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Home My WebLink AboutItem 01 - FY 2004-2005 BudgetMEMO TO: FROM: MEETING DATE: SUBJECT: RECOMMENDATION: mo HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ROGER NELSON, CITY MANAGER SEPTEMBER 7, 2004 PUBLIC HEARING ON THE FY 2004-2005 BUDGET That the City Council conduct a public hearing on the proposed FY2004-2005 Annual Budget. The budget, as amended to include the service levels from the City Council workshop held on August 31, 2004 contains fund expenditures in the following amounts: General Fund Utility Fund Debt Service Fund Convention & Visitors Bureau Fund Lake Enterprise Fund General Government Capital Project Fund Permanent Street Maintenance Fund Permanent Capital Maintenance Fund — General Utility & Lake Enterprise Capital Projects Fund Utility Permanent Capital Maintenance Fund Stormwater Drainage Utility Fund BACKGROUND: $41,736,798 17,294,530 11,172,651 7,842,906 2,714,908 14,895,618 1,130,000 535,300 4,424,541 105,762 1,137,726 In compliance with the "truth -in -taxation" laws the City of Grapevine published its "effective" and "rollback" tax rates in the Fort Worth Star Telegram on August 13, 2004. Pursuant to the Charter of the City of Grapevine, Texas, Section 907, a public hearing on the annual budget shall be held to allow all interested persons to be heard for or against any item or the amount of any item therein contained. The public hearing shall commence on September 7, 2004 and final action on the budget shall be taken at a special meeting on September 14, 2004. The City Council must adopt the annual budget no later than fifteen days prior to the beginning of the fiscal year. WAG/cjc H:AGMPHBGT9-7-04 September 1, 2004 (2:47PM) FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE GENERAL FUND Revenues 2001-02 2002-03 2003-04 2004-05 Percent Actual Actual Actual Budget Proposed Change Ad Valorem Taxes 6,474,002 7,152,013 6,448,799 7,528,170 16.74% Sales & Use Taxes 15,467,069 16,618,615 18,444,566 1,907,000 7.93% Franchise Fees 5,224,508 4,944,789 5,169,000 x,032,000; -2.65% Licenses & Permits 1,506,677 1,446,699 1,228,349;,061,693' 5,342,541 -13.57% Charges for Services 3,170,599 4,031,664 3,856,599" x;295,287' -14.55% Intergovernmental Revenue 217,614 129,428 165,829 173,543 4.65% Fines and Forfeitures 2,103,611 2,102,796 2,178,000 , 2,240;780 2.88% Miscellaneous Revenue 2,831,688 3,043,654 2,601,675, ".. 2,839,11 9.15% Total 36,995,768 39,469,659 40,092,817. 42'078,084 4.95% Expenditures 2001-02 2002-03 2003-04 2004''-05i Percent Actual Actual Actual Budget , " Yroposed Change Personnel 25,196,612 25,345,337 26,330,900 2898,322 2.15% Supplies 2,312,506 2,368,813 2,069,875' 2,188,132 5.71% Maintenance 614,522 901,322 934,177 856,682 -8.30% Services 4,694,990 5,055,606 4,853,797 5,342,541 10.07% Operating Transfers Out 110,000 37,866 0 75,000 NA Insurance 4,259,773 4,735,943 4,455,063 4,677,871 i 5.00% Permanent Capital Maintenance 111,450 170,900 170,900 535,00 213.22% Permanent Street Maintenance 878,000 860,000 860,000 1,130,4100 31.40% Capital Outlay 66,545 70,549 25,750 32,950 27.96% Total 38,244,399 39,546,336 39,700,463 °:41;736;198' 5.13% Adjusted Ending Fund Balance 6,131,875 6,104,579 6,496,933 7,138; Fund Balance Requirement * 6,286,751 6,500,768 6,526,103 ` 6,8600, Balance over / (under) Requirement (154,875) (396,189) (29,171) 277: * Fund balance requirement is 16.4% of total budgeted expenditures (60 days of operation). The FY 2004-05 proposed Adjusted Ending Fund Balance represents 62 days of operation. 2001-02 2002-03 2003-04 Fund Balance Summary Actual Actual Budget Beginning Fund Balance 7,658,665 6,131,875 6,104,579 Contribution to Fund Balance (1,526,790) (27,297) 392,354 CVB Loan Repayment - - - Adjusted Ending Fund Balance 6,131,875 6,104,579 6,496,933 7,138; Fund Balance Requirement * 6,286,751 6,500,768 6,526,103 ` 6,8600, Balance over / (under) Requirement (154,875) (396,189) (29,171) 277: * Fund balance requirement is 16.4% of total budgeted expenditures (60 days of operation). The FY 2004-05 proposed Adjusted Ending Fund Balance represents 62 days of operation. FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE UTILITY ENTERPRISE FUND Revenues 2001-02 2002-03 2003-04: 2004-05 Percent Actual Actual Actual Budget Proposed' Change Miscellaneous Income 163,841 111,071 75,000 75,000 0.00% Water Sales 9,311,906 9,536,782 10,114,993 10;695,617 ; 5.74% Raw Water Sales 120,526 120,062 165,000 167,092 1.27% Wastewater Sales 5,469,997 5,469,755 5,779,397 6197,651 7.24% Water Tap Fees 134,831 51,725 110,000 110,000 0.00% Wastewater Tap Fees 17,565 18,690 15,500 15,500 0.00% Utility Inspection Fee 64,021 116,583 60,000 70,000 16.67% Reconnect & Transfer Charges 265,873 287,510 262,000 270,000 ` 3.05% Interest Income 213,198 281,733 200,000'250,000 25.00% Total 15,763,227 15,993,911 16,781,890 6.37% Expenditures 2001-02 2002-03 2003-04 2004-05 Percent Actual Actual Actual Budget Proposed' Change Personnel 2,014,060 2,008,406 2,155,950 2,079,786 -3.53% Supplies 401,719 531,058 518,675 528,200 1.84% Maintenance 252,538 305,389 321,551 322,051 0.16% Services 6,560,547 6,094,373 7,257,709 7,902,631 8.89% Utility Bond Payments 4,129,772 4,101,874 4,830,250 4,828,285 -0.04% Permanent Capital Maint. 435,661 1,015,068 500,000 105,762 I -78.85% Capital Outlay 0 0 114,000 189,000 65.79% Transfers 1,143,190 1,193,674 1,258,642 1,338,815 6.37% Total 14,937,487 15,249,844 16,956,777 17,294,530 1.99% Fund Balance Summary 2001-02 2002-03 2003-04 2004-05 Actual Actual Budget Proposed Beginning Working Capital 7,782,794 8,542,572 8,941,419 1,941,419 Retained Earnings 825,740 744,067 (174,887) 556,330 Extraordinary Gain / (Loss) (65,962) (345,220) 0 0 Ending Working Capital 8,542,572 8,941,419 8,766,532 9,497,749 Working Capital Requirement 2,455,477 2,506,824 2,787,415 2,842,936 Balance over Requirement 6,087,094 6,434,595 5,979,117 6,654,813 Working Capital balance requirement is 16.4% of total budgeted expenses or 60 days of operation. The FY 2004-05 proposed ending working capital balance represents 200 days of operation. FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE DEBT SERVICE FUND Revenues 2001-02 2002-03 2003-04! 2004-05 Percent Actual Actual Budget Proposed Change Property Taxes - Current 10,138,845 9,408,755 10,729,155 ` 9,946;675 -7.29% Property Taxes - Delinquent 87,353 70,610 65,000 65,000 0.00% Transfers from Other Funds 962,959 1,530,236 1,046,741 876,036 -16.31% Palace Equity Contribution 343,214 349,378 347,290 349,940 0.76% Interest Income 110,353 85,130 65,000'; 65 000 0.00% Other Financing Resources 3,796,473 11,294,451 0 I? 0.00% Total 15,439,197 22,738,560 12,253,18611,302,651'.' -7,76% Expenditures 2001-02 2002-03 2003-04 2004-05'. Percent Actual Actual Budget, ; 'Proposed= Change G.O. Bond Interest Pymts. 3,954,334 3,943,839 3,516,746' 3,74,442: -6.89% G.O. Bond Principal Pymts. 4,465,000 4,830,000 5,490,000 ' 5346,000,; -6.38% C.O. Interest Pymnts. 886,457 733,565 685,986 592,542: -13.62% C.O. Principal Pymts. 1,540,000 1,980,012 2,141,364 1,$12,727' -15.35% Palace Arts Center Pymts. 320,616 349,378 347,290 34,940 0.76% Other Financing Uses 3,740,000 10,745,000 0 , 0 0.00% Fiscal Agent & Bond Fees 97,452 467,164 6,800 3,000'' -55.88% Total 15,003,858 23,048,958 12,188,186 1.1472,651' -8.33% +Ca�trib141 t Fund Balax c� eve �N �. nue O Eir;Expe ditu es) ,130;000 Fund Balance Summary 2001-02 2002-03 2003-04 ; 2004-05' Actual Actual Budget <Prop'osed Beginning Fund Balance 1,769,652 2,204,990 1,446,264511,264 Fund Balance Contribution 435,338 (758,726) 65,000 ",.130,000 Ending Fund Balance 2,204,990 1,446,264 1,511,2641,M'I1264 Fund Balance Requirement 2,251,674 1,623,270 1,774,382 1°636,070 Balance Over Requirement (46,684) (177,007) (263,118) 6,194 * Requirement is 16.4% of total current budgeted net debt service expenditures or 60 days of operation. The FY 2004-05 approved ending fund balance represents 60 days of operation. FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE CONVENTION & VISITORS BUREAU FUND Revenues 2001-02 2002-03 2003-04 2004-05 Percent Actual Actual Budget . Proposed Change Hotel / Motel Tax 3,365,445 3,380,659 4,524,904 6,770,45.3 49.63% Convention Center Rental 317,149 385,954 336,620 39(1,{100+ 15.86% Interest Income 9,069 2,885 0 0 0.00% Miscellaneous Income 4,115 7,463 15,400 55,000! 257.14% Contributions - Train 0 0 50,000 3,000 -94.00% Sales & Merchandise 160,208 159,584 159,936 153,000' -4.34% Train Operations 664,696 612,956 1,147,520 773,009+ -32.64% Total 4,520,681 4,949,378 6,234,380 81144,4621 30.64% Expenditures 2001-02 2002-03 2003-04 2004-05+ Percent Actual Actual Budget,'','Proposed > Change Personnel 1,959,219 2,011,751 2,518,4712;760,087 9.59% Supplies 1,180,517 1,136,965 1,215,524 1;992,703 63.94% Maintenance 102,329 115,164 74,497.' )05,331 41.39% Services 1,312,561 1,378,479 1,209,239 1,828,264 51.19% Transfers 737,477 1,009,914 1,107,763 1,121,658 1.25% Capital Outlay 10,000 18,500 4,400 34,863' 692.34% Total 5,302,103 5,670,772 6,149,894 7,842,906 27.53% tontriliution to Furi+ Bain tce ,(1 hues ower E p;enditures) _ 301,556 Fund Balance Summary 2001-02 2002-03 2003-04 2004-05: Actual Actual Budget Proposed' Beginning Fund Balance 327,643 (117,058) (877,481) (792,995) Contribution to Fund Balance (781,422) (721,394) 84,486 $01,556 General Fund Loan / (Repayment) 350,000 0 0 (300,000)'' Net Proceeds from Festival (13,279) (39,029) 0 0 Ending Fund Balance (117,058) (877,481) (792,995) (791;439) Fund Balance Requirement * 871,579 932,182 1,010,941 1,?89,245 Balance over Requirement (988,637) (1,809,663) (1,803,937) (21080,684); * Fund balance requirement is 16.4% of total budgeted expenses or 60 days of operation. FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE LAKE ENTERPRISE FUND Revenues 2001-02 2002-03 2003-04 2004-05: Percent Actual Actual Actual Budget , ,Proposed- Change Cart Rentals 584,420 575,427 750,200'750,200 13172,054 0.00% Tournament Fees 5,150 4,150 6,600 ,;.6,600 0.00% Driving Range 7,931 8,720 10,000 10,000 0.00% Golf Pro Shop % of Sales 14,616 18,612 22,000 221000 0.00% Golf Course Green Fees 1,343,887 1,337,989 1,686,630 ' 1,686,630 0.00% Restaurant % of Sales 36,350 34,017 50,000 ` : 50,000': 0.00% Lesson Income 21,925 20,428 11,000;25,000 127.27% Golf Academy Income 0 15,402 71,000 0 -100.00% Interest Income 16,868 28,168 29,8001I1,500 -64.77% Miscellaneous Income 146,960 160,515 150,000 ', ,. 180,000 20.00% Total 2,192,258 2,203,428 2,787,230 -1.66% Expenditures 2001-02 2002-03 2003-04 2004-05 Percent Actual Actual Actual Budget,-, Proposed' Change Personnel 1,013,129 1,043,926 1,171,778 13172,054 0.02% Supplies 147,483 180,135 191,333 .196,225 2.56% Maintenance 57,998 54,959 54,604 67,104 22.89% Services 461,140 828,826 919,799 1;074,1431 16.78% Permanent Capital Maint. 383,954 0 0 0 0.00% Transfers 495,272 673,446 202,232 205,382 1.56% Total 2,558,975 2,781,292 2,539,746 Fund Balance Summary 2001-02 2002-03 2003-04004.0 Actual Actual Budget ' Proposed Beginning Working Capital Balance 1,526,133 293,280 (159,082) ,` " 88,402 Contribution to Retained Earnings (366,717) (577,865) 247,484 26,022 Operating Transfers In / (Out) (866,137) 595,995 Extraordinary Gain / (Loss) 125,503 Ending Working Capital Balance 293,280 (159,082) 88,402 710,419 Fund Balance Requirement * 639,744 695,323 634,936 X78,727 Balance over Requirement (346,464) (854,405) (546,534)1 1 31,692 * Fund balance requirement is 25% of total net budgeted expenses or 90 days of operation. The FY 2004-05 projected ending working capital balance represents 95 days of operation. 6.90% FY 2004-05 Proposed Capital Improvement Plan Summary of Projects By Category General Government Capital Projects Street and Drainage Improvements $11,853,164 Buildings and Facilities $348,622 Parks, Beautification and Miscellaneous $2,693,832 Total General Government Projects $14,895,618 Utility and Lake Enterprise Capital Projects Water System Improvements $2,587,652 Wastewater System Improvements $1,836,889 Total Utility and Lake Enterprise Projects $4,424,541 Operating Budget Impacts General Government Capital Projects $328,959 Utility & Lake Enterprise Capital Projects $217,660 Total Operating Budget Impacts $546,619 Operating Budget Impacts (By Fund) General Fund $124,634 Convention & Visitors Fund $220,500 Utility Enterprise Fund $201,485 Total Operating Budget Impacts (By Fund) $546,619 Permanent Capital Maintenance and Street Maintenance Program GENERAL FUND PROJECTS 174-74004-002 Community Activities Ctr. Repairs & Maint. 19,000 174-74004-003 Police / Courts Bldg. Repairs & Maint. 36,300 174-74004-004 Municipal Service Center Repairs & Maint. 43,300 174-74004-005 Library Repairs & Maint. 20,000 174-74004-006 Senior Center Repairs & Maint. 9,700 174-74004-007 Fire Station Repairs & Maint. 132,500 174-74004-008 Animal Control Repairs & Maint. 3,000 174-74004-009 Park Facilities Repairs & Maint. 11,500 174-74004-014 Palace Arts Center 3,000 174-74004-015 Water Tower Records Storage Center 3,000 TOTAL FACILITIES MAINTENANCE $281,300 174-74015-051 Centralized Irrigation System 45,000 174-74015-052 Median Landscaping 50,000 174-74015-053 Lamp Replacement at Athletic Facilities 15,000 174-74015-054 Court Resurfacing 20,000 174-74015-057 Fence Replacement 20,000 174-74015-059 ADA Accessibility / Drinking Fountains 9,000 174-74015-060 Park Signage Replacement 15,000 174-74015-061 Trash Receptacle Replacement 12,000 174-74015-064 Bleacher Replacement 20,000 174-74015-066 Small Park Amenities Replacement 12,000 174-74015-067 Playground Accessibility Improvements 30,000 174-74015-068 Special Events Equipment Replacement 6,000 174-74015-071 Dove Park Water Features & Safety Deck 6,000 TOTAL PARKS MAINTENANCE $254,000 l P>A1IlN1[`RTt9fT11'+T105 .. C111 is 174-43301-090 Annual Street Maint. & Overlay Program 950,000 174-43301-093 Traffic Signal, Signing & Striping Maint. 180,000 TOTAL PERMANENT STREET MAINTENANCE $1,130,000 FY 2004-05 PROPOSED OPERATING BUDGET STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE STORMWATER DRAINAGE UTILITY FUND Revenues 2001-02 2002-03 2003-04 2004-05 Percent 4,745,517 Actual Actual Budget' Pjrbpbsed" Change Drainage Utility Fees 1,195,661 1,226,670 1,254,302 1,256,084 0.14% Interest Income 33,112 32,049 45,000 46,000 ' 0.00% Interest Income - 2000 C.O. 57,326 14,135 0 0 0.00% Other Financing Sources 880,169 0 0 0 0.00% Total Fund Revenues 2,166,256 1,272,841 1,299,302 1,301}084 0.14% Expenditures 2001-02 2002-03 2003-04 ', 2004-05 Percent 4,745,517 Actual Actual Budget Proposed Change Personnel 297,216 330,431 333,745 ",'3135,595 -8.43% Supplies 16,737 18,522 26,700 28,700 7.49% Maintenance 79,793 94,569 105,000 111,000 0.00% Services 109,363 131,094 77,857 118,639 52.38% Capital Outlay 70,525 90,240 0 0 0.00% Transfers 663,488 741,007 750,364 579,792 -22.73% Total Fund Expenditures 1,237,121 1,405,863 1,293,666 1;137,,726 -12.05% Fund Balance Summary Beginning Fund Balance Contribution to Fund Balance Reserved for Capital Projects Ending Fund Balance 2001-02 2002-03 2003-04 Actual Actual Budget 4,745,517 3,427,566 2,794,326 929,135 (133,022) 5,636 2,247,086) (500,218) 0 3,427,566 2,794,326 2,799,962