Ord. 1568 2018-09-24ORDINANCE NO.1568
An appropriation Ordinance adopting a budget for the fiscal year
beginning October 1, 2018, and ending September 30, 2019, and pay
plans for fiscal year 2019.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Manager's proposed 2018-2019 Budget, attached hereto as
Exhibit "A", be adopted in compliance with provisions of Article 8 of the Home Rule Charter of
the City of Pearland, Texas which sets forth certain specific requirements as to the City of
Pearland,
Section 2. That City Council hereby appropriates certain sums, more specifically
identified on Exhibit "A" attached hereto, for the proposed fiscal year 2018-2019 Budget.
Section 3. That the City Council hereby confers upon the City Manager general
authority to contract for expenditures without further approval of the Council for all budgeted
items the cost of which do not exceed the constitutional and statutory requirements for
competitive bidding.
Section 4. That the City Council deems the Pay Plans (Exhibit "B") and
Organizational Plan contained in the 2018-2019 Budget to be in the best interest of the City and
is hereby adopted.
Section 5. That this ordinance shall become effective from and after its passage on
second and final reading.
2018.
PASSED and APPROVED ON FIRST READING this the 17th day of September, A. D.,
TOM REID
MAYOR
ORDINANCE NO.1568
ATTEST:
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PASSED and APPROVED ON SECOND and FINAL READING this the 24th day of
September, A. D., 2018.
ATTEST:
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APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
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Fund Description
EXHIBIT A
City of Pearland
Fiscal Year 2018-2019 Budget
Revenues
Adopted Budget
Ord No. 1568
Expenses
Adopted Budget
Ord No. 1568
OPERATIONS
100 General
200 Debt Service -General
900 PEDC
Special Revenue Fun_n_d_ s
305 Hotel/Motel
310 Municipal Court Security
315 Citywide Donation
320 Court Technology
330 Parks Donations
331 Tree Trust
335 Police State Seizure
336 Federal Police
340 Park & Recreation Development
345 Sidewalk
350 Grant
351 Community Development
360 Traffic Impact Improvement
365 CourtJuvenile Management
370 Municipal Channel
380 Regional Detention
510 Lower Kirby
Internal Service Fund
700 Property/Liability Insurance
702 Medical Self -Insurance
703 Motor Pool
Proprietary Funds
600 Water and Sewer
610 Solid Waste
SUB TOTAL - OPERATIONS
CAPITAL IMPROVEMENT PROGRAM
Water/Sewer Capital Projects Funds
550 Utility Impact Fee
555 Shadow Creek Impact Fee
560 Certificates of Obligation 1998
565 1999 W & S Revenue Bonds
570 Water/Sewer Pay As You Go
575 MUD 4 Capital Program
Capital Projects Funds
500 Capital Projects
501 Capital Projects -CO 2001
503 Capital Projects -CO 2006
506 Capital Projects -GO Series 2009
80,793,874
37,918,371
11,730,381-
1,460,800
43,700
30,967
50,003
128,000
7,800
4,000
76,200
138,000
5,005
58,866
390,001
7,500
62,200
285,000
1,433,425
7,765,280
3,719,240
55,197,384
7,703,815
209,009,812
29,990,000
260,000
6,085,000
2,925,000
10,000
27,487,518
54,065,839
80,424,112
38,941,094
27,757,741
1,530,225
51,006
39,673
38,171
122,500
50,750
37,200
749,154
4,220
58,791
390,001
1,141
61,444
158,400
1,441,259
7,747,279
3,699,240
53,416,720
7,700,000
224,420,121
37,234,738
700,000
6,257,916
3,688,688
390,245
36,630,645
3,916
57,609,494
SUB TOTAL - CIP
120,823,357
142,515,642
GRAND TOTAL:
329,833,169
366,935,763
FY19 COP UNIFIED PAY PLAN
effective October 1, 2018
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
103
$20,213.00
$24,255.00
$30,319.00
LIFEGUARD
$9.72
$11.66
$14.58
104
$21,223.00
$25,468.00
$31,835.00
HEAD LIFEGUARD
$10.20
$12.24
$15.31
106
$23,398.00
$28,078.00
835,098.00INTERN
$11.25
$13.50
$16.87
RECREATION ATTENDANT
SUMMER CAMP COUNSELOR
WATER SAFETY INSTRUCTOR
107
$24,568.00
$29,482.00
$36,853.00
CUSTODIAN
$11.81
$14.17
$17.72
108
$25,797.00
$30,956.00
$38,695.00
FACILITY ATTENDANT
$12.40
$14.88
$18.60
110
$28,441.00
$34,129.00
$42,662.00
CAMP COORDINATOR
.$13.67
$16.41
$20.51
OFFICE ASSISTANT
POLICE RECORDS CLERK
111
$29,863.00
$35,836.00
$44,795.00
ANIMAL SHELTER ATTENDANT
$14.36
$17.23
$21.54
CUSTOMER SERVICE REPRESENTATIVE I
DEPUTY COURT CLERK
PARK MAINTENANCE WORKER
PERMIT CLERK
SIGN TECHNICIAN
112
$31,356.00
$37,627.00
$47,034.00
CUSTODIAL CREW LEADER
$15.08
$18.09
$22.61
CUSTOMER SERVICE REPRESENTATIVE II
RECORDS & INFORMATION COORDINATOR
113
$32,924.00
$39,509.00
$49,386.00
ACCOUNTS PAYABLE CLERK
$15.83
$18.99
$23.74
COURT SECURITY OFFICER
DEPUTY COURT CLERK, SENIOR
OFFICE ASSISTANT, SENIOR
PARAMEDIC
PLANS EXPEDITER
RECORDS SUPERVISOR
SENIOR CENTER SHUTTLE BUS DRIVER
UTILITY BILLING SPECIALIST
UTILITY FIELD SERVICE TECHNICIAN
UTILITY MAINTENANCE WORKER
'114
$34,570.00
$41,484.00
$51,855.00
ADMINISTRATIVE ASSISTANT
$16.62
$19.94
$24.93
EQUIPMENT OPERATOR
JAILER
LEGAL SECRETARY
115
$36,299.00
$43,558.00
$54,448.00
HEAVY EQUIPMENT OPERATOR
$17.45
$20.94
$26.18
LEAD COURT SECURITY OFFICER
QUARTERMASTER
Page 1 of 5
FY19 COP UNIFIED PAY PLAN.
effective October 1, 2018
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
116
$38,114.00
$45,736.00
$57,171.00
BUILDING MAINTENANCE TECHNICIAN
$18.32
$21.99
$27.49
CCTV TECHNICIAN
CHIEF COURT CLERK
CODE ENFORCEMENT / HEALTH OFFICER
EXECUTIVE ASSISTANT
ANIMAL CONTROL OFFICER
JUVENILE CASE MANAGER
MECHANIC
PARK MAINTENANCE CREW LEADER
PRE-TREATMENT TECHNICIAN
RECREATION SPECIALIST
TREATMENT PLANT OPERATOR I
UTILITY MAINTENANCE TECHNICIAN
YOUTH DEVELOPMENT COORDINATOR
117
$40,019.00
$48,023.00
$60,029.00
ANIMAL SHELTER SUPERVISOR
$19.24
$23.09
$28.86
BUILDING INSPECTOR
COMMUNICATIONS SPECIALIST
CRIME VICTIM LIAISON
DEPUTY CITY SECRETARY
IT SUPPORT SPECIALIST
PAYROLL SPECIALIST
PD - POLICE CADET
ROW INSPECTOR
TELECOMMUNICATIONS OPERATOR
TRAFFIC SIGNAL TECHNICIAN
118
$42,020.00
$50,424.00
$63,031.00
ACCOUNTS PAYABLE COORDINATOR
$20.20
$24.24
$30.30
ADAPTIVE RECREATION SPECIALIST
GIS TECHNICIAN
HR SPECIALIST
LEAD JAILER
MAINTENANCE CREW LEADER
PLANNING TECHNICIAN
PLANS EXAMINER
TREATMENT PLANT OPERATOR II
URBAN FORESTER
UTILITY FIELD SERVICE TECHNICIAN, LEAD
UTILITY MAINTENANCE TECHNICIAN, SENIOR
VOLUNTEER COORDINATOR
119
$44,121.00
$52,946.00
$66,182.00
AQUATICS SUPERVISOR
$21.21
$25.45
$31.82
BUYER
COMMUNITY OUTREACH COORDINATOR
CONSTRUCTION INSPECTOR
CRIME SCENE TECHNICIAN
CUSTOMER SERVICE SUPERVISOR
FACILITY SUPERVISOR
ANIMAL CONTROL SUPERVISOR
PLANNER I
PW INFRASTRUCTURE LIAISON
TELECOMMUNICATIONS TEAM LEADER
Page 2 of 5
FY19 COP UNIFIED PAY PLAN
effective October 1, 2018
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
120
$46,327.00
$55,593.00
$69,491.00
ADDRESSING COORDINATOR
$22.27
$26.73
$33.41
BACKFLOW COMPLIANCE PROGRAM COORDINATOR
CIP COORDINATOR
CRIME ANALYST
EMERGENCY MANAGEMENT PLANNER
ENGINEERING TECHNICIAN
EXECUTIVE ASSISTANT, SENIOR
PRETREATMENT COORDINATOR
PROJECT COORDINATOR
STAFF ACCOUNTANT
121
$48,644.00
$58,373.00
$72,966.00
ASSISTANT MANAGER, PERMITS & INSP
$23.39
$28.06
$35.08
ELECTRICIAN
PARK SUPERVISOR
PLANNER II
VIDEOGRAPHER/EDITOR
122
$51,076.00
$61,291.00
$76,614.00
BUDGET ANALYST
$24.56
_ $29.47
$36.83
BUSINESS ADMINISTRATOR
CONTRACT ADMINISTRATOR
GIS SPECIALIST
MARKETING MANAGER
NATURAL RESOURCE MANAGER
OPERATIONS MANAGER
RESOURCE DEVELOPMENT COORDINATOR
SALES AND EVENT MANAGER
SENIOR ACCOUNTANT
SPECIAL EVENTS COORDINATOR
COMMUNICATIONS SUPERVISOR
TREASURY ANALYST
TREATMENT PLANT SUPERVISOR
123
$53,630.00
$64,356.00
$80,445.00
HR BUSINESS PARTNER
$25.78
$30.94
$38.68
MAINTENANCE SUPERVISOR
SAFETY OFFICER
SENIOR PLANNER
RECREATION PROGRAM MANAGER
WATER B&C ASSISTANT MANAGER
123 F
$53,630.00
$64,356.00
$80,445.00
FIREFIGHTER*
$19.46
$23.35
$29.19
124
$56,311.00
$67,574.00
$84,467.00
ASSISTANT BUILDING OFFICIAL
$27.07
$32.49
$40.61
ATHLETICS AND AQUATICS MANAGER
BUILDING MAINTENANCE SUPERVISOR
DEVELOPMENT COORDINATOR
FIRE INSPECTOR/INVESTIGATOR
SENIOR BUDGET ANALYST
HEALTH & ENVIRONMENTAL SERVICES SUPERVISOR
Page 3 of 5
FY19 COP UNIFIED PAY PLAN
effective October 1, 2018
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
125
$59,127.00
$70,952.00
$88,690.00
ASSOCIATE ENGINEER
$28.43
$34.11
$42.64
ACQUISITION MANAGER
JAIL MANAGER
MUNICIPAL COURT ADMINISTRATOR
COMMUNICATIONS AND RECORDS MANAGER
PARKS DEVELOPMENT & OPERATIONS SUPERINTENDENT
125 F
$59,127.00
$70,952.00
$88,690.00
DRIVER/OPERATOR*
$21.45
$25.74
$32.18
FIRE FIELD TRAINING OFFICER*
126
$62,083.00
$74,500.00
$93,125.00
ANIMAL SERVICES MANAGER
$29.85
$35.82
$44.77
CHIEF CONSTRUCTION INSPECTOR
CONSTRUCTION MANAGER
DATABASE ADMINISTRATOR
GRANTS/SPECIAL PROJECTS ADMINISTRATOR
IT INFRASTRUCTURE ARCHITECT
MANAGEMENT ASSISTANT
PROJECT MANAGER
PUBLIC WORKS SUPERINTENDENT
RECREATION SUPERINTENDENT
127
$65,187.00
$78,225.00
$97,781.00
MARKETING DIRECTOR (EDC)
$31.34
$37.61
$47.01
WATER BILLING & COLLECTION MANAGER
MUNICIPAL COURT PROSECUTOR
127 F
$65,187.00
$78,225.00
$97,781.00
FIRE LIEUTENANT*
$23.65.
$28.38
$35.48
128
$68,447.00
$82,136.00
$102,670.00
CITY PLANNER
$32.91
$39.49
$49.36
DEVELOPMENT MANAGER
FACILITIES SERVICE MANAGER
129
$71,869.00
$86,243.00
$107,804.00
BUILDING OFFICIAL
$34.55
$41.46
$51.83
EMERGENCY MANAGEMENT COORDINATOR
GIS MANAGER
INFORMATION TECHNOLOGY MANAGER
SENIOR PROJECT MANAGER
130
$75,462.00
$90,555.00
$113,194.00
ASSISTANT CITY ENGINEER
$36.28
$43.54
$54.42
CLINICAL MANAGER
FIRE CAPTAIN (Training)
HR MANAGER
RISK MANAGER
VICE PRESIDENT - EDC
130 F
$75,462.00
$90,555.00
$113,194.00
FIRE CAPTAIN*
$27.38
$32.86
$41.07
131
$79,236.00
$95,083.00
$118,853.00
ASSISTANT CITY ATTORNEY
$38.09
$45.71
$57.14
CONTROLLER
Page 4 of 5
FY19 COP UNIFIED PAY PLAN
effective October 1, 2018
Grade
Minimum
Market
Maximum
Class Title -
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
132
$83,197.00
$99,837.00
$124,796.00
ASSISTANT DIRECTOR, P&R
$40.00
$48.00
$60.00
ASSISTANT DIRECTOR, PUB WORKS
BATTALION CHIEF (Logistics)
BUDGET AND PROCUREMENT MANAGER
FIRE MARSHAL
132 F
$83,197.00
$99,837.00
$124,796.00
BATTALION CHIEF*
$30.19
$36.23
$45.28
133
$87,357.00
$104,829.00
$131,036.00
ASSISTANT DIRECTOR, CAP PROJ
$42.00
$50.40
$63.00
ASSISTANT DIRECTOR, ENGINEERING
ASSISTANT DIRECTOR, FINANCE
134
$91,725.00
$110,070.00
$137,588.00
ASSISTANT FIRE CHIEF
$44.10
$52.92
$66.15
DEPUTY CITY ATTORNEY
136
$101,127.00
$121,352.00
$151,690.00
ASSISTANT POLICE CHIEF
$48.62
$58.34
$72.93
DEPARTMENT
DIRECTORS AND ABOVE ARE NOT LISTED ON THE PAY PLAN
Page 5 of 5
CITY OF PEARLAND
CIVIL SERVICE PAY PLAN
FY 2019
1
2
3
4
5
6
7
8
9
10
11
12
Police Officer
$27.58
$28.43
$29.29
$30.19
$31.11
$32.06
$33.04
$34.05
$35.09
$36.16
$37.26
$38.40
141*
$57,375.00
$59,126.34
$60,930.72
862,791.20
$64,707.78
$66,682.50
$68,718.42
$70,815.54
$72,976.92
$75,204.60
$77,500.62
$79,866.00
1st year
2nd year
3rd year
4th year.
5th year
6th year
Sergeant
$39.24
$40.45
$41.70
$42.99
$44.31
$45.68
19*
$81,626.52
$84,143.88
$86,737.74
$89,413.20
$92,170.26
$95,013.0
1st year
2nd year
3rd year
4th year
Lieutenant
$47.09
$48.48
$49.91
$51.39
5*
$97,951.62
$100,844.34
$103,822.74
$106,889.84
1st year
2nd year
3rd year.
Captain
$52.90
$54.49
$56.12
4`
$110,041.68
$113,333.22
$116,723.70
*indicates number of authorized position in each classification.
Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032.
When Classified Employee is eligible, shift differential pay is $86.00 bi-weekly.
Those Police Officers and Sergeants assigned to the Criminal Investigation Division as Detective, such assignments at the discretion of the Chief, will
receive $100.00/bi-weekly assignment pay for the duration of the assignment.
All overtime for any classification shall be paid in accordance with applicable State and Federal law.
Prepare
for the
Future
B. GAPC\P
2018-2019
CITY OF PEARLAND, TEXAS
FISCAL YEAR
BUDGET
a
CITY OF PEARLAND
Fiscal Year 2018-2019
Budget Cover Page
This budget will raise less revenue from property taxes than last year's
budget by an amount of $-14,396,313, which is a -21.74 percent decrease
from last year's budget. The property tax revenue to be raised from new
property added to the tax roll this year is $1,928,050.
The members of the governing body voted on the budget as follows:
FOR: Carbone, Moore, Reed, Perez, Owens, Little, Hernandez
AGAINST:
PRESENT and not voting:
ABSENT:
Property Tax Rate Comparison
Property Tax Rate:
Effective Tax Rate:
Effective Maintenance & Operations Tax Rate:
Rollback Tax Rate:
Debt Rate:
2018-2019 2017-2018
$0.709158/100 $0.685059/100
$0.709158/100 $0.667060/100
$0.264535/100 $0.236166/100
$0.715697/100 $0.685059/100
$0.430000/100 $0.430000/100
Total debt obligation for CITY OF PEARLAND secured by property taxes:
$319,540,000
G
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
City of Pearland
Texas
For the Fiscal Year Beginning
October 1, 2017
Citaseciatia. P 7gsw>t
Executive Director
Mayor & City Council
Adopted Budget Fiscal Year October 1, 2018—September 30, 2019
Tom Reid
Mayor
Adrian Hernandez
Position 4
Tony Carbone
Position 1
J. David Little
Position 5
Derek Reed
Position 2
Trent Perez
Position 6
Mayor Pro Tem
Gary Moore
Position 3
Woody Owens
Position 7
City Manager's
Office
Clay Pearson
City Manager
Jon Branson
Deputy City Manager
Trent Epperson
Assistant City Manager
CITY OF PEARLAND
PROPOSED BUDGET FY 2018
TABLE OF CONTENTS
TRANSMITTAL LETTER
City Manager's Transmittal Letter
BUDGET OVERVIEW
Reader's Guide to the Budget 1
FY19 Budget Highlights Infographic 9
Funded Supplemental Requests 10
New Positions 11
Positions by Department 12
All Funds Summary 15
About the City 19
Demographics & Statistics 20
Map of the City 23
City-wide Organization Chart 25
City Management 26
Strategic Priorities 27
FY19 Budget Calendar 30
Property Taxes Overview 31
MULTI -YEAR FORECAST
Overview 37
Debt Service Fund 41
General Fund 42
Water/Sewer Fund 43
Pearland Economic Development Corporation 45
DEBT SERVICE FUND
Summary of Revenues, Expenditures and Fund Balance 47
Overview 48
Governmental Debt to Maturity 50
Graph: Governmental Debt to Maturity 51
Debt Service Schedules 52
GENERAL FUND
Revenue and Expenditure Summary 55
Overview 56
General Government 61
Public Safety 74
Community Services 82
Public Works 89
Parks & Recreation 95
ENTERPRISE FUNDS
Water & Sewer Revenue & Expense Summary 99
Overview 101
Public Works 103
Finance 107
Enterprise Fund Debt Maturity Schedule 109
Enterprise Fund Debt Service Schedule 111
Solid Waste Fund 112
CAPITAL PROJECT FUNDS
Definition 115
Overview 116
Summary of Revenues, Expenditures and Fund Balances 118
SPECIAL REVENUE FUNDS
Definition 135
Hotel/Motel Occupancy Tax/Convention & Visitors' Bureau Overview 136
Court Security Overview 137
Citywide Donation Overview 138
Court Technology Overview 139
Street Assessment Overview 140
Park Donations Overview 141
Tree Trust Overview 142
Police State Seizure Overview 143
Federal Police Overview 144
Park & Recreation Development Overview 145
Sidewalk Overview 146
Grant Fund 147
Community Development Block Grant (CDBG) Overview 148
Traffic Improvement Overview 149
Court Juvenile Management Overview 150
Municipal Channel (PEG) Overview 151
Regional Detention Overview 152
Lower Kirby Urban Center Overview 153
INTFRNAL SERVICE FUNDS
Definition 155
Property/Liability Insurance 156
Medical Self -Insurance 157
Motor Pool 159
COMPONENT UNITS
Definition 161
PEDC 162
PEDC Debt to Maturity 167
APPENDIX
Financial Policies 169
City Charter 184
Tax Rate Ordinance 188
Budget Ordinance 190
City Pay Plan 193
Civil Service Pay Plan 198
City-wide Fee Ordinance 199
GLOSSARY
Glossary 225
Acronyms 232
THIS PAGE INTENTIONALLY BLANK
August 1, 2018
Honorable Mayor and City Council members,
During our employee 'road show' sharing events over the last month, I found myself sharing an
observation that there is powerful, demonstrable progress throughout the Pearland community. Roads,
facilities, and utilities are appearing alongside the private sector investments and new homes. We are
described as an up-and-coming 'cosmopolitan suburb' adjacent to the thriving fourth -largest city in the
United States. Growth and diversity are the fuel that drives our progress. At these road shows, I have
shared with the City organization that we seem to be at the cusp of the next level of operational and
service excellence produced by the City. To that end, there has been significant investment and additions
to staffing, technology, training, equipment, and support for the City. Now within reach, we are primed
to continue forward and deliver.
Work pictures, like the one above, have become a favorite -- Lots of great, talented, dedicated peop e.
These are public servants from City of Pearland Fire and Police whom we know, respect, and appreciate.
The picture above in particular is a group of City employees who posed after an inter -departmental
training exercise. The communication and skills learned working together, planning and preparing, means
we are increasingly ready to serve. These professionals are backed up and supported with additional
City resources from Fleet, IT, Communications, Dispatch, Records, and others that make the whole
system work. Moreover, there are partners from Brazoria Drainage District 4, Pearland ISD, Alvin ISD
Police, neighboring municipal fire and police specialized units, and many more that are available for
natural disasters or man-made threats to public safety.
As we look ahead to FY 19 and beyond, standing ready, at the apex of an even greater Pearland,
examples of the readying and/or delivery are:
➢ Enterprise -level software has taken root across the entire organization to provide new technology
for daily use for financial, human resources, payroll, utility billing, permitting, and inspections
applications. By connecting our systems we enhance our ability to realize efficiencies, both internal and
external, and provide our staff with analytic tools to solve problems. In FY18, we funded the Water &
Sewer portion of our asset management system, the first of two phases in our asset management
system. Phase Two will provide more for the General Fund to support Public Works is ahead.
➢ We are upgrading to an Advanced Metering Infrastructure (AMI) system to reduce water loss and
put information in the hands of consumers, similar to what is experienced with modern electrical smart
meters. The technology advancement over the existing drive -by automated meter reading (AMR)
system. The upgrade is part of an investment in infrastructure and the future, precisely measuring the
water used through more than 37,000 meters. The new AMI system will improve the long-term accuracy
and information available related to water service. AMI comes with an added benefit of customer -facing
data which will improve transparency and empower residents to optimize their own water usage by
having information related to water usage at their fingertips.
➢ For emergency preparedness, we have pursued training, communications, vehicles, and
technology. The epic rainstorm/hurricane Harvey experience remains on our minds. City reactions
before, during, and after that specific storm have been lauded. Our staff did great work to help people
in need. Their local government was there with the necessary support. Helpful and essential State and
Federal resources arrived in the weeks following, but it was the City of Pearland locally, arm -in -arm
with community partners, that answered the call. From that experience, we have been working
continuously on improving resiliency,
hardening systems with the goal of
bouncing back from any emergency. We've
taken lessons learned and completed some
visible and other work behind -the -scenes to
be ready, just in case. We used an
allocation of FY 18 contingency to jump
start our emergency management training
program for staff in leadership positions.
The upcoming FY 19 budget includes
$10,000 to continue that program.
Mobility
There's much to be proud of in our
preparations and readying related to
providing the network of mobility options that
move commerce and traffic through Pearland
and the Houston metropolitan area. After
years of work to leverage outside funds, plan,
develop, and design many significant mobility
projects, FY19 will see many of these projects
completed, underway, or primed to start
construction. The most significant being the
SH288 Toll Lanes project, dramatically
improving capacity and safety on SH 288,
providing toll express options from Pearland
to the Texas Medical Center which is known
for having the most employees in the region commuting to and from Pearland. We see now the direct
connections taking shape to Beltway 8 and ramps right from Reflection Bay and Hughes Ranch Road.
Moreover, we will see the expansion of the FM 518 interchange and the northbound Frontage Road
between Magnolia Parkway and FM 518. These projects will transform mobility around Pearland's retail
D�+/ SH 288 • LOOKING SOUTH AT BW8 INTERCHANGE
City of Pearland, Texas FY 18/19 Budget Transmittal
Page ii
nexus and for our commuters traveling daily to and from the Texas Medical Center and downtown
Houston.
The new park -and -ride from our Shadow Creek Ranch Sportsplex to and from Houston's Texas Medical
Center starts operations in September 2018. The service represents an exciting new public/private
partnership. While the City will provide the parking, this program, provided at no cost to the City, will, for
the first time provide an alternative transit option for our residents commuting to/from Houston. Shadow
Creek represents the perfect location for the park and ride, given the short distance to Beltway 8 and the
high density of residents who make that commute daily.
To complement the mobility improvements in the SH 288 corridor, Pearland Municipal Management
District 2 and the Pearland Economic Development Corporation are making major aesthetic
improvements to further distinguish and brand the City of Pearland. All of these projects require City
partnership with Brazoria County, Brazoria Drainage District #4, Texas Department of Transportation
(TxDOT), and other agencies to be successful.
The City is leading two projects that will provide additional capacity to alleviate traffic on FM 518 and
provide direct access to the SH 288 Toll Lanes via the t-ramp access point at Hughes Ranch
Road/Discovery Bay Drive. Hughes Ranch Road will be under construction this fall to widen the corridor
to four lanes between Cullen Parkway and Smith Ranch Road. Smith Ranch Road will also be expanded
to four lanes between Hughes Ranch Road and the existing four lane segment to the south. Both projects
received approximately 80% federal matching funds through the Houston -Galveston Area Council (H-
GAC) Transportation Improvement Program (TIP), amounting to about $30.5 million total Federal Funds
for Hughes Ranch ($26.5 million) and Smith Ranch ($3.9 million) in external funding leveraged by our
staff for critical transit projects here in Pearland.
A final project of note, moving towards a reality, is the completion of the McHard Road corridor by
constructing the remainder of the four lane boulevard between Cullen Parkway and Mykawa Road. This
long awaited project, that is approximately 80% federally funded, will provide a much needed alternate
east -west route to FM 518. The project is in the land acquisition stage and is currently scheduled to start
construction near the end of calendar year 2019.
All of these projects add an economic development asset, in addition to the obvious transportation
network expansion, while responding to one of our most consistently high -rated citizen concerns in our
Citizen Survey. Moreover, the work comes with modern drainage enhancements to help us all weather
the next storm more effectively. At the same time, we recognize that in this budget, we have minimal
capital outlay for maintenance of our existing mobility infrastructure. The operating budgets just do not
provide for the levels we desire, thus having to defer that again for another year.
With prosperity and growth, comes traffic congestion. To prepare for the future and continue our
prosperity, we must provide the mobility projects to alleviate congestion for better access to jobs, our
quality residential developments, and our booming retail centers. The current and upcoming mobility
projects, plus future projects being prepared to pursue TIP funds and bond funds, will ensure our
prosperity will endure.
Economic development
Pearland has long been a community focused on sustained economic growth and the previous year was
no exception. In April, we celebrated the grand opening of Lonza's manufacturing facility in the Lower
Kirby District. At 300,000 square feet, it's the largest dedicated cell -and -gene -therapy manufacturing
facility in the world and is scheduled to employ 200 people by the end of this year. Also, in the Lower
City of Pearland, Texas FY 18/19 Budget Transmittal
Page iii
Kirby District, Tool -Flo is nearing completion on the construction of its headquarters, training, and
manufacturing facility. The 80,000 square -foot facility will be home to 150 employees when it opens later
this year.
To ensure this growth continues in the Lower Kirby District, and as one of the key initiatives in our
Pearland 20/20 community strategic plan, PEDC and the City have invested in many infrastructure
projects within the District. We have partnered with the Management Districts to continue to develop
regional detention, recently completed the reconstruction of Hooper Road, and will soon begin
construction for the extension of South Spectrum.
Infrastructure work continues on the Ivy District, an urban mixed -use development with multi -family, town
homes, condominiums, retail, potential office spaces, and additional infrastructure improvements
including a public park in the Lower Kirby District. Through development agreements between the City
and the Ivy District developer, American Modern Green, amenity space around the Lower Kirby District's
regional detention pond will be developed as a public park that will include a playground, a covered
pavilion, a 6-foot wide trail through the park and around the pond, irrigation and landscaping, and a
pedestrian bridge across Clear Creek. The City's portion of the improvements will come from PEDC
funds.
Another Pearland 20/20 strategic plan key initiative and catalyst for economic development in our
community is the State Highway 35 Entryway and Corridor Enhancements. This beautification project will
elevate the corridor's visual appearance and help implement the State Highway 35 Redevelopment
Strategy's vision of a high quality and consistently -designed employment and business environment. The
project, which will streetscape the corridor from Beltway 8 to FM 518, includes two gateway signs at Clear
Creek near Beltway 8, as well as surrounding entryway features, tree plantings in the medians, roadside
landscape improvements and aesthetic improvements at major intersections. Construction will begin by
the end of September 2018 and will take approximately one year to complete, weather permitting.
Revenue
Total annual FY 19 revenue for the City budget across all funds is $329.8 million. For the General Fund,
the total is $80.8 million, approximately $1.9 million higher than the prior year adopted budget.
Highlights for our General Fund revenue below are:
➢ Even controlling for the post -Harvey spike generating rebuild efforts, we have seen strong sales
tax revenue growth, sparked by continued existing retail activity and corresponding growth in rooftops
in Pearland and the surrounding area's consumers driving that activity. Our sales tax growth forecast
for FY 19 is conservative at 3.8% over the amended budget.
➢ Projected building permit revenues are expected to stay flat with FY18 projection, recognizing
open land and continued planned developments in the works. The original FY 18 budget had been built
upon explosive growth in FY 16 and FY 17 in both commercial and residential development. The FY
19 permit revenue does not reflect a community at full build -out, but instead a steady, continued growth
pattern, moderated relative to the prior two years.
➢ There is not additional revenue in FY 19 budgeted for Federal reimbursement of Harvey disaster
expenses. As was discussed prior to and presented at FY18 mid -year projections, we are anticipating
reimbursement from the Federal Emergency Management Agency (FEMA) for much of the costs
incurred during and after the storm. Staff has taken the necessary measures to account for those
reimbursements prudently. The recognized FY 18 amount of $1.6 million is discounted for Federal hold -
City of Pearland, Texas FY 18/19 Budget Transmittal
Page iv
back and potential challenge of City claims. The process to receive the cash for that reimbursement
and close out the expenditures is expected to take years.
General Fund Revenue Budget by Classification Report
2016 Actual
2017 Actual 2018 Amended 2019 Adopted Notes
Fund: 100 General Fund
Property Taxes
Sales & Use Taxes
Franchise Fees
$14,607,848 20%
20,013,626 27%
6,919,238 9%
$17,910,289 24%
20,457,029 28%
6,975,738 10%
$20,453,523 28%
21,957,016 30%
7,154, 583 10%
$21,332,769 29%
22,855,294 31% 3.8% over FY 18 Amended
7,296,694 10%
Licenses & Pernits
5,677,531 8% 5,434,917 7% 3,783,035 5% 3,785,535 5%
Fines & Forfeitures 2,802,424 4% 2,510,849 3% 2,313,750 3% 2,110,750 3%
Charges for Services 14,853,315 20% 15,396,511 21% 16,203,603 22% 17,618,566 24%
Investment Earnings 248,098 0% 71,512 0% 250,000 0% 250,000 0%
Intergovernmental 1,372,143 2% - 0% - 0% - 0%
Miscellaneous
747,985 1% 1,534,335 2%
2,914,027 4% 983,806 1%
Other Financing Sources 1,917,854 3% - 0% - 0% - 0%
Transfers In 4,111,522 6% 3,791,394 5% 3,816,116 5% 4,560,460 6%
Revenue Totals $73,271,582 $74,082,574 $78,845,653 $80,793,874
Held constant w ith
projection; $1.8 million
under FY18 Adopted
No FEMA reimbursement
additional for FY 19;
recognized as receivable
in FY 18
Expenditures
Total expenditures for the City budget across all funds is $366.9 million. For the General Fund, the total
is $80.4 million, less than the 2017 actual expenditures (which includes carry-overs) and less than prior
FY 18 amended budget (also including carry-overs). Prior year totals were expanded by draw downs in
fund balance over policy minimums and Hurricane Harvey expenditures. Below is a table that reflects the
distribution of General Fund by category and how that has changed.
The trajectory of salaries and wages points upwards towards the expansion of salaries and benefits to
an even larger portion of the FY 19 Proposed Budget. The numbers reflect additions of people,
particularly in public safety, to be shown in the next table, the increased costs associated with supporting
those people and compensating our dedicated staff with competitive wages. After conducting an
organization -wide Compensation & Classification Study, the City implemented 100% of the
recommended increases effective mid -year FY 18, which will be realized for a full 12 months for the first
time in FY 19. Salaries, particularly in our Fire Department, rose significantly; roughly $3.5 million
organization -wide over 12 months. Salaries and wages, already the majority expenditure category in the
General Fund as one would expect in our people -centric organization, is growing even larger for FY 19.
If the percentage for FY 19 was at the FY 17 proportion of 66% of total expenditure, then personnel
would be $53.0 million instead of the $58.7 million we foresee.
The FY 19 Budget reflects across-the-board 2% salary increases and wage -related benefits (+ $1.1
million to the General Fund; + $1.3 million overall) and step increase (+ $124,000). The adjustments are
important to keep us on pace with the 100% classification and compensation study implemented mid-
2018, ensuring that we continue to recruit and retain the talent we want and need, as has been the case.
The implemented study began in late 2016, with data collection for comparative salaries occurring
through early 2017, implementation approved in September 2017 for April 2018 increases.
Recommendations are that we conduct a detailed comparison to the external market and to immediate
competitors using a comprehensive methodology such as the one used in 2016/2017 every 3-4 years.
City of Pearland, Texas FY 18/19 Budget Transmittal
Page v
With the most recent results coming from 2017 data, we should be budgeting and preparing for another
comprehensive look occurring in October 2020 or at the latest 2021. In the time between studies the
department takes opportunities to participate in other organization surveys being done so we can receive
that external information. We review such information regularly to see trends we should be aware of,
adjustments we need to make. As always, we review individual positions as needed and requested to
ensure employees are working in their appropriate classification.
An effect of the growth in employee expenditures is that the General Fund annual capital outlay
for vehicles and other replacements is significantly cut. Nearly all fleet reinvestment is being
deferred, which will need to be made up in future years and will increase near -term operating costs and
outages for repairs. Also worth noting is the necessary 59% reduction to our street and sidewalk
rehabilitation program. Even prior to FY 19, we had already fallen short of necessary targeted amount to
maintain our current, stellar pavement rating.
General Fund Expense Budget by Classification Report
2016 Actual 2017 Actual 2018 Am ended 2019 Adopted Notes
Fund: 100 General Fund
Salaries & Wages
Materials & Supplies
Building & Grounds
Repair & Maintenance
$47,855,166 65%
2,410,214 3%
2,372,391 3%
3,215,367 4%
$53,274,036 66% $55,295,153 68% $58,806,243 73%
2,530,393 3% 2,417,317 3% 2,333,953 3%
3,128,950 4% 3,908,077 5% 2,158,391 3%
3,236,922 4% 3,243,550 4% 1,941,461 2% Prior Years had Fleet expenses
here
Miscellaneous Services 10,957,624 15% 10,562,010 13% 11,120,594 14% 10,266,358 13%
Other 23,047 0% 18,677 0% 74,106 0% 251,245 0%
Inventory 714,908 1% 522,502 1% 756,142 1% 443,865 1%
Capital Outlay 3,103,621 4% 4,767,706 6% 2,772,515 3% 425,638 1% Prior Years had Fleet expenses
here
Principal Payment 443,252 1% 547,305 1°% 556,677 1% 520,496 1%
Interest Expense 36,931 0% 44,294 0% 34,922 0% 22,355 0%
Intergovernmental - 0% - 0% - 0% 0°%
Transfers Out 2,573,817 3% 2,008,856 2% 1,141,000 1% 3,254,107 4% Predominantly out to Motor Pool
Fund
Expenditure Totals
$73,706,338 $80,641,650
$81,320,053 $80,424,112
Another way to look at the General Fund expenditures is by the function of our annual investments. Public
Safety, police and fire, represent the majority of expenditures for FY 19, as has historically been the case.
General Fund Expense Budget by Function Report
2016 Actual
2017 Actual 2018 Amended 2019 Adopted
Fund: 100 - General Fund
General Government
Public Safety
Public Works
Community Services
Parks & Recreation
Expenditure Totals
$13,219,950 18%
$38,516,992 52%
$11,717,303 16%
$3,869,499 5%
$6,382,594 9%
$12,853,684 16%
$44,244,560 55%
$12,881,801 16%
$4,085,692 5%
$6,575,912 8%
$73,706,338 $80,641,650
$11,732,218 14%
$43,879,571 54%
$14,934,853 18%
$4,266,439 5%
$6,506,972 8%
$11,870,695 15%
$45,258,605 57%
$12,317,854 15%
$4,307,687 5%
$6,335,737 8%
$81,320,053 $80,090,578
For FY 19, we have four additional police officers programmed, two targeted for starting in January and
two more in July. With those, the objective described by Berkshire Group in their analysis with our staff
City of Pearland, Texas FY 18/19 Budget Transmittal
Page vi
was 87 for patrol, with the output result being 90% of priority calls responded within six minutes. With
the four further officer additions allocated set for FY 19, we get to 86 available directly for patrol operations
under current planning by Police command. Police command responsible for staffing assignments move
people to where needs and effect are greatest. The current assignments provide a second directed patrol
area (DDACTS #2). The allocation of resources is in -line with Berkshire's recommendation to provide
more proactive measures. DDACT Zone 1 is responsible for 11.4% of our crashes city wide, and Zone 2
is responsible for 9% of our crashes city wide. As the Zone 2 enforcement effort started in July, we have
not begun to realize an impact on these crash totals for this area. DDACTS officers provide citations for
offenses that are directly involved or contribute to crashes in the areas when a determining factor is clear.
An additional benefit should be realized with response times, as officers are also concentrated in areas
with more calls. DDACTS has contributed to increased self -directed time for Patrol officers, from 38% in
FY 16 to 41% in FY 17. This factor should have a positive impact on Patrol response times. The entire
effort puts people where the positive effect will be greatest and most likely.
The proposed budget provides staffing adequate to open new Fire Station #8 with one ambulance in
place at the opening in October 2019. Additional fire apparatus at Fire Station #8 will be staffed as funds
become available in FY 19. We plan to continue onboarding new firefighters and phase in additional
services in FY 20. Apparatuses ($3.1 million) will be debt financed, but reimbursable from the TIRZ #2.
We are also opening the replacement relocated Fire Station #1 this Fiscal year. Furniture fixtures and
equipment has an allocation of $20,000 to make that start-up smooth. We need to be also aware that
Fire Station #7 in the SH 35/Bailey Road area is on the horizon, with another 12 staff anticipated for that
station, along with the equipment and vehicles.
Park facilities, Independence Park and the Nature Center, are reopening and opening respectively during
FY 19. A Park Naturalist is funded in this budget necessary to operate the Nature Center.
Apart from the General Fund, we have made use of special revenue funds to keep moving ahead, despite
a tight General Fund budget. For instance:
➢ Train Depot renovation designs are funded through the Hotel/Motel Tax Fund overseen by our
Convention and Visitors Bureau, endorsed by the advisory board there.
➢ The Tree Trust Fund is rolling out a tree grant program.
➢ Park Development Fund is leveraging money in all three park zones to address park needs across
the city.
➢ We are rolling out the Motor Pool Fund for maintenance and the vehicles we are buying, which
will provide a long-term way to allocate and budget support of the City's essential rolling stock. We will
move the Fleet Division of Public Works into that fund, including maintenance and purchase of all stock.
Property Taxes
Property taxes along with sales tax revenue are what supports critical City services from the General
Fund. Behind that property tax base total are numbers from three counties, one (Harris County)
completely estimated in this Proposed Budget because it is not made available until late August, and a
large growing component from the Tax Increment Reinvestment Zone #2 (TIRZ) that is much of Shadow
Creek. Property taxes are the source of revenue for debt service on general obligation and certificate of
obligation long-term debt financing for capital projects.
Our property tax base used for upcoming FY 19 is complex. The total number used for starting budget
calculations in the budget is $9.79 billion. However, the Shadow Creek TIRZ #2 deducts $2.59 billion, as
that is dedicated for City participation in the TIRZ. The effective tax and rollback tax rate calculation
City of Pearland, Texas FY 18/19 Budget Transmittal
Page vii
worksheets, mandated by the Texas Tax Code, Chapter 26, then removes properties that have tax
ceilings, offset by properties under protest and not certified, and new construction. Bottom line, the
calculations reflect a more moderately growing tax value base and an effective tax rate of
$0.709158/$100 of value.
The table below reflects the distribution of homestead residential properties and their individual change,
from prior year of 2017, excluding new construction. Each of the three county appraisal districts —
Brazoria, Harris, and Fort Bend — are shown along with the aggregate total within the City of Pearland.
The story reflects overall existing residential values reported by the appraisal districts.
Homestead Assessed Values
Nell Friary 2018vs2017
BCAD
Count Percent
HCAD
Count Percent
FBCAD
Count Percent
Count
COP
Percent
Over 10,1%1ncrease
815 3,.5%
38 1,7%
33 2.0%
890 3.2%
5.1 % - 10 % Increase
5.503 233%
1 0,0%
129 7.7%
5,633 20.5%
0.1 % - 5 % Increase
6,793 25.0%
281 L2,296
394 23.4%
7,4-68 27.2%
No Increase/Decrease
2,392 10,2%
1,275 55,696
0 0.0`?b
3,667 13.4°%
0.1 %- 5 % Decrease
6,327 27.0%
373 16.3%
1.020 60.5%
7,720 213.2%
Si .% -10 % Decrease
689 .9%
249 10,9
108 6.494
1,046 3.0,
Over 10,1 % Decrease
915 3,9%
77 3.4%
2 0.1%
994 3.6%
Total
23,438 100,.0%
2,294 100,0%
1, i-96 100.0%
27,418 100.0%
Homestead Median Assessed
Values
BCAD
HCAD
FBCAD
COP
2017 Median Household Value
222,800
$
265,633
$
294,760
$
251r064
2016 Median Household Value
$
226,470
$
265,595
$
245,615
$
262r561
Percent Chan a
z%
t746
t7°t% _
1% 1
The rate which is applied upon those values, plus the commercial and new construction, for FY 19 are
constant from the prior year for debt service at 0.4300. That number is achieved through having a large
fund reserve and committing that fund reserve for debt service in the upcoming year, if necessary.
Moreover, the debt service property tax rate is inclusive of the amount also necessary to pay City
reimbursements to in -City MUD Districts for payment subsidies to developers for infrastructure costs.
The calculation for debt service is also mandated from the State of Texas Legislature and uses what one
would expect in terms of the City's principal and interest payments for FY 19 that are general obligation
and the available tax base. However, the calculation also does something unexpected. The worksheet
sets aside capped values and protested values which the City will be levying property taxes to some
level. To keep our debt service rate at what we expect is actually needed, we are again committing a
portion of fund balance to not over -inflate the debt service rate. That amount will have to be re-evaluated
during FY 19 and decided whether there are dollars coming into the debt service fund that need to be
used for current debt service, whether there is fund balance that should be held for future, or whether
there is money that should be deployed for refunding or other debt reduction.
For FY 19, the proposed budget is built upon using an operating and maintenance rate of
0.279158, which is the calculated effective tax rate. The effective tax rate is the State of Texas'
mandated calculation of what is the rate for bringing in the same amount of revenue as the prior year,
exclusive of new construction. For us, this means that this effective tax rate is projected to bring just
$45,792 more from existing properties than last year in the General Fund; adding in new constructions
nets the Fund an additional $795,437. The prescribed calculation involves a complex set of variables in
City of Pearland, Texas FY 18/19 Budget Transmittal
Page viii
a worksheet completed by Brazoria County Appraisal District (relying upon the Harris County and Fort
Bend County Appraisal District numbers provided). The calculation factors in the values for frozen
homestead homeowners over age 65 ($1.05 billion) and values under protest or otherwise not certified
($1.16 billion). The complication for our city on these worksheets is a combination of the large and
growing TIRZ #2 district that's excluded from the base calculations, compounded with the State formula
for capped properties. For the ten single-family homestead sample properties in the summary table
below, factoring in valuation changes, the increased payment to the City is about $124/year, about
$10/month.
We could go to the rollback rate, or beyond, of $0.715697 which is what we have done for several of
the last budgets, and would be reasonable given the City's growth and needs. Going to the rollback rate
would only trigger some additional advertising requirements and would bring in approximately $600,000
in additional revenue. That amount could go towards adding fire department staff to open Fire Station #8
in October 2019 and/or replacement vehicles. The rollback rate also provides a larger base for future
years, especially important given the State of Texas legislative cloud and the continuing constrictions by
Austin officials upon local public services. The flip side is that the higher rate would cost local property
taxpayers slightly more on individual bills and the rate is higher than in FY 18, mitigated by fact that half
of the homestead properties in Pearland are have experienced decreased or no change in assessment
value.
For individual property taxpayers, the recommended rate for the City portion of the tax bills remains about
25% to 30% of the total property tax bill with the remainder going to public schools, county, and MUD
districts.
Summary of Homestead Property Tax Bills Projected for 2018 Tax Year (for FY 2019 Budget Cycle)
Pearland, Texas
Zero Growth
Homestead Example 1
Homestead Example 2
Homestead Example 3
Homestead Example 4
Homestead Example 5
TY17 Actual COP Tax Bill
$ 1,247
$ 1,904
$ 1,095
$ 1,062
$ 1,623
$ 959
TY17 Taxable Value
$ 187,000
$ 285,000
$ 166,260
$ 160,083
$ 242,960
$ 139,968
Increase (Decrease)
0.0%
8.4%
-3.4%
11.8%
10.0%
-0.5%
TY18 Taxable Value
$ 187,000
$ 308,880
$ 160,690
$ 178,930
$ 267,180
$ 139,200
Scenario
City
Rate
TY 2017
Amount
Change
from Prior
Year Actual
TY 2017
Amount
Change
from Prior
year Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change
from Prior
Year Actual
Current TR
0.7092
$ 1,291
$ 44
$ 2,136
$ 232
$ 1,104
$ 9
$ 1,233
$ 171
$ 1,847
$ 225
$ 987
$ 28
Homestead Example 6
Homestead Example 7
Homestead Example 8
Homestead Example 9
Homestead Example 10
Senior Example
TY17 Actual COP Tax Bill
$ 1,304
$ 1,674
$ 3,144
$ 1,790
$ 2,151
$ 206
TY17 Taxable Value
$ 195,355
$ 252,000
$ 467,260
$ 268,000
$ 322,080
$ 149,870
Increase (Decrease)
7.5%
7.0%
-2.8%
7.0%
-1.8%
2.2%
TY18 Taxable Value
$ 210,020
$ 269,581
$ 454,080
$ 286,710
$ 316,310
$ 153,210
Scenario
1
City
Rate
TY 2017
Amount
Change
from Prior
Year Actual
TY 2017
Amount
Change
from Prior
Year Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change from
Prior Year
Actual
TY 2017
Amount
Change
from Prior
Year Actual
Current TR
0.7092
$ 1,454
$ 150
$ 1,858
$ 184
$ 3,161
$ 17
$ 1,982
$ 192
$ 2,187
$ 36
$ 206
$ -
General Fund Property Tax and TIRZ Revenue Scenarios
For the upcoming fiscal year, property tax revenue scenarios are developed with the effective tax
rate. We are showing below the Rollback Rate as usual from the State of Texas formula. In past years,
when the rollback rate was recommended, we also showed a low rate scenario. However, given the
moderation in property tax value growth at still strong 5.8% overall, the State of Texas formula results,
and value of the TIRZ growth, a lower rate for operations is largely impractical. Without much room for
discretionary expenditures under the existing recommended budget, the General Fund expenditure cuts
City of Pearland, Texas FY 18/19 Budget Transmittal
Page ix
below the effective rate would be to existing staff, existing staff salaries, reductions in service or other
negative scenarios.
We can go into FY 19 with the effective tax rate calculation, but the exercise also shows the negative
impact to the Pearland community and the public servants who provide services if the State Legislature
were to impose strict revenue caps across Texas.
Comparison of Potential Property Tax Rate and Revenue
General Fund and
Debt Service Property
Tax Rates
FY2018 Actual
Rates & Levy
Fiscal Year 2019*
(1) Current Tax
Rate
(2) Proposed Tax
Rate -- Effective
Tax Rate (No New
Revenue Rate)
(3) Rollback Rate
(8% Revenue Cap)
O&M
0.2551
0.2551
0.2792
0.2857
Debt Service
0.4300
0.4300
0.4300
0.4300
Total
0.6851
0.6851
0.7092
0.7157
G.F. Property Tax
Revenue + TIRZ
Admin Fee (in millions
$20.2 + $10.4 =
$30.6
$19.1 + $11.3 =
$30.4
$20.9 + $11.7 =
$32.6
$21.4 + $11.7 =
$33.2
*For Fiscal Year 2018, the proposed rate in green is used in the recommended budget revenue
General Fund's Fund Balance
It must be recognized that the unencumbered cash balance of our General Fund for the upcoming year,
is at the minimum for fund balance. The combination of factors from revenue and expenditure leaves little
operating margin or cushion for unexpected emergencies.
Beginning Fund Balance
Revenue Totals
Expenditure Totals
Net
Ending Fund Balance
Policy Minimum
Over (Under) Policy
Fiscal Year 2019
Adopted Budget
$ 11, 886, 007
$ 80, 793, 874
$ 80, 424,112
$ 369,762
$ 12, 255, 769
$ 12,181, 840
$ 73,929
Water and Sewer Enterprise Fund
The Water and Sewer enterprise fund provides high quality water daily, on demand, to over 37,000
customers. Building and sustaining that system is a challenge in normal years, especially in a community
like Pearland that is growing and has multiple variables of water sources. Major projects underway are
substantial:
City of Pearland, Texas FY 18/19 Budget Transmittal
Page x
➢ A new Reflection Bay Wastewater Treatment Plant that is running ahead of schedule with an
additional four million gallons/day (MGD) capacity coming online in November 2018, plus a modernized
process for existing two MGD capacity back in service by early 2019.
➢ We are beginning pilot testing, design, and construction of a 10 MGD Surface Water Treatment
Plant on CR 48 which will treat raw water from the adjacent Gulf Coast Water Authority (GCWA) canal
for distribution throughout the City's water system. Preliminary Engineering and pilot testing has begun,
to be followed by final design and construction. The project is scheduled to be completed over a five
year period with new capacity available by 2022/2023. A future phase will include an additional 10 MGD
of capacity.
> New advanced meters infrastructure (AMI) are going into all 37,000 plus accounts over the next
18 months. The technology infrastructure to read and report, provide consumers with current
information on demand is a large undertaking. The AMI system will increase precision of the usage
reads with advanced technology that is superior to older technology that wears down over time leading
to underreporting water usage.
All of those capital projects, and several others, cost money, plus the regular ongoing operating costs for
labor, electricity, chemicals and such in this $50 million revenue/year operating unit. The water and sewer
enterprise system is a business unit of the City that is financially self-supporting. Revenues, highly
dependent on the vagaries of the weather from week to week, are the exclusive source to cover all system
costs, including operating, debt, and cash coverage requirements for the debt.
The water and sewer operation had years of zero rate increase from 2010-2014, despite increasing
costs for the basics of operating the system and the need for plant expansions on the horizon. For
comparison, systems in other cities have added a surcharge for years leading up to a major addition, like
the surface water treatment plant, to mitigate future rate increases. Also, the volumetric rate model,
standard in the water industry, was adopted in beginning October 2016. To that end, customers have
absorbed the applied rate increases over the last three years to keep the system financially healthy and
prepare for those capital costs.
The dry weather and growth and additional connections allowed us to increase revenue estimates for FY
18. Moreover, the new metering system will provide precise reads, replacing meters that may be years
old and have slowed down to under -report of actual usage.
Given the fund balance, projections, capital needs, and the reality of transitioning our meters, we are
recommending no increase for FY 19 to the water and sewer rates. Garbage refuse and recycling
services are within the same billing system but have a contract that mandates slight increases. The
recommendation recognizes that we will have increasing costs, but projections are that the existing rates
will give us a year to implement meters and have one less variable for our customers as we make the
system changeover.
Despite the 0% rate increase this year, this budget has much -needed investments in our water and sewer
system. We have $1.1 million in equipment replacement and the addition of five new staff, aimed at
improving water quality systems city-wide. Two additional staff are funded in the utility billing side which
is critical as we roll out new meters and continue to grow our customer service support.
Anticipations and Challenges on the horizon beyond
The upcoming FY 19 budget is challenging for operations, as we have described, being very tight and
locked in with essentially 3/4 of General Fund expenditures allocated for wages and benefits. However,
we remain fixed on the horizon to see our young and growing city hit its stride.
City of Pearland, Texas FY 18/19 Budget Transmittal
Page xi
➢ For capital improvements, we are continuing an aggressive plan to keep up with community
needs, leveraging $60 million in future reimbursements to fund improvements within the TIRZ. The
TIRZ #2 from Shadow Creek has been a major transformative success story for Pearland. Shadow
Creek, when the planned development was formed, had about $7 million in total value for its original
boundary. Today, with areas expanded by amendment, the value is $2 billion. In the last decade of the
TIRZ, the captured value, without property owners paying any more, is positioned to leverage
substantive improvements for Pearland. With a TIRZ Budget Amendment for the City Council's August
2018 consideration, there will be available future increment to dedicate for Fire Station #8, a new public
library building, park improvements, and street/sidewalk improvements.
➢ Outside the TIRZ as a part of our CIP, included with a comprehensive investment package, we
are laying the groundwork for a 2019 bond referendum consideration with preliminary engineering work
for those projects. Additional staff added in FY 17 and FY 18, construction managers and senior project
managers, have given us the resources to implement the program effectively and efficiently.
➢ Inside the TIRZ, we are lined up for a reimbursement from TIRZ #2 for prior City expenditure of
Broadway Street improvements within two to four budget years. That is $8 million one-time source can
plug operating holes and catch us up on vehicles and other investments.
➢ If the Federal government expedites reimbursements from Hurricane Harvey from past practices,
and gives us certainty about the reimbursement, we can free additional moneys to invest at mid -year
FY 19, catching us up with critical operational vehicle replacement and streets/sidewalks rehabilitation
needs not included in this budget.
➢ The Clear Creek project, finally funded by the US Army Corps of Engineers, is an obvious win for
the region as Clear Creek is the watershed for nearly all of Pearland and all adjoining Brookside Village.
The Brazoria County areas adjacent to Clear Creek suffered some of the worst structure flooding from
Harvey. There can be little question that the Corp project, hopefully to be led and managed by the
Harris County Flood Control District, will benefit the entire watershed by holding and moderating the
worst of floodwaters.
➢ There will be some change in our structure for high quality fire services into much of our ETJ.
Either there will be agreements for mandatory sufficient payment to the City, or we will be able to pull
back and focus our fire resources to the city limits and areas that do pay.
➢ The FY 19 budget reduces our reinvestment in streets from $1.1M to $454,000. The updated
streets assessment conducted in FY18 shows that our lack of adequate reinvestment over the past four
years has resulted in a decreased Pavement Condition Index (PCI) from 76 to 73. The updated
numbers indicate a required investment of $4.5M annually to keep the PCI at the current 73, to increase
it to 2014 PCI level will take an additional $7.8M annually for the next three years (one point increase
per year). Additional years of deferred recapitalization will result in similar PCI reductions and higher
costs to improve the PCI. The FY 19 plan for street recapitalization is to diversify our portfolio of
maintenance tools to include crack and joint sealing, mill and overlays, street raising, and concrete
panel replacements to extend the existing infrastructure's life instead of allowing it to more rapidly
deteriorate to the point of requiring a complete reconstruction. The use of these additional tools will be
scaled back based on available funding.
➢ The sidewalk program is being reduced from $628,000 to $260,000 while our backlog of work
orders stands at approximately 700. Similar to the street program, additional tools will be implemented
on the sidewalk program to stretch the available funds. With the limited funds, we will concentrate on
maintenance measures such as mudjacking to level surfaces and trip hazard shaving instead of full
panel replacement with the expectation that our backlog of work orders will continue to climb.
➢ Both streets and sidewalks have been reduced to well beyond the bare minimums needed to
sustain our infrastructure. It is of prime importance as we look to the future to reach the minimum levels
City of Pearland, Texas FY 18/19 Budget Transmittal
Page xii
necessary to properly reinvest in our largest assets to keep them at their current condition.
Recommended annual funding levels in 2018 dollars are $4.5M annually for streets and $1.0M for
sidewalks. Significant additional investment beyond the above amounts is required to make any
improvement in the overall condition of these assets.
Here is one final work picture summarizing our dedication to the City of Pearland. It is of our spectacular
Public Works crew when they came to City Hall during National Public Works week. We fondly refer to
this team as "pre -responders" because they are most often there before our first responders. Without
their dedication, we would not have clean water, drivable streets, or sidewalks to walk on.
Conclusion
We opened the expanded Centennial Park and are soon to see the first phase of Independence Park
open. There's a fire station relocation set to open in the next twelve months and the new Shadow Creek
large fire station readying for October 2019. We are adding more police officers and command is
deploying those valuable resources for the best results on a daily basis, in addition to staffing the variety
of specialized police units and support civilians that are critical to field operations. The upcoming budget
year is operationally very tight. However, we are in a strong overall position for serving this dynamic and
diverse community, and we will continue to invest to provide our residents the brightest future possible.
Respectfully submitted,
Clay J. Pearson
City Manager
Note: This Transmittal Letter, originally published on August 1, 2018, was updated on October 11, 2018.
City of Pearland, Texas FY 18/19 Budget Transmittal
Page xiii
THIS PAGE INTENTIONALLY BLANK
FY 2019 ADOPTED BUDGET
READER'S GUIDE TO THE BUDGET
The Fiscal Year 2018-2019 budget document has been prepared and presented in an effort to comply with the
guidelines and recommendations of the Government Finance Officers Association of the United States and Canada
(GFOA) Distinguished Budget Presentation Awards Program. In order to be considered for the budget award, the
following four areas must be included in the budget presentation: (1) the budget as a policy document, (2) the budget
as a financial plan, (3) the budget as an operations guide, and (4) the budget as a communications device. A brief
explanation of these criteria is presented below.
The budget as a policy document. This involves including a statement (or statements) of budgetary policies, goals,
objectives, and strategies for the year and also an explanation of the budgeting process to the reader. Goals,
objectives, and strategies are an integral part of this document, which we believe satisfy this requirement.
The budget as a financial plan. This criterion involves including an explanation of the financial structure and
operations of the City. The City's major revenue sources and fund structures are defined and amplified. The budget
contains an all-inclusive financial plan for all funds and resources of the City, and also includes a multi -year financial
forecast. Included are projections of financial condition at the end of the fiscal year, projections of financial activity,
and historical comparisons. The budget also presents a consolidated picture of all operations and financing activities
in a condensed format. An explanation of the budgetary accounting basis (cash basis, modified accrual basis, or
other acceptable method) was employed in the development of the budget. The budget summary section, as well as
the various fund and department summaries, satisfies this requirement.
The budget as an operations guide. This criterion involves explaining the relationship between organizational units
(departments) and programs. An organizational chart, description of the departmental organizational structure,
services, and staffing levels, with historical comparisons, are also included. Explanations of how capital -spending
decisions will affect operations are offered. These issues are addressed throughout the document.
The budget as a communications device. The budget document is available to the public at the City Secretary's
Office in City Hall and at the Pearland Branch Libraries, as well as on the City's website. As much as possible, we
have avoided the use of complex technical language and terminology, and included charts, graphs, and glossary for
understandability and usability. Efforts are made to explain the basic units of the budget, including funds,
departments or activities, and disclosing sources of revenues and explanations of revenue estimates and
assumptions. This information is contained in the transmittal letter and budget summary sections.
In summary, each of the above four criteria is recognized by the GFOA as an integral part of any budget document
in order to convey to the reader the goals and objectives the City will address during the year and how those goals
and objectives will be met and measured. We have attempted to present these goals and objectives to the reader in
such a manner that any reader, regardless of the reader's financial background or knowledge, will be able to gain a
basic understanding of them.
Organization of the Budget Document
Tab One: Transmittal Letter is meant to outline the highlights of this Budget and some of the objectives the City
hopes to accomplish this Fiscal Year. This section includes the City Manager's budget message to City Council.
Tab Two: Budget Overview is meant to provide readers with a concise overview of some of the most important
pieces of this year's Budget. This section includes a list of funded supplemental requests, summaries for All Funds -
Revenues and Expenditures, Summary All Funds Balances and Cash Equivalents, new positions and staffing levels.
Plus an introduction to Pearland, City demographics and statistics, an area map, the City's Organization Chart, list of
City Management, City Council Strategic Priorities, a Reader's Guide to the Budget, Fund Structure, a matrix of
department relationships to funds, budget objectives and philosophy, and the fiscal year 2019 Budget Calendar. An
overview of the City's property taxes, levy and collections for fiscal year 2019. Historical Assessed Valuation, Taxes
Levied and Taxes Collected, along with Tax Rate Distribution and Principal Taxpayers information are in this section.
1
READER'S GUIDE TO THE BUDGET
Tab Three: Multi -Year Forecast provides a financial forecast for the next two Fiscal Years for the City's major funds.
This section includes the financial forecast for the City of Pearland's major funds over a three-year timeframe, and is
a comprehensive, integrated forecast of the City's Debt Service (DS) Fund, General (GF) Fund, Water and Sewer
(W&S) Fund, and Pearland Economic Development Corporation (PEDC).
Tab Four: Debt Service Fund Section includes an overview of the General Obligation Debt Service Fund, with
revenue and expenditure summaries. Governmental and General Debt Schedules are included, with graphs.
Tab Five: General Fund Section includes an overview comprised of revenue, expenditure and fund balance
information. An expenditure summary for all general fund departments by function. Each functional area begins with
an organizational chart followed by a summary of expenditures by department/function and by category, a staffing
summary and an overview with key budget items, accomplishments, goals and objectives for this Fiscal Year, and
performance measures.
Tab Six: Enterprise Fund Section includes an overview of the Water & Sewer Fund that includes a revenue and
expense summary and beginning and ending cash equivalents. An organizational chart and staffing summary by
department is followed by department overviews with key budget items, accomplishments, goals and objectives for
this Fiscal Year, and performance measures. This section also includes revenue debt schedules and graphs, as well
as an overview of the Solid Waste Fund with revenues and expenses, accomplishments, goals and objectives for this
Fiscal Year and performance measures.
Tab Seven: Capital Project Funds Section includes an overview, a summary schedule of revenues and
expenditures by Capital Project Fund followed by a brief description of each project with annual operating impacts.
Tab Eight: Special Revenue Funds Section includes information on the Special Revenue Funds. Each fund
includes operating revenues and expenditures with beginning and ending fund balances.
Tab Nine: Internal Service Funds Section includes an overview describing each Internal Service Fund —
Property/Liability Insurance and Medical Self -Insurance. The revenue and expense summaries are also included.
Tab Ten: Component Units Section includes a description of Component Units, an organization chart, an overview
of the Pearland Economic Development Corporation (PEDC), a revenue and expenditure summary with fund balance
with staffing summary, accomplishments, goals and objectives for this Fiscal Year and performance measures,
followed by debt to maturity schedules and graph.
Tab Eleven: Appendix includes the City's Charter, Article 8, Municipal Finance; the adopted Tax and Budget
Ordinances; the adopted General Staff, Police and Fire Pay Plans; the adopted Usage and Service Fees Ordinance;
and Developmental Fees Ordinance. Includes statements assembling all of the City's financial policies into one
document. These statements are the tools used to ensure that the City is financially able to meet its current and
future service needs. The individual statements contained within serve as guidelines for both the financial planning
and internal financial management of the City
Tab Twelve: Glossary Section includes the glossary and acronyms.
2
CITY OF PEARLAND
FUND STRUCTURE
The City accounts for revenues and expenditures based on the Fund, an accounting system used by nonprofit
organizations and agencies, particularly governments. Because there is no profit motive, accountability is measured
instead of profitability. The main purpose of the Fund system is stewardship of financial resources to ensure funds
are received and expended in compliance with legal requirements. Funds are established to ensure accountability
and expenditure for designated purposes. Revenues must be raised and expended in accordance with special
regulations and restrictions. The budget is adopted and recorded in the accounts of the related fund.
Total Budget All Funds
General Fund
Water& Sewer
Solid Waste
Enterprise Funds
Debt Service Fund
Grants-CDBG & Other
i
Special Revenue Funds
Regional Detention
Municipal Court,
CourtTechnology&
Juvenile Mgt.
Sidewalk
Lower Kirby
HHotel/Motel Tax/CVB
Police—StateSeizure
& Federal Police
Parks -Development 1
Donations, Tree Trust
Traffic Impact
Municipal Channel -
Public Education&
Government
Internal Service Funds
Capital Project Funds
'rooertyLiabilrtyInsurance
Employee Medical
Insurance
Motor Pool
Component Units
PEDC
TIRZ
HDevelopment Authorrty
3
DEPARTMENT AND FUND RELATIONSHIP
Police
Fire
Public
Works
Parks &
Recreation
Community
Development
Community
Services
Finance
General
Government
General Fund
X
X
X
X
X
X
X
Enterprise Funds
Public Works
Administration
X
Water/Sewer Grounds
X
Lift Stations
X
Water Reclamation
X
Water Production
X
Distribution & Collection
X
Construction
X
Water Meter Services
X
Backflow
X
Pre -Treatment FOG
X
Utility Customer Service
(Billing)
X
Information Technology
X
Other Requirements/City-
Wide
X
Solid Waste
X
Special Revenue Funds
Hotel/Motel Occupancy
Tax
X
Court Security
X
City -Wide Donations
X
X
X
Court Technology
X
Park Donations
X
Tree Trust
X
Police State Seizure
X
Police Federal
X
Parks Development
X
Sidewalk
X
Grants
X
Community Development
Block Grant
X
Court Juvenile
Management
X
Municipal Channel
X
4
Fund Title
CITY OF PEARLAND
LIST OF FUNDS
Fund
Title
100 General Fund
200 Debt Service Fund
305 Hotel/Motel Occupancy Tax
310 Municipal Court Security
315 City Wide Donation Fund
320 Court Technology
325 Street Assessment
330 Park Donations
331 Tree Trust Fund
335 Police State Seizure Fund
336 Federal Police Fund
340 Park & Rec Development Fund
345 Sidewalk Fund
350 Grant Fund
351 Community Development Block Grant (CDBG)
360 Traffic Impact Improvement
365 Court Juvenile Management Fund
370 Municipal Channel (Peg)
380 Regional Detention Fund
500 Capital Projects - Pay as You Go
501 Certificates of Obligation
502 General Obligation 2001
503
504
505
506
510
550
555
560
565
570
575
600
610
700
701
702
703
800
810-812
820-830
900
920
930
Certificates of Obligation 2006
Certificates of Obligation 2007
General Obligation 2008
General Obligation
Lower Kirby Urban Center
W/S Impact Fee Fund
Shadow Creek Impact Fee
Certificates of Obligation 1998
Revenue Bonds - 1999 & 2003
Water/Sewer Pay As You Go
MUD 4 Capital Program
Water Sewer Fund
Solid Waste Fund
Property Liability Insurance Fund
Employee Benefits Fund
Medical Self Insurance Fund
Motor Pool Fund
Long Term Debt
Fixed Assets
Long Term Debt - DAP & PEDC
Economic Development Fund (PEDC)
Development Authority Fund (DAP)
TIRZ #2 Shadow Creek
5
BUDGET OBJECTIVES AND PHILOSOPHY
BUDGET OBJECTIVES
The FY 2019 budget has been prepared in an effort to clearly communicate to the citizens and staff of the City the
overall policies and goals of the City Council and City Management and who we are and what we do, thereby enabling
the reader to gain valuable information about the City without requiring detailed accounting or budgetary knowledge.
The budget document includes descriptions of various activities and programs (departments) of the City and
comparative performance indicators for each program or activity, where available.
BUDGET PHILOSOPHY
Budget philosophy varies from organization to organization, depending upon the local needs and concerns of the
citizens. Other factors also affect budget philosophy, such as the state of the local economy, the needs of the
organization, the demands of the public for increased services, unfunded mandates and requirements of federal and
state regulatory agencies. The budget prepared by the City takes a conservative perspective with regard to both
revenues and expenditures. Although historical comparison and trends are very useful, current data and trends will
sometimes take precedence over prior year trends. This means budgeting from a "conservative" perspective in that
revenues are often anticipated either at or slightly above prior levels, unless there are other known factors that will
significantly affect anticipated revenues. In addition, expenditures are also estimated conservatively (i.e., allowances
are projected regarding cost increases or anticipated expenditures, such as annexation of ETJ into the City). As a
result, over the years this method has resulted in substantial increases in actual fund reserves when compared to
budgeted or projected fund reserves. The City continues to use this method of budgeting rather than use
unreasonable projections, which could have an adverse impact on the City's reserves.
BASIS OF BUDGETING AND ACCOUNTING
The financial information presented in the FY 2019 budget is similar to information presented in previous budget
documents. The accounting and financial treatment that applies to a fund is determined by its measurement focus.
All governmental funds are accounted for using a current financial resources measurement focus.
BASIS OF BUDGETING
GOVERNMENTAL FUNDS
The governmental fund types use the modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are budgeted when they are measurable and available and expenditures are budgeted in the
period in which the liability is incurred, which is in accordance with Generally Accepted Accounting Principles.
"Measurable" means the amount of the transaction can be determined and "available" means the collectible period.
The City considers the majority of its major revenues as available when collected. Expenditures are recorded when
the related fund liability is incurred. Principal and interest on general long-term debt are recorded as liabilities when
due.
Those revenues susceptible to accrual under the modified accrual method are property taxes and other taxes,
intergovernmental revenue, and interest revenue. Licenses and permits, including fines and forfeitures revenues, are
not susceptible to accrual because generally they are not measurable until received in cash.
The fund balance approach of governmental funds or working capital approach can be identified as current assets
less current liabilities. Governmental funds budget capital outlays as expenditures, but do not budget for non -cash
expenditures such as accruals for sick and vacation liabilities and depreciation.
PROPRIETARY AND INTERNAL SERVICE FUNDS
The Water and Sewer Enterprise Fund, Solid Waste Fund, and Property Insurance Fund are budgeted using a flow
of economic resources, which is similar to the accrual basis of accounting, with exceptions listed below. Available
balances are determined using the cash equivalent approach: cash + investments + accounts receivable + prepaid
expenses — accounts payable = cash equivalent available.
6
BASIS OF BUDGETING AND ACCOUNTING
• Revenues are budgeted in the period they are earned and measurable,
• Expenses are budgeted in the period in which the liability was incurred,
• Depreciation of assets is not budgeted,
• Capital outlay is budgeted as an expense in the year purchased,
• Principal payments are budgeted as an expense rather than a reduction to the liability,
• Proceeds from bond sales are budgeted as revenue, and
• Transfer of bond proceeds to the Capital Projects Fund is budgeted as an expense.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All
governmental and fiduciary funds are accounted for using the modified accrual basis. Revenues are recognized in
the accounting period when they are measurable and available. Revenues subject to accrual include interest income
and charges for services. Expenditures are recognized in the accounting period in which the liability is incurred, if
measurable. Capital outlays are recorded as additions to fixed assets at fiscal year-end and the cost of those assets
are depreciated over their estimated useful lives for the government -wide financial statements.
All proprietary funds are accounted for on an accrual basis. Revenues are recognized in the period in which they are
earned and become measurable and expenses in the period in which they are incurred and measurable. Proprietary
funds also record depreciation and amortization. Payment of principal is recorded as a reduction to the long-term
liability.
GOVERNMENT -WIDE FINANCIAL STATEMENTS (GASB 34)
The City of Pearland fully implemented government -wide financial statements with the year ended September 30,
2007. The government -wide statements present information about the City in a manner similar to those used by
private sector companies. These statements, which can be found in the City's Annual Comprehensive Finance
Report, include all assets and liabilities on an accrual basis of accounting, which is similar to the basis of accounting
used by most private sector entities. The City has realized no impact to the annual budget based on the new reporting
model.
BUDGET PROCEDURES
The budget process begins with the distribution of budget instructions to the department heads. Each department
receives instructions for its respective operations, personnel requirements, and capital outlay. The budget
worksheets used in the budgeting process contain: 2-prior year actuals, current year original budget, current year
amended budget, current year actuals to date, current year projected expenditures, next fiscal year base budget, and
next fiscal year supplemental request, for a next year total request. This financial information is to be used by the
department heads as a guide to complete the proposed budget. It is assumed that the prior year's financial needs
are responsible indicators of future base financial needs and the budget is projected on this basis.
For FY 2019, departments' base operating budgets were calculated by the Budget Office and were based off of FY
2017 actual expenditures, less non -recurring expenditures, plus known impacts, such as operating costs from
completed capital projects. Departments then allocated their base budget amount to their individual line items.
Supplemental requests for capital, annexation, growth and development or other items that do not fit within normal
operating budgets are requested and justified separately. Upon completion of the proposed budget, department
heads submit their budget request to the Budget Office for review, after which the budget is submitted to the City
Manager for review and approval. The City Manager meets with his direct reports to discuss and make adjustments
where needed.
The Budget Office prepares the revenue budget, with review by appropriate departments, Director of Finance and
City Manager. Property tax revenue is budgeted using data provided in the preliminary or certified tax rolls received
from the Brazoria, Fort Bend and Harris County Appraisal Districts. All other revenues are budgeted with the use of
comparative financial information provided by the prior year's actual revenue, current year estimated revenue, and
known factors that may affect receipt of revenue.
The City Manager and Director of Finance then submit a balanced budget of expenditures and revenues to the City
Council for review through a series of budget workshop sessions.
BUDGET PROCEDURES
The following procedures are followed for formal adoption of the budget:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1, which must be adopted by the last regularly scheduled Council
meeting in September. The operating budget includes proposed expenditures and the means of
financing them.
2. Public notices and hearings are conducted pursuant to state law.
3. The budget is legally enacted through passage of an ordinance.
4. The legal level of control is the total approved budget for each fund.
5. All funds are included in the budget development process and submitted to the Council for adoption
each year and are monitored by department administrators and budget analysts during the year.
These funds include the General Fund, Capital Improvement Fund(s), Special Revenue Funds, Debt
Service Funds, Water and Sewer Fund, Solid Waste Fund, Internal Service Funds, and the Economic
Development Corporation Fund.
6. Operating fund appropriations lapse at year-end.
7. See the Pearland City Charter, Article 8, in the Appendix section for further budget procedures and
rules for the adoption of the budget.
PROCEDURE TO AMENDING THE BUDGET
EMERGENCY APPROPRIATIONS:
At any time in any fiscal year, the Council may make emergency appropriations to meet a pressing need for public
expenditure, for other than regular or recurring requirements, to protect the public health, safety or welfare. Such
appropriations shall be by ordinance adopted by the majority vote of the Council members at one special or regular
meeting.
TRANSFER OF APPROPRIATIONS:
At any time during the fiscal year, the City Manager may approve an amendment to the budget that transfers part or
all of any unencumbered appropriation balance among programs within a department, division, or office, upon written
request by department heads. The City Council must approve any budget amendments that increase or decrease
the appropriation for any fund.
Please see Appendix for additional information regarding the City's Financial Policies
8
FY19 Budget Highlights
Pt4,„
PE AND
Even with tight budget constraints, the City maintains
money for its commitment to Public Safety,
increasing budget to $40M to increase the number of
Police Officers and Firefighters.
In order to remain within a tight operating budget, the
City is planning steep reductions to fleet
replacements and street and sidewalk rehabilitation in
the next fiscal year.
While it is not a big budget item there has been significant
invesment in hardware and training for emergency preparedness,
and significant capital improvements to make sure City employees
are prepared to respond effectively to any emergency.
73% of the budget is allocated to salaries
and wages because City Employess like police, fire,
public works and parks and recreation are the people
delivering services to Pearland everyday.
, pu. Ic wor s 1.7M), and safety
($235K) facilities that support the quality of
life that Pearland residents deserve.
Water rates will remain flat i
production costs. This is possible due to increasing
population and sound financial and operational
stewardship of the City's system.
OSALARIES & WAGES
OTHER / MISC.
FLEET, EQUIPMENT & MATERIALS
@BUILDING & GROUNDS/
MIM
OCAPITAL OUTLAY/
COMMUNITY SERVICES
PARKS AND REC GENERAL GOVERNMENT PUBLIC WORKS PUBLIC SA=
ETY
9
For more budget info please visit: pearlandtx.gov/FY19Budget
CITY OF PEARLAND
FY 2019 FUNDED SUPPLEMENTAL REQUESTS BY
STRATEGIC PRIORITY
Strategic Priority / General W/S Other
Division Supplemental Request Funded Fund Fund Funds Total
Healthy Economy
Engaged Community
Convention & Visitors Bureau
Safe Community
Fire
Fire
Sub -Total
Train Depot Renovation to rehabilitae the space and create museum and
meeting space funded from Hotel Occupancy Tax Revenue
500,000 500,000
Sub -Total 500,000 500,000
Continuous On -Boarding (Starting Q3) - 3 new Firefighters starting Q3 and
3 new fire fighters starting Q4 towards meeting Citygate recommendations
City-wide Position -Specific Incident Command Systems (ICS) Training for
staff in leadership positions
Fire Start-up Costs associated with opening of new Fire Station #1 20,000 20,000
4 Police Officers - Patrol (includes vehicle and equipment) 2 for 9 months
Police and 2 for 3 months), Berkshire recommended to meet benchmark 285,010 285,010
response times
241,569 241,569
Sustainable Infrastructure
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Fiscally Responsible
Utility Billing
Utility Billing
Parks, Recreation & Events
Parks & Recreation
10,000
10,000
Sub -Total 556,579 556,579
Backflow Compliance Inspector (9 months) with Vehicle to expand program
in accordance with State requirements
Distribution & Collections Maintenance Workers (9 months) (2) w/Vehicle
to augment Waterline Maintenance Program scouring to improve water
quality city-wide
Distribution & Collections Crew Leader (9 months) wNehicle to provide
supervison of the Waterline Maintenance Program
Distribution & Collections Backhoe for Waterline Maintenance Crew
Waste Water Forklift for use at new Reflection Bay Surface Water
Treatment Plant
Pretreatment Technician (9 months) to meet target of industrial inspections
every 6 months
Sub -Total
Customer Service Rep II (2) (1 for 12 months, 1 for 9 months) to keep up
with anticipated increased call volume with the roll -out of AMI meters
Lead Billing Specialist - reclassification of existing position to develop
ongoing training modules for technical management of the equipment
utilized in the billing process
Sub -Total
Park Naturalist (9 months) needed to staff new Delores Fenwick Nature
Center
Sub -Total
Note - A full list of supplemental requests is located in the appendix section
90,268
170,308
90,268
170,308
98,440 98,440
90,000 90,000
35,000 35,000
89,403 89,403
573,419 573,419
93,654 93,654
17,000 17,000
110,654 110,654
46,935 46,935
46,935 46,935
Total 603,514 684,073 500,000 1,787,587
10
CITY OF PEARLAND
FY 2019 FUNDED NEW POSITIONS BY
FUND / DIVISION
Net FTE
Fund / Division Position Title Change
General Fund
Fire Firefighters 6.0
Police Police Officers including vehicles 4.0
Parks Park Naturalist (9 Months) 1.0
Engineering Assistant City Engineer 1.0
Sub -Total 12.0
Enterprise Fund
Finance Customer Service Representative II 2.0
Public Works Backflow Inspector (9 Months) 1.0
Public Works Maintenance Crew Leader (9 Months) 1.0
Public Works Utility Maintenance Worker (9 Months) 2.0
Public Works Pretreatment Technician (9 Months) 1.0
Sub -Total 7.0
Total 19.0
Note - A full list of supplemental requests is located in the appendix section
11
CITY OF PEARLAND
FISCAL YEAR 2019 BUDGETED
POSITIONS BY DEPARTMENT
Function/Department
FULL-TIME POSITIONS
PART-TIME POSITIONS
FY 2019
FY 2017
FY 2018 FY 2019
FY 2017 FY 2018 FY 2019
Total
AMENDED
AMENDED CHANGE BUDGETED
AMENDED AMENDED CHANGE BUDGETED
FTE
General Government
City Manager
5.0
5.0
5.0
2.0
2.0
2.0
6.0
City Secretary
4.0
4.0
4.0
4.0
Finance
18.0
16.0
16.0
1.0
1.0
1.0
16.5
Utility Customer Services
13.0
16.0
2.0
18.0
2.0
1.0
1.0
18.5
Human Resources - GF
8.5
8.5
8.5
8.5
Human Resources - Prop/Liab Ins
0.5
0.5
0.5
0.5
Information Technology - GF
9.0
11.5
11.5
11.5
Information Technology - W&S
4.0
4.5
4.5
4.5
Legal
5.0
5.0
5.0
1.0
1.0
1.0
5.5
General Government Total
67.0
71.0
2.0
73.0
6.0
5.0
5.0
75.5
Public Safety
Fire Dept. Administration
10.0
10.0
10.0
2.0
2.0
2.0
11.0
Fire Operations*
93.0
99.0
6.0
105.0
34.0
34.0
34.0
122.0
Fire Marshal
8.0
7.0
7.0
1.0
1.0
1.0
7.5
Fire Emergency Management
1.0
2.0
2.0
2.0
Fire Health & Code Enforcement
8.0
8.0
8.0
8.0
Police Administration
8.0
9.0
9.0
9.0
Police -Patrol
120.0
119.0
4.0
123.0
123.0
Police -Investigations
28.0
27.0
27.0
27.0
Police -Community Services
7.0
8.0
8.0
8.0
Police-Coummunications/Records
26.0
28.0
28.0
7.0
7.0
7.0
31.5
Police -Jail
15.0
16.0
16.0
16.0
Police -Commercial Vehicle Enforcement
2.0
2.0
2.0
2.0
Police -School Resource Officer
12.0
12.0
12.0
12.0
Animal Services
10.0
10.0
10.0
1.0
1.0
1.0
10.5
Public Safety Total
348.0
357.0
10.0
367.0
45.0
45.0
45.0
389.5
Public Works
Engineering & Capital Projects Admin.
Traffic Management
0.0
0.0
4.0
4.0
4.0
Engineering
14.0
14.0
14.0
14.0
Capital Projects
12.0
13.0
13.0
13.0
Public Works Administration - GF
2.0
2.8
2.8
2.8
Public Works Administration - W&S
8.3
8.5
(1.0)
7.5
7.5
Facilities Maintenance
5.7
5.7
5.7
5.7
Custodial Services
3.0
3.0
3.0
3.0
Fleet Maintenance
4.0
6.0
6.0
6.0
Streets & Drainage
16.0
16.0
16.0
16.0
Grounds Maintenance - GF
2.6
4.5
3.0
7.5
7.5
Grounds Maintenance - W&S
6.4
4.5
4.5
4.5
Traffic Operations
6.0
6.0
(6.0)
0.0
0.0
Lift Stations
7.0
7.0
7.0
7.0
Wastewater Treatment
15.0
15.0
(2.0)
13.0
13.0
Water Production
15.0
16.0
16.0
16.0
Distribution & Collection
24.0
24.0
3.0
27.0
27.0
W&S Construction
8.0
10.0
10.0
10.0
Meter Services
7.0
7.0
7.0
7.0
Pre -Treatment FOG
3.0
3.0
3.0
Backflow Compliance
1.0
2.0
3.0
3.0
Public Works Total
156.0
164.0
6.0
170.0
170.0
* Fire Operations- PT Firefighters are pooled positions based on number of hours, not positions.
** Parks Aquatics and Recreation Operations - PT Lifeguards Rec Attendents are pooled positions based on number of hours, not positions.
12
CITY OF PEARLAND
FISCAL YEAR 2019 BUDGETED
POSITIONS BY DEPARTMENT
FULL-TIME POSITIONS
PART-TIME POSITIONS
FY 2019
Function/Department
FY 2017 FY 2018 FY 2019
FY 2017 FY 2018 FY 2019
Total
AMENDED AMENDED CHANGE BUDGETED
AMENDED AMENDED CHANGE BUDGETED
FTE
Community Services
Municipal Court - GF
11.5 11.5 11.5
1.0 1.0 1.0
12.0
Municipal Court Special Funds
1.5 1.5 1.5
1.0 1.0 1.0
2.0
Communications
4.0 4.0 4.0
1.0 1.0 1.0
4.5
Community Services
Community Develop. Admin.
4.0 5.0 5.0
5.0
Planning
6.0 6.0 6.0
6.0
Permits & Inspections
18.0 16.0 16.0
16.0
Community Services Total
45.0 44.0 44.0
3.0 3.0 3.0
45.5
Parks & Recreation
Parks Administration
6.0 8.0 8.0
8.0
Parks & Rec. Resource Development
Parks
25.0 24.0 24.0
24.0
Recreation
11.0 3.0 3.0
56.0 14.0 14.0
10.0
Natural Resources
3.0 2.0 1.0 3.0
3.0
Athletics
2.0 3.0 3.0
4.0 4.0 4.0
5.0
Aquatics**
2.0 2.0
1 28.0 28.0
16.0
Special Events
2.0 2.0 2.0
2.0
Senior Programs
3.0 3.0 3.0
3.0 3.0 3.0
4.5
Recreation Operations**
4.0 4.0
27.0 27.0
17.5
Parks & Recreation Total
52.0 51.0 1.0 52.0
63.0 76.0 76.0
90.0
Other Funds
Economic Development
5.0 6.0 6.0
6.0
Convention & Visitors' Bureau
3.0 3.0 3.0
i 1.0 1.0 1.0
I 3.5
Other Funds
8.0 9.0 9.0
1.0 1.0 1.0
9.5
ALL FUNDS
General Fund
558.2 571.5 12.0 583.5
114.0 127.0 127.0
647.0
Water & Sewer Fund
107.8 113.5 7.0 120.5
2.0 1.0 1.0
121.0
Total Other Funds
10.0 11.0 11.0
2.0 2.0 2.0
12.0
Grand Total
676.0 696.0 19.0 715.0
118.0 130.0 130.0
780.0
Change from FY 2018 to FY 2019 19
* Fire Operations- PT Firefighters are pooled positions based on number of hours, not positions.
** Parks Aquatics and Recreation Operations - PT Lifeguards Rec Attendents are pooled positions based on number of hours, not positions. 13
900.0
800.0
City of Pearland
Full -Time Equivalent Staff to
Population
FY2015-FY2019
-
-
- 140,000
- 120,000
700.0
600.0
F- 500.0
u
400.0
300.0
200.0
100.0
-
-
-
-
-
-
=
- 100,000
c
o
80,000 co
a
60,000 0-
- 40,000
- 20,000
0.0 - i i 1 0
2014-15 2015-16 2016-17 2017-18 2018-19
O Employees Population
Fiscal Year
FTE
Population
No. of Positions
Per 1,000 Population
2014-15
704.5
108,800
6.48
2015-16
709.0
115,600
6.13
2016-17
735.0
119,700
6.14
2017-18
761.0
121,500
6.26
2018-19
780.0
125,000
6.24
City of Pearland
Service (FTEs) by Service Area
6.0
FY 2019
389.5
75.5
170.0
90.0
45.5
3.5
FY 2018
379.5
73.5
164.0
89.0
45.5
N 6.0
3.5
FY 2017
370.5
70.0
156.0
83.5
46.5
5.0
3.5
oPublic
oParks
•Convention
Safety oGeneral Government oPublic Works
& Recreation 0Community Services 0Economic Development
& Visitors' Bureau
14
REVENUES
CITY OF PEARLAND
FY 2019 ADOPTED BUDGET
SUMMARY ALL FUNDS
REVENUES AND EXPENDITURES
FY2017
ACTUAL
FY2018
ORIGINAL
BUDGET
FY2018
YEAR END
AMENDED
FY2019
ADOPTED
BUDGET
Property Taxes
Sales Taxes
Franchise Fees
Licenses and Permits
Fines and Forfeitures
Charges For Services
Interest Income
Hotel/Motel Occupancy Tax
Bond/Lease Proceeds
Grant Revenue
Miscellaneous
Other Revenue Sources
TOTAL REVENUES
$50,386,963
$30,621,844
$7,263,341
$5,473,409
$2,653,342
$81,207,154
$965,002
$1,421,958
$105,425,411
$11,467,844
$4,700,901
$6,477,183
$308,064,353
$55,496,643
$32,124,462
$7,420,000
$5,710,150
$2,710,950
$84,274,757
$947,360
$1,450,000
$61,664,823
$18,662,053
$2,677,929
$12,000
$273,151,127
$54,750,728
$32,663,239
$7,424,583
$4,631,094
$2,462,450
$86,071,268
$2,860,299
$1,590,000
$50,542,154
$44,186,603
$4,966,591
$6,816,594
$298,965,603
$57,833,973
$33,989,580
$7,571,694
$3,905,535
$2,266,250
$89,517,298
$2,354,793
$1,450,000
$70,047,605
$41,479,183
$2,854,669
$12,000
$313,282,580
Transfers from Other Funds
TOTAL AVAILABLE RESOURCES
$92,466,072
$400,530,424
$11,725,961
$284,877,088
$27,286,386
$326,251,989
$16,550,589
$329,833,169
EXPENDITURES
General Government
Public Safety
Community Services
Public Works
Parks & Recreation
Utility Billing
Debt Service
Construction'
Insurance Coverage
Economic Development Corporation
Other2
TOTAL EXPENDITURES
$11,835,077
$44,516,592
$3,932,789
$43,070,916
$6,704,792
$1,410,743
$109,247,137
$40,103,002
$8,117,250
$2,790,307
$12,677,119
$284,405,723
$12,427,472
$42,935,108
$4,130,991
$43,934,668
$6,305,101
$1,366,736
$47,962,111
$84,917,146
$8,936,912
$8,248,524
$9,577,591
$270,742,360
$11, 921, 583
$44,272,980
$4,187,546
$46,498,135
$6,848,606
$1,497,716
$47,820,510
$221,060,410
$8,725,959
$3,593,014
$14,449,054
$410,875,513
$12, 243, 344
$45,295,805
$4,213,784
$48,565,156
$7,258,141
$1,644,923
$63,585,932
$136,705,638
$9,103,591
$5,007,496
$19,115,311
$352,739,121
Transfers to Other Funds $92,466,107
TOTAL EXPENDITURES AND OTHER USES $376,871,830
Revenues Over/(Under) Expenditures 23,658,594
$16,903,900
$287,646,260
(2,769,172)
$22,065,959
$432,941,472
(106,689,483)
$14,196, 642
$366,935,763
(37,102,594)
'Capital projects are budgeted for project length. Construction is based on annual funding and not dollars spent.
20ther includes expenditures for Special Revenue Funds, excluding transfers.
15
Other Revenue Sources
Hotel/Motel Occupancy Tax
Fines and Forfeitures
Interest Income
Miscellaneous
Licenses and Permits
Franchise Fees
Transfers from Other Funds
Sales Taxes
Grant Revenue
Property Taxes
Bond/Lease Proceeds
Charges For Services
0.0%
Utility Billing
Community Services
Economic Development Corporation
Parks & Recreation
Insurance Coverage
General Government
Transfers to Other Funds
Other
Public Safety
Public Works
Debt Service
Construction
CITY OF PEARLAND
FY 2019 ADOPTED BUDGET
SUMMARY ALL FUNDS
REVENUES AND EXPENDITURES
Revenue Summary All Funds
Adopted FY 2019 Budget
0.0%
0.4 %
0.7%
0.7%
0.9%
.2.0%
2.3%
5.0%
5.0%
10.0%
15.0%
Expenditure Summary All Funds
Adopted FY 2019 Budget
0.5%
1.1%
1.4%
2.0%
2.5%
3.3%
3.9%
5.2%
1
1
2.3%
3.2%
�17.3
0/0
20.0%
25.0%
0/0
30.0%
3
3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.W°
FUND
CITY OF PEARLAND
FY 2019 ADOPTED BUDGET
ANALYSIS OF FUND BALANCE AND CASH EQUIVALENT;
SUMMARY ALL FUNDS
FY 2019
ADOPTED
BEG BALANCE
FY 2019
ADOPTED
REVENUES
FY 2019
ADOPTED
EXPENDITURES
FY 2019
ADOPTED
END BALANCE
General Fund
Debt Service Fund
Special Revenue Funds
Proprietary Funds
Capital Project Funds
Internal Service Funds
PEDC Fund
TOTAL
$ 11,886,007
6,832,501
7,492,820
22,286,042
35,515,406
2,754,175
22,933,931
$ 109,700,882
$ 80,793,874
37,918,371
2,748,042
62, 901,199
120,823, 357
12,917,945
11,730,381
$ 329,833,169
$ 80,424,112
38,941,094
3,292,676
61,116, 720
142,515,642
12,887,778
27,757,741
$ 366,935,763
$ 12,255,769
5,809,778
6,948,186
24,070,521 *
13,823,121
2,784,342
6,906,571
$ 72,598,288
*Exclusive of $4,356,022 reserved for debt service pursuant to bond covenants.
FUND
SPECIAL REVENUE FUNDS
FY 2019
ADOPTED
BEG BALANCE
FY 2019
ADOPTED
REVENUES
FY 2019 FY 2019
ADOPTED ADOPTED
EXPENDITURES END BALANCE
305 Hotel/Motel Occupancy Tax
310 Court Building Security
315 Citywide Donation
320 Court Technology
325 Street Assessment*
330 Park Donations
331 Tree Trust
335 Police State Seizure
336 Federal Police
340 Park Development
345 Sidewalk
350 Grant Fund
351 Community Development Block Grant
360 Traffic Improvement
365 Court Juvenile Management
370 Municipal Channel
380 Regional Detention*
510 Lower Kirby*
TOTAL
$ 4,587,786 $
14,332
26,683
(584)
58,378
413,217
225,097
83,657
894,248
6,388
147,692
597,929
21,101
669,187
(252,291)
1,460,800 $
43,700
30,967
50,003
128,000
7,800
4,000
76,200
138,000
5,005
58,866
390,001
7,500
62,200
285,000
1,530,225 $
51,006
39,673
38,171
122,500
50,750
37,200
749,154
4,220
58,791
390,001
1,141
61,444
158,400
4,518,361
7,026
17,977
11,248
63,878
370,267
191,897
159,857
283,094
7,173
147,767
604,288
21,857
795,787
(252,291)
$ 7,492,820 $ 2,748,042 $
3,292,676 $ 6,948,186
* These Funds have no budgeted activity for FY 2019
17
CITY OF PEARLAND
FY 2019 ADOPTED BUDGET
ANALYSIS OF FUND BALANCE AND CASH EQUIVALENT
FUND
PROPRIETARY FUNDS
FY 2019 FY 2019
ADOPTED ADOPTED
BEG BALANCE REVENUES
FY 2019 FY 2019*
ADOPTED ADOPTED
EXPENDITURES END BALANCE
600 Water & Sewer Fund
610 Solid Waste Fund
TOTAL
*Net of any reserve requirements.
FUND
$ 23,440,374 $ 55,197,384
(1,154,332) 7,703,815
$ 22,286,042 $ 62,901,199
$ 53,416,720 $ 20,865,016 *
7,700,000 (1,150,517)
$ 61,116,720 $ 19,714,499
CAPITAL PROJECT FUNDS
FY 2019 FY 2019
ADOPTED ADOPTED
BEG BALANCE REVENUES
FY 2019 FY 2019
ADOPTED ADOPTED
EXPENDITURES END BALANCE
500 Capital Projects General
501 Capital Projects -CO
503 Certificates of Obligation Series 2006
506 Capital Projects -GO
550 Utility Impact Fee Fund
555 Shadow Creek Impact Fee
560 Certificates of Obligation 1998
565 W & S Revenue Bonds
570 Water/Sewer Pay As You Go CIP
575 MUD 4 Capital Program
TOTAL
FUND
$ 926,916
3,412,567
14,625
4,155,866
24,329,730
1,431,825
405,721
837,728
428
$ 10,000
27,487,518
54,065,839
29,990,000
260,000
6,085,000
2,925,000
$ 390,245
36,630,645
3,916
57,609,494
37,234,738
700,000
6,257,916
3,688,688
$ 546,671
(5,730,560)
10,709
612,211
17,084,992
991,825
232,805
74,040
428
$ 35,515,406 $ 120,823,357 $
142,515,642 $ 13,823,121
INTERNAL SERVICE FUNDS
FY 2019 FY 2019 FY 2019 FY 2019
ADOPTED ADOPTED ADOPTED ADOPTED
BEG BALANCE REVENUES EXPENDITURES END BALANCE
700 Property Liability Insurance
702 Medical Self -Insurance
703 Motor Pool Fund
TOTAL
$ 150,437 $ 1,433,425 $
2,603,738 7,765,280
0 3,719,240
1,441,259 $
7,747,279
3,699,240
142,603
2,621,739
20,000
$ 2,754,175 $ 12,917,945 $
12,887,778 $ 2,784,342
PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC)
FUND
FY 2019
ADOPTED
BEG BALANCE
FY 2019
ADOPTED
REVENUES
FY 2019 FY 2019
ADOPTED ADOPTED
EXPENDITURES END BALANCE
900 Economic Development Fund $ 22,933,931 $ 11,730,381 $ 27,757,741 $ 6,906,571
TOTAL $ 22,933,931 $ 11,730,381 $ 27,757,741 $ 6,906,571
18
Pearland, Texas
Where Town and Country Meet
The City of Pearland, Texas was incorporated in December 1959 and adopted a Home Rule Charter on February 6,
1971, and is a home -rule City operating under a Council -Manager form of government. Policy -making and legislative
authority are vested in a governing Council consisting of the mayor and 7 other members. The Mayor and Council
members are elected at -large, and each of them hold office fora period of three consecutive years. Council members
are limited to two full consecutive terms in office, and there is no term limitation on the office held by the Mayor. The
City Manager is appointed by Council and is responsible for implementation of Council priorities and day-to-day
management of all City operations.
The City provides a full range of municipal services, including public safety, wastewater treatment, street maintenance
and repairs, road construction and improvements, and two libraries through a cooperative effort between the City of
Pearland and Brazoria County.
Located across the northern end of Brazoria County, and sharing a common border with Houston, Texas to the north,
Pearland is the fastest growing City in Brazoria County. From 2000 to 2018, based on U.S. Census population and
the City of Pearland Planning Department statistics, Pearland's population increased from 46,058 to 125,000, making
it consistently one of the fastest growing cities in Texas each year. The total area of the City is 68.93 square miles,
48.31 within City limits, and 20.62 in the Extra -Territorial Jurisdiction (ETJ).
Pearland's location, coupled with its expressed goals of long-term planned growth, is propelling the City's rapid
economic growth and development, from $6.3 billion net taxable property valuation in 2010 to $10.9 billion in 2018,
a 73% increase. Based on economic data from the U.S. Bureau of Labor Statistics, Pearland ranked 7th in the nation
for fastest growing cities.
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
46,058
1
Pearland Population Growth
63,945
2000 2005
90,872
112,300
121,500
2010 2015 2018
19
CITY OF PEARLAND
DEMOGRAPHICS
INCOME POPULATION
65% OF HOUSEHOLDS
HAVE INCOMES
OVER $75,000
125,000
ESTIMATED 2018 PEARLAND
POPULATION
AGE DISTRIBUTION UNEMPLOYMENT RATE
0-14 15-24 25-44 45-64 65+
25% 11% 32% 23% 9%
4.5%
MEDIAN AGE: 34.7 UNEMPLOYMENT
EDUCATION INCOME
45.7 BACHELOR'S DEGREE
OR HIGHER
$95,954
MEDIAN HOUSEHOLD INCOME
HOMEOWNERS HOME VALUE
75.3% OF RESIDENTS ARE
HOMEOWNERS
$194,200
MEDIAN HOME VALUE
TOP EMPLOYERS WORKFORCE
PEARLAND INDEPENDENT SCHOOL DISTRICT
KELSEY-SEYBOLD
CITY OF PEARLAND
ALVIN ISD
MEMORIAL HERMAN
MERIT MEICAL
KEMLON
PEARLAND MEDICAL CENTER
DOVER ENERGY
TURBOCARE
30%
12%
EDUCATION, HEALTHCARE
& SOCIAL ASSISTANCE
MANUFACTURING
Source: U.S. Census Bureau, Bureau of Labor Statistics, City of Pearland Planning Department and Pearland Economic Development
20
City of Pearland Comparison City Demographics for Benchmarking
Statistical Category
Houston MSA
'
MI
c
c ° y 3
o c a 7 a
`cn
a °at a Z. >.
0i ri ini U m
City Size (square miles)
61.80 62.21 47.02
32.38
51.29 35.45 34.11
Population Density
1,898 2,915 2,551
2,733
2,045 2,167 3,626
POPULATION (US CENSUS)
2017 Estimate
117,286
181,330
119,940
88,485
104,903
76,804
123,678
%Change (10-13)
IF 0.34r
38.3%
31.4%
12.3%
25.5%
7.0%
23.8%
2010 Census
116,989
131,117
91,252
78,817
83,560
71,802
99,887
% Change (00-10)
246.0%
140.5%
99.8%
83.6%
62.5%
2000 Census
33,808
54,518
45,681
65,697
45,517
65,332
61,484
IINANCIAL CHARACTERISTICS (FY17 CAFR, UNLESS OTHERWISE NOTED)
Credit Rating (Moody's)
Aa1
Aaa
Aa2
AAA
Aa2
Aa2
Aa1
Credit Rating (S&P)
AA+
AAA
AA
AAA
AA
AA
AA+
Total Net Position (in thousands)
$ 1,237,908
$ 1,077,432
$ 731,177
$ 667,402
$ 512,913
$ 296,641
$ 835,837
Operating Rate*
0.2934
0.3756
0.2791
0.1813
0.4138
0.4576
0.2981
Debt Tax Rate*
0.1532
0.1646
0.4300
0.1363
0.1500
0.3544
0.1219
Total Property Tax Rate*
0.4466
0.5402
0.7091
0.3176
0.5638
0.8120
0.4200
Total Sales Tax Revenue (in
thousands
$ 40,409
$ 27,118
$ 31,976
$ 41,830
$ 17,656
$ 24,051
$ 64,210
Sales Tax Revenue Per Resident
$ 345
$ 150
$ 267
$ 473
$ 168
$ 313
$ 519
DEMOGRAPHICS (2010 Census) T
' I
Senior Citizens (x>65)
6.6%
8.5%
8.9%
12.2%
8.7%
11.1%
6.8%
Juveniles (x<18)
34.6%
32.8%
30.4%
26.3%
29.4%
32.2%
32.8%
Foreign Born Persons
17.0%
13.0%
16.5%
34.4%
9.0%
18.2%
13.8%
Language Other Than English
Spoken at Home
23.9%
19.9%
28.6%
44.3%
17.4%
39.2%
28.3%
Race -- White
72.4%
79.1%
62.3%
50.6%
80.8%
65.9%
77.3%
Race -- African American
7.2%
11.4%
17.1%
7.4%
7.6%
18.4%
10.1%
Race -- Asian
13.7%
4.9%
13.4%
37.6%
5.6%
1.6%
6.0%
Race -- Hispanic**
12.6%
19.2%
21.5%
10.3%
18.5%
43.7%
30.2%
HOUSING AND EDUCATION (2010 Census / 2012 American Community Survey)
i
Homeownership Rate
74.8%
67.7%
76.7%
81.9%
72.1%
57.5%
60.8%
Persons Per Household
2.99
2.91
2.91
3.03
2.77
2.86
3.11
Median Household Income
> 117,642
$ 83,257
$ 95,972
$ 108,504
$ 97,087
$ 49,930
$ 74,087
Median Home Value
$ 300,900
$ 228,500
$ 185,400
$ 283,400
$ 202,000
$ 96,100
$ 192,500
% Below Poverty Rate
3.8%
6.9%
4.5%
5.1%
5.3%
16.4%
9.6%
% of Housing Stock Built After 1980
96.3%
88.7%
86.0%
80.7%
86.2%
42.7%
87.7%
% Housing Units in Multi -unit
Structures (2008-2012)
17.7%
21.8%
19.0%
9.4%
19.4%
31.3%
29.0%
% Bachelor's Degree or Higher
59.9%
44.6%
45.7%
56.5%
42.5%
14.7%
37.5%
EIWOYMENT BREAKDOWN BY INDUSTRY (2012 AMERICAN COMMUNITY SURVEY)
Mean Travel Time to Work (min)
29.7
28.9
34.5
30.7
30.2
24.4
25.1
Agriculture, forestry, fishing and
hunting, and mining
1.0%
1.3%
3.6%
6.1%
2.0%
1.5%
0.3%
Construction
4.1%
7.2%
6.7%
4.2%
6.2%
18.3%
6.3%
Manufacturing
8.7%
8.5%
11.6%
8.5%
12.9%
12.6%
11.5%
Wholesale trade
3.3%
3.6%
3.6%
4.5%
2.3%
2.0%
3.0%
Retail trade
11.3%
11.7%
6.8%
12.1%
8.6%
9.8%
11.8%
Transportation and warehousing, and
utilities
3.2%
2.8%
3.6%
3.6%
5.3%
7.3%
3.7%
Information
4.2%
3.5%
1.6%
2.6%
1.3%
0.5%
2.9%
Finance and insurance, and real
estate and rental and leasing
14.3%
10.8%�
7.9%
8.1%
5.8%
4.0%
6.9%
Professional, scientific, and
management, and administrative and
waste management services
17.7%
16.5%
12.5%
16.6%
14.2%
10.2%
14.3%
Educational services, and health care
and social assistance
20.0%
19.1%
30.4%
22.5%
25.6%
17.7%
20.6%
Arts, entertainment, and recreation,
and accommodation and food
services
6.7%
8.1%
2.7%
5.1%
6.6%
9.8%
8.5%
Other services, except public
administration
3.6%
4.0%
3.9%
3.9%
3.6%
4.0%
4.8%
Public administration
2.0%
2.9%
5.5%
2.1%
5.8%
2.3%
5.3%
Tax Rate Information is from Posted Adopted FY18 Tax Rate Notice or, if posted rate is unavailable, FY18 Proposed Budget
* "Hispanic" may be of any race, so also are included in applicable race categories
21
THIS PAGE INTENTIONALLY BLANK
22
Energy Corridor HOUSTON
8
(TEXa )
6
Galleria/
Uptown Parl
Minute Maid Park
George R. Brown
Convention Center
Toyota Center
Museum
Rice University. District
Medical
Center
NRG
°Stadium
METRO
Light Rail
Port of
Freeport
George Bush
Intercontinental
(IAH)
BBVA Compass
Stadium
University
of Houston
Port of Houston
Authority
William P. Hobby
(HOU)
Pearland
Rgnl ,
(LVJ)
5h\p Channel
TEXAS
225
BELTWAY'
8
Ellington Field
(EFD)
Battleship
Texas
San Jacinto
Monument
University
of Houston
® Clear Lake -
Main Campus
Lyndon B. ‘0Johnson
Space Center
Galveston
0 Moody Gardens
Q Kemah Boardwalk
Port
of
Houston
General Areas
Downtown: 17 minutes
Energy Corridor: 27 minutes
Galleria / Uptown Park: 18 minutes
Galveston: 32 minutes
Medical Center: 13 minutes
Museum District: 12 minutes
Transportation
George Bush Intercontinental (IAH): 33 minutes
Ellington Field (EFD): 6 minutes
Metro Light Rail: 9 minutes
Pearland Regional (LVJ): in Pearland
Port of Freeport: 58 minutes
Port of Houston Authority: 20 minutes
Port of Houston: 29 minutes
William P. Hobby (HOU): 11 minutes
Attractions
1. Battleship Texas: 23 minutes
2. BBVA Compass Stadium: 14 minutes
3. George R. Brown Convention Center: 14 minutes
4. Kemah Boardwalk: 26 minutes
5. Minute Maid Park: 14 minutes
6. Moody Gardens: 37 minutes
7. NASA Johnson Space Center: 16 minutes
8. NRG Stadium: 9 minutes
9. San Jacinto Monument: 22 minutes
10. Toyota Center: 13 minutes
Universities
11. Rice University: 20 minutes
12. University of Houston: 13 minutes
13. University of Houston Clear Lake -
Main Campus: 17 minutes
23
Staff Organization
Pearland Citizens
Mayor & City Council
Legal
Municipal Court Judge
City Manager
Budget
Community Development
Fire
Information Technology
Police
Pearland Economic Development Corporation
Deputy City Manager
City Secretary
Communications
Convention & Visitors Bureau
Finance
Human Resources
Library
Municipal Court
Parks & Recreation
Assistant City Manager
Engineering & Capital Projects
Public Works
25
Elected Officials
Tom Reid
Tony Carbone
Derrick Reed
Gary Moore
Adrian Hernandez
J. David Little
Trent Perez
Woody Owens
Appointed Officials
Clay Pearson
Darrin Coker
Letitia Farnie
City Management
Jon Branson
Trent Epperson
Matthew Buchanan
Young Lorfing
Johnny Spires
Vance Riley
Clarence Whittwer
Cynthia Pearson
Michelle Graham
Robert Upton
John McDonald
Chris Orlea
Kim Sinistore
*Lisa Loranc
Joshua Lee
Jennifer Huhn
Daniel McGhinnis
CITY OF PEARLAND, TEXAS
CITY MANAGEMENT
Position
Mayor
Councilmember, Position One
Councilmember, Position Two (Mayor Pro Tem)
Councilmember, Position Three
Councilmember, Position Four
Councilmember, Position Five
Councilmember, Position Six
Councilmember, Position Seven
City Manager
City Attorney
Municipal Court Judge, Presiding
Deputy City Manager
Assistant City Manager
President, PEDC
City Secretary
Police Chief
Fire Chief
Director of Public Works
Director of Finance
Director of Human Resources
Director of Capital Projects & Engineering
Director of Community Development
Director of Parks & Recreation
Executive Director of Convention
and Visitors' Bureau
Library Director*
Director of Communications
Municipal Court Administrator
Chief Information Officer
*Employee of Brazoria County serving in cooperation with the City of Pearland
26
CITY OF PEARLAND, TEXAS
STRATEGIC PRIORITIES
In March 2015, based upon prior feedback and
citizen perception survey information, staff
presented to Council a set of Strategic Priorities
to guide organizational development, budgeting
and performance measurement. In May 2015,
the City Council voted on the City of Pearland
Strategic Priorities shown to the right. The 2015
Comprehensive Plan adopted by the City Council
in September 2015 and the Pearland 20/20
Economic Development Plan developed by and
adopted by the Pearland Economic Development
Board in 2013 reflect elements of these Strategic
Priorities as well.
The 2015 Comprehensive Plan encompasses
the growth capacity of the City, infrastructure to
support the growth, mobility issues, housing and
neighborhood planning, economic development,
parks and tourism, and land use and character.
The Pearland 20/20 Strategic Plan includes
economic development, City beautification and
aesthetics, mobility, recreation and culture, and
educational and work opportunities in Pearland.
These six Strategic Priorities are designed to guide
financially and structurally sustainable city.
Safe
Community
Healthy Engaged
Economy Community
Sustainable
Infrastructure
Citizenry &
Community
Fiscally
Responsible
Parks, Recreation
& Events
Pearland to the next level of success, as an economically,
1. Fiscally Responsible Government
Operating a fiscally responsible government entity involves the embodiment of general principles of accountability
and transparency into a system of decision -making. The sense of "public trust" prevails over the individual
interests of a system's professionals, executives or elected officials. The amalgamation of checks, balances and
controls provides the expectations for public stewardship and reinforces the City's commitment to continuous
im provement.
Local government officials are custodians of the public trust in ways that should maximize the benefit of taxpayer
dollars to its residents and visitors as well as the corporate and small business partners that make up the
commercial entities that reside in our City.
The Comprehensive Plan and 20/20 Plan encompass this Council Strategic Priority via patterns of development
that support the City's long-term financial health; a commitment to sustained budget support for reinvesting in
infrastructure maintenance; for public safety to maintain levels of service and responsiveness commensurate
with projected growth and resident expectations; and to identify sustainable funding sources to support the
landscape maintenance protocol.
2. Sustainable Infrastructure
Public infrastructure provides the foundation upon which our community is built. Street overlays, sidewalk
installations, ditch -cleaning, water -production and purchases and new project completions are some of the main
functions provided by the City to ensure effective growth, support and maintenance of public infrastructure. These
items are somewhat the unsung heroes of a community. When they are working great, they are seldom noticed.
A growing city like Pearland is still strengthening its "bones" of roads and utilities and must balance the immediate
maintenance needs with the importance of looking ahead.
27
The Comprehensive Plan includes a system that safely accommodates all modes of travel including vehicular,
pedestrian and bicycle. And the 20/20 Plan includes the continued planning, design and construction of priority
road and highway projects.
3. Quality Parks, Recreation and Events
The City of Pearland strives to be a regional destination by providing exceptional recreation and cultural
programming and quality facilities for residents and visitors alike. The City is also committed to enriching the
quality of life of our community by maintaining community parks, trails and green space, promoting recreational
activities through creative programming for people of all ages and abilities, while protecting open space and
natural resources for future generations.
Priorities within the Comprehensive Plan include providing greater focus on early land acquisition to address
future parkland needs in prime growth areas of the community, plus immediate developer provision of park
facilities in new subdivisions versus land dedication; ongoing Trail Master Plan implementation with a particular
focus on connectivity improvements around residential neighborhoods; and expanded recreation/cultural/
entertainment amenities to enhance residents' quality of life, reduce the "leakage" of such economic activity to
destinations outside the City, and draw more visitors and tourism dollars to Pearland. The 20/20 Plan includes
the pursuit of a multi -purpose events venue in Pearland, with related lodging and hospitality uses, as well as
locating and securing parcels for development of additional athletic fields for use by residents and competitive
tournaments.
4. Safe Community
The City works every day to maintain a high quality of life by providing a safe and peaceful environment within
the City of Pearland for all residents and visitors. Police professionals work to analyze patterns and work with
residents and businesses for preventing crimes and deter behaviors that lead to vehicle crashes that injure people
and cause property damage. Our growing ranks of Fire staff work to educate residents about home safety and
ensure compliant workspaces that are safe. The team looks at patterns to be in the best places for response to
fires and medical emergencies.
Safe Community is more than Police and Fire, it also encompasses Animal Services, Health/Code Enforcement,
Building Inspections — infrastructure and fire, and Public Works, with the maintenance of streets, sidewalks, water
quality, etc.
The Comprehensive Plan addresses development of a mobility system with adequate connectivity to provide
multiple travel options, accommodate cross-town trips, and ensure effective emergency response; sidewalk
network upgrades; and pedestrian/bicycle accommodation on commercial sites. The 20/20 plan prioritizes the
development of congestion management strategies.
5. Engaged Community
The City is committed to keeping its citizens informed by various means. The City website posts the latest news,
City Council and Boards and Commissions meetings, financial and other reports of interest, methods of payment
for City services, the ability to sign up for Parks Recreation classes, the ability to volunteer at the Animal Shelter
or apply for adoption, and report issues, such as street light outages, etc. In addition, the City distributes
publications annually and posts information and live and taped Council meetings via a City public educational
government (PEG) television station, as well as on the website.
Supporting events and outreach to bring Pearland citizens together as one community is one of the priorities of
the Comprehensive Plan. The 20/20 Plan includes identifying the optimal location for a multi -use events center
for performing arts, civic gatherings, special events, and touring acts; and organizing task forces of citizens and
businesses to create a unified arts organization as well as providing advice on City services and City gateway
identifying markers.
28
6. Healthy Local Economy
The local and regional economies have been the driving forces behind much of the growth in Pearland over the
last decade. The City continuously strives to build and support the local economy. Revenues from property
taxes and that result from development incentives and sales and hotel occupancy tax revenue are some of the
items that are considered in determining the health and vibrancy of our local economy. Economic growth and
quality development are critical aspects of our City's ability to serve citizens with the quality of life, mobility and
access to services they require.
The Comprehensive Plan priorities include a system that supports local economic development and tax base
growth through the City's own investments in transportation infrastructure, plus those it gains through advocacy
with other agencies and levels of government that administer transportation funding. The 20/20 Plan includes
developing a method to ensure that relocation prospects are efficiently and effectively supported and managed;
enhancing efforts to attract key segments of the health care sector to Pearland; optimizing a program to retain
and expand existing Pearland employers; and ensuring Pearland's retail sector remains vibrant. The Pearland
Economic Development Corporation (PEDC) has adopted a multi -year plan to enhance the main entrances to
the City.
29
FY19 Budget & CIP Calendar
ACTION
January
CIP Workshop — Five -Year CIP worksheets and instructions distributed to all departments
Budget Staff begin process of setting up Financial System in anticipation of upcoming Budget Cycle
February
Engineering & Capital Projects reviews CIP projects for scope, timing and costs, and submits updates
to Finance Department
Fee updates due from Departments
February 17th: Conduct Early Budget Input Session with City Council
March
Finance Department reviews CIP projects with Engineering & Capital Projects Department and City
Managers
Fee review by Management
March 20th: City-wide Budget Kick-off— Departments given access to Financial System
April
P&Z Board reviews CIP list
April 28th: Department Budgets and Supplemental Requests due
Department Meetings with Budget Office and Management
May
P&Z second review of CIP list and recommendation to the City Manager
May 30th: Department Head Supplemental Request Review Meeting
June
Finalize CIP projects, prepares fund statements and review with the City Manager
Preliminary Budget Submitted to City Manager's Office for Review
July
July 28th: Final Appraisal received from Assessor's Office
Finalize Proposed Budget and Multi -Year Plan
August
August 1st: Submit Proposed Five -Year CIP and Proposed Budget to City Council.
August 13th: Budget Discussion #1
August 20th: Budget Discussion #2
September
September 10th: Public Hearing on Tax Rate
September 17th: Record Vote on
• Tax Rate Ordinance
• Budget Ordinance
• Non -Development Fee Ordinance
• Development Fees Ordinance
September 24th: Record Vote on
• Tax Rate Ordinance
• Budget Ordinance
• Non -Development Fee Ordinance
• Development Fees Ordinance
• CIP Resolution
October
Fiscal Year 2019 Begins
30
CITY OF PEARLAND
TAX COLLECTIONS*
FY 2017 FY 2017 FY 2018
BUDGETED ADJUSTED CERTIFIED
LEVY LEVY ROLL
REVENUES
City Levy 55,516,309 54,563,770 57,670,756
TIRZ 17,303,551 16,189,143 18,395,879
TOTAL 72,819,860 70,752,913 76,066,636
City Collection Rate* 99.0% 99.3% 99.0%
ALLOCATION:
General Fund 20,465,007 20,150,000 20,991,229.00
Debt Service Fund 34,501,636 33,921,636 36,119,704.00
TIRZ 17,130,516 16,189,143 18,211,920.33
TOTAL ALLOCATION 72,097,159 70,260,779 75,322,853.33
Budgeted Adjusted Budgeted
Tax Year 2017 2017 2018
Certified Value 9,100,610,457 9,929,146,756 9,794,215,651
Plus: Protested or not Certified Values 1,488,622,839 653,864,668 1,158,995,226
Less: Frozen Amounts 225,054,739 225,054,739 226,879,712
Net Taxable Value
Less: TIRZ Added Value
10, 364,178, 557 10, 357,956, 685 10,726, 331,165
2,484,550,226 2,363,174,997 2,594,045,209
Taxable Value to City 7,879,628,331
Tax Rate per $100
General Fund
Debt Service Fund
Total Tax Rate
Tax Rate Split
7,994,781,688 8,132,285,956
0.255059
0.4300
0.279158
0.4300
0.685059 0.709158
General Fund 37.23% 39.36%
Debt Service Fund 62.77% 60.64%
Total 100.00% 100.00%
*Amounts reflected above include an estimated Harris County total. This will be updated in late August
31
TAX RATE DISTRIBUTION
CURRENT FOR FISCAL YEAR 2017-2018
ADOPTED FOR FISCAL YEAR 2018-2019
FISCAL YEAR GENERAL FUND DEBT SERVICE TOTAL TAX RATE
2008 0.2503 0.4023 0.6526
2009 0.2201 0.4325 0.6526
2010 0.2201 0.4325 0.6526
2011 0.2151 0.4500 0.6651
2012 0.2151 0.4700 0.6851
2013 0.2151 0.4900 0.7051
2014 0.2151 0.4900 0.7051
2015 0.2221 0.4900 0.7121
2016 0.2225 0.4828 0.7053
2017 0.2412 0.4400 0.6812
2018 0.2551 0.4300 0.6851
2019 0.279158 0.4300 0.7092
Notes:
1. The maximum tax rate for the City of Pearland is $2.50 per $100 assessed valuation.
2. The City does not have legal debt margin as the law does not mandate any debt limit on the City.
0.80 -
0.70
0.60
0.50 -
0.40 -
0.30 -
0.20 -
0.10
0.00
1
2008
2009
1
N
O
2010
2011
Tax Rate Distribution
2012
❑DEBT SERVICE
2013
2014
2015
2016
❑GENERAL FUND
2017
2018
2019
32
Fiscal Year
Tax
Year
as of
1/1
TIRZ
ASSESSED VALUATION, TAX LEVIED AND TAXES COLLECTED
PROJECTED FOR FISCAL YEAR 2017-2018
AND ADOPTED FOR FISCAL YEAR 2018-2019
Operations Debt Total City % of
Net Assessed % City Taxable Roll % Property Total Current Tax Current
Valuation Change (Net-TIRZ) Change and Maint. Service Tax Tax Levy Collections Taxes
Rate Rate Rate Collected
2008-2009 2008 $ 1,208,429,744 $ 5,904,826,560 9.6% $ 4,696,396,816 6.8% 0.2201 0.4325 0.6526 $ 38,368,354 $ 37,820,603 98.6%
2009-2010 2009 $ 1,288,879,780 $ 6,269,047,937 6.2% $ 4,980,168,157 6.0% 0.2201 0.4325 0.6526 $ 41,081,407 $ 40,590,543 98.8%
2010-2011 2010 $ 1,257,526,416 $ 6,331,723,029 1.0% $ 5,074,196,613 1.9% 0.2151 0.4500 0.6651 $ 41,968,046 $ 41,594,389 99.1%
2011-2012 2011 $ 1,242,672,175 $ 6,369,626,981 0.6% $ 5,126,954,806 1.0% 0.2151 0.4700 0.6851 $ 43,441,792 $ 43,110,373 99.2%
2012-2013 2012 $ 1,306,088,463 $ 6,537,976,038 2.6% $ 5,231,887,575 2.0% 0.2151 0.4900 0.7051 $ 45,850,625 $ 45,509,522 99.3%
2013-2014 2013 $ 1,562,848,106 $ 6,996,973,518 7.0% $ 5,434,125,412 3.9% 0.2151 0.4900 0.7051 $ 49,096,473 $ 48,802,720 99.4%
2014-2015 2014 $ 1,651,897,101 $ 7,580,556,989 8.3% $ 5,928,659,888 9.1% 0.2221 0.4900 0.7121 $ 53,463,919 $ 52,744,990 98.7%
2015-2016 2015 $ 2,048,031,760 $ 8,464,775,289 11.7% $ 6,416,743,529 8.2% 0.2225 0.4828 0.7053 $ 60,290,271 $ 58,985,648 97.8%
2016-2017 2016 $ 2,109,639,316 $ 9,733,317,309 15.0% $ 7,623,677,993 18.8% 0.2412 0.4400 0.6812 $ 64,977,413 $ 64,579,894 99.4%
2017-2018** 2017 $ 2,484,550,226 $ 10,580,236,420 8.7% $ 8,095,686,194 6.2% 0.2551 0.4300 0.685059 $ 70,752,913 $ 69,931,022 98.8%
2018-2019* 2018 $ 2,594,045,209 $ 10,953,210,877 3.5% $ 8,359,165,668 3.3% 0.2792 0.4300 0.709158 $ 77,675,571 $ 76,898,815 99.0%
*Estimated
**YTD Collections as of 6/31/2018
$12
$11
$10
$9
$8
$7
o $6
$5
$4
$3
$2
$1
$-
TIRZ vs. City
Assessed Valuation as Portion of Total
$5.9
4.7
$6.3
5.0
$6.3
$6.4
�yo
■TIRZ
$6.5
N3
ti
$7.0
$7.6
5.9
mil
$8.5
6.4
$9.7
7.6
$10.6
8.1
i
you yo a '`9'
you tio6 '15)1 ,yo
■City Taxable Roll (Net-TIRZ)
33
$12.00
$10.00
$8.00
cn
0
00
$6.00
$5.90
$4.00
$2.00
$0.00
NET ASSESSED VALUATION
$6.54
$6.27 $6.33 $6.37
* Net assessed valuation
** Certified Value for fiscal year 2018
$7.00
$10.73
$10.36
$7.58
$8.46
34
TAXPAYERS
1 Pearland Town Center LP
2 AmREIT SPF Shadow Creek LP
3 HCA Healthcare Corp
4 MAR Shadow Creek LP
5 DD Shadow Creek V LLC
6 Weatherford U.S. Inc.
7 11900 Shadow Creek VIII LP
8 Goodgarden
9 Discovery Shadow Creek Owner
10 Brazoria SCR Associates LLC
PRINCIPAL TAXPAYERS
FISCAL YEAR 2017-2018
BUSINESS
Retail Center Management
Retail Center Management
Hospital
Multi -Family Residential
Multi -Family Residential
Oil Field Service, Rental & Fishing
Multi -Family Residential
Multi -Family Residential
Multi -Family Residential
Retail Center Management
TOTAL PRINCIPAL TAXPAYERS
ASSESSED VALUE
OF PROPERTY
$ 88,999,489
$ 83,832,600
$ 76,694,850
$ 57,481,391
$ 46,405,710
$ 39,314,580
$ 38,420,360
$ 38,141,170
$ 37,577,690
$ 36,452,500
ALL OTHERS $
SOURCES: Brazoria and Harris Counties Tax Assessor Collector
$100, 000, 000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
TOTAL $
TOP TEN TAXPAYERS
543,320,340
10,183,010, 825
10, 726,331,165
% OF
ASSESSED
VALUE
0.83%
0.78%
0.72%
0.54%
0.43%
0.37%
0.36%
0.36%
0.35%
0.34%
5.07%
94.93%
100.00%
G o. � e�
G
\\\, \\\.c\�eGQ \`ao�\
o�z 5.�\ a 0
et oJ�°y
G("see*
o°°�a o oz a
o�I.Cs G�cs a°60 o °GGo443
c\��a Q�0 1C) P�� 5raa boa co 9r�a �GQ
Qeia co ,, .O ���0 46" 4,°.`�
P�Q . O\yoo Ica
35
THIS PAGE INTENTIONALLY BLANK
36
CITY OF PEARLAND
MULTI -YEAR FORECAST
FISCAL YEARS 2019 - 2021
EXECUTIVE SUMMARY
The Financial Forecast for the City of Pearland over a three-year timeframe includes the City's Debt Service (DS)
Fund, General (GF) Fund, Water and Sewer (W&S) Fund, and Pearland Economic Development Corporation
(PEDC). This is an update to the City's annual comprehensive and integrated forecast of these funds based on a
set of assumptions and is intended to:
♦ Provide insight into the long-term financial implications of current policies, programs, and priorities;
♦ Provide an understanding of available funding, financial risk, assess the likelihood that services can be
sustained, assess the level at which capital investment can be made, identify future commitments and
resource demands, and identify variables that may cause changes in the level of revenues;
♦ Provide an early warning system for potential problem areas to watch where alternative strategies may
need to be developed or where issues can be proactively addressed and planned for;
♦ Assist in strategic decision -making and long-range planning efforts by allowing City Council, management,
and departments to see how programs fit within the overall context of City finances; and
♦ Provide City Council and City management a meaningful tool in establishing priorities, allocating resources,
and providing direction and strategies in the administration of City government.
The forecast provides a solid planning tool by building upon the adopted 2018-2019 budget and then projects future
resources and expenditures based upon known reasonable trends and continuing the City's current services and
service levels. The forecast for each fund also incorporates the debt and operating costs associated with capital
improvement projects in the City's Five -Year Capital Improvement Program (CIP), thus, these forecasts provide City
Council and management the opportunity to "gaze" into the future based on today's and past decisions and apply
strategies and sound fiscal management to maintain the strong financial health of the City.
This forecast is not intended as a budget. Rather, the multi -year forecast is a valuable tool, based on a set of well -
reasoned assumptions, upon which policy and strategy may be formulated. The forecast is a vital component
of the City's financial management strategy.
OVERVIEW
The Debt Service, General Fund, Water & Sewer Fund and PEDC forecasts form the "core" of this document.
The DS Fund accounts for the issuance of debt and provides for the payment of debt principal, interest and tax
rebates to in -city municipal utility districts. In this fund, an ad valorem (property) tax rate and tax levy are required
to be computed and levied, which will be sufficient to produce the money to satisfy annual debt service requirements.
The GF is the general operating fund of the City and is used to account for all financial activity not reflected in other
funds. The fund consists of the following major departments: General Government, Public Safety, Parks &
Recreation, Public Works, and Community Services.
The W&S Fund includes water and sewer system operations and is operated in a manner similar to private
business enterprises, where services to the public are financed primarily through user charges. This fund consists
of the following major functions: Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection,
Construction, Meter Services, and Billing and Collections.
The PEDC, established in 1995 by the voters under the Texas Development Corporation Act of 1979, provides
guidance and funding for the operations of the City's economic development program and provides business
incentives to support and promote the growth and diversification of the City's economic base.
It is important to note that the numbers in these multi -year forecasts are estimates based on various assumptions
and are not representation of fact. The picture reflected in this forecast portrays a scenario if all assumptions hold
true. Therefore, the importance of the forecasts lies not in the numbers, but in the discussion it encourages on the
policy issues and strategies that can be implemented in the event these scenarios become reality.
37
Based upon these assumptions, the forecast shows that the City will be able to accomplish the following:
♦ Fund existing services at current service levels
♦ Meet current and future anticipated debt service obligations
♦ Fund a Multi -Year Capital Improvement Program and associated operating expenditures
♦ Meet cash reserve and bond coverage requirements
♦ Meet a 10% reserve policy in the DS Fund
♦ Operate and maintain new and existing City facilities
♦ Maintain business incentives to attract capital investments to the City
However, in order to do so,
♦ The overall FY 19 tax rate increased from $0.6851 to $0.7092 per $100 valuation; an increase of $0.0241. The
total tax rate is anticipated to increase in FY 20 by $0.0348 and in FY 21 by $0.0355.
♦ The tax impact analysis done for the 2007 bond referendum showed an impact of $0.0750 and an
additional $0.055 to complete projects from the 2001 referendum, for a total tax rate increase of $0.13. In
FY 19, the total tax rate is expected to increase $0.0566 from 2007.
♦ Revenue increases are not needed in fiscal year 2019 in the water/sewer fund. Additional increases are
needed in fiscal years 2020 and 2021 of 5.2% and 12.2%, respectively, in order to meet cash reserve
and bond coverage requirements.
FORECAST METHODOLOGY
As part of the formulation of these forecasts, the forecast methodology includes estimating the future values of
revenues and expenditures. The forecast provides an estimate of how much revenue will be needed/required in
order to meet expenditures and reserve and bond coverage requirements over the forecast period. The value of
forecasts is in estimating whether, given assumptions about financial policies and economic trends, the City will
have sufficient resources to meet the resource requirements of ongoing, planned or mandated programs.
In the City's forecasts, there are a mixture of methodologies, including historical and factual information, knowledge
of anticipated events, and judgment. The methodologies incorporate information gathered on anticipated population
growth and building permits. Anticipated sales tax from retail sales, anticipated valuations, and other variables
were identified to try to minimize the risk of overstating or understating revenue.
Much like revenue, the expenditure projections for the General Fund and Water Sewer Fund are based on historical
trends, anticipated events, assumptions about the future, and other judgments staff deemed appropriate. Salary
projections are based on anticipated merit and salary adjustments, and benefits were broken out separately to
account for the aberrant behavior of certain benefits, such as TMRS and health care benefits.
The City may attempt to enact some controls to prevent the anticipated growth of operating expenses, but such
controls are not assumed in the plan. The Debt Service Fund expenditure forecast is based upon current debt service
payments, as well as anticipated debt from new debt issuances based on the City's Five -Year CIP and MUD
rebates.
General Fund and Debt Service revenues are dependent on the net assessed property valuation assumptions
which are derived from anticipated residential and commercial development, revaluation of existing property, and
the scheduled roll -off of tax abatements. The forecast assumes property valuation growth for 5% in FY 20 and 4.5%
in FY 21.
38
INDIVIDUAL FUND OVERVIEWS
Tax Rate
In FY 19, the adopted tax rate of $0.7092, represents an increase of $0.0241, allocates $0.2792, or 39% to the
General Fund and $0.4300 or 61 % to the Debt Service Fund. The chart below presents the total tax rate required to
meet obligations and the allocation between Debt Service and O&M. The General Fund O&M effective tax rate plus
8% establishes the rollback rate. City Council determines the actual tax rate each year. Going above the rollback
tax rate is subject to petition for a vote by the citizens. The FY19 adopted tax rate is at the Effective Tax Rate.
As shown on the table below, by FY 21, the total tax rate is $0.7795; 36% to the General Fund and 64% to the Debt
Service Fund, which represents an increase of $0.005 to the General Fund and an increase of $0.065 to the Debt
Service Fund from the FY 19 adopted tax rate.
As compared to last year's multi -year forecast, the FY 19 tax rate is $0.0132 higher than projected, driven by lower
than anticipated property tax growth.
$0.6851
General Fund
■ Operations
Tax Rate
Debt Service Fund
❑ City Debt Service ❑ MUD Rebates
$0.7092
$0.7440
$0.7795
2018 Actual 2019 Adopted 2020 Forecasted 2021 Forecasted
Debt Service Fund
The Debt Service Fund can meet all current and future obligations based on the City's Multi -Year Forecast and
Five -Year CIP. The issuance of debt is factored in based on the Five -Year CIP. All new debt issued is assumed to
be issued with a 20-year maturity level principal payment.
In order to fund obligations and implement the fiscal year CIP and proceed with a $77 million 2019 Bond Program,
the Debt Service tax rate will need to increase by $0.0650 from the adopted FY 19 tax rate of $0.4300 to the FY 21
tax rate of $0.4950.
General Fund
The General Fund is structurally balanced for FY 19 whereby expenses are greater than revenues. The policy
reserve requirement of 2 months recurring operating expenditures increases from $12,181,840 in FY 19 to
$17,123,524 in FY 21. This sharp increase is driven by a directive from Council to increase the minimum fund
balance to 25% of total expenditures over the next several years. Total expenditures are projected to increase $5.2
million, driven by new facilities and continued growth in our staffing needs. This projection accounts for 30 new
Firefighters to staff Fire Stations #8 and #7. This projection also accounts for the addition of two police officers each
year.
Property and Sales Tax are a major revenue component funding these expenditures. Revenues from property tax, as
a percent to total revenues, are 26% in FY 19. General Fund property tax revenues as a percentage of total increases
to 27% by FY 21. Sales tax receipts are projected to increase 3% per year.
Water & Sewer Fund
The Water & Sewer Fund can meet all of its operating expenses, annual debt service, and bond coverage requirements
of 1.4 times net operating revenues. Cash reserve requirement of 25% is met in all years of the forecast. Strategies
used in the generation of the forecast are aimed to ensure that the fund is self-supporting.
A water and sewer revenue increase of 5.2% is anticipated in 2020 to eliminate the need for a much larger revenue
increase for 2021, currently forecasted to be 12.7%, to meet cash reserve ratios. The City plans to issue $34.2
million, $141.6 million, and $109.5 million in fiscal years 2019, 2020 and 2021 respectively. The bonds will be used
to begin construction on the expansion of two water reclamation facilities (Barry Rose and JHEC), construction of
the Surface Water Plant, and other water and sewer line replacements.
The utility system users generate the revenues that support the system. Annual water and sewer charges by fiscal
year 2021 total $62.03 million, an increase of $11.85 million from fiscal year 2019, and include growth in the number
of connections, as well as two revenue increases. The growth in the number of connections average 2.5% annually
over the multi -year forecast.
Total expenditures increase to $71.35 million in fiscal year 2021, up from $53.42 million in fiscal year 2019. Debt
service increases over the forecast period, from $17.7 million in fiscal year 2019 to $34.7 million in fiscal year 2021.
Revenues generate about $3 million in pay -as -you go funding for capital projects.
With the implementation of the revenue increases included in the forecast, the system can continue to be self-
supporting and financially sound.
Pearland Economic Development Corporation (PEDC)
The Corporation can fund its current operations and provide funding for the strategic priorities of the Pearland
20/20 Community Strategic Plan, including business recruitment, Lower Kirby, SH 35 and FM 518 corridors, SH
288 corridor enhancements and beautification. The ending fund balance is projected to be $14.2 million in FY
2021, an increase of $7.3 million. Sales tax revenue is a major component of funding for the Corporation. Revenues
from sales taxes increased by 6.1 % between FY19 and FY21, from $11.1 million in FY19 to $11.8 million in FY21.
CONCLUSION
The adopted forecast is conservative and only includes developments that are anticipated based on current
knowledge. If certain economic development projects are successful and come to fruition, or if new developments
not currently known take place, then this forecast will substantially change. This forecast will be updated annually
as any new developments that will impact revenue or expenditures are identified as "concrete," or likely to happen.
There are external factors outside of the City, such as the legislature, anticipated TxDOT funding of capital projects,
and weather, that could impact the forecast and significantly affect the City's ability, despite having a prudent
financial plan in place, to continue to provide the highest quality service and provide for those capital projects which
provide a high quality of life. Our objective is to provide City Council and management a prudent financial plan in
order to make decisions to benefit our current and future residents.
40
MULTI -YEAR BUDGET 2019-2021
DEBT SERVICE
ACTUAL AMENDED ADOPTED
FY 2017 FY 2018 FY 2019
FORECASTED
FY 2020 FY 2021
REVENUES
PROPERTY TAXES $ 32,476,674 $ 34,297,205 $ 36,501,204 $ 41,082,581 $ 46,236,346
OTHER REVENUE* 1,487,644 1,678,479 1,417,167 2,047,625 2,202,806
BOND PROCEEDS 72,407,342
TOTAL 106,371,660 35,975,684 37,918,371 43,130,205 48,439,152
EXPENDITURES
MUD REBATES 6,936,997 7,157,603 7,587,066 8,042,290 8,524,827
BOND PAYMENT 99,925,103 27,897,041 31,354,028 34,895,135 38,806,367
SHORT-TERM NOTE 1,874,519
TOTAL 108,736,619 35,054,644 38,941,094 42,937,425 47,331,194
REVENUES OVER (UNDER)
EXPENDITURES
FUND BALANCE - BEGINNING
(2,364,959) 921,040
(1,022,723)
192,781 1,107,958
8,276,420 5,911,461 6,832,501
5,809,778 6,002,558
FUND BALANCE - ENDING $ 5,911,461 $ 6,832,501 $ 5,809,778 $ 6,002,558 $ 7,110,516
Reserve 10%
Over Policy
$ 3,698,269 $ 3,505,464 $ 3,894,109 $ 4,293,742 $ 4,733,119
$ 2,213,192 $ 3,327,036 $ 1,915,668 $ 1,708,816 $ 2,377,396
`Includes estimated Delinquent Tax Collections, Penalties and Interest, UofH Lease Payments, Interest Income and Transfers
(a) Includes the City's Series 2018 Certificates of Obligation and Series 2018 Permanent
Improvement Bonds.
41
DESCRIPTION
MULTI -YEAR BUDGET 2019-21
GENERAL FUND OVERVIEW
Includes $77m Bond Package
ACTUAL
2017
AMENDED
2018
ADOPTED FORECASTED
2019 2020 2021
REVENUE
PROPERTY TAXES
SALES & USE TAXES
FRANCHISE FEES
LICENSES & PERMITS
FINES & FORFEITURES
CHARGES FOR SERVICE
INVESTMENT EARNINGS
MISCELLANEOUS
TRANSFERS IN
TOTAL REVENUES
EXPENDITURES
GENERAL GOVERNMENT
PUBLIC SAFETY
COMMUNITY SERVICES
PUBLIC WORKS
PARKS & RECREATION
ANTICIPATED ADDITIONAL
TOTAL EXPENDITURES
REVENUES OVER(UNDER)
EXPENDITURES
BEGINNING FUND BALANCE
ENDING FUND BALANCE
POLICY REQUIREMENT*
AMOUNT OVER POLICY
TAX RATE
GENERAL FUND
DEBT SERVICE
TOTAL TAX RATE
TAX RATE SPLIT
GENERAL FUND
DEBT SERVICE
TAX RATE INCREASE (DECREASE)
GENERAL FUND
DEBT SERVICE
TOTAL TAX RATE
$ 17,910,289
$ 20,457,029
$ 6,975,738
$ 5,434,917
$ 2,510,849
$ 15,396,511
$ 71,512
$ 1,534,335
$ 3,791,394
74,082,574
$ 20,453,523
$ 21,957,016
$ 7,154,583
$ 3,783,035
$ 2,313,750
$ 16,203,603
$ 250,000
$ 2,914,027
$ 3,816,116
78,845,653
$ 21,332,769
$ 22,855,294
$ 7,296,694
$ 3,785,535
$ 2,110,750
$ 17,618,566
$ 250,000
$ 983,806
$ 4,560,460
80,793,874
$22,349,429
$ 23,540,953
$ 7,442,628
$ 3,899,101
$ 2,110,750
$ 18,820,368
$ 257,500
$ 983,806
$ 4,697,274
84,101,809
$ 23,363,643
$ 24,247,181
$ 7,591,480
$ 4,016,074
$ 2,110,750
$ 19,701,910
$ 265,225
$ 983,806
$ 4,838,192
87,118,263
13,275,529
44,244,560
3,663,847
12,881,801
6,575,912
12,210,182
43,809,708
3,858,338
14,934,853
6,506,972
12,273,619
45,258,605
3,904,763
12,651,388
6,335,737
12,312,664
45, 655,167
4,015,666
12,689,979
6,396,273
2,031,461
12, 359,197
46,065,795
4,052,734
12,801,017
6,458,689
3,880,190
80,641,650 81,320,053 80,424,112 83,101,210 85,617,621
(6,559,076)
(2,474,400) 369,762
1,000,599 1,500,642
$ 20,919,483 $ 14,360,407 $ 11,886,007 $ 13,256,368 $ 15,757,609
$ 14,360,407 $ 11,886,007 $ 12,255,769 $ 14,256,967 $ 17,258,251
11,808,269 11,828,989 12,181,840 14,127,206 17,123,524
$ 2,552,138 $ 57,018 $ 73,929 $ 129,761 $ 134,727
0.2412
0.4400
0.2551 0.2792
0.4300 0.4300
0.2840 0.2845
0.4600 0.4950
0.6812
0.6851 0.7092
0.7440 0.7795
35% 37% 39% 38% 36%
65% 63% 61% 62% 64%
0.0139 0.0241
-0.0100 0.0000
0.0048 0.0005
0.0300 0.0350
0.0039 0.0241
*Assumes that the City moves to a 17% minimum in FY20 and 20% minimum in FY21
0.0348 0.0355
42
DESCRIPTION
MULTI -YEAR BUDGET 2019-21
WATER & SEWER FUND DETAIL
ACTUAL
2017
AMENDED
2018
ADOPTED
2019
FORECASTED
2020 2021
CHARGES FOR SERVICE
WATER/SEWER CHARGES
SANITATION BILLING FEE
CONNECTION FEE
WATER/SEWER TAP FEE
LATE PAYMENT FEE
METER SET FEE
CURB STOP REPLACEMENT FEE
GREASE TRAP FEE
RECONNECT FEE
MISCELLANEOUS
TOTAL CHARGES FOR SERVICE
MISCELLANEOUS REVENUE
NSF FEES
REIMBURSEMENTS
MISCELLANEOUS
TOTAL MISCELLANEOUS
INTEREST
INTEREST
TOTAL INTEREST
TRANSFERS IN
TRANSFERS IN
TOTAL INTERFUND TRANSFERS
OTHER FINANCING SOURCES
SALE OF PROPERTY
MISCELLANEOUS
CAPITAL PROCEEDS
TOTAL OTHER FINANCING SOURCES
TOTAL REVENUES
$ 42,317,191
407,321
158,913
355,739
313,319
1,725
54,992
33,280
1,756
$ 49,000,000
415,000
163,000
356,000
640,000
2,000
51,000
36,000
23,000
$ 50,174,884 $
425,000
165,000
395,000
650,000
3,000
55,000
40,000
2,000
54,039,135
429,250
166,650
398,950
656,500
3,030
55,550
40,400
2,020
$ 62,025,849
433,543
168,317
402,940
663,065
3,060
56,106
40,804
2,040
43,644,236
5,350
2,857
57,023
50,686,000 51,909,884
3,000
4,000
7,500
5,000
55,791,485
7,575
5,050
63,795,722
7,651
5,101
65,230
84,855
7,000
325,000
12,500
325,000
12,625
328,250
12,751
331,533
84,855
2,650,000
2,650,000
52,675,631
325,000
2,950,000
2,950,000
325,000
2,950,000
2,950,000
328,250
3,100,000
3,100,000
331,533
3,100,000
3,100,000
52,675,631
99,119,952
53,968,000
55,197,384
59,232,360 67,240,006
43
DESCRIPTION
MULTI -YEAR BUDGET 2019-21
WATER & SEWER FUND DETAIL
ACTUAL
2017
AMENDED
2018
ADOPTED
2019
FORECASTED
2020 2021
EXPENDITURES
PUBLIC WORKS
ADMINISTRATION
LIFT STATIONS
WASTEWATER
BACKFLOW COMPLIANCE
WATER PRODUCTION
DISTRIBUTION AND COLLECTION
CONSTRUCTION
WATER METER SERVICES
WATER/SEWER GROUNDS
PRETREATMENT
INFORMATION TECHNOLOGY
UTILITY BILLING
OTHER REQUIREMENTS
DEBT SERVICE
TOTAL EXPENDITURES
REVENUES OVER(UNDER)
EXPENDITURES
BEGINNING CASH EQUIVALENTS
RESERVE FOR DEBT SERVICE
ENDING CASH EQUIVALENTS
BOND COVERAGE - 1.4 min required
CASH RESERVE RATIO - 25% min requin
NUMBER OF CONNECTIONS
% REVENUE INCREASE NEEDED
REVENUE BONDS TO BE ISSUED
DEBT SERVICE COVERAGE
REVENUES
LESS OPERATING EXPENSES
NET REVENUES AVAILABLE FOR
DEBT SERVICE
TOTAL AVERAGE ANNUAL DEBT
SERVICE (LESS GO)
$24
$21
$18
$15
$12
$9
$6
$3
$-
$ 679,440
1,784,854
5,742,781
9,572,564
2,426,141
828,089
1,295,624
435,017
513,603
1,410,743
3,950,522
69,868,062
$ 1,139,941
1,770,024
5,444,834
9,513,266
2,597,609
1,353,346
953,079
438,372
772,792
1,497,716
8,160,780
17,692,469
$ 727,551
1,780,483
5,709,337
270,642
10,758,831
3,099,461
1,652,469
1,155,056
528,303
253,326
1,285,576
1,644,923
6,843,361
17,707,401
$ 750,851
1,835,405
5,884,744
279,294
11,026,468
3,202,137
1,705,770
986,611
545,718
261,779
1,325,709
1,699,112
6,921,073
26,536,565
$ 775,201
1,892,271
6,066,060
288,327
11,301,735
3,309,226
1,761,148
1,019,463
563,882
270,610
1,367,283
1,755,690
6,290,151
34,689,632
98,507,440
51,334,228
53,416,720
62,961,236
71,350,677
612,512
2,633,772
1,780,664
(3,728,876) (4,110,671)
$ 18,500,872 $ 20,806,602 $ 23,440,374 $ 25,221,038 $ 21,492,163
3,616,964 3,796,725 4,356,022 5,486,194 8,097,130
$ 15,496,420 $ 19,643,649 $ 20,865,016 $ 16,005,969 $ 9,284,361
13.48
54%
4.08
58%
3.49
58%
1.90
44%
1.69
25%
36,146 37,034 37,944 38,877 39,833
15.6% 10.0% 0.0% 5.2% 12.2%
- $ 29,543,646 $ 34,246,314 $ 141,637,000 $ 109,499,000
$ 99,119,952 $
28,639,378
$ 70,480,574 $
$ 5,229,910 $
53,968,000 $
33,641,759
20,326,241 $
4,976,575 $
55,347,384 $
32,549,319
22,798,065 $
6,530,828 $
CASH EQUIVALENTS
MULTI -YEAR HISTORY - FORECAST
$15.5
Actual 2017
$19.6 $20.9
Amended
2018
Adopted 2019
$16.0
1
Forecasted
2020
59,232,360 $
32,654,671
67,240,006
33,531,046
26,577,689 $ 33,708,960
13,963,265 $ 19,896,275
$9.3
u
Forecasted
2021
44
MULTI -YEAR BUDGET 2019-22
PEARLAND ECONOMIC DEVELOPMENT CORPORATION
DESCRIPTION
AMENDED ADOPTED FORECASTED
2018 2019 2020 2021
REVENUES
SALES TAX $ 10,703,352 $ 11,131,486 $ 11,465,431 $ 11,809,394
OTHER* 3,779,000 598,895 644,742 468,359
TOTAL OPERATING REVENUE $ 14,482,352 $ 11,730,381 $ 12,110,173 $ 12,277,753
EXPENDITURES
OPERATING EXPENDITURES
BOND PAYMENTS
INFRASTRUCTURE/
REDEVELOPMENT/SH35/FM518
INCENTIVES
288 CORRIDOR IMPROVEMENTS
OFFICE BUILDOUT
LOWER KIRBY
PARKS & RECREATION INDOOR FACILITY
CORRIDOR ENCHANCEMENTS/
ENTRYWAYS
TOTAL EXPENDITURES
REV OVER/(UNDER) EXP
BEGINNING TOTAL FUND BALANCE
ENDING TOTAL FUND BALANCE
10% SET ASIDE
ACCUMULATED SET ASIDE
2,241,998 3,280,348 2,825,279 2,954,587
1,231,000 12,916,503
2,005,000 7,015,000 1,043,747 170,000
884,429 1,336,890 1,874,890 1,181,890
523,000 490,000 300,000 6,750,000
63,232 - -
5,075,085 2,339,000
65,000 380,000
$12,088,744 $27,757,741 $6,043,916 $11,056,477
2,393,608 (16,027,361)
6,066,257 1,221,276
$20,540,323 $22,933,931 $6,906,571 $12,972,828
$22,933,931 $6,906,571 $12,972,828 $14,194,103
1,070,335 1,113,149 1,146,543 1,180,939
2,080,040 3,193,189 4,339,732 5,520,671
ENDING FUND BALANCE LESS SET ASIDE 20,853,891 3,713,382 8,633,096 8,673,432
*Other includes Interest, CSI Rent, BCD Assessments and Lower Kirby Reimbursements
45
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DEBT SERVICE FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
PROPERTY TAXES* $ 32,476,674 $ 34,791,636 $ 34,297,205 $ 36,501,204
MISCELLANEOUS 914,683 895,275 985,275 874,914
TRANSFERS 572,961 548,132 693,204 542,253
BOND PROCEEDS 72,407,342
TOTAL 106,371,660 36,235,043 35,975,684 37,918,371
EXPENDITURES
MUD REBATES 6,936,997 7,710,558
BOND PAYMENT 99,925,103 28,042,304
SHORT-TERM NOTE 1,874,519
7,157,603
27,897,041
7,587,066
31,354,028
TOTAL 108,736,619 35,752,862
35,054,644 38,941,094
REVENUES OVER (UNDER) EXPENDITURES (2,364,959) 482,181 921,040 (1,022,723)
FUND BALANCE - BEGINNING 8,276,420 6,410,451 5,911,461 6,832,501
FUND BALANCE - ENDING $ 5,911,461 $ 6,892,632 $ 6,832,501 $ 5,809,778
Reserve 10%
Over Policy
Funds Committed
Uncomitted Fund Balance
$ 3,698,269 $ 3,575,286 $ 3,505,464 $ 3,894,109
$ 2,213,192 $ 3,317,346 $ 3,327,036 $ 1,915,668
$ - $ 5,122,240 $ - $ 5,011,130
$ 5,911,461 $ 1,770,392 $ 6,832,501 $ 798,648
Property Tax revenue includes $5,011,130 in "committed" fund balance the City has pledged for use if property tax revenue does not come
Breakout of Property Tax Rate
Li FUND (OPERATIONS)
$0.2792
$21.0M
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Tax -Supported Debt to Taxable Assessed Valuation
4.77/1
4.35%,
3.34%
3.05°,
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 (a)
(a) Includes the City's proposed Series 2018 Certificates of Obligation and Series 2018 Permanent Improvement Bonds.
Preliminary, subject to change.
47
DEBT SERVICE FUND SUMMARY
FY 2019 ADOPTED BUDGET
OVERVIEW
The Debt Service Fund, also known as the interest and sinking fund, is established by ordinance and accounts for
the issuance of debt and provides for the payment of debt, including principal, interest and tax rebates to in -city
municipal utility districts as payments become due. In the Debt Service Fund, an ad valorem (property) tax rate
and tax levy are required to be computed and levied, which will be sufficient to produce the money to satisfy annual
debt service requirements. The City of Pearland has no general obligation legal debt limit other than a ceiling on
the tax rate specified by the State of Texas. Under the rules of the Texas Attorney General, the City may issue
general obligation debt in an amount no greater than that which can be serviced by a debt service tax rate of $1.50
per $100 assessed valuation, based on a 90% collection rate.
Based on property values estimated, the budget as proposed assumes a Debt Service tax rate of $0.4300 per $100
assessed valuation, which is the same as the FY 2018 debt service tax rate, to meet fiscal year 2019 obligations.
The Debt Service tax rate generates $36,211,204 in current property taxes at a 99.0% collection rate, including
$5,011,130 of fund balance the City has committed to cover debt service payments should property taxes not
generate enough revenue to cover them. The commitment is the second year the City has designated funds to
lower the Debt Service Fund Tax Rate, committing $5.1 million in FY18 as well. In FY 18, the City did not have to
use any of that committed fund balance to cover debt service payment, as Property Tax revenue was sufficient to
cover obligations.
Fund revenues includes $794,914 from the University of Houston -Clear Lake System for debt service associated
with the construction of the University of Houston -Clear Lake Pearland Campus, which they occupy. Revenues
also include transfers from the Water -Sewer Fund in the amount of $444,607 for debt associated with water/sewer
construction issued with General Obligation debt to save interest costs.
Expenditures total $38,941,094 for fiscal year 2019 and include $31,216,028 in bond principal and interest
payments. Debt (General Obligation and Certificates of Obligation) anticipated to be issued includes $41.45 million
in fiscal year 2019 pursuant to the City's capital improvement program of which, $16 million is reimbursable from
TIRZ #2, once obligations ahead of the City are paid and the TIRZ has enough increment to pay the City.
After the General Obligation issuances in 2019, there will remain $8 million in bonds yet to be issued at September
30, 2019 out of the $162.0 million voted in 2007. Total principal outstanding paid from property taxes at September
30, 2019 is anticipated to be $301.3 million (this excludes new debt and property tax backed debt paid by the
water/sewer fund).
Net debt per capita is $2,516 at September 30, 2019, down from $2,690 in fiscal year 2018, and up from $2,163 in
fiscal year 2006, the year before the $162 million in bonds were voted. Net debt per capita has grown 16%, while
population has grown 57% during the same time period, from 79,322 to projected 125,000 in fiscal year 2019.
Population growth has generated the need for increased and enhanced services resulting in a significant capital
improvement program; principal outstanding growing from $172 million in fiscal year 2006 to the $319.92 million at
September 30, 2018. Debt levels are mitigated due to a strong regional economy, a large and diverse tax base,
and prudent financial management. Moody's Investor Services and Fitch Ratings have assigned bond credit ratings
of Aa2 and AA respectively. The ratings put the City of Pearland in the echelon of low credit risk issuers.
Tax rebates to in -city MUD's total $7,587,066, an increase of $429,463 from fiscal year 2018 year-end projections,
as newer districts continue to develop as well as increase in valuations.
The FY 2019 Debt Service ending fund balance at September 30, 2019 is projected to be $5,809,778 and is
$1,915,668 over the reserve policy of $3,894,109. However, that balance includes the aforementioned assignment
for potential use in debt service in FY 2019.
A tax rate increase may be needed in fiscal years 2020 and 2021 due to the continued issuance of voter approved
bonds to complete capital projects as well as a potential 2019 new bond referendum of approximately $124.54
million currently incorporated into the forecast with the first issuance in 2019.
48
DEBT SERVICE FUND
IN -CITY MUNICIPAL UTILITY DISTRICT (MUD) DETAIL
FY 2019 ADOPTED BUDGET
A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission
of Environmental Quality (TCEQ) to provide water, sewage, drainage and other utility -related services within the MUD
boundaries. The City collects property tax revenue (the City's normal property Tax Rate applicable to all City
properties) for properties within each MUD then makes annual payments or "rebates" of a portion of the City's
collection back to each MUD within the City's boundaries. The rebates are considered a portion of the City's annual
debt obligations to be paid by the debt service component of the tax rate.
Certain Municipal Utility Districts (MUDs) located within the City limits receive a property tax rebate from the City. The
Districts that receive these rebates include Brazoria County MUDs 17, 18, 19, 23, 26, 28, 34, 35 and 509. Most
receive a 15 cent rebate, either in perpetuity until certain MUDs dissolve or until debt service tax rates change in
certain ways outlined in the MUD agreements. However, amended Utility Agreements that went into effect on July 13,
2015 have resulted in the City reducing its rebates down to 10 cents for annexes to existing MUDs, or new Districts
formed after that date. For example, the original Harris County MUD 509 annexed new land into its MUD in 2015
(Riverstone Ranch, Massey Lake, Afton Lake, Baker's Landing, and Barry Rose/Pearland Parkway) and receives a
10 cent rebate from these Harris-Brazoria MUD 509 areas instead of the 15 cents per $100 of appraised values the
older, original territory, solely located in Harris County receives.
MUDs 17, 18, 19 and 23 independently receive the 15 cent rebate in perpetuity, but the rebate will go away for each
of these MUDs as each of these is dissolved*. Alternatively, MUDs 26, 34, 35 and original Harris County portion of
MUD 509 are subject to a proportional attrition of the rebate if the debt service portion of their tax rate goes below 80
cents. Should the debt service portion of these MUDs' tax rates go below 65 cents, that MUD's rebate goes away
entirely. This is the case with MUD 35**.
Brazoria County MUDs 26, 34 and Harris County MUD 509 are all above 65 cents. These MUDs have kept their debt
service portion of their tax rate at 66 cents in order to retain the City's rebate. They use this excess to call and pay off
their own debt as opposed to lowering their tax rate. The rebate for MUD 28 does not take into consideration whether
it is debt service or O&M, so if that District's overall tax rate decreases by 15 cents, the City is thereafter relieved of
its obligation to make the annual payment.
MUD DESCRIPTION
BRAZ/FT BEND MUD 1
MUD 17
MUD 18
MUD 19
MUD 23
MUD 26
MUD 28
MUD 34
MUD 35**
MUD 509
TOTAL MUD REBATES
FY 2017
TAX RATE REBATE ACTUAL
0.8480 N/A 1,705,964
0.3800 0.1500 688,394
0.3900 0.1500 623,744
0.4700 0.1500 813,863
0.4700 0.1500 351,915
0.7000 0.1500 1,198,373
0.8000 0.1500 705,462
1.0000 0.1500 656,723
0.6900 N/A 116,608
0.8500 0.1500 75,951
6,936,997
FY 2018
YEAR END
AMENDED
1,655,022
730,416
648,823
798,792
356,073
1,227,737
808,067
637,485
143,219
151,969
7,157,603
FY 2019
ADOPTED
BUDGET
1,754,324
774,241
687,753
846,720
377,438
1,301,402
856,552
675,735
151,813
161,088
7,587,066
*An in -City MUD can be dissolved once it has paid off all of its debt in full, all infrastructure projects in the District completed,
developer reimbursements made and other administrative costs reconciled, and the governing body of the MUD has officiated the
dissolution of the District.
**MUD 35 has a debt service portion of its tax rate at $0.50 so no longer qualifies for rebate. Budget will be adjusted at mid -year to
reflect the change
49
GOVERNMENTAL DEBT MATURITY SCHEDULE
AS OF 9/30/2018
GENERAL LONG-TERM DEBT*
Fiscal Year
Principal Interest
Total
2018-2019 18,660,000 12,529,207 31,189,207
2019-2020 19,130,000 11,894,810 31,024,810
2020-2021 19,480,000 11,167,433 30,647,433
2021-2022 20,045,000 10,376,595 30,421,595
2022-2023 20,685,000 9,519,283 30,204,283
2023-2024 21,310,000 8,586,789 29,896,789
2024-2025 22,115,000 7,625,414 29,740,414
2025-2026 22,730,000 6,653,108 29,383,108
2026-2027 23,520,000 5,626,739 29,146,739
2027-2028 24,300,000 4,609,753 28,909,753
2028-2029 25,075,000 3,626,611 28,701,611
2029-2030 17,245,000 2,803,783 20,048,783
2030-2031 17,700,000 2,163,749 19,863,749
2031-2032 16,965,000 1,517,274 18,482,274
2032-2033 8,085,000 1,033,469 9,118,469
2033-2034 8,200,000 733,750 8,933,750
2034-2035 5,975,000 467,941 6,442,941
2035-2036 4,585,000 258,953 4,843,953
2036-2037 2,750,000 114,556 2,864,556
2037-2038 1,370,000 29,400 1,399,400
TOTAL
319,925,000 101,338,617 421,263,617
Series Name Principal Amount
Certificates of Obligation Series 2007 3,285,000
Permanent Improvement Bonds Series 2008 405,000
Certificates of Obligation Series 2008 185,000
Permanent Improvement and Refunding Bonds Series 2009* 1,205,000
Certificates of Obligation Series 2009 645,000
Certificates of Obligation Series 2009-A 1,275,000
Permanent Improvement Bonds Series 2010A 9,455,000
Permanent Improvement Bonds Series 2011 4,415,000
Certificates of Obligation Series 2011 630,000
BC MUD 4 Series 2011 260,000
Permanent Improvement Refunding Bonds Series 2012* 35,620,000
Permanent Improvement Bonds Series 2013 7,840,000
Certificates of Obligation Series 2013 2,330,000
Permanent Improvement and Refunding Bonds Series 2014 36,035,000
Certificates of Obligation Series 2014 3,700,000
Permanent Improvement and Refunding Bonds Series 2015 46,070,000
Permanent Improvement Bonds Series 2015 7,220,000
Certificates of Obligation Series 2015 4,125,000
Permanent Improvement and Refunding Bonds Series 2015A 8,555,000
Permanent Improvement and Refunding Bonds Series 2016A 31,630,000
Certificates of Obligation Series 2016 12,595,000
Permanent Improvement and Refunding Bonds Series 2016E 27,185,000
Permanent Improvement and Refunding Bonds Series 2017 54,840,000
Certificates of Obligation Series 2017 5,895,000
Permanent Improvement Bonds Series 2018 7,440,000
Certificates of Obligation Series 2018 7,085,000
TOTAL 319,925,000
Does not include new debt anticipated to be issued.
* Excludes refunding portion associated with Water/Sewer
50
$35,000,000
$30,000,000 -
$25,000,000 -
$20,000,000 -
$15,000,000 -
$10,000,000 -
$5,000,000 -
0.0500
0.0450
0.0400
0.0350
0.0300
0.0250
0.0200
0.0150
0.0100
0.0050
0.0000
GOVERNMENTAL DEBT TO MATURITY
AS OF 9/30/2018
■Principal 0Interest
Ratio of Net Bonded Debt to Assessed Net Bonded Debt per Capita
Valuation
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
3,100
3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GENERAL DEBT SERVICE SCHEDULE
FY 2019 ADOPTED BUDGET
AMOUNT
AMOUNT PAYMENT OUTSTANDING
DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/19
3/1/2019 Series 2007 Certificates of 23,250,000
9/1/2019 Obligation
Fiscal Year Total
3/1/2019 Series 2008 Permanent Improvement 22,835,000
53,381 53,381
53,381 53,381
0 106,763 106,763 3,285,000
405,000 10,125 415,125
9/1/2019 Bonds 0
Fiscal Year Total
3/1/2019 Series 2008 Certificates of
405,000 10,125 415,125 0
9,000,000 185,000
3,700 188,700
9/1/2019 Obligation 0
Fiscal Year Total
3/1/2019 Series 2009 Permanent Improvement
9/1/2019 and Refunding Bonds"
185,000 3,700 188,700 0
14,580,000 590,000
20,024 610,024
9,994 9,994
Fiscal Year Total 590,000 30,018 620,018 615,000
3/1/2019 Series 2009 Certificates of 8,520,000 12,900 12,900
9/1/2019 Obligation 320,000 12,900 332,900
Fiscal Year Total 320,000 25,800 345,800 325,000
3/1/2019 Series 2009A Certificates of
9/1/2019 Obligation
Fiscal Year Total
3/1/2019 Series 2010A Permanent Improvement
9/1/2019 Bonds
Fiscal Year Total
3/1/2019 Series 2011 Permanent Improvement
9/1/2019 Bonds
3/1/2019 Series 2011 Certificates of
9/1/2019 Obligation
3/1/2019 Series 2011 BC MUD 4
9/1/2019 Refunding Bonds"
Fiscal Year Total
Fiscal Year Total
12,145,000 640,000
21,199 661,199
10,319 10,319
640,000 31,518
671,518 635,000
12,415,000 415,000 180,426 595,426
174,201 174,201
415,000 354,628
5,400,000 175,000
769,628 9,040,000
83,766 258,766
80,266 80,266
175,000 164,031
2,095,000 210,000
210,000
2,640,000 130,000
Fiscal Year Total 130,000
3/1/2019 Series 2012 Permanent Improvement
9/1/2019 Refunding Bonds"
6,584
4,389
10,973
4,550
2,275
6,825
339,031 4,240,000
216,584
4,389
220,973 420,000
134,550
2,275
136,825 130,000
43,575,000 3,210,000 614,250 3,824,250
550,050 550,050
Fiscal Year Total 3,210,000 1,164,300 4,374,300 32,410,000
3/1/2019 Series 2013 Permanent 9,315,000 320,000 166,634 486,634
9/1/2019 Improvement Bonds 160,234 160,234
Fiscal Year Total 320,000 326,868 646,868 7,520,000
3/1/2019 Series 2013 Certificates 2,745,000 90,000 51,844 141,844
9/1/2019 of Obligation 50,494 50,494
Fiscal Year Total 90,000 102,338 192,338 2,240,000
52
GENERAL DEBT SERVICE SCHEDULE
FY 2019 ADOPTED BUDGET
AMOUNT
AMOUNT PAYMENT OUTSTANDING
DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/19
3/1/2019 Series 2014 Permanent Improvement
9/1/2019 Refunding Bonds`
3/1/2019 Series 2014 Certificates
9/1/2019 of Obligation
Fiscal Year Total
40,410,000 1,240,000 795,791 2,035,791
777,241 777,241
1,240,000 1,573,031 2,813,031 34,795,000
4,625,000 230,000 56,109 286,109
53,809 53,809
Fiscal Year Total 230,000 109,919 339,919 3,470,000
3/1/2019 Series 2015 Permanent Improvement 47,165,000 2,130,000 1,033,634 3,163,634
9/1/2019 Refunding Bonds 1,001,684 1,001,684
Fiscal Year Total
3/1/2019 Series 2015 Permanent Improvement
9/1/2019 Bonds
3/1/2019 Series 2015 Certificates
9/1/2019 of Obligation
2,130,000 2,035,319 4,165,319 43,940,000
8,495,000 425,000
107,663 532,663
103,413 103,413
Fiscal Year Total 425,000 211,075 636,075 6,795,000
4,860,000 245,000
62,050 307,050
59,600 59,600
Fiscal Year Total 245,000 121,650 366,650 3,880,000
3/1/2019 Series 2015A Permanent Improvement
9/1/2019 Refunding Bonds
10,210,000 1,990,000 126,988 2,116,988
97,138 97,138
Fiscal Year Total 1,990,000 224,125 2,214,125 6,565,000
3/1/2019 Series 2016A Permanent Improvement 33,275,000 820,000 628,475 1,448,475
9/1/2019 Refunding Bonds 620,275 620,275
3/1/2019 Series 2016 Certificates
9/1/2019 of Obligation
Fiscal Year Total
820,000 1,248,750 2,068,750 30,810,000
13,995,000 700,000
160,925 860,925
153,925 153,925
Fiscal Year Total 700,000 314,850 1,014,850 11,895,000
3/1/2019 Series 2016B Permanent Improvement
9/1/2019 Refunding Bonds
Fiscal Year Total
29,840,000 2,050,000 640,775 2,690,775
599,775 599,775
2,050,000 1,240,550 3,290,550 25,135,000
3/1/2019 Series 2017 Permanent Improvement 56,900,000 1,095,000 1,188,634 2,283,634
9/1/2019 Refunding Bonds 1,161,259 1,161,259
Fiscal Year Total
3/1/2019 Series 2017 Certificates
9/1/2019 of Obligation
Fiscal Year Total
3/1/2019 Series 2018 Permanent Improvement
9/1/2019
3/1/2019 Series 2018 Certificates
9/1/2019 of Obligation
TOTAL
1,095,000 2,349,894 3,444,894 53,745,000
6,205,000 315,000
98,700 413,700
95,550 95,550
315,000 194,250 509,250 5,580,000
7,440,000 375,000
144,004 519,004
146,850 146,850
Fiscal Year Total 375,000 290,854 665,854 7,065,000
7,085,000 355,000
137,157 492,157
139,900 139,900
Fiscal Year Total 355,000 277,057 632,057 6,730,000
*Excludes Water/Sewer Component
Does not include new debt anticipated to be issued.
439,020,000 18,660,000 12,529,207 31,189,207 301,265,000
53
THIS PAGE INTENTIONALLY BLANK
GENERAL FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The General Fund provides the financing for all of the City of Pearland's basic services except water, sewer and
solid waste, which is accounted for through the Water & Sewer and Solid Waste Funds. The principal sources of
revenue include property taxes, sales taxes, franchise taxes, licenses and permits, fines and forfeitures, and
charges for services. Expenditures are comprised of five major functional areas: Public Works, Public Safety,
General Government, Community Services, and Parks and Recreation. Public Safety provides all emergency
services to the citizens of Pearland and accounts for 57.3% of total operating expenditures (excluding transfers).
General Government includes departments such as City Council, City Manager, Finance, Legal, and Human
Resources. Expenditures include all personnel costs for 583 full-time positions and 127 part-time positions
including utilities, fuel, park and right-of-way maintenance, and street lighting, just to name a few.
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
REVENUES
PROPERTY TAXES
SALES AND USE TAXES
FRANCHISE FEES
LICENSES & PERMITS
FINES & FORFEITURES
CHARGES FOR SERVICE
MISCELLANEOUS
TRANSFERS IN
TOTAL REVENUES
EXPENDITURES
GENERAL GOVERNMENT
PUBLIC SAFETY
COMMUNITY SERVICES
PUBLIC WORKS
PARKS & RECREATION
TOTAL OPERATING EXPENDITURES
TRANSFERS OUT
TOTAL EXPENDITURES
REVENUES OVER/(UNDER) EXPENDITURES
$ 17,910,289 $ 20,705,007 $ 20,453,523 $ 21,332,769
20,457,029 21,368,690 21,957,016 22,855,294
6,975,738 7,120,000 7,154,583 7,296,694
5,434,917 5,590,150 3,783,035 3,785,535
2,510,849 2,550,450 2,313,750 2,110,750
15, 396, 511 16, 753, 256 16, 203, 603 17, 618, 566
1,605,847 1,158,475 3,164,027 1,233,806
3,791,394 3,824,407 3,816,116 4,560,460
74,082,574 79,070,435
78,845,653
80,793,874
10,844,828 11,199,377 10,665,781 10,494,897
44,244,560 42,582,371 43,809,708 45,258,605
4,085,692 4,281,761 4,261,739 4,307,687
12,881,801 13,457,097 14,934,853 12,651,388
6,575,912 6,158,101 6,506,972 6,335,737
78,632,794 77,678,707 80,179,053 79,048,314
2,008,856 1,036,811 1,141,000 1,375,798
80,641,650 78,715,518 81,320,053
(6,559,077) 354,917
(2,474,400)
80,424,112
369,762
BEGINNING FUND BALANCE 20,919,483
ENDING FUND BALANCE
Policy - 2 months Recurring Oper.
Fund Balance Over Policy
12, 096,765 14,360,407
11,886,007
$ 14,360,407 $ 12,451,682 $ 11,886,007
$ 12,255,769
11,808,269
2,552,138
11,923,040
528,642
11,828,989
57,018
12,181,840
73,929
55
GENERAL FUND
REVENUE AND EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
OVERVIEW — FUND BALANCE
The City anticipates ending FY 2018 on September 30, 2018, with a fund balance of $11,886,007, $57,018 over fund
balance policy. The adopted FY 2019 fund balance over policy is increased to $73,929, with the adopted ending fund
balance of $12,255,769 for FY 2019.
REVENUES
Revenues in FY 2019 are anticipated to exceed those in 2018 in all categories except Fines & Forfeitures and
Miscellaneous revenues. Overall, the increase in total revenues from FY 2018 is 2.5%. Property tax, sales tax and
charges for services are the three major revenue sources for the City.
Property Tax revenues increased in 2019 by 4.0% over FY 18 year-end amended revenue. FY 2019 sales tax revenue
is projected to grow at 3.8%. Charges for Services include TIRZ administration fees, which are increasing by
$1,240,629 as a result of property values in the TIRZ increasing. Miscellaneous revenues are decreasing due
additional anticipated Hurricane Harvey Reimbursement over and above the $1.6 million budgeted in FY18. Fines &
Forfeitures for FY 19, based on the trajectory of the last several years, are expected to decline. All other revenue
sources have minor changes.
Total Revenues
FY 2019 Adopted $80,793,874
FY 2018 Amended $78,845,653
Increase / (Decrease) $ 1,948,221 2.5% increase
EXPENDITURES
Fiscal year 2019 total expenditures are $80,424,112, 1.1% lower than the FY 2018 Amended Budget. Salaries and
benefits remain the major expenditure for FY 19, at 73% of the total an increase of three percentage points over FY
2018 Amended.
Major changes in the General Fund are described in the Budget Overview section. Police and Fire remained the main
focus of the supplemental funding. The FY 2019 adopted budget contains four new police officers, and continues to
bring firefighters on board with six new positions. Public Works saw a decline of $1,014,000 in funding for street and
sidewalk rehabilitation.
A 2% cost of living increase is included for all personnel, to support recruitment and retention efforts. This is in addition
to the annual 3% step increases for Certified Police Officers and an additional six months of elevated wages resulting
from the FY18 100% implementation of the Compensation & Classification Study.
Total Expenditures
FY 2019 Adopted
FY 2018 Amended
Increase / (Decrease)
$80,424,112
$81, 320, 053
($ 895,941) 1.1% decrease
56
Miscellaneous
Fines & Forfeitures
Licenses & Permits
Transfers In
Franchise Fees
Charges for Service
Property Taxes
Sales Taxes
3663847
GENERAL FUND SUMMARY
FY 2019 ADOPTED BUDGET
Total Revenues - $80.8M
2%
3%
5%
5%
1
1
9%
I
0% 5% 10% 15%
Total Expenditures - $80.4M
By Function/Department
Transfers Out j 2%
Community Services 5%
Parks & Recreation
General Government
Public Works
Public Safety
8%
1W
12%
16%
20%
25%
30%
56°
0% 10% 20% 30% 40% 50% 60%
57
GENERAL FUND EXPENDITURE SUMMARY
(All Departments)
FY 2019 ADOPTED BUDGET
General Fund Expenditures by Type
Other
Capital Outlay
Inventory
Transfers
Motor Pool Transfers
Equipment Maintenance
Buildings & Grounds
Materials & Supplies
Miscellaneous Services
Salaries & Wages
BY CATEGORY
0.3%
0.5%
] 0.6%
1.7%
2.3%
2.4
2.7%
3.0%
13.4%
73.
1%
0% 20% 40% 60% 80%
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDINGS & GROUNDS
EQUIPMENT REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
OTHER CHARGES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
SUB -TOTAL
TRANSFERS
TOTAL
$ 53,274,036 $ 55,529,052 $ 55,315,153 $ 58,806,243
2,530,393 2,495,582 2,368,289 2,333,953
3,128,950 2,814,437 3,938,980 2,158,391
3,236,922 3,009,006 3,328,257 1,941,461
11,153,609 10,771,635 11,615,530 10,809,209
18,677 249,986 148,969 251,245
522,502 492,370 746,065 443,865
4,767,706 2,316,639 2,717,810 425,638
1,878,309
78,632,794 77,678,707 80,179,053 79,048,314
2,008,856 1,036,811 1,141,000 1,375,798
$ 80,641,650 $ 78,715,518 $ 81,320,053 $ 80,424,112
58
FUNCTION/DEPARTMENT
GENERAL FUND EXPENDITURES
BY FUNCTION/DEPARTMENT
FY 2019 ADOPTED BUDGET
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
GENERAL GOVERNMENT
CITY COUNCIL
CITY MANAGER
HUMAN RESOURCES
CITY SECRETARY
LEGAL
INFORMATION TECHNOLOGY
FINANCE
OTHER REQUIREMENTS'
GENERAL GOVERNMENT TOTAL
PUBLIC SAFETY
POLICE
POLICE ADMINISTRATION
PATROL
INVESTIGATIONS
COMMUNITY SERVICE
COMMUNICATIONS & RECORDS
JAIL
COMMERCIAL VEHICLE ENFORCEMENT
SCHOOL RESOURCE OFFICERS (SRO)
TRAINING
ANIMAL SERVICES
FIRE
FIRE ADMINISTRATION
FIRE OPERATIONS
FIRE MARSHAL
EMERGENCY MANAGEMENT
HEALTH/CODE ENFORCEMENT
PUBLIC SAFETY TOTAL
COMMUNITY SERVICES
COMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT ADMINISTRATION
PERMITS & INSPECTIONS
PLANNING
COMMUNICATIONS
MUNICIPAL COURT
L I BRARY2
COMMUNITY SERVICES TOTAL
PUBLIC WORKS
PUBLIC WORKS AND ENGINEERING ADMINISTRATION
PUBLIC WORKS OPERATIONS ADMINISTRATION
TRAFFIC OPERATIONS AND MAINTENANCE
CUSTODIAL SERVICES
FLEET MANAGEMENT
STREETS & DRAINAGE
RIGHT-OF-WAY MAINTENANCE
FACILITIES MANAGEMENT
ENGINEERING & CAPITAL PROJECTS:
ENGINEERING
CAPITAL PROJECTS
PUBLIC WORKS TOTAL
$ 109,990
993,873
1,050,408
409,185
762,220
3,320,716
2,425,043
1,773,393
10,844,828
$ 141,818
1,040,073
1,051,403
359,115
784,103
2,899,806
2,178,228
2,744,831
11,199,377
$ 132,565
1,024,840
1,084,901
396,530
867,327
3,267,120
2,204,838
1,687,660
10,665,781
$ 143,741
1,076,495
1,115, 248
381,108
818,855
3,024,785
2,201,814
1,732,851
10,494,897
28,675,461
1,896,826
16,251,937
3,321,348
1,071,311
2,095,897
1,151,684
284,880
1,422,500
305,944
873,134
27,504,412
1,798,785
14,888,939
3,636,392
925,337
2,226,618
1,201,135
254,857
1,360,216
308,700
903,433
27,975,224
1,982,737
15,313,820
3,519,229
946,011
2,238,773
1,152,026
262,189
1,426,625
307,470
826,344
28,069,784
1,880,489
15,311,045
3,377,595
1,047,357
2,313,723
1,209,394
268,353
1,449,792
317,535
894,501
15,569,099
1,203,877
12,728,633
934,391
108,703
593,496
15,077,959
1,154,913
12,270,764
811,465
214,682
626,135
15,834,484
1,174,040
12,972,592
850,980
214,990
621,882
17,188,821
1,292,831
14,127, 759
906,747
225,314
636,170
44,244,560 42,582,371 43,809,708 45,258,605
420,764 379,210
1,338,928 1,472,939
612,084 677,912
533,439 525,405
758,631 819,663
421,845 406,632
440,227 524,359
1,305,330 1,357,631
740,405 613,400
527,638 568,378
844,738 840,995
403,401 402,924
4,085,692 4,281,761 4,261,739 4,307,687
184,077
1,134,865
440,357
467,075
4,990,354
1,455,178
1,917,190
1,285,559
1,007,147
12,881,801
182,287
1,118, 369
480,627
428,343
5,149,446
1,670,686
1,690,191
1,529,988
1,207,160
13,457,097
618,504
1,073,192
476,585
391,941
5,900,063
1,673,911
2,033,448
1,604,360
1,162, 849
14,934,853
317,576
950,161
530,760
4,299,832
1,972,997
1,658,857
1,580,840
1,340,365
12,651,388
59
FUNCTION/DEPARTMENT
GENERAL FUND EXPENDITURES
BY FUNCTION/DEPARTMENT
FY 2019 ADOPTED BUDGET
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
PARKS & RECREATION
ADMINISTRATION 642,400 772,304 784,212 801,816
RECREATION CENTER/NATATORIUM 2,521,430 429,780 388,919 433,712
ATHLETICS 254,570 374,840 353,212 359,931
SPECIAL EVENTS 385,564 402,941 404,827 393,924
SENIOR PROGRAM 268,431 285,317 262,587 302,682
AQUATICS 17,100 544,495 627,068 584,451
PARKS 2,197,318 1,913,190 2,249,286 1,966,711
NATURAL RESOURCES 287,429 304,702 273,085 275,889
RECYCLING 1,672 1,525 1,200 1,200
RECREATION OPERATIONS 1,129,007 1,162,576 1,215,421
TRANSFERS
PARKS & RECREATION TOTAL 6,575,912 6,158,101 6,506,972 6,335,737
TOTAL OPERATING EXPENDITURES 78,632,794 77,678,707 80,179,053 79,048,314
2,008,856 1,036,811 1,141,000 1,375,798
GENERAL FUND TOTAL $ 80,641,650 $ 78,715,518 $ 81,320,053 $ 80,424,112
Other Requirements excludes transfers, which are listed after Total Operating Expenditures.
2 Library employees' salaries are funded by the County; the City pays all operating expenses.
Community Services
Parks & Rec
General Government
Public Works
Public Safety
*Excludes Transfers
General Fund Expenditures
by Function/Department
FY 2019 Adopted Operating Budget*
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
60
General Government
Mayor & City Council
Legal
City Manager
Budget
Information Technology
Deputy City Manager
City Secretary
Finance
Human Resources
GENERAL GOVERNMENT
EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
EXPENDITURES BY DEPT / DIVISION
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
CITY COUNCIL
CITY MANAGER
LEGAL
CITY SECRETARY
HUMAN RESOURCES
FINANCE
INFORMATION TECHNOLOGY
OTHER REQUIREMENTS*
GENERAL GOVERNMENT TOTAL
$ 109,990
993,873
762,220
409,185
1,050,408
2,425,043
3,320,716
1,773,393
$ 10,844,828
$ 141,818
1,040,073
784,103
359,115
1,051,403
2,178,228
2,899,806
2,744,831
$ 11,199,377
$ 132,565
1,024,840
867,327
396,530
1,084,901
2,204,838
3,267,120
1,687,660
$ 10,665,781
$ 143,741
1,076,495
818,855
381,108
1,115, 248
2,201,814
3,024,785
1,732,851
$ 10,494,897
*Expenditures listed here for Other Requirements do not include transfers.
EXPENDITURES BY CATEGORY
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
EQUIPMENT REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
OTHER CHARGES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
GENERAL GOVERNMENT TOTAL
$ 5,597,326
169,476
1,621,154
2,941,310
15,017
328,409
172,137
$ 6,357,153
188,392
1,561,668
2,770,963
246,986
452,315
28,532
$ 5,451,590
189,200
1,556,224
3,033,386
145,969
656,154
36,659
$ 5,400,245
183,873
1,609,044
3,044,115
248,245
406,600
5,699
$ 10,844,828 $ 11,606,009 $ 11,069,182 $ 10,897,821
General Government Expenditures as Percentage of Operating Budget
FY 2019 - 13.8% of the $79.0 million Operating Budget
City Council
City Secretary
Library
Legal
City Manager
Human Resources
Other Requirements
Finance
Information Technology
0.0%
0.5%
1.0%
1.5%
2.0%
2.5% 3.0%
3.5%
3.
4.0%
62
CITY COUNCIL
GOALS
• Maintain strong relationships with Federal, State and Local entities in support of the City's current and future
financial needs involving transportation, facilities, and major capital improvement priorities.
• Prioritize Capital Improvement Projects.
• Establish annual tax rate and debt service rate.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Awarded various Capital Improvement projects to assist with the growth and maintenance of the City.
• Streamlined the Conditional Use Process.
• Maintained Debt Service Tax rate and strong credit rates.
• Maintained Water and Sewer rates; Finances of the Enterprise Fund are Strong.
FISCAL YEAR 2019 OBJECTIVES
• Provide leadership and direction over all bond issuances and refinancing's.
• Review Financial Policies including fund balances ranges.
• Provide leadership and direction for capital projects with adoption of CIP and updates to Land Use Plan.
• Conduct Early Budget Input Session in accordance with the City's Strategic Priorities.
• Adopt an annual budget for 2019/2020 that will ensure sustainability for the City over the next 5 to 10 years.
• Provide leadership in accordance with the Governance Model.
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Ordinances Considered 90 71 49* 55
Resolutions Considered 250 201 233 256
*Instituted new Conditional Use Process (CUP). New process adopts CUP by Resolution instead of Ordinance.
63
CITY MANAGER
OVERVIEW
The City Manager is appointed by the City Council to administer the daily operations of the City and implement
policies established by City Council. The City Manager is responsible for preparation, filing and management of
the annual budget to meet the organization goals, and reports to the City Council on the City's financial position.
The City Manager also approves and coordinates materials for the Council meetings, special meetings, and public
hearings.
Professionals in the Office of the City Manager assists the City Manager in those duties. The Deputy City Manager
has overall portfolio responsibilities to help guide the City and leads the General Government departments that
includes Finance and Utility Billing, Human Resources, Parks and Recreation, Municipal Court, Communications,
City Secretary and the Pearland Convention and Visitors Bureau. The Assistant City Manager has leadership
responsibilities over Capital Projects and Engineering, Public Works, Traffic Management, Facility Maintenance
and oversees the 5 Year Capital Improvement Plan. There is a Special Projects/Grants Administrator and an
Executive Assistant in the office to provide technical support to key projects and staff. The Executive Assistant
oversees two part-time Receptionist positions for City Hall.
Key Budget Items for FY 2019 Include:
• No significant changes.
GOALS
• Keep City Council informed on pressing business of the City.
• Provide quarterly financial and capital project progress reports to City Council.
• Develop an annual operating budget that meets the needs of a growing and dynamic City.
• Maintain and expand cooperative relationships with Pearland ISD, Alvin ISD, Brazoria County, Harris County,
Houston Galveston Area Council, TxDOT, Brazoria County Drainage District #4, etc.
• Continue to advocate for added traffic safety/transportation capacity and mobility improvements city-wide.
• Support Strategic Economic Development growth as described in the adopted 20/20 Plan.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Held City Council Early Budget Input Session on February 17, 2018
• Worked with TIRZ #2 Board on Plan Amendment # 4 that will provide funding for Shadow Creek Ranch
Library; Shadow Creek Ranch Fire/Police Station; Shadow Creek Ranch Park, Phase II Improvements;
Shadow Creek Trail; Shadow Creek Parkway Landscaping; Shadow Creek Ranch Sidewalks; Shadow
Creek Ranch Street Lighting and Intersection Improvements all within the TIRZ 2 boundary.
• Submitted annual operating budget recommending the Effective Tax Rate in September of 2018.
FISCAL YEAR 2019 OBJECTIVES
• Finalize the City's transition into a new Enterprise Resource Planning (ERP) System.
• Present funding issuance and refunding opportunities to maintain or reduce the City's overall debt service;
Highlight portion of debt service to developer subdivisions with In -City MUD's.
• Propose plan for City's 2019 Bond Referendum question to electorate.
• Process reimbursement payments from disaster relief for Hurricane Harvey.
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Number of authorized FTE1 employees
per 1,000 population 6.38 6.28 6.28 6.28
GF Operating Budget $ per capita $660 $713 $660 $643
'The number of authorized FTE employees is based on the budgeted amount of full-time equivalent positions, including
approved changes.
64
HUMAN RESOURCES
OVERVIEW
The Human Resources Department is an internal services department designed to offer leadership and support to
the organization, build relationships and employee connections. The Department provides oversight of programs and
systems that shape the framework for our work culture. These programs and systems affect how employees perform
as a workforce, as well as what is perceived as valued by the organization. The Department is comprised of two
divisions Human Resources and Risk Management. Combined these divisions are responsible for a variety of
workforce services including: talent management, organizational development, salary and benefits management,
health and wellness, organizational support, property and liability insurance program, workers compensation
program, safety and loss prevention, and contractual insurance requirements.
STRATEGIC COUNCIL PRIORITY: A highly -qualified and well -trained workforce, in all areas, results in efficient,
effective services, Fiscally Responsible Government, and support for departments' ability to meet their goals towards
other Strategic Council Priorities.
Key Budget Items for FY 2019 Include:
♦ No significant items.
GOALS
♦ Recruit, engage and retain top talent.
♦ Manage risks within the organization.
♦ Promote work -life balance and wellness.
♦ Develop/manager/adapt effective and efficient support structures, systems and process
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Full implementation of the Human Resource and Payroll modules of the New World Systems.
♦ Developed and implemented Personnel Action Form (PAF) process resulting in a digital process that
reduced/combined a numbers of forms, improved efficiency and tracking
♦ Initiated and worked with a team to conduct the first hiring event for Public Works Department.
♦ Developed and led Recruitment & Selection training for supervisors.
♦ 100% response to Open Enrollment
♦ Hosted immunization clinic (HEP and Tetanus) for Public Works employees.
♦ Increased collection of damages from 3rd parties by 66% from FY17.
♦ Increased new account creations by 12% for 457 and 45% on IRA accounts.
FISCAL YEAR 2019 OBJECTIVES
♦ Implementation of improved New Hire Orientation process.
♦ Increase internal training offerings/hours for employees.
♦ Develop recruitment strategies to engage both active and passive job seekers.
♦ Streamline the certificate of insurance process throughout the City
♦ Establish Safety Committee
♦ Establish regular reporting of workforce data
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Number of vacated or new positions posted 140 142 150 150
Number of employment applications received 10,420 13,010 15,482 18,423
Annualized Citywide turnover rate (FT employees) 13% 25% 16% 10%
Number of training hours to new and existing employees 68 131 69 100
65
CITY SECRETARY
OVERVIEW
The City Secretary's Office is the custodian of records for the City. This department administers open records
requests from citizens and assists other departments with research. The office creates the Agenda packets for City
Council meetings, maintains records and minutes of the meetings, coordinates administration of City elections with
Brazoria County, maintains historical records and archives, and provides the public with information in accordance
with the Texas Public Information Act.
STRATEGIC COUNCIL PRIORITY: The City Secretary's office ensures citizens have access to agenda information
and have the opportunity to participate in the local decision -making process, vote in elections, speak at public
hearings, and request and receive official records, in ways that promote an Engaged Community.
Key Budget Items for FY 2019 Include:
• No significant items.
GOALS
• Record and maintain all City Council actions accurately and in a timely manner.
• Administer the department's budget efficiently and monitor the funds allocated and expended.
• Maintain and process accurate claims information log.
• Issue Alcoholic Beverage Permits in an efficient and timely manner to maintain compliance with the City
Ordinance and Texas Alcoholic Beverage Commission regulations.
• Process Peddlers Permits in an efficient and timely manner to allow the community to be served by vendors who
are legally permitted to conduct business in the City door-to-door in compliance with City Ordinance.
• Accept and process applications to serve on Boards and Commissions in a timely manner and verify that
information on the application qualifies the applicant to serve.
• Administer and produce timely Public Information as requested under the Texas Public Information Act.
• Utilize management practices and stay abreast of the latest laws and the newest technology to ensure the
integrity of the records and history of our local government.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Completed the implementation of the automated agenda system.
• Conducted bi-monthly Records Management Meetings with Department's Records Coordinators.
• Entered current Alcohol Permits into TRAKiT software program.
• Conducted City wide iCompass automated agenda training
• Administered Oaths of Office for new City Employees
• Processed Boards and Commission.
FISCAL YEAR 2019 OBJECTIVES
• Implement the automated minute module of iCompass in 2019 for transparency and to facilitate transcribing and
posting of Council meeting minutes.
• Explore the automation system to enhance the Records Management Program as required by the City Code and
the laws of the State of Texas. The City Secretary's Office will be available to provide assistance to City
departments to assure that all city records are retained in accordance with the State of Texas Records Retention
Manual and that records are retained in the same format. The total completion of this goal to have all city
departments on the same digital record retention and management system will take more than a year to
accomplish; however, it is essential that this goal be accomplished to provide proper record retention of City
records.
• Further automation of the TRAKiT software for Alcoholic Beverage Permits to enhance the payment process.
• Explore the automation system process for Open Records to increase transparency, accountability, and
compliance across the organization.
• Conduct City wide training of the iCompass (agenda software), agenda process, and Public Information Act.
• Successfully administer the 2019 Elections
• Administer the department's budget efficiently and monitor the funds allocated and expended.
66
CITY SECRETARY
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
PUBLIC RECORDS
Open Records Requests processed (Freedom of Information Act) 1,252 1,294 1687 1,410
ELECTIONS
Number of registered voters (average) 63,584 68,633 71,459 75,032
Number of votes cast (average) 2,751 7,660 7,315 7,504
Average % of voter turnout 4.3% 11.2% 10.24% 10%
67
LEGAL
OVERVIEW
The City Attorney is appointed by the City Council and serves as legal adviser to the City Council, City Manager, and
City departments, representing the City in legal matters. The department consists of four full-time attorneys, and one
part-time prosecutor, supported by a Legal Secretary. The Associate City Attorney serves as Prosecutor in Municipal
Court. The Legal Department is responsible for drafting the legislation upon which City Council votes in setting the
policies of the City, attending City Council and other City board meetings to advise City officials and representatives
regarding legal matters. Some of these include: selecting and managing outside counsel to represent the City in
specialized litigation and other legal proceedings, prosecuting misdemeanors in the City's Municipal Court, and
advising and assisting the City's departments regarding legal issues associated with contracts, real estate
transactions, personnel, economic development, engineering and public works issues, emergency services, and
finance.
STRATEGIC COUNCIL PRIORITY: Protecting the City's assets through ordinance and contract review, prosecuting
traffic and code violations, and its legal position where lawsuits and claims are concerned to promote a Fiscally
Responsible Government and a Safe Community.
Key Budget Items for FY 2019 Include:
♦ No significant changes.
GOALS
♦ Continue to monitor and develop an oversight protocol with City departments.
♦ Work with City departments to accomplish the early assessment of potential litigation.
♦ Evaluate and update various City Ordinances to bring them into alignment with the City's needs and goals.
♦ Assist the Planning Department with the review of development regulations.
♦ Assist all City departments with the implementation of their respective goals and objectives.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Prepared numerous residential, commercial and institutional development agreements for the City.
♦ Coordinated and assisted outside counsel in the resolution of multiple litigation cases.
♦ Efficiently carried out the prosecutorial duties of a rapidly growing municipal court.
♦ Coordinated the acquisition of multiple properties through the eminent domain process, thereby allowing for the
timely construction of various City projects.
♦ Provided legal representation at all meetings of the City Council, PEDC, P&Z and the ZBA.
♦ Provided effective legal counsel to all departments in the City on a daily basis.
♦ Coordinated legal proceedings allowing for the demolition of 12 unsafe structures in the City.
FISCAL YEAR 2019 OBJECTIVES
♦ Provide legal representation at all meetings of the City Council, Planning and Zoning Commission and the Zoning
Board of Adjustments.
♦ Provide each department legal services in a quality, yet efficient and cost-effective manner; such service to
include specific training for each City department.
♦ Coordinate, with outside counsel, on multiple property acquisitions associated with the various City projects.
♦ Review and revise the City's Code of Ordinances as appropriate.
♦ Provide competent and efficient prosecutorial services for the City's Municipal Court.
♦ Continue development of the City's Unsafe Building Abatement Program.
♦ Coordinate meetings with the 2019 Charter Review Commission and the development of proposed Charter
Amendments.
68
INFORMATION TECHNOLOGY
OVERVIEW
The primary role of the Information Technology Department is to provide communications and information systems
services to the City departments, developing and aligning departmental planning, policies and procedures with the
strategic direction of the City Manager's Office. Major responsibilities of the department include the planning and
maintaining of networks, servers, personal computers and laptops, as well as the City's telephone system. This
department reports to the City Manager. This department oversees the GIS functions which develop and manage
the citywide Geographic Information System.
STRATEGIC COUNCIL PRIORITY: Information Technology provides wired and wireless routes for transmitting data
and telecommunications, thus providing City operations with a Sustainable Infrastructure that promotes the ability for
the City to operate from a "paperless" standpoint, creating a more Fiscally Responsible Government.
Key Budget Items for FY 2019 include:
• Equipment Repair & Maintenance increase driven by software renewals
GOALS
• Provide citywide innovation and leadership in the utilization and deployment of information technology services
and applications.
• Ensure high -quality, effective and efficient production and support services for our employees.
• Maintain a secure information technology environment, ensuring the confidentiality, integrity and availability of
critical information and systems.
• Continue to educate City staff on available options and resources which allow all City services to flourish, while
utilizing the minimal level of resources.
• Promote the use of Geographic Information System (GIS) and related technologies to more effectively and
efficiently address problems, develop plans, and manage the natural, cultural, economic, and infrastructure
resources of the City of Pearland, thus increasing productivity.
• Maintain, update and expand the digital/interactive mapping systems of the City's infrastructure.
• Provide timely, accurate, and meaningful GIS data.
• Convert and integrate available data into a standard format to import into a centralized database.
• Produce informative maps, reports, and digital graphics, and assist with presentation of geographic information.
• Utilize GPS equipment for data acquisition and analysis.
• Maintain responsibility for the ongoing process of creating, maintaining and managing the City's digital land
information database.
• Evaluate long-term coordination needs of the GIS user community and direct a strategic plan to facilitate
coordination.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Assisted with Networking and audio/video solutions for City Hall renovation and Nature Center.
• Installed new air conditioning units in the Public Safety Building server room for better air control.
• Installed/setup contact center for Parks and Community Development main lines for better call control and quality
assurance.
• Consolidated the City, SCADA, and traffic network to enhance service delivery.
• Installed and setup 26 Connect Grid Routers for SCADA communication.
• Installed and setup over 90 virtual desktop systems throughout city departments.
• Worked with Capital Projects on the installation of fiber communications for the Reflection Bay Water Reclamation
Facility Expansion.
• Installed 158 in -vehicle routers in public safety vehicles and meter services for real-time communication.
• Implemented the backend technology for the advanced meter infrastructure project.
• Implemented network equipment upgrades for the traffic division.
• Installed 25 cameras at key intersections for the traffic division.
• Installed and configured time devices throughout city facilities for time and attendance tracking system.
• Implemented a unified service request system for both GIS and IT also implemented the system for Parks and
Communications.
• Implemented phone call analytics and reporting software along with real-time dashboards for call volume metrics.
69
INFORMATION TECHNOLOGY
♦ Replaced failing cameras at the Public Safety facility.
♦ Installed digital signage in key facilities allowing Communications to centrally manage content delivery system.
♦ Migrated to new phone circuits providing full redundancy for all facilities.
♦ Implemented Call Recording capabilities for main lines at Utility Billing, City Hall and Community Development to
provide quality assurance for departments.
♦ Provided technical guidance on drone equipment for Police, Fire, and Communications.
♦ Upgraded GIS hardware and software and migrated to new system separating workloads to provide scalability
for future growth.
♦ Implemented data collection tools to Public Works facilitating real-time information exchange.
♦ Acquired new GPS survey grade equipment for enhanced accuracy and faster delivery.
♦ Migrated to the newest SQL Server platform for SDE database.
♦ Upgraded ArcSDE SQL Server to ArcGIS 10.5 software version.
♦ Upgraded ArcGIS Desktop end users to ArcGIS 10.5 software version.
♦ Improved GIS Home page functionality - online mapping services enhancing the functionality.
FISCAL YEAR 2019 OBJECTIVES
♦ Partner with Pearland Independent School District to provide the Police Department with visibility and access for
additional safety and protection of students and faculty.
♦ Implement additional cameras at traffic intersections and facilitate a partnership with TxDOT and TranStar.
♦ Expand wireless coverage at key facilities and city locations to allow video uploads and connectivity for field
personnel.
♦ Provide technical guidance for Service Center Facility and Fire Station 1 construction.
♦ Implement technology for Emergency Operations ahead of an event.
♦ Plan for Emergency Operations Center upgrades.
♦ Improve EOC communication, data collection, and reporting by leveraging GIS technology.
♦ Review current technology applications to assess life cycle expectancy.
♦ Replace Toughbooks in Police and Fire vehicles that are end -of -life.
♦ Implement Asset Management system and coordinate with Public Works for roll out.
♦ Update ERP Software to version 2019.1 as required by software vendor.
♦ Increase licensing capacity for GIS applications.
♦ Create and customize GIS dashboards for Public Works, Police, and Fire operations.
♦ Enlist data collection assistance from various departments to keep information up-to-date.
♦ Review and enhance security protocols city wide.
♦ Integrate database information into GIS to provide visual representation of the data.
♦ Implement new system backup strategy for improved reliability.
♦ Provide technical guidance on call center capabilities and expectation for emergency operations.
♦ Refine and rework the City's Intranet to streamline information dissemination.
♦ Provide technical expertise for record retention policies to departments.
♦ Provide support and resources for LEAN process improvement.
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Number of PC's supported 680 706 756 770*
Number of support calls 884 906 1200** 1000
Number of new software programs installed 2 2 4 2
Average number of GIS layers maintained 120 135 142 150
Number of maps requested/prepared 240 256 225 200***
* PC additions due to additional personnel and facilities (Fire Station 1)
** Call metrics increased based on consolidating to one main line for IT Emergency Help
*** Reduction target is to facilitate more electronic viewing capabilities
70
FINANCE
OVERVIEW
The Finance Department provides for sound financial management practices and reporting to ensure long-term
financial sustainability of the City. The department manages the City's finances, including investments, accounting,
budgeting, purchasing and payroll. Finance also serves as the administrative point of contact for all federal and State
grant -making agencies that support departmental and City-wide capital and non -capital endeavors supported with
other sources of funds. Audits, compliance with internal and external administrative and fiscal policies, financial
transparency, accounts payable/receivable, as well as the improvement and sustainability of our City's bond rating
are other important aspects of the department's responsibilities.
STRATEGIC COUNCIL PRIORITY: The Finance Department incorporates general principles of accountability and
transparency into a system of decision -making, with a sense of "public trust," acting as a Fiscally Responsible
Government.
MISSION STATEMENT: To serve as fiscal stewards of the City's resources by providing financial services in an
accurate, efficient, ethical, and innovative manner by building a bond of trust in accordance with best recognized
practices and principles of governmental finance.
Key Budget Items for FY 2019 Include:
♦ No significant items.
GOALS
♦ Safeguard the assets of the City of Pearland.
♦ Ensure accurate and prompt payment to all City vendors and employees.
♦ Accurately account for revenues and expenditures on a timely basis.
♦ Provide timely and accurate issuance of financial reports to the City Council, City Manager and all other parties
as necessary or required.
♦ Plan, coordinate and facilitate the preparation of the annual budget, Comprehensive Annual Financial Report and
Five -Year Capital Improvement Program.
♦ Facilitate and monitor purchases in compliance with State statutes and City policy and ensure that the City is
getting the best value for the purchase of goods and services.
♦ Ensure the financial integrity of the City by developing and implementing policies and procedures.
♦ Maintain the debt program of the City, including the issuance of new debt, payment of annual debt service, and
ensure compliance with bond and arbitrage covenants.
♦ Provide investment management for all City funds and bond proceeds in compliance with the City's Investment
Policy.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Began implementation of the ExecuTime system, with advanced scheduling for Public Safety departments and
time keeping systems for other departments with integration into the City's New World financial systems.
♦ Compiled and presented to City Council debt maturity options for the City's water/sewer fund; lowering interest
costs, through changing the rate structure.
♦ Updated the City's Financial Forecast and water/sewer rate model which the City uses to forecast rate changes.
♦ Obtained the State Comptroller's Transparency STAR awards in 4 out of 5 categories.
♦ Awarded the Government Finance Officers Association's annual Distinguished Budget Award for the 31
consecutive year.
♦ Awarded the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial
Reporting for the 41 st consecutive year.
♦ Obtained the Government Treasurer Organization of Texas (GTOT) Investment Policy Certification
♦ Implementation of the Personnel Budgeting Module in the New World Financial System
♦ Increased Investment earnings by implementing sweep accounts at depository.
71
FINANCE
FISCAL YEAR 2019 OBJECTIVES
♦ Begin implementation of a department wide Cross -training and Succession Planning Initiative
♦ Implement a new time keeping system, ExecuTime, with advanced scheduling for Public Safety departments and
time keeping systems for other departments with integration into the City's New World financial systems.
♦ Update Comprehensive Financial Management Policies.
♦ Implement Fixed Assets module in New World Financial Systems.
♦ Implement GASB reporting module.
♦ Implement new organization -wide training plan
♦ Develop and maintain procedural documentation for all internal processes including TIRZ, DAP, and PEDC
♦ Work with Purchasing Work Group to improve our purchasing process
♦ Continue to improve reporting and data analysis
♦ Complete physical inventory of the City's Fixed Assets.
♦ Maintain the State Comptroller's Transparency STARS.
♦ Obtain the Government Finance Officers Association's annual Distinguished Budget Award
♦ Obtain the Government Treasurer's Organization of Texas Investment Policy Certification
♦ Obtain the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial
Reporting.
♦ Implement innovative practices in accordance with local, state and federal laws.
♦ Obtain the Achievement of Excellence in Procurement Award
♦ Implement organizational Cash Handling Policy and procedures
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 2019
Actual Actual Actual Target
Investments in compliance with policy and PFIA 100% 100% 100% 100%
Number of audit comments 0 0 unknown 0
Tax Backed Bond Rating
Moody's Aa2 Aa2 Aa2 Aa2
Fitch AA AA AA AA
Revenue Bond Rating
Moody's Aa3 Aa3 Aa3 Aa3
Fitch
AA- AA- AA- AA-
72
OTHER REQUIREMENTS
OVERVIEW
Historically, this department has been used to account for General Fund -wide expenditures including telephone,
radio repairs, credit card and banking fees, contingency funding, sales tax incentive rebates, and capital lease
payments.
Transfers account for operating transfers to other funds for reimbursement of services and include Property and
Liability insurance allocation and reserve for self -funded Medical Fund.
Key Budget Items for FY 2019 Include:
♦ Radio maintenance agreement with City of Houston - $325,000
♦ KPB franchise fee - $300,000
♦ Credit Card Charges - $200,000
♦ Sales tax incentives (Kelsey Seybold and Costco) - $200,000
♦ Capital leases - Siemens energy lease ($114,486), lease on pumper truck ($87,471), ERP lease ($166,809)
and lease on ladder truck and Parks and Recreation equipment ($174,085).
73
City Manager
Public Safety
Police
Administration
Patrol
Commercial Motor Vehicle
Investigations
Community Services
Training
School Resource Officer
Communications/Records
Jail
Animal Services
Fire
Administration
Operations
Marshal
Emergency Management
Health Code Enforcement
74
EXPENDITURES BY DEPT / DIVISION
PUBLIC SAFETY
EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
POLICE ADMINISTRATION
PATROL OPERATIONS
COMMERCIAL VEHICLE ENFORCEMENT
INVESTIGATIONS
POLICE COMMUNITY SERVICES
POLICE TRAINING
SCHOOL RESOURCE OFFICER
POLICE COMMUNICATIONS/RECORDS
JAIL
ANIMAL SERVICES
POLICE TOTAL
FIRE ADMINISTRATION
FIRE OPERATIONS
FIRE MARSHAL
EMERGENCY MANAGEMENT
HEALTH/CODE ENFORCEMENT
FIRE TOTAL
PUBLIC SAFETY TOTAL
EXPENDITURES BY CATEGORY
$ 1,896,826
16,251,937
284,880
3,321,348
1,071,311
305,944
1,422,500
2,095,897
1,151,684
873,134
28,675,461
$ 1,798,785
14,888,939
254,857
3,636,392
925,337
308,700
1,360,216
2,226,618
1,201,135
903,433
27,504,412
$ 1,982,737
15,313,820
262,189
3,519,229
946,011
307,470
1,426,625
2,238,773
1,152,026
826,344
27,975,224
$ 1,880,489
15,311,045
268,353
3,377,595
1,047,357
317,535
1,449,792
2,313,723
1,209,394
894,501
28,069,784
1,203,877
12,728,633
934,391
108,703
593,496
1,154,913
12,270,764
811,465
214,682
626,135
1,174, 040
12,972,592
850,980
214,990
621,882
1,292,831
14,127,759
906,747
225,314
636,170
15,569,099 15,077,959 15,834,484 17,188,821
$ 44,244,560 $ 42,582,371 $ 43,809,708 $ 45,258,605
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDINGS & GROUNDS
EQUIPMENT REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
PUBLIC SAFETY TOTAL
Fire
Police
1
$ 36,241,616 $ 36,736,671
1,388,072 1,307,680
17,207 15,340
1,105,280 1,123,976
1,734,253 1,836,443
174,088 38,255
3,584,045 1,524,006
$ 44,244,560 $ 42,582,371
$ 37,797,647 $ 40,241,874
1,248,715 1,217,402
30,575 28,300
1,327,889 235,217
1,837,732 1,868,926
52,775 37,265
1,514,375 166,152
1,463,469
$ 43,809,708 $ 45,258,605
Public Safety Expenditures as Percentage of Operating Budget
FY 2019 - 57.2% of the $79.0 million Operating Budget
35.5%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
75
POLICE
OVERVIEW
The Pearland Police Department is responsible for enforcement of all local, state and federal laws within its
jurisdiction. The goal of the department is to prevent crime and disorder and improve citizens' quality of life by
providing a safe and peaceful environment within the City of Pearland for all its residents. The department provides
24-hour protection to the citizens of Pearland.
The Police Department is active in the community and is involved in various community programs aimed at reducing
crime. These programs include National Night Out, the Citizens' Police Academy, homeowner's association
meetings, neighborhood watch programs, security surveys, home safety inspections, Youth Leadership Academy, as
well as other programs. The department operates out of the Public Safety Building on Cullen Boulevard.
The Animal Services Department is also within the purview of the City's Police Department, as it was
moved from Community Services effective fiscal year 2014-2015. While protecting the public from problems with
animals, Animal Services also protects animals. In addition to the responsibility for impoundment of stray animals
within Pearland city limits, the Humane Officers trap wildlife, provide for adoption of animals, respond to citizen calls
of concern or emergencies, provide speakers for educational events for school and local groups, investigate animal
cruelty cases, investigate animal bite cases, provide maintenance and care of the shelter facility, as well as care of
all impounded animals.
STRATEGIC COUNCIL PRIORITY: The Police Department, and its various divisions, places heavy emphasis on
making Pearland a Safe Community. Community policing strategies, such as the Citizens' Police Academy, pet foster
and adoption programs, and ensuring citizens receive timely and relevant information also promote the City's efforts
to cultivate an Engaged Community.
Key Budget Items for FY 2019 include:
♦ Addition of two police officers and 1 vehicle in January
♦ Addition of two police officers and 1 vehicle in July
GOALS
♦ Fairly and uniformly enforce statutory law, policy and procedures of the City and the department.
♦ Preserve civil order, investigate crime, and apprehend violators of the law.
♦ Gather, analyze, and disseminate information on criminal activity and the persons responsible for criminal activity.
♦ Build a strong working relationship with the community by serving as mentors and liaisons between the
community and police.
♦ Provide advocacy and other services for victims of violent crime.
♦ Provide and maintain care and custody of prisoners.
♦ Provide enforcement of commercial vehicle traffic laws for a safer community.
♦ Serve as a resource for parents and school officials on matters relating to the law/legal process and procedures
relating to juveniles and school safety.
♦ Provide a safe traffic environment.
♦ Provide enforcement of traffic laws for a safer community, reducing the number of motor vehicle and pedestrian
accidents.
♦ Reduce the number of outstanding warrants.
♦ Provide targeted enforcement in neighborhoods to reduce traffic violations and improve safety for residents.
♦ Identify and target organized criminal activity groups committing offenses and following a specific pattern that
impacts the City and department.
♦ Provide training to police personnel that meets or exceeds TCOLE training standards and requirements, and that
will improve job performance and proficiency.
♦ Enforce and prosecute animal cruelty laws when necessary.
♦ Enhance the local adoption program and provide education to the citizens of Pearland on the benefits of spaying
and neutering.
♦ Utilize DDACTS as an effective police strategy to reduce crime and traffic crashes in "hot spot" areas.
76
POLICE
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Obtained an RFID (Radio Frequency Identification Device) system to track and monitor cell and security checks
in the jail for increased accountability and prisoner safety.
♦ Along with other departmental partners, implemented and staffed personnel to utilize the City's sUAV (small
Unmanned Aerial Vehicles) in a legal manner for deployment on a range of needs.
♦ Completed the Dispatch Center modernization project started in FY17.
♦ Enhanced Jail security through the use of identifying clothing of inmates.
♦ Worked with other departments to utilize the LESO program in the acquisition of High Water vehicles to improve
responses to future flooding.
♦ Increased cooperative training involving civilian and sworn personnel.
♦ Increased dispatching capabilities by adding two additional TCO positions.
♦ Added an additional officer to the DDACTS unit for deployment in a second DDACTS zone.
♦ Obtained and installed a reliable stand-alone Audio/Video recording system for interview rooms in the Criminal
Investigations Division.
♦ Negotiated a new, more equitable contract with PISD for SRO services.
♦ Expanded National Night Out participation to 50+ block parties.
♦ Successfully graduated two Citizen Police Academies, one Teen Citizen Police Academy, and one Youth
Leadership Class.
♦ Implemented the Safe Return Program.
♦ Expanded the Explorer Post and sent a team to the national finals which was awarded a top recognition.
♦ Acquired level 3 rifle resistant body armor for all sworn personnel and fire marshals through a State grant.
FISCAL YEAR 2019 OBJECTIVES
♦ Increase jail security through the use more accurate metal detectors.
♦ Complete the remodel of dispatch by completing the installation of new carpet.
♦ Continue to bridge the gap between civilian and sworn personnel by implementing additional training involving
both sets of employees.
♦ Train all departmental personnel in the concept and use of "de-escalation".
♦ Explore the feasibility of adding additional high water vehicle capabilities in accordance with the CoP Emergency
Management Plan.
♦ Create an interface between the Jail and Dispatch that will immediately notify Dispatch personnel when a jail
duress alarm is activated so police personnel can be dispatched to assist.
♦ Deploy hard entry devices to all campuses with assigned SROs.
♦ Create a new position for a Custodian of Records to handle all Public Information Act requests and subpoenas
to alleviate this responsibility from two civilian supervisors currently tasked with these duties.
♦ Increase attendance by outside personnel for TCOLE courses taught at the PD.
♦ Instruct all operators of emergency vehicles on the safe operation of those vehicles.
♦ Obtain E-ticket writers/mobile tablets with report management system connectivity for the Motorcycle unit to more
accurately track violators through integration with the report management system and increase efficiency during
traffic stops.
♦ Obtain training for patrol/line officers in high-water rescues to decrease the response time during flood
emergencies.
♦ Create and staff a position for a full-time computer forensics investigator tasked with electronic evidence analysis
and gathering from cell phones, computers, tablets, etc.
♦ Obtain training for multiple detectives in basic cell phone forensics to facilitate the gathering of evidence in time -
critical cases.
♦ Staff and deploy a pro -active unit for targeted investigations within the Criminal Investigations Division.
♦ Fill the vacancy created in the property room following the reassignment of the existing clerk to Crime Scene
Investigation duties.
♦ Conduct training in order to add personnel as certified pilots for the existing sUAS program as a means of
decreasing response times for deployment of the asset.
♦ Obtain Internal Affairs Investigator certification training for assigned Professional Standards Investigator and
Sergeant.
77
POLICE
♦ Add a second training officer tasked with conducting pro -active staff training through informational bulletins and
roll call training.
♦ Obtain "Crime Prevention through Environmental Design" training for assigned Community Outreach officers to
increase the division's capability to conduct proactive security/safety programs.
♦ Conduct a fall and spring Rape Aggression Defense (RAD) Course and continually offer training biannually.
♦ Increase social media outreach through greater use of Twitter and Instagram to provide citizens real-time updates
of `breaking' events including, traffic crashes, critical incidents, road obstructions, etc.
♦ Continue to explore the possibility of acquiring a Mobile Command Post to enable on scene command and control
of significant incidents and planned events.
♦ Host and provide ALERTT level 1 or 2 training to area agencies to ensure a more coordinated response in the
event of an active shooter.
♦ Increase volunteer participation in the handicap patrol by providing at least one Citizen on Patrol class.
2,300
2,200
2,100
2,000
1,900
1,800
Average Response Time per Car from Receipt of
CaII to Arrival on Scene
4 min 11 sec
3 min 39 sec
4 min 02 sec
4 min
FY 2016 FY 2017 FY 2018 FY 2019 Target
Total Number of Part 1 Offenses
2,194 2,173
1,937
1,910
FY 2016 FY 2017 FY 2018 FY 2019
Target
2,600
2,550
2,500
2,450
2,400
2,350
2,300
Total Cases Assigned CID
2,503
2,476
2,454 2,450
FY 2016 FY 2017 FY 2018 FY 2019
Target
78
92%
2017
2015
2013
2011
2009
2,200
2,150
2,100
2,050
2,000
1,950
1,900
POLICE
Number of Animals Received at the Animal
Shelter
2,174
2,178
FY 2016
Citizen Survey Results
Good to Excellent
Safety in Neighborhood
1,988
FY 2017 FY 2018
94% 96% 98% 100%
95%
95%
99%
98%
100%
Violent and non-violent person crimes reported
Property and society crimes reported
Training hours completed, Pearland Officers
Number of 911 calls received by dispatch
Average time - citizen call to unit dispatched (in
seconds), Priority 1 Calls
Average number of 911 calls per
Telecommunication Operator / month
Number of offense / crash reports taken
Total arrests made by police
Dispatched calls per Patrol Officer / month
Average response time per car, Priority 1 Calls
Number of animals received at animal shelter
Percent of animals adopted
0%
2017
2015
2013
2011
2009
2,060
FY 2019
Target
Citizen Survey Results
Good to Excellent
Traffic Enforcement
20% 40% 60% 80% 100%
FY 2016 FY 2017
Actual Actual
806
4,184
18,970
33,819
47sec
845
4,308
11,498
33,919
47sec
69%
65°,0
72%
76%
73%
FY 2018 FY 2019
Actual Target
1066
4,482
11,442
36,787
45sec
840
4,310
11,500
37,250
45sec
201 201 218 200
11,037
5,038
64
4min
11sec
2,174
61%
11,416
4,857
63
3min
39sec
2,178
83%
12,609
4,808
61
4min
02sec
1,988 2,060
71% 80%
11,700
5,080
60
4min
79
FIRE
OVERVIEW
The Fire Administration Division provides logistical, administrative and financial support services to the entire Fire
Department.
The Operations Division provides fire suppression, rescue, and emergency medical services to the City and
surrounding areas, serving an area comprised of the Pearland City Limits and its Extra -Territorial Jurisdiction (ETJ).
Pearland's ISO Public Protection Classification is a rating of 2/8B, among the top 3% of communities in the nation.
The Community Risk Reduction Division is composed of Code Enforcement, Fire Marshal's Office, Emergency
Management and Community Outreach. The Fire Marshal's Office provides fire inspections, public safety education,
and fire investigations. Code Enforcement proactively enforces areas concerning dangerous buildings, substandard
structures, excessively high grass and weeds, accumulation of trash and debris, illegal dumping, junked items, and
other general nuisance related violations. It also provides health inspections of food establishments, including
restaurants, schools, and group homes for compliance to City ordinances. Emergency Management prepares and
manages comprehensive plans for community disaster response and preparation. Community Outreach provides
public safety education.
STRATEGIC COUNCIL PRIORITY: The Fire Department places heavy emphasis on making Pearland a Safe
Community. The department conducts educational activities such as fire prevention and protection that create an
Engaged Community. The department code enforcement officers conduct inspections of buildings, food and other
business establishments, as well as environmental clean-up of structures and grounds to support a Healthy Economy
for the City.
Key Budget Items for FY 2019 include:
♦ Continuous onboarding of Firefighters (6 months) - $241,569
GOALS
♦ Decrease the number of fires through comprehensive fire inspection and public education programs.
♦ Determine the origin and cause of fires through comprehensive investigations.
♦ Deter arson by utilizing aggressive investigation techniques.
♦ Decrease hazards, environmental crimes, and unsafe structures by investigations and awareness.
♦ Inspect all high risk occupancies annually, and moderate risk occupancies biennially.
♦ Increase the level of disaster preparedness among citizens through aggressive public awareness.
♦ Inspect all health code permitted businesses semi-annually.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Continued implementation of Fire Department Strategic Plan.
♦ Began implementation of Lexipol policy management system.
♦ Began construction of new Fire Station #1 to replace the existing Fire Station #1.
♦ Began onboarding of personnel for new Fire Stations.
♦ Established citywide Emergency Management Working Group
FISCAL YEAR 2019 OBJECTIVES
♦ Begin construction of new Fire Station #8.
♦ Begin design of Fire Station #7.
♦ Complete construction and begin operations at new Fire Station #1.
♦ Order vehicles for Fire Station #8.
♦ Review, revise and continue implementation of Fire Department Strategic Plan.
♦ Continue onboarding of personnel for new Fire Stations.
♦ Continue implementation of Lexipol policy management system.
80
FIRE
100%
80%
60%
40%
20%
0%
n
Fire Department Average Response Time
FY 2015 Actual FY 2016 Actual FY 2017 Actual *FY 2018 Target
5 Minutes or Less ❑ 9 Minutes or Less
*As recommended by the Citygate study, the Fire department will be implementing new performance measures moving forward.
100%
95%
90%
85%
Citizen Survey Ratings
Good to Excellent
Ratings of Fire Services
95%
92% /\ 93%
91%
95%
2009 2011 2013 2015 2017
95%
93%
91%
89%
87%
85%
Citizen Survey Ratings
Good to Excellent
Ratings of Ambulance/EMS Services
94%
2009 2011 2013 2015 2017
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Average Response Time:
Percent 5 minutes or less 37% 40% N/A N/A
Percent 9 minutes or less 79% 83% N/A N/A
Alarm processing time <= 90 seconds N/A N/A 73% 90%
Alarm processing time <= 120 seconds N/A N/A 84% 99%
Turnout Time <= 2 minutes N/A N/A 89% 90%
Call to first unit arrival <= 7:30 N/A N/A 51% 90%
Call to arrival of ERF <= 11:30 N/A N/A 29% 90%
Total Estimated Fire Loss $4,421,186 $2,521,840 $2,950,592 $2,000,000
Number of Code Enforcement Cases Opened 2,560 2,745 2,962 3,500
Number of Annual Inspections 1,244 2,211 1,720 2,500
Emergency Medical Transports 4,616 4,201 4,614 4,500
Public Safety Education Hours 306 420 610 650
81
Community Services
Mayor & City Council
Municipal Court Judge
City Manager
Community Development
Administration
Permits & Inspections
Planning
Deputy City Manager
Communications
Library
Municipal Court
EXPENDITURES BY DEPT / DIVISION
COMMUNITY SERVICES
EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
COMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT ADMINISTRATION $ 420,764 $ 379,210 $ 440,227 $ 524,359
PERMITS & INSPECTIONS 1,338,928 1,472,939 1,305,330 1,357,631
PLANNING 612,084 677,912 740,405 613,400
COMMUNICATIONS 533,439 525,405 527,638 568,378
MUNICIPAL COURT 758,631 819,663 844,738 840,995
LIBRARY 421,845 406,632 403,401 402,924
COMMUNITY SERVICES TOTAL $ 4,085,692 $ 4,281,761 $ 4,261,739 $ 4,307,687
EXPENDITURES BY CATEGORY
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
EQUIPMENT REPAIR & MAINTENANCE
BUILDINGS & GROUNDS
MISCELLANEOUS SERVICES
OTHER CHARGES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
COMMUNITY SERVICES TOTAL
$ 3,069,676 $ 3,317,337 $ 3,260,891 $ 3,400,556
110,452 147,210 126,616 130,866
15,041 15,708 16,385
881,829
3,660
5,034
769,606
3,000
1,800
27,100
802,379
3,000
26,716
25,752
2,460
746,041
3,000
24,764
$ 4,085,692 $ 4,281,761 $ 4,261,739 $ 4,307,687
Community Services Expenditures as Percentage of Operating Budget
FY 2019 - 4.9% of the $79.0 million Operating Budget
Community Development
Administration
Communications
Planning
Municipal Court
Permits & Inspections
0.6%
0.0%
0.7%
0.8%
1.7%
0.5% 1.0%
1.5% 2.0%
83
COMMUNITY DEVELOPMENT
OVERVIEW
The Community Development Department is a part of the Community Services area and consists of Community
Development Administration, Planning, and Permit & Inspection Services. Community Development Administration
oversees, assists and guides the divisions within the department. The Community Development Department also
provides support to developers and citizens proposing development in Pearland.
The Planning Division is responsible for all long range and short term plans for the growth of the City, in order to create
and maintain a desirable land use pattern for an enhanced quality of life for our citizens. This Division administers the
City's Unified Development Code and the Comprehensive Plan. The Division processes all land use related requests
including zone changes, variance / special exception requests, and subdivision plats. This division also reviews all
development related permits to ensure conformance with the Unified Development Code.
The Permit & Inspection Services Division is responsible for ensuring that any privately owned structure that is new,
remodeled, added on to or renovated is in substantial compliance with currently adopted codes and ordinances. Through
this process the division protects citizens, health, safety and financial investment thus creating a more sustainable and
resilient community. The Permit and Inspections division consist of the Permit Counter, Plan Review and Inspections
groups. The division serves as the main point of contact for private development within the city. The division takes in
permit applications, coordinate's the city's plan review process, reviews plans for compliance with building, mechanical,
electrical and plumbing codes, issues permits, conducts inspections of building, mechanical, electrical and plumbing
work and coordinates the approval of and issuance of certificates of occupancy. The division also serves as the
administrator to other city departments for the TRAKiT software.
STRATEGIC COUNCIL PRIORITY: Building safety, managed growth, and planned development are principles that
provide the Pearland community with Sustainable Infrastructure, a Healthy Economy and a Safe Community.
Key Budget Items for FY 2019 Include:
♦ No Significant Changes
GOALS
♦ Implement the departmental mission: Quality Service - Excellent Results.
♦ Ensure City of Pearland is a desirable place for people to live, work, recreate, and promote balanced and sustainable
growth.
♦ Ensure safe and pedestrian friendly neighborhoods.
♦ Provide an environment where businesses can thrive and flourish.
♦ Apply sound and current planning principles while planning for the City.
♦ Ensure quality and safe building practices with the use of our adopted ICC codes and our City ordinances for our
residents, businesses, and visitors to our City.
♦ Increase outreach to potential development partners, especially small businesses.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Planning Department reorganized into two sections: long-range and current.
♦ Assisted in the preparation of the annexation of multiple areas.
♦ Continued implementation of planning applications through TRAKiT software.
♦ Continued to implement Action Steps listed in the 2015 Comprehensive Plan.
♦ Conducted annual Pearland Development Forum.
♦ Continued professional training for staff, Planning and Zoning Commission, Zoning Board of Adjustment, and the
development review committee.
♦ Continued to provide population updates and special studies.
♦ Continued to publish annual and quarterly Community Development newsletter.
♦ Revised pre -development information to include all new adopted codes and ordinances.
♦ Implemented Planning and Zoning meeting agendas and minutes through iCompass software.
♦ Implemented citizen permit access through TRAKiT E-portal and online credit card payment processing.
♦ Updated the department webpage by making more information available, including creating the new Development
Services page.
♦ Reformatted Quarterly Reports into PowerPoint presentations for increased legibility.
84
COMMUNITY DEVELOPMENT
FISCAL YEAR 2019 OBJECTIVES
• Ongoing improvements to the Enterprise Resource Planning (ERP) — TRAKiT software.
• Continue implementation of Action Steps listed in the 2015 Comprehensive Plan.
• Implement long-range planning at neighborhood level.
• Permits and Inspections to complete scanning and archiving of all records for paper document reduction.
• Continue to support staff development and training to better serve both internal and external customers.
• Develop greater web presence for development and business support services.
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
Citizen Survey Ratings
Good to Excellent
86%
82% 82%
62%
59%
59%
74%
47%
79%
50%
2009 2011 2013 2015 2017
Overall Appearance of the City
Land Use, Planning and Zoning
40,000
35,000
30,000
25,000
20,000
15,000
Total Number of
Building Inspections
37,528
33,441
MEM
32,833 33,000
2016 2017 2018 2019
Target
FY 2016 FY 2017 FY 2018 2019
Actual Actual Actual Target
Zone Changes 18 14 15 14
Plat Reviews 124 183 188 185
Site Plans Reviewed 136 129 50 65
Total Plans Reviewed 1,349 1,164 1,071 1,100
Pre -development Meetings Conducted 116 83 65 70
Total Building Inspections 37,528 33,441 32,833 33,000
Total Permits Issued 14,612 12,475 10,042 11,500
Average Value Single Family Home Permitted $293,425 $208,5245 $201,606 $215,000
85
COMMUNICATIONS
OVERVIEW
Pearland's Communications Department serves as the City's Public Information Office, keeping residents and
employees informed of events and activities occurring throughout Pearland. The department disseminates
information about the City of Pearland, its services, projects, events and programs and produces and distributes the
City's biannual printed newsletter — Pearland In -Motion, and the City's monthly electronic newsletter — Pearland
Connect. Communications also maintains the City's website and government cable station — Pearland TV, which is
broadcast on Comcast Channel 16, U-verse Channel 99, and online at pearlandtx.gov. The department is also
responsible for producing the City's Calendar & Annual Report and managing the City's electronic communications
system, which allows residents the opportunity to sign up to receive City news and information.
STRATEGIC COUNCIL PRIORITY: The Communications Department ensures citizens are kept informed and up-
to-date on information, projects and events occurring throughout the City which leads to an Engaged Community.
Key Budget Items for FY 2019 Include:
♦ No significant items.
GOALS
♦ Establish the City of Pearland Communications Department as a primary information source for City of Pearland
news and information.
♦ Increase awareness, interest and participation of Pearland residents in City government goals and activities.
♦ Build community and positive identification among residents with their home City.
♦ Build corporate pride among employees and positive identification with the City government as a whole.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Implemented project management system to improve transparency and accountability.
♦ Developed Pearnet steering committee to continually improve intranet functionality.
♦ Implemented analytics on Pearnet and GIS to gain new insights.
♦ Migrated First Monday distribution to ConstantContact to improve effectiveness — Improved open rate 6% in 1
month with testing.
♦ Overhauled Utility Billing website content and online application to improve customer experience.
♦ Began rolling out digital content to connected TVs in City facilities to further diversify messaging platforms.
•
FISCAL YEAR 2019 OBJECTIVES
♦ Develop and implement a plan to increase social media followers/fans.
♦ Follow the guiding principles outlined in the Department Strategic Plan which include: serving as brand
ambassadors, being inclusive, proactive, transparent, consistent and responsive.
♦ Develop video series leveraging the Pearland TV studio.
♦ Develop a comprehensive content calendar to improve efficiency.
♦ Update Pearnet.
♦ IPTV on all City owned TVs.
♦ Execute AMI communications plan.
♦ Develop a comprehensive strategic plan to improve e-communications offerings.
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Facebook fans/friends 11,876 17,135 19,980 22,977
Twitter followers 3,278 5,475 6,470 7,441
YouTube subscribers 341 385 423 486
lnstagram fans/followers 1,257 1,620 1,928 2,217
Percent of news releases published 93% 93% 93% 93%
86
MUNICIPAL COURT
OVERVIEW
The Municipal Court has original jurisdiction over Class C misdemeanors and City Code violations which occur within
the corporate City limits of Pearland and are punishable by fine only. It is the function of the Municipal Court to provide
accessible, efficient and well -reasoned resolution of all the court's cases. The staff maintains a modern computerized
record and money management system for approximately 25,000 charges processed by the Court each year. The
Court office maintains standing judicial orders that may allow disposal of a case without appearing at an official
arraignment. Additionally, the court is responsible for collecting fines, as well as numerous other court costs, that must
be accounted for and sent to the Texas Comptroller's Office on a quarterly basis.
STRATEGIC COUNCIL GOAL: Adjudication of misdemeanor crimes and local code violations provides Pearland
residents and visitors with a Safe Community.
Key Budget Items for FY 2019 include:
♦ No significant items.
GOALS
♦ Uphold the Constitution, laws and legal regulations of the United States, the State of Texas and all governments
therein.
♦ Set high standards to maintain and preserve the integrity of all cases filed in the Pearland Municipal Court of
Record.
♦ Abide by the standards set out in the Texas Code of Judicial Conduct.
♦ Protect the confidentiality of all records filed.
♦ Remain cognizant of the needs of customers and citizens of the Pearland Municipal Court to reinforce the positive
perception of the judiciary.
♦ Provide access and encourage education of staff to increase the level of expertise and proficiency in the affairs of
the Municipal Court.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Set up the integration process from OSSI to the Incode Court System for downloading of citations.
♦ Attended training as a department to increase productivity, improve communication, and build teamwork skills.
♦ Continued the prosecution and adjudication of court cases in accordance with the Constitution, laws and legal
regulations of the United States, the State of Texas, and all applicable governments therein.
FISCAL YEAR 2019 OBJECTIVES
♦ Increase the utilization of ticket writers to streamline the court process and expedite the entering of citations into
the Incode Software.
♦ Continue the prosecution and adjudication of court cases in accordance with the Constitution, laws and legal
regulations of the United States, the State of Texas, and all applicable governments therein.
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Number of Judge trials prepared 143 185 183 170
Number of Jury trials prepared 300 436 374 370
Number of warrants issued 6,390 5,980 6,056 6,142
Total number of charges brought in 17,611 16,257 15,333 15,000
Percent Guilty Charge 57% 56% 51% 48%
Percent Charges Dismissed 17% 21% 18% 19%
Outstanding warrants 16,236 15,459 13,982 13,500
Value of outstanding warrants $8,275,346 $8,052,214 $7,651,834 $7,350,000
87
LIBRARY
OVERVIEW
Library services are provided through a cooperative effort between the City of Pearland and Brazoria County that
support two facilities — the Tom Reid Library on the east side of the City, and the Business Center Drive Library on
the west. The City provides the buildings and takes responsibility for their maintenance and other operating expenses.
Brazoria County supplies the libraries' materials, computers, network access, and employees. As part of the voter -
approved bond referendum in 2007, funding was approved to expand the Tom Reid Library building. Construction
began in April 2017 and is expected to be completed in spring 2018.
Pearland's libraries serve the educational, informational, and recreational needs of the Pearland community, and
offer a wide variety of materials and services in response to community needs. The libraries offer book clubs and
programs for children, teens and adults, provide a space for voting, and provide assistance on accessing the Brazoria
County Library System's electronic resources.
STRATEGIC COUNCIL PRIORITY: Brazoria County and the City of Pearland collaboratively provide Library Services
for the citizens of the community. The County is responsible for Library Services, and the City is responsible for
providing the facilities. Pearland's efforts provide the citizens with access to multiple activities and programs,
encouraging an Engaged Community.
Key Budget Items for FY 2019 Include:
♦ No significant items.
GOALS
♦ Provide the Pearland community with traditional and progressive library services that support citizens' access to
educational, informative, leisurely resources in a variety of formats, including digital. In addition, the libraries
provide small meeting spaces, public Internet access, programming, and assistive services for all ages.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Tom Reid Library reopened in March after renovations were completed.
♦ Summer Reading Club participation at the Tom Reid and Westside Library increased over the previous year and
were the highest in the county.
♦ Westside added several new programs and both branches began offering 3D printing services to library patrons.
FISCAL YEAR 2019 OBJECTIVES
♦ Introduce a fiber arts themed Makerspace at the Tom Reid Library.
♦ Increase adult oriented programming at both branches.
♦ Began the design phase for the new Westside Library.
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Tom Reid Library
Number of volumes 87,795 58,736 77,371 80,000
Number of items checked out - circulation 438,589 357,600 225,633 450,000
Business Center Drive Library
Number of volumes 59,493 60,688 56,724 60,000
Number of items checked out - circulation 415,091 502,052 516,263 550,000
88
Public Works and
Engineering & Capital Projects
Assistant City Manager
Engineering & Capital Projects
Engineering
Capital Projects
Traffic
Public Works
Administration
Streets & Drainage
Grounds Maintenance
Facilities Management
Custodial Services
Fleet Management (Internal Service Fund)
EXPENDITURES BY DEPT / DIVISION
PUBLIC WORKS
EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
ENGINEERING & CAPITAL PROJECTS ADMINISTRATION $
ENGINEERING
CAPITAL PROJECTS
PUBLIC WORKS OPERATIONS ADMINISTRATION
TRAFFIC OPERATIONS AND MAINTENANCE
CUSTODIAL SERVICES
FLEET MANAGEMENT
STREETS & DRAINAGE
ROW MOWING
FACILITIES MANAGEMENT
PUBLIC WORKS TOTAL
EXPENDITURES BY CATEGORY
1,285,559
1,007,147
184,077
1,134,865
440,357
467,075
4,990,354
1,455,178
1,917,190
$ 12,881,801
1,529,988
1,207,160
182,287
1,118,369
480,627
428,343
5,149,446
1,670,686
1,690,191
$ 13,457,097
$ $
1,604,360
1,162,849
618,504
1,073,192
476,585
391,941
5,900,063
1,673,911
2,033,448
$ 14,934,853
1,580,840
1,340,365
317,576
950,161
530,760
4,299,832
1,972,997
1,658,857
$ 12,651,388
FY 2017
ACTUAL
FY 2018
ORIGINAL
BUDGET
FY 2018
YEAR END
AMENDED
FY 2019
ADOPTED
BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDINGS & GROUNDS
EQUIPMENT REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
PUBLIC WORKS TOTAL
$ 4,405,367 $ 5,051,669 $ 4,834,900 $ 5,336,367
341,580 347,395 323,757 311,530
2,407,759 2,358,911 3,370,224 1,719,714
403,060 202,216 323,703 53,200
4,588,137 4,840,146 5,453,805 4,665,641
2,960 1,199
732,938 656,760 627,265 259,486
305,450
$ 12,881,801 $ 13,457,097 $ 14,934,853 $ 12,651,388
Public Works Expenditures as Percentage of Operating Budget
FY 2019 - 16.0% of the $79.0 million Operating Budget
Fleet Management 0.0%
PW Operations Admin. IL 0.4%
Custodial Services MIN 0.7
Traffic Oper. & Maint.
Capital Projects
Engineering
Facilities Management
ROW Mowing
Streets & Drainage
0
0.0% 1.0%
1.2%
1.7
0/0
2.0%
2.1%
2.5%
2.0% 3.0%
4.0%
5.0% 6.0%
90
PUBLIC WORKS
OVERVIEW
The Public Works Department and the Engineering & Capital Projects Department report to the Assistant City
Manager and are responsible for maintaining the City's infrastructure and transportation mobility. The Public Works
Administration Division oversees Facilities Maintenance, Custodial Services, Fleet Maintenance, Traffic Operations
& Maintenance, Streets & Drainage, and Grounds Maintenance within the General Fund. In addition, the Public Works
Administration Division manages the Water/Wastewater and Distribution/Collections operations of the City within the
Enterprise Fund.
Within the General Fund, the Public Works Department provides the maintenance of City owned buildings including
the building envelope, electrical, mechanical and plumbing systems and custodial services, manages maintenance
of all City vehicles, heavy equipment and rolling stock, including preventive maintenance and minor repairs; maintains
and manages the City's streets, signs and pavement markings, landscaped right of ways, sidewalks, ditches and
drainage channels, including but not limited to, street paving, street sweeping, pothole patching, culvert setting,
cleaning storm drains, inlets and lines throughout the City.
The Engineering and Capital Projects Department develops, implements, and manages City infrastructure capital
projects including facilities, parks, streets, drainage, water and wastewater projects. In addition, this department
oversees the preparation of the City's Master Drainage Plan, Transportation Master Plan, Water and Wastewater
Master Plans, Impact Fee updates and Traffic Impact analysis including traffic signal operations and maintenance.
STRATEGIC COUNCIL PRIORITIES: The Public Works, Engineering, Capital Projects, and other functions within
this domain of the City's government structure are designed to support the installation, maintenance and improvement
of roads, streets, drainage, water production and treatment, and other public goods in ways that deliver citizens
Sustainable Infrastructure and provides for a Safe Community.
Key Budget Items for FY 2019 include:
♦ Reduction in Street Pavement - $645,486
♦ Reduction in Sidewalks - $369,274
♦ Street Sweeping - $80,000
♦ Traffic Engineer - $125,000
GOALS
♦ Continuously explore process improvement techniques to ensure efficient and effective processes for each
service rendered by the department.
♦ Provide reliable, safe, and functional road and sidewalk systems through systematic assessment, and inspection,
implementing pavement management strategies for maintenance of pavement conditions.
♦ Develop ROW Management Policy to govern future roadway development, streetscape design, and maintenance
standards.
♦ Restore public landscapes after major impacts sustained from Hurricane Harvey.
♦ Successfully initiate policies and procedures to operate within the newly created Motor Pool Fund.
♦ Complete a Facilities Condition Assessment, report immediate concerns and budget needs through the Capital
Improvement and operational budget process.
♦ Select qualified firms and begin implementation of Asset Management system and software.
♦ Maintain and implement the City's traffic signal network through systematic inspection and maintenance, and
installing fiber for improved communication and reliability.
♦ Continue installing Flashing Yellow arrows at approved intersections.
♦ Maintain a safe driving system for the motoring public by zone replacement of Traffic signs and Pavement
markings.
♦ Maintain and enhance the appearance of City ROW through street sweeping, turf, and landscape maintenance
management practices.
♦ Reduce flooding and minimize the chance of property damage, injury or loss of life through a program of drainage
systems maintenance and construction.
♦ Maintain a highly trained Project Management staff proficient with the tools necessary to manage complex capital
projects in a professional manner.
91
PUBLIC WORKS
• Manage project scope, schedule, budget, and provide innovative solutions to deliver best value projects within
budget and on schedule.
• Provide effective Right -of -Way coordination to resolve public and private utility conflicts in advance of project
construction.
• Develop and maintain the City's Five -Year CIP in conjunction with the Finance Department.
• Develop and maintain the City's Design Criteria Manual, Specifications, Standard Details, and Infrastructure
Master Plans.
• Develop a strategic department growth plan that efficiently provides support to our Capital Improvement Program,
the Public Works Department, Parks & Recreation Department, and other City departments.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Completed Emergency Operations plans for each division within Public Works.
• Completed six and a half (6.5) miles of asphalt pavement overlay of roadways identified through ROW
assessment.
• Installed/replaced 18,570 linear feet of sidewalk via sidewalk contract.
• Repaired 1,875 potholes in asphalt streets.
• Designed and awarded contract for asphalt paving rehabilitation Hatfield Rd from FM 518 to North City Limits.
• Installed/replaced 84 linear feet of culvert pipe to improve local drainage.
• Regraded 34,604 linear feet of ditches via City crews and contractor to maintain and improve drainage.
• Cleaned 13,873 linear feet of culvert pipe to remove silt and debris to maintain drainage.
• Developed and adopted a Deep Ditch Mowing Policy and implemented contact management thereof, to provide
maintenance of deeps ditches throughout the community.
• Developed standard operating procedures for services provided within the ROW Division.
• Revised and adopted the Memorandum of Understanding with Brazoria Drainage District No. 4 which governs
the maintenance of drainage facilities and rights of ways throughout the community.
• Assisted in the completion of several gateway monument projects and numerous other median and facility
landscape enhancements.
• Transitioned right-of-way permitting management and approval to TRAKiT software.
• Managed $155,000 in landscape renovations, enhancements, and repairs of public landscapes. Items included
but not limited to landscape enhancements to Broadway, City Hall, Library, and Dixie Farm.
• Documented over $300,000 in landscape damages sustained by Hurricane Harvey to gain FEMA reimbursement.
• Combined four landscape maintenance contracts into one major maintenance contract.
• Decreased Fleet related outsourcing resulting in a cost savings of $196,244.92.
• Installed new 28,000lb heavy duty lift to begin work on heavy equipment and heavy trucks.
• Verified equipment inventory by class/department and updated FASTER program to reflect changes.
• Completed a facility damage assessment for 19 buildings affected during Hurricane Harvey, and submitted for
approximately $544,220 of reimbursement through FEMA for repairs to the affected facilities.
• Began the development of a facility condition rating system that identifies the condition of major infrastructure at
City facilities and identifies the remaining useful life of each.
• Implemented a maintenance zoning plan in the Facilities Management division to streamline the work flow
process. The zoning plan is designed to improve the response and communication to building and client needs.
• Completed a comprehensive City generator audit.
• Continued work on City wide Intelligent Traffic System traffic signal project upgrades.
• Implemented new signal timing plans and flashing left turn arrows along key corridors.
• Replaced street name, regulatory and warning signs in six subdivisions for improved visibility and safety.
• Developed new Traffic Signal standards.
• Completed the school flasher program to improve safety at schools and meet the current street requirements.
• Improved the service effectiveness, by maintaining projects budget, scope, schedule, and communication with
the community, internal department partners, external partners, and sponsors.
• Built quality into project management processes to ensure the community's expectations are met.
• Backflow prevention devices identified on GIS to efficiently manage City owned devices.
• Successful licensing of a Code Enforcement Officer within Public Works Department.
• Assisted the community and other departments in the recovery of Hurricane Harvey.
92
PUBLIC WORKS
♦ Relocated utilities beneath the northern embankment for the FM 518 overpass on SH 288 and at Smith Ranch
Road in preparation for an elevated T-Ramp from Hughes Ranch Road to the toll lanes for the Toll Road Utility
Relocation project.
♦ Completed the renovation of City Hall and City Hall Annex buildings.
♦ Reconstructed the Linwood Subdivision Street & Drainage from Old Alvin to Orange.
♦ Completed Orange Street Reconstruction (SH35 to Schleider Drive) project including improved area drainage.
♦ Extended Fite Road (McLean to Veterans) with a 4 lane concrete boulevard road.
♦ Completed the Tom Reid Library expansion and remodel, which doubled the library facility square footage.
♦ Added two new softball fields, pavilion and additional parking at Centennial Park.
♦ Installed over 2 miles of water lines along Hughes Ranch Rd west from Cullen to Smith Ranch Rd.
♦ Completed the additional trail segment of Trail Connectivity Ph II from Centennial Park to Pearland Pkwy for the
Hike and Bike Master Plan.
♦ Completed the Deloris Fenwick Nature Center facility.
♦ Completed the redirecting of flows for the Green Tee 1 to Riverstone Wastewater Diversion project.
FISCAL YEAR 2019 OBJECTIVES
♦ Update Emergency operations plans for each Public Works division as city's plans develop and change.
♦ Install/replace 150 linear feet of culvert pipe via City crews and contractor to maintain positive drainage.
♦ Install/replace 8,500 linear feet of sidewalk via sidewalk contract.
♦ Regrade 40,000 linear feet of ditches via City crews and contractor.
♦ Clean 1,500 linear feet of culvert pipe.
♦ Repair 3,000 potholes in asphalt pavement streets.
♦ Initiate joint and crack seal program as part of street maintenance and preservation.
♦ Implement additional tools for sidewalk maintenance and repairs per sidewalk policy and criteria.
♦ Complete the asphalt paving rehabilitation of 5.09 lane miles of streets.
♦ Conduct ROW Assessment of asphalt roadways updating prior data from 2014.
♦ Continue rehabilitation of sidewalks, signs, pavement markings and roadways identified through ROW
assessment and funded through budget process.
♦ Combine the Rough Cut and Open Ditch Mowing contracts into one maintenance program/contract.
♦ Complete and adopt the Right -of -Way Policy that governs the design and maintenance of all City's ROWs.
♦ Successfully implement the transition of traffic sign services, lane markings and guardrail management from the
Traffic Operations Division to the ROW Division.
♦ Achieve a more cost efficient Fleet division and improve customer service via the Motor Pool fund.
♦ Continue to decrease outsourcing in the Fleet division and continue to see cost benefits by keeping work in-
house.
♦ Upgrade current fuel management software with updated tools, equipment, and software for better fuel
management.
♦ Create a layer in GIS for Generator information and locations.
♦ Create and implement a Preventative Maintenance program for all City buildings.
♦ Complete facility condition assessment and rating system that identifies the condition of major infrastructure at
City facilities and the remaining useful life of each, and submit required repairs and rehabilitation in future
budgets.
♦ Complete City wide ITS traffic signal project upgrades.
♦ Implement new signal timing plans along key corridors (FM 518, Magnolia, FM 865 and FM 2234).
♦ Implement a street sweeping contract and maintain existing street sweeper for improved service delivery and
storm water improvements.
♦ Continue installing fiber to connect city facilities and traffic signals.
♦ Continue Street sign replacement program (Year 5 of 7).
♦ Improve roadway safety by developing 4 year pavement marking program to remark streets citywide.
♦ Transition Traffic Committee request into the Track -it system.
♦ Complete the 15 Preliminary Engineering Reports and finalize the projects and costs for the FY19 Bond Program.
♦ Submit 4 Street Improvement projects and 1 trail project in the 2019-2023 TIP Program sponsored by HGAC.
93
PUBLIC WORKS
50%
0%
2017 Citizen Survey
Quality Rating for
Public Works Services
din I. I, ...II
Excellent Good Fair Poor
• Street Repair
• Street Lighting
■ Traffic Signal Timing
• Street Cleaning
• Sidewalk Maintenance
65%
60%
55%
50%
45%
2017 Citizen Survey Results
Good to Excellent
Overall Ease of Travel
61% 62%
57%
56%
52%
2009 2011 2013 2015 2017
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
16,311
Sidewalk Installed (Linear Feet)
14,269 18,570
8,500
2016 2017 2018 2019
Target
FY 2016 FY 2017 FY 2018 2019
Actual Actual Actual Target
Percent of Water Plants Mowed Within the 2-week Schedule 66% 49% 74% 75%
Street Sweeping (miles) 1,160 1,112 1,815 1,850
Ditch/Culvert Cleaning (feet) 55,519 48,463 34,604 40,000
Percent of Lane Miles in Need of Repair (asphalt) 37% 37% 37% 37%
Number of Open Sidewalk Repair Work Orders 637 674 680 675
Number of Potholes Repaired 4,158 2,499 1,875 3,000
Culvert Pipe Installed/Replaced (feet) 644 186 84 150
Average Total Value of Current Active Projects (millions) $288 $399 $529 $510"
Percent of Change Orders to Total Contract Value 3.48% 1.72% .8% 1.3%
Average Number of Active Projects Being Administered 28 34 33 38
Percent of Active Projects Started on Schedule 80% 88% 80% 80%
Percent of Active Projects Completed on Schedule 75% 67% 73% 75%
94
Parks & Recreation
Deputy City Manager
Parks & Recreation
Administration
Recreation
Athletics
Special Events
Senior Programs
Aquatics
Parks
Recycling
Natural Resources
Recreation Operations
EXPENDITURES BY DEPT / DIVISION
PARKS & RECREATION
EXPENDITURE SUMMARY
FY 2019 ADOPTED BUDGET
FY 2017
ACTUAL
FY 2018 FY 2018 FY 2019
ORIGINAL YEAR END ADOPTED
BUDGET AMENDED BUDGET
ADMINISTRATION
RECREATION CENTER/NATATORIUM
ATHLETICS
SPECIAL EVENTS
SENIOR PROGRAM
PARKS
NATURAL RESOURCES
AQUATICS
RECYCLING
RECREATION OPERATIONS
PARKS & RECREATION TOTAL
EXPENDITURES BY CATEGORY
$ 642,400 $ 772,304
2,521,430 429,780
254,570 374,840
385,564 402,941
268,431 285,317
2,197,318 1,913,190
287,429 304,702
17,100 544,495
1,672 1,525
1,129,007
$ 6,575,912 $ 6,158,101
$ 784,212
388,919
353,212
404,827
262,587
2,249,286
273,085
627,068
1,200
1,162,576
$ 6,506,972
$ 801,816
433,712
359,931
393,924
302,682
1,966,711
275,889
584,451
1,200
1,215,421
$ 6,335,737
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDINGS & GROUNDS
EQUIPMENT REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
INVENTORY
CAPITAL OUTLAY
MOTOR POOL TRANSFERS
PARKS & RECREATION TOTAL
$ 3,960,051
520,814
703,984
92,387
1,008,079
12,012
278,585
$ 4,066,222
506,008
440,186
105,438
960,006
80,241
$ 3,970,125
483,531
538,181
104,468
887,687
9,221
513,759
$ 4,427,201
491,082
407,917
44,000
886,610
78,927
$ 6,575,912 $ 6,158,101 $ 6,506,972 $ 6,335,737
Parks & Recreation Expenditures as Percentage of Operating Budget
FY 2019 - 8.1 % of the $79.0 million Operating Budget
Recycling 0.0%
Natural Resources
Senior Program
Athletics
Special Events
Rec Ctr / Natatorium
Aquatics
Administration
Recreation Operations
Parks
13.3%
0.4 %
0.5%
0.5%
0.6%
0.7%
1.0%
1.5%
2.6%
0.0% 0.5%
1.0%
1.5% 2.0%
2.5% 3.0%
96
PARKS & RECREATION
OVERVIEW
Pearland Parks & Recreation, in collaboration with the Parks, Recreation and Beautification Board, local and regional
partners as well as other City departments, administers a Parks and Recreation Master Plan that provides a
comprehensive policy direction to the year 2020 to meet both current and future parks and recreation needs, and in
turn, enhance livability in the community. In addition to leisure classes, athletics and aquatics, adaptive/therapeutic,
special events, wellness, fitness, youth development programs and camps, senior citizens programs, and parks
maintenance, the department maintains 10 neighborhood parks and 3 larger community parks, a Recreation
Center/Natatorium, the Westside Events Center and the Melvin Knapp Activity Center.
STRATEGIC COUNCIL PRIORITY: The City aims to provide its citizens with Quality Parks, Recreation and Events.
Key Budget Items for FY 2019 include:
♦ Added Park Naturalist position $48,179
GOALS
♦ Improve internal communication.
♦ Improve external communication.
♦ Enhance strategic environmental stewardship.
♦ Consistently deliver quality programs.
♦ Ensure social equity through service delivery.
♦ Enhance & update assets to deliver premiere experiences.
♦ Become a recognized leader.
♦ Enhance organizational & operational efficiency.
♦ Enhance public health through engagement.
♦ Create effective and efficient financial practices.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Initiated an ongoing partnership program with the Houston Zoo to provide new Outdoor Recreation/Education
opportunities to the public.
♦ Installed a Footgolf course at the existing Centennial Disc Golf course.
♦ Implemented an Adaptive Kayaking program.
♦ Developed the Natural Resources Division's strategic plan.
♦ Participated in the nation-wide City Nature Challenge.
♦ Removed 10 acres of non-native invasive Chinese Tallow trees.
♦ Grew approximately 3,700 native plants for habitat improvement projects.
♦ Stocked JHEC ponds with 1,100 catfish to increase public fishing opportunities.
♦ Installed 2 large shade structures at the Sports Complex at Shadow Creek Ranch.
♦ Completed Centennial Park Phase II bringing an additional 2 softball fields to Centennial.
♦ Resurfaced the 4 tennis courts at Centennial Park, 4 tennis courts at Independence Park and 2 basketball
courts at Independence Park.
♦ Completed Trail Connectivity Phase II project from Magnolia to Veterans.
♦ Replaced indoor running track at the Recreation Center and Natatorium
♦ Implemented popup recreation programs.
♦ Partnered with Be a 9th Wonder Foundation to host an Adaptive Basketball Clinic for children with special
needs.
♦ In conjunction with the Houston Rockets, we hosted two successful Li-Ning International Basketball Camps.
♦ Hosted the 2018 TAAF Winter Games of Texas
♦ Hosted the Southwest Zone Junior Olympic Qualifications, the largest water polo tournament ever held in the
state of Texas.
♦ Provided swim lessons to 876 participants through the American Red Cross Learn -to -Swim program.
♦ Hosted USA Water Polo Olympic Development Program selection and training season.
97
PARKS & RECREATION
FISCAL YEAR 2019 OBJECTIVES
• Identify internal communication platforms.
• Create an Innovation and Sustainability Task Force.
• Develop a Strategic Marketing Plan.
• Restore, preserve & enhance natural areas in the community.
• Ensure programs and services are current, trending and relevant.
• Increase awareness of financial assistance program.
• Make planning decisions to eliminate barriers, either perceived or real.
• Utilize data, community needs and trends when updating assets.
57
56
55
54
53
52
51
50
49
48
47
20,000
15,000
10,000
5,000
0
15,190
12,361
1
FY 2016 Actual
PERFORMANCE MEASURES
Average Number of Monthly Visitors
Recreation Center & Natatorium
12,827 12,630
FY 17 Actual
14,828
1
9,207
FY 2018 Actual FY 2019 Target
■Recreation Center ❑Natatorium
Operating Expendatures Per Capita
56.4
54.72
Citizen Survey Results
Good to Excellent
Parks and Events
95% 90% 89% 90%
85% -
0 74% 73%77% 76%
75 /o
50.16 65%
55%
45%
FY 2016 Actual FY 2017 Actual FY 2018 Actual FY 2019 Target
55%
76%
1%
2009 2011 2013 2015 2017
—Parks Events
98
ENTERPRISE (WATER AND SEWER) FUND
FY 2019 ADOPTED BUDGET
OVERVIEW
The Water & Sewer Fund is an enterprise fund that includes water and sewer system operations. The fund is operated in
a manner similar to private business enterprises, where costs of providing the services to the public are financed
primarily through user charges. The City provides water and sewer service to approximately 37,000 residential and
commercial customers. Water & Sewer revenues provide 90.9% of the total revenue generated in the Water & Sewer
Fund. As such, the City of Pearland continually monitors and evaluates the need to adjust water and sewer rates in order
to ensure that the fund is self-supporting, that infrastructure rehabilitation is adequate, and that all bond covenants are in
compliance. A revenue increase is not needed for fiscal year 2019.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
SALE OF WATER
SEWER REVENUES
OTHER SERVICE CHARGES
INVESTMENT EARNINGS
OTHER MISCELLANEOUS INCOME
TRANSFERS IN
OTHER FINANCING SOURCES
TOTAL
EXPENSES
$22,061,002
20, 256,189
1,327,044
84,855
65,230
2,650,000
52,675,631
$22,233,388
22, 374,169
1,744,000
175,000
22,500
2,950,000
$25,500,000
23,500,000
1,686,000
325,000
7,000
2,950,000
$26,077,836
24,097,048
1,735,000
325,000
12,500
2,950,000
99,119,952 49,499,057
53,968,000 55,197,384
UTILITY CUSTOMER SERVICES 1,410,743 1,366,734 1,497,716 1,644,923
INFORMATION TECHNOLOGY 513,603 731,363 772,792 1,285,576
OTHER REQUIREMENTS 73,818,584 23,627,901 25,853,249 24,550,762
PUBLIC WORKS OPERATIONS ADMINISTRATION 679,440 1,059,026 1,139,941 727,551
WATER/SEWER GROUNDS 435,017 583,155 438,372 528,303
LIFT STATIONS 1,784,854 1,507,709 1,770,024 1,780,483
WASTEWATER 5,742,781 5,234,716 5,444,834 5,709,337
BACKFLOW COMPLIANCE 270,642
WATER PRODUCTION 9,572,564 9,622,877 9,513,266 10,758,831
DISTRIBUTION & COLLECTION 2,426,141 2,611,210 2,597,609 3,099,461
CONSTRUCTION 828,089 1,086,984 1,353,346 1,652,469
WATER METER SERVICES 1,295,624 1,387,657 953,079 1,155,056
PRETREATMENT FOG 253,326
TOTAL 98,507,440 48,819,332 51,334,228 53,416,720
REVENUES OVER/(UNDER) EXPENSES 612,512 679,725 2,633,772 1,780,664
Beginning Cash Equivalents 18,500,872 16,671,900 20,806,602 23,440,374
Reserve for Debt Service 3,616,964 3,796,725 3,796,725 4,356,022
Ending Cash Equivalents $15,496,420 $13,554,900 $19,643,649 $20,865,016
Bond Coverage - 1.4 13.48 4.08 3.49
Cash Reserve Ratio - 25% 54% 58% 58%
99
OTHER
MISCELLANEOUS
INCOME
INVESTMENT
EARNINGS
OTHER SERVICE
CHARGES
TRANSFERS IN
SEWER REVENUES
SALE OF WATER
0.0%
0.6%
3.1%
5.3%
WATER AND SEWER
REVENUES FY 2019
3.7%
47. %
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
WATER AND SEWER FUND
EXPENSES FY 2019
PRETREATMENT FOG ] 0.5%
BACKFLOW COMPLIANCE 0.5%
WATER/SEWER GROUNDS ] 1.0%
PUBLIC WORKS OPERATIONS ] 1.4%
ADMINISTRATION
WATER METER SERVICES 2.1%
INFORMATION TECHNOLOGY 2.4%
CONSTRUCTION 3.1%
UTILITY CUSTOMER SERVICES 3.1%
LIFT STATIONS 3.3%
DISTRIBUTION & COLLECTION 5.7%
WASTEWATER
WATER PRODUCTION
OTHER REQUIREMENTS
10.7%
20.1
46.2%
0.0% 10.0%
20.0% 30.0%
40.0% 50.0%
100
ENTERPRISE (WATER & SEWER) FUND
REVENUE & EXPENSE SUMMARY
FY 2019 ADOPTED BUDGET
FISCAL YEAR 2017-2018
Projected revenues of $53,968,000 are $4,468,943, or 9.0%, more than the original budget and $45,151,952, or
45.6%, less than the fiscal year 2017 actual of $99,119,952 due to $52,675,631 of proceeds from debt
refinancing in FY 2017. The fiscal year 2018 projected revenue is primarily higher than the original budget due to
the increase in water usage. Revenues from the sale of water and sewer services are projected to be
$4,392,443 or 9.8% higher than budgeted. Other service charges are projected to come in slightly more than the
original budget amount.
Fiscal Year 2018 expenses are anticipated to be $53,416,720. This is $2,514,896 more than the original budget
of $48,819,332, due to $2.04 million in additional funds added to fund capital improvement projects with cash.
Expenses are estimated $47,173,212 lower than the fiscal year 2017 actual due to refinancing of existing debt
and $1.48 million defeasance. Debt payments have increased $2.1 million over 2017 actuals. The ending
balance at September 30, 2018 is estimated to be $19,643,649 with a 58% cash reserve ratio and a bond
coverage of 4.08, above the required indicators.
FISCAL YEAR 2018-2019
Fiscal Year 2019 budgeted revenues total $55,197,384, a $1,229,384 increase from the fiscal year 2018
projections. Water and sewer charges increased by $1,174,884, or 2.4%, over the 2018 projections. This is
mainly due to an anticipated increase in customer growth of 2.5%.
Fiscal year 2019 expenses total $53,416,720 and include annual debt service payments of $17.38 million, an
increase of only $15,000 from fiscal year 2018. Expenses are $2,082,492 or 4.1%, higher than the fiscal year
2018 projections and are $4,597,388, or 9.4%, higher than the original budget.
Enhancements to the budget total $862,007, $686,532 recurring and $175,475 non -recurring. Enhancements
include additional funding for two customer service rep II ($93,654), reclassification of current a position to lead
billing specialist ($17,000), assistant director of utilities ($120,912), forklift ($35,000), backflow inspector with
vehicle ($90,268), environmental superintendent ($88,022), maintenance crew leader with vehicle ($98,440), two
maintenance workers with vehicle ($225,808), and pretreatment technician with vehicle ($92,903).
The budget anticipates a water/sewer bond sale totaling $34.74 million to fund infrastructure improvements in the
capital improvement program.
Available ending balance at September 30, 2019 is expected to be $20,865,016. Revenues exceed expenditures
by $1,780,664. Bond coverage is 3.49 and cash reserves are 58%.
RESIDENTIAL 5/8" or 3/4" METER WITH SEWER CAP OF 6,000 GALLONS MONTHLY AMOUNT
Consumption
Current
Bill
2019
Bill
Amount
Changed
Base (0-2,000)
$38.04
$38.04
$ 0.00
6,000
$73.80
$73.80
$ 0.00
8,000
$83.66
$83.66
$ 0.00
10,000
$93.52
$93.52
$ 0.00
15,000
$118.17
$118.17
$ 0.00
101
EXPENSES BY DEPT/DIVISION
ENTERPRISE (WATER & SEWER) FUND
EXPENSE SUMMARY
FY 2019 ADOPTED BUDGET
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
UTILITY CUSTOMER SERVICE 1,410,743 1,366,734 1,497,716 1,644,923
INFORMATION TECHNOLOGY 513,603 731,363 772,792 1,285,576
OTHER REQUIREMENTS * 73,818,584 23,627,901 25,853,249 24,550,762
PUBLIC WORKS ADMINISTRATION 679,440 1,059,026 1,139,941 727,551
WATER/SEWER GROUNDS 435,017 583,155 438,372 528,303
LIFT STATIONS 1,784,854 1,507,709 1,770,024 1,780,483
WASTEWATER 5,742,781 5,234,716 5,444,834 5,709,337
BACKFLOW COMPLIANCE 270,642
WATER PRODUCTION 9,572,564 9,622,877 9,513,266 10,758,831
DISTRIBUTION & COLLECTION 2,426,141 2,611,210 2,597,609 3,099,461
CONSTRUCTION 828,089 1,086,984 1,353,346 1,652,469
WATER METER SERVICES 1,295,624 1,387,657 953,079 1,155,056
PRETREATMENT FOG 253,326
WATER & SEWER FUND TOTAL 98,507,440 48,819,332 51,334,228 53,416,720
EXPENSES BY CATEGORY
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDING & GROUNDS
REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
INVENTORY
TRANSFERS/OTHER CHARGES
CAPITAL OUTLAY
WATER & SEWER FUND TOTAL
7,245,932
7,796,699
90,269
3,325,665
5,431,358
53,788
73,543,987
1,019,743
7,553,331
8,299,353
104,050
3,278,411
5,038,762
44,615
23,446,478
1,054,332
7,382,345
7,863,932
178,117
3,750,946
5,879,633
37,495
25,453,249
788,511
8,512,437
8,225,748
137,130
4,251,379
6,245,948
72,385
25,971,693
98,507,440 48,819,332 51,334,228 53,416,720
102
Public Works
(Water & Sewer)
Assistant City Manager
Public Works
Administration
Grounds Maintenance
Lift Stations
Wastewater Treatment
Backflow Compliance
Water Production
Distribution & Collections
Water & Sewer Construction
Meter Services
Pre -Treatment FOG
103
PUBLIC WORKS - UTILITIES
OVERVIEW
Within the Water & Sewer Fund, the Public Works Department oversees Lift Stations, Wastewater Treatment, Water
Production, Distribution and Collection, Construction, Water Meter Services, Environmental Services and Public
Works Water and Sewer Facilities Mowing. These divisions manage all utility facilities, including, but not limited to
80 lift stations and 5 treatment plants.
In addition to managing the above, the Lift Station division oversees the odor control operation and provides
troubleshooting and programming to the SCADA system for this division. The Wastewater Treatment division
provides sludge disposal services, laboratory testing, compliance documentation and reporting to maintain
compliance with TCEQ regulations, and general plant maintenance and repairs. Water Production collects water
samples for laboratory testing and submits sample reports to maintain compliance with TCEQ regulations, responds
to residents' calls for services, and maintains water plant operations and maintenance. W&S Distribution and
Collection conducts water and sewer repairs, sewer line inspections and preventive maintenance, as well as meter
and ROW inspections, locates lines and responds to emergencies and residents' calls. The W&S Construction
division repairs concrete streets and sidewalk trip hazards related to water and sewer repairs and aging utility
infrastructure to meet ADA compliance, installs water and sewer lines, and provides assistance on City projects as
needed. Water Meter Services oversees the installation and deployment of the new meters as part of the Advanced
Meter Infrastructure project. The Environmental Services division oversees backflow prevention and cross connection
prevention programs, pre-treatment programs.
STRATEGIC COUNCIL PRIORITIES: The Water -Sewer Fund provides additional support for Public Works functions
of government for the City, and are designed to support the installation, maintenance and improvement of drainage,
water production and treatment, and other similar public goods in ways that deliver citizens Sustainable Infrastructure.
Key Budget Items for FY 2019 Include:
• Assistant Director of Utilities - $120,912 • Maintenance Crew Leader w/Vehicle - $98,440
• Environmental Superintendent - $88,022 • Two Maintenance Workers w/Vehicle - $170,308
• Backflow Inspector w/Vehicle - $90,268 • Pretreatment Technician w/Vehicle - $89,403
GOALS
• Select and initiate an Asset Management program, software and condition rating and assessment.
• Cross training of staff within the Utility divisions.
• Provide efficient operation of the sanitary infrastructure by minimizing surcharges, overflows, and inflow and
infiltration in the sanitary sewer system to maintain compliance and maximize the existing treatment capacity.
• Protect the health of the public and the environment through proper treatment of wastewater, while maintaining
compliance with state and federal agencies.
• Maintain wastewater treatment facilities to reduce unplanned excursions and minimize the cost of maintenance.
• Identify Lift Stations to be decommissioned and connected to gravity sanitary sewer system.
• Installation of water quality analyzers at City of Houston water connection re -pressurization locations.
• Create preventative maintenance program for water and sanitary sewer system.
• Maintain and expand the water distribution system maintenance program to minimize cost of water loss while
maintaining a high level of service.
• Identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace or repair
those lines as resources allow.
• Maintain utility facilities to reduce unplanned shutdowns and minimize maintenance costs.
• Continue to rehabilitate the sanitary sewer system by identifying risks and priorities to prolong the life expectancy
and decrease the inflow of storm water into the sanitary sewer system.
• Provide distinguished customer service by quickly and courteously responding to citizen complaints or requests,
including requests from City departments.
• Maintain and enhance the appearance of City water and wastewater facilities through regular landscape
maintenance management practices.
104
PUBLIC WORKS — UTILITIES
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Continued to identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace
or repair those lines as resources allow.
♦ All certified operators have attended at least two (2) classes for training/renewal hours towards required license.
♦ New generator ATS installed at Longwood WRF.
♦ Staff created plant shut down protocol for emergency response.
♦ Completed rehabilitation of Liberty and Parkview Lift Stations.
♦ The Pearland Heights Lift Station was converted into a manhole and wastewater was flowed by gravity to the
Spring Meadow Lift Station.
♦ Operational zoning of staff for accountability by assigning operators to specific quadrants on a monthly basis.
Operators are accountable for water quality and water facilities in their designated area.
♦ Optimized treatment facilities by completing study of chlorine to ammonia ratio which assisted in the
improvements to treatment plant performance, public health and water quality in the distribution system.
♦ Implemented American Water Works Association sampling protocol creating a standard for new line construction.
♦ Completed Nitrification Action Plan updated to maintain regulatory compliance.
♦ Initiated the installation of waterline in the Willow Crest and Mimosa Acres neighborhoods to replace aging
transite water line.
♦ Rehabilitation of 4.3 miles of sanitary sewer via trenchless methods to reduce failures and inflow and infiltration
into the sanitary sewer system.
♦ Over 8 miles of sanitary line inspected to identify inflow and infiltration into the sanitary system and sanitary lines
for rehabilitation.
♦ Completed water line maintenance and cleaning in the Sunset Meadows, Sunset Lakes, Pine Hollow, Oak Brook,
Dixie Woods, Dixie Hollow, Pine Shadows, Willow Lakes, Shady Crest, River Mist, Pearland Park Estates,
Pearland Farms, Orchard Glen and Canterbury Park subdivisions.
♦ Obtained the 10.5 yd Concrete Truck for additional productivity to repair utility cuts.
♦ Acquired the Waterline maintenance trailer to reduce cost of the program.
♦ Successfully completed 13,247 utility locate requests.
♦ Received, reviewed and managed 386 Right -of -Way permits.
♦ Successfully implemented the water well, reclamation facility and lift station grounds maintenance contract
providing utility properties.
♦ Successfully implemented the Hot Shot Crew and services within the community, highlighted inside the Pearland
in Motion Magazine.
FISCAL YEAR 2019 OBJECTIVES
♦ Continue with the expansion of wastewater reclamation facilities throughout the City.
♦ Complete the expansion of the Reflection Bay Water Reclamation Facilities, bringing the total treatment
capacity to 6 MGD.
♦ Continue with cross -training with the intent to have staff dual licensed (Water and Wastewater).
♦ Continue to identify water and sanitary lines that have outlived their expected life or are likely to fail, include
in Asset Management system and replace or repair those lines as resources allow.
♦ Complete assessment and upgrade of SCADA system software, graphics and communication network.
♦ Rehabilitate or eliminate one to three lift stations, including Mary's Creek, Veterans I and Springfield Lift
Stations.
♦ Complete the installation of waterline in the Willow Crest and Mimosa Acres neighborhoods to replace aging
transite water lines.
♦ Initiate contracts for transite water lines replacements. Initiate contracts for manhole rehabilitation program.
♦ Develop internal user guide and process chart for ROW permit review process (TRAKiT).
♦ Improve municipal owned utility locating efforts, through coordinated cross training of line locating resources
(utility locator tool) and techniques.
♦ Enhance the aesthetics of one water plant property through the installation of landscape material/landscape
renovation at the entrance to utility facility.
105
80%
75%
70%
65%
60%
3,500
w 3,000
0
E
2,500
.s 2,000
w
a 1,500
To
a' 1,000
500
2,1962'442
1
2016
PUBLIC WORKS — UTILITIES
Water Produced and Water Purchased
2,584
2,417
Citizen Survey Ratings
Good to Excellent
Ratings of Drinking Water
73%
2017
3,024 3,054
2,550
2018
2,575
2019
Target
90%
85%
80%
75%
• Water Produced
❑ Water Purchased
Citizen Survey Ratings
Good to Excellent
Ratings of Sewer Services
83%
84%
86%
80%
84%
2009 2011 2013 2015 2017 2009 2011 2013 2015 2017
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Wastewater gallons treated in billion gallons 3.515 3.513 3.513 3.500
Cost per gallon to treat wastewater $0.0013 $0.0016 $0.0011 $0.0013
Water main installation (feet) 11,800 2,300 5,305 5,000
Sewer main installation (feet) 0 16,817 14,582 10,000
Cost per gallon of water purchased $0.0043 $0.0044 $0.0042 $0.0045
Percent of time Waste Water Treatment Plant over capacity 20% 0% 0% 0%
106
FINANCE
UTILITY CUSTOMER SERVICE
OVERVIEW
Water Billing & Collection Services Division reports to the Director of Finance and is primarily responsible for customer
service, billing and collection operations for water, sewer and garbage fees. The division is also responsible for the
contract oversight, performance, and coordination of vendor resources for the collection of curbside residential solid
waste. As the main point of contact with the City residents, WB&C is committed to welcoming the new residents of
Pearland and making it a great place to live.
STRATEGIC COUNCIL PRIORITY: The customer service and account management encounters with the residential
and business customers require that the division interact in ways that meet or exceed Council goals of community
engagement and financial accountability in a respectful, transparent, and fiscally accountable manner.
Key Budget Items for FY 2019 Include:
♦ Two Customer Service Rep II - $93,654
GOALS
♦ Ensure timely and accurate billing and integrity of billing.
♦ Improve customer engagement by exemplifying professional customer service standards the Pearland Way.
♦ Ensure accurate account management of all billing, payments, refunds, and adjustments transacted and posted.
♦ Maintain high collection rate and low delinquency rate through service disconnection and collection policies.
♦ Provide excellent customer service to internal and external customers by exemplifying the Pearland Way.
♦ Update and maintain Water Utility Customer Service & Billing web information pertaining to all service operations.
♦ Identify delinquent customer waste accounts to pursue collection and resolution of outstanding balances.
♦ Collaborate with commercial customers and contract waste management partner to enhance awareness and
compliance to prevent contaminants from entering recycling.
♦ Revamp WB&C website to include customer education, water conservation tips and AMI Project Updates.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Implemented rate increases through newly adopted utility rates up to approximately 16%.
♦ Worked with waste service contractor to improve consistent service performance for all customers.
♦ Completed one year of new ERP utility management system.
♦ Refreshed staff training of customer service through a refresher of "The Pearland Way" ideology.
♦ Filled Assistant Manager vacancy.
♦ Developed process documentation of internal operations plans to optimize consistent use of the New World
System.
FISCAL YEAR 2019 OBJECTIVES
♦ Implement Analytics reporting of City-wide MUD account to ensure proper identification and residential billing.
♦ Continue staff development through customer service training to exemplify the Pearland Way.
♦ Train key staff to produce better business intelligence reports through Excel pivot table training.
♦ Improve customer engagement through all contact channels.
♦ Identify and produce key call center data analytics for continuous process improvements.
♦ Initiate scheduled online updates to engage and educate community regarding water utility, garbage, and other
services managed by the Division to inform citizens in a proactive manner.
Annual meter reads
Percent of payments processed online
Number of cut-offs
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
407,406 461,502 467,910 479,607
52% 41% 54.24% 60%
1,284 896 1,987 1,192
107
FINANCE
UTILITY CUSTOMER SERVICE
OVERVIEW
Water Billing & Collection Services Division reports to the Director of Finance and is primarily responsible for customer
service, billing and collection operations for water, sewer and garbage fees. The division is also responsible for the
contract oversight, performance, and coordination of vendor resources for the collection of curbside residential solid
waste. As the main point of contact with the City residents, WB&C is committed to welcoming the new residents of
Pearland and making it a great place to live.
STRATEGIC COUNCIL PRIORITY: The customer service and account management encounters with the residential
and business customers require that the division interact in ways that meet or exceed Council goals of community
engagement and financial accountability in a respectful, transparent, and fiscally accountable manner.
Key Budget Items for FY 2019 Include:
♦ Two Customer Service Rep II - $93,654
GOALS
♦ Ensure timely and accurate billing and integrity of billing.
♦ Improve customer engagement by exemplifying professional customer service standards the Pearland Way.
♦ Ensure accurate account management of all billing, payments, refunds, and adjustments transacted and posted.
♦ Maintain high collection rate and low delinquency rate through service disconnection and collection policies.
♦ Provide excellent customer service to internal and external customers by exemplifying the Pearland Way.
♦ Update and maintain Water Utility Customer Service & Billing web information pertaining to all service operations.
♦ Identify delinquent customer waste accounts to pursue collection and resolution of outstanding balances.
♦ Collaborate with commercial customers and contract waste management partner to enhance awareness and
compliance to prevent contaminants from entering recycling.
♦ Revamp WB&C website to include customer education, water conservation tips and AMI Project Updates.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Implemented rate increases through newly adopted utility rates up to approximately 16%.
♦ Worked with waste service contractor to improve consistent service performance for all customers.
♦ Completed one year of new ERP utility management system.
♦ Refreshed staff training of customer service through a refresher of "The Pearland Way" ideology.
♦ Filled Assistant Manager vacancy.
♦ Developed process documentation of internal operations plans to optimize consistent use of the New World
System.
FISCAL YEAR 2019 OBJECTIVES
♦ Implement Analytics reporting of City-wide MUD account to ensure proper identification and residential billing.
♦ Continue staff development through customer service training to exemplify the Pearland Way.
♦ Train key staff to produce better business intelligence reports through Excel pivot table training.
♦ Improve customer engagement through all contact channels.
♦ Identify and produce key call center data analytics for continuous process improvements.
♦ Initiate scheduled online updates to engage and educate community regarding water utility, garbage, and other
services managed by the Division to inform citizens in a proactive manner.
Annual meter reads
Percent of payments processed online
Number of cut-offs
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
407,406 461,502 467,910 479,607
52% 41% 54.24% 60%
1,284 896 1,987 1,192
108
ENTERPRISE FUND DEBT MATURITY SCHEDULE
FY 2019 ADOPTED BUDGET
ENTERPRISE FUND DEBT
REVENUE BONDS
Year
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
2025-2026
2026-2027
2027-2028
2028-2029
2029-2030
2030-2031
2031-2032
2032-2033
2033-2034
2034-2035
2035-2036
2036-2037
2037-2038
2038-2039
2039-2040
2040-2041
2041-2042
2042-2043
2043-2044
2044-2045
2045-2046
2046-2047
2047-2048
TOTAL
Principal
10,630,000
10,790,000
11,010,000
11,090,000
11,920,000
11,105,000
11,390,000
11,895,000
12,225,000
11,500,000
11,855,000
12,140,000
10,930,000
8,420,000
8,590,000
8,770,000
6,250,000
5,450,000
5,065,000
3,980,000
3,065,000
2,430,000
2,445,000
2,450,000
2,465,000
2,475,000
2,490,000
790,000
800,000
290,000
214,705,000
Interest Total
6,132,446 16,762,446
5,915,644 16,705,644
5,654,876 16,664,876
5,379,299 16,469,299
5,089,992 17,009,992
4,755,136 15,860,136
4,435,983 15,825,983
4,097,336 15,992,336
3,661,955 15,886,955
3,210,682 14,710,682
2,762,481 14,617,481
2,378,961 14,518,961
2,014,996 12,944,996
1,683,287 10,103,287
1,412,691 10,002,691
1,133,783 9,903,783
875,208 7,125,208
687,064 6,137,064
534,357 5,599,357
392,549 4,372,549
291,894 3,356,894
236,928 2,666,928
204,774 2,649,774
172,086 2,622,086
139,036 2,604,036
105,447 2,580,447
71,404 2,561,404
36,850 826,850
21,194 821,194
5,249 295,249
63,493,583 278,198,583
Series Name
17,299,146
17,232,644
17,177,076
16,981,399
17,516,492
17,414,136
17,328,183
Water & Sewer Revenue Bonds Series 1999
Water & Sewer Revenue Bonds Series 2007
Water & Sewer Revenue Bonds Series 2010A
Water & Sewer Refunding Bonds Series 2010B
Permanent Improvement Refunding Bonds Series 2012*
Water & Sewer Revenue Bonds Series 2012
Water & Sewer Revenue Bonds Series 2014
Water & Sewer Revenue Bonds Series 2016
Water & Sewer Revenue Bonds Series 2016E (TWDB)
Water & Sewer Revenue Bonds Series 2016C (TWDB)
Water & Sewer Revenue Bonds Series 2017A (TWDB -DWSRF)
Water & Sewer Revenue Bonds Series 2017E (TWDB -DWSRF)
Water & Sewer Revenue & Refunding Bonds Series 2017C
Water & Sewer Revenue Bonds Series 2018A (TWDB -DWSRF)
Water & Sewer Revenue Bonds Series 2018B
TOTAL
* Excluding portion associated with General Fund
**Does not include new debt anticipated to be issued.
GENERAL OBLIGATION
& REFUNDING SERIES
Year
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
2025-2026
2026-2027
2027-2028
2028-2029
2029-2030
2030-2031
2031-2032
2032-2033
2033-2034
2034-2035
2035-2036
2036-2037
2037-2038
2038-2039
2039-2040
2040-2041
2041-2042
2042-2043
2043-2044
2044-2045
2043-2045
2044-2046
2043-2046
Principal
365,000
370,000
370,000
385,000
395,000
1,480,000
1,480,000
Interest Total
171,700 536,700
157,000 527,000
142,200 512,200
127,100 512,100
111,500 506,500
74,000 1,554,000
22,200 1,502,200
TOTAL
4,845,000
805,700 5,650,700
Principal Amount
Outstanding
1,195,000
11,390,000
10,825,000
6,360,000
4,845,000
5,840,000
8,435,000
7,990,000
8,635,000
46,380,000
9,220,000
11,685,000
59,050,000
8,650,000
19,050,000
219,550,000
109
ENTERPRISE FUND DEBT TO MATURITY
FY 2019 ADOPTED BUDGET
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
REVENUE BONDS
so
O^O
ti HOR,5O0^09000�05'5O09HC^ryO1b00 I^ OCO
ti ti '1 Oti ti '1 '1 tiOtiOtiO ti0ti0ti0'10'10ti0ti0tiO ti0tiO'12 tiOtiOtiOtiOtiO
ti ti
■Principal °Interest
$1,800,000 -
$1,600,000 -
$1,400,000 -
$1,200,000 -
$1,000,000 -
$800,000 -
$600,000 -
$400,000 -
$200,000 -
$0
2018
2019
GENERAL OBLIGATION*
2020
2021
°Principal °Interest
2022
■
2023
2024
* Issued as General Obligation, but paid for by water and sewer rates.
Note: Does not include new debt anticipated to be issued.
110
ENTERPRISE FUND DEBT SERVICE SCHEDULE
FY 2019 ADOPTED BUDGET
AMOUNT
AMOUNT PAYMENT OUTSTANDING
DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/19
3/1/2019 Series 1999 Revenue Bond 4,000,000 27,485 27,485
9/1/2019
585,000 27,485 612,485
585,000 54,970
639,970 610,000
3/1/2019 Series 2007 Revenue Bond 40,135,000 199,325 199,325
9/1/2019 199,325 199,325
0 398,650 398,650 11,390,000
3/1/2019 Series 2010A Revenue Bond 14,040,000 226,866 226,866
9/1/2019 455,000 226,866 681,866
455,000 453,731 908,731 10,370,000
3/1/2019 Series 2010B Refunding Bond 8,970,000 124,494 124,494
9/1/2019 425,000 124,494 549,494
425,000 248,988 673,988 5,935,000
3/1/2019 Permanent Improvement and 6,230,000 365,000 89,500 454,500
9/1/2019 Refunding Bond Series 2012* 82,200 82,200
365,000 171,700 536,700 4,480,000
3/1/2019 Series 2012 Revenue Bond 8,670,000 90,378 90,378
9/1/2019 780,000 90,378 870,378
780,000 180,755 960,755 5,060,000
3/1/2019 Series 2014 Revenue Bond 9,210,000 149,809 149,809
9/1/2019 230,000 149,809 379,809
230,000 299,619 529,619 8,205,000
3/1/2019 Series 2016A Revenue Bond 8,880,000 111,506 111,506
9/1/2019 445,000 111,506 556,506
445,000 223,013 668,013 7,545,000
3/1/2019 Series 2016B Revenue Bond (TWDB) 11,100,000 3,762 3,762
9/1/2019 1,230,000 3,762 1,233,762
1,230,000 7,524 1,237,524 7,405,000
3/1/2019 Series 2016C Revenue Bond (TWDB) 50,100,000 157,533 157,533
9/1/2019 1,860,000 157,533 2,017,533
1,860,000 315,066 2,175,066 44,520,000
3/1/2019 Series 2017A Revenue 10,225,000 29,539 29,539
9/1/2019 Bond (TWDB-DWSRF) 1,010,000 29,539 1,039,539
1,010,000 59,079 1,069,079 8,210,000
3/1/2019 Series 2017B Revenue 12,025,000 92,463 92,463
9/1/2019 Bond (TWDB-DWSRF) 340,000 92,463 432,463
340,000 184,925 524,925 11,345,000
3/1/2019 Series 2017C Revenue Bond 60,970,000 1,334,266 1,334,266
9/1/2019 2,025,000 1,334,266 3,359,266
2,025,000 2,668,531 4,693,531 57,025,000
3/1/2019 Series 2018A Revenue 8,650,000 59,302 59,302
9/1/2019 Bond (TWDB-DWSRF) 290,000 59,302 349,302
290,000 118,604 408,604 8,360,000
3/1/2019 Series 2018B Revenue Bond 19,050,000 391,283 391,283
9/1/2019 955,000 414,300 1,369,300
TOTAL
*Excludes General Fund Component
""Does not include new debt anticipated to be issued.
955,000 805,583 1,760,583 18, 095, 000
272, 255, 000 10, 995, 000 6,190, 736 17,185, 736 208, 555, 000
111
SOLID WASTE FUND
SUMMARY OF REVENUES, EXPENSES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Solid Waste Enterprise Fund is used to account for residential and commercial solid waste. Governmental
Accounting Standards state that the enterprise fund type may be used to account for operations that are financed
and operated in a manner similar to private business, where the intent is that the costs of providing goods and
services be financed or recovered through user charges. Services include the pick-up of residential solid waste
twice a week, curbside recycling once a week and green waste pick-up. Residential curbside HHW pick-up is
also provided by appointment, free of charge. Exclusive commercial solid waste pick-up is provided for in the
contract, however the contractor directly bills and collects from the commercial customers. Commercial service
ranges from once a week to daily with a variety of container sizes available, based on individual customer needs.
The City's contract with Waste Management, awarded in 2006 was renewed in 2011, with an amendment in
December 2013, and expires September 30, 2021. The contract allows for service rates to adjust annually to the
reported Consumer Price Index for the Houston MSA and allows for quarterly rate adjustments based on diesel
fuel prices, up or down.
The fiscal year 2018 projection is based on a current rate of $17.76 per household per month from October 2017
through September 2018 pursuant to quarterly fuel adjustments provided for in the Waste Management contract.
The fiscal year 2019 budget is anticipated to see a slight increase to $18.43 effective October 2018, based on CPI
in April 2018, and includes growth in the customer base of 75 to 95 new units per month. No rate adjustments for
fuel are included.
FY 2018* FY 2018* FY 2019
FY 2017* ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
SALES TAX DISCOUNT $ 67,763 $ 2,800 $ 2,871 $ 2,800
CHARGES FOR SERVICES 6,481,078 7,384,239 7,560,000 7,700,000
MISCELLANEOUS (19) 1,000 0 1,000
INTEREST INCOME 825 1,375 15 15
TOTAL 6,549,647 7,389,414 7,562,886 7,703,815
EXPENSES
MISCELLANEOUS SERVICES 7,355,776 7,384,239 8,352,811 7,700,000
OTHER EXPENSES (19,699)
INTER -FUND TRANSFERS
TOTAL 7,336,076 7,384,239 8,352,811 7,700,000
REVENUES OVER (UNDER) EXPENSES (786,430) 5,175 (789,925) 3,815
BEGINNING CASH EQUIVALENTS 422,023 439,098 (364,407) (1,154,332)
ENDING CASH EQUIVALENTS $ (364,407) $ 444,273 $(1,154,332) $(1,150,517)
*$1.3 million in debris clean-up was funded through the Solid Waste Fund through publication of this document,
which accounts of the negative balance in this fund. Debris Clean-up will be reimbursable through FEMA.
112
SOLID WASTE
GOALS
• Provide consistent, satisfying curbside service of solid, green waste, and recycle collection and disposal services
to residents and commercial businesses within the City of Pearland.
• Provide public education and awareness to residents and businesses as necessary.
• Provide proactive client notification of changes that affect all customer services to City designee.
• Meet quarterly to mitigate customer issues and to collaborate on common objective affecting the City
• Continuously improve customer service by promoting a customer -focused culture that is directly responsive to
the residents and business customers of the City of Pearland.
• Provide oversight of the City's contractor to meet daily operational deliverables.
FISCAL YEAR 2018 ACCOMPLISHMENTS
• Improved response time to customer issues regarding city-wide garbage collection and curbside recycling.
• Filled the vacant Assistant Manager position and to oversee AMI project.
• Collaborated with Public Works and Projects on AMI project.
• Completed updates of online forms and Water Billing website.
FISCAL YEAR 2019 OBJECTIVES
• Continue improvement of customer service performance through the use of e-notification and ticket assignment
of complaints, service requests, and dispute resolutions which is conducted through the Water Customer Service
& Billing division and WM Call Center.
• Increase community awareness of curbside services by providing frequently scheduled online information to
residents and customers.
8,000
7,000
6,000
5,000
4,000
3,000
2,000
Tons of Curbside
Green Waste Recycled
Diverted From Landfill
7,320
2016
2017
2018 2019
Target
*Source: Waste Management Monthly Report to the City of Pearland, August 2018
76,000
74,000
72,000
70,000
68,000
66,000
64,000
62,000
60,000
Tons of Solid Waste Land -Filled
74,750
69,549
69,747
70,000
2016 2017 2018 2019
Target
113
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114
CAPITAL PROJECT FUNDS
The Capital Project Funds are used to account for specific revenues that are legally restricted for particular
purposes. A description of the individual Capital Projects Funds follows and the budget schedules can be
found following this document.
Fund 500 Pay -As -You -Go — A fund to pay for non -water and sewer projects in a pay-as-you-go (cash) basis.
Fund 501 Certificates of Obligation — A fund created to pay for non -water and sewer projects being funded by
Certificates of Obligation.
Fund 502 Mobility Bonds — A fund used to account for mobility projects.
Fund 503 Certificates of Obligation Series 2006 — A fund set up to pay for non -water and sewer projects being funded
by 2006 Series Certificates of Obligation.
Fund 504 Certificates of Obligation Series 2007 — A fund set up to pay for non -water and sewer projects being funded
by 2007 Series Certificates of Obligation.
Fund 505 General Obligation Series 2007A — A fund set up to pay for non -water and sewer projects being funded by
2007A Series General Obligation bonds.
Fund 506 General Obligation Series 2009, 2010, 2011, 2014 — A fund set up to pay for non -water and sewer projects
being funded by 2009, 2010, 2011, 2014 and future Series General Obligation bonds.
Fund 550 Utility Impact Fee — A fund created to account for impact fees collected and water and sewer projects from
the development of property based on the impact to the water and sewer system.
Fund 555 Shadow Creek Ranch Impact Fee — A fund created to account for those fees collected and water and sewer
projects from the development of property in the Shadow Creek Ranch area based on the impact to the water and sewer
system.
Fund 560 Certificates of Obligation Series 1998 — A fund set up to pay for those projects being funded by 1998 Series
Certificates of Obligation.
Fund 565 Water & Sewer Revenue Bonds — A fund set up to pay for water and sewer projects being funded by
Revenue Bonds.
Fund 570 Water & Sewer Pay -As -You -Go — A fund set up to pay for water and sewer projects in a pay-as-you-go
(cash) basis.
Fund 575 MUD 4 Capital Program — A fund created to pay for projects in the old MUD 4 area.
115
CAPITAL PROJECT FUNDS
FY 2019 ADOPTED BUDGET
Capital Project Funds are created to account for the acquisition or construction of major capital activities.
Funding is provided through the issuance of debt, developer fees, state and federal funding, user fees, general
fund and utility revenues, and interest income.
The City maximizes every source of funding available and is constantly looking at leveraging funding through
the use of federal, state and county dollars. Currently the City is working on several street improvement and
trail projects that have received H-GAC TIP State and Federal funds in the amount of $155.8 million. These
projects are in various phases and will be completed over the next several years. Pearland places significant
importance on infrastructure improvement and rehabilitation, as evidenced by a $162 million bond referendum
that passed in May 2007, as well as a Five -Year CIP (2019 - 2023) totaling $676.1 million. The Five -Year CIP
completes the 2007 bond referendum in 2021, due to the letting of TIP projects. New/proposed capital needs
in the amount of $124,538,000 have been identified, excluding potential projects that would arise from the
completion of master plans, such as the parks master plan, the drainage master plan, the facilities assessment
study or potential transportation improvement plan opportunities.
The first year of the Five -Year Capital Improvement Program is incorporated into the annual budget to
appropriate funds. Capital projects for fiscal year 2018 - 2019 total $153,001,858 excluding transfers and bond
issuance costs.
PEDC
Impact Fees - Cash
System Revenues - Cash
Certificates of Obligation
Impact Fees - Debt
New/Proposed GO Bonds
TIRZ Reimbursable Debt
General Obligation Bonds
W/S Revenue Bonds
Other Funding Sources
Fiscal Year 2018 - 2019 CIP
Funding Sources ($ in millions)
$0.30
■ $1.90
$3.16
8.76
I $9.45
I $12.00
$16.00
$1:.69
$25.29
$42.12
$0 00 $10.00 $20.00 $30.00 $40.00 $50.00 /
Parks
Drainage
Facilities
Water/Sewer
Streets
Fiscal Year 2018 - 2019 CIP
Uses by Project Type ($ in millions)
7 $5.20
El $6.54
$3
.38
$43.03
$66.86
$0 00
$20.00 $40.00
$60.00
$80.00
/
116
Water/Sewer projects total $43.03 million, or 28.1%, of the capital improvement program. Major projects include
rehabilitating failing sanitary collection system, construction of a waterline extension along McHard Road from
Cullen Parkway to Mykawa Road, design of underground piping infrastructure at water production facilities,
replacement of transite waterline pipe throughout the city, design of 10 MGD surface water treatment plant,
installation of third ground storage tank on FM521, remove and replace existing discharge piping and install an
odor control unit on the Cullen regional lift station, design to install 1 MG concrete ground storage tank at Bailey
Water Plant, and installation of the McHard Road Trunk Sewer from Garden to Southdown WWTP.
Street projects total $66.86 million, or 43.7%, of the total and include funding for right of way for Mykawa Road
Widening, reconstruction of Hughes Ranch Road (CR 403) from Cullen to Smith Ranch Road from a 2-lane
asphalt open ditch roadway to a 4-lane concrete curb and gutter boulevard, the extension of approximately 3.5
miles of McHard Road, from Cullen Parkway to Mykawa Road, expansion of Smith Ranch Road from 2-lane
asphalt into divided 4-lane with raised medians, and construct a 3- lane concrete curb and gutter "urban" cross-
section northbound frontage road from County Road 59 to FM 518 (Broadway). Mykawa Road, Hughes Ranch
Road, McHard Road, and Smith Ranch Road contain 80% construction funding through HGAC TIP.
Facilities total $31.38 million, or 20.5%, and include construction for a new 12,000 square foot office facility at the
Orange Street Service Center. Also, the City will begin construction of Fire Station 8, approximately 18,000
square foot facility located in Shadow Creek Ranch, and Fire Station 7, approximately 11,000 square foot facility
to be located near Main Street and Oiler Drive. Funding is also available for a Shadow Creek Library preliminary
engineering report and design for a new animal shelter. The city will also continue to extend the fiber network to
reach all city facilities.
Drainage projects to be $6.54 million, or 4.3%, of the total and include drainage improvements along Piper Road
from FM 518 to Fite Road, Mimosa Acres Subdivision drainage improvements, Willowcrest Subdivision drainage
improvements, West Lea Subdivision drainage improvements, and drainage improvements and additional
detention capacity in the existing D.L. Smith Detention Pond and other nearby development areas.
Parks projects total $5.2 million, or 3.4%, of the total. Funds are included for park equipment replacement, design
of the 12,400 feet long, 10 foot wide concrete Clear Creek Trail, design of Independence Park Phase II, a
permanent stand-by generator that will operate the recreation center a full capacity to be able to provide full
operational capacities in time of emergency for City staging or as a shelter, and design of Shadow Creek Ranch
Park Phase II.
For the Water/Sewer component, the City anticipates selling revenue bonds totaling $34.7 million to fund
infrastructure improvements in the capital improvement program.
Of the remaining $101 million, the City anticipates selling $16.7 million in GO Bonds approved by the voters in
2007 and selling Certificates of Obligation in the amount of $8.8 million mainly for facility projects not anticipated
with the 2007 bond referendum but needed for Public Safety (Fire Station 7 and 8), Public Works, and Hike &
Bike Trails. A total of $39.7 million will come from HGAC Transportation Improvement Program funds and
developer contributions, mainly for street projects and hike and bike trails.
In addition, $12 million in new/proposed general obligation bonds will be appropriated after voter approval and
$16 million in funds are anticipated to be reimbursed by TIRZ.
117
REVENUES:
INTEREST INCOME
BOND PROCEEDS
IMPACT FEES
MISCELLANEOUS
INTERGOVERNMENTAL
TRANSFERS IN
TOTAL REVENUES
EXPENDITURES:
DRAINAGE
PARKS
FACILITIES
STREETS
WATER
SEWER
TOTAL PROJECTS
GOVERNMENTAL FUND
FUND 500 FUND 501 FUND 503 FUND 506 TOTAL
PAY -AS -YOU- CERTIFICATES 2006 GENERAL
GO OF CERTIFICATES OBLIGATION
OBLIGATION OF
OBLIGATION
10,000 200,000
24,057,190
2,930,328
300,000
300,000 510,000
15,660,415 39,717,605
38,100,063 41,030,391
5,361 305,361
10,000 27,487,518
54,065,839 81,563,357
1,600,000
265,000 27,175,000
7,325,000
2,100,000
1,000,000
53,890,000
2,100,000
2,600,000
27,440,000
61,215,000
265,000 36,100,000 56,990,000 93,355,000
ISSUANCE COSTS
OTHER NON -OPERATING
TRANSFERS OUT 125,245 530,645 3,916 619,494 1,279,300
TOTAL NON -OPERATING 125,245 530,645 3,916 619,494 1,279,300
TOTAL EXPENDITURES 390,245 36,630,645 3,916 57,609,494 94,634,300
REVENUES OVER/(UNDER)
EXPENDITURES
BEGINNING BALANCE
Ending Fund Balance (1)
(380,245) (9,143,127)
(3,916) (3,543,655) (13,070,943)
926,916
3,412,567 14,625
4,155,866 8,509,974
$ 546,671 $ (5,730,560) $ 10,709 $ 612,211 $ (4,560,969)
°balance of CO's to be sold in 2020 - $5.84 million
Note - Each fund may have different restrictions or assignments based on funding source,
therefore ending balances may not be available for other purposes.
118
REVENUES:
INTEREST INCOME
BOND PROCEEDS
IMPACT FEES
MISCELLANEOUS
INTERGOVERNMENTAL
TRANSFERS IN
TOTAL REVENUES
ENTERPRISE FUND
FUND 550 FUND 555 FUND 565 FUND 570 FUND 575 TOTAL GRAND
UTILITY SHADOW REVENUE PAY -AS -YOU- MUD 4 CAPITAL TOTAL
IMPACT FEE CREEK RANCH BONDS GO PROGRAM
IMPACT FEE
900,000
24,590,000
4,500,000
10,000
250,000
100,000 10,000
5,740,000
245,000 2,915,000
1,020,000 1,530,000
30,330,000 70,047,605
4,750,000 4,750,000
41,030,391
3,160,000 3,465,361
29,990,000 260,000
6,085,000 2,925,000 39,260,000 120,823,357
EXPENDITURES:
DRAINAGE 2,100,000
PARKS 2,600,000
FACILITIES 27,440,000
STREETS 61,215,000
WATER 31,860,638 4,485,000 2,345,000 38,690,638 38,690,638
SEWER 1,990,000 1,500,000 1,170,000 4,660,000 4,660,000
TOTAL PROJECTS 33,850,638 5,985,000 3,515,000 43,350,638 136,705,638
ISSUANCE COSTS 1,000,000 1,000,000 1,000,000
OTHER NON -OPERATING
TRANSFERS OUT 2,384,100 700,000 272,916 173,688 3,530,704 4,810,004
TOTAL NON -OPERATING 3,384,100 700,000 272,916 173,688 4,530,704 5,810,004
TOTAL EXPENDITURES 37,234,738 700,000 6,257,916 3,688,688 47,881,342 142,515,642
REVENUES OVER/(UNDER)
EXPENDITURES (7,244,738) (440,000) (172,916) (763,688) (8,621,342) (21,692,285)
BEGINNING BALANCE
24,329,730 1,431,825 405,721 837,728 428 27,005,432 35,515,406
ENDING BALANCE $ 17,084,992 $ 991,825 $ 232,805 $ 74,040 $ 428 $ 18,384,090 $ 13,823,121
Note - Each fund may have different restrictions or assignments based on funding source,
therefore ending balances may not be available for other purposes.
119
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Drainage Projects
DR2002
D. L. Smith Area Drainage
Improvements
Drainage improvements and additional detention capacity in the existing D.L.
Smith Detention Pond and other nearby development areas. Improvements
to be considered are Clear Creek Improvements, additional detention
capacity and drainage mitigation and land acquisition as a result of
Hurricane Harvey.
Project
Budget
$5,888,036
2019
Budget
$2,100,000
2019
$0
0 & M Impact
2020 2021
$0 $0
2022
$4,500
2023
$4,500
Drainage Total 2019 0 & M Impact
Budget Budget 2019 2020 2021 2022 2023
$5,888,036 $2,100,000 $0 $0 $0 $4,500 $4,500
120
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Parks Projects
PK1904
Clear Creek Trail
Construction of approximately 12,400 feet long, 10 foot wide concrete hike
and bike trail beginning at the existing trail north of Barry Rose WRF,
proceeding to the El Franco Lee Park then crossing back over Clear Creek
and beneath the Pearland Parkway bridge then turning south to the
University of Houston campus. This trail will include a San Jacinto historical
theme with points of interest signage and include one pedestrian bridge, and
is part of the regional San Jacinto Trail System celebrating Texas heritage.
Project 2019
Budget Budget
$10,700 $1,600,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $0 $0 $2,493 $15,704
PK1905 Recreation Center & Natatorium This project will be to provide a permanent stand-by generator that will
Generator & Improvements operate the RCN at full electrical capacity to be able to provide full
operational capacities in time of emergency for City staging or as a shelter.
Work will also include the removal of the drop ceilings adjacent to the
basketball courts and replace the VCT flooring with concrete stain and
existing accordion dividers with room dividers in the multi -purpose rooms
and the Zone.
Project 2019
Budget Budget
$1,000,000 $1,000,000
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$0
2023
$0
Parks Total 2019 0 & M Impact
Budget Budget 2019 2020 2021 2022 2023
$1,010,700 $2,600,000 $0 $0 $0 $2,493 $15,704
121
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Facility Projects
FA1404
Orange Street Service Center
Phase 1
The original project was to be completed in two parts, renovation of the old
EMS building as a Field Operations Support building (1A) and construction
of a new Administration building (1B), the project is being revised to
encompass the construction of one larger Administration building with
supporting parking and site improvements to house both the Public Works
administrative staff and Engineering and Capital Projects staff, as well as
demolition of the existing Administration and two-story Field Operations
Support buildings. Construction of the new Field Operations Support
building will be included in the larger Phase 2 Operations & Maintenance
building.
Project 7 2019 O & M Impact
Budget Budget - 2019 2020 2021 2022 2023
$11,335,290 $9,440,000 - $24,302 $87,209 $87,209 $87,209 $87,209
FA1501 Fire Station #8 Construction of approximately 16,000 - 18,000 sq. ft. fire station designed to
house two - 4 person engine crews, one - 4 person ladder crew and one - 2
person ambulance crew. The station will include dorm rooms, restrooms
with showers, a kitchen/dining area, a day room, a Captain's office and
Lieutenant's office, personnel and equipment decontamination areas and an
exercise room along with storage areas for bunker gear, medical supplies.
The facility will be constructed to 140 mph/3 second gust wind load
standards and will include four 80 feet deep drive through equipment bays
and adequate parking for full staffing on 24/7 operation.
Project 2019 0 & M Impact
Budget Budget 2019 2020 T 2021 2022 _I 2023
$13,420,800 $12,245,000 $0 $3,306,985 $3,379,819 $3,470,701 $3,564,309
FA1702 Facilities Assessment and The purpose of the Facilities assessment is to provide comprehensive
Maintenance Plan documentation and analysis of the City's existing built facilities. This would
include all relevant components such as HVAC/ Electrical/ Plumbing/
Flooring/ Ceilings/ Lighting upgrades/ Fixtures/ Insulation/ Structural. This
assessment plan is to evaluate all city facilities for building system lifespan
and condition. Information from this initial evaluation will assist with budget
forecasts for each year by having a clear understanding of building systems,
their age and forecast lifespan. The analysis will also be utilized for
prioritizing capital improvements and maintenance requirements, as well as
assisting with allocating operating budgets and on -going maintenance
schedules.
Project
Budget
$500,000
2019
Budget
$250,000
2019
$0
0 & M Impact
2020 2021 2022 2023
$0 $0 $0 $0
122
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project # Project Name Project Description
FA1803 Animal Services Shelter Construct a 7,000 sq. ft. animal shelter on 5 acres to house 16 staff
members, medical suite, dog runs to house 75 canine clients, and cat runs
for 120 felines, quarantine area for up to 10 quarantined animals, grazing
area needed for 20 livestock, adoption center with 2 rooms for possible
interaction observation, and laundry area.
Project 2019 O & M Impact
Budget Budget 2019 2020 2021 2022 2023
$4,841,000 $817,000 $0 $0 $0 $140,014 $473,658
FA1804 Fire Station #7 Construction of approximately 11,000 sq. ft. station to house one - 4 person
Engine Crew and one - 2 person EMS Ambulance Crew, and 2 trainees.
Station will include sleeping rooms, restrooms with showers, & a kitchen
dining area, a dayroom, a Lieutenant office, a station command office, &
exercise room. Equipment area will consist of 3-60 foot deep drive-thru
apparatus bays, a bunker gear storage area, medical supply storage, & an
EMS decontamination area. Also the station will support a separation of
dirty/clean areas for firefighter health, which will include showers & restroom
shower for decontamination. The facility will be located near the vacinity of
SH 35 and Bailey.
Project 2019
Budget d Budget
$8,329,000 $5,620,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $956,550 $1,486,163 $1,276,613 $1,318,191
FA1805 Shadow Creek Library Construct a permanent County Library facility on the west side consisting of
approximately 30,000 square feet, using space requirements and usage
information similar to that developed for the renovations to the Tom Reid
Library. Other features include: specialized chill water systems, exterior
security lighting, specialized library furnishings. Current planning has the
facility located on a 3.2 acre site owned by the City on Shadow Creek
Parkway west of Kirby Drive. However, there is potential for collaboration
with Brazoria County and Alvin ISD for different locations. Timing for the
project coincides with the expiration of the lease on the existing facility within
the shopping center at Broadway and Business Center Drive.
Project 2019
Budget Budget
$18,250,000 $1,760,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $0 $0 $0 $0
123
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project # Project Name Project Description
FA1901 Fiber Backbone To extend and build out the fiber network to reach all city facilities (buildings,
lift stations, parks, traffic signals, and water facilities). Funds in 2018 will
bring fiber from Broadway at Dixie Farm Road to the Longwood treatment
plant and interconnect the water towers to buildings that are in close
proximity to them.
Project 2019 O & M Impact
Budget Budget 2019 2020 2021 2022 2023
$650,000 $200,000 $0 $0 $0 $0 $0
FA1902 Orange Street Service Center Phase 2 of the Orange Street Service Center project is derived from a
Phase 2 Facilities Master Plan. A new Operations & Maintenance building with
parking is planned, housing field Superintendents and staff for Fleet
Maintenance, Water & Sewer, Streets and Drainage, and Parks
Maintenance. This building will replace and consolidate existing buildings
scattered throughout the site, provide covered storage for equipment and
material currently stored outdoors, and meet current wind storm
requirements and emergency shelter resiliency to operate as a shelter -in -
place facility for Public Works first responders in a disaster event. The
building will include locker rooms and showers, a training room, break room,
and kitchen.
Project 2019
Budget _ Budget
$26,250,000 $980,000
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$459,245
2023
$480,323
Facility Total 2019
Budget Budget
$83,576,090 $31,312,000
0 & M Impact
_ 2019 2020 2021 2022 2023
$24,302 $4,350,744 $4,953,191 $5,433,782 $5,923,690
124
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Street Projects
TR0601
Project
Budget
$15, 568, 303
Mykawa Road Widening - BW8 to
FM 518
2019
Budget
$2,360,000
Construct approximately 3 miles of 4-lane concrete curb and gutter divided
boulevard section roadway, including storm sewers, outfalls and detention,
traffic signals and related items. Data from previous efforts will be
incorporated into the design process. This project will require full
environmental assessment and ROW acquisitions along the alignment.
Installation of approximately 11,000' of fiber from FM 518 to intersection at
Brookside Rd. Funding is an 80/20 split with TxDOT and TxDOT will let and
construct project.
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$86,560
2023
$86,560
TR1201
Project
Budget
$36,621,000
Hughes Ranch Road (CR 403) -
Cullen to Smith Ranch Road
2019
Budget
$20,620,000 $0
2019
Reconstruction of CR403 from Cullen to Smith Ranch Road from a two lane
asphalt open ditch roadway to a four lane concrete curb and gutter boulevard
for a distance of 2 miles. The project includes approximately 12,000 LF of
Noise Barrier and installation of approximately 6,200' of fiber from Smith
Ranch Rd. to Bryan Court.
2020
$22,281
O & M Impact
2021
$89,125
2022 2023
$89,125 $89,125
TR1405
McHard Road Extension (Mykawa
Road to Cullen Parkway)
Project 7 2019
Budget Budget
2019
$50,310,081 $27,940,000 1 $0
The extension of approximately 3.5 miles of McHard Road, from Cullen
Parkway to Mykawa Road, consisting of a 4-lane, concrete, curb and gutter,
divided roadway with raised medians and underground drainage. Includes
storm sewers, outfalls and detention, five traffic signals at secondary
thoroughfares and major collectors, sidewalks, street lighting and
landscaping. This project will be coordinated with the McHard Road Trunk
Sewer extension and McHard Road Water Line Extension. Run
approximately 38,000' of fiber from Country Place Pkwy/Smith Ranch Road
to SH 35/ Main St.
0 & M Impact
2020 2021
$0 $31,746
2022 2023
$190,478 $190,478
125
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
TR1501
Project
Budget
$7,466,803
Smith Ranch Road Extension (CR
94) - Hughes Ranch Road to
Broadway
2019
Budget
$2,770,000
2019
$0
Expansion of Smith Ranch Road from 2-lane asphalt into divided 4-lane with
raised medians, concrete curb and gutter, storm sewer, and landscaping.
The project will include provisions for future water and sewer services along
both sides of the right of way. Limits are from Hughes Ranch Road, south
approximately 3,250 LF to 2,040 LF north of Broadway. Run approximately
9,500' of fiber from FM 518 to McHard.
2020
$15,023
O & M Impact
2021
$31,549
2022
$33,127
2023
$34,783
TR1602
Project
Budget
$3,810,000
Safe Routes to School
Improvements
2019
Budget
$420,000
As identified in the Safe Routes to School Plan, sites may include the
installation of sidewalks, crosswalk enhancements/improvements and other
traffic control improvements. City staff has prioritized and produced cost
estimates that include detailed scopes of work required and a project
schedule. Improvements planned for HC Carleston Elementary, Barbara
Cockrell Elementary and Junior High South. Challenger Elementary was
identified but will be done with Hughes Ranch Rd project.
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$0
2023
$0
TR1701
SH 288 Northbound Frontage
Road - CR 59 to FM 518
(Broadway)
Project —7 2019
Budget Budget
$5,885,000 $4,985,000
Construct a 3- lane concrete curb and gutter "urban" cross-section frontage
road from County Road 59 to FM 518 (Broadway), northbound only, to
include a U-Turn lane under the CR59 Overpass, to include access lane to
SH 288 main lanes. Project includes right of way acquisition for detention
pond. This project will include extension of City utilities under a separate
project to be defined at a later date.
0 & M Impact
2019 2020 2021
$0 $0 $0
2022 2023
$0 $0
126
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
TR1802 Multi -Modal Master Plan A long range mobility plan focusing on Trail Master Plan and sidewalk gap
analysis. Addressing future and existing needs for the City's trails, sidewalks
(ensuring ADA compliance), bicycle, pedestrian and wayfinding needs. The
Multi -Modal Master Plan is intended to incorporate the Trail Master Plan and
Sidewalk Program to create a continuous, safety -oriented system of
sidewalks, bikeways, greenways, and trails in and around the City.
Project
Budget
$400,000
2019
Budget
$400,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $0 $0 $0 $0
TR1804 Broadway at Dixie Farm
Intersection Improvements
Project
Budget
$1,510,000
2019
Budget
$1,220,000
With the continuous development in the City, the result has been a change
on the traffic patterns and counts. This has resulted in intersections
encountering increasing traffic flows more than they were originally
constructed to handle resulting in increasing congestion and raising safety
concerns. The rapidly changing traffic patterns has resulted in a "reactive"
effort aimed at modifying intersection geometry or signalization to address
these conditions as they occur. The 2015 Traffic Management Plan identifies
short term intersection improvements throughout the city. Broadway at Dixie
Farm dual left turn lanes in all directions is a high priority intersection.
0 & M Impact
2019 2020 2021 2022 2023
$0 $0 $0 $0 $0
Streets Total 2019
Budget Budget
$121,571,187 $60,715,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $37,305 $152,420 $399,289 $400,945
127
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Water Projects
WA1601
Project
Budget
$7,155, 848
McHard Rd. Water Line Phase II -
Cullen Parkway to Mykawa Road
2019
Budget
$7,039,858
2019
$1,000
Phase II of the transmission line extends from Cullen Parkway to Mykawa
Road a total of approximatley 17,500 linear feet. This portion of the project
is timed to coincide with Right of Way approval and acquisition for the
McHard Road project.
2020
$1,000
O & M Impact
2021
$1,000
2022
$1,000
2023
$1,000
WA1605 Surface Water Plant
Project
Budget
$163,750,000
2019
Budget
$21,000,000
2019
$65,861
Pilot testing, design, and construction of a pre -sedimentation basin, 10 MGD
Surface Water Treatment Plant and associated distribution system. This
project will treat raw water from the Gulf Coast Water Authority (GCWA)
canal for distribution throughout the City's water system. The plant will be
located on City property on CR48 south of CR59, which is adjacent to the
GCWA canal. Pilot testing will begin in FY2018 followed by design and
construction. The project is scheduled to be completed over a five year
period with new capacity available by 2022/2023. Phase 1 of the distribution
system is planned to include 24" - 36" pipelines from the Surface Water
Plant to the FM 521 and FM 1128 corridors. Installation of fiber to serve the
City's SCADA system.
2020
$266,901
O & M Impact
2021
$251,704
2022 2023
$1,003,342 $3,341,140
WA1701
Project
Budget
$4,000,000
FM 521 Ground Storage Tank
Expansion
2019
Budget
$3,500,000
Installation of an estimated third ground storage tank (estimated to be 1 MG)
and related piping and controls to provide additional storage and redundancy
at the Far Northwest Water Treatment Facility. Includes a 3,600' run of
conduit and fiber to connect the plant to the fiber located on Shadow Creek
Parkway.
2019
$1,000
2020
$1,000
O & M Impact
2021
$2,500
2022 2023
$2,500 $2,500
128
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
WA1803 FM 1128 16" Water Line - Bailey to Install approximately 5,300 feet of water line along FM 1128 (Manvel Rd)
CR 100 from Bailey Rd. to CR100. The timing of this project is developer driven and
the city cost is for line oversizing only, not 100% of the estimated cost.
Project
Budget
$125,000
2019
Budget
$125,000
2019
$0
2020
$1,000
O & M Impact
2021
$1,000
2022
$1,000
2023
$1,000
WA1804 CR 100 16" Water Line - Veterans Install approximately 13,200 feet of water line along CR 100 from Veterans
Dr to FM 1128 Dr. to FM 1128 (Manvel Rd). The timing of this project is developer driven
and the city cost is for line oversizing only, not 100% of the estimated cost.
Project 2019
Budget d Budget
$250,000 $250,000
0 & M Impact
2019 2020 2021 2022 2023
$0 $1,000 $1,000 $1,000 $1,000
WA1805 Veterans Dr. 16" Water Line -
Bailey Rd. to CR 128
Install approximately 5,300 feet of water line on Veterans Dr. from Bailey Rd,
south to CR 100 and continue an additional 5,300 feet with a line from CR
100 to CR 128. The timing of this project is developer driven and the city
cost is for line oversizing only, not 100% of the estimated cost.
Project I 2019 0 & M Impact
Budget Budget 2019 2020 2021 2022 2023
$225,000 $225,000 $0 $1,000 $1,000 $1,000 $1,000
129
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
WA1901 Bailey Water Plant Improvements Elevated levels of organic manganese and iron cause taste, odor and
appearance issues though the water product itself remains safe for
consumption. The 1st phase of this project installed a distribution line at the
facility that improved water quality by providing adequate water flow within
the tank. The 2nd phase of this project includes the installation of a 'green
sand' filter that will chemically bond with manganese and iron for removal.
The well will then be able to be utilized for system water quality
maintenance. Included in this project will be the installation of a new 1 MG
concrete ground storage tank to replace the existing welded steel tank.
Project 2019 O & M Impact
Budget Budget 2019 2020 2021 2022 2023
$4,860,000 $4,240,000 $0 $76,000 $76,000 $77,500 $77,500
WA1902 Underground Piping Infrastructure Replace significant portions of aging large diameter water conveyance pipe
at Water Production Facilities located at water production facilities. This program will inspect each of the
10 facilities and make recommendations for the design and replacement of
failing piping iwthin each facility (In 2019 Shadow Creek Water Facilities, in
2020 Garden Road and Cullen Blvd Water Facilities, in 2021 Southdown and
Country Place Water Facilities, in 2022 Kirby Water Facilities, and in 2023
Green Tee Water Facilities.
Project
Budget
$1,250,000
2019
Budget
$250,000
2019
$0
0 & M Impact
2020 2021 2022 2023
$0 $0 $0 $0
WA1903 Transite Pipe Water Line Replace approximately 63 miles of failing Transite pipe water lines (over 30
Replacement Program years old) in the City with PVC water lines. The program will replace the
water line infrastructure in the following locations over a period of years -
Corrigan, Sommersetshire, Country Place, Green Tee, Westminster,
Brookside Acres, Shadycrest, Creek View, Parkview, Wood Creek, Heritage
Green, Clear Creek Estates, and Southdown subdivisions. FY19: Corrigan
South and Heritage Green, FY20: Corrigan North, FY21: Country Place,
FY22 & FY23: Southdown
Project I 2019 0 & M Impact
Budget Budget 2019 2020 2021 2022 2023
$17,000,000 $1,000,000 $0 $0 $0 $0 $0
130
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
WA1904 Southdown Plant Ground Storage Removal and replacement of existing 140,000 gallon bolted ground storage
Tank Replacement tank. Project includes the removal of the hydro -tanks and supply variable
frequency drives for the pumps. Estimated to replace with a 250,000 welded
steel tank.
Project
Budget
$945,000
2019
Budget
$145,000
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$0
2023
$0
WA1905 Shadow Creek Ranch Park Re -
Use Waterline (Reflection Bay Dr
to Kingsley Dr)
Project d
Budget
$1,545,000
2019
Budget
$245,000
2019
$0
This waterline will convey Type I re -use water for irrigation of the Shadow
Creek Ranch Park facility. The Reflection Bay Water Reclamation Facility
Expansion project anticipated this need, and the non -potable water facility
and storage was sized to provide adequate capacity and pressure. The
water line will follow the shared use trail alignment along Clear Creek.
0 & M Impact
2020 2021
$0 $0
2022
$0
2023
$0
WA1906 Water Quality Program
Project
Budget
$3,300,000
2019
Budget
$350,000
As the City has developed there are areas where dead end waterlines have
been identified that need to be extended looped/connected to other water
system mainlines. These areas are also being confirmed by the City's water
system model. These connections will assist in enhancing water quality and
maintenance in the system by removing these areas and increasing looping
and redundancy.
0 & M Impact
2019 2020 2021
$0 $0 $0
2022
$0
2023
$0
Water Total
Budget
$204,405,848
2019
Budget
$38,369,858
0 & M Impact
2019 2020 2021
$67,861 $347,901 $334,204
2022 2023
$1,087,342 $3,425,140
131
Project #
Project Name
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project Description
Waste Water Projects
W W 1406
McHard Rd Trunk Sewer (Garden
to Southdown WWTP)
Install, along McHard Rd, approximately 4,500 feet of 24" trunk sewer from
Cullen to Southdown WRF (completed by Developer Agreement with Lake
Park Subdivision); 5,800 feet of 18" trunk sewer from Cullen to Max Road;
and approximately 4,000 LF of 15" trunk sewer from Max Road to Garden
Road.
Project
Budget
$6,122,761
2019
Budget
$1,990,000
0 & M Impact
2019 2020 2021
$0 $0 $0
2022 2023
$0 $0
WW1901 Lift Station Program
This project consists of a major rehabilitation of the existing lift station, now
30 plus years into it service life. Work will include structural rehabilitation of
the wet well, replacement of existing old style Gorman Rupp self -priming
pumps with new more efficient submersibles mounted to guide rails,
replacement of old style electrical controller cabinets and the addition of
SCADA fiber and Ethernet switches for automated reporting. Following is
the schedule of lift stations to be replaced FY19: Riverwalk; FY20: Royal
Oaks; FY21: Sunset Meadows
Project
Budget
$2,800,000
2019 O & M Impact
Budget 2019 2020 2021 2022 2023
$560,000 ($8,200) ($8,200) ($8,200) ($8,200) ($8,200)
WW1902 Sanitary Sewer Rehabilitation
Inflow and infiltration program to rehabilitate failing sanitary collections
system over thirty years of age in the following areas over a period of years
North Corrigan Subdivision, Sommersetshire, Country Place, Green Tee,
Brookside Acres, Shadycrest, Creek View, Parkview, Woodcreek, Heritage
Green, Clear Creek Estates, and Twin Creek Woods.
Project
Budget
$19,000,000
2019
Budget
$1,500,000
0 & M Impact
2019 2020 2021
$0 $0 $0
2022 2023
$0 $0
132
SUMMARY OF CAPITAL PROJECTS
FY 2019 ADOPTED BUDGET
Project # Project Name Project Description
WW1903 Cullen Regional Lift Station Odor Remove and replace existing discharge piping and install an odor control unit
Control & Rehabilitation on the regional lift station. This unit is designed to pull a vacuum and
process the hazardous and corrosive gasses such as Hydrogen Sulfide,
Methane Gas and Carbon Monoxide generated by these atmospheric
conditions in the wastewater collections system. Due to the corrosive nature
of the gases the discharge piping in interior and exterior needs to be
replaced.
Project
Budget
$610,000
2019 O & M Impact
Budget 2019 2020 2021
$610,000 $0 $0 $0
2022
$0
2023
$0
WW Total 2019
Budget Budget
$28,532,761 $4,660,000
2019 2020
($8,200) ($8,200)
O & M Impact
2021
($8,200)
2022
($8,200)
2023
($8,200)
Grand Total 2019
Budget Budget
0 & M Impact
2019 2020 2021 2022 2023
$444,984,622 $139,756,858 $83,963
$4,727,750 $5,431,615 $6,919,206 $9,761,779
133
THIS PAGE INTENTIONALLY BLANK
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for specific revenues that are legally restricted for particular
purposes. A description of the individual Special Revenue Funds follows and the budget schedules can be
found following this document.
Hotel/Motel Occupancy Tax — A fund created to account for hotel/motel occupancy tax revenue.
Court Security — Article 102.017 of the Code of Criminal Procedures allows a city to collect, when a defendant is
convicted, a $3.00 fee. A fund designated by this article is created to govern this collection and the money may only be
used for the purpose of providing security services for buildings housing a municipal court.
Citywide Donation — A fund used to account for miscellaneous donations for all City Departments except the Parks and
Recreation Department.
Court Technology — Article 102.0172 of the Code of Criminal Procedures allows a city to collect, when a defendant is
convicted, a $4.00 fee. A fund designated by this article is created to account for this collection, which may be used only
to finance technological enhancements of the municipal court.
Street Assessment — Chapter 313 of the Texas Transportation Code, allows the city to levy assessments against
various persons and their property for the payment of a part of the cost of a portion of public improvements. A fund is
created to account for this collection, which is used for designated street improvements.
Park Donations — A fund used to account for special events donations and expenditures provided by the Parks &
Recreation Department and for the development of City parks.
Tree Trust — A fund created to account for tree trust donations.
Police State Seizure — A fund created to account for state seizure funds, which are used solely for law enforcement
purposes.
Federal Police — A fund created to account for federal seizure funds and can only be used to support activities that
result in further seizures.
Park and Recreation Development — A fund created to account for the development of parks with parkland dedication
fees.
Sidewalk — A fund created to account for resources designated for sidewalks.
Grant Fund — To account for all revenues and expenditures associated with federal, state and local grants, except
CDBG.
Community Development Block Grant (CDBG) — A fund used to account for revenues and expenditures associated
with the Federal Community Development Block Grant.
Traffic Improvement — A fund that accounts for resources to be used for traffic improvements based on traffic analysis.
Court Juvenile Management — Article 102.0174 of the Code of Criminal Procedures allows a city to collect up to a
$5.00 fee from each Class C misdemeanor conviction related to salaries and benefits for a Juvenile Case Manager. The
City charges a $5.00 fee for Class C misdemeanor convictions as well as a $1 Truancy fee, pursuant to Article 45.056
for the same.
Municipal Channel (PEG) — Fund created to account for the revenues and expenditures associated with equipment for
public -access television broadcasting under rules set forth by the Federal Communications Commission (FCC).
Regional Detention — A fund created to account for regional detention development.
Lower Kirby Urban Center — Fund created to account for the revenues and expenditures associated with the financing
agreements for infrastructure for the Lower Kirby management districts.
135
L
HOTEL/MOTEL OCCUPANCY TAX FUND
CONVENTION & VISITORS' BUREAU
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Hotel/Motel Occupancy Tax Fund is used to account for revenues realized from hotel occupancy taxes.
Local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the
administrative expenses for registering convention delegates, pay for tourism -related advertising and
promotions, fund programs that enhance the arts or pay for historic preservation or restoration projects, and
pay for sports related expenses pursuant to state law that will enhance tourism. By law, cities with populations
of less than 125,000 must spend at least 1% of hotel tax receipts on advertising, no more than 15% on art
programs and a maximum of 15% on historic preservation.
Pearland is home to eleven hotels, totaling 884 rooms: Best Western, Hampton Inn, La Quinta, The Courtyard
by Marriott, Comfort Suites, Hilton Garden Inn, Candlewood Suites, two Holiday Inn Express's, Sleep Inn &
Suites and Springhill Suites hotels.
Fiscal year 2019 revenue is anticipated to be $1,460,800 with occupancy tax revenue of $1,450,000 and total
expenditures of $1,530,225. The budget includes continued co-sponsorship of annual events, such as,
Pearland Art & Crafts on the Pavilion and Opry on the Square. It also includes the cost of office rental space at
Pearland Town Center, which acts as our Visitor Center. In fiscal year 2019, the CVB is planning a $500,000
contribution to the restoriation of a railroad depot in collaboration with the Pearland Historical Society and
Citizens Depot Committee. As a result of this restoration this railroad depot would become a museum and
event center. A new hotel, Home2Suites by Hilton, is set to open in January 2019 along the Hwy 288/Beltway
corridor.
Fund balance at September 30, 2019 is estimated to be $4,518,361.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
HOTEL/MOTEL OCCUPANCY TAX $ 1,421,958 $ 1,450,000 $ 1,590,000 $ 1,450,000
INVESTMENT EARNINGS 12,053 10,800 62,700 10,800
MISCELLANEOUS 25,284 19,436
TOTAL 1,459,296 1,460,800 1,672,136 1,460,800
EXPENDITURES
SALARIES & WAGES 283,183 285,791 286,846 295,643
MATERIALS & SUPPLIES 133,118 132,336 124,336 119,000
MISCELLANEOUS SERVICES 632,927 643,968 658,828 614,917
TRANSFERS 772 390,914 617,890 665
INVENTORY -
CAPITAL OUTLAY - - 500,000
TOTAL 1,050,000 1,453,009 1,687,900 1,530,225
REVENUES OVER (UNDER) EXPENDITURES 409,296 7,791 (15,764) (69,425)
FUND BALANCE - BEGINNING 4,194,254 4,536,668 4,603,550 4,587,786
FUND BALANCE - ENDING $ 4,603,550 $ 4,544,459 $ 4,587,786 $ 4,518,361
136
COURT BUILDING SECURITY FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
City Council adopted ordinance 812 on August 11, 1997 authorizing Municipal Court to collect a $3 fee from each
defendant found guilty of a misdemeanor. Pursuant to the Texas Code of Criminal Procedure, revenues
generated from this fee must be deposited into a special fund. The money collected may be used only to fund
court security and includes such items as metal detectors, surveillance equipment, security personnel, security
hardware, personnel security training, or other security measures. The revenues generated from this fee partially
cover the cost of a full-time Court Bailiff and one part-time Court Bailiff, in addition to operating costs.
In fiscal year 2017, a larger portion of the costs were needed to be funded by the General Fund as the Court
Security Fund is currently drawing down fund balance for annual expenditures. Court Efficiency (10% of time pay
fees) is also part of this fund.
The fund balance at September 30, 2019 is estimated to be $7,026.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
FINES & FORFEITURES $ 44,095 $ 48,500 $ 41,700 $ 43,500
INVESTMENT EARNINGS 30 30 200 200
TOTAL 44,125 48,530 41,900 43,700
EXPENDITURES
SALARY & WAGES 27,026 35,577 41,402 40,127
MATERIALS & SUPPLIES 2,854 1,726 3,062 3,529
EQUIPMENT REPAIR & MAINTENANCE 7,505 7,266 5,430 5,500
MISCELLANEOUS SERVICES 1,507 960 2,147 1,850
INVENTORY 10,000 10,000
TOTAL 38,892 55,529 62,041 51,006
REVENUES OVER (UNDER) EXPENDITURES 5,232 (6,999)
FUND BALANCE - BEGINNING 29,241 27,307 34,473 14,332
FUND BALANCE - ENDING $ 34,473 $ 20,308 $ 14,332 $ 7,026
(20,141) (7,306)
137
CITYWIDE DONATION FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Citywide Donation Fund is used to account for miscellaneous donations for all City Departments, except the
Parks and Recreation Department. Donations received for specific reasons or for specific departments shall be
spent for those purposes.
Fiscal year 2018 expenditures included a new vehicle for the Fire Mashall's Office and expenses for the Animal
Shelter. Planned expenditures for FY19 include stainless steel kennels and veterinary expenses for the Animal
Shelter.
The total fund balance estimated is $17,977 on September 30, 2019.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INVESTMENT EARNINGS $ 75 $ 100 $ 1,000 $ 1,000
MISCELLANEOUS DONATIONS 29,354 31,800 11,661 29,967
TOTAL 29,428 31,900 12,661 30,967
EXPENDITURES
MATERIALS & SUPPLIES - 16,100 4,638 13,646
BUILDING & GROUNDS 22,123 12,000 4,000 755
REPAIR & MAINTENANCE - 4,000 4,000
MISCELLANEOUS SERVICES 973 20,000 4,000 25,272
INVENTORY - - -
CAPITAL OUTLAY - 44,052 44,052 -
TOTAL 23,096 96,152 60,690 39,673
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
6,333 (64,252)
(48,029) (8,706)
68,379 77,678
74,712 26,683
$ 74,712 $ 13,426 $ 26,683 $ 17,977
138
COURT TECHNOLOGY FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
City Council adopted ordinance 989-1 on September 10, 2001 pursuant to the Texas Code of Criminal Procedure,
authorizing Municipal Court to collect a $4 fee from each defendant found guilty of a misdemeanor. The revenues
generated from this fee may only be used to fund court technology and includes such items as computer
equipment, imaging systems, electronic kiosks, docket management systems, and electronic ticket writers.
Expenditures include the annual fee to access law enforcement warrant data, court software annual maintenance
and internet service.
Beginning in FY 2018, a portion of the expenditures are needed to be funded by the General Fund as the
Court Technology Fund is currently drawing down fund balance for annual expenditures.
Fund Balance at September 30, 2019 is estimated to be $11,248.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
FINES & FORFEITURES $ 47,861 $ 60,000 $ 48,000 $ 50,000
INVESTMENT EARNINGS 6 10 2 3
TOTAL 47,867 60,010 48,002 50,003
EXPENDITURES
MATERIALS & SUPPLIES 1,481
EQUIPMENT REPAIR & MAINTENANCE 52,399
MISCELLANEOUS SERVICES 10,686
INVENTORY 2,239
55,000
6,777
3,894
40,000 25,000
9,557 9,277
TOTAL 66,805 61,777 49,557 38,171
REVENUES OVER (UNDER) EXPENDITURES (18,938) (1,767) (1,555) 11,832
FUND BALANCE - BEGINNING 19,909 5,220 971 (584)
FUND BALANCE - ENDING $ 971 $ 3,453 $ (584) $ 11,248
139
STREET ASSESSMENT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
City Council adopted an Ordinance pursuant to Chapter 313 of the Texas Transportation Code, authorizing the
City to levy assessments against various persons and their property for the payment of a portion of the cost of
public improvements. In fiscal year 2012, the City ordered improvements and levied assessments for Business
Center Drive, from Broadway south to County Road 59. Landowner assessments total $2,484,917, excluding
interest. Assessments mature and become due and payable upon the earlier of: within thirty days of a sale of all
or portion of the property or upon the filing of any plat or application for a permit with the City for the development
of the property.
The Pearland Economic Development Corporation (PEDC) funded a portion of the construction of the roadway
improvements and the City entered into a reimbursement agreement with PEDC to reimburse with the road
assessments collected plus the interest collected by the City up to the amount PEDC paid towards the
construction. As the funds are received, the City then transfers them to PEDC.
Since 2012, the City has collected $1,240,
$1,244,779 due, excluding interest.
Since the City does not know when the sale
reflects no activity.
138 in assessments, leaving a balance at September 30, 2018 of
or the development of the property might occur, the FY 2019 budget
FY 2017
ACTUAL
FY 2018 FY 2018 FY 2019
ORIGINAL YEAR END ADOPTED
BUDGET AMENDED BUDGET
REVENUES
INVESTMENT EARNINGS
STREET ASSESSMENTS
TOTAL
EXPENDITURES
INTERFUND TRANSFER
TOTAL
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
$ 57,308 $
57,308
57,308
57,308
0
0
0 0
$ 0 $ 0 $ 0 $ 0
140
PARK DONATIONS FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Park Donations Fund was created to account for donations and sponsorships made in support of Parks
and Recreation Department events and programs. In accordance with the established Ordinance, the fund is
also used to account for the receipt and use of donation collections through water bill statements, which
beginning fiscal year 2015, are used to fund the Parks Forever Foundation. Sponsorship funds are allocated
to specific events/programs/facilities as identified with the sponsorship agreement.
Fiscal year 2018 expenditures included special events and the TAAF Winter Games of Texas.
In fiscal year 2019 planned expenses are for special events across the Parks programs.
Fund balance at September 30, 2019 is estimated to be $63,878.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INVESTMENT EARNINGS $ 157 $ 200 $ 1,600 $ 2,000
DONATIONS 855 1,000 1,000 1,000
SPONSORSHIPS 100,449 125,000 105,000 125,000
TOTAL 101,461 126,200 107,600 128,000
EXPENDITURES
ADMINISTRATION 14,506 18,500 18,500 16,000
RECREATION 3,500
ATHLETICS 20,000
SENIOR CENTER EVENTS 4,384 1,500 1,500 1,500
SPECIAL EVENTS 88,345 95,000 140,000 105,000
RECREATION OPERATIONS 4,000
TOTAL 107,235 135,000 167,500 122,500
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
(5,774) (8,800)
(59,900) 5,500
124,052 141,613 118,278 58,378
$ 118,278 $ 132,813 $ 58,378 $ 63,878
141
TREE TRUST FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Tree Trust Fund was created for the purpose of purchasing, growing, and/or maintaining trees and
associated plants within the City limits. Funds for tree trust donations are from developers who cannot mitigate
for trees they have taken down for development. The fee is determined by a tree survey and how many caliper
inches they have to mitigate. Funds can be used to plant and replace trees in City right-of-ways and in City parks.
Fiscal year 2018 expenditures include $12,000 for new development and/or the replacement of damaged trees.
Fiscal year 2019 includes money for the planting of trees, tree trimming, and a tree grant program.
Fund balance at September 30, 2019 is estimated to be $370,267.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
TREE TRUST $ 137,300 $ $ 275,615 $
INVESTMENT EARNINGS 53 40 5,500 7,800
TOTAL 137,353 40 281,115 7,800
EXPENDITURES
MAINTENANCE -BUILDING AND GROUNDS 1,500 50,750
INVENTORY
CAPITAL OUTLAY 12,000 10,500
TOTAL 12,000 12,000 50,750
REVENUES OVER (UNDER) EXPENDITURES 137,353 (11,960) 269,115 (42,950)
FUND BALANCE - BEGINNING 6,749 74,095 144,102 413,217
FUND BALANCE - ENDING $ 144,102 $ 62,135 $ 413,217 $ 370,267
142
POLICE STATE SEIZURE FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Police State Seizure Fund is used to account for state seizure funds, which are acquired through the sale of
seized property that is used in the commission of a crime. State seizure funds are to be deposited into a special
fund and used solely for law enforcement purposes, such as salaries and overtime pay for officers, officer
training, specialized investigative equipment and supplies, and items used by officers in direct law enforcement
duties.
In fiscal year 2018, funds were utilized to purchase undercover vehicles and the cost of informants. These costs
will continue through fiscal year 2019.
Fund balance at September 30, 2019 is estimated to be $191,897.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INVESTMENT EARNINGS $ 270 $ 240 $ 3,000 $ 4,000
SEIZURE FUNDS 28,913 - 37,283 -
MISCELLANEOUS -
TOTAL 29,183 240 40,283 4,000
EXPENDITURES
MATERIALS & SUPPLIES $ 7,517 $ 16,200 $ 16,200 $ 16,200
REPAIR & MAINTENANCE 4,980
MISCELLANEOUS 23,125 21,000 21,000 21,000
TOTAL 35,622 37,200 37,200 37,200
REVENUES OVER (UNDER) EXPENDITURES (6,438) (36,960) 3,083 (33,200)
FUND BALANCE - BEGINNING 228,453 219,640 222,014 225,097
FUND BALANCE - ENDING $ 222,014 $ 182,680 $ 225,097 $ 191,897
143
FEDERAL POLICE FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Federal Police Fund is used to account for seizure funds received from the U.S. Attorney General's Office.
Federal seizure funds are used to support community policing activities, training, and law enforcement
operations calculated to result in further seizures and forfeitures. These include activities to enhance future
investigations, including payments to informants, reward money, law enforcement training, and the purchase of
equipment such as body armor and firearms.
In fiscal year 2018 there were no expenses in this account. There are no planned expenses for fiscal year 2019.
Fund balance at September 30, 2019 is estimated to be $159,857.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
POLICE DRUG REVENUE $ 53,510 $ - $ 33,080 $ 75,000
INVESTMENT EARNINGS 15 10 1,000 1,200
TOTAL 53,525 10 34,080 76,200
EXPENDITURES
CAPITAL OUTLAY 10,673
TOTAL 10,673
REVENUES OVER (UNDER) EXPENDITURES 42,852
FUND BALANCE - BEGINNING 6,726
FUND BALANCE - ENDING
10 34,080 76,200
7 49,577 83,657
$ 49,577 $ 17 $ 83,657 $ 159,857
144
PARK DEVELOPMENT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
Pursuant to the Unified Development Code, new development either must dedicate parkland or pay the City a fee
in lieu of parkland. The City had thirteen parkland areas or zones, which were pared down to three zones upon
Council approval in May 2016. Fees, when paid, are identified by zone and use of the funds must be spent within
that zone or on expenditures at a Community Park, which serve the entire City.
Fiscal year 2018 major expenditures included improvements at the Recreation Center for the replacement of the
running track. Additional transfers went towards the new Delores Fenwick Nature Center. In fiscal year 2019
major expenditures will be at community parks that benefit all residents. These projects include Centennial Park
playground fall zone and splash pad repairs, Recreation Center and Natatorium improvements, and Southdown
Park splash pad updates. Zone projects include Corrigan playground replacement, Hyde Park shade structure
replacement, and the replacement of the fall zones at Woody and Zychilinski Park.
Estimated fund balance as of September 30, 2019 is $283,094.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
PARKLAND FEES/DONATIONS $ 38,492 $ 120,000 $ 848,059 $ 120,000
INTEREST INCOME (3,079) 3,420 15,500 18,000
TOTAL 35,413 123,420 863,559 138,000
EXPENDITURES
BUILDING & GROUNDS $ - $ $ - $ 28,240
CAPITAL OUTLAY - 134,495 720,914
TRANSFERS OUT 510,000 555,000
TOTAL 510,000 689,495 749,154
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
(474,587) 123,420
174,064 (611,154)
1,194,771 740,171
720,184 894,248
$ 720,184 $ 863,591 $ 894,248 $ 283,094
145
SIDEWALK FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
Per City Ordinance, sidewalks are to be installed when development occurs. However, in certain instances when
the City knows that future streets and roadways will be constructed, the City accepts payment in lieu of installation
of sidewalks. Thus, the Sidewalk Fund is used to account for revenues and expenditures associated with the
installation of these sidewalks. The cost per square foot is $7.00 and changes to reflect the City's current contract
price at any given time. The City then uses these monies to install the sidewalks once the roadway is complete.
Specific sidewalk locations identified with the original payments will be constructed out of the City's General Fund
annual sidewalk program, when identified for construction.
Fiscal year 2018 revenues are projected at $105. Expenditures in FY 2019 are $4,220 to be used for the Mykawa
Road construction. Fund balance at September 30, 2019 is estimated to be $7,173.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INTEREST INCOME $ 10 $ 5 $ 50 $ 5
SIDEWALK REVENUE 286 5,000 55 5,000
TOTAL 296 5,005 105 5,005
EXPENDITURES
INTERFUND TRANSFERS 4,220
OTHER EXPENSES 11,520
TOTAL 11,520 4,220
REVENUES OVER (UNDER) EXPENDITURES (11,224) 5,005 105 785
FUND BALANCE - BEGINNING 17,507 5,997 6,283 6,388
FUND BALANCE - ENDING $ 6,283 $ 11,002 $ 6,388 $ 7,173
146
GRANT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Grant Fund is used to account for revenues and expenditures associated with federal, state and local
grants.
The FY 2018 Grant Fund expenditures totalled $654,311. These included $268,896 from a two-year Victims of
Crime Act (VOCA) grant from the Office of the Governor - Criminal Justice Division (CJD) and $12,150 in
funding for local High -Intensity Drug Trafficking Area (HIDTA) task force activities. An Emergency Management
Performance Grant (EMPG) from the Texas Division of Emergency Management (TDEM) provided the Fire
Department with matching funds for emergency preparedness staffing in the amount of $42,891, and the City
spent $200,000 in grant funds towards the completion of Phase II Trail Connectivity, awarded by the Texas
Parks & Wildlife Department. The State also provided the City with grant funding in the amount of $102,135 for
rifle -resistant body armor. A grant from the Houston -Galveston Area Council (HGAC) was used to fund $27,639
in new equipment for the Stella Roberts Recycle Center, currently being operated by Keep Pearland Beautiful.
Revenues equal expenditures for the FY 2018 Grant Fund at $654,311.
The FY 2019 budget for the Grant Fund is being set at $58,791, which includes revenues and expenditures for
two grants: $12,150 in continuing funding for local High -Intensity Drug Trafficking Area (HIDTA) task force
activities; and $46,641 in grant funding via the Texas Division of Emergency Management from its Emergency
Management Performance Grant (EMPG) program.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
GRANT REVENUE $ 337,829 $ 315,537 $ 654,311 $ 58,791
INTEREST INCOME 72 75
TOTAL 337,901 315,537 654,311 58,866
EXPENDITURES
SALARY & WAGES 103,464 315,537 323,937 58,791
MATERIALS & SUPPLIES 102,135
MISCELLANEOUS SERVICES 7,660 600
TRANSFERS
INVENTORY 3,340
CAPITAL OUTLAY 133,465 227,639
TOTAL 247,929 315,537 654,311 58,791
REVENUES OVER (UNDER) EXPENDITURES 89,972 0 0 75
FUND BALANCE - BEGINNING 57,721 51,340 147,692 147,692
FUND BALANCE - ENDING $ 147,692 $ 51,340 $ 147,692 $ 147,767
147
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Community Development Block Grant Fund is funded through annual allocations of Entitlement Jurisdiction
disbursements from the U.S. Department of Housing and Urban Development (HUD). Also known as CDBG, these
funds are restricted for use in providing programs, services and local infrastructure improvements that benefit low
and moderate income families.
FY 2018 CDBG expenditures totalled $773,440, and included housing rehabilitation, code enforcement activities
and various infrastructure improvements for public facilities and social service agencies. Some of the highlights
include a $20,000 HVAC replacement at the Knapp Senior Center, $20,000 for emergency rental and utility
assistance in the form of a subaward to the Pearland Neighborhood Center, and a $30,000 allocation to
Counseling Connections for Change for mental health counseling and a collaborative student services initiative
with Pearland Independent School District (PISD). Program administration expenditures totalled $67,706 and
unprogrammed/unspent funding for infrastructure improvements pending completion will be carried over for use in
fiscal year 2019.
The 2019 fiscal year allocation of CDBG funding totals $390,001. Of that amount, the City's available allocation for
general program administration is $78,000, which is 20% of the CDBG annual allocation for fiscal year 2019, and
the public services capped allocation totals $58,000 (15% of the total allocation). The remainder of funding,
$253,501, will be spent on urgent need housing rehabilitation due to Hurricane Harvey, and code enforcement of
low- to moderate -income target areas within the City of Pearland.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
GRANT REVENUE $ 575,035 $ 338,534 $ 773,440 $ 390,001
TOTAL 575,035 338,534 773,440 390,001
EXPENDITURES
SALARY & WAGES 38,960 93,091 92,994 54,405
MATERIALS & SUPPLIES 310,764 1,643 1,653 100
MISCELLANEOUS SERVICES 98,352 53,800 87,998 105,200
CAPITAL OUTLAY 126,959 190,000 590,795 230,296
TOTAL 575,035 338,534 773,440 390,001
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING $ $ $ $
148
TRAFFIC IMPROVEMENT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Traffic Improvement Fund accounts for resources for traffic improvements. Funds are collected as a
result of a traffic analysis performed for new developments. Traffic engineers analyze the proposed traffic
patterns and trips generated by the development and then estimate the costs of the improvements needed to
mitigate the impact the development has on the transportation system. For those improvements that cannot be
constructed at the time of development, the funds are received from the developer and held until the projects
can be incorporated into a City project.
Fiscal year 2017 negative is from an accrual back to 2016, but the actual payment occurred in FY 2018. Fiscal
year 2018 revenues total $8,200 and expenditures of $93,548 for CR48.
Anticipated fiscal year 2019 revenues total $7,500 with anticipated expenditures of $1,141 to be used for
Mykawa Road Extension. The fund balance at September 30, 2019 is estimated to be $604,288 of which,
$214,920 is for future expansion of County Road 58.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
MISCELLANEOUS $ 37,351 $ $ $
INTEREST INCOME 1,054 1,000 8,200 7,500
TOTAL 38,405 1,000 8,200 7,500
EXPENDITURES
MISCELLANEOUS SERVICES
INTERFUND TRANSFERS
TOTAL
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
(93,548) 93,548
44,800
1,141
(48,748)
93,548 1,141
87,153 1,000
(85,348) 6,359
596,124 527,829 683,277 597,929
$ 683,277 $ 528,829 $ 597,929 $ 604,288
149
COURT JUVENILE MANAGEMENT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The State of Texas has authorized the governing body of a municipality to collect a fee up to $5 from each Class C
misdemeanor conviction for the expenditures related to the employment of a Juvenile Case Manager. Pursuant to
the Texas Code of Criminal Procedure, Article 102.0174, revenues generated from this fee must be deposited into
a special fund.
This new fund began with the 2010 fiscal year. An increase in the fee from $1 to $4 for each Class C
misdemeanor conviction was approved via Ordinance 1404-2 on September 19, 2016 and an increase from $4 to
$5 per Class C misdemeanor conviction was approved via Ordinance 1404-3 on September 25, 2017 in order to
cover the costs related to the Juvenile Case Manager. There is also a $2 per conviction Truancy fee pursuant to
Article 45.056.
The fund balance at September 30, 2019 is estimated to be $21,857.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
FINES & FORFEITURES $ 50,537 $ 52,000 $ 59,000 $ 62,000
INVESTMENT EARNINGS 26 30 200 200
TOTAL 50,563 52,030 59,200 62,200
EXPENDITURES
SALARY & WAGES 49,585 53,456 53,265 56,354
MATERIALS & SUPPLIES 1,668 1,350 1,900 1,530
MISCELLANEOUS SERVICES 528 4,000 3,445 3,560
TOTAL 51,781 58,806 58,610 61,444
REVENUES OVER (UNDER) EXPENDITURES (1,218) (6,776) 590 756
FUND BALANCE - BEGINNING 21,729 18,586 20,511 21,101
FUND BALANCE - ENDING $ 20,511 $ 11,810 $ 21,101 $ 21,857
150
MUNICIPAL CHANNEL (PEG) FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Municipal Channel Fund was established in fiscal year 2012 to account for revenues and expenditures
associated with the City's Public, Education and Government (PEG) channel. The State legislature
approved a legislative bill (S.B. 1087) during the 2011 82nd legislative session that allows for municipalities
to receive 1 % of gross revenues, labeled "State Franchise Fee," on customer bills to fund capital
expenditures associated with public, education and government programming for the City's PEG channel.
The funds can only be used for capital purchases such as cameras, monitors, cables, microphones,
software programs or upgrades, computers, etc. Funds from the PEG fee are received quarterly.
Expenditures for fiscal year 2018 include studio camera, studio lighting, studio furniture, backdrops, video
stabilizer, video slider, and voice over recorder and mic. Additional funding for the City Hall Renovation is
also included.
Expenditures for fiscal year 2019 include office furniture, 360 video camera, DSLR camera, drone, servers,
and encoder. Fund balance at September 30, 2019 is anticipated to be $795,787.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
FRANCHISE FEES $ 287,603 $ 300,000 $ 270,000 $ 275,000
INVESTMENT EARNINGS 3,234 1,000 9,000 10,000
MISCELLANEOUS -
TOTAL 290,838 301,000 279,000 285,000
EXPENDITURES
MATERIALS & SUPPLIES 15,257 21,950 43,200 21,600
EQUIPMENT REPAIR & MAINTENANCE 14,197 24,300 24,300 24,300
MISCELLANEOUS SERVICES 5,666 10,000 10,000 10,000
INVENTORY 22,885 23,500 81,500 57,500
CAPITAL OUTLAY 53,459 45,000
TRANSFERS OUT 466,258 51,531 51,531
TOTAL 577,721 131,281 210,531 158,400
REVENUES OVER (UNDER) EXPENDITURES
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
(286,884) 169,719
68,469 126,600
887,601 616,698
600,718 669,187
$ 600,718 $ 786,417 $ 669,187 $ 795,787
151
REGIONAL DETENTION FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Regional Detention Fund accounts for regional detention development. A certain amount of capacity in a
regional detention facility is allocated to the watershed and a certain amount of capacity is reserved for future
detention needs based on new development. Developers can buy into the regional detention based on capacity
needs versus capacity available. The current regional detention pond program is based on five regional detention
ponds throughout the City. The City completed a regional detention study in September 2010, which proposed
various sub -regional detention ponds. Capacity from the pond would be purchased at a per acre feet fee based on
construction cost of the pond. The fee structure will help recover the cost to purchase the property, design and
construct the pond.
A total of $18,955 was transferred in fiscal year 2017 and $145,290 in 2018 to the Debt Service Fund toward
payment of debt for regional detention pond.
Since the City does not know when a developer may buy into the program, the budget reflects no activity for FY
2019.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
CHARGES FOR SERVICES $ 22,113 $ $ 141,552 $
INVESTMENT EARNINGS 580
EXPENDITURES
TRANSFERS OUT
TOTAL 22,113 142,132
18,955 145,290
TOTAL 18,955 145,290
REVENUES OVER (UNDER) EXPENDITURES 3,158 (3,158)
FUND BALANCE - BEGINNING 3,158
FUND BALANCE - ENDING $ 3,158 $ $ $
152
LOWER KIRBY URBAN CENTER FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
One of the City's priorities is the development of the Lower Kirby Urban Area that will encourage employment,
commerce, recreation, arts, entertainment and overall economic development.
The Lower Kirby Pearland Management District (LKPMD) was created as Spectrum Management District, a political
subdivision of the State of Texas, by a special act of the 80th Texas Legislature, effective June 2007. The name was
changed March 2012 to Lower Kirby Pearland Management District. The District operates in accordance with Chapter
3840 of the Texas Special District Local Code and Chapter 375 of the Local Government Code.
The Pearland Management District No. 1 was created as a political subdivision of the State of Texas under Chapter
3838 of the Texas Special District Local Laws Code.
In 2014 the City entered into Master Financing Agreements (R2014-117) with the Lower Kirby Pearland Management
District (LKPMD) and the Pearland Municipal Management District No. 1. The City and Districts, along with private
developers, would over time finance $48 million in infrastructure in the Districts. The City and Districts agree, on a case
by case basis, which infrastructure the City would advance funds in order to facilitate development. The Districts, based
on valuation on the ground, would reimburse the City through the sale of bonds when economically feasible; therefore,
activity is not expected annually. The Pearland Economic Development Corporation (PEDC) provides funding for the
projects to the City to advance to the Districts, so the City also has reimbursement agreements with the PEDC.
In 2014 the City entered into a financing agreement (R2014-119) in association with the Hooper Road Reconstruction
Project and Financing Agreement (R2014-25) associated with Regional Detention Facilities. In 2015, financing
agreements for Kirby Ditch Improvements (R2015-136 & R2015-203) and preliminary engineering for South Spectrum
Blvd. (R2015-147) and North Spectrum Traffic Signal (R2015-204) were approved. Financing agreements for Lower
Kirby TxDOT Ditch Acquisition (R2016-51) and an amendment to Hooper Road (R2016-40) were approved in 2016. In
2017 the City entered into financing agreements for South Spectrum West (R2017-37), Lower Kirby West Conveyance
Pond (R2017-93) and SH288 Waterline Connection & Lower Kirby Park Improvements (R2017-95).
Fiscal year 2017 ended the year with a negative fund balance, which will be corrected at fiscal year 2018 year-end.
Financing by District is as follows:
LKPMD PMMD
Regional Detention (R2014-25) 1,598,149 612,292
Hooper Rd (R2014-119 & R2016-40) 5,233,602
Kirby Ditch (R2015-136 & R2015-203) 1,919,796
South Spectrum (R2015-147) 119,462 94,676
North Spectrum (R2015-204) 250,000
LK TxDOT Ditch (R2016-51) 292,000 108,000
South Spectrum West (R2017-37) 1,228,378
LK West Conveyance Pond (R2017-93) 277,000
SH288 Waterline & LK Park Imp. (R2017-95) 1,189,000
$10,602,009 $ 2,320,346
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INTEREST EARNINGS $ $ $ 98 $
INTERGOVERNMENTAL 3,281,360 3,829,496
TOTAL 3,281,360 3,829,594
EXPENDITURES
INTERGOVERNMENTAL
TRANSFERS OUT
3,183, 526
350,124
3,829,735
TOTAL 3,533,650 3,829,735
REVENUES OVER (UNDER) EXPENDITURES (252,150) (141)
FUND BALANCE - BEGINNING
(252,150) (252,291)
FUND BALANCE - ENDING $ (252,150) $
$ (252,291) $ (252,291)
—J
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154
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for the financing of goods or services provided by one fund or
department to another fund or department on a cost reimbursement basis. The City of Pearland has two Internal
Service Funds.
Property/Liability Insurance Fund
Accounts for the activities of the City's property and casualty insurance.
Medical Self Insurance Fund
A Medical Self Insurance Fund which accounts for the accumulation of monies for the payment of medical claims.
Motor Pool Fund
A fund to provide for the maintenance and replacement of the city's vehicles and rolling stock.
155
PROPERTY/LIABILITY INSURANCE FUND
SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS
FY 2019 ADOPTED BUDGET
OVERVIEW
The Property/Liability Insurance Fund has been created to account for the activities of the City's property and casualty
insurance. Coverage includes general liability, law enforcement, public official and employees' liability, auto liability,
physical damage and multi -peril, mobile equipment, real and personal property, and windstorm coverage. The fund
not only accounts for the annual premiums but also accounts for insurance recovery funds on eligible claims.
Premiums for fiscal year 2019 total $1,284,862 which amounts to a $70,621 increase from FY18 projected premiums.
Fund balance at September 30, 2019 is estimated to be $142,603, which is above the policy minimum of three-year
average of paid claims.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
TRANSFERS $ 1,310,994 $ 914,181 $ 665,000 $ 1,333,275
INSURANCE RECOVERY 244,451 70,050 350,000 100,050
INTEREST 298 100 3,500 100
TOTAL 1,555,743 984,331 1,018,500 1,433,425
EXPENSES
SALARIES & BENEFITS 54,193 53,200 43,059 54,897
MATERIALS & SUPPLIES - 1,450 1,450 1,450
INSURANCE PREMIUMS 1,136,122 1,107,582 1,214,241 1,284,862
CLAIMS 71,700 75,000 175,186 100,050
CAPITAL OUTLAY - 31,100 31,100
TOTAL 1,262, 014 1,268, 332 1,465, 036 1,441,259
REVENUES OVER (UNDER) EXPENSES 293,729 (284,001) (446,536) (7,834)
BEGINNING NET ASSETS 303,244 434,095 596,973 150,437
ENDING NET ASSETS $ 596,973 $ 150,094 $ 150,437 $ 142,603
156
MEDICAL SELF INSURANCE FUND
SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS
FY 2019 ADOPTED BUDGET
OVERVIEW
The Medical Self Insurance Fund was created to account for the activities of the City's employee insurance.
The fund accounts for retiree and COBRA contributions, claims and coverage. In a self insurance fund, the
employer is ultimately responsible for all health care costs, and pays for those costs plus administrative fees.
For FY19 the City is budgeting for an increase in claims based on the total number of full-time eligible
employees, including vacant positions. This fund is projected to operate at a $18,001 surplus in FY19. As in
previous years, $25,000 has been budgeted for the Wellness Program. The estimated fund balance as of
September 30, 2019 is $2,621,739, or 33.8% of total expenditures.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INTEREST INCOME $ 2,870 $ 2,000 $ 19,956 $ 20,000
CONTRIBUTIONS - CITY 6,478,800 5,840,633 6,092,182 6,224,073
CONTRIBUTIONS - EMPLOYEE 1,052,786 1,480,072 1,102,261 1,249,775
RETIREE AND COBRA CONTRIBUTIONS 57,038 60,000 60,000 60,000
MISCELLANEOUS 201,280 197,829 197,829 211,432
TOTAL 7,792,775 7,580,534 7,472,228 7,765,280
EXPENSES
ADMINISTRATIVE FEES 918,520 1,042,833 1,020,340 1,045,962
CLAIMS 5,904,545 6,625,376 6,197,155 6,589,708
MISCELLANEOUS 86,971 90,471 123,037 111,609
TRANSFER OUT 500,000
TOTAL 7,410,037 7,758,680 7,340,532 7,747,279
REVENUES OVER (UNDER) EXPENSES 382,738 (178,146) 131,696 18,001
BEGINNING NET ASSETS 2,089,304 2,058,949 2,472,042 2,603,738
ENDING NET ASSETS $ 2,472,042 $ 1,880,803 $ 2,603,738 $ 2,621,739
NET ASSETS AS % OF EXPENSES
32% 25%
35%
34%
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
Number of Employees on Medical Insurance: 571 604 596 613
City -Paid Contributions per Employee: $ 11,346 $ 9,670 $ 10,222 $ 10,153
Employee -Paid Contributions: $ 1,844 $ 2,450 $ 1,849 $ 2,039
Total Contributions per Employee: $ 13,190 $ 12,120 $ 12,071 $ 12,192
Claims Paid per Employee: $ 10,341 $ 10,969 $ 10,398 $ 10,750
157
$9,000,000
$8,000,000
$7,000,000
$6,000,000
MEDICAL SELF INSURANCE FUND
SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS
FY 2019 ADOPTED BUDGET
$5,000,000
$4,000,000 —
$3,000,000 —
$2,000,000 —
$1,000,000 —
$0
$14,000
$12, 000
$10, 000
$8,000
$6,000
$4,000
$2,000
$-
Actual
o
Medical Self Insurance Fund
[ t
Actual Actual Original Amended Adopted
FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 FY 2019
1
1
Revenues • Expenses
Contributions vs Claims Per Employee
10
1
i
li
Actual Actual Actual Original Amended Adopted
FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 FY 2019
Total Contributions per Employee • Claims Paid per Employee
158
MOTOR POOL FUND
SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS
FY 2019 ADOPTED BUDGET
OVERVIEW
The Motor Pool fund is a new fund in FY19. The purpose of the Motor Pool Fund is to provide for the
maintenance and replacement of the city's 610 vehicles and pieces of rolling stock with an approximated value
of $22 million. Rather than making periodic large -dollar investments, the City makes annual contributions to
the Fund. In turn, the City then uses the balance in the Fund to pay for large -dollar investments. The Fleet
Maintenance Division is responsible for day-to-day operations within the fund.
The City is planning to take a phased approach in rolling out the Motor Pool Fund, starting with vehicle
maintenance and annual replacements in FY19. The fund will begin building a balance through periodic
transfers from operational funds, sale of vehicles, interest earnings and savings from operational expenses.
Eventually, all departments with vehicles will pay "Lease Fees" into the fund to support ongoing replacement of
vehicles and equipment.
FY 2018 FY 2018 FY 2019
FY 2017 ORIGINAL YEAR END ADOPTED
ACTUAL BUDGET AMENDED BUDGET
REVENUES
INTEREST INCOME $ - $ - $ - $ -
SALE OF PROPERTY 20,000
TRANSFER IN REPAIR & MAINTENANCE 2,162,484
TRANSFER IN LEASE PAYMENTS 1,536,756
TOTAL 3,719,240
OPERATIONAL EXPENSES
SALARIES & WAGES
MATERIALS & SUPPLIES
BUILDINGS & GROUNDS
REPAIR & MAINTENANCE
MISCELLANEOUS SERVICES
TOTAL
CAPITAL EXPENSES
436,651
39,500
36,000
1,640,833
9,500
2,162,484
SPECIAL EQUIPMENT 715,815
CONSTRUCTION EQUIPMENT 90,000
VEHICLES 730,941
TOTAL 1,536,756
REVENUES OVER (UNDER) EXPENSES 20,000
BEGINNING NET ASSETS
ENDING NET ASSETS $ $ $ $ 20,000
159
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COMPONENT UNITS
The City of Pearland has three entities that are considered component units of the City. They are the Pearland
Economic Development Corporation (PEDC), Pearland Tax Increment Reinvestment Zone #2 (TIRZ), and the
Development Authority of Pearland. The PEDC is the only entity that requires budget approval by the City. Thus, it
is the only component unit included in the Citywide summary.
A component unit is defined as a legally separate organization for which elected officials of the primary
government (the City) are financially accountable.
161
PEARLAND ECONOMIC DEVELOPMENT FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE
FY 2019 ADOPTED BUDGET
OVERVIEW
The Pearland Economic Development Corporation (PEDC) was created in 1995 by the voters under the Texas
Development Corporation Act of 1979. The Corporation is financed by sales tax of a half -cent. State law allows
the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the City.
The Board of Directors are appointed by and serve at the discretion of the City Council. City Council approval is
required for annual budgets and bonded debt issuance. The role of the Corporation is to provide guidance and
funding for the operations of the City's economic development program and provide business incentives to support
and promote the growth and diversification of the City's economic base.
Fund balance at September 30, 2019 is estimated to be $6,906,572.
FY 2018 FY 2018 FY 2019
FY 2017 Original Year End Adopted
Actual Budget Amended Budget
OPERATING REVENUES
Sales Tax $ 10,097,052 $ 10,752,972 $ 10,703,352 $ 11,131,486
Interest Income 137,874 110,000 317,000 86,895
Intergovernmental 1,946,914 12,000 2,987,000 12,000
Miscellaneous 496,239 475,000 475,000 500,000
TOTAL 12,678,078 11,349,972 14,482,352 11,730,381
OPERATING EXPENDITURES
Operating
Bond Payments
Inventory
Capital Outlay
Transfers Out
Incentives
Bond Proceeds
TOTAL
1,537,857
1,228,786
5,231
732,842
8,120,773
514,376
2,557,221
1,231,000
5,000
3,648,413
5,505,904
2,037,890
2,031,153
1,231,000
5,000
672,432
7,264,730
884,429
2,919,606
13,616,503
5,000
746,000
9,133,742
1,336,890
12,139,866 14,985,428 12,088,744 27,757,741
REVENUES OVER/(UNDER) EXPENDITURES 538,212 (3,635,456) 2,393,608 (16,027,360)
BEGINNING FUND BALANCE 20,002,112 20,365,619 20,540,324 22,933,932
ENDING FUND BALANCE $ 20,540,324 $ 16,730,163 $ 22,933,932 $ 6,906,572
162
Pearland Economic
Development Corporation
President, PEDC
Vice President, PEDC
Director of Marketing
Development Manager
Office Supervisor
PEARLAND ECONOMIC DEVELOPMENT CORPORATION FUND
GOALS
♦ Attract high -wage professional employment opportunities that diversify Pearland's economic base and facilitate
the expansion and retention of existing Pearland businesses. Design and execute effective marketing strategies
that ensure Pearland's place in the region as a cornerstone of future development.
♦ Support key capital improvement and transportation planning efforts to ensure that key high -impact road
projects are completed.
♦ Continue efforts to implement plans to develop the Lower Kirby Urban Center as Pearland's most intensive
mixed -use employment, residential and entertainment district. Ensure the recommendations in the Lower Kirby
Urban Center Master Plan and Implementation Strategy, including the regulatory framework and infrastructure
plans, support the long-term vision of a mixed use employment center.
♦ Actively pursue redevelopment and beautification efforts for continued improvement and investment in Pearland
with a special focus on the 288 corridor, Main Street, Old Townsite and Broadway. These efforts should improve
the appearance and enhance the image of Pearland to its citizens and to individuals outside the area.
♦ Coordinate a process to inform the development of a multi -use events center. Proceed with multi -use events
center development based on expressed public preferences and leadership consensus around funding and
operational dynamics.
♦ Continue to make organizational improvements that allow for the implementation of a consistent, quality
economic development effort able to implement initiatives essential for the long-term economic growth of the
community.
FISCAL YEAR 2018 ACCOMPLISHMENTS
♦ Opened 30 business attraction projects and conducted 34 visits with potential primary employers. Major
announcements included Endress+Hauser's 100,000 square foot Gulf Coast Regional Center facility in the
Lower Kirby District. Construction is scheduled to begin in early 2019. Endress+Hauser, a leader in the field
of measurement technology for industrial process engineering, manufactures instrumentation and devices and
provides solutions and services for more than 100,000 customers worldwide Endress+Hauser will initially
employ 100 workers, but they anticipate the hiring of additional workers in the next couple of years. The project
is expected to bring approximately $32 million in investment to the community. Other projects include Diamond
Bolt's new 10,000 square foot headquarter and distribution facility in Pearland. In addition, Lonza completed
construction in early 2018 on a 300,000 square -foot manufacturing facility - the largest dedicated cell -and -gene -
therapy manufacturing facility in the world in Pearland's Lower Kirby District in April 2018.
♦ Opened 10 business retention and expansion projects and conducted 73 visits with existing
employers. Announcements included Adient Medical's new 1,900 square foot office and R&D facility. WTC
Metal Fab (a division for West Texas Cooling) expanded its operations by acquiring an existing 9,000 square -
foot facility on Magnolia. Koza's acquired the former McCoy's Lumber located on S. Main Street - the 24,000
square foot building will be home to expanded manufacturing capabilities for Koza's. PEDC is also working
with CSI to expand their parking lot by 30 spaces to accommodate job growth at their facility.
♦ Opened 12 new development/redevelopment projects, including the development of a Hilton -branded Tru Hotel
and a conference center to be located in the Pearland Town Center. The Modern Green Ivy District project
continues to move forward and has constructed Promenade and South Spectrum streets. Continued work with
Modern Green on the design of the Ivy Park and amenities surrounding the Ivy detention pond (East
Conveyance Pond), including a trail, which will serve active and passive recreation needs of those who live,
work, or visit within the District.
♦ Continued the implementation of two beautification plans for the community: the 288 Master Plan and a City
Gateway plan. We continue to work with Brazoria County and TxDOT on coordinating our hardscape
enhancements in the Brazoria County section of the Hwy 288 Managed Lanes project. The next entryway
monument is planned for the east end of Broadway/FM518. The Landscape Architect has submitted
construction plans for permit review and the project is scheduled to be bid for construction before the end of
2018.
♦ The SH 35 Redevelopment Strategy & Streetscape project continues to move forward. The project has been
awarded and the contractor has started working on removing the brick pavers in the median starting at Beltway
8 and working their way south to McHard as part of the first phase. Phase II will include improvements between
McHard and Old Town Ditch, and Phase III will include improvements between Old Town Ditch and Broadway.
The time frame of the project is one year and is projected to be complete at the end of September 2019.
164
♦ Continued implementation of the 288 Corridor Master Improvements Plan, including working with Brazoria
County and TxDOT on coordinating our hardscape enhancements in the Brazoria County section of the Hwy
288 Managed Lanes project. This work includes the finalization of the landscaping construction plans for the
BW8, McHard Rd., T-ramp, and FM518 interchanges.
♦ Continued to work with the City and Management Districts on the development of regional detention for the
eastern portion of the Lower Kirby District, including acquisition of parcels for the project, nine of the thirteen
parcels have been acquired along the TxDOT draining ditch. Additionally the City has acquired property to be
used for a detention pond and has transferred it to the Lower Kirby Pearland Management District (LKPMD)
and Pearland Municipal Management District #1 (PMMD#1). Engineers continue to have discussions with
Harris County Flood Control.
♦ Continued implementation of the Pearland 20/20 Community Strategic Plan, including quarterly progress
meetings of the steering committee. An event center feasibility study was conducted to determine the type of
multi -use event center that would be most successful in Pearland and additional analysis is being conducted
on a potential indoor amateur sports facility for the community. Developed a Request for Proposals (RFP) to
identify qualified economic development consulting teams for the preparation of a new community economic
development Strategic Plan for the City of Pearland. A firm is expected to be selected by the end of 2018 or
early 2019.
FISCAL YEAR 2019 OBJECTIVES
♦ Recruit new primary employers to the community.
♦ Reach out to existing targeted primary employers to offer assistance, including expansion assistance, access
to local and state resources and regulatory compliance.
♦ Provide assistance to developers looking to make investments in our community.
♦ Continue to assist developers and prospective investors such as Ivy District in the Lower Kirby Area.
♦ Work with Lower Kirby Management District on the design and construction of South Spectrum Boulevard to
complete a four -lane boulevard roadway connection from SH 288 to Kirby Drive.
♦ Continue the implementation of the SH 35 Corridor Redevelopment Strategy catalyst projects to address
infrastructure needs, redevelopment potential, underdeveloped sites and market opportunities.
♦ Continue implementation of the SH 35 Redevelopment Strategy Catalyst #1, Northern Gateway Entrance and
Corridor Streetscape Improvements, by completing the construction of the entire project from Broadway to
BW8, including a gateway entry at Clear Creek and corridor aesthetics.
♦ Coordinate with the City of Pearland to work with the existing businesses on Mykawa Road for the
reconstruction of the roadway from Broadway to Beltway 8.
♦ Begin the development of a FM 518/Broadway development master plan. Issue a request for proposal, select
a consulting team and begin the study with an area of emphasis being the impact on the corridor of TXDOTs
proposed reconstruction project.
♦ Continue implementation efforts for the Pearland 20/20 Strategic Plan.
♦ Continue implementation of the community marketing campaign to increase awareness and promotion of
Pearland and its assets, including the development of a digital brand hub and establishing an implementation
including a media plan utilizing existing communication channels.
♦ Evaluate feasibility, including cost estimates, program plans and the identification of funding and partnership
types, for a potential indoor amateur sports facility in the community.
165
PEDC New Projects by Industry
OTHER
DEVELOPMENTS
MANUFACTURING/WAREHOUSE
ENERGY
BUSINESS/PROFESSIONAL SERVICES
LIFE SCIENCE
8
24
15
4
7
5
8
7
4
5 10 15 20 25 30
■ 2018 Actual ■ 2018 Target
PERFORMANCE MEASURES
FY 2016 FY 2017 FY 2018 FY 2019
Actual Actual Actual Target
Number of announced projects 14 10 10 10
Number of new projects 42 55 52 50
Number of visits 183 164 149 170
166
PEARLAND ECONOMIC DEVELOPMENT CORPORATION
DEBT TO MATURITY
Year Principal Interest Total
2018-2019 250,000 47,200 297,200
2019-2020 250,000 41,300 291,300
2020-2021 250,000 35,400 285,400
2021-2022 250,000 29,500 279,500
2022-2023 250,000 23,600 273,600
2023-2024 250,000 17,700 267,700
2024-2025 250,000 11,800 261,800
2025-2026 250,000 5,900 255,900
TOTAL $2,000,000 $212,400 $2,212,400
Series
Principal Amount
Outstanding
Series 2016
TOTAL
2,000,000
$2,000,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2019
2020
2021
❑ Principal
2022
2023
2024
❑ Interest
2025
2026
167
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CITY OF PEARLAND, TEXAS
COMPREHENSIVE FINANCIAL MANAGEMENT POLICY STATEMENTS
ADOPTED
SEPTEMBER 2011
Purpose
The Comprehensive Financial Management Policy Statements assembles all of the City's financial policies into one
document. These statements are the tools used to ensure that the City is financially able to meet its current and
future service needs. The individual statements contained herein serve as guidelines for both the financial planning
and internal financial management of the City.
Municipal resources must be wisely used to ensure adequate funding for the services, public facilities, and
infrastructure necessary to meet immediate and long-term needs. These policy statements safeguard the fiscal
stability required to achieve the City's objectives and ensure long-term financial health.
Objectives
A. To guide City Council and management policy decisions that have significant fiscal impact.
B. To employ balanced revenue policies that provide adequate funding for services and service levels.
C. To maintain appropriate financial capacity for present and future needs.
D. To maintain sufficient reserves so as to maintain service levels during periods of economic downturn.
E. To promote sound financial management by providing accurate and timely information on the City's
financial condition.
F. To protect the City's credit rating and provide for adequate resources to meet the provisions of the City's
debt obligations on all municipal debt.
G. To ensure the legal use of financial resources through an effective system of internal controls.
H. To promote cooperation and coordination with other governments and the private sector in financing and
delivery of services.
169
ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
Maintain accounting practices that conform to Generally Accepted Accounting Principles (GAAP) and comply with
prevailing federal, state, and local statutes and regulations. Provide for, prepare and present regular reports that
analyze and evaluate the City's financial performance and economic condition.
A. Accounting Practices and Principles
The City will maintain accounting practices that conform to Generally Accepted Accounting Principles (GAAP)
as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body
for units of local government. All City financial documents, except monthly interim financial reports, including
official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing
disclosures statements will meet these standards. Monthly interim financial reports are on a cash basis and will
be reported as budgeted. At year-end, the general ledger and financials will be converted to GAAP and GASB.
B. Financial and Management Reporting
1. Interim Financial Reports will be provided monthly to management and City Council that explain key
economic and fiscal developments and note significant deviations from the budget. These reports will be
distributed monthly by the end of each month for the prior month.
2. Quarterly, departments will report on program measures and indicators as compared to target and last year
to Finance. A quarterly report will be submitted to the City Manager, highlighting significant variations.
3. As an additional independent confirmation of the quality of the City's financial reporting, the City will
annually seek to obtain the Government Finance Officers Association Certificate of Achievement for
Excellence in Financial Reporting.
C. Annual Audit
1. Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an
annual financial statement prepared based on the audit. The audit shall be performed by certified public
accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement,
including the auditor's opinion, shall be filed within 180 days after the last day of the City's fiscal year. The
audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official
Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the
end of the fiscal year. The Director of Finance shall be responsible for establishing a process to ensure
timely resolution of audit recommendations.
2. Audit Committee
The Mayor shall appoint or confirm the audit committee, consisting of at least three members of the City
Council, with the Mayor being one of the members. The primary purpose of the audit committee is to assist
City Council and the City Manager in fulfilling oversight responsibilities for financial reporting, audit
processes, and effective internal control systems. The City shall maintain an Audit Committee Charter
which outlines the duties and responsibilities of the audit committee.
3. Annual Financial Disclosure
As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City will provide certain
annual financial information to various information repositories through disclosure documents or set of
documents that include the necessary information. This will include any periodic materials event notices as
required by the SEC.
D. Signature of Checks
Pursuant to the City Charter, all checks shall have two signatures, signed by the City Manager or Mayor and
countersigned by the City Secretary, or the City Treasurer, or one member of Council. City Treasurer is further
defined as the Director of Finance. Signatures shall be affixed on all City checks via facsimile signatures, either
with a signature plate used with a check signing machine or with a secure laser check printing system.
Component unit check signers are officers elected by the board, where applicable. Component unit's checks
shall also have two signatures.
E. Compliance with Council Policy Statements
The Financial Management Policy Statements will be reviewed bi-annually and updated, revised or refined as
deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may
be appropriate and required. Exceptions will be identified, documented, and explained to City Council and/or
the City Manager.
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II.
BUDGET AND LONG RANGE FINANCIAL PLANNING
A. Balanced Budget
The City Manager shall file annually, a structurally balanced budget for the ensuing fiscal year with City Council
pursuant to the prevailing state and local law. A structurally balanced budget is further defined as recurring
revenues funding recurring expenditures and adherence to fund balance policies. Short-term loans will be
avoided as budget balancing techniques.
B. Current Funding Basis (Recurring Revenues)
The City shall budget and operate on a current funding basis. Recurring expenditures shall be budgeted and
controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring
revenue sources to facilitate operations on a current funding basis.
C. Use of Non -Recurring Revenues
Non -recurring revenue sources, such as a one-time revenue remittance of fund balance in excess of policy can
only be budgeted/used to fund non -recurring expenditures, such as capital purchases or capital improvement
projects. This will ensure that recurring expenditures are not funded by non -recurring sources.
D. Tax Rate
The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet
effectively, and pay its debt.
1. Homestead Exemption
The City shall review the homestead exemption annually as part of the budget process. When the financial
health of the City's finances and economic and market conditions of the local economy justify, the City
Manager may recommend a change to the homestead exemption. In accordance with state statute, any
recommended change in the homestead exemption will be presented to Council for approval prior to July 1.
The total exemption percentage granted shall not exceed the state statute limitation.
2. Over -Age and Disabled Persons Exemptions
The City currently grants a $40,000 exemption for persons 65 or older and for disabled persons. This
amount shall remain stable during a period in which the City is considering increasing the homestead
exemption.
E. Pay As You Go Capital Projects
The transfer from the City's General Fund and the City's Utility Fund to fund pay-as-you-go capital projects will
be budgeted when financially feasible and when projects present themselves for funding. The transfer will be
based on the financial health of each fund with the long-term goal of adequately funding rehabilitation.
F. Revenue Estimating for Budgeting
1. In order to protect the City from revenue shortfalls and to maintain a stable level of service, the City shall
use a conservative, objective, reasonable and analytical approach when preparing revenue estimates. The
process shall include historical collection rates, trends, development, and probable economic changes. This
approach is intended to reduce the likelihood of actual revenues falling short of budget estimates and
should avoid mid -year service charges.
2. The City whenever possible, will seek outside sources of revenue, such as federal, state, and local grants,
in order to leverage local dollars.
3. Estimates from grant sources will be projected only to the specific date on which the entitlement will end.
4. The Utility Fund water and wastewater revenues will be budgeted based on the average
rainfall/consumption over the last three years, pursuant to the rate model. The City will anticipate neither
drought nor wet conditions.
G. Performance, Merit Pool, and Police Step Increases
The budget shall include an amount adequate to cover an overall average performance and merit pool, as well
as an amount for police step increases, as determined annually by the City Manager. This amount will be
calculated for each fund, based on budgeted salaries for the year, and will be placed in a Performance and
Merit Pool in each operating fund. In addition, funds may be budgeted when appropriate, to bring identified
jobs up to market salary rates.
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H. Budget Preparation
1. Department Directors have primary responsibility for formulating budget proposals. New or expanded
services should support City Council goals, City Manager priority direction and department goals.
Departments are charged with implementing them once they are approved.
2. All competing requests for City resources will be weighted within the formal annual budget process.
3. Actions on items that come up throughout the year with significant financial impacts should be withheld until
they can be made in the full context of the annual budget process and long-range plan, unless unforeseen
circumstances present themselves.
4. Every five (5) years at a minimum or sooner as may be necessary, the city will incorporate a service needs
review into the budget process to ensure the most efficient and effective use of resources.
5. Annually, the City will seek to obtain the Government Finance Officers Associate Distinguished Budget
Presentation Award. The Budget will be presented in a way that not only meets the criteria of the award,
but also clearly communicates the budget to the public.
I. Budget Management
The City Council shall delegate authority to the City Manager in managing the budget after it is formally
adopted by the City Council, including the transfer of funds within departments, between divisions, and between
departments. The City Manager may further delegate levels of authority for the daily operations of the budget.
Expenditures/expenses are legally adopted by the fund level. Expenditures/expenses should not exceed the
adopted budget, plus subsequent changes approved by the City Council.
J. Amended Budget
In order to preserve fund balances/ending balances based on projected revenues and expenditures/expenses
for the current fiscal year, City Council will amend the annual budget for all funds, excluding capital
improvements funds, as set forth in the projections. City Council will amend the current fiscal year budget
annually during the budget process.
K. Performance Measurement
Performance measures will be utilized and reported in department budgets. The City will maintain a
measurement system that reports trends and comparisons to targets and previous year as a management tool
to monitor and improve service delivery.
L. Operating Deficits
The City shall take immediate corrective action if at any time during the fiscal year expenditure and revenue re -
estimates are such that "net income" is lower than budgeted. Corrective actions include:
• Deferral of capital equipment purchases
• Deferral of pay -as -you go capital improvements
• Expenditure reductions
• Deferral of certain positions
• Hiring freezes
• Freeze merit increases
• Use of fund balance
• Use of volunteers
• Increase fees
• Reduce work hours with subsequent reduction in pay
• Eliminate positions which may require laying -off employees if there are no other vacant positions for which
they are qualified.
Short-term loans as a means to balance the budget shall be avoided.
The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit,
only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level.
M. Long -Range Financial Plans
1. The City shall develop and maintain a five-year Financial Forecast for each major operating fund, in
conjunction with the annual budget process. Major operating funds are as follows:
• General Fund
• Debt Service Fund
• Water/Sewer Utility Fund
• Economic Development Corporation
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2. The forecast should enable current services and current service levels provided to be sustained over the
forecast period. Operating impacts from completed capital improvement projects in the City's five -Year CIP
shall be included in the forecast. Commitments/obligations already made that require future financial
resources shall also be included.
3. The forecasts should identify impact to property taxes and utility rates.
4. Major financial decisions should be made in the context of the Long -Range Plan.
The forecast assesses long-term financial implications of current and proposed policies, programs, and
assumptions that develop appropriate strategies to achieve the City's goals. The forecast will provide an
understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained;
assess the level at which capital investment can be made; identify future commitments and resource demands;
and identify the key variables that may cause change in the level of revenue.
III.
REVENUES
Design, maintain and administer a revenue system that will assure reliable, equitable, diversified and sufficient
revenue stream to support desired City services.
A. Balance and Diversification in Revenue Sources
The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations
in any one source due to changes in local economic conditions, which may adversely impact that source.
B. User Fees - General Fund
1. For services that benefit specific users, the City shall establish and collect fees to recover the costs of those
services. Where services provide a general public benefit, the City shall recover the costs of those services
through property and sales taxes.
2. At a minimum, the City will strive to cover direct costs.
3. User fees should be reviewed, at a minimum, every two to three years and adjusted to avoid sharp
changes.
4. Factors in setting fees shall include, but not be limited to: market and competitive pricing, effect of demand
for services, and impact on users, which may result in recovering something less than direct, indirect and
overhead costs.
5. The City may set a different fee for residents versus non-residents.
6. User fees should be adopted by Council Ordinance and included in the Annual Fee Schedule.
C. User Fees - Enterprise Funds
1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover operating
expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay-as-you-go
funding for capital improvements, and provide adequate levels of working capital.
2. The City may set a different fee for residents versus non-residents.
3. The Five -Year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate
change considerations.
4. When necessary, the Five -Year Financial Plan (rate model) will be built around small rate increases
annually versus higher rate increases periodically.
D. One-Time/Unpredictable Revenue Sources
1. One-time, unpredictable revenue sources should not be used for ongoing expenses/expenditures.
2. One-time, unpredictable revenue sources will be used or one-time purchases such as increase in fund
balance requirements, capital equipment purchase, capital improvements, etc.
E. Revenue Collection
The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall
follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by
law for all delinquent taxpayers and others overdue in payments to the City.
Revenues actually received will be compared to budgeted revenues by the Director of Finance and any
variances considered to be material will be investigated. This process will be summarized in the monthly
financial report. (See Financial and Management Reporting.)
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F. Write -Off of Uncollectible Receivables
(excludes property taxes, court fines and warrant)
1. Receivables shall be considered for write-off as follows:
a. State statute authorizing the release of extinguishment, in whole or in part, of any indebtedness,
liability, or obligation, if applicable.
b. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been
taken.
2. Accounts shall be written -off annually near year-end. Upon approval, accounts will be forwarded to a credit
reporting agency.
3. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any
debt owed to the City.
IV.
EXPENDITURES
Identify services, establish appropriate service levels and administer the expenditure of available resources to
assure fiscal stability and the effective and efficient delivery of those services.
A. Maintenance of Capital Assets
Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at
sufficient level to protect the City's investment, to minimize future replacement and maintenance costs, and to
maintain service levels.
B. Periodic Program/Services Reviews
The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency
and effectiveness. Programs or services determined to be inefficient and/or ineffective shall be recommended
through the annual budget process to be reduced in scope or eliminated.
C. Purchasing
All City purchases of goods and services shall be made in accordance with the City's current Purchasing
manual.
V.
FUND BALANCE AND RESERVES
Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City's
credit worthiness as well as its financial position during emergencies or economic fluctuations.
A. General Fund Unrestricted Fund Balance
The City shall maintain the General Fund unrestricted fund balance equivalent to 2 months of recurring
operating expenditures, based on current year expenditures. If the fund balance exceeds this amount, funding
non -recurring expenditures in the following fiscal year may be used to draw down the balance.
B. Water/Sewer Unreserved Working Capital
The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue
shortfalls. A cash equivalent operating reserve will be established and maintained at 25% of the current year's
budget appropriation for recurring operating expenses.
The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating
expenses.
C. Use of Fund Balance/Working Capital
Fund balance/Working Capital shall only be used for emergencies, non -recurring expenditures/ expenses or
major capital purchases that cannot be accommodated through current year savings. Should such use reduce
balances below the level established as the objective for that fund, restoration recommendations will
accompany the request/decision to utilize said balances.
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D. Debt Service Fund Unrestricted Fund Balance
The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund
balance reserve as required by bond ordinances, whichever is greater.
E. Property/Liability Insurance Fund Unrestricted Fund Balance
The Property/Liability Insurance Fund accounts for uninsured and deductible claims for the City's property and
liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore the fund will maintain a
balance that approximates the prior average annual expense for the last three years, excluding extra -ordinary
expenses in the fund.
F. Employee Benefits Fund Unrestricted Fund Balance
The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be
determined during each budget year and the contributions adjusted accordingly. There is no minimum balance
for this fund.
G. Economic Development Corporation
As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a fund
balance of no less than 10% of budgeted sales tax revenues.
H. Water/Sewer Revenue Debt Coverage Reserves
Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is not issuing
additional debt and 1.4 times coverage in a year where debt is anticipated to be issued.
I. Bond Issuance Reserves
Debt service reserves should be maintained for each bond issue as required by bond covenants.
J. Contingency Fund
Pursuant to the City Charter, a provisions shall be made within the annual budget for a contingency fund in an
amount not more than seven percent of the total budget (General Fund) to be used in case of unforeseen items
of expenditure.
K. Fund Balance Classification
The governmental fund financial statements will present fund balances based on classifications that comprise a
hierarchy that is based primarily on the extent to which the City is bound to honor certain constraints on the use
of the financial resources within the governmental funds. The classifications used will be as follows:
• Nonspendable: Amounts that cannot be spent because they are either (a) not in spendable form or (b)
legally or contractually required to be maintained intact. Examples include Inventories, prepaid items, and
long-term receivables.
• Restricted: Amounts for which constraints have been placed on the use of resources either (a) externally
imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by
law through constitutional provisions or enabling legislation. Restricted fund balances include but may not
be limited to: Debt Service Reserves, Special Court Funds created by State Statute, Debt Service Funds,
Hotel Occupancy Tax, State and Federal Forfeitures/Seizures, Parkland, Detention, Sidewalk, Tree Trust,
and Park and City -Wide Donation revenues, University of Houston Fund, Unspent bond proceeds, Unspent
grant funds, Unspent Capital Lease proceeds, and Unspent funds received pursuant to funding, developer,
and/or TxDOT agreements.
• Committed: Amounts that can only be used for specific purposes pursuant to constraints imposed by formal
action of the City Council. These amounts cannot be used for any other purpose unless the City Council
removes or changes the specified use by taking the same type of action that was employed when the funds
were initially committed.
• Assigned: Amounts that are constrained by the City's intent to be used for specific purposes but are neither
restricted nor committed. In governmental funds other than the general fund, assigned fund balances
represents the amount that is not restricted or committed. This indicates that those resources are, at a
minimum, intended to be used for the purpose of that fund. Examples include: residual funds in all
governmental funds except the General Fund and outstanding encumbrances at year-end.
• Unassigned: Is the residual classification of the general fund and includes all amounts not contained in
other classifications. Unassigned amounts are technically available for any purpose.
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Commitment of Fund Balance:
• The City Council is the City's highest level of decision making authority and the formal action that is
required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance approved
by the City Council at a regular City Council meeting. The ordinance must either be approved or rescinded,
as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject
to the constraint may be determined in a subsequent period.
Assignment Fund Balance:
• The City Council has authorized the Director of Finance as the official authorized to assign fund balance to
a specific purpose pursuant to the guidelines.
Order of Expenditure of Funds:
• When multiple categories of fund balance are available for expenditure, the City would typically use
Restricted fund balances first, followed by Committed, and then Assigned, but reserves the right to
selectively spend from any of the categories, including Unassigned based upon the individual
circumstances.
VI.
CAPITAL EXPENDITURES AND IMPROVEMENTS
Annually review and monitor the state of the City's capital equipment and infrastructure, setting priorities for its
replacement and renovation based on needs, funding alternatives, and availability of resources.
A. Capitalization Threshold for Tangible Capital Assets
1. Tangible capital items should be capitalized only if they have an estimated useful life of 2 years or more
following the date of acquisition or significantly extend the useful life of the existing asset and cannot be
consumed, unduly altered, or materially reduced in value immediately by use and have a cost of not less
than $5,000 for any individual item.
2. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar
items (i.e.: desks, chairs, etc.).
3. To maintain adequate control over non -capitalized tangible items, items costing $1,000 - $4,999 will be
monitored, tagged, and tracked through the City financial software system.
4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship of public property.
B. Five -Year Capital Improvement Plan (CIP)
1. The City shall annually prepare a five-year capital improvement plan based on the needs for capital
improvements and equipment, the status of the City infrastructure, replacement and renovation needs, and
potential new projects. Capital projects are improvements or additions to the City's physical
plant/facilities/infrastructure and become a part of the City's asset inventory. Capital projects can be further
categorized into land, buildings, improvements other than buildings, and infrastructure, which includes
roads, sidewalks, bridges, utility lines, physical plants, etc. Capital costs typically consist of preliminary
design, final design, and construction, and may involve the acquisition of land or easements. For purposes
of the CIP Plan, a Capital Improvement Project should generally exceed a cost of $100,000.
2. For the most part, projects in the CIP should be based upon master plans or developer agreements. This
ensures that the City's CIP, which is the embodiment of the recommendations of these individual planning
studies, is responsive to the officially stated direction of the City as contained in the Comprehensive Plan
and supporting master plans. Examples of these supporting documents are: Water and Wastewater
Modeling Plans, Thoroughfare Plan, Parks Master Plan, Trail Plan, Municipal Facilities Plan, etc.
3. For every project identified in the CIP, a project scope and project justification will be provided. Also,
project costs shall be estimated, funding sources identified and annual operation and maintenance costs
computed.
4. Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of
CIP projects for the CIP and may suggest additions and/or changes to the plan as appropriate. Pursuant to
the City Charter, the Planning and Zoning Commission makes recommendation to the City Manager.
5. The City Manager is charged with recommending a Capital Improvement Plan to City Council. The CIP
shall be filed and adopted in conjunction with the annual budget.
6. Annually, through the budget process and at year-end, projects are to be reviewed. For those identified as
complete, any remaining funds will close to fund balance. For those projects with identified savings, the
project budget will be reduced and the subsequent savings will flow to fund balance. These funds can then
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be re -appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will
only be used in accordance with the legal use of those funds.
7. Appropriations for capital projects are for the life of the project; therefore re -appropriation of capital funding
for each fiscal year for budgeted projects is not necessary.
C. Infrastructure Evaluation and Replacement/Rehabilitation
Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure
are fundamental and essential functions for public health and safety, environmental protections and the
economic well being of the City. As a result, the City's CIP should be focused on ensuring that infrastructure is
replaced as necessary to protect the City's investment, to minimize future replacement and maintenance costs,
and to maintain existing levels of service and accommodate growth.
1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have
deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect
property values, or no longer serve their intended purpose.
2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which
alternative is most cost-effective, which would include life -cycle costing, and provides the best value to the
City.
D. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High -Tech)
The City shall annually prepare a schedule for the replacement of its fleet, fire trucks, and high technology
capital assets. Funding for the replacement of these assets will be accomplished through the annual budget
process, within the resources available each fiscal year. A variety of funding options will be explored, including
but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best
interest of the City.
E. Capital Expenditure Financing
The City recognizes that there are three basic methods of financing its capital requirements: Funding from
current revenues; funding from fund balance; or funding through the issuance of debt. Types of debt and
guidelines for issuing debt are set forth in the Debt Policy Statements.
F. Pay -As -You -Go Capital Improvements
1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing
debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax
and utility rate impacts on Pearland citizens.
2. The City will seek out and use intergovernmental funding sources for capital improvements in order to
leverage City funding and to minimize property and utility rate impacts.
G. Capital Improvements/Project Reporting
A summary/status report on the City's various capital projects will be prepared monthly and available to the City
Manager and to City Council. Income statements on the City's CIP funds will be prepared monthly and include
budget -to -actual for each project as well as list of major contracts, expense to date, and % contract completion.
VII.
DEBT
Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure
improvements while minimizing the impact of debt payments on current and future revenues.
A. Use of Debt Financing
Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of
participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas
law, shall only be used to purchase capital assets that cannot be prudently acquired from either current
revenues or fund balance and to fund infrastructure improvements and additions. Debt will not be used to fund
current operating expenditures.
The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt
when funding capital expenditures and capital improvements, which shall include, but not be limited to, sales
tax, utility system revenues, developer fees, inter -local agreements, and state and federal grants.
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B. Affordability
The City shall use an objective analytical approach to determine whether it can afford to issue general-purpose
debt, both General Obligation and Certificates of Obligation, water/sewer debt, sales tax revenue debt, and any
other financing permitted by State law. The process shall include an internal feasibility analysis for each long-
term financing which analyzes the impact on current and future budgets, which would include the tax and utility
rates. The process shall also include the benefits of the proposed projects. The decision on whether or not to
issue new debt shall be based on the benefits of the project, current conditions of the municipal bond market,
and the City's ability to "afford" new debt.
In no case will the City issue general obligation debt that will require a debt service tax rate of $1.50 per $100
assessed valuation, based on a 90% collection rate, which is the maximum tax rate permitted by State law.
C. Types of Long -Term Debt
1. General Obligation Bonds (GO)
General Obligation bonds require voter approval and are secured by a promise to levy taxes in an amount
necessary to pay annual debt service.
a. General Obligation bonds must be issued for projects that are in accordance with the wording in the
bond proposition.
2. Certificates of Obligation
Certificates of Obligation may be issued without voter approval to finance any public works project or
capital improvement, as permitted by State law. It is the City's policy to utilize Certificates of Obligation to
finance public improvements in certain circumstances and only after determining the City's ability to
assume additional debt. Circumstances in which Certificates might be issued include, but are not limited to
the following.
a. The City may issue CO's when there is insufficient funding on a general obligation bond -financed
capital improvement.
b. The City may issue CO's when "emergency" (urgent, unanticipated) conditions require a capital
improvement to be funded rapidly.
c. The City may issue CO's for projects when the City can leverage dollars from others to reduce the
City's capital cost for a community improvement.
d. The City may issue CO's for projects when there is no other adequate funding source available (ie: GO
or developer funding), the project is determined to be in the best interest of the City, and where a
determination is made that waiting for the next bond referendum or having a bond referendum for a
small amount of money or a small number of projects is impractical and where public notice versus a
voted bond referendum is deemed acceptable by the City Council.
e. The City may issue CO's if it would be more economical to issue Certificates of Obligation rather than
issuing revenue bonds; and
f. The City may issue CO's for projects for which the City will be reimbursed by Developer (principal plus
interest).
3. Revenue Bonds
Revenue bonds are generally payable from a designated source of revenue. They do not require voter
approval.
For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue
bonds in question, shall meet the bond coverage ratio as defined in the ordinance. Annual adjustments to
the City's rate structures for Enterprise Funds will be made as necessary to maintain the coverage factor.
If the City should issue CO's for Water/Sewer Improvements, the Water/Sewer Fund will pay the annual
debt service associated with the issue.
D. Debt Structures
The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 30 years
for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining
debt repayment schedules and shall seek to retire 90% of the total principal outstanding within 20 years of the
year of issuance. There should be no debt structures that include increasing debt service levels in subsequent
years, with the first and second year of a bond payout schedule the exception or as special situations may
warrant. There shall be no "balloon" bond repayment schedules, which consists of low annual payments and
one large payment of the balance due at the end of the term. There shall always be at least interest paid in the
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first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year
after the bond issue. Normally, there shall be no capitalized interest included in the debt structure except for
debt issuances reimbursing developers for infrastructure or in the case in which the project will generate
revenue, but it takes a couple of years to produce the revenue. Capitalized interest should normally not exceed
2 years.
The City currently has a level debt service structure. As such, unless there is growth (increased valuation,
increase in number of connections, etc.) or reallocation of the tax rate to debt service, there is no room for
additional debt without increasing rates. The City shall seek to begin making attempts to structure future debt
issuances, where affordable, to a declining structure.
The City will issue debt based on a fixed rate and will limit use of variable -rate debt due to the potential volatility
of such instruments.
E. Debt Refunding
The City's financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings
by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should
exceed 3.0% of the refunded maturities unless: (1) a debt restructuring is necessary; or (2) bond covenant
revisions are necessary to facilitate the ability to provide services or to issue additional debt or; (3) the
refunding is combined with a new debt issuance.
F. Interest Earnings on Debt Proceeds
Debt interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan in
compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments
on the bonds issued.
G. Bond Elections
1. Timing of general obligation bond elections shall be determined by the inventory of current authorized,
unissued bonds remaining to be sold and the Five -Year Capital Improvement Plan.
2. The total dollar amount of bond election propositions recommended to the voters should typically not
exceed the City's estimated ability to issue the bonds within a 7-year period.
3. An analysis showing how the new debt combined with current debt impacts the City's tax rate and
debt capacity will accompany every future bond issue proposal.
H. Sale Process
The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a
negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is
dependent on market/interest rate timing, if the interest rate environment or market/economic factors may affect
the bond issue, or if the nature of the debt is unique and requires particular skills from the underwriters
involved. The City shall award the bonds based on a true interest costs (TIC) basis. However, the City may
award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis
can satisfactorily determine the lowest and best bid.
I. Underwriting Syndicates
The City's financial advisor shall attempt to involve qualified and experienced firms, which consistently submit
ideas to the City and financial advisors and actively participate in the City's competitive sale in its negotiated
underwritings. In conjunction with the City, the City's financial advisor shall recommend the structure of
underwriting syndicates, which will be optimal for the type and amount of debt being issued.
J. Bond Ratings
Full disclosure of operations and open lines of communications shall be maintained with the rating agencies.
Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, as
recommended by the City's financial advisor.
The City will continually strive to maintain or increase the City's current bond ratings by prudently managing its
funds and by reviewing and monitoring financial policies, budgets, forecasts and the financial health of the City.
K. Covenant Compliance
The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure
information and providing for material event notices.
179
L. Arbitrage Rebate Monitoring and Reporting
Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on the debt. The
City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate compliance requirement
of the IRS regulation. The recordkeeping shall include tracking project expenditures, interest earned on the
bonds, calculating rebate payments, and remitting any rebatable earnings to the federal government in a timely
manner in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate calculations will be
performed annually on all debt issues and the liability recorded for any positive arbitrage. Due to the specialized
nature of the calculations, this function will typically be outsourced.
M. Lease/Purchase Agreements
The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and
provides for attractive terms. All lease purchase agreements will be approved by City Council no matter the
dollar amount.
VIII.
CASH MANAGEMENT AND INVESTMENTS
To maintain the City's cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity
needs of the City, and to achieve the highest possible yield.
A. Investment Management
1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City's
financial assets.
2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state,
and federal regulations. (See City's Investment Policy and Strategy)
3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any
individual or corporate member of the financial or investment community.
4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved
by Council and who have executed a written certification of their review of the City's Investment Policy.
5. The City shall design and establish policies relating to a variety of cash/investment management issues,
such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral
requirements, delivery versus payment requirements, weighted average maturity requirements and other
such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and
enhanced protection of assets.(See City's Investment Policy)
6. Investments of the City shall be made with the exercise of judgment and care which persons of prudence,
discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for
investment.
B. Investment Strategy
The City of Pearland maintains a consolidated portfolio in which it pools its funds for investment purposes. The
City's investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and
reasonable yields commensurate with the preservation of principal and liquidity. (See City's Investment
Strategy)
C. Interest Income
Interest earned from investments shall be distributed to the funds from which the funds were provided.
D. Arbitrage Investments
Investment on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive
rate of return. If there is positive arbitrage, the rebatable earnings will be sent to the IRS, as necessary.
E. Depository
The City will select its official bank through a formal bidding process in order to provide the City with the most
comprehensive, flexible, and cost-effective banking services available. The City will, at a minimum, bid
depository services every five years. The City will review the financial health of the City's depository annually to
include but not be limited to earnings, assets, capital, and liquidity.
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F. Collateralization of Deposits
1. The City shall have pledged collateral held at an independent third -party institution and evidenced by a
written receipt.
2. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent
of par or market value of the investments, whichever is greater.
3. Substitutions of collateral shall meet the requirements of the collateral agreement. Collateral shall not be
released until the replacement collateral has been received, if the release of the collateral should result in
the value being under 102 percent of par value.
4. The pledge of collateral shall comply with the City's investment policy.
IX.
GRANTS AND INTERGOVERNMENTAL REVENUES
The City will seek, apply for, and effectively administer federal, state and local grants, which support the City's
current priorities and policy objectives. The City should take advantage of opportunities to enhance service delivery
through intergovernmental cooperation, shared revenues, and grants.
A. Grant Guidelines
1. The City shall apply and facilitate the application for only those grants that are consistent with the
objectives and high priorities identified by Council and management.
2. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be
used to fund ongoing programs and services.
3. The potential for incurring ongoing costs, to include assumptions of support for grant -funded positions from
local revenues, will be considered prior to applying for a grant.
B. Grant Review Process
1. A uniform grants pre -application process will be utilized to assure the City has all the information necessary
to make a decision regarding a potential grant. Information to be provided should include, but not be limited
to:
a. The grant being pursued and the use to which it would be placed
b. The objectives or goals of the City which will be achieved through the use of the grant
c. The local match required, if any, plus the source of the local match
d. The increased cost to be locally funded upon termination of the grant
2. All grant agreements will be reviewed by the appropriate City staff, including Finance, Legal, HR, and the
sponsoring department, to ensure compliance with state, federal, and City regulations.
3. The City Manager shall approve all grant submissions and City Council shall approve all grant acceptances
over $50,000.
C. Budgeting for Grant Expenditures
Annually via the budget process, departments will submit for possible funding, known grant opportunities.
These grant opportunities will be prioritized and ranked along with all other supplemental requests. If approved,
the expenditure and associated revenue will be appropriated in the Grant Fund. If there are grant opportunities
that arise during the year and are received by the City, the budget will be amended via the projections, if the
City can fund the local match required.
D. Grant Termination and/or Reduced Grant Funding
1. In the event of reduced grant funding, City resources will be substituted only after all program priorities and
alternatives are considered during the budget process, unless the City is obligated through the terms of the
grant to maintain the positions, services, or equipment.
2. The City shall terminate grant -funded programs and associated positions when grant funds are no longer
available, and it is determined that the program no longer supports City goals and/or is no longer in the
best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the
positions, services, or equipment.
181
X.
FINANCIAL CONSULTANTS
The City will employ qualified financial advisors and consultants as needed in the administration and management
of the City's financial function. These areas include but are not limited to audit services, debt administration,
delinquent tax collection attorney, and financial modeling. The principal factors in the selection of these consultants
will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In
no case should price be allowed to serve as the sole criterion for the selection.
A. Selection of Auditors
At least every seven years, the City shall request proposals from qualified firms, including the current auditors if
their past performance has been satisfactory. The City Council shall select an independent firm of certified
public accountants to perform an annual audit of the accounts and records, and render an opinion on the
financial statements of the City.
It is the City's preference to rotate auditor firms every seven years at the maximum, to ensure that the City's
financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The
rotation of the audit firm will be based upon the proposals received, the qualifications of the firm, and the firm's
ability to perform a quality audit.
However, if through the proposal and review process, management and the Audit Committee select the current
audit firm, then, it is the City's preference that the lead audit partner be rotated, as well as the lead reviewer,
after a maximum of seven years.
B. Arbitrage
1. The City shall calculate positive/negative arbitrage on each bond issue annually. While the City is
responsible to ensure that the records are in order, the calculations made, reporting completed, and filings
made, the actual arbitrage calculation and reporting shall be contracted out to a qualified firm.
2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There
is not a requirement for rotation.
C. Delinquent Tax Collection Attorney
1. Due to the nature and expertise required, the City shall hire a delinquent tax collection attorney to collect
delinquent taxes, represent the City in filing bankruptcy claims, foreclose on real property, seize personal
property, and represent the City in court cases and property sales.
2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There
is no requirement for rotation.
D. Bond Counsel
1. Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion
concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized
attorneys who have developed necessary expertise in a broad range of practice areas, the City will always
use a consultant for these services. Generally, bonds are not marketable without an opinion of nationally
recognized bond counsel stating that the bonds are valid and binding obligations stating the sources of
payment and security for the bonds and that the bonds are exempt from Federal income taxes.
2. Due to the complexity of the City's financial structure and the benefits that come with the history and
knowledge of the City, the contract with Bond Counsel shall be a maximum of ten (10) years, however with
a termination clause, at the discretion of the City. A contract may be renewed after a competition process in
which the Council determines that continuation with the incumbent firm is in the best interest of the City.
E. Financial Advisory Services
1. The City issues various types of securities to finance its capital improvement program. Debt structuring and
issuance requires a comprehensive list of services associated with municipal transactions, including but
not limited to: method of sale; analysis of market conditions; size and structure of the issue; coordinating
rating agency relations; evaluation of and advice on the pricing of securities, assisting with closing and debt
management; calculation of debt service schedules; and advising on financial management. As financial
advisors to governmental entities have developed the necessary expertise in a broad range of services, the
City will use a consultant for these services.
2. Due to the complexity of the City's financial structure and the benefits that come with the history and
knowledge of the City, the contract with the Financial Advisor shall be a maximum of ten (10) years,
however with a termination clause, at the discretion of the City. A contract may be renewed after a
182
competition process in which the Council determines that continuation with the incumbent firm is in the best
interest of the City.
F. Depository Bank
Pursuant to State law, the City may approve a depository contract whose term does not exceed five years.
There is no requirement for rotation. The City will select its official banking institution through a formal process
based on best value in order to provide the City with the most comprehensive, flexible, and cost-effective
banking services available.
183
AUTHORITY
The City of Pearland's Operating Budget is proposed and approved in accordance with State
Law, the City Charter and the City Code of Ordinances
PEARLAND CITY CHARTER
ARTICLE 8
MUNICIPAL FINANCE
SECTION 8.01 - Fiscal Year:
The fiscal year of the City of Pearland shall begin at the first day of October and shall end on the last day of September
of each calendar year. Such fiscal year shall constitute the budget and accounting year.
SECTION 8.02 - Preparation and Submission of Budget:
The City Manager, between sixty (60) and ninety (90) days prior to the beginning of each fiscal year, shall submit to
the Council a proposed budget, which budget shall provide a complete financial plan for the fiscal year and shall
contain the following:
(a) A budget message, explanatory of the budget, which shall contain an outline of the proposed financial
policies of the City for the fiscal year, shall set forth the reasons for salient changes from the previous
fiscal year in expenditures and revenue items, and shall explain any major changes in financial policy.
(b) A consolidated statement of anticipated receipts and proposed expenditures for all funds.
(c) An analysis of property valuations.
(d) An analysis of tax rates.
(e) Tax levies and tax collections by years for at least the immediate past five (5) years.
(f) General funds resources in detail.
(g) Special funds resources in detail.
(h) Summary of proposed expenditures by function, department and activity.
(i) Detailed estimates of expenditures shown separately for each activity to support the summary (h)
above.
(j) A revenue and expense statement for all types of bonds, time warrants and other indebtedness.
(k) A description of all bond issues, time warrants and other indebtedness outstanding, showing rate of
interest, date of issue, maturity date, and amount authorized, amount issued and amount
outstanding.
(I) A schedule of requirements for the principal and interest of each issue of bonds, time warrants and
other indebtedness.
(m) The appropriation ordinance.
(n) The tax -levying ordinance.
SECTION 8.03 - Anticipated Revenues Compared With Other Years in Budget:
In preparing the budget, the City Manager shall place in parallel columns opposite the several items of revenue, the
actual amount of each item for the last completed fiscal year, the estimated amount for the current fiscal year, and
the proposed amount for the ensuing fiscal year.
SECTION 8.04 - Proposed Expenditures Compared With Other Years:
The City Manager, in the preparation of the budget shall place in parallel columns opposite the various items of
expenditures the actual amount of such items of expenditures for the last completed fiscal year, the estimated amount
for the current fiscal year, and the proposed amount for the ensuing fiscal year.
SECTION 8.05 - Budget a Public Record:
The budget and all supporting schedules shall be filed with the person performing the duties of City Secretary,
submitted to the Council and shall be a public record.
SECTION 8.06 - Notice of Public Hearing on Budget (Amended 5/19/2014):
In accordance with state law, the City Council shall cause to be published in the official newspaper of the City of
Pearland a notice of the hearing setting forth the date time and place of the public hearing on the submitted budget.
184
SECTION 8.07 - Public Hearing on Budget:
At the time and place set forth in the notice required by Section 8.06, or at any time and place to which such public
hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the budget submitted
and all interested persons shall be given an opportunity to be heard for or against any item or amount of any item
therein contained.
SECTION 8.08 - Proceedings on Budget After Public Hearings (Amended 5/19/2014):
After the hearing, the City Council may adopt the budget with or without amendment. In amending the budget, it may
add or increase programs or amounts, provided that no amendment to the budget shall increase the authorized
expenditures to an amount greater than the total of estimated income plus funds available from prior years.
SECTION 8.09 - Vote Required for Adoption:
The budget shall be adopted by a majority of the members of the whole City Council.
SECTION 8.10 - Date of Final Adoption (Amended 5/19/2014) :
The budget shall be adopted no later than the last regularly scheduled Council meeting of September to allow
compliance with the state tax laws, and should the City Council fail to so adopt a budget, the then existing budget,
together with its tax levying ordinance and its appropriation ordinance, shall be deemed adopted for the ensuing fiscal
year.
SECTION 8.11 - Effective Date of Budget; Certification; Copies Made Available (Amended 5/19/2014):
Upon final adoption, the budget shall be in effect for the fiscal year. A copy of the budget, as finally adopted, shall
be filed with the person performing the duties of City Secretary and the County Clerk of Brazoria County. The final
budget shall be published on the City's website made available for the use of all offices, departments, and agencies
and for the use of interested persons and civic organizations.
SECTION 8.12 - Budget Established Appropriations:
From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and
become appropriated to the several objects and purposes therein named.
SECTION 8.13 - Budget Established Amount to be Raised by Property Tax:
From the effective date of the budget, the amount stated therein as the amount to be raised by property tax shall
constitute a determination of the amount of the levy for the purposes of the City in the corresponding tax year;
provided, however, that in no event shall such levy exceed the legal limit provided by the laws and constitution of the
State of Texas.
SECTION 8.14 - Contingent Appropriation: (Amended 5/19/2014)
Provision shall be made in the annual budget and in the appropriation ordinance for a contingent appropriation
ordinance for a contingent appropriation in an amount not to exceed one (1) per centum of the general fund
expenditures to be used in case of unforeseen items of expenditures. Such contingent appropriation shall be under
the control of the City Manager and distributed by him/her after approval by the City Council.
SECTION 8.15 - Estimated Expenditures Shall Not Exceed Estimated Resources:
The total estimated expenditures of the general fund and debt service fund shall not exceed the total estimated
resources of each fund (prospective income plus cash on hand). The classification of revenue and expenditure
accounts shall conform as nearly as local conditions will permit to the uniform classification as promulgated by the
National Committee on Government Accounting or some other nationally accepted classification.
SECTION 8.16 - Emergency Appropriations (Amended 5/7/1990):
At any time in any fiscal year, the Council may, pursuant to this section, make emergency appropriations to meet a
pressing need for public expenditure, for other than regular or recurring requirements, to protect the public health,
safety or welfare. Such appropriations shall be by ordinance adopted by the majority vote of the Council members
at one (1) special or regular meeting.
185
SECTION 8.17 - Purchase Procedure: (Amended 4/15/1974; 4/5/1982)
All purchases made and contracts executed by the City shall be pursuant to a requisition from the head of the office,
department or agency whose appropriation will be charged, and no contract or order shall be binding upon the City
unless and until the City Manager certifies that there is to the credit of such office, department or agency a sufficient
unencumbered appropriation and allotment balance to pay for the supplies, materials, equipment, or contractual
services for which the contract or order is issued. All purchases made and contract executed by the City shall be
made in accordance with the requirements of this Charter and all applicable requirements of the Constitution and
Statutes of the State of Texas. All contracts for purchases or expenditures must be expressly approved in advance
by the Council, except that the Council may by ordinance confer upon the City Manager, general authority to contract
for expenditures without further approval of the Council for all budgeted items the cost of which does not exceed the
constitutional and statutory requirements for competitive bidding.
SECTION 8.18 - Disbursement of FundsjAmended 5/19/2014):
All checks, vouchers or warrants for the withdrawal of money from the City Depository shall be signed by the City
Manager or the Mayor, and countersigned by the City Secretary, or the City Treasurer.
SECTION 8.19 - Power to Tax: (Amended 4/9/84)
The City Council shall have the power, and is hereby authorized to levy and collect an annual tax upon all real and
personal property within the City not to exceed the maximum limits set by the Constitution and laws of the State of
Texas as they now exist, or as they may be amended.
SECTION 8.20 - Property Subject to Tax; Rendition, Appraisal and Assessment: (Amended 4/7/84)
All real and tangible and intangible personal property within the jurisdiction of the City of Pearland not expressly
exempted by law shall be subject to annual taxation. The method and procedures for the rendition, appraisal and
assessment of all real and personal property within the City shall be in accordance with applicable provisions of the
Property Tax Code of the State of Texas as now or hereafter amended.
SECTION 8.21 - Taxes, When Due and Payable: (Amended 4/9/84)
All taxes due the City of Pearland shall be payable to the office of the city assessor -collector on receipt of the tax bill
and shall be considered delinquent if not paid before February first of the year following the year in which imposed.
The postponement of any delinquency date and the amount of penalty, interest and costs to be imposed on delinquent
taxes shall be in accordance with applicable ordinances of the City of Pearland and the Property Tax Code of the
State of Texas.
SECTION 8.22 - Tax Liens (Amended 5/19/2014):
(a) Except for such restrictions imposed by law, the tax levied by the City is hereby declared to be a lien, charge,
or encumbrance upon the property upon which the tax is due, which lien, charge or encumbrance the City is
entitled to enforce and foreclose in any court having jurisdiction over the same, and the lien, charge or
encumbrance on the property in favor of the City, for the amount of taxes due on such property is such as to
give the state courts jurisdiction to enforce and foreclose said lien on the property on which the tax is due,
not only as against any resident of this state or person whose residence is unknown, but also as against
nonresidents. All taxes upon real estate shall especially be a lien and a charge upon the property upon which
the taxes are due, which lien may be foreclosed in any court having jurisdiction. The City's tax lien shall exist
from January first in each year until the taxes are paid, and limitations as to seizures and suits for collection
of taxes shall be as prescribed by state law.
(b) Except for such exemptions and restrictions imposed by law, all persons, associations, corporations, firms
and partnerships owning or holding personal property or real property in the City of Pearland on January first
of each year shall be liable for City taxes levied thereon for each year. The tangible personal property of all
persons, associations, corporations, firms or partnerships owing any taxes to the City of Pearland is hereby
made liable for all said taxes, whether the same be due upon personal or real property or upon both.
(c) All seizure and foreclosure proceedings shall be commenced no later than three (3) years after taxes first
become delinquent.
SECTION 8.23 - Tax Remission and Discounts: (Amended 4/9/1984)
Except as provided by state law, neither the City Council nor any other official of the City shall ever extend the time
for payment of taxes nor remit, discount or compromise any tax legally due the City, nor waive the penalty, interest
and costs that may be due thereon to or for any person, association, firm or partnership owing taxes to the City for
such year or years.
186
SECTION 8.24 - Issuance of Bonds (Amended 4/9/1984):
The City of Pearland shall have the power to issue bonds and levy a tax to support the issue of permanent
improvements and all other lawful purposes.
(a) General Obligation Bonds -
The City shall have the power to borrow money on the credit of the City and to issue general
obligation bonds for permanent public improvements or for any other public purpose not prohibited
by the Constitution and laws of the State of Texas and to issue refunding bonds to refund outstanding
bonds of the City previously issued. All such bonds shall be issued in conformity with the laws of the
State of Texas and shall be used only for the purpose for which they were issued.
(b) Revenue Bonds -
The City shall have the power to borrow money for the purpose of construction, purchasing,
improving, extending or repairing of public utilities, recreational facilities or any other self-liquidating
municipal function not prohibited by the Constitution and laws of the State of Texas and to issue
revenue bonds to evidence the obligation created thereby, and to issue refunding bonds to refund
outstanding revenue bonds of the City previously issued. All such bonds shall be issued in conformity
with the laws of the State of Texas and shall be used only for the purpose for which they were issued.
(c) Sale of Bonds -
No bonds (other than refunding bonds issued to refund and in exchange of previously issued
outstanding bonds) issued by the City shall be sold for less than par value accrued interest. All
bonds of the City having been issued or sold in accordance with the terms of this section and having
been delivered to the purchasers thereof shall thereafter be incontestable and all bonds issued to
refund and in exchange of outstanding bonds previously issued shall, after said exchange, be
incontestable.
187
ORDINANCE NO.1567
An Ordinance adopting a tax rate of $0.709158 and levying taxes for the use
and support of the Municipal Government of the City of Pearland, Texas,
and providing for the interest and sinking fund of the taxable year 2018.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That there is hereby levied and there shall be collected for the use and
support of the Municipal Government of the City of Pearland, Texas, and to provide Interest and
Sinking Fund for taxable year 2018 upon all property, real, personal, and mixed within the
corporate limits of said City subject to taxation, a tax of $0.709158 on each One Hundred
Dollars ($100.00) valuation of property, said tax being so levied and apportioned for the specific
purpose herein set forth:
(1) For the maintenance and support of the General Government (General Fund), the
sum of $0.279158 on each $100 valuation of property, and
(2) For the Interest and Sinking Fund, the sum of $0.43.
Section 2. All monies collected under this ordinance for the specific items therein
named, be and the same are hereby appropriated and set apart for the specific purpose
indicated in each item and that the Assessor and Collector of Taxes, the Director of Finance,
and the City Manager shall so keep these accounts as to readily and distinctly show the amount
collected, the amounts expended, and the amount on hand at any time belonging to such funds.
It is hereby made the duty of the Tax Assessor and Collector of Taxes and every person
collecting money for the City of Pearland to deliver to the Director of Finance and the City
Manager, at the time of depositing of any monies, a statement showing to what fund such
deposit should be made, and from what source received. All receipts for the City not specifically
apportioned by this ordinance are hereby made payable to the General Fund of the City.
188
ORDINANCE NO.1567
PASSED and APPROVED ON FIRST READING this the 17th day of September, A.D.,
2018.
ATTEST:
TOM REID
MAYOR
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PASSED and APPROVED ON SECOND and FINAL READING this the 24th day of
September, A. D., 2018.
ATTEST:
NG ;iRFING,
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
TOM REID
MAYOR
189
ORDINANCE NO.1568
An appropriation Ordinance adopting a budget for the fiscal year
beginning October 1, 2018, and ending September 30, 2019, and pay
plans for fiscal year 2019.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Manager's proposed 2018-2019 Budget, attached hereto as
Exhibit "A", be adopted in compliance with provisions of Article 8 of the Home Rule Charter of
the City of Pearland, Texas which sets forth certain specific requirements as to the City of
Pearland,
Section 2. That City Council hereby appropriates certain sums, more specifically
identified on Exhibit "A" attached hereto, for the proposed fiscal year 2018-2019 Budget.
Section 3. That the City Council hereby confers upon the City Manager general
authority to contract for expenditures without further approval of the Council for all budgeted
items the cost of which do not exceed the constitutional and statutory requirements for
competitive bidding.
Section 4. That the City Council deems the Pay Plans (Exhibit "B") and
Organizational Plan contained in the 2018-2019 Budget to be in the best interest of the City and
is hereby adopted.
Section 5. That this ordinance shall become effective from and after its passage on
second and final reading.
2018.
PASSED and APPROVED ON FIRST READING this the 17th day of September, A. D.,
TOM REID
MAYOR
190
ORDINANCE NO.1568
ATTEST:
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PASSED and APPROVED ON SECOND and FINAL READING this the 24th day of
September, A. D., 2018.
ATTEST:
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ITY S :lam' ETAR
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
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191
Fund Description
EXHIBIT A
City of Pearland
Fiscal Year 2018-2019 Budget
Revenues
Adopted Budget
Ord No. 1568
Expenses
Adopted Budget
Ord No. 1568
OPERATIONS
100 General
200 Debt Service -General
900 PEDC
Special Revenue Funds
305 Hotel/Motel
310 Municipal Court Security
315 Citywide Donation
320 Court Technology
330 Parks Donations
331 Tree Trust
335 Police State Seizure
336 Federal Police
340 Park & Recreation Development
345 Sidewalk
350 Grant
351 Community Development
360 Traffic Impact Improvement
365 CourtJuvenile Management
370 Municipal Channel
380 Regional Detention
510 Lower Kirby
Internal Service Fund
700 Property/Liability Insurance
702 Medical Self -Insurance
703 Motor Pool
Proprietary Funds
600 Water and Sewer
610 Solid Waste
80,793,874
37,918,371
11,730,381
1,460,800
43,700
30,967
50,003
128,000
7,800
4,000
76,200
138,000
5,005
58,866
390,001
7,500
62,200
285,000
1,433,425
7,765,280
3,719,240
55,197,384
7,703,815
SUB TOTAL - OPERATIONS
209,009,812
CAPITAL IMPROVEMENT PROGRAM
Water/Sewer Capital Projects Funds
550 Utility Impact Fee
555 Shadow Creek Impact Fee
560 Certificates of Obligation 1998
565 1999 W & S Revenue Bonds
570 Water/Sewer Pay As You Go
575 MUD 4 Capital Program
Capital Projects Funds
500 Capital Projects
501 Capital Projects -CO 2001
503 Capital Projects -CO 2006
506 Capital Projects -GO Series 2009
29,990,000
260,000
6,085,000
2,925,000
10,000
27,487,518
54,065,839
80,424,112
38,941,094
27,757,741
1,530,225
51,006
39,673
38,171
122,500
50,750
37,200
749,154
4,220
58,791
390,001
1,141
61,444
158,400
1,441,259
7,747,279
3,699,240
53,416,720
7,700,000
224,420,121
37,234,738
700,000
6,257,916
3,688,688
390,245
36,630,645
3,916
57,609,494
SUB TOTAL - CIP
120,823,357
142,515,642
GRAND TOTAL:
329,833,169
366,935,763
192
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
103
$20,213.00
$24,255.00
$30,319.00
LIFEGUARD
$9.72
$11.66
$14.58
104
$21,223.00
$25,468.00
$31,835.00
HEAD LIFEGUARD
$10.20
$12.24
$15.31
106
$23,398.00
$28,078.00
$35,098.00
INTERN
$11.25
$13.50
$16.87
RECREATION ATTENDANT
SUMMER CAMP COUNSELOR
WATER SAFETY INSTRUCTOR
107
$24,568.00
$29,482.00
$36,853.00
CUSTODIAN
$11.81
$14.17
$17.72
108
$25,797.00
$30,956.00
$38,695.00
FACILITY ATTENDANT
$12.40
$14.88
$18.60
110
$28,441.00
$34,129.00
$42,662.00
CAMP COORDINATOR
$13.67
$16.41
$20.51
OFFICE ASSISTANT
POLICE RECORDS CLERK
111
$29,863.00
$35,836.00
$44,795.00
ANIMAL SHELTER ATTENDANT
$14.36
$17.23
$21.54
CUSTOMER SERVICE REPRESENTATIVE I
DEPUTY COURT CLERK
PARK MAINTENANCE WORKER
PERMIT CLERK
SIGN TECHNICIAN
112
$31,356.00
$37,627.00
$47,034.00
CUSTODIAL CREW LEADER
$15.08
$18.09
$22.61
CUSTOMER SERVICE REPRESENTATIVE II
RECORDS & INFORMATION COORDINATOR
113
$32,924.00
$39,509.00
$49,386.00
ACCOUNTS PAYABLE CLERK
$15.83
$18.99
$23.74
COURT SECURITY OFFICER
DEPUTY COURT CLERK, SENIOR
OFFICE ASSISTANT, SENIOR
PARAMEDIC
PLANS EXPEDITER
RECORDS SUPERVISOR
SENIOR CENTER SHUTTLE BUS DRIVER
UTILITY BILLING SPECIALIST
UTILITY FIELD SERVICE TECHNICIAN
UTILITY MAINTENANCE WORKER
114
$34,570.00
$41,484.00
$51,855.00
ADMINISTRATIVE ASSISTANT
$16.62
$19.94
$24.93
EQUIPMENT OPERATOR
JAILER
LEGAL SECRETARY
115
$36,299.00
$43,558.00
$54,448.00
HEAVY EQUIPMENT OPERATOR
$17.45
$20.94
$26.18
LEAD COURT SECURITY OFFICER
QUARTERMASTER
193
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
116
$38,114.00
$45,736.00
$57,171.00
BUILDING MAINTENANCE TECHNICIAN
$18.32
$21.99
$27.49
CCTV TECHNICIAN
CHIEF COURT CLERK
CODE ENFORCEMENT / HEALTH OFFICER
EXECUTIVE ASSISTANT
ANIMAL CONTROL OFFICER
JUVENILE CASE MANAGER
MECHANIC
PARK MAINTENANCE CREW LEADER
PRE-TREATMENT TECHNICIAN
RECREATION SPECIALIST
TREATMENT PLANT OPERATOR I
UTILITY MAINTENANCE TECHNICIAN
YOUTH DEVELOPMENT COORDINATOR
117
$40,019.00
$48,023.00
$60,029.00
ANIMAL SHELTER SUPERVISOR
$19.24
$23.09
$28.86
BUILDING INSPECTOR
COMMUNICATIONS SPECIALIST
CRIME VICTIM LIAISON
DEPUTY CITY SECRETARY
IT SUPPORT SPECIALIST
PAYROLL SPECIALIST
PD - POLICE CADET
ROW INSPECTOR
TELECOMMUNICATIONS OPERATOR
TRAFFIC SIGNAL TECHNICIAN
118
$42,020.00
$50,424.00
$63,031.00
ACCOUNTS PAYABLE COORDINATOR
$20.20
$24.24
$30.30
ADAPTIVE RECREATION SPECIALIST
GIS TECHNICIAN
HR SPECIALIST
LEAD JAILER
MAINTENANCE CREW LEADER
PLANNING TECHNICIAN
PLANS EXAMINER
TREATMENT PLANT OPERATOR II
URBAN FORESTER
UTILITY FIELD SERVICE TECHNICIAN, LEAD
UTILITY MAINTENANCE TECHNICIAN, SENIOR
VOLUNTEER COORDINATOR
119
$44,121.00
$52,946.00
$66,182.00
AQUATICS SUPERVISOR
$21.21
$25.45
$31.82
BUYER
COMMUNITY OUTREACH COORDINATOR
CONSTRUCTION INSPECTOR
CRIME SCENE TECHNICIAN
CUSTOMER SERVICE SUPERVISOR
FACILITY SUPERVISOR
ANIMAL CONTROL SUPERVISOR
PLANNER I
PW INFRASTRUCTURE LIAISON
TELECOMMUNICATIONS TEAM LEADER
194
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
120
$46,327.00
$55,593.00
$69,491.00
ADDRESSING COORDINATOR
$22.27
$26.73
$33.41
BACKFLOW COMPLIANCE PROGRAM COORDINATOR
CIP COORDINATOR
CRIME ANALYST
EMERGENCY MANAGEMENT PLANNER
ENGINEERING TECHNICIAN
EXECUTIVE ASSISTANT, SENIOR
PRETREATMENT COORDINATOR
PROJECT COORDINATOR
STAFF ACCOUNTANT
121
$48,644.00
$58,373.00
$72,966.00
ASSISTANT MANAGER, PERMITS & INSP
$23.39
$28.06
$35.08
ELECTRICIAN
PARK SUPERVISOR
PLANNER II
VIDEOGRAPHER/EDITOR
122
$51,076.00
$61,291.00
$76,614.00
BUDGET ANALYST
$24.56
$29.47
$36.83
BUSINESS ADMINISTRATOR
CONTRACT ADMINISTRATOR
GIS SPECIALIST
MARKETING MANAGER
NATURAL RESOURCE MANAGER
OPERATIONS MANAGER
RESOURCE DEVELOPMENT COORDINATOR
SALES AND EVENT MANAGER
SENIOR ACCOUNTANT
SPECIAL EVENTS COORDINATOR
COMMUNICATIONS SUPERVISOR
TREASURY ANALYST
TREATMENT PLANT SUPERVISOR
123
$53,630.00
$64,356.00
$80,445.00
HR BUSINESS PARTNER
$25.78
$30.94
$38.68
MAINTENANCE SUPERVISOR
SAFETY OFFICER
SENIOR PLANNER
RECREATION PROGRAM MANAGER
WATER B&C ASSISTANT MANAGER
123 F
$53,630.00
$64,356.00
$80,445.00
FIREFIGHTER*
$19.46
$23.35
$29.19
124
$56,311.00
$67,574.00
$84,467.00
ASSISTANT BUILDING OFFICIAL
$27.07
$32.49
$40.61
ATHLETICS AND AQUATICS MANAGER
BUILDING MAINTENANCE SUPERVISOR
DEVELOPMENT COORDINATOR
FIRE INSPECTOR/INVESTIGATOR
SENIOR BUDGET ANALYST
HEALTH & ENVIRONMENTAL SERVICES SUPERVISOR
195
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
125
$59,127.00
$70,952.00
$88,690.00
ASSOCIATE ENGINEER
$28.43
$34.11
$42.64
ACQUISITION MANAGER
JAIL MANAGER
MUNICIPAL COURT ADMINISTRATOR
COMMUNICATIONS AND RECORDS MANAGER
PARKS DEVELOPMENT & OPERATIONS SUPERINTENDENT
125 F
$59,127.00
$70,952.00
$88,690.00
DRIVER/OPERATOR*
$21.45
$25.74
$32.18
FIRE FIELD TRAINING OFFICER*
126
$62,083.00
$74,500.00
$93,125.00
ANIMAL SERVICES MANAGER
$29.85
$35.82
$44.77
CHIEF CONSTRUCTION INSPECTOR
CONSTRUCTION MANAGER
DATABASE ADMINISTRATOR
GRANTS/SPECIAL PROJECTS ADMINISTRATOR
IT INFRASTRUCTURE ARCHITECT
MANAGEMENT ASSISTANT
PROJECT MANAGER
PUBLIC WORKS SUPERINTENDENT
RECREATION SUPERINTENDENT
127
$65,187.00
$78,225.00
$97,781.00
MARKETING DIRECTOR (EDC)
$31.34
$37.61
$47.01
WATER BILLING & COLLECTION MANAGER
MUNICIPAL COURT PROSECUTOR
127 F
$65,187.00
$78,225.00
$97,781.00
FIRE LIEUTENANT*
$23.65
$28.38
$35.48
128
$68,447.00
$82,136.00
$102,670.00
CITY PLANNER
$32.91
$39.49
$49.36
DEVELOPMENT MANAGER
FACILITIES SERVICE MANAGER
129
$71,869.00
$86,243.00
$107,804.00
BUILDING OFFICIAL
$34.55
$41.46
$51.83
EMERGENCY MANAGEMENT COORDINATOR
GIS MANAGER
INFORMATION TECHNOLOGY MANAGER
SENIOR PROJECT MANAGER
130
$75,462.00
$90,555.00
$113,194.00
ASSISTANT CITY ENGINEER
$36.28
$43.54
$54.42
CLINICAL MANAGER
FIRE CAPTAIN (Training)
HR MANAGER
RISK MANAGER
VICE PRESIDENT - EDC
130 F
$75,462.00
$90,555.00
$113,194.00
FIRE CAPTAIN*
$27.38
$32.86
$41.07
131
$79,236.00
$95,083.00
$118,853.00
ASSISTANT CITY ATTORNEY
$38.09
$45.71
$57.14
CONTROLLER
196
Grade
Minimum
Market
Maximum
Class Title
Most positions use 2080 hours however * indicates positions to
use 2756 hours in determining hourly rate.
132
$83,197.00
$99,837.00
$124,796.00
ASSISTANT DIRECTOR, P&R
$40.00
$48.00
$60.00
ASSISTANT DIRECTOR, PUB WORKS
BATTALION CHIEF (Logistics)
BUDGET AND PROCUREMENT MANAGER
FIRE MARSHAL
132 F
$83,197.00
$99,837.00
$124,796.00
BATTALION CHIEF*
$30.19
$36.23
$45.28
133
$87,357.00
$104,829.00
$131,036.00
ASSISTANT DIRECTOR, CAP PROJ
$42.00
$50.40
$63.00
ASSISTANT DIRECTOR, ENGINEERING
ASSISTANT DIRECTOR, FINANCE
134
$91,725.00
$110,070.00
$137,588.00
ASSISTANT FIRE CHIEF
$44.10
$52.92
$66.15
DEPUTY CITY ATTORNEY
136
$101,127.00
$121,352.00
$151,690.00
ASSISTANT POLICE CHIEF
$48.62
$58.34
$72.93
DEPARTMENT
DIRECTORS AND ABOVE ARE NOT LISTED ON THE PAY PLAN
197
CITY OF PEARLAND
CIVIL SERVICE PAY PLAN
FY 2019
1
2
3
4
5
6
7
8
9
10
11
12
Police Officer
$27.58
$28.43
$29.29
$30.19
$31.11
$32.06
$33.04
$34.05
$35.09
$36.16
$37.26
$38.40
141"
$57,375.00
$59,126.34
$60,930.72
$62,791.20
$64,707.78
$66,682.50
$68,718.42
$70,815.54
$72,976.92
$75,204.60
$77,500.62
$79,866.00
1st year
2nd year
3rd year
4th year
5th year
6th year
Sergeant
$39.24
$40.45
$41.70
$42.99
$44.31
$45.68
19*
$81,626.52
$84,143.88
$86,737.74
$89,413.20
$92,170.26
$95,013.00
1st year
2nd year
3rd year
4th year
Lieutenant
$47.09
$48.48
$49.91
$51.39
5"
$97,951.62
$100,844.34
$103,822.74
$106,889.88
1st year
2nd year
3rd year
Captain
$52.90
$54.49
$56.12
4*
$110,041.68
$113,333.22
$116,723.70
*indicates number of authorized position in each classification.
Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032.
When Classified Employee is eligible, shift differential pay is $86.00 bi-weekly.
Those Police Officers and Sergeants assigned to the Criminal Investigation Division as Detective, such assignments at the discretion of the Chief, will
receive $100.00/bi-weekly assignment pay for the duration of the assignment.
All overtime for any classification shall be paid in accordance with applicable State and Federal law.
198
FEES FOR ZONING CHANGE/CONDITIONAL USE PERMIT REQUESTS*
A $150 processing fee, plus
A. 0 to Tess than 5 acres:
1. $850 plus $25 per each type of zoning requested on a tract of land; or
2. $1,650 if Planned Unit Development
B. 5 to Tess than 25 acres:
3. $850 plus $25 per each type of zoning requested on a tract of land; or
4. $1,850 if Planned Development
C. 25 to less than 50 acres:
1. $875 plus $25 per each type of zoning requested on a tract of land; or
2. $2,250 if Planned Unit Development
D. 50 to less than 75 acres:
1. $900 plus $25 per each type of zoning requested on a tract of land; or
2. $2,850 if Planned Unit Development
E. 75 to less than 100 acres:
1. $925 plus $25 per each type of zoning requested on a tract of land; or
2. $3,650 if Planned Unit Development
F. 100 acres and over:
1. $950 plus $25 per each type of zoning requested on a tract of land; or
2. $4,450 if Planned Unit Development
199
PLATTING FEE SCHEDULE
A. Preliminary Subdivision/Development Plats:
1. $150 processing fee, and
2. The $850 filing fee, plus the platting fee, as follows:
a. For residential purposes or dwelling units where lots are not designated on
the plat, $8.00 per designated lot, tract, or building site
b. For tracts, blocks, or areas not divided into lots and to be used for
commercial, industrial, multiple dwellings, or unrestricted uses, $30.00 per
acre or any fraction thereof.
B. Final Subdivision/Development Plats:
1. $150 processing fee, and
2. The $850 filing fee, plus the platting fee, as follows:
a. For residential purposes or dwelling units where lots are not designated on
the plat, $8.00 per designated lot, tract, or building site.
b. For tracts, blocks, or areas not divided into lots and to be used for
commercial, industrial, multiple dwellings, or unrestricted uses, $30.00 per
acre or any fraction thereof.
C. Vacation of Subdivisions:
Fee amount: $600.00 per acre (gross area of whole tract) or any fraction thereof.
D. Extension of Approval:
Fee amount: $150.00 filing fee.
E. Minor Plat:
1. $150 processing fee, and
2. The $850 filing fee, plus the platting fee as follows:
a. For residential purposes or dwelling units where lots are not designated on
the plat, $ 6.00 per designated lot, tract, or building site.
b. For tracts, blocks, or areas not divided into lots and to be used for
commercial, industrial, multiple dwellings, or unrestricted uses, $30.00 per
acre or any fraction thereof.
200
F. Minor Plat: (one lot with existing home or business): $150.00 filing fee.
G. Amending Plat:
1. Fee amount: $150 processing fee, and a $450 filing fee, plus $6.00 per lot
increase (No lot increase greater than six (6). For tracts, blocks, or areas
not divided into lots and to be used for commercial, industrial, multiple
dwellings, or unrestricted uses,
2. $30.00 per acre or any fraction thereof.
H. Re -plat:
1. Residential: Fee amount: $150 processing fee, and a $450 filing fee, plus
$6.00 per lot increase.
2. Commercial: Fee amount: $150 processing fee, and a $450 filing fee. For
tracts, blocks, or areas not divided into lots and to be used for commercial,
industrial, multiple dwellings, or unrestricted uses, an additional $30.00 per
acre or any fraction thereof.
I. Master Plat:
1. $150 processing fee, and a $450 filing fee, plus
2. The platting fee, as follows:
a. For residential purposes or dwelling units where lots are not designated on
the plat, $6.00 per designated lot, tract, or building site.
b. For tracts, blocks, or areas not divided into lots and to be used for
commercial, industrial, multiple dwellings, or unrestricted uses, $30.00 per
acre or any fraction thereof.
J. Recheck of Plats and Associated Construction Drawings:
1. Fee amount: $200.00
2. Payment deadline: Due upon or before resubmission of corrected plat or
drawing.
K. Second Submittal Fee: $200.00
L. Dedication Requirements for Neighborhood Parks in the City of Pearland
1. Land Requirements: Based on the 2013 population of 100,065 residents, the
current level of service is one (1) acre per 323 people.
2. 2.90 Persons per Household (PPH) for Single Family and 2.13 PPH for Multi -Family
201
based on Census information for owner and renter -occupied units.
Single Family
323 people/2.90 PPH = 111 DUs
Dedication Requirement:
1 Acre per 111 DUs
Multi -Family
323 people/2.90 PPH = 151 DUs
Dedication Requirement:
1 Acre per 151 DUs
M. Fee in Lieu of Land for Neighborhood Parks: (assumes 1 acre costs $136,000 to
purchase)
1. Single Family: $136,000/111 DUs = $1,225 per DU
2. Multi -Family: $136,000/151 DUs = $900 per DU
3. Park Development Fee: The cost of improvements in an average park in Pearland
is $630,520. One park serves 6,254 people, based on a total city population of
100,065 being served by 16 parks (count includes 10 neighborhood parks, 4
community parks, a nature trail, and a connectivity trail system as a singular unit).
Average cost is estimated to be $100.82 per person ($630,520/6,254) to develop a
typical park.
Single Family Multi -Family
$100.82 x 2.80 PPH = $292.378 per DU $100.82 x 2.13 PPH = $214.75 per DU
Total Park Fee
Single Family Multi -Family
$292 + $1,225 + $1,517 per DU $214 + $900 = $1,114 pre DU
A. 0 to less than 5 acres
B. 5 to less than 25 acres
C. 25 to less than 50 acres
D. 50 to less than 75 acres
E. 75 to less than 100 acres
F. 100 acres and over
CLUSTER PLANS
$1,800
$2,000
$2,400
$3,000
$3,800
$4,600
202
P & Z SUBDIVISION VARIANCE
A. $150 processing fee, plus a $250 filing fee
ZONING BOARD OF ADJUSTMENTS
FEE SCHEDULE
A. ZBA Applications for Variance, Special Exceptions, etc.
1. Residential $150 processing fee, plus a $350 filing fee
2. Commercial $150 processing fee, plus a $350 filing fee
ZONING VERIFICATION
LETTERS
A. Residential $ 25.00
B. Commercial $ 35.00
203
PROCESSING FEE
BASED ON PERMIT TYPE
Banner $10.00
Commercial $20.00
Demolition $20.00
Building Permit - Electrical $20.00
Fire Permits $20.00
Foster Homes $ 0.00
Irrigation $20.00
Mechanical $20.00
Moving $20.00
Plumbing $20.00
Residential Addition Alteration $20.00
Residential New Single Family $20.00
Residential New Two Family $20.00
Residential New Three or more Family $20.00
Swimming Pools $20.00
Signs $20.00
Tenant Occupancy $20.00
Annual Registration fee for contractors $ 0.00
204
BUILDING FEE SCHEDULE
A. Civil Site Work Permit
1. Fee Amount: Percent of construction value -- $16.50 for first $1,000.00;
$5.50 for each $1,000 or fraction thereof thereafter.
2. Payment Deadline: Due before issuance of site work permit.
B. Plan Check Fee:
1. Fee Amount: An amount equal to one-half of building or civil site work permit fee.
2. Payment Deadline: Due upon plan submission.
C. Building Permit:
1. Fee Amount: Percent of construction value -- $69.34 per square foot for commercial
or residential; $36.34 per square foot for detached garage.
2. Payment Deadline: Due before issuance of building permit.
D. Sign, Fence, and Miscellaneous Building Permits:
1. Fee Amount: Percent of construction value -- $16.50 for first $1,000.00;
$5.50 for each $1,000.00 or fraction thereof thereafter.
2. Payment Deadline: Due before issuance of building permit.
E. Water & Sewer Impact Fee:
1. Fee Amount: Based on most current applicable impact fee study at the time of
platting.
2. Payment Deadline:
a. If at existing building
(1) due before connection; or
(2) paid via 36-month payment plan with interest, subject to City
Managers approval.
b. If at new building, due before issuance of building permit.
205
F. Water & Sewer Pro-rata Fee (limited areas):
1. Fee Amount:
a. Park Street between Walnut and Pear Streets:
Lots 1-23 of Block 25 Lots 26-44 of Block 26
Water - $35429 per 25' Lot
($14.17 per linear foot)
$35429 per 25' Lot
($14.17 per linear foot)
Sewer - $537.83 per 25' Lot
($21 .51 per linear foot)
b. Pearland Parkway between Barry Rose Road and Mary's Creek:
Water - 96.9 acres at $776.00 per acre
Sewer - 360.2 acres at $584.33 per acre
c. FM 518 at FM 1128 west of Reid Boulevard:
North Side of FM 518 South Side of FM 518
Sewer- $44.60 per linear foot $53.91 per linear foot
d. Service Area 1 (South of Beltway 8, North of Clear Creek, West of
State Highway 288, and East of FM 521):
Water — 1,638 acres at $41.00 per acre
Sewer — 1,638 acres at $15.00 per acre
e. Service Area 2 (South of Broadway Street, North of County 59, East of County
Road 48, and West of State Highway 288):
Water - 521 acres at $74.00 per acre
Sewer — 2,221 acres at $33.00 per acre
206
2. Payment Deadline:
a. If platting, before approval of final plat.
b. If not platting, before issuance of building permit.
G. Water and/or Sewer Tap Fee:
1. Fee Amount: Actual cost, not less than $250.00.
2. Payment Deadline:
a. If at existing building, before connection.
b. If at new building, before issuance of building permit.
H. Pearland Parkway Street Light Charge:
1. Fee Amount: $1,200 .00 per pole.
2. Payment Deadline:
a. If platting, before subdivision acceptance.
b. If not platting, before issuance of certificate of occupancy.
I. Street Light Operation and Maintenance Escrow (Two Years):
1. Fee Amount: $16.00- $25 .00 per light per month (minimum = $384.00 per light).
2. Payment Deadline:
a. If platting, before subdivision acceptance.
b. If not platting, before issuance of certificate of occupancy.
J. Construction Inspection of Streets, Drainage, Water, and Sanitary Sewer Facilities for
New Subdivision Construction:
1. Fee Amount: One percent (1 %) of direct construction cost, not including
engineering, survey, testing, and contingencies.
2. Payment Deadline: payable prior to approval of final plat.
K. Traffic Impact Analysis Review/Thoroughfare Amendment Review Fee
207
1. Fee Amount: $750.00
2. Payment Deadline:
a. Development within City Limits:
(1) If platting, before approval of final plat.
(2) If not platting, before issuance of building permit.
b. Development in ETJ: Due before approval of final plat.
L. Variance Application Fee
a. Fee Amount: $250.00
b. Payment Deadline: Due at time of application.
M. Sidewalk Fee (In lieu of)
1. Fee Amount: The cost per square foot is $7.00 and changes to reflect the city
current contract price at any given time.
2. Due before approval of final plat or before Certificate of Occupancy.
208
RESIDENTIAL BUILDING PERMIT - ELECTRICAL FEE SCHEDULE
For new residential projects.
A. The Electrical Permit fee shall be calculated using the following formula based on the
gross square footage:
1,000 Square Feet or less = $80.00
1,001 Square Feet to 2,000 Square Feet = $80.00 for the first 1000 Square Feet +
$6.50 per 100 square feet or fraction thereof in excess of 1,000 square feet.
2,001 square feet and greater = $145.00 for the first 2,000 square feet + $6.50 per
100 square feet or fraction thereof in excess of 2,000 square feet.
COMMERCIAL BUILDING PERMIT - ELECTRICAL FEE SCHEDULE
For commercial projects and residential additions, alterations and expansion.
A. The Electrical Permit fee shall be calculated using the following formula based on the
valuation of the improvement:
$1.00 to $2,000.00 = $50.00
$2,000.01 to $50,000.00 = $50.00 for the first $2000.00 + $2.25 for each
additional $1,000.00 or fraction thereof.
$50,000.01 to $500,000.00 = $158.00 for the first $50,000.00 + $2.75 for each
additional $1,000.00 or fraction thereof.
$500,000.01 and greater = $1,395.50 for the first $500,000.00 + $3.25 for each
additional $1,000.00 or fraction thereof.
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RESIDENTIAL MECHANICAL PERMIT FEE SCHEDULE
For new residential projects.
A. The Mechanical Permit fee shall be calculated using the following formula based on
the gross square footage:
1,000 Square Feet or less = $80 00
1,001 Square Feet to 2,000 Square Feet = $80 00 for the first 1000 Square Feet +
$6.50 per 100 square feet or fraction thereof in excess of 1,000 square feet.
2,001 square feet and greater = $145.00 for the first 2,000 square feet + $6 50 per
100 square feet or fraction thereof in excess of 2 000 square feet.
COMMERCIAL MECHANICAL PERMIT FEE SCHEDULE
For commercial projects and residential additions, alterations and expansion.
A. The Mechanical Permit fee shall be calculated using the following formula based on
the valuation of the improvement:
$1.00 to $2,000.00 = $50.00
$2,000.01 to $50,000.00 = $50.00 for the first $2000.00 + $2.25 for each additional
$1,000.00 or fraction thereof.
$50,000.01 to $500,000.00 = $158.00 for the first $50,000.00 + $2.75 for each
additional $1,000.00 or fraction thereof.
$500,000.01 and greater = $1,395.50 for the first $500,000.00 + $3.25 for each
additional $1,000.00 or fraction thereof.
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RESIDENTIAL PLUMBING FEE SCHEDULE
For new residential projects.
A. The Plumbing Permit fee shall be calculated using the following formula based on the
gross square footage:
1,000 Square Feet or less = $80.00
1,001 Square Feet to 2,000 Square Feet = $80.00 for the first 1000 Square Feet + $6.50
per 100 square feet or fraction thereof in excess of 1,000 square feet.
2,001 square feet and greater = $145.00 for the first 2,000 square feet + $6.50 per 100
square feet or fraction thereof in excess of 2,000 square feet.
COMMERCIAL PLUMBING FEE SCHEDULE
For commercial projects and residential additions, alterations and expansion.
A. The Plumbing Permit fee shall be calculated using the following formula based on the
valuatl ion of the improvement:
$1.00 to $2,000.00 = $50.00
$2,000.01 to $50,000.00 = $50.00 for the first $2000.00 + $2.25 for
each additional $1,000.00 or fraction thereof.
$50,000.01 to $500,000.00 = $158.00 for the first $50,000.00 + $2.75
for each additional $1,000.00 or fraction thereof.
$500,000.01 and greater = $1,395.50 for the first $500,000.00 + $325
for each additional $1,000.00 orfraction thereof.
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MISCELLANEOUS FEES
A. Garage Sale Permit $ 20.00
B. Occupancy Permit $ 50.00
C. Re- inspection Fee $ 35.0075.00
D. Returned Check Fee $ 25.00
E. Waiver of Encroachment
1. General Utility Easement $250.00
2. City Right -of -Way or Easement $500.00
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FEE SCHEDULE
EMS
Ambulance Application Fee (per company)
Ambulance Permit Fee (per ambulance)
Ambulance Re -inspection Fee
FIRE
Re -inspection Fees
1st Re -inspection
2nd Re -inspection
3rd Re -inspection and thereafter, each
After hours Inspection
(After 5:00pm Monday -Thursday; after 4:00pm
on Friday, and on weekends)
$250.00
$100.00
$75.00
$ 75.00
$ 75.00
$200.00
$200.00
POLICE
Accident Report $ 6.00
(As may be amended from time to time by State Statute)
Notarized Accident Report $ 8.00
(As may be amended from time to time by State Statute)
Clearance Letter $ 5.00
(As may be amended from time to time by State Statute)
Copies $ 0.10 per page
CD/DVD $ 1.00
Crafted Precious Metal Dealer License fee $100.00 annually
Alarm Permit:
Residential Rates provided in
Commercial Ordinance No 569-3
False Alarm Fee:
Police Department (per occurrence after 5 per yr)
Fire Department (per occurrence after 5 per yr)
UTILITY BILLING
Delinquent Fees:
First Time Reconnect
Subsequent Reconnect Charges
"Red Flag" Identity Report
Connect Fee
Rates provided in
Ordinance No 569-3
$ 30.00
$ 50.00
$ 3.00
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residential $ 30.00
commercial/industrial/builders $ 50.00
Deposits:
Commercial $200.00
Residential Owner $100.00
Residential Renter $185.00
Residential Garbage Only $ 50.00
Additional deposit for services terminated twice within six months
Residential $ 75.00
Commercial S 170.00
Meter Cost: New/Replacement
5/8" $271.00
1" $328.00
2" Displacement $633.00
2" Compound $1,528.00
3" $8,555.00
4" $10,005.00
6" $13,402.00
8" (6 x 8) $14,605.00
10" $28,515.00
12" $29,693.00
(subject to change based on contract pricing)
New meters would also require deposit and connection fee
Register Replacement
Antenna Replacement
Meter Testing:
5/8 — 3/4" Meter
1" Meter
1 1/2" Meter
2"- 8" Meters
8" and above Meters
Same Day New Service Connections
Containment Traps
Including but not limited to grease, grit, grass, oil, lint and other contaminants.
Meter Inspection:
Initial
Re -inspection
$240.00
Based on cost
$ 80.00
$ 100.00
$100.00
$150.00
$200.00
$100.00
$100.00/year
$ 40.00
$ 75.00
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Temporary Fire Hydrant Meter
($100.00 non-refundable)
Temporary Fire Hydrant Location Change
Additional Recycling Cart
Temporary Connect/Disconnect Fee
Temporary Water/Sewer Service for
Residential Landlords/Property Managers
Water/Sewer Rates
$1,500.00
$ 50.00
$ 60.00
$ 10.00
$50 for ten days, up to
2,000 gallons and connection
Base (Single Unit by Meter Size)
Water
Sewer
5/8"
$15.30
$22.74
3/4"
$15.30
$22.74
1"
$25.49
$37.89
1 1/2"
$50.99
$75.79
2"
$81.58
$121.26
3"
$152.96
$227.37
4"
$254.93
$378.95
6"
$509.86
$757.90
8"
$815.78
$1,212.63
10"
$1,172.68
$1,743.16
Multi -Unit (per unit)
$15.30
$22.74
Residential Volumetric
0 - 2,000 gallons
In base
In base
2,001 - 6,000 gallons
$3.94
$5.00
6,001 - 15,000 gallons
$4.93
$5.00
15,001 - 25,000 gallons
$5.92
$5.00
25,001+ gallons
$7.89
$5.00
Commercial/Multi-Unit Volumetric
0 - 2,000 gallons
In base
In base
2,001+ gallons
$4.93
$5.00
Irrigation Volumetric
0 - 2,000 gallons
In base
2,001+ gallons
$5.92
Residential Wastewater Cap
Standardized monthly billing amount (gallons) to be based on the average consumption of the months of December,
January, February, which are typically billed in Jan, Feb, Mar, not to exceed 12,000 gallons. Wastewater Cap would be
adjusted each April.
New Residents
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Default billing amount (gallons) of 6.000 gallons
Billing Adjustments
Water adjustments may be given for leaks, excluding irrigation leaks for all customers. Residential customer sewer
rates are adjusted as set by the Winter Quarter Average. See Ordinance 870-6
Customer without metered water
Default billing amount (gallons) of 10,000.
Customer outside City Limits
All charges for water and sewer service are at a rate of 1 % times that existing in the City.
Sewer Use Credit Program
Application Fee
Monthly Administrative Charge
Annual Testing Fee
$500.00
$ 50.00
See Above
If repairs are needed, in addition to the testing fee, there will be charges for labor and parts,
plus retesting fee of $75.00
Accounts opened for the purpose of the sewer use credit for sub -metering will not be required to
put down a deposit nor billed water or sewer rates.
FINANCE
NSF or Returned Check/Credit Card Fee $ 25.00
ENGINEERING
Grading Permit
After Hours/Weekend Inspections
Holiday Inspections
PUBLIC WORKS
Water Tap Fee's
All taps include meter, cts, corporation, saddle, curb stop and meter box.
3 " Short Tap
3 " Long Tap
3 " U-branch Assy w/2nd 3 meter
1" Short Tap
1"Long Tap
2" Short Tap
2" Long Tap
$125.00
$ 60.00/hr
$ 75.00/hr
$1,200.00
$1,400.00
$800.00 + added cost if needed
$1,300.00
$1,500.00
$3,200.00
$3,400.00
Gravity Sewer Tap Fee's
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4" Short Tap
4" Long Tap
Force Main Tap Fee's
2" Short Tap
2" Long Tap
$ 900.00
$1,400.00
$1,200.00
$1,500.00
Additional Cost if applicable
Restoration — Sod $ 75.00
(Includes prep & install of 10' x 10' area of sod)
Restoration — Sidewalk & Sod $ 285.00
(Includes prep & install of 4' wide x 6' long sidewalk and 10' x 10' area of sod)
Traffic Control $ 225.00
(Rental cost of 3 water filled barriers or rental of 2 static message boards for 1 month)
Commercial Meter Deposit $ 100.00
Banner Deposit
Banner Installation Fee
$ 50.00
$400.00
CITY SECRETARY
Copy Charge: (pursuant to State law, including but not limited to and as may be amended from time to time by State
Statute)
Paper $ 0.10
Oversize Paper $ 0.50
Diskette $ 1.00
Magnetic tape Actual Cost
Data Cartridge Actual Cost
Tape Cartridge Actual Cost
Rewritable CD (CD-RW) $ 1.00
Non-rewritable CD (CD-R) $ 1.00
Digital video disc (DVD) $ 3.00
JAZ Drive Actual Cost
Other electronic media Actual Cost
VHS cassette $ 2.50
Audio cassette $ 1.00
Oversize paper copy $ 0.50
Specialty paper Actual Cost
Labor charge $ 15.00
Overhead 20% of labor
Alcohol Beverage Permit:
BE -On Premise
BQ -Wine & Beer Off -Premise
BF -Off Premise
BG-Wine&Beer On -Premise that hold a Food/Bev. Permit
BL - Late Hours On -Premise
$150.00
$ 60.00
$ 60.00
$175.00
$250.00
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PE -Cartage
LB -Late Hours Mixed Beverage
RM - Mixed Beverage Restaurant
BP -Brew Pub License
P -Package Store
PS - Package Store Tasting Permit
X - General Class B Wholesaler's Permit
0 - Private Carrier's Permit
G - Winery Permit
GF - Winery Festival Permit
Peddlers Permit
Primary Permit Holder
Assistant working under primary
Surety Bond (required)
$ 20.00
$150.00
$750.00
$500.00
$500.00
$ 25.00
$300.00
$ 30.00
$ 75.00
$ 50.00
$ 75.00 max of 3 mo.
$ 5.00/mo. per assistant
$1,000.00
ANIMAL CONTROL
15t impound $ 30.00
2nd impound $ 40.00
3rd impound $ 50.00
Adoption unaltered $ 35.00
Transportation $ 5.00
Adoption altered with Rabies $ 90.00
Adoption altered w/out Rabies $ 75.00
Livestock impound per head $125.00
2nd impound $150.00
3rd impound $200.00
Quarantine impound $ 60.00
Daily board domestic $ 10.00 per day
Daily board livestock $ 30.00 per day
City License
Altered one year $ 10.00
3 year $ 30.00
Un-altered one year $ 30.00
3 year $ 80.00
Replacement tag $ 5.00
Dangerous Dog registration $100.00
Disposal Domestic Animals
Up to 25 Ibs $ 30.00
26 Ibs to 60 Ibs $ 60.00
61 Ibs and over $ 90.00
Large animal contract $200.00 and up
Euthanasia on demand $ 60.00
Surrender of owned pet $ 50.00
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Cat carrier
Collar - nylon
Collar — leather
Micro -chip implant includes pet registration
PARKS & RECREATION
Non-resident fees for Household & Hazardous Waste
Non-resident fees for Electronic Waste
Non-resident fees Programs and Leagues
Resident Non-resident
Fee fee
Cost less 20% discount Program Cost
*Flat rate schedule for league registration; no discounts apply.
Non-resident fee for Senior Center
Resident fee for Senior Center
Transportation fees for the Melvin Knapp Senior Center (Specialty Trip)
Special Event Permit Fee
Deposits
Centennial Park Pavilions
Southdown Park Pavilion
Independence Park Large Pavilion
Independence Park Barbeque Shelter
Independence Park Swimming Pool
Gazebo at City Hall
Westside Event Center Meeting Room
Westside Event Center Banquet Hall
Indoor rental cleaning Fee
Administrative fee for rental cancellations
Rental Fees
Outdoor
$ 5.00
$ 3.00
Cost + $4.00
$ 25.00
$80 per 100 pounds
$20 per 100 pounds
$ 50.00 per year
$ 25.00 per year
$ 2.00 round-trip
$ 50.00
$ 50.00
$ 50.00
$200.00
$100.00
$100.00
$ 50 .00
$140.00
$140.00
$180.00
$ 25.00
1/2 Day
Full Day
Facility
Resident
Non -Resident
Resident
Non -Resident
Centennial Park Pavilion
$60.00
$90.00
$120.00
$180.00
Southdown Park Pavilion
$60.00
$90.00
$120.00
$180.00
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Independence Park Large Pavilion
$180.00
$270.00
$360.00
$540.00
Independence Park BBQ Shelter
$90.00
$135.00
$180.00
$270.00
Gazebo at City Hall
$30.00
$60.00
Indoor
Facility
Non-profit
Resident
Non -Resident
Westside Event Center Meeting Room
$15.00/hr
$60.00/hr
$70.00/hr
Westside Event Center Banquet Hall
$60.00/hr
$85.00/hr
$95.00/hr
Athletic Field Usage Fees
Recognized Sports Associations
Deposit
Player Fee
Utility Fee
$500.00 per Season
$10.00 Res/$20.00 Non -Res
$150.00 per Month
Practices
Resident
Non -Resident
$15.00/hour
$25.00/hour
plus $10.00/hour for lights
plus $10.00/hour for lights
Games
Resident
Non -Resident
$20.00/hour
$30.00/hour
plus $10.00/hour for lights
plus $10.00/hour for lights
Price includes initial paint & dirt work
Tournaments
Resident
Non -Resident
$20.00/hour
$30.00/hour
plus $10.00/hour for lights
plus $10.00/hour for lights
plus $10.00/field for paint & dirt work
plus $10.00/field for paint & dirt work
Light schedule is as follows:
*** Lights are non-negotiable and in one hour increments. Tournament director must turn in
tournament schedule one week prior to tournament start date.
220
Daylight Savings - lights are turned on at 5 p.m.
Non -Daylight Savings - lights are turned on at 7 p.m.
Recreation Center and Natatorium
Initiation Fee, for all
Annual Membership with Contract
Category
Resident
Non -Resident*
Adult
$330.00
$495.00
Additional Person
$165.00
$247.50
Active Adult
$231.00
$346.50
Additional Active Adult
$110.00
$165.00
Household
$660.00
$990.00
Natatorium Only
Individual
$220.00
$330.00
Household
$440.00
$660.00
* Non -Resident Fee = resident rate + 50%
Monthly Membership without Contract
Category
Resident
Non -Resident*
Adult
$35.20
$52.80
Additional Person
$17.60
$26.40
Active Adult
$24.20
$36.50
Additional Active Adult
$12.10
$18.70
Household
$69.30
$104.50
Natatorium Only
Individual
$23.10
$35.20
Household
$46.20
$69.30
* Non -Resident Fee = resident rate + 50%
**Monthly Fee = annual divided by 12 + 50%
Recreation Center and Natatorium Membership includes facilities, drop in child care, basic health and fitness classes.
Natatorium Only membership includes access to the natatorium only.
$ 32.00
Trial Membership (one time per individual) $ 30.00 for 30 days
7 for 7 Trial $ 7.00 for 7 days
Locker Rentals (maximum rentals -10 lockers in each locker room)
Annual $100.00
Monthly $ 10.00
Group Exercise Punch Card (20 punches) $ 50.00
Daily Fees
18+ years of age
12 -17 years of age
$ 8.00
$ 5.00
221
3 -11 years of age $ 3.00
Family $ 12.00
Child Care $ 5.00
Definitions
Individual 12-59 years old
Active Adult 60+ years old
Household Up to 5 people residing in the same home
Additional Person addition to an existing membership/fee. Must reside in the same house as primary
Child 3-11 years old
Family Limit of 5 people and maximum 2 adults
Recreation Center Rental Rates
Non -Profit
Member
Resident
Non -Member
Non -Resident
Non -Member
Entire Facility
$225.00/hour
$450.00/hour
$675.00/hour
$900.00/hour
One Full Court
Hourly
$40.00/hour
$80.00/hour
$120.00/hour
$160.00/hour
Daily
$400.00/day
$800.00/day
$1,200.00/day
$1,600.00/day
Entire Gym
Hourly
$80.00/hour
$160.00/hour
$240.00/hour
$320.00/hour
Daily
$800.00/day
$1,600.00/day
$2,400.00/day
$3,200.00/day
One Multipurpose/
Activity Room
$33.00/hour
$65.00/hour
$98.00/hour
$130.00/hour
Entire Multipurpose/
Activity Room
$65.00/hour
$130.00/hour
$195.00/hour
$260.00/hour
Zone Meeting Room
$15.00/hour
$30.00/hour
$30.00/hour
$30.00/hour
Kidz Korner, The Zone, Gymnasium, Multipurpose Room, Track, Activity Room, Racquetball Courts, 2nd floor cafe area.
*Day = 12 hours
**Non -athletic events in the gymnasium will result in the following fees:
***Deposits - $140.00 for multipurpose rental space or 25% for party package or recreation space.
Floor covering
Party Package Rates
$100.00/court per day
222
1-10 Guests
11- 20 Guests
21- 30 Guests
31- 40 Guests
Resident Rate
$112.00
$152.00
$192.00
$232.00
Non- Resident Rate
$142.00
$182.00
$222.00
$272.00
Security
Number
Participants
< 75
75 - 200
251 - 500
501 - 1,000
> 1,000
COP Security Fee
(paid directly to officer at
beginning of event)
1 @ $30.00/hour when admission charged
1 @ $30.00/hour when admission charged
2 @ $30.00/hour
2 @ $30.00/hour
2 @ $30.00/hour
COP Custodial Fee
$100.00/day
$200.00/day
$350.00/day
$450.00/day
$600.00/day
COP P & R Aquatics Supervision (CPO/AFO) Fee (500 + events only)
Day Timing System (one system) (If operator is included then additional staff charges
will apply)
Events Requiring 50-meter configuration will require an additional set-up fee
Special Note: 2 parking lot attendants are required for all events with an anticipated 500+ total
Attendants are paid directly at $15 per hour.
* Custodial fee includes the additional cleaning supplies and inventory to support the rental as well
as any staff needed to manage the cleaning of restrooms, trash, stands, etc.
**For large rental/meets (over 500+) an additional "Extra Heavy Cleanup/Restoration Fee" of
$250.00 will be assessed.
Health
Fees for Health Certificates and Re -inspection on Food Related Establishments
Full Service
Limited Preparation
1 - 4 employees
$150.00
$125.00
5 - 9 employees
$200.00
$150.00
10 - 25 employees
$350.00
$200.00
26 - 50 employees
$500.00
$225.00
51 - 100 employees
$600.00
$250.00
101 or more employees
$750.00
$250.00
Foster homes
$50.00
Prepackaged Only
$150.00
Mobile Units
$225.00
Additional units
$225.00
Produce Vendor
$100.00
Schools / Daycares
$125.00
Temporary fees for Special Events
$50.00
Event Staff
$50.00
$50.00
$100.00
$150.00
$200.00
$35/hour
$200.00/day
$150.00
attendance.
223
Pre -opening inspection fee
$100.00
Re -inspection Fee for failing initial inspection
$75.00
224
GLOSSARY
A
ABATEMENT — A complete or partial cancellation of a levy imposed by a government. Abatements usually apply to
tax levies, special assessments and service charges.
ACCOUNT — A term used to identify an individual asset, liability, expenditure control, revenue control, encumbrance
control, or fund balance.
ACCOUNTS PAYABLE — A short-term liability account reflecting amounts owed to private persons or organizations
for goods and services received by a government.
ACCOUNT RECEIVABLE —An asset account reflecting amounts due from private persons or organizations for goods
and services furnished by a government.
ACCOUNTING SYSTEM — The total set of records and procedures, which are used to record, classify, and report
information on the financial status and operations of an entity.
ACCRUAL ACCOUNTING — A basis of accounting in which revenues are recognized in the period in which they are
earned and become measurable, and expenses are recognized in the period incurred instead of when cash is actually
received or spent.
ACCRUED INTEREST — Interest that has been earned and recorded, but has not been received.
AD VALOREM TAX — A tax based on value of land and improvements (property tax).
AGENDA —A formal listing of items to be discussed during a public meeting. Agendas for public meetings are posted
72 hours in advance, in compliance with the open meetings act.
APPROPRIATION — An authorization granted by City Council to make expenditures and to incur obligations for a
specific purpose. Usually limited in amount and as to the time when it may be expended.
ARBITRAGE — With respect to the issuance of municipal securities, arbitrage usually refers to the difference between
the interest paid on tax-exempt bonds and the interest earned by investing the proceeds of the bonds in higher -
yielding taxable securities. Federal income tax laws generally restrict the ability to earn positive arbitrage in
connection with tax-exempt bonds.
ASSESSED VALUATION — A valuation set upon real estate or other property by government as a basis for levying
taxes.
ASSETS — Property owned by a government, which has economic value, especially which could be converted to
cash.
AUDIT — A standardized, systematic and independent examination of data, statements, records, operations and
performances of an enterprise for the purpose of examining for compliance with standardized procedures for
managing cash on hand, receipts, payments, investments, and other allocations of monetary resources, capital
assets or the use of personnel time and expertise.
BALANCE SHEET — A statement purporting to present the financial position of an entity by disclosing the value of
its assets, liabilities, and equities as of a specified date.
BALANCED BUDGET — Total recurring expenditures for any fiscal year shall not exceed total recurring revenues for
that same fiscal year.
BOND — A written promise to pay a specified sum of money, called the face value or principal amount, at a specified
date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate.
225
BOND REFERENDUM — A bond referendum is an opportunity for voters to decide if the city will be authorized to
borrow funds to address specific capital project needs for which ad valorem taxes are pledged for repayment.
BUDGET — A plan of financial operation embodying an estimate of proposed expenditures for a given period and the
proposed means of financing them. The term is also sometimes used to denote the officially approved expenditure
ceiling under which a government and its departments operate.
BUDGET CALENDAR — The schedule of key dates or milestones, which a government follows in the preparation
and adoption of the budget.
BUDGET DOCUMENT — The instrument used by the budget making authority to present a comprehensive financial
program to the appropriating governing body.
BUDGET INSTRUCTIONS — The guidance document produced by the City's financial management unit, for use by
departmentally -authorized personnel, establishing the annual practices and procedures for developing and submitting
a proposed budget for approval by the City's governing body.
BUDGET MESSAGE — A general discussion of the adopted budget presented in writing as a part of or supplement
to the budget document.
BUDGETARY CONTROL — The control or management of a government or enterprise in accordance with an
approved budget to keep expenditures within limitations of available appropriation and available revenues.
BUILT ENVIRONMENT — Human -made (vs natural) improvements such as infrastructure, buildings, parks, etc.
C
CAPITAL ASSETS — Long-term assets, such as buildings, equipment, and infrastructure, intended to be held or used
in operations.
CAPITAL PROJECTS — Acquisition or construction of major capital facilities.
CAPITAL IMPROVEMENT PROGRAM — A plan for capital expenditures to be incurred each year over a fixed period
of several future years setting forth each capital project, identifying the expected beginning and ending date for each
project, the amount to be expended in each year, and the method of financing those expenditures.
CAPITAL OUTLAY — Expenditures for the acquisition of capital assets.
CAPITAL PROJECT FUNDS — Capital Project Funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by proprietary funds, special
assessment funds and trust funds).
CARRYOVER — Expenditures budgeted in one year for materials, equipment programs, etc., but not spent until the
following fiscal year. Funding for non -recurring expenditures can carry over to the following fiscal year if approved by
the City Manager and City Council. City Council formally amends the budget to approve carryover funding. Revenues
can also carryover if they were anticipated in one fiscal year but not received until the following year.
CASH BASIS — A method of accounting in which revenues and expenses are recognized and recorded when
received, not necessarily when earned.
CERTIFICATE OF DEPOSIT — A negotiable or non-negotiable receipt for monies deposited in a bank or other
financial institution for a specified period for a specified rate of interest.
CERTIFICATE OF OBLIGATION — A debt instrument that is issued by the City and has the same legal status as a
general obligation bond. Proceeds from the issuance of the certificates may be used for the construction of public
works or payment of contractual obligations for professional services. These certificates do not require voter
approval.
CHARTER — Written instrument setting forth principles and laws of government within boundaries of the City.
CHART OF ACCOUNTS — The classification system used by the City to organize the accounting for various funds.
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CHECK — A bill of exchange drawn on a bank and payable on demand.
COMPONENT UNIT — A component unit is defined as a legally separate organization for which elected officials of
the primary government (the City) are financially accountable.
CONSUMER PRICE INDEX (CPI) — The monthly data on the changes in the prices paid by urban consumers for a
representative basket of goods and services.
CONTINGENCY — Funds set aside in a reserve account for major expenditures or for emergencies.
COST — The amount of money or other consideration exchanged for property or services. Costs may be incurred
even before money is paid; that is, as soon as a liability is incurred. Ultimately, however, money or other consideration
must be given in exchange.
CURRENT ASSETS — Cash and other assets expected to be converted to cash, sold, or consumed either in a year
or in the operating cycle.
CURRENT LIABILITIES — Debt or other legal obligations arising out of transactions in the past which must be
liquidated, renewed or refunded within one year.
DEBT SERVICE FUND — A fund used to account for the accumulation of resources for, and the payment of, general
long-term debt principal interest, and related costs. Also called a Sinking Fund.
DEFICIT — The excess of expenditures over revenues during an accounting period; or in the case of Enterprise and
Intra-governmental Service Funds, the excess of expense over income during an accounting period.
DEPARTMENT — A distinct, usually specialized division of a large organization. A principal administrative division of
a government normally under the oversight of an Executive Director, Assistant City Manager or City Manager.
DELINQUENT TAXES —Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached.
DEPRECIATION — A non -cash expense that reduces the value of an asset as a result of wear and tear, deterioration,
action of the physical elements, inadequacy or obsolescence.
DEVELOPER REIMBURSEMENT — Reimbursement to a developer from the City for infrastructure developed on
behalf of the City.
E
EFFECTIVE TAX RATE — The tax rate required to generate the same amount of revenue as in the preceding year
on the same properties.
ENTERPRISE FUND — A fund used to account for the acquisition, operation and maintenance of governmental
facilities and services which are entirely or predominantly self-supporting by user charges. The significant
characteristic of Enterprise Funds is that the accounting system must make it possible to show whether the activity
is operated at a profit or loss, similar to comparable private enterprises. Thus, the reports of enterprise funds self-
contained and creditors, legislators or the general public can evaluate the performance of the municipal enterprise
on the same basis as they can the performance of investor -owner enterprises in the same industry.
EXPENDITURES — Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of
goods received or services rendered whether cash payments have been made or not. Where accounts are kept on
a cash basis, expenditures are recognized only when the cash payments for the above purposes are made.
EXTRATERRITORIAL JURISDICTION (ETJ) — The land bordering a City's limits that the City has limited control
over but does not furnish City services to nor collect ad valorem taxes from. This is an area outside of City limits that
is subject to annexation.
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F
FIDUCIARY FUND — A fund used to account for assets held in trust by the City for the benefit of individuals or other
entities and is responsible for handling the assets placed under its control.
FISCAL YEAR — A twelve-month period of time to which the annual budget applies, and at the end of which, the City
determines its financial position and results of operations.
FIXED ASSETS — Long-lived tangible assets obtained or controlled as a result of past transactions, events or
circumstances. Fixed assets include buildings, equipment, and improvements other than land.
FRANCHISE — A special privilege granted by a government, permitting the continued use of public property, such as
City streets, and usually involving the elements of monopoly and regulation.
FULL-TIME EQUIVALENT (FTE) — One full-time equivalent works 2,080 hours a year; a person working 1,040 hours
per year is equivalent to 0.5 FTE.
FUND — An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or
other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the
purpose of carrying on specific activities or attaining certain objective.
FUND BALANCE — The excess of an entity's assets over its liabilities.
FUND BALANCE POLICY — A minimum fund balance that is required to be kept in reserve as defined in financial
policy statements. Fund balances over the policy requirements may be appropriated in the budget.
G
GENERAL FIXED ASSETS — Capital assets that are not assets of any particular fund, but of the government unit as
a whole. Most often these assets arise from the expenditure of the financial resources of governmental (as opposed
to proprietary or fiduciary) funds.
GENERAL FUND — The General Fund is the general operating fund of the City. It is used to account for the resources
devoted to finance the services traditionally associated with local government, except those activities that are required
to be accounted for in another fund. Transactions are recorded on the modified accrual basis.
GENERAL OBLIGATION BONDS — When a government pledges its full faith and credit to the payment of the bonds
it issues, those bonds are general obligation bonds.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) — Uniform minimum standards and guidelines for
financial accounting and reporting.
GOVERNMENTAL FUNDS — Funds generally used to account for tax -supported activities. The acquisition, use and
financial resources and the related current liabilities are accounted for through governmental funds (General, Special
Revenue, Capital Projects and Debt Service).
GRANTS — A contribution by one government unit to another. The contribution is usually made to aid in the support
of a specific function, purpose, activity or facility.
GULF COAST WATER AUTHORITY — Created by the State Legislature in 1965, its main mission is to acquire water
supplies, store, transport, treat and purify, sell and deliver water, both surface and underground, for industry,
agriculture and municipalities in Brazoria, Fort Bend, and Galveston Counties.
IMPACT FEES — Fees charged to developers to cover in whole or in part, the anticipated cost of improvements that
will be necessary as a result of the development.
INCOME — A term used in proprietary fund -type accounting to represent (1) revenues or (2) the excess of revenues
over expenses.
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INFRASTRUCTURE - Fixed assets that are immovable and have value only to the governmental unit. Common
examples of infrastructure include roads, sidewalks, bridges and streetlights.
INTERGOVERNMENTAL REVENUE — Revenue received from another governmental unit for a specific purpose.
INTERNAL SERVICE FUND — Internal Service Funds are used to account for the financing of goods or services
provided by one fund or department to another fund or department on a cost reimbursement basis.
ISO RATING — The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting
up the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to
each fire department, which is used in the development of insurance rates for all properties within the protected area.
Grading starts at 1, which is the best possible score and ends at 10, which is considered unacceptable.
L
LEASE/PURCHASE — A financing tool utilized to fund large capital outlays where the city may not have cash
immediately available for purchase. This arrangement allows the city to use the item while payments are being made.
LEDGER — A group of accounts in which are recorded the financial transactions of a governmental unit or other
organization.
LEVY — To impose taxes or special assessments. The total of taxes or special assessments imposed by a
governmental unit.
LIABILITIES — Debt or other legal obligations arising out of transactions in the past, which must be liquidated,
renewed or refunded at some future date.
LONG-TERM DEBT — Debt with a maturity of more than one year after date of issuance.
M
MODIFIED ACCRUAL BASIS — The basis of accounting under which expenditures other than accrued interest on
general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in
cash, except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and
revenue earned.
MUNICIPAL UTILITY DISTRICT (MUD) — A special district whose purpose is to provide water and sewer services to
the residences and businesses within its boundaries. The district has ad valorem taxing power and can issue bonds
to pay for construction and improvements to the district's system. Districts are typically established in unincorporated
areas, but can also lie within the boundaries of one or more cities.
N
NOTE PAYABLE — An unconditional written promise signed by the maker, to pay a certain sum in money on demand
or at a fixed or determinable future time, either to the bearer or to the order of a person designated.
0
OPERATING BUDGET — Plans of current expenditures and the proposed means of financing them.
ORDINANCE — A formal legislative enactment by the governing body of a municipality.
ORGANIZATIONAL UNIT — A responsibility center within a government.
P
PERFORMANCE MEASURES — Specific quantitative measures of work performed within an activity or program.
They may also measure results obtained through an activity or program.
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PERSONNEL SERVICES — The costs associated with compensating employees for their labor (salaries, wages,
insurance, payroll taxes, and retirement contributions).
PROJECTION — A forecast of future trends in the operation of financial activities done through the remainder of the
fiscal year to gain a better picture of the City's finances. The projections are adopted as the revised budget during
the budget adoption process.
PROPERTY INSURANCE FUND — Accounts for the activities of the city's property and casualty insurance.
PROPERTY TAX — An annual or semi-annual tax paid to one or more governmental jurisdictions based on the real
and personal property's assessed valuation and the tax rate, done in compliance with the State Property Tax Code.
PROPRIETARY FUND — A governmental accounting fund having profit and loss aspects; therefore, it uses the
accrual rather than modified accrual accounting method. The two types of proprietary funds are the Enterprise Fund
and the Internal Service Fund.
PURCHASE ORDER — A document issued to authorize a vendor or vendors to deliver specified merchandise or
render a specified service for a stated estimated price.
R
RATINGS — Designations used by credit rating agencies to give relative indications of credit quality. Municipal bonds
rated Baa or BBB and above are considered to be investment -grade.
REFUNDING BONDS — Bonds issued to retire bonds already outstanding.
RESERVE — An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or
not available for appropriation and subsequent spending.
RETAINED EARNINGS — The accumulated earnings of an enterprise or internal service fund which have been
retained in the fund and which are not reserved for any specific purpose.
REVENUES — The term designates an increase to a fund's assets. An item of income.
REVENUE BONDS — Bond whose principal and interest are payable exclusively from earnings of an enterprise fund.
ROLLBACK RATE — A taxing units rollback tax rate is a calculated rate that divides the overall property taxes into
two categories - M&O and debt service. If a unit adopts a tax rate that is higher than the rollback rate, voters in the
unit can circulate a petition calling for an election to limit the size of the tax increase.
S
SALARIES & WAGES — Fixed compensation paid to employees for work or services provided.
SALES TAX — A state tax of 6.25% is imposed on all retail sales, leases and rentals of most goods, as well as taxable
services. Texas cities and counties have the option of imposing additional local sales taxes for a combined total of
state and local taxes of 8.25%.
SHORT-TERM DEBT — Debt with a maturity of one year or less after the date of issuance.
SPECIAL ASSESSMENT — Used to account for the financing of public improvements or services deemed to benefit
the properties against which special assessments are levied.
SPECIAL REVENUE FUNDS — Fund is used to account for the proceeds of specific revenue sources (other than
expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes.
STRUCTURAL IMBALANCE — In the budgetary process of matching ongoing expenditures with ongoing revenues,
a condition that occurs when expenditures exceed revenues.
T
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TAX LEVY — The total amount to be raised by general property taxes for intentions specified in the Tax Levy
Ordinance.
TAX LEVY ORDINANCE — An ordinance through which taxes are levied.
TAX RATE — The rate at which a municipality may levy a tax. Tax levied for each $100 of assessed valuation. The
amount of tax stated in terms of a unit of the tax base.
TAX ROLL — The official list showing the amount of taxes levied against each taxpayer or property.
TAXES — Compulsory charges levied by a governmental unit for the purpose of financing services performed for the
common benefit.
V
VENDOR — The seller of merchandise or services.
VOUCHER — A document, which evidences the propriety of transactions and usually indicates the accounts in which
they are to be recorded.
W
WORK ORDER — A written order authorizing and directing the performance of a certain task and issued to the person
who is to direct the work.
WORKING CAPITAL — A financial metric which represents operating liquidity available to an organization or
governmental entity. Net Working Capital is calculated as current assets minus current liabilities.
Y
YIELD — The rate earned on an investment based on the price paid for the investment, the interest earned during the
period held and the selling price or redemption value of the investment.
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ACRONYMS
ACM — Assistant City Manager FF — Firefighter
ACS — American Community Survey FF&E — Furniture, Fixtures & Equipment
ADA — Americans with Disabilities Act of 1990 FIRMS — Flood Insurance Rate Maps
AISD — Alvin Independent School District FLSA — Fair Labor Standards Act
BCLS — Brazoria County Library System FM — Farm -to -Market Road
CAFR — Comprehensive Annual Financial Report FOIA — Freedom of Information Act of 1966
CDBG — Community Development Block Grant FOG — Fats Oil Grease
CH — City Hall FS — Fire Station
CIP — Capital Improvement Program FT — Full -Time
CM — City Manager FTE — Full -Time Equivalent
CO's — Certificates of Obligation and Certificates of FY — Fiscal Year
Occupancy
GAAP — Generally Accepted Accounting Principles
CPA— Certified Public Accountant
GASB — Governmental Accounting Standards Board
CPAP — Continuous Positive Airway Pressure
GF — General Fund
CPI — Consumer Price Index
GFOA — Government Finance Officers Association of
CPR — Cardiopulmonary Resuscitation the United States and Canada
CR — County Road GIS — Geographical Information Systems
CVB — Convention and Visitors' Bureau GO's — General Obligation Bonds
DCM — Deputy City Manager GCWA — Gulf Coast Water Authority
DDACTS — Date Driven Approaches to Crime and GPS — Global Positioning System
Traffic Safety
HERO — Housing Enforcement & Rehab Opportunity
DS — Debt Service
HGAC — Houston -Galveston Area Council
DWI/DUI — Driving While Intoxicated/Driving Under
the Influence HHW — Household Hazardous Waste
EDC — Economic Development Corporation HIDTA — High Intensity Drug Trafficking Area
EMPG — Emergency Management Program Grant HR — Human Resources
EMS — Emergency Medical Services HTE — Harward Technology Enterprise (The City's
previous ERP, by Sungard)
EMT — Emergency Medical Technician
HUD — Housing and Urban Development
ERP — Enterprise Resource Planning
HVAC — Heating, Venting & Air Conditioning
ESL — English as a Second Language
ICC — International Code Council
ETJ — Extra Territorial Jurisdiction
l&I — Inflow and Infiltration
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IS — Information Systems
ISO — Insurance Service Office
IT — Information Technology
ITS — Intelligent Traffic System
JAT — Job Assessment Tool
JHEC — John Hargrove Environmental Complex
KPB — Keep Pearland Beautiful
LF — Linear Feet
LKMD — Lower Kirby Management District
LS — Lift Station
LTD — Limited
LUCAS — Lund University Cardiac Arrest System
M — Millions
MDT — Mobile Data Terminal
MGD — Million Gallons per Day
MHI — Median Household Income/Mitsubishi Heavy
Industries
MSA — Metropolitan Statistical Area
MUD — Municipal Utility District
NIC — Net Interest Costs
NWS — New World Systems (The City's new ERP)
O&M — Operations & Maintenance
P&Z — Planning & Zoning
PC - Personal Computer
PCI — Pavement Condition Index
PD — Police Department
PEDC — Pearland Economic Development
Corporation
PEG — Public, Educational and Government Channel
(television)
PER — Preliminary Engineering Report
PFIA— Public Funds Investment Act
PGSA — Pearland Girls Softball Association
Phs — Phase (as in construction phase I, II)
PHS — Pearland High School
PISD — Pearland Independent School District
PMMD — Pearland Municipal Management District
PSB — Public Safety Building
PT — Part-time
PTC — Pearland Town Center
QA/QI — Quality Assurance/Quality Improvement
RC/N — Recreation Center/Natatorium
RD — Radio Detection
ROW — Right -of -Way
ROWs — Right -of -Ways
RSA— Recognized Sports Association
S&P — Standard & Poor's
SAN —Storage Area Network
SCADA — Supervisory Control and Data Acquisition
SCBA — Self Contained Breathing Apparatus
SCR — Shadow Creek Ranch
SEC — Securities and Exchange Commission
SF — Square Feet/Foot
SH288 — State Highway 288
SNAP — Safe Neighborhoods Around Pearland
SPA — Strategic Partnership Agreement
SQ. FT. - Square Foot/Feet
SRO — School Resource Officer
SUI — State Unemployment Insurance
SUV — Sports Utility Vehicle
TAAF — Texas Amateur Athletic Foundation
TCEQ — Texas Commission on Environmental
Quality
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TCLEOSE — Texas Commission on Law
Enforcement Officers Standards and Education
TCO — Telecommunications Operator
TCOLE — Texas Commission on Law Enforcement
Officers Standards and Education
TIC — True Interest Costs
TIP — Transportation Improvement Plan
TML — Texas Municipal League
TMRS — Texas Municipal Retirement System
TIRZ — Tax Increment Reinvestment Zone
TxDOT — Texas Department of Transportation
TWDB — Texas Water Development Board
UCR — Uniform Crime Reporting
UDC — Unified Development Code
UHCL — University of Houston -Clear Lake
UofH — University of Houston
W&S — Water & Sewer
W/S — Water & Sewer
WEC — Westside Events Center
WRF — Water Reclamation Facility
WWM — Waste Water Management
ZBA — Zoning Board of Adjustment
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PrepatheFuture
CITY OF PEARLAND, TEXAS
FISCAL YEAR
BUDGET
pearlandtx.gov
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Phone: 281.652.1600
pearlandtx.gov