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Ord. 1584 2019-09-16ORDINANCE NO.1584 An appropriation Ordinance adopting a budget for the fiscal year beginning October 1, 2019, and ending September 30, 2020, and pay plans for fiscal year 2020. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's proposed 2019-2020 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 2019-2020 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 2019-2020 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. PASSED and APPROVED ON FIRST READING this the 16th day of September, A. D., 2019. TOM REID ,3• � MAYOR ATTEST: 11140r#1ra01100 b • `Lvdt, , 1 MARIA RODRIGUEZ INTERIM CITY SECRETAR ORDINANCE NO.1584 PASSED and APPROVED ON SECOND and FINAL READING this the 23 Id day of September, A. D., 2019. ATTEST: MARIA RODRIGUEZ INTERIM CITY SECRETAR APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY 2 TOM REID MAYOR Fund Description EXHIBIT A City of Pearland Fiscal Year 2019-2020 Budget Revenues Adopted Budget Ord No. 1584 Expenses Adopted Budget Ord No. 1584 100 General 86,934,676 86,211,511 200 Debt Service -General 39,458,628 40,009,589 900 PEDC 12,743,116 19,961,786 Special Revenue Funds 305 Hotel/Motel 1,460,800 1,101,346 310 Municipal Court Security 48,700 35,827 315 Citywide Donation 30,967 33,500 320 Court Technology 55,300 61,591 330 Parks Donations 128,000 122,500 331 Tree Trust 7,800 250,750 335 Police State Seizure 4,000 37,200 336 Federal Police 1,200 340 Park & Recreation Development 138,000 250,000 345 Sidewalk 5,200 - 350 Grant 350,810 351,395 351 Community Development 429,719 429,719 360 Traffic Impact Improvement 11,000 - 365 Court Juvenile Management 73,500 67,285 370 Municipal Channel 285,000 304,100 380 Regional Detention - - 510 Lower Kirby - - Internal Service Fund 700 Property/Liability Insurance 1,681,381 1,711,820 702 Medical Self -Insurance 8,268,030 8,431,053 703 Motor Pool 4,286,674 3,746,260 Proprietary Funds 600 Water and Sewer 60,547,396 56,575,666 610 Solid Waste 7,853,300 7,850,000 TOTALSUB OPERATIONS 224,803,197 IMPROVEMENTCAPITAL •• Water/Sewer Capital Projects Funds 550 Utility Impact Fee 1,000,000 6,042,525 551 Water Impact Fee 2,650,000 552 Sewer Impact Fee 2,125,000 555 Shadow Creek Impact Fee 10,000 667,023 565 1999 W & S Revenue Bonds 300,000 309,166 566 W & 5 Revenue Bonds 2020 46,677,000 46,375,223 567 Water Drinking Bonds 2020 108,100,000 106,009,402 568 W & S Revenue Bonds 2021 45,793,144 569 W & S Revenue Bonds 2022 30,738,396 570 Water/Sewer Pay As You Go 2,940,000 3,110,596 575 MUD 4 Capital Program Capital Projects Funds 500 Capital Projects 444,875 1,136,441 501 Capital Projects -CO 2001 1,775,000 1,386,775 503 Capital Projects -CO 2006 2,046 506 Capital Projects -GO 2009 31,804,828 32,161,962 507 Capital Projects -GO 2020 38,800,744 32,050,398 508 Capital Projects -CO 2020 23,720,237 23,691,769 509 Capital Projects -GO 2021 13,598,609 512 Capital Projects -CO 2021 7,405,928 513 Capital Projects -GO 2022 6,008,609 FY20 COP PAY PLAN -10/01/2019 Grade Minimum Market Maximum Class Title Most positions use 2080 hours however indicates positions to use 2756 hours in determining hourly rate. 103 $20,415.13 $24,497.55 $30,622.19 LIFEGUARD $9.81 $11.78 $14.72 104 $21,435.23 $25,722.68 $32,153.35 HEAD LIFEGUARD $10.31 $12.37 $15.46 106 $23,631.98 $28,358.78 $35,448.98 INTERN $11.36 $13.63 $17.04 RECREATION ATTENDANT SUMMER CAMP COUNSELOR WATER SAFETY INSTRUCTOR 107 $24,813.68 $29,776.82 $37,221.53 CUSTODIAN $11.93 $14.32 $17.89 108 $26,054.97 $31,265.56 $39,081.95 FACILITY ATTENDANT $12.53 $15.03 $18.79 110 $28,725.41 $34,470.29 $43,088.62 CAMP COORDINATOR $13.81 $16.57 $20.72 OFFICE ASSISTANT POLICE RECORDS CLERK 111 $30,161.63 $36,194.36 $45,242.95 ANIMAL SHELTER ATTENDANT $14.50 $17.40 $21.75 CUSTOMER SERVICE REPRESENTATIVE I DEPUTY COURT CLERK PARK MAINTENANCE WORKER PERMIT CLERK SIGN TECHNICIAN 112 $31,669.56 $38,003.27 $47,504.34 CUSTODIAL CREW LEADER $15.23 $18.27 $22.84 CUSTOMER SERVICE REPRESENTATIVE II RECORDS & INFORMATION COORDINATOR 113 $33,253.24 $39,904.09 $49,879.86 ACCOUNTS PAYABLE CLERK $15.99 $19.18 $23.98 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 $34,915.70 $41,898.84 $52,373.55 ADMINISTRATIVE ASSISTANT $16.79 $20.14 $25.18 EQUIPMENT OPERATOR JAILER LEGAL SECRETARY 115 $36,661.99 $43,993.58 $54,992.48 HEAVY EQUIPMENT OPERATOR $17.63 $21.15 $26.44 LEAD COURT SECURITY OFFICER QUARTERMASTER FY20 COP PAY PLAN -10/01/2019 Grade Minimum Market Maximum Class Title Most positions use 2080 hours however' indicates positions to use 2756 hours in determining hourly rate. 116 $38,495.14 $46,193.36 $57,742.71 ANIMAL CONTROL OFFICER $18.51 $22.21 $27.76 BACKFLOW COMPLIANCE INSPECTOR BUILDING MAINTENANCE TECHNICIAN CCTV TECHNICIAN CHIEF COURT CLERK CODE ENFORCEMENT / HEALTH OFFICER EXECUTIVE ASSISTANT HR COORDINATOR LEAD BILLING SPECIALIST JUVENILE CASE MANAGER MECHANIC PARK MAINTENANCE CREW LEADER PARK NATURALIST PRE-TREATMENT TECHNICIAN RECREATION SPECIALIST TREATMENT PLANT OPERATOR I UTILITY MAINTENANCE TECHNICIAN YOUTH DEVELOPMENT COORDINATOR 117 $40,419.19 $48,503.23 $60,629.29 ANIMAL SHELTER SUPERVISOR $19.43 $23.32 $29.15 COMMUNICATIONS SPECIALIST CRIME VICTIM LIAISON DEPUTY CITY SECRETARY IT SUPPORT SPECIALIST PAYROLL SPECIALIST PD - POLICE CADET ROW INSPECTOR TELECOMMUNICATIONS OPERATOR TRAFFIC SIGNAL TECHNICIAN 118 $40,419.19 $48,503.23 $60,629.29 ACCOUNTS PAYABLE SUPERVISOR $19.43 $23.32 $29.15 ADAPTIVE RECREATION SPECIALIST BUILDING INSPECTOR GIS TECHNICIAN HR SPECIALIST LEAD JAILER MAINTENANCE CREW LEADER PLANNING TECHNICIAN TREATMENT PLANT OPERATOR II URBAN FORESTER UTILITY FIELD SERVICE TECHNICIAN, LEAD UTILITY MAINTENANCE TECHNICIAN, SENIOR VOLUNTEER COORDINATOR 119 $44,562.21 $53,475.46 $66,843.82 AQUATICS SUPERVISOR $21.42 $25.71 $32.14 BUYER COMMUNITY OUTREACH COORDINATOR CONSTRUCTION INSPECTOR CRIME SCENE TECHNICIAN CUSTOMER SERVICE SUPERVISOR FACILITY SUPERVISOR ANIMAL CONTROL SUPERVISOR PLANNER I PLANS EXAMINER PW INFRASTRUCTURE LIAISON TELECOMMUNICATIONS TEAM LEADER FY20 COP PAY PLAN -10/01/2019 Grade Minimum Market Maximum Class Title Most positions use 2080 hours however' indicates positions to use 2756 hours in determining hourly rate. 120 $46,790.27 $56,148.93 $70,185.91 ADDRESSING COORDINATOR $22.50 $26.99 $33.74 BACKFLOW COMPLIANCE PROGRAM COORDINATOR CIP COORDINATOR EMERGENCY MANAGEMENT PLANNER ENGINEERING TECHNICIAN EXECUTIVE ASSISTANT, SENIOR PRETREATMENT COORDINATOR PROJECT COORDINATOR STAFF ACCOUNTANT 121 $49,130.44 $58,956.73 $73,695.66 ASSISTANT MANAGER, PERMITS & INSP $23.62 $28.34 $35.43 ELECTRICIAN PARK SUPERVISOR PLANNER II CHIEF INSPECTOR VIDEOGRAPHER/EDITOR 122 $51,586.76 $61,903.91 $77,380.14 BUDGET ANALYST $24.80 $29.76 $37.20 BUSINESS ADMINISTRATOR CONTRACT ADMINISTRATOR CRIME ANALYST GIS SPECIALIST MARKETING MANAGER NATURAL RESOURCE MANAGER OPERATIONS MANAGER RESOURCE DEVELOPMENT COORDINATOR SALES AND EVENT MANAGER SENIOR ACCOUNTANT SPECIAL EVENTS COORDINATOR STORMWATER COORDINATOR COMMUNICATIONS SUPERVISOR TREASURY ANALYST TREATMENT PLANT SUPERVISOR 123 $54,166.30 $64,999.56 $81,249.45 HR BUSINESS PARTNER $26.04 $31.25 $39.06 MAINTENANCE SUPERVISOR SAFETY OFFICER SENIOR PLANNER RECREATION PROGRAM MANAGER WATER B&C ASSISTANT MANAGER 123 F $54,166.30 $64,999.56 $81,249.45 FIREFIGHTER' $19.65 $23.58 $29.48 124 $56,874.11 $68,249.74 $85,311.67 ATHLETICS AND AQUATICS MANAGER $27.34 $32.81 $41.02 BUILDING MAINTENANCE SUPERVISOR DEVELOPMENT COORDINATOR FIRE INSPECTOR/INVESTIGATOR SENIOR BUDGET ANALYST HEALTH & ENVIRONMENTAL SERVICES SUPERVISOR QUARTERMASTER SUPERVISOR 125 $59,718.27 $71,661.52 $89,576.90 ASSOCIATE ENGINEER $28.71 $34.45 $43.07 ACQUISITION MANAGER DEVELOPMENT SERVICES MANAGER FY20 COP PAY PLAN -10/01/2019 Grade Minimum Market Maximum Class Title Most positions use 2080 hours however' indicates positions to use 2756 hours in determining hourly rate. JAIL MANAGER MUNICIPAL COURT ADMINISTRATOR COMMUNICATIONS AND RECORDS MANAGER PARKS DEVELOPMENT & OPERATIONS SUPERINTENDENT 125 F $59,718.27 $71,661.52 $89,576.90 DRIVER/OPERATOR' $21.67 $26.00 $32.50 FIRE FIELD TRAINING OFFICER' 126 $62,703.83 $75,245.00 $94,056.25 ANIMAL SERVICES MANAGER $30.15 $36.18 $45.22 CHIEF CONSTRUCTION INSPECTOR CONSTRUCTION MANAGER DATABASE ADMINISTRATOR GRANTS/SPECIAL PROJECTS ADMINISTRATOR IT INFRASTRUCTURE ARCHITECT MANAGEMENT ASSISTANT PROJECT MANAGER PUBLIC WORKS SUPERINTENDENT RECREATION SUPERINTENDENT 127 $65,838.87 $79,007.25 $98,758.81 MARKETING DIRECTOR (EDC) $31.65 $37.98 $47.48 WATER BILLING & COLLECTION MANAGER MUNICIPAL COURT PROSECUTOR 127 F $65,838.87 $79,007.25 $98,758.81 FIRE LIEUTENANT' $23.89 $28.67 $35.83 128 $69,131.47 $82,957.36 $103,696.70 PLANNING MANAGER $33.24 $39.88 $49.85 DEVELOPMENT MANAGER (EDC) FACILITIES SERVICE MANAGER 129 $72,587.69 $87,105.43 $108,882.04 BUILDING OFFICIAL $34.90 $41.88 $52.35 EMERGENCY MANAGEMENT COORDINATOR GIS MANAGER INFORMATION TECHNOLOGY MANAGER SENIOR DEVELOPMENT MANAGER (EDC) SENIOR PROJECT MANAGER 130 $76,216.62 $91,460.55 $114,325.94 ASSISTANT CITY ENGINEER $36.64 $43.97 $54.96 CLINICAL MANAGER FIRE CAPTAIN (Training) RISK MANAGER VICE PRESIDENT - EDC 130 F $76,216.62 $91,460.55 $114,325.94 FIRE CAPTAIN' $27.65 $33.19 $41.48 131 $80,028.36 $96,033.83 $120,041.53 ASSISTANT CITY ATTORNEY $38.48 $46.17 $57.71 CONTROLLER ASSISTANT DIRECTOR, HUMAN RESOURCES FY20 COP PAY PLAN -10/01/2019 Grade Minimum Market Maximum Class Title Most positions use 2080 hours however * indicates positions to use 2756 hours in determining hourly rate. 132 $84,028.97 $100,835.37 $126,043.96 ASSISTANT DIRECTOR, P&R $40.40 $48.48 $60.60 ASSISTANT DIRECTOR, PUB WORKS BATTALION CHIEF (Logistics) BUDGET AND PROCUREMENT MANAGER FIRE MARSHAL 132 F $84,028.97 $100,835.37 $126,043.96 BATTALION CHIEF* $30.49 $36.59 $45.73 133 $88,230.57 $105,877.29 $132,346.36 ASSISTANT DIRECTOR, CAP PROJ $42.42 $50.90 $63.63 ASSISTANT DIRECTOR, ENGINEERING ASSISTANT DIRECTOR, FINANCE 134 $92,642.25 $111,170.70 $138,963.88 ASSISTANT FIRE CHIEF $44.54 $53.45 $66.81 135 $97,274.11 $116,729.74 $145,911.67 DEPUTY CITY ATTORNEY $46.77 $56.12 $70.15 136 $102,138.27 $122,565.52 $153,206.90 ASSISTANT POLICE CHIEF $49.10 $58.93 $73.66 DEPARTMENT DIRECTORS AND ABOVE ARE NOT LISTED ON THE PAY PLAN CITY OF PEARLAND CIVIL SERVICE PAY PLAN FY 2020 *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. 1 2 3 4 5 6 7 8 9 10 11 12 Police Officer 142" $28.14 $58,522.50 $28.99 $60,308.87 $29.88 $62,149.33 $30.79 $64,047.02 $31.73 $66,001.94 $32.70 $68,016.15 $33.70 $70,092.79 $34.73 $72,231.85 $35.79 $74,436.46 $36.88 $76,708.69 $38.01 $79,050.63 $39.1 $81,463.3 *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. 1st year 2nd year 3rd year 4th year 5th year 6th year Sergeant 20' $40.03 $83,259.05 $41.26 $85,826.76 $42.53 $88,472.49 $43.85 $91,201.46 $45.20 $94,013.67 $46.5 $96,913.2 1styear 2nd year 3rd year 4th year $50.91 $52.4 $105,899.19 $109,027.6 3rd year $57.2 $119,058.1 Lieutenant 5' $48.03 $99,910.65 $49.45 $102,861.23 1styear 2nd year Captain 4* $53.96 $112,242.51 $55.58 $115,599.88 *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. y � ' 1na�re,.^ry AW` JUN CITY OF PEARLAND Fiscal Year 2019-2020 Budget Cover Page This budget will raise less revenue from property taxes than last year's budget by an amount of $-14,252,863, which is a -20.20 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 $1,829,603. The members of the governing body voted on the budget as follows: FOR: Hemandez, Moore, Perez, Orlando AGAINST: Reed, Little, Owens 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: 2019-2020 2015-2019 $0.741212/100 $0.709158/100 $0.719627/100 $0.709158/100 $0.284054/100 $0.264535/100 $0.741212/100 $0.715697/100 $0.434434/100 $0.430000/100 Total debt obligation for CITY OF PEARLAND secured by property taxes: $3211140,000 G� GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Pearland Texas For the Fiscal Year Beginning October 1, 2018 OA4 tom- P 7&� Executive Director Mayor & City Council Adopted Budget Fiscal Year October 1, 2019—September 30, 2020 Tom Reid Mayor Adrian Hernandez Position 4 City Manager's Office Luke Orlando Position 1 J. David Little Position 5 Mayor Pio Tem Clay Pearson City Manager Derek Reed Position 2 Trent Perez Position 6 Jon Branson Deputy City Manager Gary Moore Position 3 Woody Owens Position Pei Trent Epperson Assistant City Manager CITY OF PEARLAND TABLE OF CONTENTS TRANSMITTAL LETTER City Manager's Transmittal Letter BUDGET OVERVIEW ReadersGuide to the Budget ................................................................................................................................ 1 BudgetHighlights linflographic ................................................................................................................................ 9 Funded Supplemental Requests ............................................................................................................................ 10 NewPositions ........................................................................................................................................................ 11 Positionsby Department ........................................................................................................................................ 12 AllFunds Summary... ............................................................................................................................................. 15 AboutMe City _ - .. ............................................................................................................................................. 19 Demographics& Statistics ..................................................................................................................................... 20 Mapof the Cily___ ................................................................................................................................................ 23 City-wide Organization Chad ................................................................................................................................. 25 CityManagement ................................................................................................................................................... 26 StrategicPriorities .................................................................................................................................................. 27 BudgetCalendar .................................................................................................................................................... 30 Propierty, Taxes Overview ....................................................................................................................................... 31 MULTI-YEAR FORECAST Overview... ....................................................................................................................................................... 37 DebtService Fund ................................................................................................................................................. 42 GeneralFund ...... ..................................................................................................... 43 Water/Sewer Fund .. ..................................................................................................... 44 Pearland Economic Development Corporation ..................................................................................................... 46 DEBT SERVICE FUND Summary of Revenues, Expenditures and Fund Balance ..................................................................................... 47 Overview................................................................................................................................................................ 48 GovernmentalDebt to Maturity .............................................................................................................................. 50 GENERALFUND Revenue and Expenditure Summary ..................................................................................................................... 51 Overview... ................................................................................................................................. 52 GeneralGovernment .... ........................................................................................................................................ 56 PublicSafety .......................................................................................................................................................... 71 CommunityServices .............................................................................................................................................. 80 PublicWorse .......................................................................................................................................................... 88 Parks& Recreation ............................................................................................................................................... 97 ENTERPRISE FUNDS Water & Sewer Revenue & Expense Summary .................................................................................................... 101 Overview................................................................................................................................................................ 103 Finance.................................................................................................................................................................. 106 PublicWorks.......................................................................................................................................................... 108 Enterprise Fund Debt Maturity Schedule ............................................................................................................... 112 SolidWaste Fund. .... ............................................................................................................................................. 114 CAPITAL PROJECT FUNDS Definition................................................................................................... 117 Overview.. .......... .... .... .... .... .... .... .... .... .... ..................................................................................................... 118 Summary of Revenues, Expenditures and Fund Balances ................................................................................... 120 SPECIAL REVENUE FUNDS Definition... .......................................................................................................... — 141 Hotel/Motel Occupancy Tax/Convention & Visitors' Bureau Overview .................................................................. 142 CourtSecurity Overview ....................................................................................................................................... 143 CitywideDonation Overview ................................................................................................................................. 11" CourtTechnology Overview ................................................................................................................................... 145 Street Assessment Overview ................................................................................................................................. 146 ParkDonations Overview ...................................................................................................................................... 147 TreeTrust Overview ......... . ................................................................................................................................... 148 Police State Seizure Overview .............................................................................................................................. 149 FederalPolice Overview ........................................................................................................................................ 150 Park & Recreation Development Overview ........................................................................................................... 151 SidewalkOverview ................................................................................................................................................. 152 GrantFund ............................................................................................................................................................ 153 Community Development Block Grant (CDBG) Overview ..................................................................................... 154 Traffic Improvement Overview ............................................................................................................................... 155 Court Juvenile Management Overview .................................................................................................................. 156 Municipal Channel (PEG) Overview ...................................................................................................................... 157 Regional Detention Overview ................................................................................................................................ 158 Lower Kirby Urban Center Overview ..................................................................................................................... 159 - ,NDS Definition... .... .... .... ............................................................................................................................................. 161 ProIterty/Lialbility Insurance .................................................................................................................................... 162 MedicalSelf-insurance .......................................................................................................................................... 163 MonaPool- .... .... ---- ........................................................................................................................................... 165 COMPONENT UNITS Definition................................................................................................................................................................ 167 PEDC..................................................................................................................................................................... 168 PEDCDebt to Maturity ........................................................................................................................................... 173 APPENDIX FinancialPolicies . .... ................................................................................................................................. 165 City Charter 190 TaxRate Ordinance ............................................................................................................................................... 194 BudgetOrdinance .................................................................................................................................................. 196 CityPay Plan .......................................................................................................................................................... 199 CivilService Pay Plan ............................................................................................................................................ 204 City-wide Fee Ordinance ....................................................................................................................................... 205 GLOSSARY Acronyms............................................................................................................................................................... 233 Glossary................................................................................................................................................................. 236 August 1, 2019 Honorable Mayor and City Council members: What is Next?! That's a question I get asked... a lot. In Pearland, high velocity change and growth has been the norm: roads widen, housing soars, businesses open, water lines extend, and our population grows. Looking back overjust the last five years Pearland is a different place, and I would argue, that while it is different, it is also better - We are a diverse community that is welcoming to all, and it shows in many ways throughout the community. But what is next? While we face challenges, we are well positioned to answer that question: Pearland's robust and diverse economy offers services and amenities that will not only continue to keep us competitive and to retain people who call Pearland home - regardless of their stage of life or career. We have a safe community, continuously improving public recreational facilities, programs, and special events, a high-quality water and sewer system, solid public infrastructure, outstanding public school districts, and dedicated employees. All so that we collectively offer an exceptional quality of life for our residents every day. For the City, what's next is to continue building momentum around the positive qualities that make Pearland special. From the voter -approved 2019 bond issue, we will add needed City facilities including, a fire training bum building, and a larger, modern animal shelter. We will continue to reduce the adverse effects of the rapid growth phase with additional road improvements, improved utility provision, and storm water drainage improvements to further boost our resiliency to intense weather. Moreover, our diversified economy means Pearland is fairly well insulated from whatever economic downturn or realignments may come. Our sales tax revenue, for instance, is projected in this budget for only modest growth. With that pace, we are still able to further build the General Fund's fund balance while making needed public investments in services and structures. We are getting better and better Before we look ahead, we have a lot to be proud of: ✓ Over the last five years our population has grown 21%- Crime rates are down between 12%-30% and response times are down 20%. ✓ Serious Crimes (Part I in statistics) are down 25%. ✓ Burglaries are down 24% (211) from the 5 year avg. (276.7). ✓ Motor Vehicle Theft is down 12% (93) from the 5 year avg. (105.7). ✓ Robberies are down 20% (32) from the 5 year avg. (40.2). ✓ Fire growth and response - in the last five years we have added two new fire stations (with one more soon to open) and 90" percentile emergency response rates have declined 17% (13:23 to 11:03) ✓ Road improvements - The 2007 bond program invested $a4M in roads, which unlocked $137.6M in Federal Funds to aid in the completion of major projects that improved the road network - including recent completion of the widening of Reid Boulevard and Old Alvin Road, the extension FV 20 City of Pearland Budget Transmittal' Page i of Pearland Parkway and Fie Road, with Hughes Ranch Road, Mykawa Road, and MCHard Road in the pipeline. ✓ Sales tax revenue growth— Sales tax has increased from $28M to $32.91A over the lastfouryears. The first 10 months of this year equates to what was collected for all of FY15. ✓ Jobs —from 2005 to 2016 jobs grew 105%. ✓ Citizen survey - from 2015 to 2017 there was a 12% increase in population and a 14% increase in Sense of Community sentiment. What's next Development of a new Economic Development Strategic Plan is driving our thinking about what's next. After successfully executing the original strategy in 2013 (updated in 2015), a new course is being set to guide our efforts and ensure we are purposeful about identifying and implementing priorities. Building the new strategy began with a Community Assessment study in July 2019. In addition to the quantifiable information and consultant's expertise, stakeholders from throughout Pearland were interviewed. The Community Assessment mentioned this for a commonality in perspective: In short, a key theme from the public input process is that there is an emerging consensus that Pearland is on the cusp of a new era. The community's recent history has been typified by rapid growth. Stakeholders said they feel that the community is "catching up' to this growth in many ways and have much to be proud of in recent years. However, stakeholders contacted through the input process also said that Pearland's residents are beginning to have discussions about what comes next for the community. These discussions can be synthesized and distilled into a single key question: How will Pearland ensure its sustainability and maintain or even improve its status as a highly desirable destination as its era of rapid growth draws to a close and the community begins to mature? Now is an opportune time to ask this question. Suburban communities around the United States are facing a new paradigm that will bring both challenges and opportunities. Sun Belt suburbs such as Pearland remain among the fastest growing communities in the country. However, trends such as e-commerce and peer-to-peer technologies could alter sectors such as retail and food service that are critical to the tax base of many localities, including Pearland. Additionally, shifts in generational preferences and financial hurdles faced by younger populations could have a variety of implications. Communities that address these issues will unquestionably chart a more sustainable course for their community and economic development. Looking ahead to what's next is wise, maybe even being a little restless to a different type of change from the breakneck pace of growth to more of a moderate rate. Yet, there have been cities who succeed and thrive with growth closer to the median rates. We are building the City of Pearland into a High Performance Organization; one that's nimble and smart, full of leaders at all levels. Our talented and dedicated City staff team are gearing us up to build and connect. In the next decade, we will shift to more maintenance and less new construction of infrastructure. While new growth of valuation from development will not be as big a part of our planning, we will continue to protect the value in our existing neighborhoods and businesses, as we thrive in new maturing ways, building a sustainable Pearland well positioned for continued success. FY 20 City of Pearland Budget Transmittal' Page if The SH 288 Condor with connections to Beltway 8 and DIscovely Bay Ddva#tugbes Ranch Road. The big highway and its supporting road network We've been executing a plan for linking together our road network. The work is coordinated and sequenced to the best of our ability. There are multiple agencies (the City, Brazoda County, TxDOT, Harris County Toll Road Authority) and other funding sources. Each bit of work requires multiple permitting levels, right-of-way acquisitions, design, and construction bidding, award, and work. To guide all of this, we have a solid thoroughfare plan that outlines the major streets, and future connections. It gives us a planning tool to set out and designate future public rights-of-way, through the planning and development process with private developments. That Thoroughfare Plan, along with other master plans, is an integral part of the City's Capital Improvements Program that provides a multi-year construction and budgeting plan to show what's next for the road system. The next Fiscal Year 2020 will be significant for seeing successful results of many years' planning and work. The largest project in Pearland is part of an even more massive undertaking as the SH 288 toll managed lanes and associated work all the way from south of Pearland, through Beltway 8 and 1- 610 interchanges, to the Texas Medical Center. Within the City of Pearland, the widening of Hughes Ranch Road (CR 403) is has started and is set to complete in early 2021. That road provides larger capacity and better safely while tying into new T -Ramps for direct access to the SH 288 toll road. East -west travel in Pearland will improve even more with the start of the much - anticipated extension of McHard Road between Cullen Parkway and Mykawa Road. We awarded construction of the new water and sewer work for that corridor in June 2019. During the upcoming "winter' of 2019, we will be awarding construction of the road work Itself. FY 20 City of Pearland Budget Transmittal' Page iii None of these projects would be where they are without anticipation and coordination with the City Thoroughfare Plan, the Capital Improvement Program, and the financing and administration. Thoreugh/are Plan Excerpt—McHard Road We have numerous mobility projects underway or planned that will spur more economic development with investment and jobs. eoi1 err. n11,or I.,anr;., tmnthe (TY of veaaa,d wr , '% zax% AesMe4¢ and arcane of ommertlal conl4ors and dill na 313% d,9% Pool eonneRM1nN and rapadN In llie H crown 128% 422% I Ionmav Avaidr, fIc of add IiN oRm spam 428% —Orr452% leaWml di,i error oalner. - A,allffialhaf IIII And card i,,,rmmt ca 2% 461ffi Aoail anIlii of hi gRzprodinRmax 614% T ,,ii man ro mverv,@re nl foal mr ® ns% PmxlmfNm feel afrcareer Al a me 20(m 400% 61 ad Ine 0re9Mlve •Nemal aPi Advantages gained by our mobility work All the work to improve mobility, part of plans and budgets past and future, will address three of the biggest negatives identified in the new Pearland Economic Development Strategy Community Assessment: • Roadway connectivity and capacity within the City of Pearland only • Aesthetics and quality of commercial corridors and districts • Roadway connectivity and capacity in the Houston region as whole Together, working with P successfully such as Bral County, and the alphabet soup of TxDOT, HCTRA, and BCTRA, there is progress made, and connections, to be made. The trial period of the privately -provided bus commuter service from the Shadow Creek Sportsplex is underway, broadening the service options. FY 20 City of Pearland Budget Transmittal' Page iv We are also diversifying the less commuter -oriented connections. Pathways are making progress to be constructed with substantially long segments, primarily along the Clear Creek corridor. Thanks to major grams, work is starting on those and providing what will be a continuous recreational trail across Pearland. Lower Kirby District & major corridors In the Lower Kirby District, South Spectrum Boulevard will be open from Kirby Drive all the way over to the SH 288 southbound frontage road by October 2019. The entire Lower Kirby corridor has grown and diversified the City tax base by adding primary jobs, thanks to years of planning and investment by our Pearland Economic Development Corporation (PEDC) team. Realizing the potential of our Main Street/ State Highway 35 Corridor is a similar economic Mein Slrel SYete Highway 35 entry feature newly i&d development focus. As with Lower Kirby, PEDC is leading the effort by executing a plan for enhancing the look and feel of the corridor, making it more attractive and giving confidence to investors. Just as the private sector developers of a new residential subdivision spend considerable money on the entryways to give a quality look and feel, or a hotel property has a lobby that gives a certain feel, our rightsof-way convey the message that Pearland is an inviting and prosperous community. The work underway now adds to the public spaces to help set that tone. Down the road, what's next for our FM 518/13roadway Corridor is needed expansion and safety improvements. As a State road, some of which lies outside the City limits, TxDOT will be the lead. The Stale, through TxDOT, has funded the portion of FM 518 from SH 288 to Cullen. For FM 518 widening (SH 288 to FM 865/Cullen Pkwy), widening from four to six lanes, TxDOT has $32.4 million for funding in 2023. The next segment of Broadway, from Cullen Pkwy easterly, is unfunded by TxDOT. A third road corridor deserving mention is Pearland Parkway. We've witnessed and enjoyed growth and development of restaurants and retail along there, adding choices for shopping and dining. Now what's next from the City will be, thanks to the voter -approved May 2019 bond issue, redevelopment of the traffic rotary improvements. The work will make through traffic easier and safer. These updates will be planned to be completed in advance of the ensuing extension of MCHard Road. State of Texas Legislature oversight Our State of Texas Legislature meets every other year for regular session. The cascade of bills introduced leads to a small number that are approved by both chambers and are signed by the Governor. In the last couple of sessions, to put it kindly, the new laws have significantly reduced local government Flexibility and resources. While admirably directing considerable attention to the critical State mandate of funding public education across the State, there was passage of a new property tax revenue cap for most cities and counties before special elections are required. For years, the maximum property tax revenue growth, in theory FV 20 City of Pearland Budget Transmittal' Page v excluding new growth from a complex formula, was 8%. Starting with the budget year beyond the recommended one here, for our FY 21, the cap Is 3.5% growth as the property tax revenue cap. There are several impacts we should anticipate for what's next: • Our operations budget • Impact on fleet replacements • Annual maintenance of streets and sidewalks (already significantly underfunded will be further crimped) • Ability to add even the portion of additional positions for police, fire, public works, parks, and support across the organization will be lessened The City is committed to opening Fire Station #8 with a medic unit and one apparatus through continuous onboarding of additional staff in FY 20. We have ordered the large rolling stock trucks to be in the building when it opens in fall of 2020. However, the full complement of firefighters needed to staff the second apparatus is built into future budget projections that are uncertain with the new 3.5% property tax revenue cap. Another factor with the revenue growth constriction is the impact on our General Fund's fund balance. Without the flexibility on revenue growth, we will be slowed in achieving the desired reserves for emergencies like we experienced with Hurricane Harvey to cash flow expenses and cover items that are not reimbursable expenses. Another bill that went through the 2019 Legislative session that has since been signed into law reduced telephone franchise fees to cities for use of the public right-of-way for private commerce. The revenue estimate reflected in this recommended budget is a loss of $100,000. The intent of the bill was explained that now telecom companies do not have to pay "twice" for using lines for phone &Internet - now only required to pay the higher of the two. Our City of Pearland total Telephone Fees in FY19 was $275,000 but now reduced to $175,000, so limited exposure. We will monitor and update at mid -year if needed. Finally, for State legislative "highlights", the special session in 2017 that brought new requirements for cities in Texas to grow into their respective extraterritorial jurisdiction boundaries, continues to impact our planning. Future water and wastewater modeling, for impact fees for instance, no longer assumes the same growth areas. We also completed in FY 19 a strategic goal of the City Council to no longer provide fire services into the ETJ without a dedicated funding commensurate to the City's cost of service. Two new emergency service districts, 94 and 95, were created and will levy the maximum 10 cent property tax which will substantially be paid to the City for service provided. In upcoming FY 20, the recommended budget here has revenue of $776,000, but that will go to $940,000 after the ESDs have a chance to build their balances. That revenue will cover much of the cost of service for the area. FEMA monies and storm water management in Pearland Hurricane Harvey in August 2017 impacted our community in many ways. While there was no loss of Irfe and relatively small private property damage within the City of Peadand, the lingering effects, financial issues, and lessons remain here in 2019. We are better equipped with equipment. We are also making improvements to our Emergency Operations Center so that City will be able to support the community more comprehensively in the event of an emergency. Now in July 2019, only a month away from the two-year anniversary of Hurricane Harvey, there is a heavy sense of urgency on our part to move from our desk the outstanding claims involving FEMA disaster FY 20 City of Pearland Budget Transmittal' Page A recovery program that reimburse the City for its outlay of costs for that event. The State, via Governor Abbott, has issued a number of correspondences to FEMA and the Texas Division of Emergency Management (IDEM), urging these outstanding outlays be resolved and obligated to reimburse the affected municipalities and other jurisdictions by late August 2019, and the applicable parties are working hard to do so. Considering the two FEMA work categories the City has made substantial outlays to cover the costs of debris removal and emergency measures: As a recap, FEMA Category A — Debris Removal costs have been reimbursed (100%), as the City has received payment in the form of $1,347,687 in Federal funding, and $149.743 from the State of Texas, for a total of $1,497,430. The funds are dedicated to reimbursing the solid waste fund and not available for other purposes. FEMA Category B is the section of disaster recovery public assistance reimbursement that involves the City's Emergency Protective Measures and is the one that has the most direct implication to the City's General Fund. At the end of the FEMA -defined period of initial emergency operations (1°' 30 days following the event -9/24/2017), the City began to calculate eligible costs for reimbursement for the use of force account labor, City equipment, materials and supplies and contract work towards emergency protective measures affiliated with Hurricane Harvey. Staff believes the reimbursement amount will be in line with the $2,078,507 identified in a Validation Summary Issued by FEMA on Monday, July 22, 2019. Per that amount, the allocation of that reimbursement would be distributed by Fund as follows, which is subject to change based on the final approved reimbursement amount: 1. General Fund - $1,785,518 In Force Account Labor, Equipment and Materials 2. Enterprise Fund -$283,557 in Force Account Labor, Equipment and Materials 3. Other Funds- $9,432 in Force Account Labor We have not included within FY 19 any of the FEMA reimbursement revenue that's coming and not budgeted any revenue or expense for FY 20. The amounts of reimbursement are well-documented and nearly certain. However, given the State and Federal agencies and uncertainty of timing, we are conservatively not assuming that in the budget. As soon as we have certainty, we will bring that to you to amend the budget for revenue. We will also have at least these amounts recommended with the incoming $1.8 million General Fund FEMA reimbursement for one-time or discretionary expenses: $500,000 Asset Management Software next phase beyond work order (GF Share) $200,000 for Comprehensive Plan $900,000 for streets, sidewalks, vehicles replacements $185,518 or Remaining balance -Addition for General Fund's fund balance Again, the timing of being able to recognize and receive the money is the significant detail and makes us recommend to not include, but make these expenditures contingent upon receipt, likely early in FY 20. Beyond the Hurricane Harvey recovery money detailed above, there are other separate additional new FEMA Recovery dollars anticipated. The City Council conducted a public hearing on July 22 for new Community Development Block Grant (CDBG) recovery funds anticipated to be administered by the City. Based on damage assessments that demonstrate Hurricane Harvey damaged 1,784 homes in Pearland, the City has been allocated $2,727,372 for buyouts of flood -affected homes impacted by Hurricane Harvey and $2,657,147 for Infrastructure/Capital Improvements. We have a lot of paperwork and filings FY 20 City of Pearland Budget Transmittal' Page All to complete, but allocations for Pearland total $5,384,519 and will be disbursed upon completion of our CDBG-DR Action Plan, similar to the annual Action Plan the City completes to determine how regular CDBG funds are used each year. Storm water management and the fee option Bigger picture, our storm water management and good control work locally, in cooperation with partners including Brazona Drainage District#4 and Harris County Flood Control District continues. We have had introduction to the option and benefits of the Storm Water Utility Fee that's been used successfully in many Texas cities as a dedicated, identifiable means to support this essential work. While it would be easier to continue with the large and visible drainage public projects, primarily funded with debt, our minimal ongoing maintenance and smaller projects that can help localized flooding will continue to be pushed towards the sidelines. Moreover, moving the City storm water work source of revenue from general funds to a dedicated fee would both give more money to that stormwater work and free up some General Fund dollars that could be reallocated to ongoing maintenance of streets and sidewalks. Clear Creek improvements What's next for the creek that drains nearly all of Pearland? The long-awaited (decades!) Clear Creek flood reduction project is a partnership between the US Army Corps of Engineers (USAGE) and Local Sponsors (Harris County Flood Control District [HCFCD], Galveston County and BDD4). The project will provide channel improvements and in-line detention along Clear Creek from SH288 to Dixie Farm, along with improvements to additional tributaries in the Clear Creek watershed. Ager Hurricane Harvey the project was finally provided appropriation from the Federal Government for $295 Million, with local sponsors reimbursing their cost share. In June 2019 a Project Partnership Agreement was approved, between USACE and HCFCD, to allow the HCFCD to carry out the project. The transfer of lead from the Fede allowed the responsibility of the project to be transferred to HCFCD to manage, design, and build the project. Additionally, with the transfer of project management and construction to HCFCD, the estimated cost share is apparently now a 50150 partnership with local funding being required throughout the project development and construction. That translates to $147.5 million from USACE and the remaining balance being funded by the Local Sponsors. The timing of the local funding is a new twist that has to be digested and agreed to with (hopefully) matching from local sponsors by work already completed or land acquired. The project is underway with the development of scope for services and subsequent advertisement for design services. As of current project status, it is still scheduled for completion within the 5 -year schedule. FY 20 City of Pearland Budget Transmittal' Page viii Again, with all the tremendous growth and development, the newly constructed areas of Pearland were extremely resilient during Huff cane Harvey. The next storm may be different, perhaps more wind, perhaps more power outages, perhaps a combination of both. We will be ready for the response, but until then, we must continue to enforce and follow the design requirements for private development and build out more of the major construction projects. Just as important, I believe, is to commit and follow through with regular maintenance and smaller projects. After Hurricane Harvey, we identified 30 problem areas that can be addressed over time with a dedicated Storm Water Drainage fee source of revenue, while allowing flexibility to balance the other City responsibilities of streets and sidewalks. The multi -billion dollar development program: TIRZ #2 We need to look ahead and understand the near-term benefits and effects of the success of Tax Increment Revitalization Zone (TIRZ) #2 that is Shadow Creek Ranch, a major master planned area in Pearland. The capture from the TIRZ expires in 2029, with a closeout year thereafter. The intricacies of the TIRZ are diverse, but one is that the property tax collected for that entire area, a taxable value that as of now has reached an incredible $2.6 billion, is "captured" and segregated. The City and other taxing bodies have deferred their normal operating tax rate to instead repay the obligations of the TIRZ. However, the City receives an "administrative fee" of 64% of what our total property tax rate would have otherwise derived. That 64% obligated in the original TIRZ agreement is actually more than would be generated from the Operations and Maintenance (O&M) portion of the City property tax rale. As we turn into a new decade and see the end of the TIRZ #2, at some point in a few years, projections and transition plans need to be made for the TIRZ ending and the property coming back as normal property onto the tax roll. Another very positive event horizon to anticipate is the fact the City is In line to receive $8.5 million back from the TIRZ In 2022 as reimbursement for work the City advanced to extend and Improve Broadway Street within the TIRZ. Growth in the TIRZ has now changed projections such that not only will the City be reimbursed that substantial amount, but it is expected in 2022. The initial conversations and recommendation is the bulk of that one-time reimbursement be used to firmly establish the City's internal service fleet fund and to fully bolster the General Fund's fund balance. Before that, the interim financing by the City for additional public improvements within the TIRZ area is before us and impacting the FY 20 and near-term City budgets. In orderto be reimbursed for additional improvements, the City is obligated to advance finance new City projects: $14.4 million in Certificates of Obligation (COs) approved June 24th for interim financing to build SCR Park Phase II, new Fire Station #8 and equipment, a new Shadow Creek Ranch Public Library, and landscaping, street lighting and sidewalk design in SCR. The issued debt is relatively short term in nature, payable back with interest, in essence balloon payments from 2025 through 2029, totaling $48.4 million In Improvements, timed to match the TIRZ reimbursement. That large investment within the TIRZ represents projects that would otherwise have been paid by the City from its own sole revenue or not accomplished at all. FY 20 City of Pearland Budget Transmittal' Page ix Overall Expenditures Highlights In our Comprehensive Annual Financial Report each of the last several years, which provides an unvarnished snapshot of City finances across dozens of funds at the September 30 close of each fiscal year, we have provided a table of spending and growth analysis. That table shows a long run of total City expenditures by various categories. SPENDING AND GRO RTH ANALYSIS Amounts in fifi x) Growth Expenditures 2009 2018 %CNG Rate General Gov't $ 8,423 $ 11,300 34.2% 3.30/6 Public Safety 22,310 41,273 85.0% 7.1% Public Works 12,051 16,968 40.8% 3.9% Community Services 3,386 4,313 27.4% 2.7% Parks 8 recreation 5,789 5,959 2.9% 0.3% Economic Development 18,730 29,195 55.9% 5.1% Debt Service - principal 7,517 23,547 213.2% 13.5% Debt service - interest 15,704 15,614 0.7% 0.1% Capital outlay 75,490 43,474 42.4% -5.9% Intergovernmental 7,630 7,166 -6.1% -0.7% Total $ 177,030 $ 199,011 12.4% 1.3% Growth Per Capita Expenditures Adjusted for CPI Rate POPULATION 92,600 125,198 3.4% PER CAPITA $ 1,912 $ 1,590 -2.0% CPI INDEX(NATIONAL) 214.54 252.44 1.8% PER CAPITA ADJ TO 2018 $ 2,250 $ 1,590 -3.8% PER CAPITA ADJ TO 2009 $ 1,912 $ 1,351 -3.8% The numbers are instructive as they show our primary investment and growth in public safety, 21 % of the total across all funds for the fiscal year ending September 30, 2018. Also interesting is the analysis of per capita City government expenditures when adjusted for Consumer Price Index (CPI). That table reflects that when properly indexing to the CPI, per capita city expenditures are somewhat less than they were ten years ago. FY 20 City of Pearland Budget Transmittal' Page x General Fund Revenue Highlights Our General Fund that provides the bulk of City day-to-day services is primarily funded by local property tax and local 1 %sales tax revenue. There are not transfers from the State of Texas or others — to be direct, we thrive or struggle based on local resources and local decisions. Total revenue to the General Fund is %from local sales tax and property tax with another 21 %from the TIRZ Administrative Fee, an indirect source of property tax contracted for the TIRZ. Property Tax Base Property tax is composed of two components, the base of value and the rate. For the base value, growth overall for values from the three counties we occupy totals +5.0%. Our own analysis of information from the Central Appraisal Districts is that 45% of homestead properties in Peadand had an increase in AV between 0% and 5%, with 25% experiencing a one-year change between 5% and 10% and 21% assessed between no change and a 5% decrease. For 2019, value of new improvements and new personal property is $246 million onto the rolls, included in the recap table of appraisal rolls. That amount of new taxable value is down 9.1 %from what was added the prior year, evidence of the slowing pace of growth noted earlier. The base values provided by county appraisal district is just the starting point. From that base, the taxable amount upon which we apply our rate gets whittled down. For one, the TIRZ #2 is removed. Then, the amount from tax ceilings per the Stale worksheet, is removed, leaving a smaller base Property Tax Rate The City sets its own rate, the valuation changes individually for thousands of properties. For the rate, local governments in Texas have had the option for local elected leaders to go up to a property tax revenue growth theoretically up 8%. Beyond that rollback rate, other requirements are activated for notice for the City to proceed. The current FY 20 Budget will be the last for a rollback rate with the current State - mandated worksheet formula, Under new State law, beginning with valuations as of January 1, 2020 applicable to our FY 21 Budget, the new maximum revenue growth from existing property is just 3.5%. FY 20 City of Pearland Budget Transmittal' Page A Annual Budget by Function Report Summary 2017 Actual 2018 Actual 2019 funended 2025 Proposed Fund: 100 General FuntlAmt %d %d %of %d idolARA useblel ant Ami blel Properly Taxes $17,910,289 24% $20,383,959 26% $22,952,305 28% $25,704,001 30% ease a Use Texas $20,457,029 25% $22662,007 29% $22438,980 27% $22,869,370 26% Franchise Fees $6.975,738 9% $7,097,560 9% $7272488 9% $7.242,757 8% Licenses B Permits $5,434917 J% $4.145,490 5% $3,882,867 5% $3,887,350 4% Fines a FortelNnas $2,510,849 3% $2.322.398 3% $2452750 3% $2,M5,750 3% changes fir Services $15.396.511 21% $16,051,689 21% $16,900.459 21% $18.291.338 21% Investment Earnings $217,286 0% $323,550 0% $537,000 1% $622,000 1% Ir49rgovemmenial $o o% $0 0% $0 0% $0 0% Miscellaneous $1.534.335 2% $1,302,233 2% $1,150.903 1% $1.121,854 1% Other Financing Soumee $0 0% $0 0% M 0% 50 0% Transfers In $3,791,394 5% $3.818,116 5% $4,674,460 6% $4.949,456 6% Revenue Tiands: $74,228,348$78,105,018 $82,262,212 $86.934.676 Total revenue to the General Fund is %from local sales tax and property tax with another 21 %from the TIRZ Administrative Fee, an indirect source of property tax contracted for the TIRZ. Property Tax Base Property tax is composed of two components, the base of value and the rate. For the base value, growth overall for values from the three counties we occupy totals +5.0%. Our own analysis of information from the Central Appraisal Districts is that 45% of homestead properties in Peadand had an increase in AV between 0% and 5%, with 25% experiencing a one-year change between 5% and 10% and 21% assessed between no change and a 5% decrease. For 2019, value of new improvements and new personal property is $246 million onto the rolls, included in the recap table of appraisal rolls. That amount of new taxable value is down 9.1 %from what was added the prior year, evidence of the slowing pace of growth noted earlier. The base values provided by county appraisal district is just the starting point. From that base, the taxable amount upon which we apply our rate gets whittled down. For one, the TIRZ #2 is removed. Then, the amount from tax ceilings per the Stale worksheet, is removed, leaving a smaller base Property Tax Rate The City sets its own rate, the valuation changes individually for thousands of properties. For the rate, local governments in Texas have had the option for local elected leaders to go up to a property tax revenue growth theoretically up 8%. Beyond that rollback rate, other requirements are activated for notice for the City to proceed. The current FY 20 Budget will be the last for a rollback rate with the current State - mandated worksheet formula, Under new State law, beginning with valuations as of January 1, 2020 applicable to our FY 21 Budget, the new maximum revenue growth from existing property is just 3.5%. FY 20 City of Pearland Budget Transmittal' Page A Significant in that worksheet is that $1.1 billion in value is removed for homeowners age 65 or older, which particularly has again affected our calculations for the debt service rale. The recommended budget Is based upon the City adopting a rate at the calculated rollback rate for Operations and Maintenance of the City. If the City were to not adopt the rollback rate, then hems such as streets and sidewalks, additional personnel etc. would need to be eliminated and the services and support would fall behind requests and expectations. Simply put, some challenging gaps we see would be worse. The Comparison of Potential Property Tax Rate and Revenue shows the impact. Without adopting the recommended rollback rate, and if we were to adopt the effective rate, we would need to remove $2.7 million in expenditures from the General Fund. Comparison of Potential Property Tax Rate and Revenue Fiscal Year 2020" General Fund and Debt FY2019Actual (2)Effactive Tax (3) Proposed Tax Rate Service Property Tax Rates Rates&Levy (1)Current Tax Me (No New -- Rol lback Rate (896 Rate Revenue Rate) Revenue Cap) 0&M 0.279158 0.2708 0.2812 0.306 Debt Service 0.430000 0.4344 oA 0.4 Total 0.709158 0.7052 0.7157 0341 G.F. Property Tax Revenue+ $22.6+$10.8= $22.4+$10.6= $23.3+$10.8= $25.5+$11.2=$36. 11RZ Admi n Fee (in mil l ions $33.4 $33.1 $34.1 'For Fiscal Year 2020, the proposed rate in green is used In the r¢Ommen led budget re/mue Built upon the calculated rollback rate in the State -mandated formula worksheet, the property tax levy represents a 3.0% tax increase with their math. Moreover, their calculation is that the FY 20 Operations and Maintenance (O&M) tax levy is $25.5 million. That said, we need a total Tax rate of 0.7412 at the rollback rate, of which 0.4344 is the debt rate and $0.3068 is the O&M rate. The difference from the adopted FY 19 rate is 0.032. The other major General Fund revenue source is local sales tax. The sales tax revenue to the general fund is budgeted for only 1 % growth over the rolling 12 -month average, based upon performance in the last months. For every 1% growth, that would be an additional $222,000, so if that improves from our conservative estimate, that will improve that position significantly. FY 20 City of Pearland Budget Transmittal' Page All Because of different valuation cases, individual property tax bills, just like gas mileage on a car, will have actual experiences varying. ameeead Property Tax BillsProjected for 2019 Tax Year par FY 2020 BudgeKytlelm6mw, acead WIple2 nese S.am.iea neademdee �md 5.am.ie5 a. s st $am 5 Sem w Sema 5 seT 2df Sxs was os as os was987 S2,xs ®a) zax was o s a s o s wa se TM ..xaas w mu `""o"..mos 6 ..mu2019 °" c.oxm m se xxwn Mpm1i16 ] ;�TR s a 5 a1 s 16x1 $ aPo$ a 5 11umgee5eT 5 SeniorExample$iull'20 a sxm a $em 61 Som $xem a] 3 206 155,070 31 S a s 2 5 a$ 0 5 6x M mix m2 m l ! x�da nt A1111 9 eexat geset xu � a� 5 5 MIS� 5 x 2 Sm a 5 Leu 5 z $ m5 5 General Fund Expenditures Overview General Fund expenditures include salary wages and benefits of our employees which amounts to about three-quarters of expenditures. The FY 20 amount includes a 2% flat adjustment which is what we can afford within the constraints of the budget. The City undertook a compensation study in FY 18 and funded in that year 100% of the recommended adjustments at midyear which were fully absorbed in FY 19. Given that the 2% is a modest increase, we've also included a new one-time supplemental budget to provide a December one-time pay of $2fmonth of service, similar to the longevity pay paid annually before Thanksgiving ($4/month of service). Annual Budget by Account Classification Report Summery 18 Supplies 8 Grounds Maintenance Outlay N Payment Expense as Out itureTotals 2017 Actual 2018 Actual 2019 Amended Arnt %of Amt %of Aunt %a Amt %of total Wall total total $53,274,036 66% $53,952,026 $2,530,393 3% $2,264,965 $3,128,950 4% $3,063,638 $3,236,922 4% $3,117,319 $10,562,010 13% $11,220,714 $18,677 0% $19,180 $522,502 1% $779,349 $4,767706 6% $2,334,476 $547,305 1% $556,677 $44,294 0% $34,922 $2,008,856 2% $1,009,451 80,641,650 78,352,716 69% $58,752,105 71% $61,804,255 3% $2,391,420 3% $2,634,036 4% $2,790,948 3% $2,348,911 4% $1,999,246 2% $2,886,741 14% $10,995,750 13% $10,777,624 0% $106,569 0% $265,700 1% $474,294 1% $455,453 3% $893,673 1% $794,306 1% $520,496 1% $367,691 0% $22,355 0% $11,925 1% $3,811,203 50/6 $3,864,869 82,758,059,211,511 FY 20 City of Pearland Budget Transmittal' Page All Annual Budget by Function Report Summery 2017 Actual 2018 Actual 2019 Amended 2020 el Government $12,853,683.6816% $11,941,694.9615% $12,972,705.0016% $13,846,621.0016% Safety $44244,560.46 55% $42,271,270.71 54% $46,014,771.00 56% $48,327,734.00 56% Works $12,881,801.21 16% $13,992,608.1418% $13,140,448.0016% $13,028,881.0015% unity Senices $4,085,692.07 5% $4,050,477.29 5% $4,147,697.00 5% $4,303,693.00 5% 8 Recreation $6,575,912.34 8% $6,09.665.62 8% $6,482,438.00 8% $5,704,582.00 8% diture Totals $80,641,850 $78,352,717 $82,758,059 $86,211,511 The City invests 56% of the General Fund expenditures for police and fire expenditures, these public safety functions are supported by the entire organization. Public Safety— Police and Fire Our work and support for public safety in Peadand remains our top priority. We've added people, equipment, and vehicles. After years of adding sworn officer positions, the recommendation for the top priority next is support for telecommunication (911 operators) and an additional two swoon positions that will allow for expanding the Criminal Investigation Division. During our mid -year review and additions, we made a commitment and added $450,000 to replace all but one of the vehicles that were removed from the FY18 Budget due to mid -year budget reductions following Hurricane Harvey. The light vehicles were all Police vehicles. For new Fire Station #8 now under construction on Shadow Creek Parkway, 13 new positions are to be phased in over the first half of FY20 to allow the City to staff one apparatus and one medic unit. We have had an ongoing "Continuous Onboarding" program over the last several fiscal years. That program will continue as budget allows to get the last apparatus for Fire Station #8 staffed up towards its potential. Beyond Station #8, we have a replacement for Station #4 (built years ago as a volunteer station) on Freedom Drive and then building a complement of firefighters again toward opening Fire Station #7 on Bailey Road. FY 20 City of Peadand Budget Transmittal' Page xiv Neighborhood streets and sidewalks The last full assessment was done in November 2014 with asphalt streets updated in November 2017 after Hurricane Harvey. The ROW Assessment recommends a target of $4.6 M annually for street maintenance, to maintain a Pavement Condition Index (PCI) of 72. The distribution of pavement condition scores is shown in the bar graph. The City streets network total was a PCI of 75 when the ROW Assessment was conducted in 2014. The ROW Assessment from 2017 now shows a street network PCI of 72. (A 3 point PCI decline due to funding levels below the recommended amount.) Asphalt streets are an average of PCI of 64, which is much lower, showing the asphalt network requires more maintenance work. For sidewalks, there is a current backlog of 815 sidewalk repair work orders. The oldest work orders date back to 2009. Staff is working to address oldest work orders and target the areas of highest number of work orders on a city -wide basis. (Heat map of work orders shown for two neighborhoods). FY 20 City of Peadand Budget Transmittal' Page xv caw of Pe irlaM, TX Chilli r..m.dm�nun.er..m. 3 �w �m E P lrrPuci virsn •a mllilliq van„�,n.ill., un,xPnvprva orad. . The last full assessment was done in November 2014 with asphalt streets updated in November 2017 after Hurricane Harvey. The ROW Assessment recommends a target of $4.6 M annually for street maintenance, to maintain a Pavement Condition Index (PCI) of 72. The distribution of pavement condition scores is shown in the bar graph. The City streets network total was a PCI of 75 when the ROW Assessment was conducted in 2014. The ROW Assessment from 2017 now shows a street network PCI of 72. (A 3 point PCI decline due to funding levels below the recommended amount.) Asphalt streets are an average of PCI of 64, which is much lower, showing the asphalt network requires more maintenance work. For sidewalks, there is a current backlog of 815 sidewalk repair work orders. The oldest work orders date back to 2009. Staff is working to address oldest work orders and target the areas of highest number of work orders on a city -wide basis. (Heat map of work orders shown for two neighborhoods). FY 20 City of Peadand Budget Transmittal' Page xv Water and sewer The Water and Sewer Enterprise Fund provides the operations of the critical daily supply of clean water throughout Pearland to the 37,000 customers, then takes used water away for processing and outflow. Water revenues for FY 19 did not meet expectations with a series of very wet weeks dampening consumption. The Advanced Metering Infrastructure if being steadily implemented For the fund, a few notable highlights include building from a 0% rale increase for FY 19. A moderate 1.6% revenue increase is necessary for upcoming FY 20. This budget also includes change to the base rate multipliers, which are used to calculate base rales for large meters, to bring these multipliers in line with the American Water Works Association (AW WA) recommended stmcture. Other factors at work with the fund are moving Impact fee from development to the fund for offsetting expenditures as property allocated. Moreover, the Fund can accommodate moving $1.5 million to pay for a portion of its share of reimbursement to in -City MUD rebate obligations. The major capital projects is, of course, the new Surface Water Treatment Plant. The scale of that new investments is driving the debt financing. For using 10,000 gallons of water and 8,000 gallons of wastewater/month, the rate change in 2020 would be just over $5/month, increasing for the first time since 2018. Debt management For the General Fund capital improvements in our plans, there s long-term debt financing, paid back over time by property taxes of those that benefit from the improvements. The credit agency reviews from our FY 20 City of Peadand Budget Transmittal' Page "I 2018 2020 2SWww NI9 LX0 IS SO IS 30 1530 1510 16,83 mn III A,,dSW,,1 I �Stw IM 22 74 U74 2274 Z274 SIM 2174 Rft&�13 WOW 10ANX IS.X ISM SS78 153D 3546 5076 16M ISM 55,83 505 Debt management For the General Fund capital improvements in our plans, there s long-term debt financing, paid back over time by property taxes of those that benefit from the improvements. The credit agency reviews from our FY 20 City of Peadand Budget Transmittal' Page "I most recent issuances affirmed our very high credit rating (AA Fitch and Aa2 Moody's), based upon strong structural and economic foundations. In that issuance was a new issuance for the TIRZ projects with interim financing as mentioned earlier. As illustrated in the chart below, strong growth in our Assessed Value has allowed the City to responsibly fund these new issuances. sNM j a.aox s S y 3W% g ].M 9d $ 1.M 8 s.ao-x mono rmon4 mrero aisle rmwr more in 2020 we will see issuance of the first round of funding for the voter -approved 2019 Bond projects. For the discussion of the projects when the Council put those questions to the voters, we forecasted an estimated debt service tax rate with that Issuance to be 0.4550 for FY 2020. Instead, we have in the FY 2020 Budget a Debt Service Fund tax rate of 0.4344. The Debt Service Fund includes financing for not only public improvements and paying back bonds, but also contacted payments for In -City MUD rebates. Through multiple discussions and analysis, a strategic goal set by the City Council was instituted whereby any new in -City MUD districts will not receive the rebate from the City to accelerate their repayments to developers. However, the existing obligations remain. For those existing in -City MUDS, the determination has been made the vast majority of the obligation should properly rest with the Water and Sewer Enterprise Fund. Therefore, $1.5 million is to be transitioned to W&S Fund to cover MUD debt related to W&S functions. We will transition additional MUD rebates in future years as feasible within projected rate increase. Conclusion Those who came to Peadand before us made bold decisions, staking out a claim for what Peadand could be. We are poised to deliver on that claim - to be the cosmopolitan suburb of the fourth largest city, Houston, in the USA. With a dynamic economy and countless attributes, we offer what's needed to be successful, with a proudly diverse community and a thriving economy. We are ready for what comes next, including executing this FY 20 City of Pearland budget Respectfully submitted, Clay J. Pearson City Manager September 30, 2019 Postscript: The budget was adopted essentially as recommended with changes in the Water and Sewer rate structure only. The transmittal letter has been updated for consistency. FY 20 City of Peadand Budget Transmittal ' Page "ii THIS PAGE INTENTIONALLY BLANK READER'S GUIDE TO THE BUDGET This budget document has been prepared and presented in an start 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 butlget as a policy document, (2) the budget as a financial plan, (3) the budget as an openal 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 far all funds and resources of the City, and also includes a multiyear 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 account basis, or other acceptable method) was employed in the development of the budget. The budget summary section, as well as Me various fund and department summaries, satisfies this requirement. The budget as an operations guide. This criterion Involves explaining the relationship between organizational units (departrnents) 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 budder 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 readers financial background or knowledge, will be able to gain a basic understanding of them. Organization of the Budget Document Transmittal Letter is meant to Putiine the highlights of this Budget and some of the objectives the City hopes to accomplish this Fiscal Year. This section Includes the City Managers budget message to City Council. Budget Overview is meant to provide readers with a concise overview of some of the most important pieces of this years Budget. This section includes a list of funded supplemental requests, an in males for All Funds - Revenues and Expendiitures, Summary All Funds Balances and Cash Equivalents, new positions and staling 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 Budget Calendar. An overview of the City's property taxes, levy and collections. Historical Assessed Valuation Taxes Levied and Taxes Collected, along with Tax Rate Distribution and Principal Taxpayers information are in this section. READER'S GUIDE TO THE BUDGET 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 Guys Debt Service (DS) Fund, General (GF) Fund, Water and Sewer (W&S) Fund, and Peadand Economic Development Corporation (PEDC). 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. 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 chain followed by a summary of expenditures by departmerAfunclion and by category, a staling summary and an overview with key budget items, accomplishments, goals and objectives for this Fiscal Year, and performance measures. Enterprise Fund section includes an overview of the Water & Sewer Fund that includes a revenue and expense summary and beginning and ening 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. Capital Project Funds section includes an overview, a summary schedule of revenues and expenditures by Capital Project Fund followed by a brief descrption of each project with annual operating impacts. Special Revenue Funds section includes information on the Special Revenue Funds. Each fund includes operating revenues and expenditures with beginning and ending fund balances. Internal Service Funds section Includes an overview describing each Internal Service Fund - Property/U llity Insurance and Medical Self -Insurance. The revenue and expense summaries are also included. 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. Appendix includes the City's Charter, Article 8, Municipal Finance; the adopted Tax and Budget Ordinances; Me 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 Citys 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 Glossary section includes the glossary and acronyms 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. DEPARTMENT AND FUND RELATIONSHIP General Fund X X X X X Enla In Funds Enter" atedSewer Fund % X Gold Waste Fund X Sjwclaf Revemre Funds HdelM al Oaupanq Tax X Maicial GWd sCVlty City Wide Wna4on Fund X X Coun TecM1mlogv X so-eMnssessmem X Park Donetlarre X Trans Trust Fund X Mine SWte SBCve Fund X Fetleml Fulton Fund X Pals B Rec Derelopment Fund % sidewalk Fund X Grand Fund Cwnrrunity wvelepmem Blak Gram CDBG X TralAt lmpat Improvement X Can Juvenile Management Fund X Maiulpel anmel(Peg) Regional [)stenion Fund X FUND STRUCTURE Governmental Funds 100 General Fund Special Revenue Funds 305 Hotel/Motel Occupancy Tax 200 Debt Service Fund 310 Municipal Court Security 315 City Wide Donation Fund Capital Protects Funds 320 Court Technology 500 Capital Projects - Pay as You Go 325 Street Assessment 501 Cenificates a Obligation 330 PaA Donations 502 General Obligation 2001 331 Tree Trust Fund 503 Cenificates of Obligation 2006 335 Police State Seizure Fund 504 Cenificates of Obligation 2007 336 Fedeal Police Fund 505 General Obligation 2008 340 Park & Roe Development Fund 506 General Obligation 345 Sidewalk Fund 507 General Obligation 2020 350 Grant Fund 508 Certificates of Obligation 2020 351 Community Development Black Gant (CDBG) 509 General Obligation 2021 380 Traffic Impact Improvement 510 Lower KiNy Urban Center 365 Court Juvenile Management Fund 511 PEM Capital Projects 370 Municipal Channel (Peg) 380 Regional Detention Fund Enterprise Funds Internal Service Funds 600 Water Sewer Fund 700 Property Liability Insurance Fund 610 Solid Waste Fund 701 Employee Benefits Fund 702 Medical Self Iremance Fund Capital Projects Funds 703 Mot" Pool Fund 550 W/S Impact Fee Fund 551 Water Impact Fee Fund 552 Waste Water Impact Fee Fund 555 Shadow Creek Impact Fee 560 Cenificates of Obligation 1998 565 Revenue Bonds -1999 &2003 566 Revenue Bands Series 2020 567 War" Drinking Bonds Series 2M 568 Revenue Bonds Series 2021 569 Revenue Bonds Seder 2022 570 Water/Sevrer Pay As You Go 575 MUD 4 Capital Program Component Units Fixed Assets & Long-Term Liabilities 900 Economic Development Fund (PEDC) 800 Long Tenn Debt 920 Development Aulnddty, Fund (DAP) 810412 Fixed Assets 930 TIRZil2Shadmv Creek 820430 Long Term Debi- DAP&PEDC 5 BUDGET OBJECTIVES AND PHILOSOPHY 1riHH�[N�DI4NIPI ts. This 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, Marshy enabling the reader to gain valuable Informatlon 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 b 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 expentlitures. 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 protected 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 this 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 mcurr ad. 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 Ne 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. 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 worksheels used in the budgeting process contain: 2 -prior year actuals, current year original budget, current year amended budget, current year actuals to dale, 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. This budget was developed based on zero base budgeting. Supplemental requests for capital, annexaboo, growth and development or other hems 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 adjust 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. BUDGETPROCEDURES 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. 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 yearend. T See the Pearland City Charter, Article 8, in the Appendix section for further budget procedures and miss 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 vole 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 Me appropriation for any funtl. Please see Appendix for additional Information regarding the City's Financial Policies FY 2020 Budget 4& Investment in public safety continues to be a top priority with the addition of 13 new fire fighters, two new police officers, and two now telecommunications operators Investment in maintaining roads increases with $65aK for street rehab and $459K for sidewalks rehab (a $400K increase over FYI Budget) and the addition of a traffic crew and a bucket truck Parks will shine brighter than ever with $2.5 million in Park equipment recapitalization over the next five years (2019 Bona), three new staff (including Event Coordinator for Independence Park).IFk. and replacement 1 y. "C. gyp; Pt_:ee'� a v4. SE i! . 4.!Nbiy�I�! "'may_ Investment overall staffcontinued focal point with $1.7 million for professionalr i b� 1�}$'� development, a 2% cost of living adjustment, and onetime year -and additional pay The City is more financially secure with a general fund balance above policy minimum, which increased to 60 days of total expenditures at midyear (ahead of ached operating costs FUNDED SUPPLEMENTAL REQUESTS BY STRATEGIC PRIORITY Strategic Priority l Division Supplemental Request Funded General Fund W/S Fund Other Funds Total Healthy Economy Sub -Total - - - - Engaged Community City Secretary Goi Public Records Soudan Software 15,982 15.982 Communications PT Intern re -dare M Communications Specialist 38.399 3$399 Communications Zen city Scheele 19,680 19,680 Sub -Total 74,061 - - 74,061 Safe Community Fire Contlnuous On -Boa ImBI3 new posidons 871,067 871,067 Fire Fire Sta00d a Start-up Costs 301000 30,000 Information Technology Cyber Security Specialist (9 months) 25,106 32,366 57,472 Police 2 Telecommunica8ons Operators (6 months) 62,330 62,330 %lice eTicket Wntem 181000 181000 %lice 2Swom Oiticere-Investigations-1 Sergeant(6 129400 129460 months) and 1 Police Officer (3 months) Police Records Clerk re class to Recordsllnfomm8on 6,502 6,542 Coord. Sub -Total 1,142,85 32,366 - 1,174,851 Sustainable Infrastructure Traffic Traffic Crew and Bucket Truck l9 months) 318,309 318,309 Capital Projects ProjeGCoominatof - - PubOC Works ROW Inspector (GF) le -class W ROW Supervisor (23,908) 40,015 16,107 (GF and WS) Public Works Maintenance Supervisor(10 months}with vehicle 123,072 123,072 Public WOMB Heavy Equip. Operator & Mainl. Worker (10 months) 104,032 100,032 Public Works Backflow Inspector (10 months) 84,268 84,268 Public Works ROW Inspector(10 months) 87,810 87,810 Public Works Peterbilt Haul Truck & Trail King Trailer 248,072 248,072 Sub-Tota1 294,401 687,269 - 981,670 Fiscally Responsible Finance Senior Accelerate IS member 30,380 30,384 Human Resources Management Assistant 85,601 85,601 Human Resources Executive Assistant in months) 44,600 44,604 Information Technology Application Specialist 72,814 72,814 Utility Billing Billing Specialist S months) 38,941 38,941 Sub -Total 160,589 111,755 - 272,344 Parks, Recreation & Events Palls & Recreation 2 PT Cuslodians' - - Parks & Recreation Aquatics Technician (9 moMhe)' - - Parks & Recreation Independence Park Bridge Replacement 250,000 250.000 Palls & Recreation Independence Park Pool DemolWon 67,600 67,600 Parks & Recreation Parks Mower Package 77,220 77,220 Parks &Recreation Special Event Coordinator he months) 39,812 39,812 Sub -Total 184,632 - 250,000 434,632 Total 1,856,168 01 250,000 2,937,350 ' Positions show as zero cost as they were fully offset by expenditure reductions. 10 Fund I Division FUNDED NEW POSITIONS BY FUNDIDIVISION Net FTE Position TiDe Change General Fund Finance Senior Accountant (6 Months) 1.0 Human Resources Management Assistant 1.0 Human Resources Executive Assistant (9 Months) 1.0 Information Technology Cyber Security Specialist (9 Months) 0.5 Operations Firefighters 13.0 Investigations Police Officers (1 for 6 months and 1 for 3 Months) 2.0 Communications/Records 2 Telecommunications Operators (6 Months) 2.0 Special Events Special Event Coordinator (6 Months) 1.0 Aquatics Aquatics Technician (9 Months) 1.0 Parks 2 PT Custodial Staff 1.0 Trak Trak Signal Technician (9 Months) 2.0 Capital Projects Project Coordinator (9 Months) 1.0 Enterprise Fund Information Technology Information Technology Utility Customer Service Grounds and Maintenance Distribution and Collections Construction Construction Backflow Cyber Security Specialist (9 Months) Application Specialist Billing Specialist (9 Months) ROW Inspector (10 Months) Maintenance Supervisor (10 Months) Heavy Equipment Operator (10 Months) Utility Maintenance Worker (10 Months) Backflow Inspector (10 Months) `Re dasnasions not shown equivalent tot FTE. Sub -Total 26.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Sub -Total 7.5 Total* 34 BUDGETED POSITIONS BY DEPARTMENT Fulc0uiNtPanmem wlEPGSmoMs PART.nMEPoSmooS %2020 "2018N2019w2020 N2018 Fl2019 %3020 Tinel M1wOw PMw0E0 CHANCE 130011=1® PM6VIED AMsAsIr CROW(£ EIM£Iw FTE 0onaral00vel9 Cifty lana er 50 so 50 20 30 so cityl3acragary AA 40 ao 20 2.0 5.0 Fil 18A 155 1 is 185 1 0 1 G 10 17,0 JohlyCorgamerFewaces 16A 190 Is 200 10 10 10 MS HumanRescurooks f 05 85420 105 10S Human Resources-Flv iab Fa OS 0505 05 Inbrmatlan Tecbnda -GF 115 115 120 120 InkrmetlanTecbnol-W8S <5 45 80 0.0 Le al 50 50 60 10 10 10 60soars Genre M70al T1A Tad 80.5 5.0 5.0 1.0 1.0 82.5 PWIC Sal FirePot. Admirmiralon 100 110 120 20 2.0 2.0 13.0 Fee0 o 330 1050 1180 340 360 3<.0 1350 Fe Wa lns zo TO 60 10 1A 1.0 8.5 Fire Emergency Moral 20 20 20 2.0 Fre HeaIN B Code Enforcement 00 80 80 80 Po11ce A1minisha0m 90 90 90 90 POIIroPahol 1100 1210 1210 121.0 pollrgaminwismal270 300 20 3R0 320 Polkr4cmmunl SeM¢a 00 00 80 50 POIImLammunkatlaneReoxEe 280 280 20 300 7 0 70 7.0 33S polko4ad160 150 150 150 20 20 20 20 120 120 120 12.0 roamerSomalitin 110 Ivo 10 110 Fools Safew Trot 3570 3390 vA 380.0 250 44.0 ".0 209-0 wulwaaa Enaink"Ing 8Da bl Prvgl Acme TMfie WHaall 40. 20 80 80 snorkeling 100 135135 13.5 ca Prod P 13A 13A 125 135 13S FulWab Adminia0a0an-GF 20 2820 20 Poll Works AdminlahaOan-W65 85 75 75 75 FalMaintananm 57 5757 5] culSemxs 3A 3030 30 Flcel Wanknence 506080 Bo Sl BDrelre a 160 160160 10.0 un0s Muntenan-GF Gmw 4 75]0 ]0 Gmu nEa Morenenn-WBS 05 45 I'S 80 80 Tm1Ac emtlone so 00 0.0 L0Stuas ]0 70 70 ]0 WaeWxeb?naMenl 15A 1301 130 130 Worker Pearl 180 180 160 18.0 Dietl Wean S Coll 24D 2]0 1.0 28 23.0 W&SConstrul 100 100 20 1200 120 Legal ]0 ]0 70 M Pre-Treah enIFCIG 30 301 3.0 aacMow Com fiance 10 30 10 40 40 Pudic Works TaM 18M 169A 8A 1]].0 1]]A BUDGETED POSITIONS BY DEPARTMENT WrcMxiMpaNnem FV2018 MIENOEO RILLTIMEPOSITOW %2019 PMMDEA CHANGE %2020 Bllp£lEO N2018 PMELRO PART-7IMEPOSRIONS N2019 AMEL® CW M N2020 BUIX£TEO %2020 Tabl M Cwnmun BeMwe raumormlCouO-GF 120 10 10 10 125 Wnkl ICourS al FuM6 15 10 1S Communiw0ona SA 50 Cammunl SeMoesCommunl W40 Oeou Mmn 20 2.0 Plennin TO TO Pnml6 dins emlma 140 100 Oeil menl BeMme 60 60 6.0 twnmun 8eniweTWl KA 065 1A 47.5 3.0 20 10 10 88.0 Pelle B Recmalbn Palls Mmmm"ton 00 60 60 80 Perm A Ret Reaoume DawArmmg Perm 240 240 240 2.0 2.0 25.0 Rec2aAm 30 30 30 140 140 110 100 Naluml Remourcea 20 30 30 30 30 OS ONletla 30 30 30 40 4.0 0.0 5.0 us0a" 20 20 10 30 280 260 260 ITO S ankiE mm 20 20 1,0,1 30 30 Senbl Pm mmm 30 30 30 30 3.0 3.0 0.5 Reueafim em0ons" 40 40 10 270 27.0 27.0 17.5 %re B Wom"m Tebl 51.0 82A 2A 54.0 70.0 79.0 2.0 81.0 90.8 Wua WM Ewmmlc Oemlo menl 60 60 60 6.0 Commn9an 8 Mmrort Suremu 30 30 30 1A 1A 10 35 pNa Fumb 9A 9.0 9.0 1.0 1A 1.0 9.5 P MNW Geneml Fumd 571 5 me 220 6135 1270 1290 1290 8280 Webs B Smmr FuM 1135 1215 8.0 129.5 10 1.0 1.0 130.0 Total CNm Funds 110 110 110 20 1.0 1.0 11.5 OmniTml T19A 354 750.0 130.0 131.0 131.0 019.5 Chane from N2019 W IN 2020 35 L- 3 IINumber Employees per 1,000 population II 140,000 120,000 100,000 80,000 60,000 40,000 20,000 100% 90% 80% ]0% 60% 50% 40% 30% 20% 10% 0% ] 5 4 3 2 1 0 2011 2012 2013 2014 2015 2018 2017 2018 2019 2020 Population —# of empl. Per 1,000 Pop. FTEs by Service Area 111 3.5 • 3.5 • 3.5 •Public Safely 06.0 060 •6.0 .community — •General 389.5 408. Government 9090,0 •Economic 94.5 Development •Public Works 1]0.0 1]].0 FY 2018 FY 2019 •Parks 8 75.5 82.5 Recreation .community Services 389.5 408. •Economic Development .convention 8 Visitors' Bureau FY 2018 FY 2019 FY 2020 14 SUMMARY ALL FUNDS REVENUES AND EXPENDITURES FY2019 FY2019 FY2020 FY2018 ORIGINAL YEAREND ADOPTED REVENUES ACTUAL BUDGET AMENDED BUDGET Properly Taxes $54,574,310 $57,833,973 $57,982,305 $62,006,101 Sales Taxes 33,842,399 33,989,580 33,570,466 34,026,785 Franchise Fees 7,357,998 7,571,694 7,537,488 7,242,757 Licenses and Permits 5,109,556 3,905,535 4,132,867 4,007,350 Fines and Forfeitures 2,467,886 2,266,250 2,638,550 2,621,250 Charges for Services 87,169,240 89,517,298 86,616,906 92,872,190 Interest Income 3,037,197 2,354,793 4,504,520 5,155,603 Hotel/Motel Occupancy Tax 1,597,258 1,450,000 1,450,000 1,450,000 Sond/Lease Proceeds 15,61 70,047,605 60,250,471 213,771,381 Grant Revenue 539,283 41,031 780454 Miscellaneous 4,407.514 2,779,669 6,978.040 2,846)51 Other Revenue Sources 14,558,283 835,792 49,289,028 36,304,428 TOTAL REVENUES $23(1 $313,582,580 $314,950,641 $463,085,051 Transfers from Other Funds 14,913,108 16,250,589 19,122,307 21,70,830 TOTAL AVAILABLE RESOURCES $245,242,191 $329,833169 $334072948 $484865881 EXPENDITURES General Government $12,967,840 $13,389,468 $14,077,442 $14,199,199 Public Sal 42,608,215 43,949,005 44,765,020 47,140,067 Community Services 4,417,469 4,927,540 5,196,602 5,107,829 Publiclyarks 43,705,251 47,871,284 50,970,180 48,96,399 Raft &Recreation 6,946,394 7,179,214 7,152,140 7,284,361 Utility Billing 1,592,523 2,064,358 1,906,574 2,010,733 Debt Service 53,137,074 57,648,495 56,891 59,530,902 Construction' 72,402,639 136,705,638 238,692,538 348,553,520 Insurance Coverage 8,146,251 9,128,591 9,344,656 10,058,263 Economic Development Corporation 8,861,045 27,592,999 25,701 19,788,807 OMeF 3,577,346 190,401 TOTAL EXPENDITURES $258,362,052 $350,466.592 $454,892,613 $562,250,080 Transfers to Other Funds 14,913.106 16,250.589 19,122,307 21,780.830 TOTAL EXPENDITURES AND OTHER USES $271,275,159 $386,707,181 $474,014,920 $584,030,910 Revenues Over/(Under) Egxnditures (28,032,968) (36,874,012) (139,941.972) (99,165,029) 'Capital em es5 are budgeted far poll lerplb. Construtlbn is based on annual funding and not blll spent. 'Other Includes expenditures for Silenced Revenue Funds, a cluding transfers. 15 Revenue Summary All Funds Adopted FV 2020 Budget Bond/Lease Proceeds 4.1% Charges For Services Property Taxes Other Revenue Sources Sales Taxes 19.2% Transfers In Franchise Fees Interest Income 1 .8% Licenses and Permits Miscellaneous Fines and Forfeitures % HDteOMotel Occupancy Tax Grant Revenue 7.0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Expenditure Summary All Funds Adopted FV 2020 Budget Construction 59.7% Debt ServiceF2.4% 10.2% Public Works8.3% Public Safety8.1% Economic Development Corp 1.1 Transfers to Other Funds General Government Insurance Coverage 0.8% Parks & Recreation 1.2% Community Services 0.9% Utility Billing 0.3% Other 0.0% 0.0% 10.0% 20.0% 30,0% 40.0% 50.0% 60.0% 70.0% 0.5% 16 19.2% 1 .8% 7. % 7.0 0% 1.5 1.1 0.8% 0.6% 0.5% 0.3% 0.2% ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS SUMMARY ALL FUNDS FY 2020 FY 2020 FY 2020 FY 2020 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE General Fund $ 13,765,218 $ 86,934,676 $ 86,211,511 $ 14,480,383 Debt Service Fund 4.857,633 39,458,628 40,009,589 4.306,672 Special Revenue Funds 7,814.695 3,029.996 3,045,213 7,799.478 Proprietary Funds 26,697,618 68,400,696 64,425,668 30,672,648 ' Capital Project Funds 10,059,082 260,347,604 356,488,012 (86,081,246) Internal Service Funds 3.492,551 14,236,085 131889.134 3.839,502 PEDC Fund 13.965706 12.743.116 19.961.786 6.747.036 TOTAL $ 80,652,503 $ 481 If 584,030,911 S (18,227,527) 'Exclusive of $5,486,194 reserved for debt service pursuant to bond covenants. SPECIAL REVENUE FUNDS FY 2020 FY 2020 FY 2020 FY 2020 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 305 Hotel/WWI Occupancy Tax $ 4.544,574 $ 1,460,800 $ 1,101,346 $ 4.904,028 310 Court Building Security 35,835 48,700 35,827 48,708 315 Citywide Donation 57,202 30,%7 33,5oo 54,669 320 Court Technology 20,248 55,300 61,591 13,955 325 Street Assessment' 330 Park Donations 64,868 128,000 122,500 70,368 331 Tree Trost 519,540 7,800 250,750 276,590 335 Police State Seizure 43,375 4,000 37,200 10,175 336 Federal Police 23,900 1,200 25,100 340 Park Development 520,462 138,000 250,000 408,462 345 Sidewalk 12,446 5,200 17,646 350 Grant Fund 175,442 350,810 351,395 174,857 351 Community Development Block Grant 48,063 429,719 429,719 48,063 360 Traffic Improvement 608,247 11,000 619,247 365 Court Juvenile Management 44,927 73,500 67,285 51,142 370 Municipal Channel 843,418 285,000 304,100 824,318 380 Regional Detention' 510 Lower Wrby' 262.150 262.150 TOTAL $ 7,814,695 $ 3,029,996 S 3,00.5,213 $ 7,799,478 ' These Funds have no budgeted activity for FY 2020 PROPRIETARY FUNDS FY 2020 FY 2020 FY 2020 FY 2019' ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 600 Water&Sewer Fund $ 25,932,015 $ 60,547,396 $ 56,575,666 $ 24,417,551 ' 610 Solid Waste Fund 765,603 7.853.300 7.850.000 768,903 TOTAL S 26,697,618 $ 88,400,898 S 84,425,888 S 25,188.454 'Nat of any reserve requirements. 17 ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS SUMMARY ALL FUNDS CAPITAL PROJECT FUNDS FY 2020 FY 2020 FY 2020 FY 2020 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES E%PENDDURES END BALANCE 500 Capital Projects General $ 9T7,200 $ 444,875 $ 1,136,441 $ 285,634 501 Capital Projects -CD (227,413) 1,]]5,000 1,386,]]5 160,812 503 Certificates of Obligation Series 2006 13,173 2,046 11,127 506 Capital Projects -GO 688,206 31,804,828 32,161,962 331.072 507 General Obligation Series 2020 (6)50,000) 38,800,744 32,050,398 348 508 Certificates of Obligation Sebes 2020 23,720,237 23,691,769 28,468 509 General Obligation Series 2021 13,598,609 (13,598,603) 511 PEDC Pay -As -You -Go 512 Certificates of Obligation Series 2021 7,405,928 (7,405,928) 513 Coastal Obligation Series 2022 6,008,609 (6,008,609) 550 Ulffly Impact Fee Fund 16,117,325 110001000 6,01 11,074,800 551 Water Impact Fee Fund 2,650,000 2.61 552 Waste Water Impact Fee Fund 2,125,000 2,125,000 555 Shadow Creek Impact Fee 657,023 10,000 687,023 565 W & S Revenue Bonds 184,055 3001000 309,166 174,890 566 W & S Revenue Bonds 2020 (195,000) 46,677,000 46,375,223 106,777 567 Water Drinking Bond Funds 2020 (1,60Q000) 108100,000 106,009,402 490,598 568 W & S Revenue Bonds 2021 45,793,144 (45,793,144) 569 W & S Revenue Bonds 2022 30,738,396 (30,738,396) 570 Water/Sewer Pay as You Go CIP 194,513 2,940,000 31110,596 23,917 575 MUD 4 Capital Program TOTAL $ 10,089,082 $ 260,347,684 $ 356,488,012 $ (86,081,246) Note - Beginning In FY 2020, all debt issuances will be isolated Into dreir own unique Irma. Negative Mind balances are a result of appropriations needed to award contracts. but eq>enses will not be incurred until an intent to reimburse has been approved by council. INTERNAL SERVICE FUNDS FY 2020 FY 2020 FY 2020 FY 2020 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 700 Property Liability Insurance $ 104,158 $ 1,681,381 $ 1,711,821 $ 73,718 702 Medical Self-insurance 3,326,368 8,268,030 8,431,053 3,163,345 703 Motor Pool Fund 62,025 4,286,674 3,746.260 602.439 TOTAL $ 3,492,551 $ 14,23$,085 $ 13,888,134 $ 3,839,502 PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC) FY 2020 FY 2020 FY 2020 FY 2020 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 900 Economic Development Fund $ 13.965]06 $ 12.743.116 $ 19.961]86 $ 6.747.036 TOTAL $ 13,961 $ 12,743,116 $ 19,961,786 $ 6,747,036 ie Pearlantl, Texas Where Town and Country Meet The City of Pentland, 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 Me mayor and 7 other members. The Mayor and Council members are elected at -large, and each of them hold off ice for a period of three consecutive years. Council members are limited to two full consecutive terms in office, and there is no term limitation on Me office held by the Mayor. The City Manager is appointed by Council and is responsible for implementation of Council priorities and day-toi 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 Pentland and Brazoda County. Located across the northern end of Brands County, and sharing a common border with Houston, Texas to the north, Pearlantl is the fastest growing City in Bmzoria County. From 2000 to 2018, based on U.S. Census population and Me City of Peadand Planning Department statistics, Peadand'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-Tenitodal 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, Peadantl ranked 7� in the nation for fastest growing cities. Pearland Population Growth 140,000 127,500 120,000 112,3m 100'aw 90,872 eo,oc0 63,945 60,000 46,056 40,000 20,00 0 z000 2005 20m 2015 201919 III MEDIAN AGE: 35.1 f�� p of Residents it 75.9 /p are Homeowners 8! 47.3% Bc orHighers Degree U Of Households Have 65% Income Over 575,000 •• EMPLOYERS PEARLAND INEPEE MERITMEDICAL SCHOOL DISTRICT NEMLON KELSEY-SEYBOLD PEARLAND CITY OF PEARLAND MEDICAL CENTER ALVIN ISD DOVER ENERGY MEMORIAL HERMAN TURBOCARE 127,000 Estimated in 2019 $208,900 $102,124 2.6% MANUFACTURING 1 2% O EDUCATION, HEALTHCARE32 O SOCAL ASSISTANCE City of Pearland Comparison City Demographics for Benchmarking Dallas constants NSA Honsion MSA rid I 4d Sladabel eatems mu Ind 35 N rb du rn meuonaDenm 0,900 nom zm zewr 4100 2.734 POMUMN W CMNW9) 20181ionade 168170 122.118 4705 118500 1062nd 7304 128,]39 %Change 1018 (a OX 462% 339% 10.9% fin 5% 2].1% ].3% 289% O Lemus I In red ji ]B.B% %plan a 00.10 2x50% 1406"° is JN Rib% 83.6"° 6x.5% fi533R 51,484 ROOD Census L3 tons 54,618 45.1 6x.80 66,693 46.EA 61] FINANCIAL CNFRFCTERISTICS Nes CAN, UNLESS OTHERWISE NOTED) Credit Suns aboO 's /a9 Me Am Adel NW /air Pat Ann Circuit Natin S&P AM TolalnmPwann Hmw:ansa $1733387 790 s�9 s net 711 W5 $553 an $NOON 110Js54 0 m4 eta' 02915 0.3l 0.19]1 Oa042 0409 0.3135 Dept Taxi eater 0.1502 Sou 0a An Behan 0,1444 53471 0.1255 Tmm Prn Tax Some Banes 05156 07412 96399 9.3329 a54BB 0.8020 04399 sn 42 I our may I S a S 29 351ST S t E 1A 122 S 72,862 20 3x30 Sales Tax Revenue Pel Resident S E 290.11 S 15880 ml red 8 ROB 5 566 mmoo mlcscDIDCemue) Sensor Carden¢ 1 ].5% 9A"° 109% 117% 145%° 96% 117% LS% Juvenio x418 31.6% 295°% 270% 239% 23.1% 276% 27 9% 28.5% coal Sam Ni 190% 14 T W° 159% 232% 35 ix. 8.9% 19,9% 139% lan mb, Other Tlmn Eirl SpNen at Home 28.4% x1.6°h 2].5% 300% 1].5% 5% so I% 747% EaseWhit,694% ]]3°A BR OX 92.5% 60.1% no 6% 89.5% ]4]% Inscan Amoco, 1]4% ].9% 14% 58% 99% RaceAsian15.8"° BR%° 1 134% 1 18.0%3ria 22%° 0]% Race-incrust 124%° 164°5 21.]% 16.5%° 9.6% 18.9%° 208% HWMNO AND EDUCATION(2010 Cenme]2017M imnCommun"S y) Homewnersh Rete 740% 668°% 759% Ba 6% ]27% 7.1°% 624% 91 300 299 2,83 Finals 12102124 $ 31824 s 7 modern s 30900 255000 209900 171900 218900 $101100 210000 %Below Pove Rett 39% 70% 38% 56% 60% 52% 7.3°% 82% A292000 %o1 Hwa Smi Build Ab 1900 00% 856% 893% el.a% 865% H.9% 88.4% %Hawrg Vi in Mul0unil SOWum 2WPROIR 18.]9° 23.2% te.]% 6.5% 96% 196% v 4% 291% %Baendar,D reor H'M1er 609%° 452°% 1].3% 460% 6889° 44.3% 14J°% 396% EMPL M Ina BYINDUSTRY(Ma]AMMICANCOMMUNm WRVEY) Mean Royal Time b WoM1(min) 30 1 293 331 304 305 304 248 252 Assisi made,, 8sgrq and M1ia np, and mining 10% 1.0% 29% 33% 57% 24% 2.0% OA% LonH ion 00 0054 0002 09% 00 01 02 4052 Manstakedumm el Sax el el 9.1 0,119 WI1omaletrads 0.D 0001 0031 30% 0.D 0.D 9.9 4029 Rna90adis 0.1 0121 0.078 1D 3% 0.1 0.1 01 0112 Tmreescha6cn and NmM1waM. and utllOs 29% 2.9% 50% 59% 37% 45% 6dSxA 32.6 Informs 39% 34% 18% 22% 20% 14% FYmnce eM insurance and reel Beale and rental and bal 14.3% 119% 62% ]3% &5% 57% Personnel. ¢rnnMIS aM manmwenl. and administrative and Adds emeM3w 3 18.5% 44% 134% 115% 164% Rund FAlvalbml ¢arvYn¢. and M1ei care am ,transmiYaru 202% e7% 294% 226% 280% ]AX 199% Aft, wlM1MinmelM1 and Reactor, and ccwnmMetlon and fixed¢arvMe¢ B]% 8.9% 50% 85% 82% 72% Oder Bevis¢;except WM'p admim"ion 39%33% 31% 40% 38% 3.1% Pucommodities0.0 0029 5048 3S% 0.0 01 00 2052 Twe Rab laboratory k assay Pmbd Adapkd FY20 Tax Rab Nofim of ended rated unavailable. FYA Pmpm Nat HnpenlCmay be oa any race, so also 9m Included In succeed race cele Bodies 21 THIS PAGE INTENTIONALLY BLANK 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 Uptown 11 George Bush HOUSTON �If 'mem(lAH) Wl BAH) Minute Maid Portof Houston Authority 1. Mseum Rice University District Univer \ of Hou: Medical METRO Light Rail Transportation George Bush Intercontinental (IAN): 33 minutes Ellington Field (EFD):6 minutes Metro Light Rail: 9 minutes Pentland Regional (LVJ): in Pentland Port of Freeport: 58 minutes Port of Houston Authority: 20 minutes Port of Houston: 29 minutes William P. Hobby (HOU): 11 minutes W Iliam P. Hi (HOU) Portof Freeport 14 Battleship Texas - San Jacinto Monument Attractions Ellington Field Universities (EFD) University NASA Johnson Space Center: 16 minutes 11. of ® Clear Lake a n take- 2. BBVA Compass Stadium: 14 minutes Main Campus NRG Stadium: 9 minutes Lyndo\ e. University of Houston: 13 minutes Johns en Q 9. Spacece Center 13. PZZ 4. Kemah Boardwalk: 26 minutes Pw� Toyota Center: 13 minutes �PZ Main Campus: 17 minutes Galveston Q Moody Gardens Q Kentish Boardwalk Attractions Universities 1. Battleship Texas: 23 minutes 7. NASA Johnson Space Center: 16 minutes 11. Rice University: 20 minutes 2. BBVA Compass Stadium: 14 minutes 8. NRG Stadium: 9 minutes 12. University of Houston: 13 minutes 3. George R. Brown Convention Center: 14 minutes 9. San Jacinto Monument: 22 minutes 13. University of Houston Clear Lake - 4. Kemah Boardwalk: 26 minutes 10. Toyota Center: 13 minutes Main Campus: 17 minutes 5. Minute Maid Park: 14 minutes 6. Moody Gardens: 37 minutes 23 Staff Organization Pearland Citizens LMayor & City Council E Legal Municipal Court Judge City Manager 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 CITY MANAGEMENT Elected Officials PoslUon Tom Reid Mayor Luke Orlando Councilmember, Position One Demick Read Councilmember, Position Two Gary Moore Councilmember, Position Three Adrian Hernandez Councilmember, Position Four J. David Little Councilmember, Position Five (Mayor Pro Tem) Trent Perez Councilmember, Position Six Woody Owens Councilmember, Position Seven Appointed Officials Director of Human Resources Clay Pearson City Manager Damin Coker City Attomey Letitia Fannie Municipal Court Judge, Presiding Ciry Management Jon Branson Deputy City Manager Trent Epperson Assistant City Manager Mathew Buchanan President, PEDC Mane Rodriguez Interim City Secretary Johnny Spires Police Chief Vance Riley Fife Chief Clarence W hitiwer Director of Public Works Cynthia Pearson Director of Finance Michelle Graham Director of Human Resources Robert Upton Director of Capital Projects 8 Engineering John McDonald Director of Community Development Chris Orlea Director of Parks & Recreation Tracy Rohrbacher Interim Executive Director of Convention and VisitorsBureau Lisa Lorene Library Director Joshua Lee Director of Communications Jennifer Huhn Municipal Court Administrator Daniel McGhinnis Chief Information Officer 'Empbyee of Bmzada County serving in coolmemon with the City ofPearand STRATEGIC PRIORITIES In March 2015, based upon prior feedback and citizen perceptron survey information, staff presented to Council a set of Strategic Priorities W guide organizational development, budgeting Safe and performance measurement. In May 2015,Community the City Council voted on the City of Pearland Strategic Priorities shown to the right. The 2015 Comprehensive Plan adopted by the City Council Engaged in September 2015 and the Pearlantl 20/20 Community Economic Development Plan developed by and adopted by Me Pearland Economic Development CjLIZED ry& Board in 2013 reflect elements of Mesa Strategic Priorities as well. r Community The 2015 Comprehensive Plan encompasses Parks, Recreation Me growth capacity of the City, infrastructure to & Events support the growth, mobility issues, housing and neighborhood planning, economic development, parks and tourism, and land use and character. Fiscally 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 Pentland to the next level of success, as an economically, financially and structurally sustainable city. 1. Fiscally Responsible Government Operating a fiscally responsible government entity involves the embedment of general principles of accountability and transparency into a system of decision-making. The sense of 'public tmsr prevails over Me 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 Improvement. 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 Me 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 Me 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 Me 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 M ensure effective growth, support and maintenance of public infrastructure. These items are somewhat the unsung heroes of a community. When they are working great, May are seldom noticed. A growing city like Pearland is still strengthening its "bones" cf roads and utilities and must balance Me immediate maintenance needs with the importance of looking ahead. 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 lie 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 b 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 Inspedions— infrastructure and film, 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 commuted 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 Sheffer 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 louring 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 markets. 6. Healthy Local Economy The local and regional ecenamies 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 lax 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 Peadand; optiminng a program to retain and expand existing Pentland employers', and ensuring Peatland's retail sector remains vibrant. The Pentland Economic Development Corporation (PEDC) has adopted a multi-year plan to enhance Me main entrances to Me City. FY20 Budget & CIP Calendar 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 16th: 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 5": City-wide Budget Kick-off — Departments given access to Financial System April Aril 15th'. Department Budgets and Supplemental Requests due Department Meetings with Budget Office and Management May May Bh:P&Z Board reviews CIP list and recommendation to the City Manager May 23": Department Head Supplemental Request Review Meeting June Finalize CIP pro'ects, prepares fund statements and review with the City Manager Preliminary Budget Submitted b City Managers Office for Review July July 29th: Final Appraisal received from Assessor's Office Finalize Proposed Budget and Multi -Year Plan August August tat: Submit Proposed Budget to City Council. August 10i Budget Discussion R1 August 19' : Budget Discussion N2 September September 9th: Public Hearing on Tax Rate September 16111: Record Vote on • Tax Rate Ordinance • Budget Ordinance • Non -Development Fee Ordinance Development Fees Ordinance September 23' Record Vote on • Tax Rate Ordinance • Budget Ordinance • Non -Development Fee Ordinance Development Fees Ordinance October Fiscal Year 2020 Begins TAX COLLECTIONS FY 2019 CERTIFIED FY 2019 ADJUSTED FY 2020 CERTIFIED LEVY General Fund 20,399,790 22,926,228 23,303,420 Debt Service Fund 31.422,741 35.314.330 33.000.404 TOTAL CITY LEW 51,822,531 58,240,558 56,303,824 City Collection Rate 99.0% 98.8% 99.0% BUDGET ALLOCATION: General Fund from Levy 211,195,792 20,195,792 23,070,386 Anticipated Revenue from Tax Ceilings 854.854 2.454.208 2.339.415 General Fund Allocation 21,05,646 22,65,000 25,409,001 Debt Service Fund from Levy 31,108,514 31,108,514 32,670,400 Arecipated Revenues from Tax Ceilings 5,011 130 3,621.486 3,305.900 Debt Service Fund Allocation 36,119,W 34,730,000 35,976,300 TOTAL CITY BUDGET ALLOCATION 57,170,290 57,380,000 61,386,101 Budgeted Adjusted Budgeted Tax Year FY 2019 FY 2019 FY 2020 CediOed Value 9,794,215,651 10,677,058,709 10,097,484,715 Plus: Not Camber! Hams County Value 964,237,092 1,006,774,092 Plus: Protested Values 194.758.134 359.127.740 Less: Tax Ceilings (1.051,551,445) (1,131,381,084) Net Texable Value 9,901,659,432 10,677,058,709 10,332,005,463 Less: TlR Added Value 2,594,045,209 2,464,423725 2,735,821,943 Taxable Value to City 7,307,614,223 8,212,634,984 7,596,183,520 Tax Rate per $100 General Fund 0.279158 0.306778 Debt Service Fund 0.430000 0 434434 Total Tax Rate 0.709158 0.741212 Tax Rate Split General Fund 39.36% 41.39% Debt Service Fund 60.64% 58.61% Total 100.00% 100.00% 31 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 TAX RATE DISTRIBUTION Notes: L The maximum tax rate for the City of Peadand Is $250 per $100 assessed valuation. 2. The City does not have legal right margin as Me law does not mandate any debt limit on the City 'Forecasted Tax Rates assume 3.5% car on 08M tax rate growM. Tax Rate Distribution CURRENT FOR FISCAL YEAR 2018-2019 /„1�1�1f1n1r1 PROPOSED FOR FISCAL YEAR 2019-2020 _Nor FISCAL YEAR GENERAL FUND DEBTSERYICE TOTAL TAX RATE 2008 02503 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 02151 0.4900 0.051 2014 0.2151 0.4900 0.7051 2015 0.2221 0.4900 0.7121 2016 0.2225 0.4828 0.7053 2917 0.2412 0.4400 0.6612 2018 0.2551 0.4300 0.6851 2019 0.2792 0.4300 0.7092 2020 Budget 0.306778 0.434434 0.7412 2021 Forecasr 0.3010 0.4450 03460 2022 Fomcasr 0.2967 0.4550 0.7517 Notes: L The maximum tax rate for the City of Peadand Is $250 per $100 assessed valuation. 2. The City does not have legal right margin as Me law does not mandate any debt limit on the City 'Forecasted Tax Rates assume 3.5% car on 08M tax rate growM. Tax Rate Distribution 2°oe ?p0 207 20 207 207 207 207 207 207 ?Oi a0i 20� ?Da 20a 4 0 0 III DEBT SERVICE •GENERAL FUND vOPf fast, P�s7, 32 /„1�1�1f1n1r1 _Nor In,1�1�I 8 IIo1111111111111I II "'1y1<1a1e.1010101'1x1m1'"lelvl II�lo1o10101 II11111111111111 1 1 101010101101 2°oe ?p0 207 20 207 207 207 207 207 207 ?Oi a0i 20� ?Da 20a 4 0 0 III DEBT SERVICE •GENERAL FUND vOPf fast, P�s7, 32 ASSESSED VALUATION, TAX LEVIED AND TAXES COLLECTED mo $12 $11 TIRZ vs. City $10 Assessed Valuation as Portion of Total $9 $8 $7 $6 0$5 2$4 mom p M$3 $2 $1 $- ^O 0 0 ^Pn<3 ,�b O%A ^0 ^9e Ory0 ry (F ry�°gry° ry�^wry ry�^^ry° ^ryry° ry�°Ary° ry�ry�^yry° ry�^wry ry�^^ry° ryoNW ry�N •TIRZ#2 • CITY TAXABLE ROLL(Net-TIRZ) ABSESSEB VALBAWN BY CWNW Distribution of Total 1/1/2019 AV by County CMXbtl CaMIeE 2`99/alaatl A{paleetl Cham" hpn PNW Pipi Value Ao of VaNn Asa FWllm d VllID1B ba t1IMIO/W % 3 FY19 110W BwOrka $9.0.56.132,428 SIRM0D3,135 68% $1.11,27D./35 county ll $ 915,COi4M $I OM 774.002 fill $91,371,520 County FMMntl $528,515on $564018.252 7.M $38.183,176 County of $10,R98.60,969 S11,459,425,479s.t% 5560,1igsto pity Distribution of Total 1/1/2019 AV by County PRINCIPAL TAXPAYERS FISCAL YEAR 2019-2020 SOURCES: Brazoria and Harris Counties Tax Assessor Collector $100,000,000 $90,000,000 $80,000,000 $70,OOg000 $80,000,000 $50,00000 $40,000,000 $30,000,000 $20,po,0oo $10,000,000 TOP TEN TAXPAYERS ¢ P 0 ¢ o ��p .ly ¢ �A pa G 35 ASSESSED % VALUE OF ASSESSED TAXPAYERS BUSINESS PROPERTY VALUE 1 Peadand Town Center LP Retail Center Management $ 95,032,680 0.92% 2 Arl SPF Shadow Creek LP Retail Center Management $ 86,133,400 0.83% 3 HCA Healthcare Corp Hospital $ 72,967,490 0.71% 4 MAR Shadow Creek LP Multi -Family Residential $ 58,900,000 0.57% 5 DD Shadow Creek V LLC Multi -Family Residential $ 47,557,030 0.46% 6 Flowodcs Energy & Industrial Supply $ 45,895.913 0.44% 7 Goodgarden Multi -Family Residential $ 39,849,870 0.39% 8 Centemolnt Enemy, Inc. Electric & Natural Gas $ 37,564,510 0.36% 9 11900 Shadow Creek VIII LP Multi -Family Residential $ 36,24,640 0.35% 10 Brazoda SCR Associates LLC Retail Center Management $ 36,070.020 0.35% TOTAL PRINCIPAL TAXPAYERS $ 556.217.553 5.38% ALLOTHERS $ 9,775,787,910 94.62% TOTAL $ 10,332,005.463 100.00% SOURCES: Brazoria and Harris Counties Tax Assessor Collector $100,000,000 $90,000,000 $80,000,000 $70,OOg000 $80,000,000 $50,00000 $40,000,000 $30,000,000 $20,po,0oo $10,000,000 TOP TEN TAXPAYERS ¢ P 0 ¢ o ��p .ly ¢ �A pa G 35 THIS PAGE INTENTIONALLY BLANK MULTI-YEAR FORECAST FISCAL YEARS 2020 —2022 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 2019-2020 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 OF 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, provitles guidance and funding for the operations of the City's economic development program and provitles 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 these forecasts portray 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. 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 Debt Service 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 20 tax rate increased from $0.7092 to $0.7842 in FY22 per $100 valuation; an increase of $0.05307. The property tax revenue increase has been limited to 3.5% for 21 and 22, due to the changes at the state level. Please note that the details of the calculation have not been shared with City Staff, so this projection will likely change. • During the 2019 Bond Referendum, the materials presented showed a maximum projected debt rate of $0.4875; this projection does not exceed that amount. Revenue increase of 5% is included in the FY20 budget for the water/sewer fund. Additional increases are needed in fiscal years 2021 and 2022 of 9% annually, respectively, in order to meet cash reserve and bond coverage requirements. FORECAST METHODOLOGY As pad 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 Citys 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 5.5% in FY 21 and 5% in FY 22. INDIVIDUAL FUND OVERVIEWS Tax Rate As shown on the table below, by FY 22, the total tax rate is $0.7842; 38% to the General Fund and 62% to the Debt Service Fund, which represents a decrease of $0.01012 to the General Fund and an increase of $0.0531 to the Debt Service Fund from the FY 20 adopted tax rate. As compared to last years multi-year forecast, the FY 20 tax rate is $0.0008 lower than projected. Tax Rate Projection Summary 08000 0.7885 0.7862 0.8000 0.6851 0.7092 0.7012 0.]000 0.6000 o.4e]s o.ae]s 0.5000 o.a3co 0.4344 o.a3oo 04000 0.3000 02000 0.1000 01551 0.2M2 0.3068 0.3010 0.296] 00000 2016 Actual 2019 Actual 2020 Adopted 2021 Forecasted 2022 Forecasted o GENERALFUND oDEBTSERVICE 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 $80 million 2019 Bond Program, the Debt Service tax rate will need to increase by $0.0531 from the adopted FY 20 tax rate of $0.4344 to the forecasted FY 22 tax rate of $0.4875. This projection assumes a 5.5% and 5% increase in the taxable value in FY21 and FY22 respectively and is in line with projections shared during the 2019 Bond Referendum. General Fund The General Fund is structurally balanced for FY 20 whereby expenses are greater than revenues. The current policy reserve requirement of 16.167% of total expenditures increases in FY 22 to 20% of total expenditures. Total expenditures are projected to increase $4,618,703, driven by new facilities and continued growth in our staffing needs. This projection accounts for 13 new Firefighters to staff Fire Stations #8. This forecast 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 29% in FY 20. General Fund property tax revenues as a percentage of total drops slightly to 29.3% in FY 21 and FY 22. Sales tax receipts are projected to increase 3% per year. 40 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 1.6% and a change to the base rate multiplier was adopted in 2020 to eliminate the need for a much larger revenue increase for 2023. The City plans to issue $152.5 million, $127.8 million, and $59.8 million in fiscal years 2020, 2021 and 2022 respectively. The bonds will be used to begin construction on the expansion of two water reclamation facillfies (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 2022 total $65 million, an increase of $12.5 million from fiscal year 2020, 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 $77.4 million in fiscal year 2022, up from $56.5 million in fiscal year 2020. Debt service increases over the forecast period, from $19.5 million in fiscal year 2020 to $40.3 million in fiscal year 2022. Revenues generale 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 288 corridor enhancements and beautification. The ending fund balance is projected to be $17.2 million in FY 2022, an increase of $10.5 million from FY 2020. Sales tax revenue is a major component of funding for the Corporation. Revenues from sales taxes increased by 6.0% between FY20 and FY22, from $13.3 million in fiscal year 2020 to $12.0 million in fiscal year 2022. The sales tax revenues are 89.1 %of the total revenues in 2020 and 85.8% in 2022. CONCLUSION The forecasts are conservative and only include 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. MULTI-YEAR BUDGET 2020 — 2022 DEBT SERVICE 42 ACTUAL FY 2018 AMENDED FY 2019 ADOPTED FY 2020 FORECASTED FY 2021 FY 2022 REVENUES Property Taxes $ 34,190,351 $ 35,030,000 $ 36,301,300 $43,000,000 $47,000,000 Other Revenue' 1,051,202 1,094,914 1,121,581 1,144,013 1,166,893 Transfers 697,023 571,968 2,035,747 2,576,462 3,127,991 TOTAL 35,938,576 36,696,882 39,458,628 46,720,475 51,294,884 EXPENDITURES Mud Rebates 7,169,266 7,328,484 7,435,253 7,807,016 8,197,366 Bond Payment 27,864,329 31,327,208 32,574,336 38,067,136 42,904,436 TOTAL 35,033,595 38,655,692 40,009,589 45,874,152 51,101,802 REV OVER/(UNDER) EXP 904,982 (1,958,810) (550,961) 846,323 193,082 BEGINNING FUND BALANCE 5,911,461 6,816,443 4,857,633 4,306,672 5,152,995 ENDING FUND BALANCE $ 6,816,443 $ 4,857,633 $ 4,306,672 $ 5,152,995 $ 5,346,076 Reserve 10% $ 3,698,269 $ 3,865,569 $ 4,000,959 $ 4,587,415 $ 5,110,180 Over Policy $ 3,118,174 $ 992,064 $ 305,713 $ 565,580 $ 235,896 'Includes a Mcted DdInauent Tex collectors, Penallss eM Interest UH Le PaymxNa and! Interest Inwme 42 MULTI-YEAR BUDGET 2020 - 2022 GENERAL FUND OVERVIEW DESCRIPTION ACTUAL 2018 AMENDED 2019 ADOPTED 2020 FORECASTED 2021 2022 REVENUE Public Safety 42,277,271 46,023,417 48,327,734 48,746,148 Properly Taxes $20,383,959 $22,952,305 $25,704,801 $26,299,144 $27,219,614 Sales &Use Taxes 22,662,007 22,438,980 22,669,370 23,349,451 24,049,935 Franchise Fees 7,097,568 7,272,488 7,242,757 7,604,895 7,985,140 Licenses & Permits 4,145,496 3,882,867 3,887,350 4,003,971 4,124,090 Fines & Forfeitures 2,322,398 2,452,750 2,445,750 2,494,665 2,544,558 Charges for Service 16,051,689 16,900,459 18,291,338 18,931,535 19,594,139 Investment Earnings 323,550 537,000 622,000 640,660 659,880 Miscellaneous 1,302,233 1,150,903 1,121,854 1,144,291 1,167,177 Transfers In 3,816,116 4,674,460 4,949,456 5,097,940 5,250,878 TOTAL REVENUES 78,105,016 82,262,212 86,934,678 89,566,551 92,595,409 EXPENDITURES General Government 11,936,500 12,293,435 12,720,684 12,771,897 12,824,859 Public Safety 42,277,271 46,023,417 48,327,734 48,746,148 49,179,625 Community Services 4,050,477 4,147,697 4,303,693 4,335,652 4,368,666 Public Worcs 13,997,803 13,830,730 14,154,818 14,273,078 14,395,014 Parks & Recreation 6,090,666 6,462,780 6,704,582 6,766,723 6,830,793 Anticipated Additional 63% 61% 59% 2,336,276 3,231,257 TOTAL EXPENDITURES 78,352,717 82,758,059 86,211,511 89,229,774 90,830,214 General Fund 0.0241 0.0276 -0.0058 REV OVER/(UNDER) EXP (247,701) (495,847) 723,165 336,777 1,765,195 BEGINNING FUND BALANCE 14,508,766 14,261,065 13,765.218 14,825,160 16,927,132 ENDING FUND BALANCE $14,261,065 $13,765,218 $14,488,383 $15,161,936 $18,692,327 Policy Requirement' 11,808,269 11,828,989 14,368,010 14,865,680 18,166,043 Amount Over Policy $ 2,452,796 $ 1,936,229 $ 120,372 $ 296,256 $ 526,284 Fund Balance In Days 66.43 60.71 61.34 62.02 75.11 TAX RATE General Fund 0.2551 0.2792 0.3066 0.3010 0.2967 Debt Service 0.4300 0.4300 0.4344 0.4450 0.4550 Total Tax Rale 0.6851 0.7092 0.7412 0.7460 0.7517 TAX RATE SPLIT General Fund 37% 39% 41% 40% 39% Debt Service 63% 61% 59% W% 61% TAX RATE INCREASE (DECREASE) General Fund 0.0241 0.0276 -0.0058 -0.0043 Debt Service 0.0000 0.0044 0.0106 0.0100 Total Tax Rate 0.0241 0.0321 0.0048 0.0057 'Purdy minimum Increased! to 16.67% In FY20 and 20% In rY2022 43 CHARGES FOR SERVICE WatedSeaer Charges Sanita8on Billing Fee Connection Fee WatedSeaer Tap Fee Late Payment Fee Meter Set Fee Curb Stop Replacement Fee Grease Tap Fee Reconnect Fee Miscellaneous TOTAL CHARGES FOR SERVICE NSF Fees Reimbursements Miscellaneous TOTAL MISCELLANEOUS INTEREST Interest TOTALINTEREST TRANSFERSIN Transfers In TOTAL INTERFUND TRANSFERS OTHER FINANCING SOURCES Sale of Property Miscellaneous Capital Proceeds TOTAL OTHER FINANCING SOURCES TOTAL REVENUES MULTI-YEAR BUDGET 2020 - 22 WATER & SEWER FUND DETAIL ACTUAL PROJECTED ADOPTED FORECASTED $ 49,02,814 $ 46,821,756 $ 52,479,199 $ 57,739,910 $ 63,578,335 434,116 420,305 425,000 429,250 433,543 170,104 15,253 165,000 166,650 168,317 356,202 252,764 365,000 368,650 372,337 60,235 63,948 650,000 656,500 663,065 2,669 117,255 5,000 5,050 5,101 39,500 4,100 45,000 45,450 45,905 43,875 99,920 50,000 50,500 51,005 23,638 19,697 15,000 15,150 15,302 51,400,151 48,58,990 54,199,199 59,477,11D 65,332,907 3,346 4,050 7,500 7,575 7,651 53,007 4.118 6.552 5.000 5.050 5.101 7,461 80,809 12,500 12,625 12,751 288,283 475,529 500,000 505,000 510,050 288,203 475,529 500,000 505,000 510,050 2,950,000 2,950,000 5,835,697 9,759,345 9,683,161 2,950,000 2,950,000 5,835,697 9,759,345 9,683,161 2,300,000 5,653,901 8,359,136 60,U7,396 69,754,080 75,538,869 44 MULTI-YEAR BUDGET 2020-22 WATER & SEWER FUND DETAIL ACTUAL PROJECTED ADOPTED FORECASTED DESCRIPTION 2018 2019 2020 2021 2022 EXPENDITURES Public Warks Administration $ ]]0,555 $ 1,096,912 $ ]99,]84 $ 824,969 $ 851,257 Lift Stations 1,408,613 1,580,291 1,898,851 1,957,609 2,018,452 Wastewater 4,911 5,711,351 5,286,651 5,448,969 5,616,786 Backflow Compliance 239,590 362,154 3]4,3]5 387,166 Water Production 9,1]3,24] 11,636,580 10,6]],811 10,940,615 11,210,804 Distribution 8 Collection 2,264,833 3,563,493 3,18],62] 3,292,]]4 3,402,454 Construction 1,145,638 1,751,855 1,288,623 1,331,086 1,375,341 Water Meter Sandi 938,159 849,886 ]85,33] 811,484 S38,707 Water/Sewer Grounds Maintenance 424,334 556,436 628,696 649,888 671,1109 Pretreatment 219,548 246,777 255,053 263,715 Information Technology ]44,]21 1,318,589 1,569,035 1,61],53] 1,657,770 Utility Billing 1,245,700 1,527,139 1,636,132 1,09,788 1,745,856 Other Requirements 8,087,603 7,06,186 8,06,875 7,290,323 ],08],386 Debt Service 1],]51,235 17,238,991 19,521,313 35,19],01] 40,317,645 TOTAL EXPENDITURES 48,941,581 54,940.84] 58,575,808 71,681,268 71,430.947 REV OVER(UNDER) EXP 5,712.320 (58].]11) 3,971.730 (1,91 (1,896.078) BEGINNING CASH EQUNALENTS 20,807,400 2$,519,726 25,932,015 29,903,745 27,957,148 RESERVE FOR DEBT SERVICE 3,796,725 4,356,022 5,488,194 8,097,130 15,]]9,915 ENDING CASH EQUIVALENTS $ 22,723,001 $ 21,575,993 $ 20.417,551 $ 19,080,018 $ 10,281.359 BOND COVERAGE -1.4 min required 2.16 1.59 1.43 1.42 1.48 CASH RESERVE RATIO -25%min req 73% 57% 66% 54% 28% NUMBER OF CONNECTIONS 37,034 37,944 38,8]] 39,833 40,619 % REVENUE INCREASE NEEDED 10.0% 0.0% 1.6% 7.5% 8.0% REVENUE BONDS TO BE ISSUED $ - $152,527,000 $12],8]5,500 $ 59,889,000 DEBT SERVICE COVERAGE REVENUES $ 54,653,901 $ 54,509,136 $ 60,469,316 $ 69,754,080 $ 75,538,869 LESS OPERATING EXPENSES 31,190,346 37,707,856 34,170,325 33,949,251 35,317,302 NET REVENUES AVAILABLE FOR $ 23,463,555 $ 16,801,280 $ 26.298.991 $ 35,804,828 $ 40,221,567 DEBTSERVICE TOTAL AVERAGE ANNUAL DEBT $ 10,854,853 $ 10,57B6,K) $ 18,418,025 $ 25,215,288 $ 27,130,037 SERVICE (LESS GO) CASH EQUIVALENTS MULTI-YEAR HISTORY - FORECAST $34 $22.]$24.4 $21.8 $19.9 `00 $20 $10.3- $10 $- Actual 2018 Amended 2019 Adopted 2020 Forecasted 2021 Forecasted 2022 45 MULTI-YEAR BUDGET 2020-22 PEARLAND ECONOMIC DEVELOPMENT CORPORATION REVENUES Sales Tax Mgmt District Reimbursements OMer' TOTAL REVENUES EXPENDITURES Operating & Service Exp Bond Payments Current Incentive Obligations Potential Future Incentives Infrast ucture/Redevelopment Lower Kirby 288 Corridor Improvements Corndor/Entryway Maintenance TOTAL EXPENDITURES REV OVER/(UNDER) EXP AMENDED ADOPTED FORECASTED $ 11,131,486 $ 11,354,116 $ 11,694,739 $ 12,045,581 441,517 559,000 - 1,000,000 1,127,000 830,000 1,420,388 986,801 $ 12,700,003 $ 12,743,116 $ 13,115,127 $ 14,032,382 2,507,040 2,575,596 2,702,564 2,736,841 11,307,132 291,300 $13,965,707 285,400 279,500 1,245,230 1,188,890 1,169,890 766,889 - 1,220,000 1,088,110 1,483,111 7,494,347 1,564,000 125,000 1,084,254 1,684,370 1,397,000 350,000 250,000 1,332,000 11,385,000 3,660,000 - 297,000 320,000 329,600 339,488 25,867,119 19,961,786 9,710,564 6,940,083 (13,167,116) (7,218,670) 3,404,563 7,092299 BEGINNING FUND BALANCE 27,132,823 13,965,707 6,747,037 10,151,600 ENDING FUND BALANCE $13,965,707 $6,747,037 $10,151,600 $17,243,899 'Other Includes Internet C51 Rent, BCD Assessments and Lower Kirby Reimbursements DEBT SERVICE FUND SUMMARY FY 2019 FY 2019 FY 2020 FY2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Property Taxes' $ 34,190,351 $ 36,501,204 $ 35,030,000 $ 36,301,300 Miscellaneous 1,051,202 874,914 1,094,914 1,121,581 Transfers 697,023 542,253 571,968 2,035,747 TOTAL REVENUES 35,938,576 37,918,371 36,696,882 39,458,628 EXPENDITURES MUD Rebates 7,169,266 7,587,066 7,328,484 7,435,253 Bond Payment 27,864,329 31,354,028 31,327,208 32,574,336 TOTAL EXPENDITURES 35,033,595 38,941,094 38,655,692 40,009,589 REV OVER/(UNDER) EXP 904,982 (1,022,723) (1,958,810) (550.961) BEGINNING FUND BALANCE 5,911,461 6,410,451 6,816,443 4,857,633 ENDING FUND BALANCE $ 6,816,443 $ 5,387,728 $ 4,857,633 $4,306,672 Reserve 10% $ 3,698,269 $ 3,894,109 $ 3,865,569 $ 4,000,959 Over Policy $ 3,118,174 $ 1,493,619 $ 992,064 $ 305,713 Funds Committed $ - $ 5,011,130 $ - $ 4,300,000 Uncommitted Fund Balance $ 6,816,443 $ 376,598 $ 4,857,633 $ 6,672 "Property Tax revenue includes $4,300,000 in "committed" fund balance the City has pledged for use if property tax revenue does not come in as expected. Breakout of Property Tax Rate DBIKF�� GEL FUND (OPERATION9� INI $03675 $0.3068 $32AM $25.4M 00/0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Tax-Supported Debt to Taxable Assessed Valuation 5.00% 4.00% 3.00% 2.08% 4.e3% 3.]8% 3.39% 3.06% 2.97% 1.00% 0.00% 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 47 DEBT SERVICE FUND SUMMARY 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 su0icient 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 certified property values, the adopted budget includes a Debt Service tax rete of $0.434434 per $100 assessed valuation to meet fiscal year 2020 obligations. The Debt Service tax rate generates $35,976,300 in current property taxes at a 99.0% collection rate, including $4,300,000 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 third year the City has designated funds to lower the Debt Service Fund Tax Rate, committing $5 million in FY19 as well. In FY 18, the City dedicated $5.1 million in fund balance. Fund revenues includes $771,581 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 $440,967 for debt associated with water/sewer construction issued with General Obligation debt to save interest costs. Expenditures total $40,009,589 for fiscal year 2020 and include $32,436,336 in bond principal and interest payments. Debt (General Obligation and Certificates of Obligation) anticipated to be issued includes $59.6 million in fiscal year 2020 pursuant to the City's capital improvement program of which, $11.4 million is reimbursable from TIRZ Ill once obligations ahead of the City are paid and the TIRZ has enough increment to pay the City. $27.5 million in General Obligation Bonds will be issued in 2020 for 2019 Bond Referendum Projects. Total principal outstanding paid from property taxes at September 30, 2020 is anticipated to be $285.4 million (this excludes new debt and property tax backed debt paid by the water/sewer fund). Net debt per capita is $2,560 at September 30, 2020, down from $2,632 in fiscal year 2019. Debt to Assessed Value, a leading indicator of the City's ability to pay debt dropped again this year to 2.97%. 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 $7,435,253, an increase of $106,769 from fiscal year 2019 year-end projections. The FY 2020 Debt Service ending fund balance at September 30, 2020 is projected to be $4,306,672 and is $305,713 over the reserve policy of $4,000,959. However, that balance includes the aforementioned assignment for potential use in debt service in FY 2020. DEBT SERVICE FUND SUMMARY IN -CITY MUNICIPAL UTILITY DISTRICT (MUD) DETAIL A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEO) 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 Hams County MUD 509 annexed new land into its MUD in 2015 (Riverstone Ranch, Massey Lake, Afton Lake, Baker's Landing, and Barry Rose/Peariand 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 tent itory, 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 Hart is 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 rale. The rebate for MUD 28 does not take into consideration whether it is debt service or OBM, so N that District's overall tax rate decreases by 15 cents, the City is thereafter relieved of its obligation to make the annual payment. FY 2019 FY 2020 FY 2018 YEAR END ADOPTED MUD DESCRIPTION TAX RATE REBATE ACTUAL AMENDED BUDGET BRAZ/FT BEND MUD 1 0.8480 N/A 1,655,022 1,774,779 1,754,324 MUD 17 0.3800 0.1500 730,415 719,837 774,241 MUD 18 0.3900 0.1500 648,822 629,706 687,753 MUD 19 0.4700 0.1500 798,791 793,626 846,720 MUD 23 0.4700 0.1500 356,072 361,867 377,438 MUD 26 0.7000 0.1500 1,227,737 1,252,596 1,301,402 MUD 28 0.8000 0.1500 808,067 837,946 856,552 MUD 34 1.0000 0.1500 637,484 699,167 675,735 MUD 35" 0.6900 N/A 143,218 17,910 MUD 509 0.8500 0.1500 163,636 241,050 161,088 TOTAL MUD REBATES 7,169,266 7,328,484 7,435,253 '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. GOVERNMENTAL DEBT MATURITY SCHEDULE AS OF 9/30/2019 Fiscal Year Principal Interest Total 2019-2020 19,480,000 12,894,125 32,374,125 2020-2021 19,835,000 12,189,343 32,024,343 2021-2022 20,395,000 11,376,999 31,771,999 2022-2023 21,040,000 10,498,511 31,538,511 2023-2024 21,660,000 9,545,136 31,205,136 2024-2025 22,465,000 8,564,574 31,029,574 2025-2026 23,075,000 7,573,268 30,648,268 2026-2027 23,870,000 6,527,024 30,397,024 2027-2028 24,650,000 5,489,458 30,139,458 2028-2029 25,435,000 4,469,518 29,904,518 2029-2030 29,615,000 3,295,946 32,910,946 2030-2031 18,105,000 2,319,880 20,424,880 2031 -2032 17,370,000 1,650,549 19,020,549 2032-2033 8,495,000 1,147,931 9,642,931 2033-2034 8,590,000 833,975 9,423,975 2034-2035 6,360,000 554,503 6,914,503 2035-2036 5,085,000 328,753 5,413,753 2036-2037 3,245,000 164,456 3,409,456 2037-2038 1,865,000 59,500 1,924,500 2038-2039 505,000 10,100 515,100 TOTAL 321,140,000 99,493,549 420,633,549 $35,000,000 $30,000,000 $25,000,000 $20,000,000 ■ $15,000,000 $10,000,000 $5,000,000 $0 00^ 0� O� O�'p ti ti ti ti ti 00,0 O.te Ory 00'0 T ti ti ti 00 O� 00^ Oery O ti ti ti ti ry ti e�h 0�6 O0�9 O�'9 ry ti ti ti ti ■City Principal ■TI RZ Principal ■City Interest TIRZlnterest 50 GENERAL FUND SUMMARY OVERVIEW The General Fund provides the financing for all 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 56.9% 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 613.5 full-time positions and 129 par -time positions including utilities, fuel, park and right-of-way maintenance, and street lighting, just to name a few. EXPENDITURES General Government FY 2018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET REVENUES 42,277,271 45,258,605 46,023,417 48,327,734 Property Taxes $20,383,959 $21,332,769 $22,952,305 $25,704,801 Sales & Use Taxes 22,662,007 22,855,294 22,438,980 22,669,370 Franchise Fees 7,097,568 7,296,694 7,272,488 7,242,757 Licenses & Permits 4,145,496 3,785,535 3,882,867 3,887,350 Fines & Forfeitures 2,322,398 2,110,750 2,452,750 2,445,750 Charges for Service 16,051,689 17,618,566 16,900,459 18,291,338 Miscellaneous 1,625,783 1,233,806 1,687,903 1,743,854 Transfers In 3,816,116 4,560,460 4,674,460 4,949,456 TOTAL REVENUES 78,105,016 80,793,874 82,262,212 66,934,676 EXPENDITURES General Government 10,927,049 10,494,897 11,072,549 11,387,511 Public Safety 42,277,271 45,258,605 46,023,417 48,327,734 Community Services 4,050,477 4,307,687 4,147,697 4,303,693 Public Works 13,997,803 12,651,388 13,830,730 14,154,818 Parks & Recreation 6,090,666 6,335,737 6,462,780 6,704,582 SUBTOTAL EXPENDITURES 77,343,265 79,048,314 81,537,173 84,678,336 Transfers Out 1,009,451 1,375,798 1,220,886 1,333,173 TOTAL EXPENDITURES 78,352,717 80,424,112 82,758,059 86,211,511 REV OVER/(UNDER) EXP (247701) 369,762 (495847) 723,165 BEGINNING FUND BALANCE 14,508,766 11,886,007 14,261,065 13,765,218 ENDING FUND BALANCE $14,261,065 $12,255,769 $13,765,218 $14,488,383 Policy - 2 months Recurring Oper. 11,828,989 12,181,840 13,604,064 14,362,838 Fund Balance Over Policy 2,432,076 73,929 161,154 125,545 GENERAL FUND SUMMARY OVERVIEW — FUND BALANCE The City anticipates ending FY 2019 on September 30, 2019, with a fund balance of $13,765,218, $161,154 over fund balance policy. The adopted FY 2020 fund balance over policy is $125,545 a decrease of $35,609 from the 2019 amended budget, with FY 2020 adopted ending fund balance of $14,362,838. REVENUES Revenues in FY 2020 are anticipated to exceed those in 2019 in all categories except Fines & Forfeitures and Franchise Fees revenues. Overall, the increase in total revenues from FY 2019 is 5.7%. Property tax, sales tax and charges for services are the three major revenue sources for the City. Property Tax revenues increased in 2020 by 12% over FY 19 year-end amended revenue. FY 2020 sales tax revenue is projected to grow at 1.0%. Charges for Services include TIRZ administration fees, which are increasing by $432,880 as a result of property values in the TIRZ increasing. Franchise Fees are decreasing due to legislative changes. Fines & Forfeitures for FY 20, based on the trajectory of the last several years, are expected to decline. All other revenue sources have minor changes. Total Revenues FY 2020 Adopted $86,934,676 FY 2019 Amended $82.262.212 Increase/(Decrease) $ 4,672,464 5.7% increase EXPENDITURES Fiscal year 2020 total expenditures are $86,211,511, 4.2% higher than the FY 2019 Amended Budget. Salaries and benefits remain the major expenditure for FY 20, at 71.7% of the total an increase of 0.72 percentage points over FY 2019 Amended. Major changes in the General Fund are described in the Budget Overview section. Police and Fire remain the focus of the supplemental funding. The FY 2020 adopted budget contains two new police officers, two telecommunication officers, and continues to bring firefighters on board with thirteen new positions. Public Works saw a slight increase of $400,000 in funding for street and sidewalk rehabilitation over FY 2019 adopted. A 2% cost of living increase is included for all personnel, to support recruitment and retention efforts. Total Expenditures FY 2020 Adopted $86,211,511 FY 2019 Amended $82.758.059 Increase/(Decrease) $ 3,453,452 4.2% increase General Fund Expenditures by Type Other 0.3% FY 2019 ORIGINAL BUDGET Capital Outlay 0.9% Salaries & Wages Inventory 0.5% $58,732,447 Transfers 1.5% 2,264,965 Motor Pool Transfers 2.9 2,634,036 Equipment Maintenance 3.3 2,158,391 Buildings & Grounds 2.70 Equipment Repair& Maintenance Materials & Supplies 3 p 2,020,659 Miscellaneous Services Miscellaneous Services 129% 0 Salaries & Wages 0% 10% 20% 30% 40% 50% 60% 70% 80% BY CATEGORY FY 2018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAR END AMENDED FY 2020 ADOPTED BUDGET Salaries & Wages $53,952,027 $58,806,243 $58,732,447 $61,804,255 Materials & Supplies 2,264,965 2,333,953 2,374,179 2,634,036 Buildings & Grounds 3,063,638 2,158,391 2,788,455 2,348,911 Equipment Repair& Maintenance 3,117,319 1,941,461 2,020,659 2,886,741 Miscellaneous Services 11,812,313 10,809,209 11,513,090 11,157,240 Other Charges 19,180 251,245 145,784 265,700 Inventory 779,348 443,865 478,569 455,453 Capital Outlay 2,334,476 425,638 901,873 794,306 Motor Pool Transfers 1,878,309 2,582,117 2,531,696 SUB -TOTAL 77,343,265 79,048,314 81,537,173 84,878,338 Transfers 1,009,451 1,375,798 1,220,886 1,333,173 TOTAL $78,352,716 $80,424,112 $82,758,059 $86,211,511 53 GENERAL FUND EXPENDITURES FY 2019 A 2018 ORIGINAL FUNCTION/DEPARTMENT ACTUAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET GENERAL GOVERNMENT City Council S 109,438 S 143,741 S 143,538 S 139,633 City Manager 996,292 1,076,495 1,096,801 1,055,947 Legal 846,919 818,855 825,592 913,388 City Secretary 413,327 381,108 486,042 463,368 Human Resources 1,049,617 1,115,248 1,159,406 1,362,773 Finance 2,152,389 2,201,814 2,230,791 2321,598 Information Technology 3,235,567 3,024,785 3,197,218 3,389.324 Other Requirements' 2,123,500 1,732,851 1,933,161 1,741,480 GENERAL GOVERNMENT TOTAL $10,927,00.9 $10,494,897 $11,072,549 511,387,511 PUBLIC SAFETY POLICE 28,825,594 28,089,784 28,777,018 29,855,498 Police Administration 1,945,442 1,880,489 1,991,929 1,946,425 Patrol 14,735,115 15,311,045 15,891,700 16,127,80 Investigations 3,188,500 3,377,595 3,567,241 3,793,469 Commercial Vehicle Enforcement 247,281 268,353 262,855 268,393 Community Service 870,388 1,047,357 1,078,215 1,117,026 Training 296,971 317,535 325,035 326,485 School Resource Officers(SRO) 1,398,160 1,449,792 1,462,530 1,535,990 Communications & Records 2,178,413 2,313,723 2,223,420 2,420,662 Jail 1,150,125 1,209,394 1,142,101 1,154,291 Animal Services 815.200 894,501 831.992 964,874 FIRE 15,451,676 17,188,821 17,248,309 181 Fire Administration 1,171,212 1,292,831 1,308.819 1,480.493 Fire Operations 12,643,332 14,127,7% 14,150,502 15,477,435 Fire Marshal 848,045 906,747 910,155 842,898 Emergency Management 160,217 225,314 244,983 237,305 Healtind a Enforcement 628,871 636,170 631,940 634,105 PUBLIC SAFETY TOTAL 342,277,271 345,258,605 346,023,417 5348,327,734 COMMUNRYSERWCES Community Development Community Development Administration 429,155 524,359 584,877 247,181 Permits &Inspectons 1,256,808 1,357,631 1,216,828 1,188,797 Planning 649,823 613,400 515,978 683,525 Development Services 375,039 Communications 531,915 568,378 615,742 609,426 Municipal Could 815,148 840.995 822,790 810,137 Library' 367,628 402,924 391,482 389,586 COMMUNITY SERVICES TOTAL $4,OW,4P 56,307,887 $4,147,697 $4,303,693 PUBLIC WORKS Public Works Operations Administration 772,522 317,576 327,440 3047473 Traffic Operations and Maintenance 993,068 241,027 Custodial Services 399,626 530,760 5491869 559,035 Real Management 496,118 8,200 Streets & Drainage 5,563,115 4,299,832 5,150,350 5,069,074 Right -Of -Way Maintenance 1,515,674 2,3447507 2,274,192 2,444,281 Facilities Management 1,595,986 1,658,857 1,747,333 1,650,137 ENGINEERING & CAPITAL PROJECTS Traffic Opemtions and Maintenance 5,195 333,534 701,569 1,125,937 Engineering 1,495.172 1,580,840 1,561,423 1,556,029 Capital Projects 1,161,327 1,3447365 1,510,314 1,443,852 PUBLIC WORKS TOTAL $13,907,803 $12,651,388 $13,830,730 $14,154,818 54 GENERAL FUND EXPENDITURES FY 2019 FY2018 ORIGINAL FUNCTIONIDEPARTMENT ACTUAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET PARKS & RECREATION Administration 774,838 001,816 840,277 059,398 Recreation Cenmr/Natatorium 384308 433.712 436,569 434,199 Athletics 298.744 359,931 312,544 338.087 Special Events 393,027 393,924 393,596 446,492 Senior Progam 264,477 302,682 311,170 319,784 Aquatics 572,021 584,451 578,358 595,741 Parks 1,925.648 1,986,711 2,090,517 2.156.302 Recycling 1,174 1,200 1,200 1,200 Natural Resources 263,468 275,889 289,544 323,706 Recreation Operations 1,212,963 1,215,421 1,209,005 1,229,673 PARKS 8 RECREATION TOTAL 6,090,666 6,335,]3) 6,462,780 6,704582 TOTAL OPERATING EXPENDITURES ]7,313,285 79,048,314 11.537.171 84878,338 Transfers 1,09,451 1,375,798 1,220,886 1,333,173 GENERAL FUND TOTAL $ 78,152,717 $ ege24112 $ 82,758,059 $ 88.211,511 r Other Requirements excludes lranffiers, vfilch ere listed after Total Operating Expenditures. r Library employeessalaries are funded by the County; the City pays all operating expenses. General Fund Expenditures by Department Community Services 5.1 Parks & Ree 7.9 % General Government 13 4yb Public Works i� 16.7% Public Safety 56.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 56 General Government Mayor & City Council Legal City Manager Information Technology Deputy City Manager City Secretary Finance Human Resources GENERAL GOVERNMENT EXPENDITURE SUMMARY GENERAL GOVERNMENT TOTAL $10,927,049 $ 10,494,897 $ 11,072,549 $11,387,511 'Expendmares listed here for other Requirements do mt Include transfers. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY DEPT DIVISION ACTUAL BUDGET AMENDED BUDGET City Council S 109,438 $ 143,741 $ 143,538 $ 139,633 City Manager 996,292 1,076,495 1,096,801 1,055,947 Legal 846,919 818,855 825,592 913,388 City Secretary 413,327 381,108 486,042 463,368 Human Resources 1,049,617 1,115,248 1,159,406 1,362,773 Finance 2,152,389 2,201,814 2,230,791 2,321,598 Information Technology 3,235,567 3,024,785 3,197,218 3,389,324 Other Requirements' 2,123,500 1,732,851 1,933,161 1,741,480 GENERAL GOVERNMENT TOTAL $10,927,049 $ 10,494,897 $ 11,072,549 $11,387,511 'Expendmares listed here for other Requirements do mt Include transfers. General Government Expenditures as Percentage of Operating Budget FY 2020 -13.4% of the $84.9 million Operating Budget City Counal City Secretary 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% 4.0% 4.5% FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET Salaries & Wages $ 5,327,629 $ 5,400,245 $ 5,836,063 $ 5,893,555 Materials & Supplies 197,319 183,073 201,356 259,279 Equipment Repair & Maintenance 1,493,021 1,609,044 1,692,600 1,845,304 Miscellaneous Services 3,224,711 2,641,991 2,781,477 2,723,704 Other Charges 16,085 248,245 142,734 261,700 Inventory 631,628 406,600 412,620 402,000 Capital Outlay 36,656 Motor Pool Transfers 5,699 5,699 1,969 GENERAL GOVERNMENT TOTAL $10,927,049 $10, 9 ,897 $11,072,549 $11,387,511 General Government Expenditures as Percentage of Operating Budget FY 2020 -13.4% of the $84.9 million Operating Budget City Counal City Secretary 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% 4.0% 4.5% CITY COUNCIL GOALS • Maintain strong relationships with Federal, State and Local enfilies and staff executives 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 property tax rate and debt service rate. to accomplish objectives and remain a positive place to live and build. ♦ With ordinances, development regulations, and policies, maintain the characteristics that make Pearland a safe, warm community with attractive neighborhoods, accessibility, and cosmopolitan feel while enhancing the sense of community building, quality of life improvements and beautification opportunities. FISCAL YEAR 2019 ACCOMPLISHMENTS • Focus on the community's goals, long-term considerations as community growth, land use development, major projects, capital improvement plans, capital financing and strategic planning. ♦ Maintain a high level of citizen satisfaction and cost-effective delivery of City services: Value for tax dollars. ♦ Strive for land uses that build the prosperity of the City: Balancing property tax values, sales tax revenue and primary jobs. • Ensure continued sound fiscal policies and effective budget oversight. ♦ Improve and formalize systems for Council -appointed committees. • Provide a better understanding of individual Councilmember roles in supporting City's critical work. ♦ Awarded various Capital Improvement projects to assist with the grow01 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 2020 OBJECTIVES • 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 Cil Strategic Prior0ies. ♦ Adopt an annual budget for 2020/2021 that will ensure sustainability for the City over the next 5 plus years. PERFORMANCE MEASURES FY 2017 FY 2018 FY 2019 FY 2020 Actual Actual Actual Target Ordinances Considered 71 49` 39 53 Resolutions Considered 201 233 295 243 58 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 Cry 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 Cry 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 Peadand 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. Key Budget Items for FY 2020 Include: ♦ No significant items GOALS ♦ Keep City Council informed of the critical business of the City. ♦ Keep Pearland citizens and businesses updated on the operations of the City via the City's webers, social and print media. • Provide transparent and timely financial and capital project reports to City Council. ♦ Present an annual operating budget to City Council that meets the needs of a growing and dynamic City. • Continue to advocate for added traffic safety/transportationcapacity and mobility improvements city- wide. ♦ Support Strategic Economic Development growth. FISCAL YEAR 2019 ACCOMPLISHMENTS ♦ Held City Council Early Budget Input Session on February 14, 2019. • Provided detailed Capital Project information that lead to May 4, 2019 Bond Referendum. ♦ Provided detailed Municipal Utility District (MUD) information which lead to adoption of new MUD rebate policy on July 22, 2019. • Submitted a balanced budget to City Council which was adopted on September 23, 2019. FISCAL YEAR 2020 OBJECTIVES • Present funding issuance and refunding opportunities to maintain or reduce the City's overall debt service. ♦ Provide essential and quality of life services that meet the needs of the citizens. • Bring forward the Drainage Utility discussion for consideration for a May 2020 ballot measure. CITY MANAGER "The number of authorized FTE employees is beead on th budgeted amount of full-time equivalent positions, including approved changes. FY 2016 FY 2017 IFY 2018 FY 2019 Actual Actual Actual Target Number of authorized FTE' employees 6.38 6.28 6.28 6.28 per 1,000 population GF Operating Budget $ per capita $660 $713 $660 $643 "The number of authorized FTE employees is beead on th budgeted amount of full-time equivalent positions, including approved changes. CITY SECRETARY OVERVIEW The City Secretary's office is now the first point of contact for persons visiting the City Hall. We serve as a resource and link between citizens, visitors to City Hall, and the City organization, quickly identifying and connecting the public to the right person or resource. 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 Brazona County, maintains historical records and archives, and provides the public with information in accordance with the Texas Public Information Act. The office manages recruitment for Boards and Commissions appointment, maintains applications, resumes, certifications, letters and questionnaires. STRATEGIC COUNCIL PRIORITY: The City Secretarys office ensures citizens have access to agenda information and can participate in the local decision-making process, vole in elections, speak at public hearings, and request and receive official records, in ways that promote an Engaged Community. Key Budget Items for FY 2020 Include: ♦ GOVQA Public Records Request Management (FOIA) Software GOALS ♦ Record and maintain all City Council actions accurately and in a timely manner. ♦ Implementation of Boards and Commission to centralize and manage the application process, creating profiles, track terms, and provide meeting access. Improve the public's visibility into boards, commissions, committees and members ♦ 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. ♦ Enhance 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. ♦ 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 2019 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 quarterly iCompass automated agenda training. • Administered Oaths of Office for new City Employees. ♦ Processed Boards and Commission. ♦ Successful administration of City General Elections. CITY SECRETARY FISCAL YEAR 2020 OBJECTIVES ♦ Implement the automated minute module in iCompass 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 Cade and the laws of the State of Texas. The City Secretary's Office will be available to aid 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 formal. 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. • Conduct City wide training of the !Compass (agenda software), agenda process, and Public Information Act. ♦ Successfully administer the 2020 City Elections ♦ Administer the department's budget efficiently and monitor the funds allocated and expended. PERFORMANCE MEASURES FY FY FY FY 2017 2018 2019 2020 Actual Actual Actual Target PUBLIC RECORDS Open Records Requests processed (Freedom of information Act) 1,294 1,687 1,822 1,900 ELECTIONS Number of registered voters (average) 68,633 71,459 73,216 75,000 Number of votes cast (average) 7,660 7,315 6,047 8,000 Average %of voter turnout 11.2% 10.24% 8.26% 10.0% 62 LEGAL R 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 -lime 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 specialiutl 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 2020 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. ♦ 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 daily. ♦ Coordinated legal proceedings allowing for the demolition of 12 unsafe structures in the City. • 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. LEGAL ♦ 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. • Facilitate 2020 election for proposed Charter Amendments. 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 Budaet Items for FY 2020 include: ♦ Cyber Security Specialist ♦ Application Support Specialist GOALS • Provide citywide innovation and leadership in the utilization and deployment of information technology services and applications. ♦ Ensure high-quality, effective and efficient production environment 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 mom effectively and efficiently address problems, develop plans, and manage the natural, cultural, economic, and infrastructure resources of the City of Peadand, thus increasing productivity. ♦ Maintain, update and expand the digital/interactive mapping systems of the City's infrastructure. ♦ Provide timely, accurate, and meaningful GIS data leveraging the City's Enterprise Platform. • Convert and integrate available data into a standard format to import into a centralized database. ♦ Produce informative maps, reports, and digital graphics, dashboards, and assist with the presentation of geographic information. • Maintain responsibility for the ongoing process of creating, maintaining and managing the City's growing digital footprint. ♦ Evaluate long-term coordination needs of the GIS user community and direct a strategic plan to facilitate coordination. ♦ Implemented new Contact Center initiative to support external customer service needs for Parks, Permitting, Utility Billing, and Municipal Court. • Converted to a digital platform for signage at key facilities supporting the City's proactive communication approach. INFORMATION TECHNOLOGY ♦ Implemented 30 of the 50 cameras at key intersections to support Police video uploads along with wireless capabilities. ♦ Provided technology solutions for the new Nature Center and Fire Station 1. ♦ Implemented performance metrics/dashboard solution for call volume statistics to provide the best possible customer experience. • Implemented new technology for the City's Emergency Operations Center. ♦ Normalized data in New World to deliver visual representation of utility billing account information in GIS. ♦ Migrated City's storage solution over to a new platform providing increased capacity and performance. • Installed 47 new mobile data terminals for Police and Fire vehicles. ♦ Implemented technology backend solution to support the advanced meter infrastructure project. ♦ Implemented new cyber security technology to reduce the City's risk from a cyber -attack. ♦ Created an interlocal cooperative initiative with the Manvel Police Department allowing them to utilize our Police Departments computer-based system. ♦ Initial rollout of Microsoft Office 365 completed for the Information Technology Department. ♦ Completed a full review of the City's landline circuits as a cost reduction effort. • Created a SharePoint steering committee to organize content delivery method preparing for the full implementation of Office 365. ♦ Implemented new council meeting delivery format to push live video to Youl and Facebook. ♦ Engaged Department of Homeland Security (DHS) to assist in reviewing the City's cyber security posture. • Develop new GIS website providing several enhancements for residents. ♦ Created application to import Brai County Appraisal District information into GIS for visual representation. • Imported New World utility billing information into Trak0 consisting of owner and tenant information. • Streamlined health inspection data integrating with the City's website removing the manual process. FISCAL YEAR 2020 OBJECTIVES ♦ Implement Office 365 for remaining City departments. • Continue to support the advanced meter infrastructure project. ♦ Implement 2019.1 New World ERP software to provide year end close out solution. • Replace Toughbooks in Police and Fire vehicles that are at their end -of -life cycle. ♦ Implement Asset Management system and coordinate with Public Works for roll out. ♦ Create and customize GIS dashboards for Public Works, Police, and Fire operations. ♦ Integrate database information into GIS to provide visual representation of the data. ♦ Support the addictions of new Public Works, Fire Station 8, and West Side Library facilities. • Pilot GPS based traffic pre-emption solution. ♦ Install remaining e1ricket writers for the Police Department. ♦ Coordinate SCADA redesign with Capital Projects and Public Works. ♦ Implement new SharePoint site for the City's Intranet. • Provide support for new public records solution software. • Work with League City Police Consortium to allow cross functional data transmission. INFORMATION TECHNOLOGY PERFORMANCE MEASURES FY 2017 FY 2018 Actual Actual FY 2019 Actual FY 2020 Target Number of PC's supported 706 756 770 ]90' Number of support calls 906 1200'" 1000 900 Number of new software programs installed 2 4 2 15 Average number of CIS layers maintained 135 142 150 180 Number of maps requested/prepared 256 225 200 180"' Pc sour.... on, to aaaalnnal yemnnel and famlme: (Fire suction el • call mml¢lncreased based on consolidating to one mainline for IT Emergency HNP " "duction tame is to facilitate more electronic viewing capabilities and s ashboun is 67 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 noncapital 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 sustainabil9y of our C9ys 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 2020 Include: • Senior Accountant 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 2019 ACCOMPLISHMENTS • Began implementation of the ExecuTime system, with advanced scheduling for Public Safely departments and time keeping systems for other departments with integration into the City's New World financial systems. ♦ 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. FINANCE • Awarded the Government Finance Officers Association's Cerfdicate of Achievement for Excellence in Financial Reporting for the 41st consecutive year. ♦ Obtained the Government Treasurer Organization of Texas (GTOT) Investment Policy Certification ♦ Updated Comprehensive Financial Management Policies FISCAL YEAR 2020 OBJECTIVES ♦ Begin implementation of a department wide Cross-training and Succession Planning Initiative ♦ Implement a new time keeping 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. ♦ 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 Assam. ♦ Maintain the State Comptrollers 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 2017 FY 2018 FY 2019 FY 2020 Actual Actual Actual Target Investments in compliance with policy and PFIA 100% 100% 100% 100% Number of audit comments 0 0 0 0 Tax Backed Send Rating MODdi's Aa2 Aa2 Aa2 Aa2 Fitch AA AA AA AA Revenue Bond Rating Moodys Aa3 Aa3 Aa3 Aa3 Fitch AA- AA- AA- AA- ea 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 2020 Include: • Radio maintenance agreement with City of Houston -$300,000 • KPB franchise fee -$300,000 • Credit Card Charges - $320,000 • Sales tax incentives (Kelsey Seybold and Costco) - $250,000 • Capital leases - lease on pumper truck ($87,471), ERP lease ($166,809) and lease on ladder truck and Parks and Recreation equipment ($125,336). Public Safety City Manager 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 PUBLIC SAFETY EXPENDITURE SUMMARY FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY DEPT/ DIVISION ACTUAL BUDGET AMENDED BUDGET Police Administration $ 1,945,442 $ 1,880,489 $ 1,991,929 $ 1,946,425 Patrol 14,735,116 16,311,046 15,891,700 16,127,863 Investigations 247,281 268,353 262,855 268,393 Commercial Vehicle Enforcement 3,188,500 3,377,595 3,567,241 3,793,489 Community Service 870,388 1,047,357 1,078,215 1,117,026 Training 296,971 317,535 325,035 326,485 School Resource Officers (SRO) 1,398.160 1,449.792 1,462,530 1,535.990 Communications &Records 2,178,413 2,313,723 2,223,420 2,420,662 Jail 1,150,125 1,209,394 1,142,101 1,154,291 Animal Services 815,200 894,501 831,992 964,874 POLICE TOTAL 26,825,594 28,069,784 28,777,018 29,655,498 Fire Administration 1,171,212 1,292,831 1,308,819 1,480,493 Fire Operations 12,643,332 14,127,759 14,150.502 15,477,435 Fire Marshal 848,045 906,747 910,155 842,898 Emergency Management 160,217 225,314 244,983 237,305 Health/Code Enforcement 628,871 636,170 631,940 634,105 FIRE TOTAL 15,451,678 17,188,821 17,246,399 18,872,238 PUBLIC SAFETY TOTAL $42,277,271 $45,258,605 $46,023,417 $48,327,734 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET Salaries & Wages $ 36,736,012 $ 40,241,874 $ 40,219,344 $ 42,280,469 Materials & Supplies 1,102,280 1,217,402 1,235,731 1,359,286 Equipment Repair & Maintenance 28,611 28,300 36,296 53.615 Miscellaneous Services 1,222,963 235,217 242,208 822,729 Other Charges 1,753,981 1,868,926 1,910,016 1,940,758 Inventory 106,178 37,265 43,633 47,653 Capital Outlay 1,327,246 166.152 282.912 190.000 Motor Pool Transfers 1,463,469 2,053,277 1,633,224 PUBLIC SAFETY TOTAL $ 42,277,271 $ 45,258,605 $ 46,023,417 $ 48,327,734 Public Safety Expenditures as Percentage of Operating Budget FY 2020 - 56.9% of the $84.9 million Operating Budget Fire 22.0 Police 7� 1 It== 34.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% ]2 POLICE 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, Rape Aggression Defense, Citizen Response to Active Shooter Events, neighborhood watch programs, security surveys, home safety inspections, Teen Citizens Police Academy, Police Explorers, Youth Leadership Academy, as well as other programs. The department operates out of the Public Safety Building on Cullen Boulevard. Pearland Animal Services is also within the purview of the City's Police Department. 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 Animal Control 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 20 Include: • Addition of two sworn officers ♦ Addition of two Communications Operators 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 through enforcement of traffic laws, reducing the number of motor vehicle and pedestrian accidents. Provide targeted enforcement in neighborhoods to reduce traffic violations and improve safety for residents. Identify and target organized criminal activity groups committing offenses. POLICE • 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 cruelly laws when necessary. • Reduce euthanasia rales for animals and work toward a "no -kill" shelter status. • Utilize DDACTS as an effective police strategy to reduce crime and traffic crashes in *hot spot" areas. • Improve social media responsiveness and the quantity and quality of posts. • Partnered with PISD to enter into a 3 -year Inter -local Agreement for SRO services, increasing compensation to the City. • Began preliminary design of a new Animal Shelter after passage of the 2019 Bond package. • Provided over 15,000 hours of training and hosted over 90 police agencies. • Utilized DDACTS to reduce many part 1 crimes in "hot zones." • Adopted less lethal munitions (bean bags) as another option to avoid the use of deadly force. • Graduated two Citizen Police Academies, a Teen CPA, and collaborated with Explorers from Post #237 to successes at competitions. • Launched the Special Investigative Unit in CID to tackle proactively quality of life crimes and issues. • Trained 16 police officers as swift water rescuers and deployed twice with multi -departmental teams to actual Flooding events. • Hosted a successful National Night Out. • Continued succession planning through training and certifications of supervisory and non -supervisory personnel. • Trained all departmental personnel in De-escalation. • Created a new Custodian of Records position from within the Records unit to streamline processing and to take task duties away from a management position. • Implemented and trained a second Civilian Crime Scene Technician. • Signed an agreement with the City of Manvel to bring Manvel PD into the Peadand PD consortium for OSSI/CentralSquare. • Conducted training to add additional personnel as certified UAS pilots. • Conducted Rape Aggression Defense training. • Completed the remodel of the communications center. • Began procurement procedures for a Mobile Command Posts with funds coming from Federal and State Seizures, PEG funds, a hefty donation from the Pearland Citizens Police Academy Alumni Association, and a small portion from the General Fund. FISCAL YEAR 2020 OBJECTIVES • Finalize procurement of an MCP and make it available for deployment. • Complete or prepare for a Phase I environmental study of land for use as a possible gun range andfor driving track. • Start the Texas Chief of Police Association Recognition process. • Thoroughly review dispatch operations and processes and increase telecommunications staffing. • Increase the number of training personnel to meet demands for police and civilian training in law enforcement. • Improve Employee Wellness through implementation of a departmental policy and incentives for healthy living. • Continue the process of acquiring a new Animal Shelter and working with Capital Projects and other departments on this goal. • Complete distribution of E -ticket writers to all patrol vehicles. POLICE ♦ Complete the deployment of OSSI/CentmlSquare to Manvel PD. ♦ Finish assisting Peadand ISD with their reunifcation plan. • Improve the collaboration with Alvin ISD PD through appointment of a liaison and meetings between key departmental personnel. ♦ Finish the application process for Pearland to be certified by TCOLE as a police academy. • Keep priority 1 response times to the 90" percentile under 7 minutes. Average Response Time per Car from Receipt of Call to Arrival on Scene 4 min 02 sec 4 min 3 min 53 sec 3 min 39 sec FY 201] FY 2018 FY 2019 FY 2020 Target FY 2017 FY 2018 FY2019 FY 2020 FY 2017 FY 2018 FY2019 FY 2020 Target Target Number of Animals Received at the Animal Shelter 2,300 2,250 2,250 2 2,200 ,178 2,160 2110 2,100 2,050 1.988 2,000 1,950 1,900 FY 2017 FY 2018 FY 2019 FY 2020 Target 76 Total Number of Part 1 Offenses Total Cases Assigned CID 2.300 2,250 2,137 2,208 2,550 2,503 2,476 2,200 2.173 2,150 2,450 2,100 2,350 2,302 2,330 2050, 2,0001,93] 2,250 1,950 1,900 2,150 1,850 1,800 2,050 FY 2017 FY 2018 FY2019 FY 2020 FY 2017 FY 2018 FY2019 FY 2020 Target Target Number of Animals Received at the Animal Shelter 2,300 2,250 2,250 2 2,200 ,178 2,160 2110 2,100 2,050 1.988 2,000 1,950 1,900 FY 2017 FY 2018 FY 2019 FY 2020 Target 76 POLICE FY 2017 Actual FV 2018 Actual FV 2019 Actual FY 2020 Target Violent and non-violent person crimes reported 845 1066 787 900 Property and society crimes reported 4,308 4,482 4,241 4A00 Training hours completed, Pentland Officers 11,498 11,442 13,253 12,000 Average time - citizen call to unit dispatched lin 47 sec 45 sec 50 sec 48 sec seconds), Priority 1 Calls Number of offense l crash reports taken 11,416 12,609 12,293 12,200 Total arrests made by police 4,857 4,808 4,602 4,700 Dispatched calls per Patrol Officer / month 63 61 58 60 Average response time per car, Priority 1 Calls 3min 39 4min 02 3min 53 sec we SBC Number Number of animals received at animal shelter 2,178 1,988 2,116 2,250 Percent of animals adopted 83% 71% 87% 80% 76 OVERVIEW The Fire Administration Division provides logisfical, 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, two Emergency Service Districts (ESD 4 and ESD 5) as well as its Extra Territorial Jurisdiction (ETJ).Pearland's ISO Public Protection Classification is a rating of 2/88, 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 safely 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 Peadand 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. Emergency Management help foresee and mitigate the consequences of disaster, prepares City staff and residents to respond effectively to disaster and facilitates the expeditious recovery of Peadand's business sector, residents and critical infrastructure. Key Budget Items for FY 2020 include: ♦ Continuous onboarding of Firefighters$871,087 GOALS • Decrease the number of fres 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 engagement and awareness. ♦ Increase operational readiness and response capabilities through effective training and equipment. Inspect all health code permitted businesses semi-annually. ♦ Enhance community preparedness via the Emergency Management Grant Program and maximize federal reimbursement of City disaster preparedness costs. • Increase seff-sufficiency by evolving the City's disaster response capability, staff proficiency and training. ♦ Develop City disaster recovery plans to integrate and fully utilize community resources, including faith - based and non-profit organizations, to organize disaster recovery in a unified, efficient and effective manner. FIRE FISCAL YEAR 2019 ACCOMPLISHMENTS ♦ Continued implementation of Fire Department Strategic Plan. • Continued implementation of Lei policy management system. • Completed construction of new Fire Station #1 to replace the existing Fire Station #1. ♦ Continued onboarding of personnel for new Fire Stations. • Established citywide Emergency Management Working Group • Began training FD staff in Water Rescue courses. ♦ Established a City incident management team, began position-specifc training, and increased water rescue capabilities. • Revised and updated annexes to the City's emergency operations plan and completed training and exercise plan in compliance with Emergency Management Program Grant requirements. ♦ Implemented annex briefings for senior staff meetings. ♦ Completed a periodic 5 -year update of the City's Hazard Mitigation Plan. • Convened a dialysis workshop involving City staff, Peadand dialysis providers, Brazoria County Department of Public Health and the Southeast Texas Regional (Trauma) Advisory Council (SETRAC). ♦ Conducted a "Points of Distending" deployment drill to assess the City's ability to rapidly establish points of dispensing for pharmaceutical prophylaxis in response to a highly -lethal public health emergency. Conducted a Pearland Recovery Workshop to evolve the City's recovery plans and align expectations for catastrophic planning and post -disaster housing and logistics and supply -chain management. ♦ Complete construction of new Fire Station #8. • Begin design of Fire Station #9 ♦ Take delivery of the new Engine and Ladder Truck for Fire Station #8. • Review, revise and continue implementation of Fire Department Strategic Plan. ♦ Continue onboarding of personnel for new Fire Stations. • Complete implementation of Lexipol policy management system. ♦ Implement a new Fire Department training plan. ♦ Continue abatement of substandard structures. • Increase the number of annual fire inspections. ♦ Satisfy Emergency Management Performance Grant program requirements. • Continue to develop disaster response and recovery self-sufficiency via acquisition of response equipment and staff training, with emphasis on incident management team proficiency. • Conduct a full-scale exercise of the City's "Point of Dispensing" capability to validate response plans for a public health emergency and ensure Pearland can meet dispensing goals established by the Center for Disease Control for a highly -lethal bio -terrorism scenario. ♦ Continue to refine the City's emergency operations plans to ensure they meet the needs of the community. • Conduct preparedness and alignment workshops for Peadand's faith -based community and long-term healthcare facilities. FIRE PERFORMANCE MEASURES FY 2017 FY 2018 Actual Actual FY 2019 Actual FY 2020 Target Average Response Time: Percent 5 minutes or less 40% N/A N/A N/A Percent 9 minutes or less 83% N/A N/A N/A Alarm processing time <= 90 seconds N/A 73% _ 90% Alarm processing time <= 120 seconds N/A 84% _ 99% Turnout Time r_ 2 minutes N/A 89% _ 90% Call to (ret unit arrival <= 7:30 N/A 51% 560% 90% Call to arrival of ERF <= 11:30 N/A 29% 21% 90% Total Estimated Fire Loss $2,521,840 $2,950,592 $2,484,540 Number of Code Enforcement Cases Opened 2,745 2,962 2280 3500 Number of Annual Inspections 2,211 1,720 1765 2000 Emergency Medical Transports 4,614 4,500 5023 Public Safety Education Hours 420 610 460 700 79 Community Services Mayor & City Council Municipal Court Judge City Manager Community Development Administration Permits & Inspections Planning Development Services Deputy City Manager Communications Library Municipal Court COMMUNITY SERVICES EXPENDITURE SUMMARY FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED Administration 429,155 524,359 594,877 247,181 PennOs&Inspections 1,256,808 1,357,631 1,216,828 1,188,797 Planning 649,823 613,400 515,978 683,525 Development Services 3,202,233 3,400,556 3,236,652 375,039 Communications 531,915 568,378 615,742 609,428 Municipal Court 815,148 840,995 822,790 810,137 Library' 367,628 402,924 391,482 389,586 COMMUNITY SERVICES TOTAL $4,050,477 $4,307,687 $4,147,697 $4,303,693 Community Services Expenditures as Percentage of Operating Budget FY 2020 - 5.1 % of the $84.9 million Operating Budget Community Development Administration Library Communications Planning Municipal Court Permits & Inspections 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET Salaries & Wages 3,202,233 3,400,556 3,236,652 3,439,150 Materials & Supplies 115,908 130,866 130,508 73,978 Equipment Repair & Maintenance 15,334 17,108 Buildings & Grounds 2,460 1,460 1,460 Miscellaneous Services 664,849 746,041 751,263 756,854 Other Charges 3,095 3,000 3,050 4,000 Inventory 23,307 Capital Outlay 25,751 Motor Pool Transfers 24,764 24,764 11,143 COMMUNITY SERVICES TOTAL $4,050,47] $4,307,687 $4,147,697 54,303,693 Community Services Expenditures as Percentage of Operating Budget FY 2020 - 5.1 % of the $84.9 million Operating Budget Community Development Administration Library Communications Planning Municipal Court Permits & Inspections 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 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 Peadand. 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 Budael Items for FY 2020 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 2019 ACCOMPLISHMENTS • 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. COMMUNITY DEVELOPMENT ♦ Continued to provide population updates and special studies. • Reformatted and continued to publish annual and quarterly Community Development newsletter. ♦ Revised pre -development information to include all new adopted codes and ordinances. ♦ Implemented UDC changes as adopted by City Council from the UDC ad hoc committee. ♦ Prepared for upcoming 2020 census by coordinating with HGAC to prepare census tracts and manage address points. ♦ Fully reorganized and staffed new Development Services Division. ♦ Expanded community outreach by hosting the inaugural Quarterly Share event. ♦ Hosted a successful Pearland Development Forum. • Successfully hosted a training for all City staff on the TRAKiT permitting software. ♦ Retrained the City's development review team on pre -development meeting procedures and general plan review. • Updated processes to improve efficiency with several application types including Subdivision Improvement Agreements, Temporary Certificates of Occupancy, and Infrastructure permits. FISCAL YEAR 2020 OBJECTIVES • Ongoing improvements to the Enterprise Resource Planning (ERP)—TRANT software. ♦ Continue implementation of Action Steps listed in the 2015 Comprehensive Plan. Plan while preparing for the next 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. • Solidify the Quarterly Share event as a well -attended, staple City program that provides useful updates. ♦ Create visual Flowchart of full permitting process and identify opportunities for higher efficiency. FY 2017 FY 2018 FY 2019 2020 Actual Actual Actual Target Zone Changes 14 15 17 15 Plat Reviews 183 188 95 120 Site Plans Reviewed 129 50 23 40 Total Plans Reviewed 1,164 1,071 1838 1500 Pre -development Meetings Conducted 83 65 65 65 Total Building Inspections 33.441 32,833 35,982 36,200 Total Permits Issued 12,475 10,042 3,241 3,241 Average Value Single Family Home Permitted $208,5245 $201,606 N/A N/A 83 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 2020 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 Peadand residents in City government goals and activities with engaging content. ♦ Build community and positive identification among residents with their home City. ♦ Build corporate pride among employees and positive identification with the City government. FISCAL YEAR 2019 ACCOMPLISHMENTS ♦ Increased social media followers by leveraging technology and fine-tuning creative messaging to enhance user experience. • Developed City Council Round Up, an engaging video series that highlights elements from City Council meetings ♦ Launched a digital content program in City facilities that promotes important events, supports related agencies, and keeps Pearland residents informed. • Executed a communications plan to build awareness around the Advanced Metering Infrastructure plan. • Developed a new section of content with easy to navigate information for Project Updates. ♦ Successfully launched a dedicated Fire Department Facii page. ♦ Overhaul Parks and Recreation branding. ♦ Expand ongoing video series to include educational programming. ♦ Increase awareness of newly developed Resident Hub. ♦ Increase awareness of online water billing, reduce reliance on paper bills. • Develop and implement a plan to increase social media followers/fans. ♦ Followthe guiding principles outlined in the Department Strategic Plan which include: serving as brand ambassadors, being inclusive, proactive, transparent, consistent and responsive. COMMUNICATIONS PERFORMANCE MEASURES FY 2017 FY 2018 Actual Actual FY 2019 Actual FY 2020 Target Facebook fansftends 17,135 19,980 20,312 22,343 Twltterfollowers 5,475 6,470 7,212 7,933 YouTube views 27,473 27,976 31,431 34,574 Insfagram fans/followers 1,620 1,928 2,206 2,427 Websfte users 445,105 436,178 476,196 523,816 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 2020 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 fled. • 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 2019 ACCOMPLISHMENTS ♦ 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 2020 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 2017 FY2018 FY2019 FY 2020 Actual Actual Actual Target Number of Judge trials prepared 185 183 120 170 Number of Jury trials prepared 436 374 394 370 Number of warrants Masai 5,980 81056 6,244 6,000 Total number of diarges bmugM in 16,257 15,333 19,018 15,000 Outstanding warrants 15,459 13,982 13,013 13.000 Value of outstanding warrants $8,052,214 $7.651,834 $7,425,815 $7,000,000 86 LIBRARY OVERVIEW Library services are provided through a cooperative effort between the City of Pearland and Brazoda 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. 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 aid on amassing the Bramria 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 2020 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 2019 ACCOMPLISHMENTS ♦ Improved Summer Reading Club participation for the second year in a row, with a 41% increase in registration between both branches over the previous Oscal year. • Began partnership between the branches with Parks & Recreation Department to provide joint programming at Parks facilities. ♦ Westside entered the design phase for the new Westside Library. FISCAL YEAR 2020 OBJECTIVES ♦ Continue to create and implement successful programming for teenagers in the community while increasing attendance. ♦ Develop structured Fiber Arts Makerspace programming at Tom Reid Library now that the equipment has arrived, and plan for the Audiovisual Makerspace at the new Westside Library. • Explore more programming options with the City in order to reach a wider audience in the community while continuing to nurture a strong working relationship. PERFORMANCE MEASURES FY 2017 FY 2018 FY 2019 FY 2020 Actual A wal Actual Target Tom Reid Library Number of volumes 58.736 77,371 80,570 82.000 Number of items checked out - circulation 357,600 225,633 385,703 424,000 Business Center Drive Library Number of volumes 60,688 56,724 69,265 as'" Number of items checked out — ciroulation 502,052 518,283 488,568 537,000 87 Public Works and Engineering & Capital Projects Assistant City Manager Engineering & Capital Projects Engineering Capital Projects Trak Public Works Administration Streets & Drainage Grounds Maintenance Facilities Management Custodial Services Fleet Management (Internal Service Fund) PUBLIC WORKS EXPENDITURE SUMMARY FY 2019 FY 2018 ORIGINAL EXPENDITURES BY DEPT I DWISION ACTUAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET ENGINEERING & CAPITAL PROJECTS Traffic Operations and Maintenance $ 5,195 $ 333,534 $ 701,589 $ 1,125,937 Engineering 1,495,172 1,580,840 1,561,423 1,556,029 Capital Projects 1,161,327 1,340,365 1,510,314 1,443,852 PUBLIC WORKS Public Works Operations Administration 772,522 317,576 327,440 306,473 Traffic Operations and Maintenance 993,068 241,027 Custodial Services 399,626 530,760 549,889 559,035 Fleet Management 496,118 8,200 Streets & Drainage 5,563,115 4,299,832 5,150,350 5,069,074 Row Mowing 1,515,674 2,348,597 2,274,192 2,444,281 Facilities Management 1,595,986 1,658,857 1,747,333 1,650,137 PUBLIC WORKS TOTAL $13,997,803 $12,651,388 $13,830,730 $14,184,818 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET Salaries & Wages $ 4,782,940 $ 5,336,367 $ 5,160,708 $ 5,567,612 Materials & Supplies 391,914 311,530 313,512 425,110 Buildings & Grounds 2,509,005 1,719,714 2,319,883 1,878,358 Equipment Repair & Maintenance 298,191 53,200 53,200 123,000 Miscellaneous Services 5,343,437 4,665,641 5,196,291 4,854,363 Inventory 1,198 5,000 Capital Outlay 671,117 259,486 367,686 459,486 Motor Pool Transfers 305,450 419,450 841,889 PUBLIC WORKS TOTAL $13,997,803 $12,651,388 $13,830,730 $14,154,818 Public Works Expenditures as Percentage of Operating Budget FY 2020 - 16.7% of the $84.9 million Operating Budget PW Operations Admin. 0.4% Custodial Services 0. % Traffic Oper. & Maint. 1.3% Capital Projects 17% Engineering 1.8% Facilities Management 1.9% ROW Mowing 2.9% Streets & Drainage 6.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 9S ENGINEERING & CAPITAL PROJECTS OVERVIEW The Engineering & Capital Projects Department reports to the Assistant City Manager and is responsible for the design and construction of the City's infrastructure, review of private development infrastructure, transportation mobility and traffic signal maintenance and operations. Within the General Fund, the Engineering & Capital Projects Department consists of three divisions. The Engineering Division provides engineering assistance to the Community Development Department to assist citizens with the review of building plans, floodplain mitigation, private subdivision infrastructure plan review and general engineering questions and provides engineering assistance for the Capital Improvement Program. The Engineering Division also includes an inspections group that provides the review and inspections of infrastructure improvements (streets, drainage, water and wastewater) located in the City's right-of-way for private development and the City s Capital Improvement Program. In addition, this division overseas the preparation of the City's Master Drainage Plan, Water and Wastewater Master Plans, and Impact Fee updates. The Capital Projects Division develops, implements, and manages City infrastructure capital projects including facilities, parks, streets, drainage, water and wastewater projects. The division includes project managers, construction managers and project coordinators that are responsible to coordinate the construction of the Capital Improvement Program with other agencies such as TxDOT, Brazoria County, HGAC, and utility companies. The third division is the Traffic Division which is responsible for the maintenance and operation of the traffic signals, Transportation Master Plan, working with developments regarding the review and approval of Traffic Impact Analysis and working with other departments to implement polices to improve traffic mobility during construction activities and public special events. STRATEGIC COUNCIL PRIORITIES: The Engineering and Capital Projects Department functions within the City's government structure to support the construction, maintenance and improvement of roads, streets, drainage, water production and treatment, and other public goods in ways that delivers to citizens Sustainable Infrastructure and provides for a Safe Community. Key Budget Items for FY 2020 include: • Traffic Crew & Bucket Truck ♦ Project Coordinator 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 utilizing the Thoroughfare Master Plan and in coordination with the Public Works Department pavement management system. ♦ Successfully initiate policies and procedures to operate within the newly created Traffic Division. • Maintain and implement the City's traffic signal network through systematic inspection and maintenance and installing fiber for improved communication and reliability. ♦ Continue installing and evaluating the Flashing Yellow arrows program at approved intersections. • Reduce flooding and minimize the chance of property damage, injury or loss of life through a program of drainage systems maintenance and construction. ENGINEERING & CAPITAL PROJECTS ♦ Maintain a highly trained Project Management staff proficient with the tools necessary to manage complex capital projects in a professional manner. • Manage project scope, schedule, budget, and provide innovative solutions to deliver best value projects within budget and on schedule. ♦ Develop and maintain the City's Five -Year CIP in conjunction with the Finance Department. ♦ Develop and maintain the City's Engineering Design Criteria Manual, Specifications, Standard Details, and Infrastructure Master Plans. • Develop a strategic department growth plan that efficiently provides the needed support to our Capital Improvement Program, the Public Works Department, Parks & Recreation Department, and other City departments. FISCAL YEAR 2019 ACCOMPLISHMENTS ♦ Continued work on City wide Intelligent Traffic System traffic signal project upgrades. • Implemented new signal timing plans and flashing left turn arrows along key comdors. ♦ 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. ♦ Assisted the community and other departments in the recovery of Hurricane Harvey • Developed and constructed a semi -regional detention pond located in the Southeast Quadrant of Old Townsite that offers regional detention in the area for development to purchase capacity. ♦ Finalized the Master Drainage Plan cooperatively with the Brazoria Drainage District N4. ♦ Developed and finalized the City water utility infrastructure model that will be utilized to optimize the system and to develop CIP projects and maintenance activities ♦ Improved the drainage infrastructure and converted asphalt roads to concrete curb and gutter in Wagon Trail road located in the Corrigan Ditch Sub -Basin of Marys Creek Drainage. ♦ Completed the Phase I improvements to Independence Park. That included an adaptive play structure, new restrooms and an event stage and grass amphitheater. • Reconstructed Old Alvin Road from Plum Street to MCHard Road and Orange Street from SH35 to Schlieder Drive. The project included new underground storm drainage and lowered the elevation of the road. • Expanded Max Road from Hughes Ranch Road to Reid Boulevard. • Completed the construction of the new Fire Station 1 facility to relocate to MCHard Road and Old Alvin Road to improve response times. • Installed over one mile of 20 -inch water line along FM 521 from Broadway to Mooring Pointe to improve water distribution system looping and redundancy. ♦ Performed the investigation and evaluation of the Underground Piping Infrastructure at 13 Water Production Facilities that ident'died system deficiencies that are to be addressed in the next phase of the project and created detailed drawings of three facilities that did not have record drawings. • Replaced old transite water lines in the Old Townsite area along Walnut Street. ♦ Expanded the Reflection Bay Water Reclamation Facility by adding four million gallons per day capacity to a total capacity of 6 million gallons per day. • Abandoned the Springfield and Independence Park Lift Stations by connecting them to the gravity collection system. ENGINEERING & CAPITAL PROJECTS ♦ Completed fifteen Preliminary Engineering Reports and finalized the projects and costs for the FY19 Bond Program. In May 2019 the citizen's voted to approve the $80 million bond initiative that included 5 Propositions and a total of 12 projects. By September 2019, nine of the projects have been stated with the goal to complete within the next 5 years. FISCAL YEAR 2020 OBJECTIVES ♦ Update Emergency operations annex for the Engineering Department as city's plans develop and change. ♦ Continue to install pan, hit and zoom (PTZ) cameras on the traffic signals and send the feed to Transfer for integration into their website. Currently 50 traffic signals have been integrated with the PTZ cameras. Plan is to install another 25 PTZ cameras this year • Test and evaluate the Trafficware in -ground control system that will detect vehicles and assist in the timing plans. ♦ Installation of the Trafficware software and controllers for all traffic signals. ♦ Continue installing fiber optic lines to connect city facilities and traffic signals. ♦ Transition Traffic Committee requests from citizens into the Track -it system. • Evaluate the completed Master Drainage Plan and create inundation maps at various elevations to assist Public Works and EMS during flooding events. ♦ Continue to evaluate local drainage flooding areas identified in Hurricane Harvey to determine potential solutions that can be completed with in-house forces or create future CIP projects. • Review and evaluate private development plans within the allotted time. ♦ Assist residents with the application process for TWDB Flood Mitigation Assistance program to mise their homes out of the floodplain. • Develop a wastewater collection system model that will be utilized to optimize the system and to develop CIP projects and maintenance activities • Develop a wastewater reuse system model that will be utilized to develop locations for reuse and to develop CIP projects to bring the reuse water to City facilities such as Parks and landscape medians. ♦ Continue to assist and work with FEMA to address the effects and resolution to reimbursements from the Hurricane Harvey event. ♦ Complete the design of the 9 bond projects that were started in FY 2019 and begin the construction phase of 7 projects. ♦ Begin the design on 2 bond projects (Fire Burn Building and Phase II of the street reconstruction program). ♦ Maintain the construction schedule to complete 17 capital projects that will benefit our citizens through drainage improvements, mobility improvements, EMS response and quality of life. • Review the current FY2020 CIP and evaluate projects for the FY2021 CIP and begin the change to start planning efforts for a 10 -year CIP planning document. ENGINEERING & CAPITAL PROJECTS PERFORMANCE MEASURES FV 2017 FV 2018 Actual Actual FV 2019 Actual FV 2020 Tamet Number of Traffic Impact Analysis 22 12 5 5 Number of Responses to Signal Problems 434 804 897 500 Number of Signals 87 91 97 105 Signals Receiving preventative Maintenance 50% 50% 25% 50% Number of Flood Plain Customer Calls 88 94 79 80 Number of Drainage Studies 7 13 7 7 Miles of Road Added (Development) 3.7 5.4 5.8 4 Feel of Sanitary Sewer Added (Development) 17,024 26,059 30,427 20,000 Feel of Waterline Added (Development) 17,932 31,484 32,457 20,000 Feet of Storm Line Added (Development) 14,858 29,884 28,777 15,000 Number of Flood Plain Customer Calls 88 94 79 80 Miles of Road Added or Reconstructed 3.1 1.6 3.2 3 Fast of Sanitary Sewer Added or Replaced - 6,230 3,940 7,500 Feel of Waterline Added or Replaced - 12,100 10,112 15,000 93 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 Department oversees Administration, Facilities Maintenance, Custodial Services, Fleet Maintenance, Streets & Drainage, and Right of Way within the General 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 Budael Items for FY 2020 include: ♦ Maintenance Supervisor 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 condition assessment, and inspection, implementing pavement management strategies for maintenance of the entire streets network to improve pavement conditions. • Develop ROW Management Policy to govern future development of right of ways, streetscape design, and maintenance standards. ♦ Complete the restoration of public landscapes after major impacts sustained from Hurricane Harvey. • Maintain policies and procedures to operate within the newly created Motor Pool Fund. • Begin a Facil0ies Condition Assessment process, report immediate concerns and budget needs through the Capital Improvement and operational budget process. • Select software for Asset Management system and begin work order system implementation. ♦ 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. PUBLIC WORKS FISCAL YEAR 2019 ACCOMPLISHMENTS ♦ Updated Emergency Operations plans for each division within Public Works, outfitted high water vehicles and trained 12 high water vehicle drivers. • Completed two and a half (2.58) miles of asphalt pavement overlay of roadways identified through ROW assessment and concrete panel replacements in Country Place Subdivision. ♦ Initiated three sidewalk repair contracts; pavement raising, trip hazards elimination and remove/replace to address sidewalk repairs. ♦ Repaired/replaced 9,286 linear feet of sidewalk. • Removed 4,782 linear feet of sidewalk trip hazards addressed with new contracts. ♦ Repaired 3,605 potholes in asphalt streets. ♦ Regraded 29,364 linear feet of ditches via City crews and contractor to maintain and improve drainage. • Cleaned 22,181 linear feet of culvert pipe to remove silt and debris to maintain drainage. ♦ Cleaned and inspected 3,792 storm inlets. • Utilized standard operating procedures for services provided within the ROW Division. ♦ Assisted in the completion of several gateway monument projects and numerous other median and facility landscape enhancements; includes Main Street and Eastern Gateway. • Continued to decrease Fleet vendor outsourcing and increased work orders performed in-house. ♦ Utilized the heavy duty lift to repair heavy equipment, ambulances and performed first engine replacement. • Completed 1,989 fleet work orders on 480 units of rolling stock, of these 1,364 work orders were completed in less than 24 hours. ♦ Updated FASTER Fleet database and provided training to Finance and Fleet staff to capture additional information. ♦ Created a layer in GIS for generator information and locations. ♦ Implemented a Preventative Maintenance Program for all City facilities. • Effectively cleaned 497 miles of roadway via contractual street sweeping contract. ♦ Implemented an after-hours response service for damaged traffic signs and guardrails. Responded to 31 after -hour emergency call outs. • Created a work order submission and tracking program for traffic sign maintenance services. ♦ Repaired and maintained 1,511 traffic signs. • Replaced two chillers at PSB. ♦ Combined HVAC preventative maintenance and repair contracts resulting in 81Y decrease of emergency repair and replacement cost. • Upgraded the HVAC equipment at the Melvin Knapp Center, utilizing CDBG funds. ♦ Implemented a quarterly restroom preventative maintenance program. • Upgraded the RCN lighting from metal halide to LED ensuring safety while conserving energy. ♦ Upgraded the Fleet lighting from fluorescent to LED improving efficiency and safety for mechanics. ♦ Renovated Fire Station #1 into offices for Public Works staff. FISCAL YEAR 2020 OBJECTIVES ♦ Expand Emergency Operations Plans to include Public Works/PD/Fire response plan. • Provide position specific training that will allow staff to achieve technical competency in new areas. ♦ Complete 350 work orders to reduce the backlog related to sidewalk repairs via sidewalk contracts. ♦ Regrets 45,000 linear feet of ditches via City crews and contractor. • Establish a method to accomplish drainage culvert pipe cleaning. PUBLIC WORKS • Reduce the number of pothole repairs by establishing an effective preventative maintenance program for streets. ♦ Continue joint and crack seal program as part of street maintenance and preservation. ♦ Continue to implement additional tools for sidewalk repairs per sidewalk policy and criteria. • Complete the asphalt paving rehabilitation of 6.83 lane miles of streets. ♦ Conduct ROW Assessment of asphalt roadways updating poor data from 2014. ♦ Develop an electronic street light outage audit tool and implement with staff in the quarterly audit. • Develop and implement a Curb Repair Program. ♦ Develop and implement in-house Crack Seal Program. ♦ Develop and implement Base Repair Program. • Continue rehabilitation of sidewalks, signs, pavement markings and roadways identified through ROW assessment and funded through budget process. ♦ Complete and adopt the Right-of-Way Policy that governs the design and maintenance of all City's ROWs. ♦ Achieved cost efficiencies by reducing outsourcing of work via Fleet division and reduced costs for the Motor Pool fund. • Upgrade current fuel management software with updated tools,equipment, and software for better fuel management, decommission old fuel island and tanks and install new fuel island, tanks and fuel management system. ♦ Expand the City's Christmas Decorating Program by two for a total of three decorated locations. ♦ Create an online work order submission and tracking tool for all Hot Shot related work requests. • Review and update all Engineering Design Criteria Manual (EDCM) specifications related to landscape, trees, turf and irrigation. ♦ Develop construction details to accompany EDCM revised specifications. ♦ Develop guardrail inspection and restoration/maintenance tracking process. • Complete facility condition assessment for RCN and plan for required equipment replacement. ♦ Improve Fire Admin Building parking lot. • Improve RCN HVAC system efficiency through enclosure modifications. ♦ Install building identity lettering at PSB and Tom Reid Library. ♦ Continue to upcycle equipment from old FS #1 to Public Works facilities. • Replace roof at Southdown Al Admin Building. ♦ Install enclosure for PSB evidence storage. ♦ Complete City wide ITS traffic signal project upgrades. • Implement new signal timing plans along key corridors (FM 518, Magnolia, FM 865 and FM 2234). • Continue the delivery of storm water improvements and services via the newly implemented street sweeping contract. PERFORMANCE MEASURES FY 2017 FY2018 FY2019 2020 Actual Actual Actual Target Percent of Water Plants Mowed Within the 2-week Schedule 49% 74% 99.75% 100% Street Sweeping uncles) 1,112 1,815 495 894 DitcNCulvert Cleaning (teat) 48,463 34,604 29,364 35,000 Percent of lane Miles in Need of Repair (asphalt) 37% 37% 57% 56% Number of Open Sidewalk Repair Work Orders 674 68D 971 60D Number of Potholes Repaired 2,499 1,875 3,605 2,500 Culvert Pipe installed/Replaced(feet) 186 84 29 - 96 Parks & Recreation Deputy City Manager L Parks & Recreation Administration Recreation Athletics Special Events Senior Programs Aquatics Parks Natural Resources Recreation Operations PARKS & RECREATION EXPENDITURE SUMMARY EXPENDITURES BY DEPT/DIVISION FY 2018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET Administration 774,838 801,816 840,277 859,398 Recreation Center/Natatorium 384,308 433,712 436,569 434,199 Athletics 298,744 359,931 312,544 338,087 Special Events 393,027 393,924 393,596 446,492 Senior Program 264,477 302,682 311,170 319,784 Aquatics 1,925,648 1,966,711 2,090,517 2,156,302 Parks 263,468 275,889 289,544 323,706 Recycling 572,021 584,451 578,358 595,741 Natural Resources 1,174 1,200 1,200 1,200 Recreation Operations 1.212,963 1.215,421 1.209,005 1.229,673 PARKS& RECREATION TOTAL $6,090,666 $6,335,737 $6,462,780 $6,704,582 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENDITURES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET Salaries & Wages 3,903,213 4,427,201 4,279,680 4,623,469 Materials & Supplies 457,545 491,082 493,072 516,383 Buildings & Grounds 526,022 407,917 430,816 415,478 Equipment Repair & Maintenance 87,810 44,000 32,651 78,600 Miscellaneous Services 825,335 886,610 874,043 881,561 Inventory 17,037 22,316 800 Capital Outlay 273,705 251,275 144,820 Motor Pool Transfers 78,927 78,927 43,471 PARKS& RECREATION TOTAL $6,090,666 $6,335,737 $6,462,780 $6,704,582 Parks & Recreation Expenditures as Percentage of Operating Budget FY 2019 - 7.9% of the $84.9 million Operating Budget Recycling 0.0% Natural Resources 0.4% Senior Program 0.4% Athletics 0.4% Special Events 0.5% Rao Ctr/Natatorium 0.6% Aquatics 0.7% Administration 1.0% Recreation Operations 1.4% Parks 2.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 98 PARKS & RECREATION OVERVIEW Pearland Parks & Recreation, in collabora0on 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 Gasses, 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 5 larger community parks, a Recreation Center/Natatorium, the Westside Events Center, Delores Fenwick Nature 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 2020 include: • Parks Mower Package ♦ Special Event Coordinator -6 Months • Aquatics Technician 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 2019 ACCOMPLISHMENTS • Developed a community wide programming team, that includes the Pearland Library, YMCA, Police Department, and local teens, to address programming needs and gaps in service that as a group we can fulfill. • Attracted over 165,000 visitors to the Pearland Natatorium. This includes event highlights such as the Junior Olympics and the diverse local, regional, and stale swim meets throughout the year. • Hosted the TAAF Winter Games of Texas for the second consecutive year. ♦ Seven staff completed High Performing Organization and Leadership training. ♦ Increased volunteer participation by 23% over FY18. ♦ Completed Independence Park Phase I construction and hosted Celebration of Freedom to over 10,000 attendees. • Opened the Delores Fenwick Nature Center in March and educated 6,589 visitors through September. • Replaced playground fall surfaces at six playgrounds. PARKS & RECREATION ♦ Completed Woodcreek Park enhancements including a new playground, landscaping, shade structure, and picnic area. ♦ Resurfaced Centennial and Southdown Park Slash Pads. ♦ Replaced the Natatorium pool deck. • Began Master Planning process. FISCAL YEAR 2020 OBJECTIVES • Develop a Strategic Marketing Plan with unique branding guidelines. ♦ Restore, preserve and enhance natural areas in the community through creative development initiatives. ♦ Complete comprehensive program inventory assessment. ♦ Develop a Diversity, Equity and Inclusion Strategic Plan. ♦ Leverage data to improve promotional targeting. ♦ Develop, expand and promote volunteer opportunities in natural areas. • Improve and maintain health and recreation opportunities for our aging community. • Seek partnerships and alternate funding opportunities. 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 55 54 53 52 51 50 49 PERFORMANCE MEASURES Average Number of Monthly Visitors Recreation Center & Natatorium 14,828 12,827 12.630 14,000 13,]82 13,000 12 9,2W FY 2017A Wal FY 2018 Adual FY 2019 Actual FY W20 Target • Recreation Center Nai Operating Expendatures Per Capita 54 ]2 53.55 51.52 51.16 ENTERPRISE (WATER AND SEWER) FUND 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 37,900 residential and commercial customers. Water & Sewer revenues provide 86.7% of the total revenue generated in the Water & Sewer Fund. As such, the City of Peadand continually monitors and evaluates the need to adjust water and sewer rates In order to ensure Mat the fund Is segsuppor8ng, that infrastructure rehabilitation is adequate, and that all bond covenants are in compliance. For fiscal year 2020, a water and sewer revenue increase of 1.6% will generate $2,886,796 from growth and $770,409 from rate adjustments. REVENUES SALE OF WATER SEWER REVENUES OTHER SERVICE CHARGES INVESTMENT EARNINGS OTHER MISCELLANEOUS INCOME TRANSFERSIN OTHER FINANCING SOURCES TOTAL EXPENSES UTILITY CUSTOMER SERVICES INFORMATION TECHNOLOGY OTHER REQUIREMENTS PUBLIC WORKS ADMINISTRATION WATERISEWERGROUNDS LIFT STATIONS WASTEWATER BACKFLOW COMPLIANCE WATER PRODUCTION DISTRIBUTION &COLLECTION CONSTRUCTION WATER METER SERVICES PRETREATMENTFOG TOTAL REVENUES OVER/UNDER) EXPENSES Beginning Cash Equivalents Reserve for Debt Service Ending Cash Equivalence Bond Coverage -1.4 Cash Reserve Ratio - 25% 25.920,696 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES SALE OF WATER SEWER REVENUES OTHER SERVICE CHARGES INVESTMENT EARNINGS OTHER MISCELLANEOUS INCOME TRANSFERSIN OTHER FINANCING SOURCES TOTAL EXPENSES UTILITY CUSTOMER SERVICES INFORMATION TECHNOLOGY OTHER REQUIREMENTS PUBLIC WORKS ADMINISTRATION WATERISEWERGROUNDS LIFT STATIONS WASTEWATER BACKFLOW COMPLIANCE WATER PRODUCTION DISTRIBUTION &COLLECTION CONSTRUCTION WATER METER SERVICES PRETREATMENTFOG TOTAL REVENUES OVER/UNDER) EXPENSES Beginning Cash Equivalents Reserve for Debt Service Ending Cash Equivalence Bond Coverage -1.4 Cash Reserve Ratio - 25% 25.920,696 26.077,835 24.380,169 27,426,593 23,762,116 24,097,048 22,41,587 25,052,606 1,725,339 1,735,000 1,743,242 1,720,000 288.283 325,000 475,529 500,000 7.464 12,500 2,368,609 12,500 2,950,000 2,950,000 2,950,000 5,835,697 54,553,901 55,197.39/ 54,359.136 60,547.396 1,245,700 1,644,923 1,527,139 1,636,132 744,721 1,285,576 1,318,589 1,569,035 25,838,838 24,550,762 24,895,177 28,208,186 770,555 727,551 1,096,912 799,784 424,334 528,303 556,436 628,696 1,408,613 1,780,483 1,580,291 1,898,851 4,986,943 5,709,337 5,711,351 5,286.851 270,61 239,590 381 9,173,247 10,758,831 11,636,580 10,677,811 2,264,833 3,099,461 3,563,493 3,187,627 1,145,638 1,652,469 1,751,855 1,288,623 938,159 1,155,055 849,886 785,337 253,326 219,548 246,7]7 4&941,681 53,418,720 54,948,847 58,575,688 5.712,320 1.780,664 (587.711) 3.971,730 20,81 23,40,374 26,519,726 25,932,015 3,796,725 4,356,022 4.356,022 5,486,194 $22,723.001 $20,065,016 $21,575.993 324,417.551 2.16 1.59 1.43 73% 57% 66% 101 WATER AND SEWER REVENUES AS A % OF TOTAL INVESTMENT EARNINGS 0.8% OTHER SERVICE CHARGES 280 TRANSFERS IN 9.6% SEWERREVENUES SALE OF WATER WATER AND SEWER EXPENSES AS A % OF TOTAL PRETREATMENTFCGL MCKFLOWCOMPLIANC£ WATERGEWER GROUNDS WATERMETERSERVICES PUBLICWORKS ADMINISTRATOR CONSTRUCTION INFORMATION TECHNOLOGY UTILITY O.ISTOMER SERVICES LIFT STATIONSGISTRIBUTON&COLLEGTONWASTEWATER9.4% WATERPFOWCTOJ 18.9% OTHERREWIREMEMS i 149.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.01A 102 ENTERPRISE (WATER & SEWER) FUND REVENUE & EXPENSE SUMMARY FISCAL YEAR 2018-2019 There was no rate increase for FY 2019. Projected revenues of $54,359,136 are $838,248, or 1.5%, lower than Me original budget and $55,197,384, or 0.05%, less than fiscal year 2018 actual of $54,653,901. The fiscal year 2019 projected revenue is primarily lower than the original budget due to a decrease in water consumption. Revenues from the sale of water and sewer services are projected to be $3,353,128 or 6.7% lower than budgeted. Other service charges are projected to come in slightly more than the original budget amount. Fiscal Year 2019 expenses are anticipated to be $54,946,847. This is $1,530,127 more than the original budget of $53,416.720, due to $502,500 million in additional funds added to fund capital improvement projects with cash and $2.3 million for City of Houston BE water plant capital Ime-up. Expenses are saturated $6,005,266 higher Man the fiscal year 2018 actual. Debt payments have decreased $521,894 over 2018 actuals. The ending balance at September 30, 2019 Is estimated to be $21,575,993 with a 57% cash reserve ratio and a bond coverage of 3.4, above Me required Indicators. FISCAL YEAR 2019-2020 Fiscal Year 2020 budgeted revenues total $60,547,396, a $6,188,260 increase from the fiscal year 2019 projections. Water and sewer charges increased by $5,657,443, or 12.1%, over the 2019 projections. This is mainly due to a 1.6% rate increase and a change to the rate multiplier, an anticipated increase in customer growth of 2.5% and an increase in contributions from Impact Fee Funds. Fiscal year 2020 expenses total $56,575,666 and include annual debt service payments of $19.11 million, an increase of only $2.2 million from fiscal year 2019. Expenses are $1,628,819 or 3.0%, higher than the fiscal year 2019 projections and are $3,158,946, or 5.9%, higher than the original budget. Supplemental requests included in Me budget total $3,344,935. Supplemenlals include additional funding for in - city MUD rebates ($1.5 million), a utility billing specialist ($38,941), cyber seventy specialist ($32,366), an application specialist ($72,814), walerlwaste water model updates ($50,000), utility inspector ($87,810), a maintenance supervisor with vehicle ($123,072), a construction crew ($104,032), a backfiow inspector ($84,268), Petelbuilt haul Mal and trail king Vetter ($248,072), concrete breakers ($28,746), and replacement vehicles ($824,000). The budget anticipates a waterlsewer bond sale totaling $154.13 million to fund infrastructure improvements In Me capital improvement program. Available ending balance at September 30, 2020 is expected to be $24,417,551. Revenues exceed expenditures by $3,971,730. Bond coverage is 2.04 (1.4 minimum) and cash reserves are 68% (25% minimum). Over the next several Fiscal Years, the Enterprise will build up reserves over -policy in order to prepare for increased debt Payments and minimum requirements resulting from the balance Texas Water Development Board bonds for the Surface Water Treatment Plant. This will result in phased increases rather Man a spike in Fiscal Year 2022. RESIDENTIAL 5/8" or 3/4" METER WITH SEWER CAP OF 6,000 GALLONS MONTHLY AMOUNT Consumption Current Bill 2020 Bill Amount Changed Base (0-2,000) $38.04 $38.52 $ 0.48 6,000 $73.80 $74.76 $ 0.96 8,000 $83.66 $84.94 $ 1.28 10,000 $93.52 $95.12 $ 1.60 15,000 $118.17 $120.57 $ 2.40 103 ENTERPRISE (WATER & SEWER) FUND EXPENSE SUMMARY 104 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENSES BY DEPTIDIVISION ACTUAL BUDGET AMENDED BUDGET UTILITY CUSTOMER SERVICE 1,245,700 1.644,923 1,527,139 1,636.132 INFORMATION TECHNOLOGY ]44,]21 1,285,576 1,318,589 1,569,035 OTHER REQUIREMENTS' 25,838,838 24,550,762 24,895,177 28.208.188 PUBLIC WORKS ADMINISTRATION 770,555 727,551 1,096,912 799,784 WATERSEWER GROUNDS 424,334 528,303 556,436 628,696 LIFTSTATIONS 1,408,613 1,780,483 1,580,291 1,898.851 WASTEWATER 4,986,943 5,709,337 5,711,351 5,285,651 BACKFLOW COMPLIANCE 421,035 270,642 239,590 362,154 WATER PRODUCTION 9,173,247 10,758,831 111636,580 10,6]7,811 DISTRIBUTION & COLLECTION 2,284,833 3,099,481 3,563,493 3,187,627 CONSTRUCTION 1,145,638 1,652,469 1)51,855 1,288,623 WATER METER SERVICES 938,159 1,155,056 849,886 785.337 PRETREATMENT FOG 253,326 219,518 246,777 WATER& SEWER FUND TOTAL 48,941,581 53,416,720 54,90,847 50,575,606 104 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED EXPENSES BY CATEGORY ACTUAL BUDGET AMENDED BUDGET SALARIES & WAGES 7,340,802 8,512,437 8,173,617 9,305,435 MATERIALS & SUPPLIES 7,356,954 8,225748 8,8001930 7.577,134 BUILDING & GROUNDS 123,462 137,130 142,030 358,699 REPAIR & MAINTENANCE 2,787,924 4,251,379 4,008,257 3.551,567 MISCELLANEOUS SERVICES 5,348,457 6,245,948 6,280,564 5,982,950 INVENTORY 71,345 72,385 39,273 65,780 TRANSFERSIOTHER CHARGES 25,491,603 25,971,60 26,716,108 29,484,101 CAPITAL OUTLAY 421,035 786,068 250,000 WATER& SEWER FUND TOTAL 48,941,581 53,416,720 5 W,847 58,575,866 104 Public Works (Water & Sewer) Assistant City Manager L Public Works Administration Grounds Maintenance Lift Stations Wastewater Treatment Backflow Compliance Water Production Distribution & Collections Water & Sewer Construction Meter Services Pre -Treatment FOG 105 FINANCE UTILITY CUSTOMER SERVICE OVERVIEW Water Billing & Collection Services Division (WB&C) 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 collection of fees for the curbside residential solid waste collection contract. 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 interactions with the residential and business customers require that the division staff interact in ways that meet or exceed the Council community engagement and financial accountability goals. These interactions are to be in a respectful, transparent, and fiscally accountable manner. Key Budget Items for FY 2020 Include: ♦ Billing Specialist 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 through continuous employee training. ♦ Update and maintain WB&C web information pertaining to all service operations. • Identify delinquent customer waste accounts to pursue collection and resolution of outstanding balances. • Revamped WB&C website to include customer education, water conservation tips and AMI Project Updates ♦ Refreshed staff training of customer service through a refresher of "The Pearland Way ideology. • Developed process documentation of Standard Operating Procedures (SOPs). ♦ Attended three events geared at educating the residents on water conservation. • Held a "Register for E -Bill" campaign to encourage customers to setup electronic bills. ♦ Implemented City-wide analytics reporting providing data for Public Works, Budget and Public Information Requests. • Trained key staff to produce better business intelligence reports through Excel pivot table training. ♦ Continue staff development through customer service training to exemplify "The Pearland Way'. ♦ Improve customer engagement through all contact channels. ♦ Use key call center data analytics for continuous process improvements. 106 FINANCE UTILITY CUSTOMER SERVICE • Continuous employee and customer education to provide service "The Pearland Way. • Transition to Automated Meter Infrastructure (AMI) meter reads. • Verify all meters are installed and coded to the correct location. PERFORMANCE MEASURES FY 2017 FY 2018 FY 2019 FY 2020 Annual meter reads 461.502 467,910 469,499 471,093 Percent of payments processed online 41% 54.24% 56.6% 59% Number of cut-offs 896 1,987 1,980 1,973 107 PUBLIC WORKS - UTILITIES OVERVIEW The Public Works Department manages the Water & Sewer Fund, which oversees Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection, Construction, Water Meter Services, Environmental Services and Right of Way Management. These divisions manage all utility facilities, including, seventy-seven (77) lift stations, five (5) Water Reclamation Facilities, eleven (11) Groundwater Production Facilities, two (2) Re -pressurization Stations, 456 miles of sanitary sewer and 551 miles of waterline. In addition to managing the above, the Lift Stations staff oversees facility maintenance, pump repairs, and odor control. The Wastewater Treatment division provides effective process control, quality assurance sludge de -watering and disposal, maintains compliance with state and federal regulations, and general plant maintenance and repairs. Water Production maintains water plant operations, water system pressure and volume, monitors water quality as required for federal and state regulatory requirements for a superior Public Water System. Distribution and Collection staff conducts water and sewer repairs, sewer line inspections and preventive maintenance. The Construction staff 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 staff supervise the installation and deployment of the new meters as part of the Advanced Meter Infrastructure project and water meter inspections. The Environmental Services division oversees backflow prevention, cross connection prevenfion programs and pretreatment programs. STRATEGIC COUNCIL PRIORITIES: The Water/Sewer Fund provides Sustainable Infrastructure by providing the installation, maintenance and Capital Improvement of Water Production and Wastewater Treatment Facilities Key Budget Items for FY 2020 Include: ♦ ROW Inspector • Backflow Inspector ♦ Peterbuilt Haul Truck & Trail King Trailer • 2 - Maintenance Supervisors ♦ Heavy Equipment Operator& Maintenance Worker GOALS Provide distinguished customer service by quickly and courteously responding to c0izen complaints or requests, including requests from City departments. Provide outreach to educate the community on the value of Public Works. Select and initiate an Asset Management program, including software, an updated work order system and begin the condition rating process of infrastructure. Cross training of Staff within the Utilities 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. 108 PUBLIC WORKS—UTILITIES • Maintain wastewater treatment facilities to protect the health of the public and the environment through proper treatment of wastewater, while maintaining 100% compliance with stale and federal agencies. ♦ Identify Lift Stations to be decommissioned and connected to gravity sanitary sewer system via the Capital Improvement Program. • Installation of water quality analyzers at City of Houston water connection Re -pressurization locations. • Create preventative maintenance programs for the 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 through waterline, valve and hydrant maintenance programs. • Identify water and sanitary lines that have outlived their expected life or are likely to fail and identify the assets for replacement or repair via the Capital Improvement Program. ♦ Maintain utility facilities to reduce unplanned shutdowns and minimize maintenance costs. • Continue to re -capitalize 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 through inspections and rehabilitation of manholes and sanitary sewer collection lines. ♦ Maintain and enhance the appearance of City water and wastewater facilities through regular landscape maintenance management practices. ♦ Protect the City's existing utility infrastructure by effective management of the Right of Way Utility permitting process, line locating process and field inspections. • The Environmental Services Division was created in FY '19 and manages Pretreatment (protect sanitary sewer system from illicit discharges), Backflow (cross connection prevention) and Solid Waste (provide customer service and manages contract with external vendor). • Prepare a plan to accept onsite sewage facility waste at Reflection Bay W RF. • Maintain 100% EPA compliance. FISCAL YEAR 2019 ACCOMPLISHMENTS • Established Environmental Services Division, including six staff members and three major areas of responsibility; including Backflow Prevention, Pretreatment and Solid Waste. ♦ Initiated construction of an additional 5 MG of capacity at the Shadow Creek Water Facility. • Completed lead and copper sampling for EPA compliance. ♦ Completed the expansion of the Reflection Bay Water Reclamation Facility, bringing the total treatment capacity to 6 MGD. • Replaced component of tertiary treatment at Barry Rose W RF and provide redundancy. ♦ Continued to identify water and sanitary lines that have outlived their expected life or are likely to fail, and plan for the replacement or repair those lines as resources allow. • Initiated new contract for manhole rehabilitation program. • Provided certification for forklift and aerial lift operations in order to improve facility operations and maintenance. • All certified operators have attended at least two (2) classes for traininghenewal hours towards required licenses. 109 PUBLIC WORKS - UTILITIES ♦ Staff modified plant shut down protocol for emergency response. Completed staffing such as operational zoning and shift coverage 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. ♦ Continue to maintain optimized water treatment facilities by completing study of chlorine to ammonia ratio which assist 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. • Implemented Nitrification Action Plan updated to maintain regulatory compliance. ♦ Implemented second shift schedule to ensure coverage until SCADA is implemented. • Completed the installation of 4,100 ft. of waterline in the Willow Crest and Mimosa Acres neighborhoods to replace aging transits water line. ♦ Rehabilitation of 8.8 miles of sanitary sewer via trenchless methods to reduce failures and inflow and infiltration into the sanitary sewer system. • Over 5 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 Canterbury Park and continuing in Westwood Village subdivision. ♦ Completed 13,218 utility locate requests. ♦ Received, reviewed and managed 355 Right of Way permits. • Successfully renewed and expanded the water well, reclamation facility and lift station grounds maintenance contract providing turf management for utility properties. • Successfully implemented a Hot Shot Crew which completed 438 work orders • Provided 99.75% of the required grounds maintenance services for the Wastewater Treatment and Production facilities. • Developed an internal user guide for activation of ROW permits in TRAKiT. ♦ Rehabilitated Park Village lift station, and decommissioned Springfield Lift Station. • Fence repairs completed at Smith Ranch, Shadow Creek, Garden Road, Pine Hollow, Village Grove, Country Place and Miller Ranch for Homeland Security compliance. • Initiated contracts for manhole rehabilitation program. • Completed Pretreatment Industrial User Survey and provided results to TCEQ in order to verify if an approved program is required. ♦ Updated the Backflow Ordinance and prepared for program implementation ♦ Consultant selected for solid waste contract renewal. ♦ Completed of 960 Backflow inspections and 1060 Pretreatment inspections. ♦ Completed renovation of Barry Rose, Reflection Bay and Southdown WRF Administration Buildings. FISCAL YEAR 2020 OBJECTIVES ♦ Continue with the expansion of the John Hargrove and Barry Rose wastewater reclamation facilities. • 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. 110 PUBLIC WORKS - UTILITIES ♦ Begin implementation of SCADA system software, graphics and Communication network beginning with Water Production facilities. Upgrade and rehabilitate three Water Production facilities including Bailey Road, Southdown and Shadow Creek Ranch. • Complete design and initiate construction of Surface Water Plant. • Adopt the revised Water Contingency Plan and Drought Contingency Plan. • Complete the installation of waterline in the Willow Crest and Mimosa Acres neighborhoods to replace aging transits water lines. • Initiate contracts for transite water lines replacements. ♦ 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. • Complete the enhancement of aesthetics of one water plant property through the installation of landscape material/landscape renovation at the entrance to utility facility. ♦ Implement traffic control and lane closure permits into the ROW permitting process. ♦ Complete the change out of water meters citywide in support of the Advanced Meter Infrastructure (AMI) Program. • Reduce percentage of water loss. • Complete the rehabilitation of River Walk, Shadow Creek, Cullen and Royal Oaks lift stations. • Eliminate East and West Barnett Lift Stations by placing on gravity Flow within the sanitary Collection system. • Inspect residential and commercial facilities to identify health hazards in the water distribution system. ♦ Inspect commercial facilities to identify illicit and prohibited discharges in the collection system. • Respond to environmental related issues in conjunction with Fire, Code Enforcement and Engineering. PERFORMANCE MEASURES Water Produced vs Water Purchased 3500 302, 3000 24172549 2555 2575 2117 2Q18 2019 TJFWtZM0 FY 2017 FY2018 FY 2019 FY 2020 Actual Actual Actual Target Wastewater gallons treated in billion gallons 3.513 3.513 3.832 3600 Cost per gallon to teat wastewater $0.0016 $0.0011 $0.0031 $0.0028 Water main installation past) 2,300 5,305 4,100 5,000 Sewer main installation (fee) 16,817 14,582 39,000 20,000 Cost per gallon of water purchased $0.0044 $0.0042 $0.0019 $0.0022 Percent of tlme Waste Water Treatment Plant over capacily 0% 0% 44% 40% to ENTERPRISE FUND DEBT MATURITY SCHEDULE AS OF SEPTEMBER 30, 2019 Filial Year Principal Interest Total 2019-2020 12,140,000 6,743.457 18,883,457 2020-2021 12,355,000 6,456,118 18,811,118 2021-2022 12,460,000 6,138290 18,598290 2022-2023 13,310,000 5,804,934 19,114,934 2023-2024 13,590,000 5,402,627 18,992,627 2024-2025 13,865,000 5,019,984 18,884,984 2025-2026 12,880,000 4,637,707 17,517,707 2026-2027 13,200,000 4,180706 17,380706 2027-2028 12,470,000 3,708,034 16,178,034 2028-2029 12,810,000 3,238,968 16,048,968 2029-2030 13,140,000 2,780,073 15,920,073 2030-2031 11,975,000 2,335,816 14,310,816 2031-2032 9,520,000 1,918,967 11,438,967 2032-2033 9,685,000 1,619,617 11,304,617 2033-2034 9,855,000 1,323,683 11,178,683 2034-2035 7,320,000 1,048,333 8,368,333 2035-2038 6,730,000 853,136 7,583,134 2036-2037 6,345,000 680,667 7,025,667 2037-2038 5,260,000 518,819 5,778,819 2038-2039 4,350,000 397,894 4,747,894 201 3,130,000 312,878 3,442,878 2040-2061 3,145,000 2]3,]96 3,418,796 2041-2042 3,150,000 233,896 3,383,896 2062-2063 3,165,000 193,428 3,358,428 2043-2044 3,175,000 152,277 3,327,277 2044-2045 3,190,000 110,604 3,300,604 2045-2046 1,490,000 68,350 1,558,350 2046-2047 1,500,000 44,924 1,544,924 2067-2068 990,000 21,139 1,011,139 2048 - 2049 700.000 7,980 707,980 TOTAL $236,895,000 $66,227,092 $303,122,092 Principal Amount Series Name Outstanding Water & Sewer Revenue Bonds Series 1999 610,000 Water & Sewer Refunding Bonds Series 20108 4451000 Permanent Improvement Refunding Bonds Series 2012- 4,480,000 Water & Sawer Revenue Bonds Series 2012 5,060,000 Water & Sewer Revenue Bonds Sense 2014 8,205,000 Water & Sawer Revenue Bonds Series 2016 7,545,000 Water & Sewer Revenue Bonds Sense 20168 (TWDB) 7,405.000 Water & Sewer Revenue Bonds Series 2016C (TWDB) 44,520,000 Water& Sewer Revenue Bonds Series 2017A (TWOS -DWSRF) 8,210,000 Water& Sewer Revenue Bonds Sense 2017B (TWOS -DWSRF) 11,345,000 Water & Sawer Revenue & Refunding Bonds Series 2017C 57,025,000 Water& Sewer Revenue Bonds Sense 2018A(TWDB-DWSRF) 8,360,000 Water & Sewer Revenue Bonds Series 20188 18,095,000 Water& Sewer Revenue Bonds Series 2019A (TWOS -DWSRF) 21,000,000 Water & Sewer Revenue & Refunding Bonds Series 2019B 34,590,000 TOTAL $236,895,000 Dees not include new debt anticipated b be iasuetl. Excluding pi associated war Genal Fend 112 ENTERPRISE FUND DEBT TO MATURITY Note: Doi not include new debt anticipated to be Issued In YY ZUZU. 113 SOLID WASTE FUND OVERVIEW The Solid Waste Enterprise Fund is used to account for residential and Commercial solid waste collection and disposable. 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 2019 projection is based on a current rate of $18.43 per household per month from October 2018 through September 2019 pursuant to quarterly fuel adjustments provided for in the Waste Management contract and includes reimbursement from FEMA for Hurricane Harvey debris collection. The fiscal year 2020 budget is anticipated to we a slight increase to $18.58 effective October 2019, based on CPI in April 2019, and includes growth in the customer base of 75 to 95 new units per month. No rate adjustments for fuel are included. EXPENSES MISCELLANEOUS SERVICES 8,473.438 FY 2019 FY 2019 FY 2020 OTHER EXPENSES FY 2016 ORIGINAL YEAREND ADOPTED INTERFUNDTRANSFERS ACTUAL BUDGET AMENDED BUDGET REVENUES 8,473,38 7,700,000 7,718,000 7,850,000 SALES TAX DISCOUNT $ 2,702 $ 2,800 $ 3.230 $ 3,300 CHARGES FOR SERVICES 7,871,402 7)00,000 7,716.000 7.850,000 MISCELLANEOUS $(747,249) 1.000 1,509.622 $768,903 INTEREST INCOME 15 15 TOTAL 7,874.119 7,703.815 9,228.852 7.853.300 EXPENSES MISCELLANEOUS SERVICES 8,473.438 7,700.000 7,716.000 7.850,000 OTHER EXPENSES INTERFUNDTRANSFERS TOTAL 8,473,38 7,700,000 7,718,000 7,850,000 REVENUES OVER (UNDER) EXPENSES (599,318) 3.815 1.512,852 3,300 BEGINNING CASH EQUIVALENTS (147,931) (1,154,332) (747,219) 765,803 ENDING CASH EQUIVALENTS $(747,249) $(1,150,517) $765,603 $768,903 114 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 Peadand. • 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 as needed to mitigate customer issues and to collaborate on common objectives 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. • Transferred call intake and contract management to Public Works. ♦ Improved response time to customer issues regarding city-wide garbage collection and curbside recycling. • Continue improvement of customer service performance to minimize complaints, which is conducted through the Water Customer Service, Public Works and W M Call Center. • Increase community awareness of curbside services by providing frequently scheduled online information to residents and customers. ♦ Review bid candidates for solid waste contractors for FV21. Tons of Curbside Green Waste Recycled 8000 Di FAM lannall 7320 OW soon 5,0003,526 4,154 4p00 4,000 3,000 OW 2017 2018 2019 2020 Target Tons of Solid Waste Land -Filled 72,000 69,747 69,549 69,614 70,000 701 68,0W 66,000 64,000 62,00 — 50,000 2017 20]8 2019 2020 Tarart 115 THIS PAGE INTENTIONALLY BLANK 116 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 payers -you -90 (cash) basis. Fund 501 Certificates of Obllaation—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 Obli an on Series 2006—A fund set up to pay for non -water and sewer projects being funded 7y=Term7aii es ga on. Fund 506 General Oblipalion Series 2009.2010. 2011. 2a14—A fund sal up to pay for non -water and sewer projects being funded by 2009. 2010, 2011. 2014 and future Series General Obligation bonds. Fund 507 General Obligation Series 2020—A fund set up to pay for non -water and sewer projects being funded by 2020 Series General Obligation bonds. Fund 506 Certificates of Obligation Series 2020 — A fund set up to pay for non -water and sewer projects being funded by 2020 Sens Certificates of Obligation. Fund SM General Obligation Series 2021—A fund set up to pay for non -water and sewer projects being funded by 2021 Series General Obligation bonds. Fund 511 PEDC Pav-As-You-Go— A fund to pay for PEGG capital projects in a pay-as-youyo (cash) basis. Fund 512 Certificates of Obligation Series 2021 — A fund set up to pay for non -water and sewer projects being funded by 2020 Series Certificates of Obligation. Fund 513 General Obligation Series 2022—A fund set up to pay for non -water and sewer projects being funded by 2022 Series General Obligation bonds. Fund 550 Utility Impact Fee —A fund created to account for impact fees callected and water and Sewer projects from the development of property based on the impact to the water and sewer system. Fund 551 Water Impact Fee —A fund created to account for impact fees selected and water and sewer projects from the development of property based on the impact to the water and sewer system. Fund 552 Waste Water 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 impact fees collected and water and sewer projects from the development of property in the Shadow Creek Ranch area. Fund 565 Revenue Bonds —A fund set up to pay for water and sewer projects being funded by Revenue Bonds. Fund 566 Revenue Bonds Series 2020—A fund set up to pay for water and sewer projects being funded by 2020 Series Revenue Bonds. Fund 557 Water Drinking Bonds Series 2020 — A fund set up to pay for water projects being funded by 2020 Series TWOS — Water Drinking Bonds. Fund 568 Revenue Bonds Series 2021—A fund set up to pay for water and sewer pmjects being funded by 2021 Series Revenue Bonds. Fund 569 Revenue Bonds Series 2022—A fund set up fo pay for water and sewer projects being funded by 2022 Series Revenue Bonds. Fund 570 Water 8 Sewer Pay-As-You-Go—A fund set up to pay for water and sewer projects in a pay-as-yougo (cash) Mai Fund 575 MUD 4 Capital Program —A fund created to pay for projects in the old MUD 4 area. 117 CAPITAL PROJECT FUNDS 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 and a $80 million bond referendum that passed in May 2019, as well as a Five -Year CIP (2020 - 2024) totaling $652.9 million. The Five -Year CIP completes the 2007 bond referendum in 2022, due to the letting of TIP projects. Projects identified in the 2020 - 2024 CIP exclude 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 2020-2024 total $347,080,487 excluding transfers and bond issuance costs. FY 2020 Funding Sources ($ in millions) Other Funding Sources M $2.64 $100.0 System Revenues - Cash = $3.26 $2500 Certificates of Obligation $9.63 2007 General Obligation Bolls $11.07 118 Tli Reimbursable Debt $11.44 2019 General Obligation Bonds $27.51 — HGAC-TIP $34.06 Impact Fees - Debt $66.25 WIS Revenue Bei $85.86 $0.00 $20.00 Woo $60.00 $80.00 $10000 FY 2020 Uses by Project Type ($ in millions) Parks M Facilities Drainage — Streets — Water/Sewer — $- $50.0 $100.0 $1500 $2000 $2500 118 Water/Sewer projects total $229.62 million,or66.1%, of the capital improvement program. Majorprojects include rehabilitating failing sanitary collection system, construction of underground piping infrastructure at water production facilities, replacement of transits waterline pipe throughout the city, construction of 10 MGD surface water treatment plant, expansion of Barry Rose WRF from 3.8 MGD to 8.5 MGD, replacement of 140,000 gallon ground storage tank at Southdown Plant, Remove and replace existing discharge piping and install an odor control unit on the Miller Ranch regional lift station, and decommissioning of Longwood Water Reclamation Facility. Street projects total $68.96 million, or 19.9%, 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, construct a 3- lane concrete curb and gutter "urban' cross-section northbound frontage road from County Road 59 to FM 518 (Broadway), and installation of sidewalks, crosswalk enhancements/improvements and other traffic control improvements identified in the Safe Routes to School plan. In addition, funding is included for street reconstruction, Pearland Parkway traffic improvements, Peadand Parkway traffic circle modifications, Shadow Creek Parkway landscaping, street Lighting and sidewalks, sidewalk extensions, and traffic signal upgrades. Mykawa Road, Hughes Ranch Road, McHard Road, Smith Ranch Road, and Safe Routes to School contain 80% construction funding through HGAC TIP. Facilities total $17.28 million, or 5.0%, and include construction for a new 21,000 square foot animal shelter on four acres. Also, the City will begin construction of a permanent county library facility on the west side, Shadow Creek Library; and design for a new operations and maintenance building at Orange Street Service Center Phase II. Funding is also available for design of the fire training bum building, a new roof at the city hall annex, and relocating a generator from Reflection Bay WRF to PSB. The city will also continue to extend the fiber network to reach all city facilities. Drainage projects to be $20.90 million, or 6.0%, 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, and West Lea Subdivision drainage improvements. Parks projects total $10.32 million, or 3.0%, of the total. Funds are included for park equipment replacement, a permanent stand-by generator that will operate the recreation center at full capacity to be able to provide full operational capacities in limes of emergency for City staging or as a shelter, and design of Shadow Creek Ranch Park Phase It. For the Water/Sewer component, the City anticipates selling revenue bonds totaling $154.13 million to fund infrastructure improvements in the capital improvement program. Of the remaining $99.61 million, the City anticipates selling $38.58 million in GO Bonds approved by the voters in 2007 and 2019 and selling Certificates of Obligation in the amount of $21.07 million mainly for facility projects and TIRZ related facilities. A total of $34.06 million will come from HGAC Transportation Improvement Program funds and developer contributions, mainly for street projects. 119 REVENUES: IMerestlnwme Mind Prccee]s Impact Fees Miscellaneous Intergovernmental Transfers In TOTAL REVENUES GOVERNMENTALFUND FUND 500 FUND 501 FUND 503 FUND 508 FUND W7 FUND 508 PAY -AS- CERTIFICATES 2006 GENERAL 2020 2020 YOU -GO OF CERTIFICATES OBLIGATION GENERAL CERTIFICATES OBLIGATION' OF OBLIGATION' OF 50,m0 275,000 300000 223,000 100,000 38,577,761 21,066,637 EXPENDITURES: 1$00580 31,grai 2,553,658 391a75 Drainage wars 1,715,00 31'896.928 3a58D,746 23.720.237 EXPENDITURES: Drainage (31,361) T,061,000 Parks (5,116) 1,000580 9,3211,583 Full 789,750 69,443 5,580,000 3,T8Bm3 Streets 150,580 906,07T 31,589,316 17,588,766 10,512,237 Wafer Sewer TOTAL PROJECTS 939,750 Fell 31,659,315 31,821,144 23.620.237 Issuance Costs 011ier Non-0petrig Transfers Out 190.091 Intl 2.010 492.010 222,654 7L532 TOTAL NONAPERATING 196.01 608,132 2.016 692644 222656 711632 TOTAL EXPENDITURES 1,136,441 1,Sad Tis 20116 32181,982 32060,398 23,01,70 REV OVEW(UNDER) ERP (691.506) 380.225 (2,046) (357.131) 0.750.340 211 BEGINNINGBAWJCE 977,200 (227,413) 13,173 08206 (6]50,000) Ending Fund Bene is $ 2851 6 10,012 6 11,127 $ 331'002 F 346 5 28.60 Note- Each fund may have different restrictions or assignments based on tuning source, therefore ending balances may hot be available for outer purposes. 'Begin i g In FY 2020, all debt Issuances xfll be Isolated into their own unique bond. Negative fund balances are a result of appropriations needed by amid contracts, bid expenses will not be incurred until an Intent to reimburse has been approved by counal. 120 GOVERNMENTALFUND EXPENDITURES: FUND SOe FUND 511 FUND 512 FUND 513 TOTAL 6,000,000 2021 PEM PAY -A4 2021 2022 10,314,1394 Fell GENERAL YOU -GO CERTIFICATES GENERAL 7,405,928 OBIJMTNIlP Walter OF OBU"TNIM Bever OBLIGATION' TOTAL PROJECTS 13,588000 REVENUES: 116,031,618 Issuance Costs Inlerestlncome Transfers Out Signori Mind Pro ee]a 1.410.919 TOTAL NON-OPERATING 8.609 8.609 58,844,381 Impact Fees Miscellaneous Intemovernmental 35,558,428 Transfers In 394,875 TOTAL REVENUES 98.545.884 EXPENDITURES: 13,598.809 7,405.928 8,008809 Drainage 7,840,000 6,000,000 20,869,639 Parks REVOVEW(UNDEN)EXP 113.588,6091 10,314,1394 Fell 5,750,000 16,256,1`93 Starts 7,405,928 80,590,302 Walter (8298,Icl Bever TOTAL PROJECTS 13,588000 7,405,928 6,000,000 116,031,618 Issuance Costs Other Non-0Perru g Transfers Out 8.639 0.639 1.410.919 TOTAL NON-OPERATING 8.609 8.609 1.410.919 TOTAL EXPENDITURES 13,598.809 7,405.928 8,008809 117,82.537 REVOVEW(UNDEN)EXP 113.588,6091 (7,405 928) (B,Dow ,8091 120.888,8531 BEGINNING BALANCE (8298,Icl Ending Fund Baance t'1 5(13,598.609) 8 $ I7.85,9281 8 16.008.6091 5126,198.687 Note- Each Mind may broker different rearictions vassignmems based on former source, gnerefore ending lmlences may rM Be availl for other purposes. 'Beginning in FY 2MD, all deer currencies will im iadatee into their own unique fund. Negaivefund balancaa are aresnnntapWda ons needed to swam contracts. but expenses will not be incurred until an Intent o relmcurse has Wen approved by cournal. 121 ENTERPRISE FUND FUND 550 FUND 551 FUND 552 FUND 555 FUND 565 FUND 566 UTILITY WATER WASTE SHADOW REVENUE 2020 IMPACT FEE IMPACT FEE WATER CREEK BONDS REVENUE IMPACT FEE RANCH BOHM 2,030,030 IMPACT FEE Miscellaneous REVENUES: Inbrestlnwme 1,000,000 fill 125,030 10,030 300,000 fill Brad Prccee]s 46,527,030 Impact Fees 2,500,030 2,030,030 Miscellaneous Imer9ovemmemal Trznsfes In TOTAL REVENUES 1,000,000 2,650,000 2,125,000 10,000 300,000 46,677,000 EXPENDITURES: Orainage Parks Facinies 777,000 Stands Water Stoical 2,350,090 6ewar 521,293 43,205,000 TOTAL PROJECTS Si 48,332,000 Issuance Costs Other Non-0perra g Transfers Out 5.221.232 667.023 309.166 43.223 TOTAL NON-OPERATING f,2N,232 667,023 308,166 43,223 TOTALEXPENORURES 6,042,525 887,023 309.188 46,375,U3 REV OVERpUNDER) EXP IS DO 525) 2,850,000 2125,000 (657,023) (9.166) 301,]77 BEGINNINGBN-ANCE 16,19,325 657,023 180.056 (195,00) ENDINOBALANCE f11,074,800 f 2,650,000 f 2,125,000 If 0 f 174,880 f 10i Note- Each fund may have different restrictions or assignments bared on funding source, 0erefore coding balances may net be available br other purposes. 'Beginning in FY 2020, all debt Issuances WII be Isolated into their own unique fund Negative mind balances are a result of eppmpnations needed to award contracts, but expenses will not be incurred until an Intent to relmiuted has Wen appeaed by count. 122 ENTERPRISE FUND FUND 567 FUND IRS FUND 50 FUND 570 FUND 575 TOTAL 2020 WATER 2021 2022 PAY-AB-YO0. MUD DRINKING REVENUE REVENUE GO CAPITAL BONOB BONDS' BONDS' PROGRAM REVENUES: Inlereatlnwme W0,000 75,030 2310000 Bond Proceeds 107,600,000 154 127,000 Impact Fees 4,500,000 Miscellaneous Imergroemmemal Tenders In 2.885,000 2,884000 TOTALREVENUES 108,100,000 2,9413,000 183,802,000 EXPENDITURES: Drainage Parra Facil9les Smeets Water 106.000.000 30.725.000 1.890.000 141.265.000 Sewer 45.T70.000 975.000 90.471.293 TOTAL PROJECTS 106,000,000 45,770,000 30,725,000 2,865,000 231,734299 Issuance Costs - Other Non-0neer0lg Trenskrs Out 9,402 23.144 13,396 245,596 4532162 TOTAL NON- PEMTING 9,402 23,144 13,396 245.596 6.532,182 TOTALEXPENDITURES 108,009,402 45,793,144 30,738,396 3,110,598 233.88,475 REVOVEW(UNDER)EXP 2.090,598 (45793,144) (30,7383944 (170,589) (75,243475) BEGINNINGBALNJOE (1,600,000) 194,513 0 15,357,917 ENDINGBALANCE 6 490,598 Sherri 6(30.738.3944 $ 23.917 $ 0 6(59.885.558) Note- Each Nntl may have different reaMdiace or assignments based on funding source, therefore ening balances may M be readable M Wlla pusses. -Beginning In FY 2020, all debt Issueless will be Isolated into their own unique Nntl. Negalhre fund baHncea are a result of appropriations neetled to Psi coMrerls, bid expertise will not be incurred umil an Intent to reimburse has been unnerved by camel. 123 SUMMARY OF CAPITAL PROJECTS Project M Project Name Project Description Drainage Pro'ects OR1901 Piper Read Drainage Drainage improvements along Piper Road from FM 518 to Fite Road. TM1IS project µ11l reVI6W the existing open ditch Manage system On Piper Road. The project will be to reymde the ditches add reset culverts to move the high poorof the road further north. The project will also include an asphalt overlay of Me mad to repair damage due to the drainage improvements. This will allow for more ofthe drainage area k flow southto the linear detention pond lust east of the elementary school at Fite Road and FM 1128. This was an area itlenNfietl in the Harvey Drainage Assessment Report as a local drainagenage improvement project. Project 2020 O 8 M Impact 2020 "21zz 2o m23 m en Budget Bm et $1,151,000 $931,000 $0 $3,185 $31185 $3,1&5 $3,185 DR1902 Mimosa Acres Drainage Improvements The project area, located in Mimase Acres Subdivision, is bountletl by Chancy Street, Francis Drive, W. Pear Street and Wootly Drive. Drainage improvementsfor Ne subdivision will require removaV replacement of driveways, driveway culverts, storm sewer system, and re -grading of the tlikM1as he rerefundrefundgoateeas to the original design capacities. The project will also include an asphalt ovetlay of1M1e roatl to repair Damage due to the drainage improvements. This was an area identified In Me Harvey Drainage Assessment Report az a local tlreinege improvement project. Project m20 O 8 M Im ct 2020 21121 2022 mtl m21 Bud el Budget $1,891 $1,4]0,000 $0 $0 $0 $0 $0 DR1903 Will Subdivision Drege inaThe project area, located In WillSubdivision, Is bountled by ImpImprovements Cherry St, Woody Rd,W Plum St and Mykawa Raetl. Drainage Improvement and street reconstruction for Me subtliviskn, will require removallreplacement of curb inlets, upsizing of the stone sewer system, and may require the purchasing drainage easements In ober eplace the storm sewer system. to be able to rpeal Project m20 OBMlap Budget Bud el 2020 m21 2022 m29 m2d $15.926.000 $13,840,000 $0 $0 $0 EO $0 124 SUMMARY OF CAPITAL PROJECTS Project N Project Name Project Description DR1904 West Lea Subdivision Drainage The project area, located In West Lea Subdivisbn, b bounded by Improvements Manvel Road, Bailey Read,BDD4 Ditch, and Mary's Creek. Drainage improvements will require removal and replacement of driveway culverts, upsizing of culverts, widening and reyretling of her ditches.The projea will also Include an asphalt ovetlay of the Intersections b repair damage due to the drainage improvements. The project will also require the reyretling of the ditch slag Manvel Road all the way to Mary's Creek oudall and tleepening the area drainage ditch along the eastern perimeter b Mary's Creek. Project 2020 O 8 M Impact 3020 x021 2023 x023 x02d Budge[ Budget $5,49$000 $4,680,000 f0 $0 $0 $0 $0 Drainage Total 2020 08MIm R Budget Budget xozo zozl zozx nzou WiL-- $24,259,000 $20,901,000 $4 $3,165 $3,165 43,165 4 125 -1 3,165 SUMMARY OF CAPITAL PROJECTS Project M Project Name Project Description Program Ilfespan of park system amenity offerings. This program will seek to Rugby groups), a multipurpose 'Miracle Field (adaptive multi minimize deferred maintenance & provide Ngbqualiry recreation athletes), additional field lighting, approximately 250 asking spaces, assets t0 Me Citizens of the Parks system Inventory. This Project recapitalization will udlize a capital replacement program that is 0"M Ira cl regularly updated, ro provide updates, & replacement of equlpment or 2021 facilities, such as water play features & structures, playgmund I2023 equipment, & dog park amenities as necessary. These items serve as Butl examples of components with safe & useful lifespan mat are E9,]20,000 monitored for replacement b ensure & enhance the user experience 1 $0 & provide a safe environment that Is within reach to the greatest 1 $12,809 number of citizens. Initial locations include Southdown Pan, $398.929 Centennial Park, Independence Park, Creekside Park. Aaron PK2003 Shadow Crack Tall Phase 11 -Along Construct approximately 1,000 foot of 10 -foot -wide hike and bike trail Pasternak Memorial Park, Corrigan, Zychlinskl Park, Woody Street pedestrian bridge over the channel. The trail will conned the new trail Pan, and Mattered Needs derided from 2020 Master Plan. 2020 O & M Impact Budoet 2020 1 2021 i 2022 2023 2029 $1,000,000 $0 $0 $0 $0 $0 PK2001 Shadow Creek Ranch Park Phase 11 Phase II of the Sports Complex at Shadow Creek Ranch will include the addition of two cricket fields (which can also serve the needs of Rugby groups), a multipurpose 'Miracle Field (adaptive multi field) area (a sports surface designed to accommodate special needs athletes), additional field lighting, approximately 250 asking spaces, and expanded restrooms and concession offerings. Project 2020 0"M Ira cl 2020 2021 2022 I2023 2029 Butl Sudden E9,]20,000 $9,0]0.000 1 $0 $0 1 $12,809 I $2]3,58] $398.929 PK2003 Shadow Crack Tall Phase 11 -Along Construct approximately 1,000 foot of 10 -foot -wide hike and bike trail Clear Creek Relief Chen &Library Trail along the along the Clear Creek Relief channel and include a pedestrian bridge over the channel. The trail will conned the new trail along Clear Creek to the tail that Is located along the Clear Creek Relief Channel. Additionally, a500-foottall will be lntalletl to connect the proposed SCR Library to Me SCR Tail. Protect 2020 O & M impact Budget Butlgat 2020 2021 2022 21123 2020 $1,5]5,000 $250,000 50 1 $0 1 $0 $5,000 55,000 Parks Total 2020 O & M impact Budget Budget 2020 2021 2022 on 2024 $13,795,000 $10,320,000 $0 1 $0 $12,809 $2]8,58] 1 3401,929 126 SUMMARY OF CAPITAL PROJECTS Project If Project Name Project Description Maintenance Plan documentation and analysis of the Citys existing built facilities. The would include all relevant components such as HVAC Eleclricall Plumbing) Flowing/ Ceilings/ Lighting upgrades/ Fixteresl Insulasonl Structural. This assessment plan is to evaluate all city facilities for building system (Hespan and condition. Information from MIs Initial evaluation will assist with budget forecasts far each year by having a clear understanding of building systems, Meir age and forecast lifespan. The analysis will also be utilized for prioritizing capital Improvements and maintenance requirements, as wall as assisting with allocating operating budgets and on-going maintenance schedules. Construct 9 21,000 sq. H. animal shelter on 6 acres to house tti stat) members, medical suite, dog runs to house ae canines, and cat runs for 134 felines. quarantine areas In compliance with State taw for up to 16 quarantined animals, an adoption centerwlih overruns potential adoption interaction and observation, veterinary service room, laundry room, and food storage areas. 127 SUMMARY OF CAPITAL PROJECTS Facilities Master Plan. Anew Opeatlons& Maintenance building with parking is planned, lousing bad 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 stoned outdoors, and meet current And sthrm requirements and emergency shelter resiliency to operate as a shelteHn-place facility for Public Wates first responders. The building will include locker rooms and showers, a training room, break mom, and kitchen. VTWT FA2003 Fire Training Bum Building Phase l Construction of a two-story live fire training bum mining and concrete pad on Me existing Peadand Fire Department Fire Training Field east 0 M David L. Smith Fire Administration Building. To properly educate and prepare Peadand'a firefignters to respond to the complex bazaNs that they will face In residential or commercial fires, the fire department needs to have appropriate facilities ro train, acquire and enhance the skills needed. Project 2020 O&Mlm act 2020 2021 i 2022 2023 20TH Budget Budget $1,300,000 $130,0001 $0 $196 1 $391 $391 $391 FA2004 Fiber Backbone To extend and build out the fiber network to reach all city facilities (buildings, lift sta0ons, parks, traffic signals, and caster facilities) and supports the SCADA network. Funds In 2020 will bring fiber along John LlzerlMagnolia from Harkey to Peadand Partway. Funds in 2021 will bring fiber along Magnolia from Harkey Rd to Cullen Parkway. Funds in 2022 will bring fiber along Cullen Parkway tram Magnolia to the Public Safety Building. Funds In 2023 will bring fiber along Cullen Parkway from Public Safety Building to MCHaM. Funds In 2024 will bring fiber along Magnolia from Cullen to Smith Ranch Rd. Funds in 2025 will bring fiber along Magnolia from Smith Ranch Rd to Kirby Water Plant. Project 2020 O&Mine eel 2020 2021 2022 1 2023 1 2024 SmallBu et $3,043,000 $Ta9,T50 $D $0 $0 1 $0 1 $0 128 SUMMARY OF CAPITAL PROJECTS Project 0 Project Name Project Description FA2005 CityHall Annex Roof This project will be to remove the existing roof to Me connate subM substrate on Me building, provide a new sealant membrane on e deck, atltl new insulation block and Men apply modified bitumen memmembrane with mechanical fasteners spaced to create a 140 mph13 second gusts roof. This w111moectfor structure tlegedion tlue to age and provide a new 35-year warranty not constructed for Me City'sstandardSdard windstorm specifications. 20211 OBMImpend: 3030 3031 3033 3023 202d Budget Budget $995,000 $995,000 $0 $0 $0 $0 $0 FA2006 PSB Power Redundancyfor Redundancy1p This projectwill also Include Me design of the concrete slabfountlation Critical Facility and visual screening. This prolan will also include Me refurbishment of the existing generator that is located at Me Reflection Bay WRF Mat was part of Me original plant. This Is a 1500kW generatorthat will the refurbished, to meet Tier II requirements, and relocated!to Me publicServices Building (PSB) to augment are existing generator provide full-service capabilities at Me PBB. This will also include the evaluation of the electrical service entrance to determine himto best connect this generator. Prolact 3020 O 8 M Impact 3030 3031 3033 3029 303d Budget Budget $8]5,000 $0]5,000 $0 $0 $0 $0 $0 FacFacilityTotal 20211 O 8 M Im 3030 3021 3033 2023 202d Budget Budget $88,350,000 $17,284,750 $0 $198 $145,258 $1,104,060 $1,160,820 129 SUMMARY OF CAPITAL PROJECTS Project M Project Name Project Description Sfreef Pro seta TRO601 Mykawa Read Widening - BWB to FM Construct approximately 3 miles of 41ane concreterete curb and gager 518 tlivitletl boulevard!section roadway, including storm sewers, outfalls antl detention, traffic signals and mated items. Data from previous sefforts will be incorporated Into the design process. This protect will require full environmental assessment and ROW acquisitions along the alignment Installation of approximately 11,000' of fiber from FM 518 beintersection at Brookside Rd FurMirg is an 80120 split with TxDOT and TxDOT will let and construct protect. projectproject3030 0811fiIm act 2020 2021 21122 2023 2020 Budget Budget 515.568,303 82,982,904,000$2,g, $0 $4 888,550 589,580 $89.580 TR1405 MCHard Read Extension IThe extesion nof approximately 3.5 tulles of MCHaM Road, from Mylawa Road to Cullen Padcway) Cullen Parkwayconsistinge, w to Mykawa Road, consisting of a 41anncrete, curb and gutter, tlivitletl roadway with aisemattersmeans and underground damage. Includesutles sbrm sewers, oudalls and retention,five traffic signals at secondary thoroughfares and major collectors, sitlewalks, street lighting and landscaping. This protect will be terminated with the MCHaM Road Tank Sewer etlenaion and MCHartl Road Water Line Extension. Run approximately 38,000' of Near from Country Place PkwylSmim Ranch Road to SH 351 Winn St. Paled 3020 OB.MIm act 2030 3031 2032 3031 2030 Budget Butl at $0 $0 $190,478 $193,4]8 $51,934,500 $41,859,500 $193,470 TR1501 SmithRanch Road Extension (CR 94)- Expansion of Smith Ranch Road tam 2 -lane asphalt into divided 4- Hughes Ranch Road he Broadway lane with alsetl medians, concrete cum and gager, storm sewer, and w landscaping. Limits are from Hughes Ranch Road, utM1 approximately 3,250 LF m 2,040 LF north of Broadway. Run approximately 9,500' of Ober from FM 518 to MCHab. Project 2020 06MIm act Budget Budget 2020 3031 3023 3033 2030 $8.290.500 $5.225.000 $14.308 530,04] $34,05] 538,590 $38,429 130 SUMMARY OF CAPITAL PROJECTS Project a Project Name Project Description TR1802 Safe Routes to School Improvements As Identified In [M1e Safe Routes to School Plan, sites may Include the inatallatlon of sidewalks, crosswalk enhancemenislimprovements and rr traffic control improvements. City staff has pdoriUzetl and produced cost estimates that include detailed stypes of work required and a projectschedule. Improvements planned for H.C. CartesianElementary, Barbara Cockrell Elementary and Junior High South. Challenger Elementary, was identified but will be done with Hughes Ranch Rd project.Project 20211 O 8 M impact 2020 2021 2022 8023 202d Budget Budget $3,]82,0011 $3,342,0011 $0 $0 $0 $2,000 $2,000 TR1701 SH 288 Norlhbountl Frontage Read - Constructa 3- lana concrete curb and Butler "urban" e crossacfion CR 5910 FM 518 (Broadway) frontage head from County Read 59 t0 FM 518 (Broadway), northboundbound only, to include a U -Tum lane under Me CR590veryass. W Inincludeude access lane to SH 288 main lanes. Project includes right of way acquisition for detention pond This projectwill include extension of City utilities antler a separate projed b be tlefinetl at a later date. Project 2020 O 8 M Im ct zozo zozl zozz zgza zgu Budget Budget $a,]to,oao S7.100,000 $g $o $o $z,a2a2,0010$z,ao TR1901 Street Reconstruction This project consists at the reconstruction of concrete neighborhood streets throughout tlse City. The reconstruction projects are Eased on pripricing"detived from the RlgMof-Way Assessment andresulting ConditionIntlex PCI).II. The streets o naighborhoatls itlenggetl indutle: FY 19 Linwootl Oak and Orange Circle, FY 20 - 21 Sleepy Hollow subdivision and FV 22 -23 Sherwootl subdivision. The performance of the drainage system in these areas will DQ reviewed and any identified drainage improvements will ba irmlaaetl. Additionally, the utilities mil be reviewetl and upgraded as necessary in advance of the roadway reconstruction. The projects will replace eus8ng concrete pavement withnew concrete pavement In of Ore iaeneoaa neighborhoods. Project 2020 o a M Impact zozo zezt zozz zoz3 zoo Budget Budget $10,875,000 $2,850,000 $3,5110131 $3,500 131 $3.500 $3.500 SUMMARY OF CAPITAL PROJECTS Project N Project Name Project Description TR1902 Peatlantl Partway Traffic This project consists IN the installation of a traffic signal and Improvements intersection improvements at Me intersection of Pearlantl Parkway and Forest Part Lane/Summit Springs Lane. Directional WeselWeselamps e and crosswalks across Pearlantl Parkway will be Indutld Left tum bays on the minorsbeet approaches will be striped A Aber optic line will be InstaAb lled from Old Alvin Read Barry Rose along Pead Parkway to connect Me new signal and Me signal at Barry Rosa to the Trialfic Management Syskm. Project 2020 08MIm Pact 2020 2021 2022 2023 202d Budge[ Budget $1,124,000 $9]9,000 $0 $0 $0 $0 $0 TR1903 Peatlantl Parkway Traffic Circle Design and construct Improvements ct improvements the adding entry traffic circle MotlModifications at the intersection of Pearson! Parkway and MCHaM bprovide amom convengonal geometry, with a twoaane roundabout with an oulsitle by- pass lane designed for higher speetls for the right -turn movements. The project will also install sidewalks to connect existinggaps and provide petltradesmanmnnediwty. Project 2020 O 8 M Im ct zozo zort zozz 20z3 2024$3,272,000 Budget Budget W,760,000]Bo,oao $g $o $a,000 $a,goo $a,;4"TR1906 Dailey Road Expansion (Veterans Or to This prated consists of widening the current two-lane roadway to a Main) foullane boulevard section ro match the existing roadway chase - section to the east and west The protectwill include Me addition ad a w above grade crossing over are ailrcatl to achieve Me desired obsoleteobsoletewidM as required in the Thoroughfare Plan. The widening will also include drainage improvements to address the road witlenirg. This will be to provide Improved vehicular mobility in the east/vest omtlors by having a miNane boulevard train HM35 to SH288. The prajed has been submitted b H -GAC for TIP Footling. Project 2020 O 8 M Im Paul zozo zozz zozz on "M Baa et fssBudget aoo $as, $U5,000s,000 $o $B,aoo $6.400 Sfo,aoo Sfo,aoo 132 SUMMARY OF CAPITAL PROJECTS Project N Project Name Project Description TR1905 Shadow Creek parkway Landscaping, This project x111 provide enhanced landscaping, slreei Ilghtlng eM Street LigM1Ong&Sidewalks continuous sidewalks along MS Shadow Creek parkway Corritlorfrom $H288 to FM521. This will provide safe travel b vehicular traffic and pedestrians Mat will travel from the residential areas to the commercial areas. PmjM Budget 20211 Budget OBMIm 2020 2021 2022 8023 202d $],140,000 $915,000 $0 $0 $0 $0 $0 TR2003 Shadow Creek Ranch Sitlawalk The paled is to increase connectivity of sitlawalks along Extension; iM1orougMares and collector roatla within the Shadow Creek Development by adding approximately 19,500 feet of 8-fool-vnde sidewalk. Project Budget 2020 Budget O 8 MIm ct zozo zort zozz 2az3 zau 2021 $1,13],]01 $2g5,237 30 $o $o go $1,500 $0 $0 $0 TR2106 Major Thoroughfare Update The update m iM1e thoroughfare plan will include IM1e redevelopment of a local and regional travel demand motlel capitalizing on Me population data from the 2020 census. Tile ravel demand model x111 then be used to analyze and re0na the City's existing MoaugMare plan b itlen4ty areas of neetl. Project Bud 2020 at O 8 MIm 133 Bu at 2020 2021 2022 2029 202A $550,000 $150,000 $0 $0 $0 $0 $0 SUMMARY OF CAPITAL PROJECTS Project a Project Name Project Description TR2105 Traffic Signal Upgrades Program The Traffic Signal update will Include replacement of Me existing ouldaled signal equipment W real to Me City of Pearland specifications. Budget for each intersection includes upgrading the traffic defection, traffic cantroller and conflict monitor, and Me labor required for Installation. Project 2020 O a MIm Budget Budget 2020 2021 2022 2023 2024 $2,250,000 $450,000 $0 $0 $0 $0 $0 Streets Total 2020 0aslimness 2020 2021 2022 2023 1 2024 Budget Budget $134,209,004 $68,959,737 $17,808 $39,90) $328,]94 I $341,53) 1 $344,867 134 SUMMARY OF CAPITAL PROJECTS Project # Project Name Project Description supply variable frequency drives for the pumps. Estimated roreplace Water Pm'acts WA1605 Surface Wafer Plant Pilottesflng,design, and consWcibn ofapre-tlima sentatbn basin, 10 2020 2021 MGD Surface Wafer Treatment Plant and associated distribution 2023 2020 system. This protect will net raw water from the Gulf Coast Water Bottom $2,]00,000 Authority (GCWA) canal for distribution throughout the City's water $0 $0 system. The plant will be located an City property on CR48 soutM1 of $0 $D CR58, which is adjacent to Me GCWA canal. Pilot testing began in WA2001 Underground taping Infrastructure at Replace significant portions of aging large diameter sister conveyence Water Production Paribas pipe located at ureter production facilities. This program will inspect FY2018 and will be followed by design and CerebralThe project and replacement of failing piping All each facility (in 2020 Gallen and Southeast Water Facilities In 2021 McLean and All Water Is scheduled tobecompleted overs flue-yearpedod withnewcapeciry litles, Fadand in 2024 Shadow Creek Water Facilities.Project ct available by 2022/2023. Phase 1 of the distribution system is planned 2021 2022 to include 24' - 36" pipelines from the Surface Wafer Plant to the FM 2029 Butl et 521 and FM 1128 corridors. Installmentof Aber to serve Russ City's E1]8,400,000 $135,125,000 SCADA system. $208,08] $i8A588 Project 2020 O 8 M In $D WA1904 Southdown Plant Ground Gtarege Tank Removal and replacement of existing 140,000 -gallon boXetl ground 135 Replacement storage tank. Project Includes the removal of Me hydro -brinks and supply variable frequency drives for the pumps. Estimated roreplace withup to 500,000 gallon welded steel tank antl generator.ProjectProject2020 O 8 M Impact 2020 2021 2022 2023 2020 Budget Bottom $2,]00,000 $21350,000 $0 $0 $D $0 $D WA2001 Underground taping Infrastructure at Replace significant portions of aging large diameter sister conveyence Water Production Paribas pipe located at ureter production facilities. This program will inspect each of the 10 facilities and make recommendationsfor the design and replacement of failing piping All each facility (in 2020 Gallen and Southeast Water Facilities In 2021 McLean and All Water Fadlitles, in 2022 Liberty Water Fadlitles, in 2023 grby Water litles, Fadand in 2024 Shadow Creek Water Facilities.Project ct 2020 2021 2022 2023 2029 Butl et Bud N E1]8,400,000 $135,125,000 $0 $208,08] $i8A588 $1,003,920 $3,340,545 WA1904 Southdown Plant Ground Gtarege Tank Removal and replacement of existing 140,000 -gallon boXetl ground 135 Replacement storage tank. Project Includes the removal of Me hydro -brinks and supply variable frequency drives for the pumps. Estimated roreplace withup to 500,000 gallon welded steel tank antl generator.ProjectProject2020 O 8 M Impact 2020 2021 2022 2023 2020 Budget Bottom $2,]00,000 $21350,000 $0 $0 $D $0 $D WA2001 Underground taping Infrastructure at Replace significant portions of aging large diameter sister conveyence Water Production Paribas pipe located at ureter production facilities. This program will inspect each of the 10 facilities and make recommendationsfor the design and replacement of failing piping All each facility (in 2020 Gallen and Southeast Water Facilities In 2021 McLean and All Water Fadlitles, in 2022 Liberty Water Fadlitles, in 2023 grby Water litles, Fadand in 2024 Shadow Creek Water Facilities.Project 2020 O 8 M Impact 2020 2021 2022 2029 2029 Butl et Budget $1,250,1100 $250,000 $0 $0 $D $0 $D SUMMARY OF CAPITAL PROJECTS Project M Project Name Project Description replace Me water line infissWcture in the following locations over a period ofyears-Corrigan, Somemetshire, Country Place, Grasso Tee, Westminster, Brookside Acres, Shadycresb Creek View. Padalew, Wood Creek, Heritage Green, and Southdown subdivisions. FY20: Corrigan North, FY21: Country Place, FY22 8 FY23: SouMdown, FV 24 8 FY 25: Wood Creek. have been identified that need to be extended looped/connectecl to other water system mainlines. These areas are also being captured by Me City a water system model. These connections will assist In enhandng water quality and maintenance in the system by removing Mesa areas and increasing looping and redundancy within Me following nelghbomoods: Town Lake Estates, Westwood Village, West Oaks, West Oaks Village, Lakes of Edgewater Estates and Southgate. 2020 WA2004 Sleepy Hollow Dr I Washington Irving I Rip Van Winkle Dr Water Line Replacement This project includes Me replacement of 3,200 LF of T 8 6' water lines due to Meir location in relation to the street pavement located Northwest of Yost Boulevard and adjacent to Clear Creek. This project will be completed in conjunction with Me Street Reconsbuction program. Project Bu et 2020 Bu et O S M Impact 2020 2021 2022 1 W23 1 2026 $400,000 $00,000 $0 $0 $0 $0 $0 Water Total Budget 2020 Budget O & M Int of 2020 2021 2022 2023 1 2026 $207,810,000 $139,365,000 $0 I $208,08) 1 $189,556 1 $1,003,926 1 $3,340,545 136 SUMMARY OF CAPITAL PROJECTS Project # Project Name Project Description Waste Water Projects M1406 1406 McHand Rd Trunk Sewer (Garden to Install, along McHard Rd, approximately 4,500 feet of 24" trunk sewer Sectorial MTP) hon Cullen to Southdown W RF (completed by Developer Agreement with Lake Park Subdivision); 5,800 feel of 18' trunk sewer from Cullen to Max Ross, and approximalely 4,000 LF of 15 -trunk sewer from Max Road to Garden Road. Project 2020 8 M Im ct 0"= 2020 2021 2022 2029 2020 Budget Budget $5,400,000 $3001000 W $0 $0 $0 $0 M1502502 Bany Rose WRF Expansion In 2016 a Preliminary Engineering Reportbegan to determine the spespecificdesigngn parameters required for the plant expansion, including volume and biological )Detling. This project w911 'mdutle a raw, separate plant to be run in parallel with the existing plant A d] MGD expansion to the existing 38 MGD water reclamation facility will Increase the treatment capacityto 8.5 MGD facility.Project 2020 O 8 "Impact 2020 2021 2022 2023 2029 Budget Butl et $12.083,209 $04,991 $0 $431,441 3431.441 $431,491 3431,441 M1905905 WOlowcrest Subdivision Sanitary Sewer This proles x111 be 1p rehabilitate 0e sanitary sewer collection system located within Me subdivision. The sanitary sewer collection system is located in the backyards of the residents and makes it difficult to maintain and make repairs. There is approximately 12.500 LF of pipe and 40 plus manholes. This proles coordinated is ordinatetl with the drainage project. Project 2020 O S M Impact Budget Budget 2020 2021 2022 2023 2024 $1,640,000 $1,300,000 $0 $0 $0 $0 $0 137 SUMMARY OF CAPITAL PROJECTS Pro]ect 9 Pro]ect Name Protect Description WW1906 Longwood Water Reclamation Facility Decommission the Longwood Water Reclamation Facitty (LWRF) and Decommissioning transfer the flow to the expanded Barry Rose Water Reclamation installed poor to construction of Hughes Ranch Road. Prolact Facility (BRW RF) via a new Longwood Transfer Lift Station and Force 08MIm act Main. The Longwood Force Main anticipated length Is approximately 2021 2022 20.000 linear feet. Project 2020 O & M Impact Budget Budget 2020 2021 2022 2023 2020 $18 ant $16Sag00o $0 $0 $0 $0 $0 WW 1907 Hughes Ranch Gravity Trunk Sawar Design and install the Hughes Ranch Road segment of the gravity sevrer reflection system from Cullen parkway to Bryant Court. This segment will begin with a manhole located within the Cullen right of way extending wea[ within Me counter approximately 5,000 feet to be installed poor to construction of Hughes Ranch Road. Prolact 2020 08MIm act 2020 2021 2022 2023 2020 Butlget Butl at $1755," $1,560,000 ($8,200) ($8,200) ($8.200) 1 ($&,200) 1 ($8,200) W W2001 Miller Ranch Regional Lift Station Odor Remove and replace existing discharge piping and install an otlor Control & Rehabilitation mn[rol unit 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 In the corrosive nature of the gases the discharge piping interior and extenor needs to be replaced- M pad of the rehabilitation and meeting TOED requirements for a regional lift station this see will require a permanent generator with automatic transfer switch. Project 2020 O & M Impact Budget Budget 2020 2021 2022 2023 2024 $945,000 $945,000 $0 $20,000 $20,000 $20,000 $20,000 138 SUMMARY OF CAPITAL PROJECTS Project # Projact Name Project Description W M02 Royal Oaks LM Station This project consists of a major rehabilitation of Me existing Royal Oaks lift nature, now 30 plus years IMo their service Iia. Work will include structural rehabilitation of Me wet well, replacement of existing old-style Gorman Rupp seti-pnming pumps with new more efficient submersibles mounted to guide rolls, replacement of old-style electrical controller cabinets and the addition of SCADA Ober and Ethernet switches for automated reporting and a manual transfer switch for generator hookup. Project 2020 0 8 M Impact Budget Budget 2020 2021 2022 2023 2024 $580,000 $580,000 $0 ($8,200) ($8.200) ($8,200) ($8,200) WW2003 Sanitary Sewer Rehabilitation In0owand infiltration program to rehabilitate failing sanitary collections system over thirty yeare of age in the following areas over a period of years - North Corrigan Subdivision, Somersetshire. Country Place, Green Tee, Brookside Acres, Shadycrest. Creek Vlew, Parkvkw. Woodcock, Heritage Green, Clear Creek Estates, and Twin Creek Woods. Projact 2020 OBMIMpaet 2020 2021 2022 2023 2024 Butlget Butl et $17 M0 $1,500,000 $0 $0 $0 1 $4 I W0 M2004 Shadow Creek Regional Lig Station Shadow Creek Regional Lift Station will require a permanent Generator generator AM automatic transfer switch. As part of the rehablkabon and meeting TCEO requirements for a regional lift station this site will require a permanent generator with automatic transfer switch. Project 2020 0a M Impact Budget Budget 2020 2021 2022 2023 2024 $375,000 $375,000 $0 $0 $0 $0 $0 139 SUMMARY OF CAPITAL PROJECTS Project N Project Name Project Description VJVv2 05 Sleepy Hollow Sanitary Sewer Sleepy Hollow subdivision is located Northwest of Yost Boulevard and Rehabilitation adjacent to Clear Creek and was originally developed in early 1980's. 2020 2021 This project includes 2,900 LF of F sanitary sewer rehabilitation 2023 2024 replacement due to tneir location In religion to Me street pavement. Project 2020 0&M Impact Budget Budget 2020 2021 2022 2023 2024 $310,000 $40,000 $0 $0 $0 $0 $0 15Ni Tofal 2020 2020 2021 O & M Impact 202320M Budget Budget 2020 2021 2022 2023 2024 $119,348.209 $90,250000 ($8,200) I $435.091 $435,041 $435.041 $435.041 Grand Total 2020 Budget Budget O S M lm of 2020 2021 zozz 202320M $87,111,213 1 $341,00,97 $9,808 $888,438 1 $1,414,832 1 $3,108,323 $8,888,374 140 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. HoteVMotel 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 Transitional 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 True t -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 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 grans, except CDBG. Community Development Block Grant ICDBGI - A fund used to account for revenues and expenditures associated with the Federal Community Development Block Gant. Traffic Improvement - A fund that accounts for resources to be used for traffic improvements based on traffic analysis. Court Juvenile Mana semen[ - Article 102.0174 of the Corte of Criminal Procedures allows a city to collect up N 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 Anicle 45.056 for the same. Municipal Channel IPEGI - Fund created to account for the revenues and expenditures associated with equipment for publicawess 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. 141 HOTEL/MOTEL OCCUPANCY TAX FUND SUMMARY CONVENTION & VISITORS' BUREAU OVERVIEW The Hotel(Motel Occupancy Tax Fund is used to account for revenues realized from hotel occupancy taxes. The City of Pearland's Hotel Occupancy Tax rate is 7%. This is in addition to the 6% Hotel Occupancy Tax imposed by the State of Texas. 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 twelve hotels, total 968 rooms: Best Western, Hampton Inn, La Quints, The Courtyard by Marriott, Comfort Suites, Hilton Garden Inn, candlewood Suites, two Holiday Inn Express's, Sleep Inn & Suites, Springhill Suites and newly opened Horl Suites by Hilton. Fiscal year 2020 revenue is anticipated to be $1,460,800 with occupancy tax revenue of $1,450,000 and total expenditures of $1,101,346. The CVB budget continues to support the mission of marketing, selling and promoting Pearland as a destination. Strategic planning includes advertising, sales, partnerships, media outreach, hosting writers and planners, and co-sponsorship of annual events, such as, Pearland Arts & Crafts on the Pavilion and Opry on the Square. The budget also includes the cost of office rental space at Pearland Town Center, which acts as a Visitor Center. In fiscal year 2019, the CVB planned a $500,000 contribution to the restoration of the Gulf, Colorado, & Santa Fe Railroad Depot in collaboration with the Pearland Historical Society and Citizens Depot Committee once fundraising goals have been met. Fund balance at September 30, 2020 is estimated to be $4,904,028 FY 2018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET REVENUES Hotel/Motel Occupancy Tax 1,597,258 1,450,000 1,450,000 1,450,000 Investment Earnings 70,762 10,800 10,800 10,800 Miscellaneous 36,611 TOTAL REVENUES 1,704,631 1,460,800 1,460,800 1,460,800 EXPENDITURES Salaries &wages 287,932 295,643 289,401 295,798 Materiels & Supplies 89,003 119,000 132,500 127,250 Miscellaneous Services 652,074 614,917 654,942 677,633 Transfers 617,890 665 665 665 Inventory Capital Outlay 500,000 500,000 TOTAL EXPENDITURES 1,64'899 1,530,225 1,577,508 1,101,346 REV OVER/(UNDER) EXP 57,732 (69,425) (116,708) 359,454 BEGINNING FUND BALANCE 4,603,550 4,587,786 4,661,282 4,544,574 ENDING FUND BALANCE $4,661,282 $4,518,361 $4,544,574 $4,904,028 142 COURT BUILDING SECURITY FUND SUMMARY 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, in addition to operating costs. The fund balance at September 30, 2020 is estimated to be $48,708. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Fines & Forfeitures 41,035 43,500 49,800 48,000 Investment Earnings 416 200 800 700 41,451 43,700 50,600 48,700 EXPENDITURES Salaries & Wages 38,507 40,127 29,552 22,448 Materials & Supplies 3,326 3,529 1,608 3,529 Repair & Maintenance 5,500 8,371 8,000 Miscellaneous Services 2,080 1,850 900 1,850 Inventory 6,345 50,258 51,006 40,431 35,827 REV OVER/(UNDER) EXP (8,607) (7,306) 10,169 12,873 BEGINNING FUND BALANCE 34,473 14,332 25,666 35,835 ENDING FUND BALANCE $25,666 $7,026 $35,835 $48.708 143 II CITYWIDE DONATION FUND SUMMARY II 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 2019 expenditures included a new vehicle for the Fire Marshal's Office, partial funding of the Mobile Command Post, and veterinary services, kennel repairs and other miscellaneous expenses for the Animal Sheller. Planned expenditures for FY20 include veterinary expenses for Animal Services. The total fund balance estimated is $54,669 on September 30, 2020, REV OVER/(UNDER) EXP 23,889 IY 2019 IY 2019 IY 2020 FY 2018 ORIGINAL YEAREND ADOPTED 74,712 ACTUAL BUDGET AMENDED BUDGET REVENUES Investment Earnings 1,336 1,000 1,000 1,000 Miscellaneous Donations 31,680 29,967 95,602 29,967 TOTAL REVENUES 33,016 30,967 96,602 30,967 E1(PENDITURES Materials & Supplies 1,423 13,646 13,646 8,700 Buildings & Grounds 3,705 755 755 Repair & Maintenance 4,000 Miscellaneous Services 25,272 25,272 24,800 Inventory Capital Outlay 98,328 TOTAL EXPENDfrURES 9,128 39,673 138,001 33,500 REV OVER/(UNDER) EXP 23,889 (8706) (41399) (2533) BEGINNING FUND BALANCE 74,712 26,683 98,601 57,202 ENDING FUND BALANCE $98,601 $17,977 $57,202 $54,669 144 COURT TECHNOLOGY FUND SUMMARY 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. Fund Balance at September 30, 2020 is estimated to be $13,955. REV OVER/(UNDER) EXP 3,945 FY 2019 FY 2019 FY 2020 FUND BALANCE - BEGINNING FY 2018 ORIGINAL YEAREND ADOPTED FUND BALANCE - ENDING ACTUAL BUDGET AMENDED BUDGET REVENUES Fines 8 Forfeitures 44.138 50,000 56,000 55,000 Investment Earnings 9 3 225 300 TOTAL REVENUES 44,147 50,003 56,225 55,300 EXPENDITURES Materials S Supplies 3,894 3,894 7,494 Repair B Maintenance 32,410 25,000 25,000 40,000 Miscellaneous Services 7,793 9,277 12,000 14,097 Inventory TOTAL EXPENDITURES 40,202 38,171 40,894 61,591 REV OVER/(UNDER) EXP 3,945 11,832 15,331 (6291) FUND BALANCE - BEGINNING 971 (564) 4,915 21 FUND BALANCE - ENDING $4,915 $11,248 $20,246 $13,955 145 STREET ASSESSMENT FUND SUMMARY 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 Peadand 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 $1,199,981 in assessments, leaving a balance at September 30, 2020 of $1,284,935 due, excluding interest. Since the City does not know when the sale or the development of the property might occur, the FY 2020 budget reflects no activity. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Investment Earnings Street Assessments TOTAL REVENUES EXPENDITURES Interfund Transfer TOTAL EXPENDITURES REV OVER/(UNDER) EXP BEGINNING FUND BALANCE ENDING FUND BALANCE $ $ $ $ 146 II PARK DONATIONS FUND SUMMARY II 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 specifc events/progmms/facilities as identified with the sponsorship agreement. Fiscal year 2019 and 2020 expenses are for special events across the Parks programs. Fund balance at September 30, 2020 is estimated to be $70,368. ENDING FUND BALANCE $79,646 $63,878 $64,868 $70,368 147 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Investment Earnings 1,344 2,000 2,000 Donations 242 1,000 255 1,000 Sponsorships 99,136 125,000 105,350 125,000 TOTAL REVENUES 100,721 128,000 105,605 128,000 EXPENDITURES Administration 15,254 16,000 13,332 16,000 Recreation 1,680 1,849 Athletics Senior Center Events 997 1,500 1,500 1,500 Special Events 117,789 105,000 93,702 105,000 Parks 10,000 Recreation Operations 3,632 TOTAL EXPENDRURES 139,352 122,500 120,363 122,500 REV OVER/(UNDER) EXP (38632) SWO (14778) SWO BEGINNING FUND BALANCE 118,278 58,378 79,646 64,868 ENDING FUND BALANCE $79,646 $63,878 $64,868 $70,368 147 TREE TRUST FUND SUMMARY 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 must mitigate. Funds can be used to plant and replace trees in City rights-of-way and in City parks. Fiscal year 2019 and 2020 expenditures include planting of trees, tree trimming, and a tree grant program. Fund balance at September 30, 2020 is estimated to be $276,590. FY 2019 FY 2019 FY 2020 IFY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Tree Trust 290,615 135,408 Investment Earnings 6,465 7,800 7,800 7,800 TOTAL REVENUES 297,080 7,800 143,208 7,800 EXPENDITURES Buildings B Grounds 50,750 60,750 50.750 Inventory 4,100 Capital Outlay 200,000 TOTAL EXPENDrrURES 4,100 50,750 60,750 250,750 REV OVER/(UNDER) EXP 292,980 (42950) 82,458 (242950) BEGINNING FUND BALANCE 144,102 413,217 437,082 519,540 ENDING FUND BALANCE $437.082 $370.267 $519.500 $276.590 148 POLICE STATE SEIZURE FUND SUMMARY 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 2019, funds were utilized to purchase undercover vehicles and the cost of informants. Additional funds were used for part of the Mobile Command Post. In fiscal year 2020 planned expenses are for undercover vehicles and the cost of informants. Fund balance at September 30, 2020 is estimated to be $10,175. EXPENDITURES Materials 8 Supplies 1,600 IFY 2019 IFY 2019 IFY 2020 Repair 8 Maintenance FY 2018 ORIGINAL YEAREND ADOPTED Miscellaneous ACTUAL BUDGET AMENDED BUDGET Capital Outlay 198,764 REVENUES 17,800 37,200 231 37,200 Investment Earnings 3,642 4,000 2,800 4,000 Seizure Funds 37,283 225,097 31,400 43,375 Miscellaneous $245,139 $191,897 $43.375 $10,175 TOTAL REVENUES 40,925 4,000 34,200 4,000 EXPENDITURES Materials 8 Supplies 1,600 16,200 16,200 16,200 Repair 8 Maintenance Miscellaneous 16,200 21,000 21,000 21,000 Capital Outlay 198,764 TOTAL EXPENDITURES 17,800 37,200 231 37,200 REV OVER/(UNDER) EXP 23,125 (33,200) (201,764) (33,200) BEGINNING FUND BALANCE 222,014 225,097 245,139 43,375 ENDING FUND BALANCE $245,139 $191,897 $43.375 $10,175 149 ig9q XwY.]NfH:101 b91ld, I IT, 1s1:vi 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 2019 funds were used to contribute to the purchase of a Mobile Command Post. There are no planned expenses for fiscal year 2020. Fund balance at September 30, 2020 is estimated to be $25,100. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Police Drug Revenue 78,593 75,000 21,900 Investment Earnings 1,299 1,200 2,000 1,200 TOTAL REVENUES 79,892 76,200 23,900 1,200 EXPENDITURES Capital Outlay 129,470 TOTAL EXPENDITURES 129,470 REV OVER/(UNDER) EXP 79,892 76,200 (105.570) 1,200 BEGINNING FUND BALANCE 49,577 83,657 129,470 23,900 ENDING FUND BALANCE $129,470 $159,857 $23,900 $25,100 150 II PARK DEVELOPMENT FUND SUMMARY II 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 2019 major expenditures included community parks that benefit all residents. Those projects included 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. $207,154 is also budgeted from reimbursement from Pearland Independent School District for repairs to the Natatorium. In fiscal year 2020 the projects include replacement of a bridge at Independence Park. Estimated fund balance as of September 30, 2020 is $408,462. 7:1�4i1 ]101:1. Buildings & Grounds FY 2019 FY 2019 FY 2020 Miscellaneous FY 2018 ORIGINAL YEAREND ADOPTED Capitals ACTUAL BUDGET AMENDED BUDGET Transfers 555,000 162,000 REVENUES 689,494 749,154 966,517 250,000 Parkland FeesMonations 964,060 120,000 250,000 120,000 Investment Earnings 17,075 18,000 18,000 18,000 Miscellaneous Reimbursements $1,011,825 $283,094 207,154 $408,462 TOTAL REVENUES 981,135 138,000 475,154 138,000 7:1�4i1 ]101:1. Buildings & Grounds 28,240 39,343 Miscellaneous 6,802 Capitals 134,494 720,914 758,372 250,000 Transfers 555,000 162,000 TOTAL EXPENDITURES 689,494 749,154 966,517 250,000 REV OVER/(UNDER) EXP 291,641 (611,154) (491,363) (112,000) BEGINNING FUND BALANCE 720,184 894,246 1,011,825 520,462 ENDING FUND BALANCE $1,011,825 $283,094 $520,462 $408,462 151 SIDEWALK FUND SUMMARY 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 identdied with the original payments will be constructed out of the City's General Fund annual sidewalk program, when identified for construction. Expenditures in FY 2019 are $4,220 to be used for the Mykawa Road construction. Fund balance at September 30, 2020 is estimated to be $17,646. 152 EY 2018 ACTUAL EY 2019 ORIGINAL BUDGET FY 2019 YEAREND AMENDED EY 2020 ADOPTED BUDGET REVENUES Investment Earnings 97 5 200 200 Sidewalk Revenue 86 5,000 10,000 5,000 TOTAL REVENUES 183 5,005 10,200 5,200 EXPENDITURES Interlard Transfers 4.220 4.220 Either Expenses TOTAL EXPENDITURES 4,220 4,220 REV OVER/(UNDER) EXP 183 785 5.980 5.200 BEGINNING FUND BALANCE 6,283 6,388 8,488 12,448 ENDING FUND BALANCE $8,486 $7,173 $12,446 $17.646 152 GRANT FUND SUMMARY OVERVIEW The FY 2019 Grant Fund expenditures totaled $270,765. These included $134,014 from the second of a two-year Victims of Crime Act (VOCA) grant from the Office of the Governor - Criminal Justice Division (CJD) and two years of funding from the U.S. Department of Justice totaling $26,300 for police equipment. Additional expenditures include $46,641 in personnel costs from FEMA's Emergency Management Performance Grant (EMPG) program, administered by the Texas Division of Emergency Management, and $11,000 in training and professional development grant funds provided through the Texas Commission on Law Enforcement (TCOLE). The Fire Department has been advanced $40,000 from the National Development Research Association (NORA) for professional development expenditures, in exchange for its participation in various vocational studies on firefighters. Expenditures of $12,150 include police overtime for work involving Peadand's participation in high-intensity drug trafficking area programs. An unfunded expense of $660 is incurred for administrative costs involving the City's Grants & Special Projects Administrator. Revenues for FY 2019 total $270,180, which include the $270,105 in grant -funded awards, plus $75 in interest income. The budget includes $293,094 in expenditures for two (2) years of funding, for two (2) Crime Victim Liaisons in the Police Department (CVL), funded by the continuation of a Victims of Crime Act (VOCA) grant award provided by the Office of the Governor - Criminal Justice Division (CJD), as well as the anticipated continuation of $46,641 in Emergency Management Performance Grant (EMPG) funds through the Texas Division of Emergency Management. The City will also receive $11,000 in training funds from the Texas Commission on Law Enforcement (TCOLE). Including a small administrative expense of $660, the expenditures for FY 2020 total $351,395. Revenue for FY 2020's Grant Fund totals $350,810, which includes grant -funding and $75 in interest income for the year. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Grant Revenue 295,928 58,791 520,744 350,735 Investment Earnings 2,393 75 1,877 75 TOTAL REVENUES 298,321 58,866 522,621 350,810 EXPENDITURES Salaries & Wages 164,816 58,791 192,805 339,735 Materials & Supplies 99,000 3,135 Miscellaneous Services 23,922 51,660 11,660 Transfers 200,000 Inventory Capital Outlay 27,639 26,300 TOTAL EXPENDITURES 515,377 58,791 273,900 351,395 REV OVER/(UNDER) EXP (217,056) 75 248,721 (585) BEGINNING FUND BALANCE 143,777 147,692 (73,279) 175,442 ENDING FUND BALANCE $(73,279) $147,767 $175,442 $174,857 153 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND SUMMARY 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 2019 CDBG expenditures totaled $785,617, and included housing rehabilitation, code enforcement activities, improvements involving the replacement of waterline utility infrastructure and construction of a new facility at a local social service agency. Some of the specific highlights include $23,500 for emergency rental and utility assistance in the form of a subaward to the Peadand Neighborhood Center, and a $35,000 allocation to Counseling Connections for Change for mental health counseling and a collaborative student services initiative with Peadand Independent School District (PISD). A total of $109,828 was spent to provide materials for replacement of Transile waterlines in the City's Old Townsite, with an additional $118,250 awarded to the Forgotten Angels Foundation to construct a 4,000 square foot vocational training facility at its Day Hab Center. Program administration expenditures totaled $78,000 and unprogrammed/unspent funding for infrastructure improvements pending completion will be carried over for use in fiscal year 2020. The 2020 fiscal year allocation of CDBG funding totals $429,719. Of that amount, the City's available allocation for general program administration is $85,943, which is 20% of the CDBG annual allocation for fiscal year 2020, and the public services capped allocation totals $64,457 (15% of the total allocation). The remainder of funding will be spent on code enforcement activities, and several local public facility improvements involving City -owned property and various social service agencies. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Grant Revenue 243,356 390,001 784,677 429,719 TOTAL REVENUES 243,356 390,001 784,677 429,719 EXPENDITURES Salaries & Wages 36,210 54,405 55,685 83,243 Materials & Supplies 10 100 110,100 Repair & Maintenance Miscellaneous Services 79,275 105,200 105,200 82,157 Capital Outlay 78,858 23,296 514,632 264,319 TOTAL EXPENDITURES 194,353 390,001 785,617 429,719 REV OVER/(UNDER) EXP 49,003 (940) BEGINNING FUND BALANCE 49,003 49,003 48,063 ENDING FUND BALANCE $69,003 $69,003 $48,063 $48.063 154 TRAFFIC IMPROVEMENT FUND SUMMARY 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 mi igate 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 specific projects can be incorporated into a City project. Anticipated fiscal year 2019 revenues total $11,200 and expenditures of $1,141 to be used for Mykawa Road Extension. Fiscal year 2020 revenues total $11,000. The fund balance at September 30, 2020 is estimated to be $619,247 of which, $214,920 is for future expansion of County Road 58 with the balance of the fund balance obligated for a few other miscellaneous projects. REVENUES Miscellaneous Investment Earnings TOTAL REVENUES EXPENDITURES Miscellaneous Services Transfers TOTAL EXPENDITURES REV OVER/(UNDER) EXP BEGINNING FUND BALANCE ENDING FUND BALANCE 8,460 7,500 11,200 11,000 8,460 7,500 11,200 11,000 93,548 91 1,141 1,141 (85,088) 6,359 10,059 11,000 683,277 597,929 598,188 608,247 $598,188 $604,288 $608,247 $619,247 155 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Miscellaneous Investment Earnings TOTAL REVENUES EXPENDITURES Miscellaneous Services Transfers TOTAL EXPENDITURES REV OVER/(UNDER) EXP BEGINNING FUND BALANCE ENDING FUND BALANCE 8,460 7,500 11,200 11,000 8,460 7,500 11,200 11,000 93,548 91 1,141 1,141 (85,088) 6,359 10,059 11,000 683,277 597,929 598,188 608,247 $598,188 $604,288 $608,247 $619,247 155 COURT JUVENILE MANAGEMENT FUND SUMMARY 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, 2020 is estimated to be $51,142. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Fines 8 Forfeitures 60,315 62,000 80,000 72,500 Investment Earnings 409 200 1.100 1.000 TOTAL REVENUES 60,724 62,200 81,100 73,500 EXPENDITURES Salaries B Wages 52,036 56,354 57,883 61,870 Materials 8 Supplies 709 1.530 2.326 1,460 Miscellaneous Services 884 3,560 3,569 3,955 TOTAL EXPENDITURES 53,628 61,444 63,780 67,285 REV OVER/)UNDER) EXP 7,096 756 17,320 6,215 BEGINNING FUND BALANCE 20,511 21,101 27,607 44,927 ENDING FUND BALANCE $27,607 $21,857 $41,927 $51,142 156 MUNICIPAL CHANNEL (PEG) FUND SUMMARY 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 Stale 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. Fiscal year 2019 expenditures include office furniture, 360 video camera, DSLR camera, drone, servers, and encoder. Expenditures for fiscal year 2020 include studio furniture, studio lighting, AV maintenance, digital signage, TV production van, video editing work station, and complete council chambers AV room. Fund balance at September 30, 2020 is anticipated to be $824,318. REV OVER/(UNDER) EXP 172018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAREND AMENDED FY 2020 ADOPTED BUDGET REVENUES 600,718 669,187 757,050 843,418 Franchise Fees 260,430 275,000 265,000 265,000 Investment Earnings 12,193 10,000 20,000 20,000 Miscellaneous TOTAL REVENUES 272,623 285,000 285,000 285,000 EXPENDITURES Materials & Supplies 13,649 21,600 17,600 21,600 Repair & Maintenance 13,543 24,300 20,800 27,500 Miscellaneous Services 2,229 10,000 10,000 10,000 Inventory 35,339 57,500 65,000 45,000 Capital Outlay 45,000 85,232 200,000 Transfers Out 51,531 TOTAL EXPENDITURES 116,291 158,400 198,632 304,100 REV OVER/(UNDER) EXP 156,332 126,600 86,368 (19100) BEGINNING FUND BALANCE 600,718 669,187 757,050 843,418 ENDING FUND BALANCE $757,050 $795,787 $843,418 $824,318 157 REGIONAL DETENTION FUND SUMMARY 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 $148,891 was transferred in fiscal year 2018 and $29,715 in 2019 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 2020. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Charges for Services 148,289 26,502 Investment Earnings 607 49 TOTAL REVENUES 148,897 26,551 E)(PENDITURES Transfers 148,891 29,715 TOTAL EXPENDfrURES 148,891 29,715 REV OVER/(UNDER) EXP 6 (3,164) BEGINNING FUND BALANCE 3,158 3,164 ENDING FUND BALANCE $3,164 $ $ $ 158 LOWER KIRBY URBAN CENTER FUND SUMMARY 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 Peadand 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. Financing by District, I'de to date, is as follows: LKPMD PMMD Regional Detention (R2014-25) 1,598,149 612,292 Hooper Rd (R2014-119 & R201640) 5,233,602 Kirby Ditch (R2015-136 & R2015-203) 1,919,796 South Spectrum (R2015-147) 119,462 94,676 North Spectrum (82015-204) 250,000 LK TxDOT Dtch(R20IMl) 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 LK Beltway 8 Water Line (R2018-185) 240,000 LK Beltway 8 Water Line (R2018-185) 32.097 $10,842,0009 $2,320,346 FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Investment Earnings 1,033 Intergovernmental 3,829,496 441,518 TOTAL REVENUES 3,829,496 442,551 EXPENDITURES Intergovernmental 3,577,346 189,368 Transfers 1,033 TOTAL EXPENDITURES 3,577,346 190,401 REV OVER/(UNDER) EXP 252,150 252,151 BEGINNING FUND BALANCE (252150) (252291) (0) 252,150 ENDING FUND BALANCE $ $(252,291) $252,150 $252,150 159 THIS PAGE INTENTIONALLY BLANK 160 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 Peadand has three 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. 161 PROPERTY/LIABILITY INSURANCE FUND SUMMARY 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 accounts for the annual premiums and accounts for insurance recovery funds on eligible claims. Premiums for fiscal year 2020 total $1,443,460 which amounts to a $70,848 increase from FY19 projected premiums. The FY20 Budget also includes $20,000 for an assessment of the COys Schedule of Values, which is used to calculate premiums. Fund balance at September 30, 2020 is estimated to be $73,718. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Transfers 665,000 1,333,275 1,160,000 1,503,381 Insurance Recovery 548,612 100,050 120,000 175,000 Interest 7,689 100 7,000 3,000 TOTAL REVENUES 1,221,301 1,433,425 1,267,000 1,681,381 EXPENSES Salaries & Benefits 42,765 54,897 52,755 60,273 Materials & Supplies 4,366 5,050 4,950 4,300 Insurance Premiums 1,135,017 1,281,262 1,372,612 1,443,460 Claims 184,793 100,050 175,000 183,750 Miscellaneous Services 20,000 Capital Outlay 28,858 Transfer Out 38 TOTAL EXPENDITURES 1,366,940 1,441,259 1,634,175 1,711,821 REV OVER/(UNDER) EXP (145.639) (7.834) (347,175) (30.440) BEGINNING NET ASSETS 596,973 150,437 451,333 104,158 ENDING NET ASSETS $451,333 $142,603 $104,158 $73,718 162 MEDICAL SELF-INSURANCE FUND SUMMARY OVERVIEW The Medical Self Insurance Fund was created to account for the activities of the Citys 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. Effective October 2018, the city adopted unblended retiree medical rate and subsidizes based on age and years of service at retirement. For FY20 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 to use $163,023 of fund balance in FY20. As In previous years, $25,000 has been budgeted for the Wellness Program. The estimated fund balance as of September 30, 2020 is $3,163,345, or 38% of total expenditures. FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Interest Income 41,123 20,000 74,528 74,528 Contributions - Employee 1,116,256 1,249,775 1,309,752 1,384,793 Contributions - City 6,053,301 6,224,073 6,478,787 6,581,860 Retiree and Cobra Contributions 44,766 60,000 60,000 60,000 Miscellaneous 132,325 211,432 166,973 166,849 TOTAL REVENUES 7,387,771 7,765,280 8,090,040 8,268,030 EXPENSES Administrative Fees 1,012,622 1,045,962 1,018,149 1,221,536 Claims 5,732,762 6,589,708 6,666,377 7,154517 Miscellaneous 81,058 111,609 112,518 55,000 TOTAL EXPENDITURES 6,826,412 7,747,279 7,797,044 6,431,053 REV OVERI(UNDER) EXP 561,330 18,001 292,996 (163023) BEGINNING NET ASSETS 2,472,042 3,033,372 3,033,372 3,326,366 ENDING NET ASSETS $3,033,372 $3,051,373 $3,326,368 $3,163,345 NET ASSETS AS%OF EXPENSES 41% 39% 41% 38% FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET Number of Employees on Medical Insurance: 596 613 628 643 Coy -Paid Contributions per Employee: $ 1,873 $ 2,039 $ 2,086 $ 2,154 Employee -Paid Contributions: $ 10,157 $ 10,153 $ 10,317 $ 10,236 Total Contributions per Employee: $ 12,029 $ 12,192 $ 12,402 $ 12,390 Claims Paid per Employee: $ 9,619 $ 10,750 $ 10,615 $ 11,127 163 MEDICAL SELF INSURANCE FUND SUMMARY Revenues vs Expenditures $14,000 MOD0 $10,000 $8,000 $6,000 $4,000 $2000 5- Actual Actual Actual Original Amended Adopted FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 •Revenue mExpenditures Contributions vs Claims Per Employee Actual Actual Actual Original Amended Adopted FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 ■Total Contributions per Employee ■ Claims Paid Per Employee 164 MOTOR POOL FUND SUMMARY 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 tum, the City then uses the balance in the Fund to pay for large -dollar investments. The Fleet Maintenance Division is responsible for day -today 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. Lease fees for any vehicle replaced in FY19 will begin in FY20, which totals $450,755. Estimated fund balance as of September 30, 2020 is $602,439. REVENUES Investment Earnings Sale of Property Transfer in Repair& Maintenance Transfer in Lease Payments TOTAL REVENUES EXPENDITURES Salaries & Wages Materials & Supplies Buildings & Grounds Repair & Maintenance Miscellaneous Services Capital Outlay Special Equipment Capital Outlay Construction Equipment Capital Outlay Vehicles TOTAL EXPENDITURES REV OVER/(UNDER) EXP BEGINNING NET ASSETS FY 2019 FY 2019 FY 2020 FY 2018 ORIGINAL YEAREND ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Investment Earnings Sale of Property Transfer in Repair& Maintenance Transfer in Lease Payments TOTAL REVENUES EXPENDITURES Salaries & Wages Materials & Supplies Buildings & Grounds Repair & Maintenance Miscellaneous Services Capital Outlay Special Equipment Capital Outlay Construction Equipment Capital Outlay Vehicles TOTAL EXPENDITURES REV OVER/(UNDER) EXP BEGINNING NET ASSETS 20.000 62.025 540.414 62,025 ENDING NET ASSETS $ $20,000 $62,025 $602,439 165 25,000 40,000 20,000 44,258 50,000 2,162,484 2,170,684 1,556,626 1,536,756 2,645,564 2,640,048 3,719,240 4,885,506 4,286,674 436,651 430,788 450,430 39,500 37,500 36,924 36,000 36,000 22,000 1,640,833 1,640,833 949,413 9,500 17,700 28,200 715,815 1,285,911 291,818 90,000 350,000 730,941 1,374,749 1,617,475 3,699,240 4,823,481 3,746,260 20.000 62.025 540.414 62,025 ENDING NET ASSETS $ $20,000 $62,025 $602,439 165 THIS PAGE INTENTIONALLY BLANK 166 COMPONENT UNITS The City of Pearland has three entities that are considered component units of the City. They are the Peadand Economic Development Corporation (PEDC), Pearland Tax Increment Reinvestment Zone #2 (TIRZ), and the Development Authority of Peadand. 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 167 PEARLAND ECONOMIC DEVELOPMENT CORPORATION FUND SUMMARY OVERVIEW The Peadand Economic Development Corporation (PEDC) is a non-profit Type B Corporation under the Texas Development Corporation Act. The Corporation was approved by the voters in 1995 and is primarily funded by a haff-cent sales tax. The seven -member Board of Directors is appointed by and serve two-year terms at the pleasure of the Pearland City Council. City Council approval is required for annual budgets and bonded debt issuances. The mission of PEDC is to enhance our community's economic vitality through the attraction, retention and expansion of primary employers. PEDC operates under State requirements for pursuit of those primary jobs. PEDC works to ensure our business climate and built environment strongly support these efforts by focusing on aesthetics, infrastructure, quality of fife, image, workforce and quality development and redevelopment of key Peadand districts and corridors. Outstanding debt was substantially defeased in FY 2019. Many multi-year projects such as, SH 288 and SH 35 corridor enhancements take years to develop and complete. Fund balance at September 30, 2020 is estimated to be $6,747,037. 168 FY 2018 ACTUAL FY 2019 ORIGINAL BUDGET FY 2019 YEAR END AMENDED FY 2020 ADOPTED BUDGET REVENUES Sales Tax 11,177,690 11,131,486 11,131,486 11,354,116 Interest Income 304,643 86,895 460,000 250,000 Intergovernmental 3,589,346 12,000 636,517 571,000 Miscellaneous 532,710 500,000 472,000 568,000 TOTAL REVENUES 15,604,389 11,730,381 12,700,003 12,743,116 EXPENSES Operating 1,724,532 2,919,606 2,411,298 2,712,617 Bond Payments 1,229,500 13,616,503 11,307,132 291,300 Inventory 5,000 5,000 5,000 Capital Outlay 552,659 746,000 765,000 95,000 Transfers Out 4,918,673 9,133,742 10,133,459 14,448,979 Incentives 586,526 1,336,890 1,245,230 2,408,890 TOTAL EXPENDITURES 9,011,890 27,757,741 25,867,119 19,961,786 REV OVERI(UNDER) EXP 6,592,499 (16,027,360) (13,167,116) (7,218,670) BEGINNING FUND BALANCE 20,540,324 22,933,932 27,132,823 13,965,707 ENDING FUND BALANCE $27,132,823 $6,906,572 $13,965,707 $6,747,037 168 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 Peadand's economic base and facilitate the expansion and retention of existing Pearland businesses. Design and execute effective marketing strategies that ensure Peadand'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 Peacand'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. • Opened 28 business attraction projects and conducted 26 visits with potential primary employers. Endress+Hauser, a leader in the field of measurement technology for industrial process engineering, broke ground on its Gulf Coast Regional Headquarters in 2019. The project will employ 100 workers and is expected to bring approximately $32 million in investment to the community. In addition, CAT Energy Rental Solutions began construction on its new facility on Rice Drier. The new 40,000 square foot headquarter and warehouse and repair facility in Peadand will employ 55. • Opened 11 business retention and expansion projects and conducted 100 visits with existing employers. Announcements included Dover Energy's addition of a new 12,000 square foot innovation lab at its facility. Lonza also expanded operations by constructing a 12,000 square -foot laboratory space in its existing building and is also preparing to add an additional parking lot. Wilmer Oleo North America announced that it will be expanding its presence in Pearland and have renewed its lease in the Pearland Town Center. PEDC is also working with CSI to expand their packing lot by 30 spaces to accommodate job growth at their facility. Merit Medical is also increasing its parking lot to accommodate more job growth at their facility. • Opened 11 new development/redevelopment projects, including the development of a new business park on Main Street. The Modern Green Ivy District project continues to move forward and has constructed Promenade, South Spectrum streets and the internal streets and utilities in the development. Modem Green has completed the design and bid 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 and will begin construction soon. 170 ♦ Continued the implementation of City Gateway Beautification Strategy. Construction has been completed on the entryway monument at the east end of Broadway/FM518. • The SH 35 Redevelopment Strategy 8 Streetscape project continues to move forward. The contractor is nearing substantial completion on the streetscaping project. All landscaping has been completed, along with the installation of pavers, tree grates and the 24" entryway signs at Beltway 8. All that remains are the 18' Peadand signs to be installed at the 518 intersection and the stone to be placed on the seat walls. The project is projected to be complete at the end of 2019. • 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 installation of sculpture foundations for the new sculpture design and the procurement of plant material for the project. In addition, we worked to add the planting and irrigation work for the center median to the Harris County section of the project. ♦ 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 drainage 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 Peadand Municipal Management District #1 (PMMD#1). Engineers continue to have discussions with Harris County Flood Control. • Began the development of a new economic development strategic plan for Peariand, including convening a steering committee of public, private and non-profit leaders to guide the process. The research and input phase for the new plan took place in June and included focus groups, individual interviews and an online public survey that garnered more than 2,300 responses. We have also completed a Community Assessment, along with an Implementation Assessment of the Pearland 20/20 Community Strategic Plan. The new economic development strategic plan is scheduled to be completed by the end of 2019. • Recruit new primary employers to the community. ♦ Reach out to existing targeted primary employers to help, including expansion assistance, access to local and state resources and regulatory compliance. • Aid 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 Management Districts on the design and censtruction of South Spectrum Boulevard to complete a four -lane boulevard roadway connection from SH288 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 BW 8, including a gateway entry at Clear Creek and corridor aesthetics. • Continue implementation of the SH 35 Redevelopment Strategy Catalyst #2, Business Park North, by completing design and bidding of the Rice Drier Road Reconstruction project and working with developers on other projects in the corridor. • Complete the Broadway development master plan. Initiate and complete the master plan, including communication plan, and stakeholder, public input, and agency coordination meetings, with an emphasis of the plan on mitigating the impact on the corridor of TXDOTs proposed reconstruction 171 project ♦ 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. • Coordinate the development of a new economic development strategic plan for the community, including the completion of a community assessment, an implementation assessment of the Pearland 20/20 strategic plan, the new strategic plan and implementation guidelines for the plan. • Continue implementation of the community marketing campaign to increase awareness and promotion of Pearland and its assets, including the promotion of the digital brand hub using both existing communication channels and a paid digital media campaign. • Continue exploring the concept of developing an indoor amateur sports facility. • Continue exploring potential private partner opportunities for the development of a hotel+ conference center. PEARLAND ECONOMIC DEVELOPMENT CORPORATION FUND PEDC New Projects By Industry Other (Non -Target Industry) Manufacturing[Warehouse Business Professional Services Energy Life Science/Healthcare 0 5 10 15 20 02019Aclual 02020Target PERFORMANCE MEASURES FY 2017 FY 2018 FY 2019 FY 2020 Actual Actual Actual Target Number of announced projects 10 5 7 10 Number of new projects 55 52 56 50 Number of visits 164 149 149 170 172 PEARLAND ECONOMIC DEVELOPMENT CORPORATION FUND DEBT TO MATURITY Year Principal Interest Total 2020 250,000 41,300 291,300 2021 250,000 35,400 285,400 2022 250,000 29,500 279,500 2023 250,000 23,600 273,600 2024 250,000 17,700 267,700 2025 250,000 11,800 261,800 2026 250,000 5,900 255,900 TOTAL $1,750,000 $165,200 $1,915,200 Principal Amount Series Outstanding Series 2016 1,750,000 TOTAL $1,750,000 Debt to Maturity $300,000 $290,000 $280,000 $270,000 $260,000 $250,000 $240,000 $230,000 $220,000 2020 2021 2022 2023 2024 2025 2026 oPrincipal ❑Interest 173 THIS PAGE INTENTIONALLY BLANK 174 CITY OF PEARLAND, TEXAS COMPREHENSIVE FINANCIAL MANAGEMENT POLICY STATEMENTS ADOPTED SEPTEMBER 2011 REVISED NOVEMBER 2018 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, maintain transparency, and good stewardship of public resources. The individual statements contained herein serve as guidelines for both the financial planning and internal financial management of the City. These Policy Statements are subject to State law and the City Charter. 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 slatements safeguard the fiscal stability required to achieve the City's objectives and ensure long-term financial health. OGlecthes 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. 176 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 Accounfing Standards Board (GASB), the authoritative standard setting body for units of local government. All City financial documents, except interim financial reports, Including official statements accompanying debt Issues. Comprehensive Annual Financial Reports and continuing disclosures statements will meet these standards. B. Financial and Management Reporting 1. Interim Financial Reports will be provided monthly andlor quarterly to management and City Council Met explain key economic and fiscal developments and note significant deviations from the budget. These reports will be distributed by the end of each month for the prior month. 2. As an additional independent confirmation of the quality of the City's financial reporting, Me City will annually seek to obtain the Government Finance Officers Association Certificate of Achievement far Excellence in Financial Reporting. C. AnnualAudit 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 has performed by candied public accounting (CPA) fine, licensed to practice in the State of Texas. The annual financial statement, including Me 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 Me 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 Me 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 1Sci the City will provide certain annual financial information to various information repositories through disclosure documents or set of documents Mat include the necessary information. This will include any periodic materials event notices as required by Me 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 Me City Secretary, or the Director of Finance, or one member of Council. Signatures shall Ise 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 Me board, where applicable. Component unit's checks shall also have Was, signatures. E. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed 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 approved by City Council and/or the City Manager. 176 BUDGET AND LONG RANGE FINANCIAL PLANNING A. Balanced Budget The City shall annually adopt a balanced budget where annual revenues plus other means of financing such as fund balance are equal to, or exceed, operating expenditures. Any Increase In expenses, decrease in revenues, or combination of the two that would result in a budget imbalance will require budget revision, rather than spending unappropriated surpluses or designated reserves to support ongoing operations. All budget revisions will require the vole and approval of City Council before any additional spending of City funds. Any year end operating surpluses will revert to unappropriated balances for use in maintaining reserve levels set by policy and the balance will be available for capital projects and/or -non-recurring' expenditures. 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 budgetedlused 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. Property Tax Rate The City Manager will recommend a property tax rale that the City finances require in order to operele 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 To ensure that the City does not become overly reliant on sales tax revenue for operating needs, a transfer from General Fund sales tax to fund pay-as-you-gc capital projects will be budgeted with a target of 10% of the annual General Fund budgeted sales tax, when it is financially feasible or 25% of the over policy dollars. The long-term goal is to adequately fund rehabilitation through ongoing maintenance versus debt financing. The transfer from the City's General Fund and the City's Utility Fund to fund payors -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 on year service changes. 2. The City whenever possible, will seek outside sources of revenue, such as federal, state, and local grants, in order to leverage local dollars. 177 3. Estimates from grant sources will bas projected only to the specific date on which the entitlement will end. 4. The Utility Fund water and wastewater revenues will be budgeted based an 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, Ment Pool, and Police Step Increases The budget shall include an amount adequate to cover salary increases such as performance, merit pool, police step increase and cost of living adjustment. This amount will be calculated for each fund, based on budgeted salaries for the year. In addition, funds may be budgeted when appropriate, to bang identified jobs up to market salary rales. 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 signRc aunt financial impacts should be withheld until they can be made in the full context of Me annual budget process and long-range plan, unless unforeseen circumstances present themselves. 4. Annually, Me City will seek to obtain Me Government Finance Officers Associate Distinguished Budget Presentation Award. The Budget will be presented in a way Mal not only meets the criteria of Me award, but also clearly communicates the budget to Me 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 Me 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 Me 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 ex ienditureslexpenses 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 butlgets. 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 Me 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 salary increases • Use of fund balance • Use of volunteers • Increase fees • Reduce work hours with subsequent reduction in pay 178 Eliminate positions which may require layini employees ff there are no other vacant pastiche for which they are qualified. Short-term loans as a means to balance the budget shall bus avoided. The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating defick, 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 multiyear 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 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. Commitmentslobligations 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 Comprehensive 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, transited! and sufficient revenue stream M 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, Me City shall recover the costs of those services through property and sales taxes. 2. Ata minimum, the City will strive to cover direct costs. 3. User fees should be reviewed annually and adjusted as deemed necessary in order to avoid sharp Mangos. 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. 179 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 wadding capital. 2. The City may set a different fee for residents versus non-residents. 3. The multi-year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate change considerations. 4. When necessary, the multi-year Financial Plan (rate model) will be built around small rate increases annually versus higher rate increases periodically. D. One-Tima/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 rales for all revenues by monitoring monthly receivables. The City shall folbw an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers antl 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 interim financial report. (See Financial and Management Reporting.) F. Write -Off of Uncollectible Receivables (excludes property taxes, court lines 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. It. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken. 2. Accounts shall be writierl annually near year -and. Upon approval, accounts will be forwarded to a credit reporting agency. 3. The wrli of uncollected accounts Is a bookkeeping entry only and does not release the debtor from any debt owed to the City. N. 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 minimae 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. Initial contract terms shall be limited to three (3) year. Renewal terms shall be limited to two (2) one-year renewals following the original term, with a maximum contract of five (5) years in duration. Upon the expiration of the term of a contract (including renewal terms), the City shall obtain competitive 180 pricing for the goods and services in accordance with its Purchasing policies. Contracts exceeding five (5) years in duration may be warranted for certain unique goods, services or commodities; however any contract exceeding free (5) Were in duration shall require approval by a super -majority of City Council. 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 2-3 months of the total operating expenditures of the General Fund. R the fund balance exceeds this amount, funding non-recurring expenditures or funding Pay-as-youi capital projects in the following fiscal year may be used to draw down the balance. B. Water/Sewer Unobserved 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 3 months (25%) of the current year's budget appropriation for total operating expenses. The cash operating reserve is derived by dividing the total cash equivalents balance by total operating expenses. C. Use of Fund BalanceMorking Capital Fund balanceMorking Capital shall only be used for emergencies, non-recurring expend0ures/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 requesVdecision to utilize said balances. 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/L'ability Insurance Fund accounts for uninsured and deductible claims for the Citys 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 Me 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 Man 10% of budgeted sales tax revenues. H. Water/Sewer Revenue Debt Coverage Reserves Revenues shall be maintained at 1.4 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 Appropriation Pursuant to Me City Charter, a provision shall be made within the annual budget for a contingency account in an amount not more than one percent of the General Fund expenditures to be used in case of unforeseen items of expenditures. 181 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. • Nonspendi le: 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 Hems, and long-term receivables. • Restricted: Amounts for which constraints have been placed on the use of resources eller (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 Forteitures/Seizures, Falkland, Detention, Sidewalk, Tree Trust, and Park and City -Wide Donation revenues, , 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 fine City Council removes or changes the specified use by taking the same type of action that was employed when Me funds were initially committed. • Assigned: Amounts that are constrained by the City's intent M 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. Commitment of Fund Balance: • The City Council is fine 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 Me 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 Me individual circumstances. VI. CAPITAL EXPENDITURES AND IMPROVEMENTS Annually review and monitor the state of the City's capital equipment and Infrastructure, setting pull 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 Me date of acquisition or significantly extend the useful life of the existing asset and 182 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 go.: 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 %ems will be maintained to ensure proper stewardship of public property. Five -Year Capital Improvement Plan (Cli 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 plant1facilitieslinfrastructure 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. 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. 5. 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 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. Z. 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. Infrastructure Evaluation and ReplacemenNRehabilitation 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 minimae future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth. 1. High priority should be given to replacinWrehabilitating 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. 183 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 though the annual budget process, within the resources available each fiscal year. A simply of funding options will be explored, including but not limited to cash on hand and leaselpurchase, 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 am set forth in the Debt Policy Statements. F. Pay -As -You -Go Capital Improvements t. 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 rale impacts on Portland citizens. 2. The City will seek out and use intergovernmental funding sources for capital improvements in order W leverage City funding and to minimize property and utility rate impacts. G. Capital Improvementa/Projecf Reporting A summary/status report on Me City's various capital projects will be prepared monthly and avallable to the City Manager and to City Council. Financial Reports on the City's CIP funds will Its prepared monthly and include budget -to -actual for each project as well as list of major contracts, expense to data, and project balances. VII. DEBT Establish guidelines for debt financing that will provide needed facil@ies, 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 terminal 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 Pond 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. 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 lax 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 madret 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 am secured by a promise to levy taxes in an amount necessary to pay annual debt service. 184 a. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond preposition. 2. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public worlds 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 Citys capital dost for a community improvement. d. The City may issue CO's for projects when there is no other adequate funding source available bi e.. GO or developer funding), fine project is determined to be in fine best interest of the City, and where a determination is made Nat 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 fi 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 Me City's rate structures for Enterprise Funds will be made as necessary to maintain Me 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 20 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 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 maddet 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. 186 2. The total dollar amount of bond election propositions recommended to the voters should typically not exceed the Citys 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 markettinterest rate timing, if the interest rate environment or markelleconornic tartars 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 racemmend 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 revea is stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices. 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 recerdkeeping 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 readable 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 worded 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 Me highest possible yield. A. Investment Management 1. All aspects of casNinvestment management shall be designed to ensure safety and integrity of the City s financial assets. 2. Cash/Investment management actrYfiies shall be conducted in full compliance with prevailing local, state, and federal regulations. 186 3. The City will utilize competitive quotes from approved brokerldealers, 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 cashMvestment 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. 6. Investments of Me 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 Peadand 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. Arbrtmge 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 rebalable eamings 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 Cily s depository annually to include but not be limited to earnings, assets, capital, and liquidity. 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 Me requirements of the collateral agreement. Collateral shall not be released until the replacement collateral has been received, it 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. X. GRANTS AND INTERGOVERNMENTAL REVENUES The City will seek, apply for, and effectively administer federal, state and local grants, which support the Cilys current priorities and policy objectives. The City should lake 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 grunts that are consistent with the objectives and high priorities identified by Council and management. 2. Grant funding will bus considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs and services. 187 3. The potential for incurring ongoing costs, to include assumptions of support for grand -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 it. The increased cost to be locally funded upon termination of the grant 2. All grant agreements will be reviewed by Me 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. 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 projectons, if the City can fund the local match required. 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 grand 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. 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 lint had 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 ol'Audifors 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 fine 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 to ensure that the Citys financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of the audit firth will be based upon the proposals received, the qualifications of the firm, and the firm's ability to perform a quality audit. However, Ifthrough 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. tae B. Arbitrage 1. The City shall calculate positiveinegative 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. 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. 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 attomeys 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. 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 t. The City issues various types of securities to finance ds 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 she 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 Me necessary expertise in a broad range of services, the City will use a consultant for these services. 2. A contract may be renewed after a compet0ion process in which the Council determines Mat continuation with the incumbent firm is in the best interest of the City. F. Depositary 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 cosbeffia a banking services available. 189 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 Peadand 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 Me Council a proposed budget, which budget shall provide a complete financial plan for the fiscal year and shall contain the following: (a) Abudget 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 rales. (6) 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 rale of interest, date of issue, maturity date, and amount authorized, amount issued and amount outstanding. (1) 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 Me duties of City Secretary, submitted to the Council and shall be a public record. SECTION 8.06- Notice of Public Hearing on Budget (Amended 5/1911014): In accordance with stale law, the City Council shall cause to be published in the official newspaper of the City of Pearland a notice of the hearing selling forth the date time and place of the public hearing on the submitted budget. 190 SECTION 8.07- Public Hearing on Budget: At the time and place set for0r 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 far or against any item or amount of any item therein contained. SECTION 8.08 - Proceedings on Budget After Public Hearings /Amended 5119120141: 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"W0141: 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 Me City Council fail to so adopt a budget, Me then exisfing budget, together with Its tax levying ordinance and Its appropriation ordinance, shall be deemed adopted for the ensuing fiscal year. SECTION 8.11 - Effective Data of Budget: Certification: Copies Made Available (Amended `.d19a014h 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 Me person performing Me 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 staled 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 Taz: 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- Continuant Appropriation: (Amended 51IM014) 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 Me control of Me 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 Accounfing or some other nationally accepted classification. SECTION 8.16 - Emergency Appropriations (Amended W119901: 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 mourning requirements, to protect the public health, safety or welfare. Such appropriations shall be by ordinance adopted by the majority vole of the Council members at one (1) special or regular meefing. 191 SECTION 8.17- PurchaseProcedure, (Amended4/1511974,4/5/1982) 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 polities 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 contact for expenditures without turner approval of the Council for all budgeted items the cast d which does not exceed the constitutional and statutory requirements for competitive bidding. SECTION 8.18 - Disbursement of Funds (Amended 5119/2014): 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 49/84) The City Council shall have Me power, and Is hereby authorized to levy and tolled 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 Sublect to Tax: Rendition. Appraisal and Assessment: (Amended 4P//84) All real and tangible and intangible personal property within the jurisdiction of the City of Peadand not expressly exempted by law shall be subject to annual taxation. The method and procedures for Me rendition, appraisal and assessment of all real and personal property within Me 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 W9184) All taxes due the City of Peadand 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 Peadand and the Property Tax Code of Me State of Texas. SECTION 8.22 - Tax Llens (Amended 8/19/2014)1 (a) Except for such restrictions Imposed by law, Me tax levied by Me 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 Me 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 Chios tax Tian 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 Peadand 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, nm 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. 192 SECTION 8.24- Issuance of Bonds (Amended 41911984): 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 Me power to borrow money on the credit of fire City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited bythe 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) RevenueBonds- TheCity shall have Me 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 Me 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 he 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 M 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. 193 ORDINANCE NO.1563 An Ordinance adopting a tax rate of $0.741212 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 2019. 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 2019 upon all property, real, personal, and mixed within the corporate limits of said City subject to taxation, a tax of $0.741212 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 $0.306778 on each $100 valuation of property, and (2) For the Interest and Sinking Fund, the sum of $0.434434. 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. 194 ORDINANCE NO.1563 PASSED and APPROVED ON FIRST READING this the 16" day of September. A.D., 2019. �. Lz _ ATTEST. '',,�"'muo•^•••• MARIA RODRIGUEZ INTERIM CITY SECRETAR TOM REID MAYOR PASSED and APPROVED ON SECOND and FINAL READING this the 23' day of September, A. D., 2019. l� TOM REID MAYOR ATTEST: - le 0z �.nnn MARIA RODRIGUEZ INTERIM CITY SECRETA APPROVED AS TO FORM: t [ y_ .&F DARRIN M. COKER CITY ATTORNEY 195 ORDINANCE NO.1584 An appropriation Ordinance adopting a budget for the fiscal year beginning October 1, 2019, and ending September 30, 2020, and pay plans for fiscal year 2020. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's proposed 2019-2020 Budget, attached hereto as Exhibit OK, be adopted in compliance with provisions of Article 8 of the Home Rule Charter of the City of Pearland, Texas which sets forth certain speck requirements as to the City of Pearland, Section 2. That City Council hereby appropriates certain sums, more specifically identified on Exhibit W attached hereto, for the proposed fiscal year 2019-2020 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 2019-2020 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. PASSED and APPROVED ON FIRST READING this the 16° day of September, A. D., 2019. s ^^6yis TOM REID MAYOR ATTEST: io„a+E MARIA RODRIGUEZ INTERIM CITY SECRETAR 196 ORDINANCE NO.1564 PASSED and APPROVED ON SECOND and FINAL READING this the 23' day of September, A. D., 2019. rIATTEST: � MAARIARIARODRIGUEZ INTERIM CITY SECRETA APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY -' „M TOM REID MAYOR 197 EXHBiR A Chyof 9wnandl Fbwl Yawn 20193030 BuCpH Accrued Fuels 200 Gan SBmia-Gemral 39,458,628 BW PEOC Revenue Funds 12,743,116 305 SPBG1 Forel/Morel 1,VOsoo 310 Municipal Cmx Security 48,710 315 CByuide Donation 30.967 320 Caud TeNrwlces, 55,30] 330 considerations 128.OW 331 Tmeimsl ],BCO 335 Padaslanaselepra 4,003 336 Federal Pollre 3.200 3W Park& Morrobon Melopmem 138.003 %5 Sidewalk 51200 350 Gram 35,810 351 Communityarelopmen[ 429.719 360 Traffic impact Improvement 11,400 MS Coni Jocund Management 73,500 330 Municipal Chancel MSKO MO Federal Delentlon - 510 Lauer Xiday 513 Inttmal Soon, Fund 200 PmperryNadYM Insurance 1.01,381 M2 Medical Self Insurance 8,268030 303 mon" Pool 4186.624 BOB Wales andel Se", 60;12]n 550 JUIRe Impose Fee 1,Wd.Wo 551 Water-ImpactFee 2,650,000 552 Sever Impact Fee 2,125.Wo 555 Shadow Creel Impact Fee WWO 565 1999 W &5 Revenue 8016 Sol 206 W& S Revenue Bonds MO 44,672.000 567 Waled Or ndng Boos 200 1041W.Wo 568 W& 5 Gonave Bonds 2021 209 W a 5 Revenue Bonds 2022 SNI WaNr/ rPay As Yw Go 2,910.000 575 MU D 4 Ca Final PmBram sW Gula)prob aFurca Vella Pmlaal 444.8» 5&1 opiadl Projects Cmdel 1,n5,Wo 503 Capbl PmjMSCO 20% 506 Ugbl PmjatsG02W9 31,8D4,626 507 Casual PmjMnGO W20 3B,lW,]40 503 Cassel PmjessGO 2020 23,720,237 503 Consul Pmjem SO 2021 512 Casual Prgema 02021 513 Capital Pr,i R 602022 Expenses MaoNtl Budge 198 40AB95m 19,961)86 1,101,346 35,82] 33,SW 61.591 122,500 250,250 32.200 351,395 429,]19 6].285 304,100 1,]11,820 8.431.053 3,]46.263 56,5]5,666 6,002,525 667,023 300.366 46.3]5.223 1%,W9nm 45,]93,1M 30,738.3% 3,1231.596 1,1M,N3 1.3%,]35 2,046 32,161,962 32,050,398 23,691,769 13,5946% ],400.928 FY20 COP PAY PLAN -10/01/2019 GaIle Minimum Medmt Minimum Cow T61e Most positions use 2080 hours howeverindicates posWons to use 2756 hours in determining hourly rate. 103 $20,415.13 $24,497.55 $30.622.19 LIFEGUARD $9.81 $11.]8 $14.72 104 $21,435.23 $25,72288 $32,153.35 HEAD LIFEGUARD $1081 $12.37 $15.48 106 $23,631.98 528,358.78 $35.448.98 INTERN $11.36 $13.63 $17.04 RECREATION ATTENDANT SUMMER CAMP COUNSELOR WATER SAFETY INSTRUCTOR 107 $24,813.68 $29,]]6.82 $37,221.53 CUSTODIAN $11.93 $14.32 $17.89 108 $26,011 $31,285.58 $39,081.95 FACILITYATTENDANT $12.53 $15.03 $18.79 110 $28)25.41 $34,470.29 $43,088.82 CAMP COORDINATOR $13.81 $16.57 $20.]2 OFFICEASSISTANT POLICE RECORDS CLERK 111 $30,161.63 M,194.36 $45,242.95 ANIMAL SHELTER ATTENDANT $14.50 $17,40 $21.75 CUSTOMER SERVICE REPRESENTATIVE DEPUTY COURT CLERK PARK MAINTENANCE WORKER PERMITCLERK SIGN TECHNICIAN 112 $31,689.56 838,003.2] $47.504.34 CUSTODIAL CREW LEADER $15.23 $18.27 $22.84 CUSTOMER SERVICE REPRESENTATIVEII RECORDS & INFORMATION COORDINATOR 113 $33,253.24 53$904.09 $49,879.86 ACCOUNTS PAYABLE CLERK $15.99 $19.18 $23.98 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 UTILNY MAINTENANCE WORKER 114 $34,91590 $41.89884 $52,373,65 ADMINISTRATIVE ASSISTANT $16.79 $20.14 $25.18 EQUIPMENT OPERATOR JAILER LEGAL SECRETARY 115 $36,661.99 $43.993.68 $54,992.48 HEAVY EQUIPMENT OPERATOR $1].63 $21.15 $26,44 LEADCOURT SECURRY OFFICER QUARTERMASTER 199 FY20 COP PAY PLAN -10/01/2019 200 Amt Positions use 2060 hmm however' indicates posi5ans W use 2756 hours In 6eleanining hourly rale. 116 $38,495.14 $46,193.36 $57,742.91 ANIMAL CONTROL OFFICER $18.51 $22.21 $27.76 BACKFLOW COMPLMCE INSPECTOR BUILDING MAINTENANCE TECHNICIAN CCTV TECHNICIAN CHIEF COURT CLERK CODE ENFORCEMENT I HEALTH OFFICER EXECUTIVE ASSISTANT HE COORDINATOR LEAD BILLING SPECIALIST JUVENILE CASE MANAGER MECHANIC PARK MAINTENANCE CREW LEADER PARK NATURALIST PRE-TREATMENT TECHNICIAN RECREATION SPECIALIST TREATMENT PLANT OPERATOR UTILITY MAINTENANCE TECHNICIAN YOUTH DEVELOPMENT COORDINATOR 117 $40,419.19 $48,50323 $60,629.29 ANIMAL SHELTER SUPERVISOR $19.43 $23.32 $29.15 COMMUNICATIONS SPECIALIST CRIME VICTIM LIAISON DEPUTY CITY SECRETARY IT SUPPORT SPECIALIST PAYROLL SPECIALIST PD - POLICE CADET ROW INSPECTOR TELECOMMUNICATIONS OPERATOR TRAFFIC SIGNAL TECHNICIAN 116 $40,419.19 $48,503.23 $60,629.29 ACCOUNTS PAYABLE SUPERVISOR $19.43 $23.32 $29.15 ADAPTIVE RECREATION SPECIALIST BUILDING INSPECTOR GIS TECHNICIAN HR SPECIALIST LEAD JAILER MAINTENANCE CREW LEADER PLANNING TECHNICIAN TREATMENT PLANT OPERATOR II URBAN FORESTER UTILITY FIELD SERVICE TECHNICIAN. LEAD UTILITY MAINTENANCE TECHNICIAN, SENIOR VOLUNTEER COORDINATOR 119 $44,562.21 853,475.46 $66,843.52 AQUATICS SUPERVISOR $21.42 $25.71 $32.14 BUYER COMMUNITY OUTREACH COORDINATOR CONSTRUCTION INSPECTOR CRIME SCENE TECHNICIAN CUSTOMER SERVICE SUPERVISOR FACILTEY SUPERVISOR ANIMAL CONTROL SUPERVISOR PLANNERI PIANS EXAMINER PW INFRASTRUCTURE LIAISON TELECOMMUNICATIONS TEAM LEADER 200 FY20 COP PAY PLAIN 10/01/2019 Grads Minimum MarhN Mnimum Gass Title Most positions use 2080 hour: however' indicates Positions to use 27% hours In determining hourly rate. 120 $46,79027 $56,148.93 $70, 185.91 ADDRESSING COORDINATOR $22.50 $26.99 .74 BACKFLOW COMPLIANCE PROGRAM COORDINATOR CIP COORDINATOR EMERGENCY MANAGEMENT PLANNER ENGINEERING TECHNICIAN EXECUTIVE ASSISTANT, SENIOR PRETREATMENT COORDINATOR PROJECT COORDINATOR STAFFACCOUNTANT 121 $49,130.44 $50.956.73 $]3,895.66 ASSISTANT MANAGER, PERMITS 81NSP $23.62 $20.34 $35.43 ELECTRICIAN PARK SUPERVISOR PLANNER II CHIEF INSPECTOR VIDEOGRAPHER/EDITOR 122 $51.586.76 $61,903.91 $]],380.14 BUDGET ANALYST $24.80 $2976 $37.20 BUSINESS ADMINISTRATOR CONTRACT ADMINISTRATOR CRIME ANALYST GIS SPECIALIST MARKETING MANAGER NATURAL RESOURCE MANAGER OPERATIONS MANAGER RESOURCE DEVELOPMENT COORDINATOR SALES AND EVENT MANAGER SENIOR ACCOUNTANT SPECIAL EVENTS COORDINATOR STORMWATER COORDINATOR COMMUNICATIONS SUPERVISOR TREASURY ANALYST TREATMENT PLANT SUPERVISOR 123 $54,186.30 $84,999.56 $81,249.45 HR BUSINESS PARTNER $26.04 $31.25 $3906 MAINTENANCE SUPERVISOR SAFETY OFFICER SENIOR PLANNER RECREATION PROGRAM MANAGER WATER B&C ASSISTANT MANAGER 123 F A ,166.30 $84.999.56 $81.249.45 FIREFIGHTER' $19.65 $23.58 $29.48 124 558,874.11 $68.249.74 W,311.67 ATHLETICS AND AQUATICS MANAGER $27.34 $32.01 $41.02 BUILDING MAINTENANCE SUPERVISOR DEVELOPMENT COORDINATOR FIRE INSPECTORANVESTIGATOR SENIOR BUDGET ANALYST HEALTH & ENVIRONMENTAL SERVICES SUPERVISOR QUARTERMASTER SUPERVISOR 125 $59,]18.2] $71,661.52 $89,676AASSOCIATE ENGINEER 28.71 $34.45 I $43.0] ACQUISITION MANAGER DEVELOPMENT SERVICES MANAGER 201 H2O COP PAY PIAN -10/01/2019 Most Positions use 2080 hours however' indicates Poshions to use 27M hours in detenninin9 hourly rate. JAIL MANAGER MUNICIPAL COURT ADMINISTRATOR COMMUNICATIONS AND RECORDS MANAGER PARKS DEVELOPMENT 8 OPERATIONS SUPERINTENDENT 125F $59.718.27 $71,661.52 $89,576.90 DRIVERIOPERATOR' $21.67 $26.00 $32.50 FIRE FIELD TRAINING OFFICER' 126 $62,703.83 $75.245.00 $94,058.25 ANIMAL SERVICES MANAGER $30.15 $36.18 $0.5.22 CHIEF CONSTRUCTION INSPECTOR CONSTRUCTION MANAGER DATABASE ADMINISTRATOR GRANTS/SPECIAL PROJECTS ADMINISTRATOR IT INFRASTRUCTURE ARCHITECT MANAGEMENT ASSISTANT PROJECT MANAGER PUBLIC WORKS SUPERINTENDENT RECREATION SUPERINTENDENT 127 $65,638.87 $79,00725 $98758.81 MARKETING DIRECTOR EDC $31.65 $37.98 $47A8 WATER BILLING B COLLECTION MANAGER MUNICIPAL COURT PROSECUTOR 127F $85.838.87 $79,00725 $98,758.81 FIRE LIEUTENANT' $23.89 $28.67 $35.83 128 $69.131.47 $82,957.36 $103,898.70 PLANNING MANAGER $33.24 $39.88 $49.85 DEVELOPMENTMANAGER EDC FACILITIES SERVICE MANAGER 129 $72,587.69 $87,105A3 $108,882.4 BUILDING OFFICIAL $34.90 $41.88 $5235 EMERGENCY MANAGEMENT COORDINATOR GIS MANAGER INFORMATION TECHNOLOGY MANAGER SENIOR DEVELOPMENT MANAGER EDC SENIOR PROJECT MANAGER 130 1 $76.216.621 $114,325.94 ASSISTANT CITY ENGINEER $36.64 $43.97 $5496 CLINICAL MANAGER FIRE CAPTAIN rsinin RISK MANAGER VICE PRESIDENT -EDC 130F $76.216.62 $91,480.55 $114,325.94 FIRE CAPTAIN' $27.65 $33.19 $41.48 131 $0,028.36 $98,033.83 $120,041.53 ASSISTANT CITY ATTORNEY $38.48 $46.17 $57.71 CONTROLLER ASSISTANT DIRECTOR, HUMAN RESOURCES FY20 COP PAY PLAN -10/01/2019 Gretla MirYmum Menet Maximum Coss Thle is Most positions use 2080 hours however' indsc fles positions to use 2756 hours in delerminin9 hourly rate. 132 $84,028.97 $100,835.37 $126,043.96 ASSISTANT DIRECTOR, PBR $40.40 WAS $60.60 ASSISTANT DIRECTOR, PUB WORKS BATTALION CHIEF Lo isbcs BUDGET AND PROCUREMENT MANAGER FIRE MARSHAL 132 F $84,028.97 $10 535.37 $128,043.96 BATTALION CHIEF' $30.49 $38.59 $45.73 133 1 $88,230.57 $105,877,29 $132,346.36 ASSISTANT DIRECTOR, CAP PROD $42.42 $50.90 $63.63 ASSISTANT DIRECTOR, ENGINEERING ASSISTANT DIRECTOR, FINANCE 134 $9$842.25 $111,170.70 $138,963.88 ASSISTANT FIRE CH IEF $44.54 $53.45 $66AH 135 $97,274.11 $116.729.74 $145,911.87 DEPUTY' CITY ATTORNEY $46.P $58.12 $70.15 138 $102,138.27 $122,585.52 $153,208.90 ASSISTANT POLICE CHIEF $49.10 $58.93 $73.88 DEPARTMENT DIRECTORS AND ABOVE ARE NOT LISTED ON THE PAY PLAN 203 ) ir ) \ ) ) ! ! ! ; ) ) iD \ § §) { FEES FOR ZONING CHANGE/CONDITIONAL USE PERM ITREQUESTS' A $150 processing fee, plus A. 0 to Ess 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 Ess 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 H 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 H Planned Unit Development E. 75 to Ess than 100 aces: 1. $925 plus $25 per each type of zoning requested on a tract of land; or 2 $3,650 H 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 205 PLATTING FEE SCHEDULE A. Preliminary Subdivision/Development Plats: 1. $150 processing fee, and 2 The $850 fling 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 fling 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: $60000 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 fling 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. 206 F. Minor Plat: (ane lot with existing home or business): $150.00 fling fee. G. Amending Plat: 1. Fee amount: $150 processing fee, and a $450 fling 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 fling 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 fling 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 Packs in the City of Peadand 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 based on Census information for owner and renter -occupied units Single Family MuIN-Family 323 people12.90 PPH = 111 DUs 323 people12.90 PPH = 151 DUs Dedication Requirement: Dedication Requirement: 1 Acre per 111 DUs 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 $292+$1,225+$1,517 per 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 Multi -Family $214+$900= $1,114 pre DU CLUSTER PLANS $1,800 $2,000 $2,400 $3,000 $3,800 $4,600 Me 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 fling fee 2. Commercial $150 processing fee, plus a $350 fling fee ZONING VERIFICATION LETTERS A. Residential $ 25.00 B. Commercial $ 35.00 Me PROCESSING FEE BASED ON PERMIT TYPE Banner...............................................................................................................$10.00 Commercial........................................................................................................$20.00 Demolition.....................................................................................................$20.00 Building Permit - Electrical............................................................................. $20.00 FirePermits.. .... ........................................................................................ $20.00 FosterHomes................................................................................................ $ 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 SwimmingPools.............................................................................................$20.00 Signs.............................................................................................................$20.00 TenantOccupancy........................................................................................$20.00 Annual Registration fee for contractors.........................................................$ 0.00 210 BUILDING FEE SCHEDULE A. Civil Site Work Permit 1. Fee Amount: Percent of construction value — $16.50 for first $1,000AO; $550 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. FeeAmount: 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. It. If at new building, due before issuance of building permit. 211 F. Water 8 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 $35429 per 25' Lot ($14.17 per linear foot) ($14.17 per linear foot) Sewer - $537.83 per 25' Lot ($21.51 per inear foot) b. Peadand Parkway between Barry Rose Road and Mary's Creek: Water - 969 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- $4480 per inear foot $5391 per Irear 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 $7400 per acre Sewer- 2,221 acres at $3300 per acre 212 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. Peadand 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 213 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. 214 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 Fast= $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 $2000A0 + $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 greal$1,395.50 for the first $500,000.00 + $3.25 for each additional $1,000.00 or fraction thereof. 216 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 Fast or less = $80.00 1,001 Square Feet to 2,000. Square Feel = $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. 216 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 valuati 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 + $225 for each additional $1,000.00 or fraction thereof. $50,000.01 to $500,000.00 = $158D0 for the first $50,000.00 +$2.75 for each additional $1,000.00 or fraction thereof. $500,000.01 and greater = $1,39550 for the first $500,OOODO +$325 for each additional $1,000 DO orfraction thereof. 217 MISCELLANEOUS FEES A. Garage Sale Permit .............................................................................. $ 20.00 B. Occupancy Permit...............................................................................$ 50.00 C. Re- inspection Fee.....................................................................$ 25,0975.00 D. Returned Check Fee ............................................ $ 25.00 E. Waiver of Encroachment 1. General Utility Easement................................................................$250.00 2 City Right-cf-Way or Easement .......................................................$500.00 218 FEE SCHEDULE Ambulance Application Fee (per company) $250.00 Ambulance Permit Fee (per ambulance) $100.00 Ambulance Re -inspection Fee $75.00 FIRE Re -inspection Fees (As may be amended from V Re -inspection $ 75.00 2n" Re -Inspection $ 75.00 3rd Re -inspection and thereafter, each $200.00 After hours Inspection $200.00 (After 5:00pm Monday -Thursday; after 4:00pm on Friday, and on weekends) CD/DVD POLICE Accident Report Rates provided in $ 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) $ 50.00 Clearance Letter $ 3.00 $ 5.00 (As may be amended from time to time by State Statute) 219 Copies $ 0.10perpage 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) Rates provided in Fire Department (per occurrence after 5 Per yr) Ordinance No 569-3 UTILITY BILLING Delinquent Fees: First Time Reconnect $ 30.00 Subsequent Reconnect Charges $ 50.00 "Red Flag" Identity Report $ 3.00 Connect Fee 219 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 5170.00 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 30" $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 $240.00 Antenna Replacement Based on cost Meter Testing: 5/8-3/4" Meter $ 80.00 1" Meter $ 100.00 11/2" Meter $100.00 2"-8"Meters $150.00 8" and above Meters $200.00 Same Day New Service Connections $100.00 Containment Traps $100.00/year Including but not limited to grease, grit, grass, oil, lint and other contaminants. Meter Inspection/Installation Initial $ 40.00 Re -inspection $ 75.00 ap 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 -Effective 10/01/2019 $1,500.00 $ 60.00 $ 10.00 $50 for ten days, up to 2,000 gallons and connection Base(Single Unit by Meter Size) water Sewer Residential 5/8" $15.78 $22.74 3/4" $15.78 $22.74 1" $26.30 $37.89 11/2" $52.60 $75.79 2" $84.16 $121.26 3" $157.79 $227.37 4" $262.99 $378.95 6" $525.97 $757.90 8" $841.56 $1,212.63 10" $1,209.74 $1,743.16 Commercial 5/8" $15.78 $22.74 3/4" $23.68 $34.11 1" $39.46 $56.85 11/2" $78.92 $113.70 2" $126.27 $181.92 3" $236.75 $341.10 4" $394.59 $568.50 6" $789.17 $1,137.00 8" $1,262.68 $1,819.20 10" $1,815.10 $2,615.10 Multi -Unit per unit) $15.78 $22.74 Residential Volumetric 0-2,000 gallons In base In base 2,001-6,000 gallons $4.06 $5.00 6,001-15,000 gallons $5.09 $5.00 15,001-25,000 gallons $6.11 $5.00 25,001+ gallons $8.14 $5.00 Commercial/Multi-Unit Volumetric 221 0-2,000 gallons In base In base ase2,001+gallons 2,001+ gallons $5.09 - $5.00 Irrigation Volumetric $23.68 $34.11 0-2,000 gallons In base $56.85 2,001+ gallons $6.11 $113.70 Water and Sewer Rates -Residential and Commercial Effective 1/1/2020 Base (Single Unit by Meter Size) Water Sewer 5/8" $15.78 $22.74 3/4" $23.68 $34.11 1" $39.46 $56.85 11/2" $78.92 $113.70 2" $126.27 $181.92 3" $236.75 $341.10 4" $394.59 $568.50 6" $789.17 $1,137.00 8" $1,262.68 $1,819.20 10" $1,815.10 $2,615.10 Multi -Unit (per unit) $15.78 $22.74 Residential Volumetric 0-2,000 gallons In base In base 2,001-6,000 gallons $4.06 $5.00 6,001-15,000 gallons $5.09 $5.00 15,001-25,000 gallons $6.11 $5.00 25,001+ gallons $8.14 $5.00 Commercial/Multi-Unit Volumetric 0-2,000 gallons In base In base 2,001+ gallons $5.09 $5.00 Irrigation Volumetric 0-2,000 gallons In base 2,001+ gallons $6.11 Residential Wastewater Cao 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. 222 New Residents Default billing amount (gallons) of 6,000 gallons Billing Adlustments Water adjustments maybe 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 X times that existing in the City. Sewer Use Credit Program Application Fee $500.00 Monthly Administrative Charge $ 50.00 Annual Testing Fee 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 $1,300 Grading Permit $125.00 After Hours/Weekend Inspections $ 60.00/hr Holiday Inspections $ 75.00/hr PUBLIC WORKS Water Tap Fee's All taps include meter, cts, corporation, saddle, curb stop and meter box 5/8" and W Short Tap $1,300 5/8" and %" Long Tap $1,700 Y." U -branch Assy w/2"d'/. meter $800.00 a added cost if needed 1" Short Tap $1,400 1"Long Tap $1,700 2" Short Tap $3,200.00 2" Long Tap $3,400.00 Gravity Sewer Tap Fee's 4" Short Tap $1,100 4" Long Tap $1,500 as Force Main Tap Fee's 2" Short Tap 2" Long Tap Additional Cost if applicable $1,400 $1,800 Restoration — Sod $ 75.00 (Includes prep & install of 10' x 10' area of sod) $ 0.50 Restoration —Sidewalk & Sod $ 285.00 (Includes prep & install of 4' wide x 6' long sidewalk and 10' x 30' area of sod) Actual Cost Traffic Control $ 225.00 (Rental cost of 3 water filled barriers or rental of 2 static message boards for 1 month) Actual Cost Commercial Meter Deposit $100.00 Banner Deposit Banner Installation Fee rrrr 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 Audiocassette $ 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 $150.00 BQ-Wine & Beer Off -Premise $ 60.00 BF -Off Premise $ 60.00 BG-Wine&Beer On -Premise that hold a Food/Bev. Permit $175.00 BL- Late Hours On -Premise $250.00 PE -Cartage $ 20.00 LB -Late Hours Mixed Beverage $150.00 224 RM - Mixed Beverage Restaurant $750.00 BP -Brew Pub License $500.00 P -Package Store $500.00 PS- Package Store Tasting Permit $ 25.00 X - General Class B Wholesalers Permit $300.00 O- Private Carrier's Permit $ 30.00 G -Winery Permit $ 75.00 GF- Winery Festival Permit $ 50.00 Peddlers Permit Primary Permit Holder $ 75.00 max of 3 mo. Assistant working under primary $ 5.00/mo.perassistant Surety Bond (required) $1,000.0 UOUIVI1a1IIdUPY11TQ1 V impound $ 30.00 2nd impound $ 40.00 30 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 2"d impound $150.00 3'd 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 lbs $ 30.00 26 lbs to 60 lbs $ 60.00 61 lbs and over $ 90.00 Large animal contract $200.00 and up Euthanasia on demand $ 60.00 Surrender of owned pet $ 50.00 Cat carrier $ 5.00 Collar - nylon $ 3.00 us Collar — leather Cost +$4.00 Micro -chip implant includes pet registration $ 25.00 PARKS & RECREATION Non-resident fees Programs and Leagues Resident Non-resident Southdown Park Pavilion $ 50.00 Fee fee Independence Park Large Pavilion $200.00 Cost less 20% discount Program Cost Gazebo at City Hall $ 50.00 *Flat rate schedule for league registration; no discounts apply. Westside Event Center Banquet Hall $140.00 Non-resident fee for Senior Center via special event permits. $ 50.00 per year Resident fee for Senior Center $ 25.00 $ 25.00 per year Transportation fees for the Melvin Knapp Senior Center(Specialty Trip) $ 2.00 round-trip In City $ 5.00 round trip Outside City Special Event Permit Fee $ $100.00 Deposits Centennial Park Pavilions $ 50.00 Southdown Park Pavilion $ 50.00 Southdown Stage and Lawn $140.00 Independence Park Large Pavilion $200.00 Independence Park Stage and Lawn $300.00 Independence Park lawn A $ 50.00 Independence Park Lawn B $ 50.00 Independence Park Full Park* $500.00 Independence Park Swimming Pool $100.00 Gazebo at City Hall $ 50.00 Westside Event Center Meeting Room $140.00 Westside Event Center Banquet Hall $140.00 *Full Park only includes rentable amenities; park closure requests must be processed via special event permits. Indoor rental cleaning Fee $180.00 Administrative fee for rental cancellations $ 25.00 226 Rental Fees Outdoor *Full Park only includes rentable amenities; park closure requests must be processed via special events permit. Events that are open to the public and that include the sale of anything (e.g., ticket sales, merchandise, food and beverages, alcohol, etc.) will be charged the base area rental fee and 5% of net revenues. Indoor Facility 1/2 Day Full Day Facility Resident Non -Resident Non- Profit Resident Non- Resident Non -Profit Centennial Park Pavilion $60.00 $90.00 $120.00 $180.00 Southdown Park Pavilion $60.00 $90.00 $120.00 $180.00 Southdown Park Stage &Lawn $180.00 $270.00 $90 $360.00 $540.00 $180.00 Independence Park Large Pavilion $180.00 $270.00 $90 $270.00 $405.00 $135 Independence Park Stage &Lawn N/A N/A N/A $450.00 $675.00 $225 Independence Park Lawn A $60.0 $90.00 $30.00 $90.00 $135.00 $45.00 Independence Park Lawn a $60.00 $90.00 $30.00 $90.00 $135.00 $45.00 Independence Park Full Park* N/A N/A N/A $1,200.00 $1,800.00 $600.00 Gazebo at City Hall 1$30.00 $60.00 *Full Park only includes rentable amenities; park closure requests must be processed via special events permit. Events that are open to the public and that include the sale of anything (e.g., ticket sales, merchandise, food and beverages, alcohol, etc.) will be charged the base area rental fee and 5% of net revenues. 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 227 Recreation Center and Natatorium Initiation Fee, for all Annual Membership with Contract Category Games Non -Resident* Resident Non -Resident $495.00 $20.00/hour $30.00/hour $247.50 plus$10.00/hour for lights plus$10.00/hour for lights $346.50 Price includes initial paint & dirt work $110.00 $165.00 Household Tournaments $990.00 Resident Non -Resident $220.00 $20.00/hour $30.00/hour $440.00 plus$10.00/hour for lights plus$10.00/hour for lights plus$10.00/field for paint &dirt work plus$30.00/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. Daylight Savings - lights are turned on at 5 p.m. Non -Daylight Savings - lights are turned on at ] 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 iEent Fee= resident rate♦ 50% Monthly Membership without Contract Category Resident Non -Resident* Adult$35.20 $52.80 Additional Person $1].60 $26.40 Active Adult $24.20 $36.50 Additional Active Adult $12.10 $18.70 $ 32.00 ae Household $69.30 $104.50 Natatorium Only Individual $23.10 $35.20 Household $46.20 $69.30 * Non Resident Fee= resident rate. sow "Monthly Fee =annual arvmed by 12 a 50% Recreation center and Natatorium Menx ip includes bidder, dmp in child are, bask health and fitness classes. Natatorium only membership includes naive to the naaonum only. Trial Membership (one time per Individual) 7 far? Trial Locker Rentals (maximum rentals -10lockers in each locker room) Annual Monthly Group Exercise Punch Card (20 punches) Daily Fees 18+ years of age 12-17 years of age 3-11 years of age Family Child Care Definitions $ 30.00 for 30 days $ 7.00 far 7 days $100.00 $ 10.00 $ 50.00 $ 8.00 $ 5.00 $ 3.00 $18.00 $ 5.00 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 Up to 2 adults and 3 children. Recreation Center Rental Rates UP 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 $800.0/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 UP Entire Multipurpose/ Activity Room $65.00/hour $130.00/hour $195.00/hour I $260.00/hour Resident Rate Zone Meeting Room $15.00/hour $30.00/hour $30.00/hour $30.00/hour $142.00 Kidz Korner, The Zone, Gymnasium, Multipurpose Room, Track, Activity Room, Racquetball Courts, 20d 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 $150.00.00/per court Security COP Security Fee 1-10 Guests Il -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 COP Security Fee Number (paid directly to officer at Participants beginning of event) COP Custodial Fee Event Staff $100.00/d2y $50.00 <]5 1 @ $30.00/hour when admission charged 75-200 1@$30.00/hour when admission charged $200.00/day $50.00 COP P& R Aquatics Supervision(CPO/AFO) Fee (500+events only) $35/hour $10 per hour per Additional Lifeguard Supervision Lifeguard Day Timing System (one system)(If operator is included then additional staff charges $200.00/day will apply) Events Requiring 50- meter configuration will require an additional set-up fee $300.00 Special Note: 2 parking lot attendants are required for all events with an anticipated 500+ total attend. .Parking lot attendants are $15.00 an hour and this fee will be assessed with other rental fees. * Custodial fee includes the additional cleaning supplies and inventory to support the rental as well as any staff needed to manage the cleaning of restrorns, trash, stands, etc. "For large rental/meets (over 500+) an additional "Extra Heavy Cleanup/Restoration Fee" of $250.00 per day will be assessed. 230 Delores Fenwick Nature Center Fee Schedule Category Non -Profit 1 Ornanization Field Trip 8.00 uest $8.00/quest Classroom Rental 25.00/hr 50.00 hr Miscellaneous branded merchandise will to the adopted c st-recovery model. be sold in accordance Health Fees for Health Certificates and Re -inspection on Food Related Establishments Foster homes Full service Limited Preparation 1-4 employees $150.00 $125.00 5-9employees $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 $5000 Pre acka d Only $150.00 Mobile Units $225.00 Addlllonal units $225.00 Produce Vendor $100.00 Schools/Da cares $125.00 Temporary fees for Special Events $50.00 Pre-oIna action fee $100.00 Ramseciion Fee for failing initial inaeckon $75.00 231 THIS PAGE INTENTIONALLY BLANK 232 ACRONYMS ACM— Assistant City Manager FF — Firefighter ARCS- American Community Survey FF&E- Furniture, Fixtures & Equipment ADA- Americans with Disabilities Ad 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 GIP- 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 GPI - Consumer Price Index GFOA- Government Finance Officers Association of CPR -Cardiopulmonary Resuscitation Me United States and Canada CR -County RoatlGIS - Geographical Information Systems CVB- Convention and Visitors' Bureau GVs- 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 - Houslon-Galveston Area Council DWVDUI- 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 Cade Council ETJ - Extra Territorial Jurisdiction I&I- Inflow and Infiltration 233 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 Feel LKMD - Lower Kirby Management District LS- Lift Station LTD -Limited LUCAS - Lund Univereity 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 ED_- Police Department PEDC - Pearland Economic Development Corporation PEG - Public, Educational and Government Channel (television) PER- Preliminary Engineering Report PFIA- Public Funds Investment Ad PGSA- Peadand 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 RCM - Recreation Center/Natatorium RD - Radio Detection ROW -Right -of -Way ROWS - Rightof-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 FeetlFoot SH288 - State Highway 288 SNAP - Safe Neighborhoods Around Pearland SPA - Strategic Partnership Agreement SO. FT. - Square Foot/Feet SRO - School Resource Officer SUI - State Unemployment Insurance SUV - Sports Utility Vehicle TAAF - Texas Amateur Athletic Foundation Tom- Texas Commission on Environmental Quality 234 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 Come 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 W WM - Waste Water Management ZBA - Zoning Board of Adjustment 236 GLOSSARY 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 reheating amounts due from private persons or organizations for goods and services famished by a government. The total set of records and procedures, which are used to record, classify, and report 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 Nat 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. B 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 recuring 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. 236 BOND REFERENDUM - A bond referendum is an opportunity for voters N decide d 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 Me appropriating governing body. BUDGET INSTRUCTIONS -The guidance document produced by the City financial management unit, for use by departmenlally-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 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 sending forth each capital project, identifying the expected beginning and ending date for each project, the amount to he expended in each year, and Me method of financing Mose expenditures. CAPITAL OUTLAY - Expenditures for the acquisition of capital assets. CAPITAL PROJECT FUNDS - Capital Project Funds are used W account for financial resources to be used for the acquisition or conshuction of major capital facilities (other than those financed by proprietary funds, special assessment funds and bust 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 cony over to the following fiscal year d approved by the City Manager and City Council. City Council formally amends the budget to approve carryover funding. Revenues can also carryover tt they were anticipated in one fiscal year but not received until Me following year. CASH BASIS - A method of accounting in which revenues and expenses are recognized and recorded when received, not necessarily when eamed. 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 Me same legal status as a general obligation bond. Proceeds from Me 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 various2nds CHECK- A bill of exchange drawn on a bank and payable on demand COMPONENT UNR-A component unit is defined as a legally sep mate organization for which elected officials of the primary government (Me City) are financially accountable. CONSUMER PRICE INDEX (CPI) - The monthly data on the changes in the prices pad 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 cut 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. DEFICR- The excess of expenditures over revenues during an accounting period; or in the base 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 Cfty Manager or City Manager. DELINQUENT TAXES -Taxes remaining unpaid on and after the dale 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 lax 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 significent 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 Me 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 am made. EXTRATERRITORIAL JURISDICTION IETJ) - 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. 238 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 -live! 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 IFTE1-One full-time equivalent works 2,080 hours a year; a person working 1,040 hours Par year is equivalent to 0.5 FTE. FUND - An Independent fiscal and accounting entity with a seg -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. 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 IGAAPI- 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 amounted 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 Bm2oria, Fort Bend, and Galveston Counties. I IMPACT FEES- Fees charged to developers to cover in whole or in pari 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 overexpenses. 239 INFRASTRUCTURE - Fixed assets that are immovable and have value only to the governmental unit. Common examples of infrastructure include roads, sidewalks, bridges and streetlights. - Revenue received from another governmental unit for a spec purpose. INTERNAL SERVICE FUND - Internal Service Funds are used to account for Me 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 Me 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. LEASEIPURCHASE - A financing tool utilized to fund large capilal outlays where the city may not have cash immediately available for purchase. This arrangement allows the cityto 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 Was or special assessments imposed by a governmental unit. LIABILITIES - Debt or other legal obligations arising out of transactions in Me 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 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 intoned 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 taking power and can Issue bonds to pay for construction and improvements to the districts system. Districts are typically established in unincorporated areas, but can also lie within Me boundaries of one or more cities. NOTE PAYABLE -An unconditional written promise signed bythe 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. OPERATING BUDGET - Plans of current expenditures and the proposal means of financing Mem. ORDINANCE -A formal legislative enactment by the governing body of a municipality. ORGANIZATIONAL UNIT -A responsibility center within a government. PERFORMANCE MEASURES - Specific quantketive measures of work performed within an aIXlvlty or program. They may also measure results obtained through an activity or program. 240 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 lax 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 Slate Properly 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 Me Enterprise Fund and the Internal Service Fund. PURCHASE ORDER - A document issued to authorize a vendor or vendom to deliver specified merchandise or render a specified so"" 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 Rem of income. REVENUE BONDS -Bond whose principal and interest are payable exclusively from earnings of an enterprise fund. ROLLBACK RATE -A taxing unit's 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 lax rate that is higher Nan the rollback rate, voters in the unit can circulate a petition calling for an election to limit the size of the tax increase. 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 Ne 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. 241 TAX LEW — 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. 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. 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 operafing liquidity available to an organization or governmental enfily. Net Working Capital is calculated as current assets minus current liabilities. YIELD —The rate eamed on an investment based on the price paid for the investment, the interest earned during the 57r-io7 held and the selling price or redemption value of the investment. 242 ti A41 rEAR`90 T L X A 5 fst 'Sc), J a�\ City of Pearland 3519 Liberty Drive Pearland, Texas 77581 281.652.1600 pearlandtx.gov