0200 $0.7696 0% 3.96% Irving 195,218 $0.0269 $0.5941 2.6% 5.8% Arlington 398,112 $0.0440 $0.6240 2.5% 8% Grand Prairie 191,720 $0.0585 $0.6699 4.5% 4.5% Frisco 189,916 $0.0119 $0.4466 2% 2% Round Rock 116,120 $0.0370 $0.4390 0% 0% Carrollton 136,170 $0.0319 $0.5949 7.3% 7.3% Lewisville 105,640 $0.0299 $0.4433 1% 1%

SLIDE 14

General Fund Expenditures by Function FY 2019-20 Proposed Budget

Building Inspections 2.5% Comm Imp Services 1.2% Libraries 4.5% Parks & Recreation 9.0% Planning 2.8% Gas Well Inpections 0.3% Comm Development 1.2% Animal Services 1.5% Fire 23.4% Municipal Court 0.9% Police 26.4% Public Safety Communications 3.0% Traffic/Transportation 2.3% Legal/CMO/Judge 4.1% 380 Agreements 2.8% Economic Development 0.9% Finance/Internal Audit 1.0% Other 12.4%

September 10, 2019 - ID19-1882

$136,461,548

SLIDE 15

General Fund Forecast – Development Fee Increase/Effective Tax Rate

September 10, 2019 - ID19-1882

FY 2018-19 Budget FY 2018-19 Estimate FY 2019-20 Proposed FY 2020-21 Projected FY 2021-2022 Projected FY 2022-23 Projected FY 2023-2024 Projected Beginning Fund Balance 30,317,385 $ 30,317,385 $ 30,135,495 $ 29,974,888 $ 29,732,809 $ 29,323,681 $ 29,477,051 $

Property Tax

46,259,982 $ 46,259,982 $ 48,629,397 $ 50,293,933 $ 51,856,989 $ 53,420,580 $ 54,984,724 $

Sales Tax

41,425,582 37,953,567 39,281,942 40,656,810 42,079,798 43,552,591 45,076,932

Other Revenues

40,015,741 41,492,342 48,424,603 48,224,749 49,529,077 51,072,524 52,779,690

Total Revenue

127,701,305 $ 125,705,891 $ 136,335,942 $ 139,175,492 $ 143,465,865 $ 148,045,695 $ 152,841,346 $

Base Expenditures*

129,184,436 $ 125,435,880 $ 130,876,472 $ 138,617,572 $ 143,874,992 $ 147,892,325 $ 152,285,026 $

New Recurring Expenses

5,140,591 $ 800,000 $

New One-Time Expenses

451,901 $ 479,485 $

Total Expenditures

129,184,436 $ 125,887,781 $ 136,496,548 $ 139,417,572 $ 143,874,992 $ 147,892,325 $ 152,285,026 $ Ending Fund Balance 28,834,254 $ 30,135,495 $ 29,974,888 $ 29,732,809 $ 29,323,681 $ 29,477,051 $ 30,033,372 $ Change in Fund Balance (1,483,131) $ (181,890) $ (160,606) $ (242,080) $ (409,128) $ 153,370 $ 556,321 $ Fund Balance as % of Total Expenditures 22.32% 23.94% 21.96% 21.33% 20.38% 19.93% 19.72%

SLIDE 16

Supplemental Package Summary General Fund

• $479,485 one-time Cost, $4,818,377 on-going cost
• All supplementals listed funded at the Effective Tax Rate

September 10, 2019 - ID19-1882

Department Program Title Personnel Services On-Going Costs One-Time Costs Requested Expense Amount

Animal Services Two Temporary Kennel Techs 17,498 $

• $
• $

17,498 $ Animal Services Volunteer Coordinator 77,896 $

• $
• $

77,896 $ Animal Services Additional Animal Control Officers 132,346 $

• $
• $

132,346 $ Council Initiative Integrated Pest Management - Topdressing (Parks)

• $

461,100 $

• $

461,100 $ Council Initiative Block Party - Street Closures (Parks)

• $

2,400 $

• $

2,400 $ Council Initiative Creation of Co-Sponsorship Special Event Fund (Parks

• $

280,000 $

• $

280,000 $ Council Initiative Barrier Funds - Diversion

• $

40,000 $

• $

40,000 $ Council Initiative Housing/Rapid Re-Housing

• $

100,000 $

• $

100,000 $ Council Initiative Expand & Enhance MKOC Shelter (7 nights/week)

• $

400,000 $ 80,000 $ 480,000 $ Council Initiative Street Outreach Team Expansion

• $

64,600 $

• $

64,600 $ Council Initiative Special Counsel - Internal Audit

• $

25,000 $

• $

25,000 $ Council Initiative Living Wage Impact - $15.00/hr (Full Time, Part Time) 13,398 $

• $
• $

13,398 $ Finance Accounts Payable Automation Software

• $
• $

200,000 $ 200,000 $ Fire Fire Operations Professional Development Program 18,986 $ 10,000 $

• $

28,986 $ Library Eliminate Overdue Fines

• $
• $
• $

75,000 $ Parks New and Existing Parks Maintenance

• $

508,105 $

• $

508,105 $ Planning Permitting & Planning Software Maintenance

• $

300,000 $

• $

300,000 $ Planning Comprehensive Plan Update

• $
• $

95,000 $ 95,000 $

SLIDE 17

September 10, 2019 - ID19-1882

Supplemental Funding Summary (Cont.)

Department Program Title Personnel Services On-Going Costs One-Time Costs Requested Expense Amount

Police Sworn Officers 441,949 $ 11,772 $ 41,068 $ 494,789 $ Police Meet and Cofer

• $

510,000 $

• $

510,000 $ Police Civilian Jailers 131,429 $ 2,400 $ 12,616 $ 146,445 $ Police Public Safety Officers 201,884 $ 11,772 $ 30,801 $ 244,457 $ Public Affairs Construction Guide

• $

40,000 $

• $

40,000 $ Public Affairs Our Daily Bread Security

• $

18,850 $

• $

18,850 $ Public Safety Communications Additional Telecommunications Employees - 3 FTEs 294,517 $

• $
• $

294,517 $ Public Safety Communications Dispatcher Overtime 105,060 $

• $
• $

105,060 $ Recreation Fund North Lakes Driving Range Ball Machine

• $
• $

15,000 $ 15,000 $ Technology Services Public Safety – Identix LiveScan Upgrade

• $

37,000 $

• $

37,000 $ Technology Services Public Safety Redundancy

• $

130,000 $

• $

130,000 $ Technology Services Kemp Replacement

• $

7,272 $

• $

7,272 $ Technology Services AntiVirus

• $

29,087 $

• $

29,087 $ Technology Services Public Safety

• $

172,500 $

• $

172,500 $ Traffic Operations Signs and Marketing FTE 67,697 $

• $

2,300 $ 69,997 $ Traffic Operations Traffic Signal FTE 78,859 $

• $

2,700 $ 81,559 $ Total 1,581,519 $ 3,161,858 $ 479,485 $ 5,297,862 $

SLIDE 18

FY 2019-20 Capital Program

September 10, 2019 - ID19-1882

• Total new funding including utilities is $133.25 million
• General Obligation Bonds - $14.7 million
• General Fund CO’s – $19.6 million
• General Government Revenue Funded - $.60
• Utility CO’s - $72.7 million
• Utility revenue funded - $25.65 million
• General Government Proposed Debt
• Street Projects (2014) – $13.19 million
• Parks (2014) - $1.475 million
• Vehicle Replacements - $3.14 million
• Facility Improvements - $1.5 million
• Fire Station 8 - $5 Million
• Municipal Facilities - $10 Million
• Lake Forest Dam - $3M

SLIDE 19

Special Revenue & Internal Service Funds

September 10, 2019 - ID19-1882

SLIDE 20

Projected Appropriable Fund Balances – Special Revenue Funds

Special Revenue Fund Appropriable Fund Balance 9-30-19 Revenues Expenditures Appropriable Fund Balance 9-30-20 Street Improvement Fund $ 2,348,270 $ 14,653,058 $ 15,731,116 $ 1,270,212 Tree Mitigation Fund $ 2,284,159 $ 410,000 $ 2,413,100 $ 281,059 Recreation Fund $ 265,662 $ 6,522,822 $ 6,784,595 $ 3,889 Traffic Safety Fund $ 2,287,348 $ ‐ $ 2,000,000 $ 287,348 Economic Development Fund $607,947 $150,000 $500,000 $257,947 Roadway Impact Fee Fund $ 2,610,236 $ 3,000,000 $ 5,000,000 $ 610,236 Police Confiscation Fund $ 224,320 $ ‐ $ 177,105 $ 47,215 Downtown Reinvestment Fund $ 48,513 $ ‐ $ 48,513 $ -

September 10, 2019 - ID19-1882 * Estimated 9-30-19 Appropriable Fund Balance

SLIDE 21

Projected Appropriable Fund Balances – Special Revenue Funds (Continued)

Special Revenue Fund Appropriable Fund Balance 9-30-19 Revenues Expenditures Appropriable Fund Balance 9-30-20 Parks Gas Well $ 77,906 $ 30,000 $ 70,000 $ 37,906 McKenna Trust Fund $ 92,638 $ 5,000 $ 90,000 $ 7,638 PEG Fund $ 1,283,858 $ 270,000 $ 440,000 $ 1,113,858 Parkland Dedication Fund $ 1,596,094 $ 270,000 $ 500,000 $ 1,366,094 Parkland Development Fund $ 2,859,780 $ 325,000 $ 500,000 $ 2,684,780 Donation Funds $ 216,713 $ 149,500 $ 260,401 $ 105,812

September 10, 2019 - ID19-1882

Grants Grant Amount Unspent Amount Non-Capital Grants $ 8,355,076 $ 4,764,323

* Estimated 9-30-19 Appropriable Fund Balance

SLIDE 22

Projected Appropriable Fund Balances – Internal Service Funds

Internal Service Funds Appropriable Fund Balance 9-30-19 Revenues Expenditures Appropriable Fund Balance 9-30-20 Technology Services $ 810,265 $ 17,283,209 $ 18,058,384 $ 35,091 Material Management $ 1,067,234 $ 17,678,570 $ 18,206,841 $ 538,963 Fleet Management $ 975,103 $ 10,829,427 $ 10,829,427 $ 975,103 Risk Retention $ 2,381,001 $ 3,966,487 $ 4,016,076 $ 2,331,412 Health Insurance $ 3,936,867 $ 30,562,100 $ 30,605,532 $ 3,893,435 Engineering Services $ 603,832 $ 8,573,613 $ 8,573,613 $ 603,832 Customer Service $ ‐ $ 6,220,056 $ 6,220,056 $ ‐ Facilities Management $ ‐ $ 4,964,302 $ 4,964,302 $ ‐

September 10, 2019 - ID19-1882 * Estimated 9-30-19 Appropriable Fund Balance

SLIDE 23

Enterprise Funds

September 10, 2019 - ID19-1882

SLIDE 24

Water Fund No Rate Changes

Actual Budget Estimate Proposed FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenues (x 1,000) Rate Revenue $40,596 $37,506 $38,598 $39,354 $39,986 $41,527 $43,128 $44,055 Non Rate Revenue $2,167 $2,506 $2,532 $2,109 $2,108 $2,169 $2,129 $2,131 Impact Fee Revenue - Revenue Funding $0 $0 $0 $3,839 $2,725 $1,154 $3,500 $45 Impact Fee Revenue - Debt Service $3,755 $5,700 $5,700 $2,766 $3,880 $5,451 $3,105 $6,560 Subtotal $46,519 $45,712 $46,830 $48,068 $48,700 $50,301 $51,862 $52,791 Planned Use of Reserves 4,480 3,158 2,993 TOTAL REVENUE $46,519 $50,192 $49,987 $51,062 $48,700 $50,301 $51,862 $52,791 Expenditures (x 1,000) O&M $12,301.52 $15,621 $15,400 $16,088 $16,920 $17,298 $17,817 $18,352 Revenue Funded Capital $11,745 $15,280 $14,747 $9,373 $4,857 $5,600 $6,782 $8,405 Revenue Funded Impact Fee Projects $0 $0 $0 $3,839 $2,725 $1,154 $3,500 $45 Transfers (Internal and External) $2,512 $3,391 $3,849 $5,182 $5,362 $5,526 $5,692 $5,863 ROI/Franchise Fee $3,329 $3,239 $3,329 $3,396 $3,451 $3,515 $3,621 $3,730 Debt Service $12,638 $12,663 $12,663 $12,879 $11,763 $11,310 $9,830 $10,356 Supplementals $0 $0 $0 $304 $370 $378 $387 $396 TOTAL EXPENSE $42,526 $50,192 $49,987 $51,062 $45,446 $44,782 $47,630 $47,146 Net Income $3,993 $0 $0 $0 $3,253 $5,519 $4,232 $5,645 Rate Increases 0.0% 0.0% 0.0% 0.0% 0.0% 2.0% 2.0% 0.0% RESERVE BALANCES FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Working Capital $3,402 $4,015 $3,999 $4,085 $3,636 $3,583 $3,810 $3,772 Operating Reserve $22,795 $17,452 $18,790 $15,461 $19,164 $24,735 $28,739 $34,423 Wrking Cptl + Op Reserve $26,197 $21,467 $22,789 $19,546 $22,799 $28,318 $32,550 $38,195 Number of Working Days 225 156 166 140 183 231 249 296 Development Plan Lines $500 $750 $750 $1,000 $1,000 $1,000 $1,000 $1,000 Impact Fee Capital Reserve (Revenue Funded) $0 $0 $0 $9,000 $9,000 $9,000 $9,000 $9,000 Impact Fee Reserve $14,671 $14,671 $14,871 $5,871 $5,871 $5,871 $5,871 $5,871 Debt Coverage Ratio - 1.25 2.71 2.38 2.48 2.19 2.47 2.82 3.11 3.32 Wrking Cptl/ Op Reserve Target - 120 Days (33%) $14,033 $16,563 $16,496 $16,850 $14,997 $14,778 $15,718 $15,558 Wrking Cptl/ Op Reserve Target - 180 Days (50%) $21,263 $25,096 $24,994 $25,531 $22,723 $22,391 $23,815 $23,573

September 10, 2019 - ID19-1882

SLIDE 25

Wastewater Fund No Rate Changes

ACTUAL BUDGET ESTIMATE PROPOSED FY 2018 FY 2019 FY 2019

FY 2020

FY 2021 FY 2022 FY 2023 FY 2024

Revenues (x 1,000) Rate Revenue

$29,993 $28,815 $28,814 $29,976 $30,484 $30,933 $31,346 $31,895

Non Rate Revenue

$2,648 $1,935 $2,363 $2,471 $2,321 $2,311 $2,329 $2,348

Impact Fee Revenue - Revenue Funded

$0 $0 $0 $500 $500 $151 $14 $146

Impact Fee Revenue - Debt Service

4,036 $2,000 2,000 3,770 3,770 4,119 4,256 4,124

Subtotal

$36,677 $32,750 $33,177 $36,717 $37,074 $37,514 $37,945 $38,513

Planned Use of Reserves

4,721 4,014 1,608 823 1,255

TOTAL REVENUES

$36,677 $37,471 $37,191 $38,325 $37,897 $38,769 $37,945 $38,513

Expenditures (x 1,000) O&M

$12,397 $15,134 $14,520 $16,092 $16,200 $16,554 $16,885 $17,223

Revenue Funded Capital

8,165 9,669 9,507 5,749 5,318 5,220 5,636 5,221

Transfers (Internal and External)

3,645 3,718 4,172 5,373 5,787 6,194 6,336 6,481

Impact Fee Project Revenue Funding

• 500

500 151 14 146

ROI/Franchise Fee

2,211 2,144 2,187 2,531 2,289 2,330 2,377 2,424

Debt Service

7,166 6,806 6,806 7,479 7,183 7,680 5,651 5,720

Drainage Supplementals

• 303

312 321 331 341

Wastewater Supplementals

• 298

308 317 327 336

TOTAL EXPENSES

$33,585 $37,471 $37,191 $38,325 $37,897 $38,769 $37,556 $37,892

Net Income

$3,093 $0 $0 $0 $0 $0 $389 $621

Rate Increases

0.0%

• 5.0%
• 5.0%

0.0% 0.0% 0.0% 0.0% 0.0% ACTUAL BUDGET ESTIMATE PROPOSED

RESERVE BALANCES

FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Working Capital

$2,687 $2,998 $2,975 3,066 $ $3,032 $3,101 $3,004 $3,031

Operating Reserve

$16,183 $10,951 $11,680 9,781 $ $8,793 $7,404 $7,890 $8,484

Wrkng Cptl + Op Reserve

$18,870 $13,949 $14,656 $12,847 $11,825 $10,505 $10,894 $11,516

Number of Working Days

205 136 144 122 114 99 106 111

Development Plan Lines

$335 $535 $535 $735 $935 $1,000 $1,000 $1,000

Drainage Reserve

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Impact Fee Reserve

$4,190 $4,190 $5,190 $5,190 $5,190 $5,190 $5,190 $5,190

Debt Coverage Ratio - 1.25

2.88 2.04 2.13 2.04 2.10 1.92 2.61 2.59

Wrkng Cptl / Op Reserve Target - 100 Days (28%)

$9,404 $10,492 $10,414 $10,731 $10,611 $10,855 $10,516 $10,610

Wrkng Cptl / Op Reserve Target - 140 Days (39%)

$13,098 $14,614 $14,505 $14,947 $14,780 $15,120 $14,647 $14,778

September 10, 2019 - ID19-1882

SLIDE 26

Drainage

2017-18 2018-19 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 ACT UAL BUDGET EST IMAT E PROPOSED PROJECT ED PROJECT ED PROJECT ED PROJECT ED Revenues (x 1,000) Transfers In 424 $ 317 $ 317 $ 370 $ 380 $ 391 $ 403 $ 415 $ Drainage Resources 4,676 $ 4,727 $ 4,661 $ 4,537 $ 4,640 $ 4,595 $ 4,733 $ 4,875 $ Auction Proceeds 11 $ 44 $ 44 $ 35 $ 121 $ 71 $ 73 $ 75 $ T OT AL REVENUES 5,111 $ 5,088 $ 5,022 $ 4,942 $ 5,142 $ 5,057 $ 5,209 $ 5,365 $ Expenditures (x 1,000) O&M $2,087 $2,857 $2,472 $2,961 $3,031 $3,092 $3,185 $3,280 Revenue Funded Capital $1,768 $1,093 $1,414 $651 $712 $665 $821 $846 Transfers (Internal and External) $579 $659 $659 $549 $811 $847 $872 $899 ROI/Franchise Fee

• Debt Service

$677 $477 $477 $478 $276 $132 $0 $0 Supplementals $0 $0 $0 $303 $312 $321 $331 $341 T OT AL EXPENSES $5,111 $5,088 $5,022 $4,942 $5,142 $5,057 $5,209 $5,365 Net Income $0 $0 $0 $0 $0 $0 $0 $0 Rate Increases 0% 0% 0% 0% 0% 0% 0% 0% Drainage Reserve 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ September 10, 2019 - ID19-1882

SLIDE 27

September 10, 2019 - ID19-1882

Electric Fund No Rate Increase

Actual Budget Estimate Proposed Projected Projected Projected Projected 2018 2019 2019 2020 2021 2022 2023 2024

Base Rate Revenues 92.38 $ 84.50 $ 87.76 $ 91.74 $ 93.96 $ 91.79 $ 94.11 $ 96.44 $ TCRFRevenues 5.52

• ECA Revenues

52.37 51.02 51.94 54.75 60.61 72.71 74.55 76.39 Rate Revenues 150.27 135.52 139.69 146.49 154.58 164.51 168.66 172.83 DEC Revenue

• $

36.30 $ 29.40 $ 25.07 $ 21.95 $ 19.43 $ 14.92 $ 13.39 $ Non-rate Revenues 41.43 43.81 44.02 50.68 52.89 34.63 34.43 47.21 Subtotal 191.70 215.63 213.11 222.24 229.41 218.57 218.01 233.43 Operating Reserve Usage (6.17) 28.06 (18.30) (6.99) 3.62 (0.63) (6.85) 6.59 Total Revenues 185.53 $ 243.69 $ 194.81 $ 215.25 $ 233.03 $ 217.94 $ 211.16 $ 240.02 $ Total Revenues less ECA & TCRF 127.64 $ 192.67 $ 142.87 $ 160.51 $ 172.42 $ 145.23 $ 136.62 $ 163.63 $ Expenditures Purchase Power 76.59 82.15 90.07 86.81 79.61 70.80 72.78 68.32 Transmission of Power 12.07 12.50 12.50 18.62 19.12 19.62 20.12 20.62 O&M 22.68 34.56 33.35 36.17 36.87 37.96 39.07 42.22 Cost of Service Transfers 12.47 14.19 14.43 16.84 17.34 17.85 18.37 18.91 ROI & Franchise Fee 14.55 15.07 14.96 16.06 16.54 14.92 15.20 16.59 NON DEC Debt Service 34.36 36.23 37.10 37.45 39.03 40.76 42.00 42.85 DEC Debt

• 4.45

13.55 17.28 17.29 17.29 17.31 17.32 Debt Defeasance

• 28.62
• Revenue Funded Capital

25.14 15.92 15.46

• Total Expenditures

197.86 $ 243.69 $ 231.41 $ 229.23 $ 225.80 $ 219.19 $ 224.86 $ 226.84 $ Total Expenditures less Energy 139.38 $ 193.07 $ 156.81 $ 150.26 $ 155.72 $ 148.09 $ 149.27 $ 153.55 $ Net Income (12.33) $

• $

(36.60) $ (13.97) $ 7.23 $ (1.25) $ (13.69) $ 13.18 $ Net Income w/o ECA Carryover

• $
• $
• $
• $
• $
• $
• $
• $

Operating Reserve 57.68 $ 58.27 $ 36.62 $ 29.81 $ 33.71 $ 33.63 $ 26.32 $ 32.75 $ Working Capital 16.26 20.03 19.02 18.84 18.56 18.02 18.48 18.64 73.94 $ 78.30 $ 55.64 $ 48.66 $ 52.27 $ 51.65 $ 44.80 $ 51.39 $

SLIDE 28

September 10, 2019 - ID19-1882

Actual Budget Estimate FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenues (x 1,000) Rate Revenue $32,404 $32,595 $32,720 $33,679 $34,687 $35,799 $36,896 $38,288 Non Rate Revenue $2,388 $1,929 $1,368 $1,712 $2,194 $2,038 $2,121 $2,120 Subtotal $34,792 $34,523 $34,088 $35,391 $36,881 $37,837 $39,017 $40,408 Planned Use of Reserves 181 349 553 3,059 78 TOTAL REVENUE $34,973 $34,872 $34,641 $38,450 $36,881 $37,837 $39,095 $40,408 Expenditures (x 1,000) O&M $18,471 $20,164 $20,236 $21,220 $21,705 $22,155 $22,715 $23,292 Revenue Funded Capital $0 $0 $0 $0 $0 $0 $0 $0 Vehicle Replacement Fund Transfers $1,604 $873 $858 $2,001 $1,590 $1,988 $3,300 $3,366 Transfers (Internal and External) $2,475 $1,976 $2,256 $3,081 $3,167 $3,255 $3,314 $3,376 Franchise Fee $1,738 $1,694 $1,699 $1,756 $1,797 $1,844 $1,902 $1,972 Closure/Post Closure $1,143 $1,169 $596 $610 $624 $639 $651 $664 Debt Service $9,542 $8,995 $8,995 $8,449 $7,302 $7,292 $6,547 $6,242 Supplementals $0 $0 $0 $1,333 $695 $665 $665 $665 TOTAL EXPENSE $34,973 $34,872 $34,641 $38,450 $36,881 $37,837 $39,095 $39,577 Net Income $0 $0 $0 $0 $0 $0 $0 $832 RESERVE BALANCES FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Working Capital $2,798 $2,790 $2,771 $3,076 $2,950 $3,027 $3,128 $3,166 Rental Fund $1,267 $1,267 $1,267 $0 $0 $0 $0 $0 Operating Fund Reserve $3,613 $3,273 $3,086 $3,970 $4,096 $4,020 $3,841 $4,634 Total Operating Reserve $7,678 $7,329 $7,124 $7,046 $7,047 $7,047 $6,968 $7,800 Vehicle Replacement Fund Transfers $1,604 $873 $858 $2,001 $1,590 $1,988 $3,300 $3,366 Vehicle Purchases $0 ($100) ($40) ($2,079) ($202) ($1,227) ($3,420) ($3,334) Operating Fund Transfer $0 $0 $0 ($2,981) $0 $0 $0 $0 Total Vehicle Replacement Reserve $3,241 $4,014 $4,059 $1,000 $2,388 $3,149 $3,029 $3,062 Number of Working Days 80 77 75 67 70 68 65 72 Closure/Post Closure $9,897 $11,066 $10,493 $11,103 $11,727 $12,365 $13,016 $13,680 Debt Coverage Ratio - 1.25 1.66 1.26 1.24 1.57 1.43 1.71 1.80 2.11 Wrking Cptl/ Op Reserve Target - 51 Days (14%) $4,896 $4,882 $4,850 $5,383 $5,163 $5,297 $5,473 $5,541 Wrking Cptl/ Op Reserve Target - 65 Days (18%) $6,295 $6,277 $6,235 $6,921 $6,638 $6,811 $7,037 $7,124

Solid Waste Fund No Rate Increase

SLIDE 29

Utility Supplemental Funding Requests - Funded in FY 2019-20 Proposed Budget

September 10, 2019 - ID19-1882

Water Fund Program Title FTE's Personnel Services On-Going Cost One-Time Cost Vehicles Requested Expense Amount

Water Metering Metering Maintenance 1.00 63,163 $ 45,000 $ 108,163 $ Water Metering Administrative Assistant I 0.50 38,234 $ 38,234 $ Water Production Operator I 1.00 24,083 $ 24,083 $ Utility Administration Administrative Assistant I 1.00 51,221 $ 51,221 $ Utility Administration Intern 0.50 15,230 $ 15,230 $ Water Distribution Heavy Equipment Operator I 1.00 88,240 $ 88,240 $ Water Distribution Hydrant Maintenance Crew Truck 75,700 $ 75,700 $ Total 5.00 280,171 $

• $
• $

120,700 $ 400,871 $

SLIDE 30

Utility Supplemental Funding Requests - Funded in FY 2019-20 Proposed Budget (cont.)

September 10, 2019 - ID19-1882

Wastewater Fund Program Title FTE's Personnel Services On-Going Cost One-Time Cost Vehicles Requested Expense Amount

Wastewater Collections Heavy Equipment Operator II 2.00 141,374 $ 141,374 $ Wastewater Collections Heavy Equipment Operator II 1.00 76,408 $ 76,408 $ Wastewater Collections Flushing Truck Crew Leader 1.00 80,066 $ 80,066 $ Drainage Operation and Maintenance Crew 4.00 287,899 $ 75,000 $ 362,899 $ Total 8.00 585,747 $

• $
• $

75,000 $ 660,747 $

SLIDE 31

Utility Supplemental Funding Requests - Funded in FY 2019-20 Proposed Budget (cont.)

September 10, 2019 - ID19-1882

Solid Waste Fund Program Title FTE's Personnel Services On-Going Cost One-Time Cost Vehicles Requested Expense Amount

Solid Waste Site Operations Scalehouse/Asset Mgmt Software 50,000 $ 400,000 $ 450,000 $ Solid Waste Landfill Engineering Services 150,000 $ 150,000 $ Solid Waste Commercial Route-Consulting Services 30,000 $ 75,000 $ 105,000 $ Solid Waste Commercial Roll Off 23,000 $ 200,000 $ 223,000 $ Solid Waste Landfill Waste Handler Dozer 28,000 $ 1,160,000 $ 1,188,000 $ Solid Waste Residential Mini Rear Loader 14,500 $ 140,000 $ 154,500 $ Solid Waste Residential Mini Rear Loader 14,500 $ 140,000 $ 154,500 $ Solid Waste Landfill Heavy Equipment Operator II 1.00 77,215 $ 77,215 $ Solid Waste Landfill Communication Radios 33,400 $ 129,900 $ 163,300 $ Solid Waste Residential North Lakes Recycling Drop-off 10,000 $ 410,439 $ 420,439 $ Total 1.00 77,215 $ 353,400 $ 1,015,339 $ 1,640,000 $ 3,085,954 $

SLIDE 32

Next Steps

• Budget and Tax Rate Adoption – September 17th

September 10, 2019 - ID19-1882

SLIDE 33

Tax Increment Reinvestment Zones

• TIRZ #1 (Downtown) established in 2010
• Base value of $79,356,854 and 2019 value of $210,529,139
• Estimated revenue for FY 2019-20 of $750,706
• Based on 95% of increment above base value or $124,613,671
• Incentive payment budgeted at $76,000 (Year 5 or 5)
• Future grants budgeted at $74,000
• New Residential Value $1.6 million, New Commercial Value $827,000
• TIRZ #2 (Westpark) established in 2012
• Base value of $119,458 and 2019 value of $110,654,075
• Estimated revenue for FY 2019-20 of $266,356
• Based on 40% of increment above base value or $44,213,847
• Also includes $99,236 in projected contribution from Denton County
• Includes $206,851 incentive payment to WinCo Foods
• No New Residential Value, New Commercial Value $32.9 million

September 10, 2019 - ID19-1882

SLIDE 34

Downtown TIRZ Budget

FY 2018-19 Expenses

• Incentive payment budgeted at $76,000 (Year 4 or 5)
• $100,000 to continue the Downtown Reimbursement Grant Program
• Expenditure not necessary as Downtown Reinvestment Funds has reserves to cover the

FY 2018-19 program.

• Reimbursement to General Fund for Downtown MEWS Streets Study - $80,000
• MEWS Study Presented to the Board on January 23, 2019

September 10, 2019 - ID19-1882

FY 2018-19 Budget FY 2018-19 Estimate FY 2019-20 Proposed

Beginning Fund Balance 123,665 $ 123,665 $ 514,776 $ Revenues 547,111 $ 547,111 $ 757,706 $ Expenses 256,000 $ 156,000 $ 150,000 $ Ending Fund Balance 414,776 $ 514,776 $ 1,122,482 $

SLIDE 35

Downtown TIRZ FY2019-20 Budget

• Revenues
• Base value of $79,356,854 and 2019 value of $210,529,139
• Estimated revenue for FY 2019-20 of $750,706
• Based on 95% of increment above base value or $83,261,535
• Expenses
• Incentive payment budgeted at $76,000 (Year 5 or 5)
• Downtown Reimbursement Grant Program budgeted at $74,000
• Downtown Reinvestment Fund will contribute final $48,513 to the grant

program in FY 2019-20

• Potential Additional Expense
• City Council asked the TIRZ Board to consider downtown power washing

expenses from the TIRZ fund

• Request is $37,000 from TIRZ funding annually to offset HOT funds

redirected to other community efforts.

September 10, 2019 - ID19-1882

SLIDE 36

TIRZ #1 (Downtown) Appraised Values

Tax Year 2010* 2011 2012 2013 2014 2015 2016 2017 2018 2019 Final Value ($Millions) $79.40 $81.70 $89.60 $96.30 $114.90 $118.40 $136.00 $142.10 $167.00 $210.53 Value Change ($Millions)

• $2.30

$7.90 $6.70 $18.60 $3.60 $17.60 $6.00 $24.90 $43.53

TIRZ Revenue

• $6,720

$94,381 $145,506 $258,053 $330,030 $458,739 $496,856 $516,619 $750,706

$6.10 $1.50 20.68% $2.40 New Value (Millions) Percent Change 14.80% 4.40% 17.50%

• Not

Available $4.00 $3.70 $2.70 $4.80 $0.30

• 2.90%

9.70% 7.50% 19.30% 3.10%

September 10, 2019 - ID19-1882

SLIDE 37

Living Wage Adjustment

September 10, 2019 - ID19-1882

Employment Type Count Difference at $15/hr Difference at $20/hr Full Time 214 $14,099 $1,106,606 Part Time 31 $7,645 $204,242 3/4 Time 1 $0 $3,294 Seasonal 401 $610,466 $1,511,357 Temporary 3 $0 $10,507 Grand Total 650 $632,210 $2,836,006

SLIDE 38

Supplemental Funding Requests - Not Funded in FY 2019-20 Proposed Budget

September 10, 2019 - ID19-1882 Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #5

Council Initiative 5 Closed Captioning 21,000 $ 21,000 $ 21,000 $ Council Initiative 5 Community Market Funding 110,000 $ 110,000 $ 110,000 $ Council Initiative 5 Air Quality Sensors TBD TBD TBD Council Initiative 5 Paid Parental Leave 284,280 $ 284,280 $ 284,280 $ Council Initiative 5 Non-Profit Fee Grant Program 100,000 $ 100,000 $ 100,000 $ Council Initiative 5 Veteran's Village Park Site (Parks) 10,000 $ 72,650 $ 82,650 $ 82,650 $ Council Initiative 5 Living Wage Impact - $15.00/hr (Seasonal, Temporary) 610,466 $ 610,466 $ 610,466 $ Total

• 610,466

$ 415,280 $ 182,650 $ 1,208,396 $

• $

1,208,396 $ Tier 4 - 5 Totals 1.00 678,163 $ 653,930 $ 317,572 $ 1,649,665 $

• $

2,443,206 $

SLIDE 39

Tourist and Convention Fund

September 10, 2019 - ID19-1882

PY 2018 Actuals PY 2019 Estimate PY 2020 Requests PY 2020 Recommendation Beginning Fund Balance 2,255,027 $ 2,449,795 $ 2,086,095 $ 2,086,095 $ Revenues 2,762,062 $ 3,255,872 $ 3,375,164 $ 3,375,164 $ Total Resources 5,017,089 $ 5,705,667 $ 5,461,259 $ 5,461,259 $ Total Expenditures 2,567,294 $ 3,619,572 $ 4,385,009 $ 3,416,493 $ Ending Fund Balance 2,449,795 $ 2,086,095 $ 1,076,250 $ 2,044,767 $ 15% of Recurring Expenditures 385,094 $ 542,936 $ 606,199 $ 512,474 $

SLIDE 40

Monthly Rate Impact – Average Residential Customer

FY 2018-19 FY 2019-20 Increase/ (Decrease) % Change Electric (1,200 kWh/month) $124.80 $124.80 $0.00 0.00% Water $54.18 $54.18 $0.00 0.00% (9,200 gallons/month) Wastewater $31.15 $31.15 $0.00 0.00% (5,400 gallons/month) SW – Standard Cart $24.51 $24.51 $0.00 0.00% (standard sized cart) Total $234.64 $234.64 $0.00 0.00%

September 10, 2019 - ID19-1882

SLIDE 41

September 10, 2019 - ID19-1882

Annual Residential Tax Rate and Utility Impact

Tax Impact Fiscal Year 2018 2019 2020 - Proposed Tax Rate $0.63786* $0.62048 $0.59045* Cents Over Effective $0.00 $0.01 $0.00 Average Taxable Value $214,136 $233,165 $248,909 Average Tax Bill $1,366 $1,447 $1,470 Utility Impact Water $648 $648 $648 Wastewater $396 $372 $372 Electric $1,548 $1,500 $1,500 Solid Waste $336 $300 $300 Average Utility Bill $2,928 $2,820 $2,820

Total Average Bill $4,294 $4,267 $4,290

* Effective Rate

SLIDE 42

Capital Projects Expenditure History

September 10, 2019 - ID19-1882

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000

SLIDE 43

Airport Fund

• Budget includes Airfield pavement - $250,000

September 10, 2019 - ID19-1882

Appropriable Fund Balance 9-30-19 Revenues Expenditures Appropriable Fund Balance 9-30-20 $2,814,692 $1,496,203 $1,544,652 $2,766,243

* Estimated 9-30-19 Appropriable Fund Balance

SLIDE 44

2005 Bond Program

September 10, 2019 - ID19-1882

SLIDE 45

2012 Bond Program

September 10, 2019 - ID19-1882

SLIDE 46

2014 Bond Program

September 10, 2019 - ID19-1882

SLIDE 47

Cost Containment Strategies

September 10, 2019 - ID19-1882

Public Safety

• Partnership program with Midwest Veterinary Supply
• Deployed field microchip scanners
• Volunteer investment and support
• Hired new personnel to reduce over-time
• Utilizing free, discounted, local and on-line training opportunities
• Safegrid implementation for crime analysts
• Implemented in-house small tool repair
• Implemented new patient care reporting technology

Neighborhood Services

• Increased the number of onsite training programs to reduce travel expenditures
• Focused on providing single point of service for customers
• Utilization of third-party inspections for gas well inspections
• Coordinating city inspections with follow-up inspections to resolve third-party findings
• Eliminated duplicated athletics programming and allowed the reallocation of resources to other

needed areas

• Internal park designs and master plan development
• In-house construction (i.e. North Lakes Dog Park)
• Bundling of construction projects for economy of scale

SLIDE 48

Cost Containment Strategies (cont.)

September 10, 2019 - ID19-1882

Transportation

• Bundling of street reconstruction projects
• Consolidation of traffic infrastructure
• Refine planning, tracking and communication for project management
• Streamline cross departmental processes involving Engineering, Utilities and Streets
• Use of in-house crews
• Use department staff maintenance for traffic signals and roadway markings

Administrative & Community Services

• Consolidation of DME and General Government equipment on one platform, reducing additional infrastructure cost
• Network design with internal staff, saving 250 contract hours
• Fire RMS implementation
• SCADA network refresh
• Increased use of electronic files
• Develop in-house abilities to reduce need for, and cost of, outside counsel
• Secured vehicle procurement contracts that include, parts, labor, and body shop discounts
• Maximized the use of extended warranties and service contracts on newly purchased equipment
• Implementation of new facility maintenance contracts to create efficiencies
• Vehicle utilization study

SLIDE 49

Internal Service Fund Supplemental Funding Requests - Funded in FY 2019-20 Proposed Budget

September 10, 2019 - ID19-1882

Department Program Title FTEs General Fund Utility Funds Internal Service Funds Project Funded Requested Expense Amount

Procurement & Compliance Contract Management Software

• $ 12,000

$ 9,000 $ 9,000 $ - $ 30,000 Procurement & Compliance Electronic Bidding Software

• $ 3,200

$ 2,880 $ 1,920 $ - $ 8,000 Procurement & Compliance Part Time Purchasing Assistant 1.00 $ 13,440 $ 12,096 $ 8,064 $ - $ 33,601 Procurement & Compliance Certification Program

• $ 3,600

$ 3,240 $ 2,160 $ - $ 9,000 Engineering Project Manager 1.00 $ - $ - $ - $ 114,501 $ 114,501 Engineering Traffic Engineer 1.00 $ 144,451 $ 144,451 Customer Service Customer Service Representative 1.50 $ - $ 80,976 $ - $ - $ 80,976 Customer Service Quality Control Specialist 1.00 $ 14,000 $ 46,720 $ - $ - $ 60,720 Customer Service Credit Card Fees

• $ 8,087

$ 167,713 $ - $ - $ 175,800 Recreation Fund North Lakes Driving Range Ball Machine $ 15,000 $ - $ - $ - $ 15,000 Recreation Fund Leisure Services Capital Maintenance $ 150,000 $ - $ - $ - $ 150,000 Technology Services Public Safety – Identix LiveScan Upgrade

• $ 37,000

$ - $ - $ - $ 37,000 Technology Services Public Safety Redundancy

• $ 130,000

$ - $ - $ - $ 130,000 Technology Services Kemp Replacement

• $ 7,272

$ 6,519 $ 1,210 $ - $ 15,000 Technology Services AntiVirus

• $ 29,087

$ 26,074 $ 4,839 $ - $ 60,000 Technology Services Firewall Protection $ 72,717 $ 65,185 $ 12,098 $ - $ 150,000 Tech Services Public Safety – Axon Sidearm System

• $ 46,000

$ - $ - $ - $ 46,000 Tech Services Public Safety – Axon Interview Room

• $ 39,000

$ - $ - $ - $ 39,000 Tech Services Public Safety – Telestaff Professional Services

• $ 12,500

$ - $ - $ - $ 12,500 Tech Services Public Safety – Laserfiche Scanning

• $ 75,000

$ - $ - $ - $ 75,000 Total 5.50 $ 667,902 $ 420,404 $ 39,291 $ 258,952 $ 1,386,549

SLIDE 50

September 10, 2019 - ID19-1882

Grants and Other Funding Expenses

Department FY 2016-17 FY 2017-18 FY 2018-19*

Police $444,027 $749,974 $482,746 Fire 2,248,714 1,429,999 735,358 Community Development 1,114,651 1,746,719 912,293 Transportation 6,681,892 20,860,881 11,339,499 Parks and Leisure 1,106,931 354,360

• Other

328,945 1,939

• Total

$11,925,160 $25,143,872 $13,469,896

* Year to date

SLIDE 51

Total Assessed Value

Tax Year

* Includes Frozen Values 11.3% Increase in Non-Frozen Values

Assessed Value History

3.31% 0.58%

• 1.55%

2.93% 4.59% 3.81% 11.48% 8.54% 8.23% 13.32% 9.53% 11.52% $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000

• 2%

0% 2% 4% 6% 8% 10% 12% 14% 16% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*

Property Value Growth (Annual Percentage Change)

September 10, 2019 - ID19-1882

SLIDE 52

Property Tax Rate History

September 10, 2019 - ID19-1882

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operations Rate $0.47088 $0.47088 $0.47088 $0.47480 $0.48119 $0.47456 $0.46674 $0.43031 $0.40543 $0.38536 Debt Rate $0.21887 $0.21887 $0.21887 $0.21495 $0.20856 $0.21519 $0.21660 $0.20755 $0.21505 $0.20509 Total Rate $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68334 $0.63786 $0.62048 $0.59045 $0.00000 $0.10000 $0.20000 $0.30000 $0.40000 $0.50000 $0.60000 $0.70000 $0.80000 TOTAL TAX RATE

SLIDE 53

Supplemental Funding Requests - Tier 4 Funded Unfunded

September 10, 2019 - ID19-1882

Tier #4 - Unfunded Tier Program Title FTE's Requested Expense Amount 2019-20 Revenue/Cost Net Cost

Engineering, Fleet, Technology Services 4 Internal Service Fund Request 276272 276,272.00 Planning 4 Walkability Study 65000 65,000.00 Public Affairs 4 Public Participation & Engagement Platform 30000 30,000.00 Traffic Operations 4 Signs and Markings FTEs 1.00 69996.5 69,996.50 Total 1.00 441,269 $

• $

441,269 $

SLIDE 54

Supplemental Funding Funded in FY 2019-20

September 10, 2019 - ID19-1882 Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #1

Council Initiative 1 Integrated Pest Management - Topdressing (Parks) 461,100 $ 461,100 $ 461,100 $ Council Initiative 1 Block Party - Street Closures (Parks) 2,400 $ 2,400 $ 2,400 $ Council Initiative 1 Creation of Co-Sponsorship Special Event Fund (Parks) 280,000 $ 280,000 $ 280,000 $ Council Initiative 1 Barrier Funds - Diversion 40,000 $ 40,000 $ 40,000 $ Council Initiative 1 Housing/Rapid Re-Housing 100,000 $ 100,000 $ 100,000 $ Council Initiative 1 Expand & Enhance MKOC Shelter (7 nights/week) 400,000 $ 80,000 $ 480,000 $ 480,000 $ Council Initiative 1 Street Outreach Team Expansion 64,600 $ 64,600 $ 64,600 $ Total 1,348,100 $ 80,000 $ 1,428,100 $

• $

1,428,100 $

SLIDE 55

Supplemental Funding Funded in FY 2019-20 (Continued)

September 10, 2019 - ID19-1882

Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #2

Police 2 Sworn Officers 4.00 441,949 11,772 $ 41,068 $ 494,789 $ 494,789 $ Police 2 Meet and Cofer 510,000 $ 510,000 $ 510,000 $ Public Affairs 2 Construction Guide 40,000 $ 40,000 $ 40,000 $ Animal Services 2 Two Temporary Kennel Techs 0.50 17,498 $ 17,498 $ 17,498 $ Fire 2 Fire Operations Professional Development Program 18,986 $ 10,000 $ 28,986 $ 28,986 $ Police 2 Civilian Jailers 2.00 131,429 $ 2,400 $ 12,616 $ 146,445 $ 146,445 $ Total 6.50 609,862 $ 574,172 $ 53,684 $ 1,237,718 $

• $

1,237,718 $

SLIDE 56

Supplemental Funding Funded in FY 2019-20 (Continued)

September 10, 2019 - ID19-1882

Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #3 Public Safety Communications 3 Additional Telecommunications Employees - 3 FTEs 3.00 294,517 $ 294,517 $ 294,517 $ Public Safety Communications 3 Dispatcher Overtime

• 105,060

$ 105,060 $ 105,060 $ Police 3 Public Safety Officers 3.00 201,884 $ 11,772 $ 30,801 $ 244,457 $ 244,457 $ Technology Services 3 Public Safety – Identix LiveScan Upgrade 37,000 $ 37,000 $ 37,000 $ Technology Services 3 Public Safety Redundancy 130,000 $ 130,000 $ 130,000 $ Technology Services 3 Kemp Replacement 7,272 $ 7,272 $ 7,272 $ Technology Services 3 AntiVirus 29,087 $

• $

29,087 $ 29,087 $ Recreation Fund 3 North Lakes Driving Range Ball Machine 15,000 $ 15,000 $ 15,000 $ Council Initiative 3 Special Counsel - Internal Audit 25,000 $ 25,000 $ 25,000 $ Parks 3 New and Existing Parks Maintenance 2.70 508,105 $ 508,105 $ 508,105 $ Library 3 Eliminate Overdue Fines

• $

75,000 $ 75,000 $ Technology Services 3 Public Safety 172,500 $ 172,500 $ 172,500 $ Finance 3 Accounts Payable Automation Software 200,000 $ 200,000 $ (100,000) $ 100,000 $ Total 8.70 601,461 $ 920,736 $ 245,801 $ 1,767,998 $ (25,000) $ 1,742,998 $

SLIDE 57

Supplemental Funding Tier 4 Funded

September 10, 2019 - ID19-1882 Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #4 - Funded

Public Affairs 4 Our Daily Bread Security 15,000 $ 15,000 $ 15,000 $ Planning 4 Permitting & Planning Software Maintenance 300,000 $ 300,000 $ 300,000 $ Planning 4 Comprehensive Plan Update 95,000 $ 95,000 $ 95,000 $ Council Initiative 4 Living Wage Impact - $15.00/hr (Full Time, Part Time) 21,744 $ 21,744 $ 21,744 $ Animal Services 4 Volunteer Coordinator 1.00 77,896 $ 77,896 $ 77,896 $ Animal Services 4 Additional Animal Control Officers 2.00 132,346 $ 132,346 $ 132,346 $ Traffic Operations 4 Signs and Marketing FTE 1.00 67,697 $ 2,300 $ 69,997 $ 69,997 $ Traffic Operations 4 Traffic Signal FTE 1.00 78,859 $ 2,700 $ 81,559 $ 81,559 $ Total 5 $ 2,380,625 $ 2,002,083 $ 1,687,083 $ 1,587,083 $ 793,542 $ 793,542 $