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HomeMy WebLinkAboutOrd. 1506 2014-09-29ORDINANCE NO.1506 An appropriation ordinance adopting a revised budget for the fiscal year ending September 30, 2014 and adopting a budget for the fiscal year beginning October 1, 2014, and ending September 30, 2015, and pay plans for fiscal year 2015. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's estimated 2013-2014 Budget and proposed 2014-2015 Budget, attached hereto as Exhibit "A" and Exhibit "B", 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. The City Council hereby adopts a revised budget for the current fiscal year ending September 30, 2014 consisting of certain appropriations, more specifically identified on Exhibit "A" attached hereto. Section 3. That City Council hereby appropriates certain sums, more specifically identified on Exhibit "B" attached hereto, for the proposed fiscal year 2014- 2015 Budget. Section 4. 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 5. That the City Council deems the Pay Plans (Exhibit "C") and Organizational Plan contained in the 2014-2015 Budget to be in the best interest of the City and is hereby adopted. Section 6. That this ordinance shall become effective from and after its passage on second and final reading. ORDINANCE NO.1506 PASSED and APPROVED ON FIRST READING this the 22ND day of September, A. D., 2014. TOM REID MAYOR ATTEST: PASSED and APPROVED ON SECOND and FINAL READING this the 29th day of September, A. D., 2014. ATTEST: I TY S •' ' ETAR APPROVED AS TO FORM: , DARRIN M. COKER CITY ATTORNEY • 2 TOM REID MAYOR 2_La Ordinance No. 1506 Exhibit "A" EXHIBIT A City of Pearland Fiscal Year 2013-2014 Revised Budget REVENUES EXPENDITURES Fund # Fund Description 010 General 015 P.E.D.C. 020 Debt Service -General Proprietary Funds 030 Water and Sewer 031 Solid Waste 2014 2014 2014 2014 Adopted Revised $ Change Adopted Revised $ Change 60,161,236 63,245,053 3,083,817 63,349,499 66,336,042 2,986,543 9,126,881 9,003,762 (123,119) 6,819,102 6,946,723 127,621 28,070,980 61,612,893 33,541,913 28,842,896 62,228,869 33,385,973 32,380,706 32,488,364 107,658 31,086,191 31,814,713 728,522 8,458,930 6,916,829 (1,542,101) 8,520,935 6,739,002 (1,781,933) Special Revenue Funds 017 Municipal Court 66,417 54,683 (11,734) 78,678 78,457 (221) 018 Citywide Donation 30,632 69,235 38,603 81,185 103,094 21,909 019 Court Technology 78,420 62,246 (16,174) 77,790 339,994 262,204 023 Court Juvenile Management 39,265 37,249 (2,016) 43,074 44,092 1,018 033 Street Assessment Fund 62,588 62,588 - 62,588 62,588 035 Traffic Impact Improvement 870 42,850 41,980 10,625 10,625 043 Regional Detention - - - - 045 Hotel/Motel 1,151,088 1,429,994 278,906 761,195 780,922 19,727 046 Parks Donations 81,100 104,165 23,065 71,500 136,367 64,867 047 Park & Recreation Development 51,200 225,081 173,881 48,700 248,023 199,323 049 Tree Trust 25 854 829 5,000 5,391 391 055 Sidewalk 5,300 33,715 28,415 - 14,652 14,652 060 Police State Seizure 15,132 47,187 32,055 102,733 113,637 10,904 062 Federal Police 50 9,326 9,276 29,000 31,842 2,842 101 Grant 378,838 630,514 251,676 393,263 650,915 257,652 111 Community Development 333,253 753,146 419,893 333,253 753,146 419,893 140 University of Houston 258,447 340,935 82,488 258,266 340,935 82,669 141 University of Houston Capital Renewal Fun - 330 330 - - 145 Municipal Channel 234,105 265,407 31,302 40,500 46,546 6,046 Internal Service Fund 095 Property/Liability Insurance 099 Medical Self -Insurance Sub -Total Operations 1,355,938 1,209,206 (146,732) 5,499,891 6,810,948 1,311,057 1,355,888 1,271,354 (84,534) 5,505,785 6,292,592 786,807 147,778,704 185,456,560 37,677,856 147,815,058 185,390,521 37,575,463 9 EXHIBIT A City of Pearland Fiscal Year 2013-2014 Revised Budget REVENUES EXPENDITURES Fund # Fund Description CAPITAL IMPROVEMENT PROGRAM (CIP) Water/Sewer CIP 042 Utility Impact Fee 044 Shadow Creek Impact Fee 064 1998 Certificate of Obligation 067 1999 W & S Revenue Bonds 301 Water/Sewer Pay As You Go 302 MUD 4 Capital Program Capital Projects Funds 050 Capital Projects 068 Capital Projects -CO 2001 070 Capital Projects Mobility CO 2001 200 Capital Projects -CO 2006 201 Capital Projects -CO 2007 202 Capital Projects -GO 2007A 203 Capital Projects -GO 2009 Sub -Total CIP TOTAL: 2014 2014 Adopted Revised $ Change 2014 2014 Adopted Revised $ Change 20,364,862 13,506,154 (6,858,708) 21,333,184 16,009,968 (5,323,216) 1,399,320 2,149,066 749,746 2,692,612 3,992,612 1,300,000 - 1,702 1,702 - 847,080 847,080 1,658,326 4,102,909 2,444,583 2,164,747 9,793,754 7,629,007 250 66,100 65,850 2,068,713 2,068,713 - 2,423 2,423 503,763 477,802 (25,961) 293,500 3,341,177 3,047,677 292,500 4,827,434 4,534,934 5,391,413 6,140,223 748,810 5,438,240 6,150,089 711,849 - 1,110 1,110 510,084 829,651 319,567 2,145,000 3,000 (2,142,000) 2,879,889 2,002,170 (877,719) 80 80 - 66,043 66,043 400,000 453,445 53,445 1,464,922 2,032,595 567,673 23,630,615 18,092,067 (5,538,548) 24,297,286 25,566,988 1,269,702 $55,283,286 $47,859,456 ($7,423,830) $61,577,227 $74,664,899 $13,087,672 $203,061,990 $233,316,016 $30,254,026 $209,392,285 $260,055,420 $50,663,135 10 Ordinance No. 1506 Exhibit "B" EXHIBIT B City of Pearland Fiscal Year 2014-2015 Adopted Budget REVENUES EXPENDITURES Fund Fund Description 2015 Adopted 2015 Adopted OPERATIONS - 010 General $ 63,692,881 $ 67,520,359 015 P.E.D.C. $ 9,415,766 $ 14,708,556 020 Debt Service -General $ 29,869,444 $ 29,749,859 Special Revenue Funds 017 Municipal Court Security $ 57,208 $ 99,497 018 Citywide Donation $ 23,250 $ 22,000 019 Court Technology $ 65,510 $ 66,665 023 Court Juvenile Management $ 38,322 $ 44,229 033 Street Assessment $ - $ 035 Traffic Impact Improvement $ 1,800 $ 91 043 Regional Detention $ - $ - 045 Hotel/Motel $ 1,393,078 $ 819,213 046 Parks Donations $ 81,140 $ 80,000 047 Park & Recreation Development $ 51,100 $ 118,532 049 Tree Trust $ 45 $ 69,100 055 Sidewalk $ 5,240 $ 67,224 060 Police State Seizure $ 20,100 $ 54,100 062 Federal Police $ 15 $ 101 Grant $ 262,297 $ 276,959 111 Community Development $ 313,794 $ 313,794 140 University of Houston $ 339,955 $ 339,915 141 University of Houston Capital Renewal Fund $ 8,376 $ 145 Municipal Channel $ 270,500 $ 83,700 Internal Service Fund 095 Property/Liability Insurance $ 1,390,375 $ 1,374,360 099 Medical Self -Insurance $ 6,821,888 $ 6,821,888 Proprietary Funds 030 Water and Sewer $ 35,583,118 $ 37,017,108 031 Solid Waste $ 6,616,649 $ 6,603,258 SUB TOTAL - OPERATIONS $ 156,321,851 $ 166,250,407 CAPITAL IMPROVEMENT PROGRAM (CIP)- Water/Sewer Capital Projects Funds 042 Utility Impact Fee $ 4,760,368 $ 3,438,770 044 Shadow Creek Impact Fee $ 556,186 $ 623,018 064 Certificates of Obligation 1998 $ - $ - 067 1999 W & S Revenue Bonds $ 2,705,415 $ 2,949,746 301 Water/Sewer Pay As You Go $ 224,500 $ 424,947 302 MUD 4 Capital Program $ - $ 22,431 Capital Projects Funds 050 Capital Projects $ 3,835,500 $ 3,884,372 068 Capital Projects -CO 2001 $ 10,928,569 $ 10,956,770 070 Capital Projects Mobility CO 2001 $ - $ 75,841 200 Capital Projects -CO 2006 $ - $ 201 Capital Projects -CO 2007 $ - $ 202 Capital Projects -GO Series 2007A $ $ 805,296 203 Capital Projects -GO Series 2009 $ 37,965,612 $ 37,568,948 SUB TOTAL - CIP $ 60,976,150 $ 60,750,139 GRAND TOTAL: 1 1 $ 217,298,001 $ 227,000,546 GENERAL FUND - CHANGE LIST (FUND 10) The purpose of the change list is to track all changes to the Proposed Budget since it was presented to Council on September 2. FY2013-14 FY2014-15 DATE OF PROJECTED PROPOSED CHANGE Preliminary Revenues: Changes to Preliminary Revenues: Building Permit Processing Fee from $10 to $20 Total Revenue Changes: Total Revenue with Changes: Preliminary Expenditures: Changes to Preliminary Expenditures: Parks Mower Equipment Business Analyst - Defer Contingency Reduction Pavement/Sidewalk Parks Software Policy Vacancy Savings (Police) Pavement/Sidewalk Add 1 Sergeant/4 Officers to current 1 Sergeant in Patrol Total Change in Expenditures: Total Expenditures with Changes: Net Revenues Over/(Under) Expenses Beginning Fund Balance Ending Fund Balance $63,245,053 $63,582,881 $110,000 $0 $110,000 $63,245,053 $63,692,881 $66,336,042 $67,410,359 (28,450) 9/3/2014 (57,477) 9/3/2014 (50,000) 9/3/2014 (353,437) 9/3/2014 (37,106) 9/4/2014 (54,000) 9/4/2014 91,106 9/4/2014 599,364 9/9/2014 0 110,000 66,336,042 67,520,359 (3,090,989) (3,827,478) $18,623,117 $15,532,128 $15,532,128 $11,704,650 19 GENERAL FUND - 10 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 PROPOSED BUDGET OVERVIEW The General Fund provides the financing for all of the City of Pearland's basic services except water, sewer and solid waste, which is accounted for through the Water & Sewer and Solid Waste Funds. The principal sources of revenue include property taxes, sales and 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 53% of total operating expenditures (excluding transfers). General Government includes departments such as Mayor and City Council, City Manager, Finance, Legal and Human Resources. Expenditures include all personnel costs for 509.75 full-time employees and 141 part-time employees, utilities, fuel, park and right-of-way maintenance, street lighting, just to name a few. FY2014 FY2014 FY 2015 FY2013 AMENDED YEAR END PROPOSED ACTUAL BUDGET PROJECTION BUDGET REVENUES Property Taxes Sales and Use Taxes Franchise Fees Licenses & Permits Fines & Forfeitures Charges for Service Miscellaneous Transfers in Other Financing Sources TOTAL REVENUES EXPENDITURES General Government Public Safety Community Services Public Works Parks & Recreation Total Operating Expenditures Transfers Out TOTAL EXPENDITURES Revenues Over/(Under) Expenses Beginning Fund Balance Ending Fund Balance Policy - 2 months Recurring Oper. Fund Balance over Policy $11,178,950 15,919,785 5,758,776 2,988,859 3,333,675 12,567,692 717,581 3,764,560 1,179,413 $11,818,335 17,428,319 6,106,615 2,877,117 3,568,281 13,175,835 595,362 3,709,547 2,754,764 $11,901,823 17,038,649 6,264,559 3,642,823 2,945,940 12,828,870 2,329,940 3,865,462 2,426,987 $13,197,208 18,063,535 6,646,438 3,922,331 3,105,239 13,984,727 611,309 2,975,094 1,187,000 57,409,291 62,034,175 63,245,053 63,692,881 6,697,743 7,630,655 8,307,116 10,373,879 29,407,660 34,449,353 33,688,276 35,389,548 3,312,707 3,953,705 3,936,686 2,949,771 7,741,495 10,136,545 9,379,884 10,486,794 7,224,818 8,641,990 8,239,889 6,773,623 54,384,423 64,812,248 63,551,851 65,973,615 1,973,712 1,386,903 2,784,191 1,546,744 56,358,135 66,199,151 66,336,042 67,520,359 1,051,156 (4,164,976) (3,090,989) (3,827,478) 17, 571,961 18, 623,117 18, 623,117 15, 532,128 $18,623,117 $14,458,141 $15,532,128 $11,704,650 9,660,155 4,797,986 9,450,047 6,082,081 10,438,413 1,266,236 20 Ordinance No. 1506 Exhibit "C" Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly City Manager, City Attorney and Municipal Court Judge Department Heads Deputy City Attorney Assistant Police Chief Vice President - EDC Assistant City Attorney Assistant Director, Finance Capital Projects, Assistant Director Fire Marshal / EMC City Planner Assistant City Engineer Assistant Director, Public Works 63 62 $66,362 $31.9048 $82,952 $39.8810 $99,543 $47.8571 Assistant Director, Parks & Recreation 61 $64,743 $31.1266 $80,929 $38.9083 $97,115 $46.6899 Redevelopment Manager 61 Determined By City Council Determined by City Manager 72 $84,949 $40.8408 $106,186 $51.0510 $127,423 $61.2612 71 $82,877 $39.8447 $103,596 $49.8058 $124,315 $59.7670 70 $80,856 $38.8729 $101,069 $48.5911 $121,283 $58.3093 69 $78,883 $37.9247 $98,604 $47.4059 $118,325 $56.8871 68 $76,959 $36.9997 $96,199 $46.2497 $115,439 $55.4996 67 $75,082 $36.0973 $93,853 $45.1216 $112,624 $54.1460 66 $73,251 $35.2169 $91,564 $44.0211 $109,877 $52.8253 65 $71,465 $34.3579 $89,331 $42.9474 $107,197 $51.5369 64 $69,721 $33.5199 $87,152 $41.8999 $104,582 $50.2799 64 64 64 63 $68,021 $32.7024 $85,026 $40.8780 $102,031 $49.0536 Budget Officer Building Official Director, Marketing (EDC) Manager, Information Technology Facilities Manager Purchasing Officer Associate City Attorney Planner, Senior 58 60 $63,164 $30.3674 $78,955 537.9593 $94,746 $45.5511 60 60 60 60 60 59 $61,624 $29.6267 $77,030 $37.0334 $92,435 $44.4401 58 $60,121 $28.9041 $75,151 $36.1302 $90,181 $43.3562 Project Manager Municipal Court Prosecutor 57 57 $58,654 $28.1992 $73,318 $35.2490 $87,981 $42.2987 12 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Accounting Supervisor Manager, Fleet Manager, GIS Municipal Court Administrator Manager, Animal Control Manager, Water Billing & Collection Manager, Sales and Event (CVB) 56 $57,224 $27.5114 $71,530 $34.3892 $85,836 $41.2671 56 55 $55,828 $26.8404 $69,785 $33.5505 $83,742 $40.2606 55 55 55 55 Network Administrator 54 $54,466 $26.1857 $68,083 $32.7322 $81,699 $39.2786 System Administrator 54 Superintendent, Parks Dev. & Operations 54 Superintendent, Recreation 54 Superintendent, Streets & Drainage 54 Superintendent, Treatment Plant 54 Superintendent, ROW 54 Superintendent, Water & Sewer 54 Manager, Acquisition Planner, Associate Budget Analyst Management Assistant Crime Analyst Grants Coordinator Manager, Traffic Sales and Event Manager (CVB) Deputy Fire Marshal Jail Division Supervisor Police Support Services Supervisor Staff Accountant Construction Inspector, Chief 53 $53,138 $25.5471 $66,422 $31.9338 $79,707 $38.3206 52 52 52 52 52 52 $51,842 $24.9240 51 $50,577 $24.3161 50 $49,344 $23.7230 50 50 50 $64,802 $31.1549 $77,763 $37.3859 $63,222 $30.3951 $75,866 $36.4741 $61,680 $29.6537 $74,016 $35.5845 49 $48,140 $23.1444 $60,175 $28.9305 $72,210 $34.7166 Emergency Management Planner 48 $46,966 $22.5799 $58,708 $28.2248 $70,449 $33.8698 Fire Inspector/Investigator 48 Health & Environmental Services Supervisor 48 Manager, Resource Development 48 Planner 48 Marketing Manager (CVB) 48 Deputy City Secretary Executive Assistant 47 47 $45,821 $22.0291 $57,276 $27.5364 $68,731 $33.0437 Water Billing & Collection Asst. Manager HR Generalist Plans Examiner Building Inspector Police Telecommunications Coordinator 45 46 $44,703 $21.4918 $55,879 $26.8648 $67,055 $32.2378 46 46 45 $43,613 $20.9677 $54,516 $26.2096 $65,419 $31.4515 13 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Aquatics Supervisor Recreation Center Supervisor Recreation Program Coordinator Senior Center Supervisor Special Events Coordinator Communications Specialist Building Maintenance Supervisor Park Supervisor Construction Inspector Engineering Technician Maintenance Supervisor Treatment Plant Supervisor Crime Victim Liaison Multimedia Specialist 44 $42,549 $20.4562 $53,186 $25.5703 $63,823 $30.6844 44 44 44 44 44 44 44 44 44 44 44 44 44 Computer Support Technician, Senior 43 $41,511 $19.9573 $51,889 $24.9466 $62,267 $29.9360 Project Coordinator 43 Vol Fire Recruit/Retention Coordinator 43 Buyer 42 $40,499 $19.4706 $50,623 $24.3382 $60,748 $29.2058 Chief Mechanic 42 Safety Officer 42 Therapeutic Recreation Specialist 42 GIS Specialist 41 $39,511 $18.9957 $49,389 $23.7446 $59,266 $28.4935 Telecommunications Operator, Lead 41 Lead Jailer 41 Urban Forester 41 Accounts Payable Supervisor 40 $38,547 $18.5324 $48,184 $23.1654 $57,821 $27.7985 Code Enforcement/Health Officer, Senior 40 Legal Secretary 40 Office Supervisor 40 Customer Service Supervisor 40 Volunteer Coordinator 40 Electrician 39 $37,607 $18.0803 $47,009 $22.6004 $56,411 $27.1205 GIS Technician 38 $36,690 $17.6394 $45,862 $22.0492 $55,035 $26.4590 Planning Technician 38 Maintenance Crew Leader 38 Utility Maintenance Technician, Senior 38 Treatment Plant Operator II 38 Program Specialist 38 Recreation Program Coordinator, Assistant 38 Recreation Specialist 38 Utility Field Service Technician, Lead 38 Videographer / Editor 38 14 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Code Enforcement / Health Officer Crime Victim Specialist Jailer Telecommunications Operator Administrative Assistant Building Maintenance Technician Traffic Signal Technician HR Assistant 37 $35,795 $17.2091 $44,744 $21.5114 37 37 37 $53,692 $25.8137 36 $34,922 $16.7894 $43,652 $20.9867 $52,383 $25.1841 36 36 35 $34,070 $16.3799 $42,588 $20.4749 $51,105 $24.5698 Park Maintenance Crew Leader 35 Payroll Technician Computer Support Technician Recycling Center Supervisor Treatment Plant Operator I Utility Maintenance Technician CCTV Technician Pre -Treatment Technician Property Room Technician Custodial Crew Leader Mechanic Records and Information Coordinator Traffic Signal Technician, Trainee Humane Officer, Senior Accounts Payable Clerk GPS Specialist Heavy Equipment Operator Water & Sewer Equipment Operator Plans Expediter Police Records Clerk, Lead Utility Billing Specialist Animal Shelter Supervisor Deputy Court Clerk, Senior ROW Inspector GPS Field Technician Humane Officer Office Assistant, Senior Court Bailiff 34 $33,239 $15.9804 $41,549 $19.9755 $49,859 $23.9706 34 34 34 34 34 34 33 $32,428 $15.5906 $40,536 $19.4883 $48,643 $23.3859 32 $31,638 $15.2104 $39,547 $19.0130 $47,456 $22.8155 32 32 32 31 $30,866 $14.8394 $38,582 $18.5492 $46,299 $22.2591 30 $30,113 $14.4774 $37,641 $18.0968 $45,170 $21.7162 30 30 30 30 30 30 29 $29,379 $14.1243 $36,723 $17.6554 $44,068 $21.1865 29 29 29 29 28 $28,662 $13.7798 $35,828 $17.2248 $42,993 $20.6698 27 $27,963 $13.4437 $34,954 $16.8047 $41,944 $20.1656 Utility Field Service Technician 27 15 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Equipment Operator 26 $27,281 $13.1158 $34,101 $16.3948 $40,921 $19.6738 Fleet Services Assistant 26 Records and Information Coordinator, Ass't 26 Recycling Center Specialist 26 Senior Center Shuttle Bus Driver 26 Utility Maintenance Worker 26 Deputy Court Clerk Customer Service Representative Permit Clerk Police Records Clerk Sign Technician Building Maintenance Worker Office Assistant Park Maintenance Worker Receptionist Humane Officer, Trainee Custodian Animal Shelter Attendant Water Safety Instructor Camp Coordinator 15 14 $20,285 $9.7524 $25,356 $12.1905 $30,427 514.6285 13 $19,790 $9.5145 $24,738 $11.8931 $29,685 $14.2718 12 $19,307 $9.2824 $24,134 $11.6031 $28,961 $13.9237 Head Lifeguard 11 $18,837 $9.0560 $23,546 $11.3201 $28,255 $13.5841 Recycling Center Attendant 10 $18,377 $8.8352 $22,971 $11.0440 $27,566 $13.2527 Lifeguard W/WSI 9 $17,929 $8.6197 $22,411 $10.7746 $26,893 $12.9295 8 $17,492 $8.4094 $21,865 $10.5118 $26,237 $12.6142 25 $26,616 $12.7960 $33,269 $15.9949 $39,923 $19.1939 24 $25,966 $12.4839 $32,458 $15.6048 $38,950 $18.7258 24 24 24 23 $25,333 $12.1794 $31,666 $15.2242 $38,000 $18.2691 22 $24,715 $11.8823 $30,894 $14.8529 $37,073 $17.8235 22 22 22 21 $24,112 $11.5925 $30,140 $14.4906 $36,169 $17.3887 20 523,524 $11.3098 529,405 514.1372 $35,286 $16.9646 19 $22,951 $11.0339 $28,688 $13.7924 $34,426 $16.5509 18 $22,391 510.7648 $27,988 513.4560 $33,586 $16.1472 17 $21,845 510.5022 $27,306 513.1278 $32,767 $15.7533 16 $21,312 $10.2461 $26,640 $12.8076 $31,968 $15.3691 15 $20,792 $9.9962 $25,990 $12.4952 $31,188 $14.9943 Ballfield Attendant Fitness Attendant Lifeguard Camp Counselor Recreation Attendant 7 $17,065 $8.2043 $21,331 $10.2554 $25,598 $12.3065 7 7 7 7 16 CITY OF PEARLAND POLICE PAY PLAN I N } U - CO C (0 O co M N M r CD 0) N M (D (0 O V O O M N LU N LU O rn o m a v N M Ln 69 LU $68,935.16 Cl C.O m a m N CO r r N co 0) CA M Ln m LU 69 CO L M LU CO 0 CO 0 v LU m LO v 69 - r LO N M m v N r N co CO O N69 CD O M Ln M LU (D N O 0) Lo o m a o_ v 0)69 N LU U m vi 6 m co N LU CO 69 Q CO CO O L N N CO r CO, N N 69 EA ct) 69 M NCO 03 CO N � 0 0 N CO CO O 69 (A LO N LO v m N CO O Co aJ L M m Li) V Cr LO m o r o O N O M U) V co N LU L (n 0 r N CO O L N CD cc ci CD 01 4 N N N 69 ff) Ln LU Education / Incentive Pay O VI N Q O O (6 C U O (6 � T (6 O Q Q C O w 0 CD C 0 Q.) a) >_ a E U O N CO LU C S (/) U (/) U N (-) LU O L O N m A T CD V Co In o Ln m m 0 0 V r 7 6 N m 6 R C) N N LO CO CO CO r O N c6 N r c6 m M M m N LU CO (A C C C O O) 0O 1- O N (!7 00 ER Ell- H) w H Ow L_ ~ wo— U H W w F' Q U O 0 W U U O (Y < W m Z Q W w w 0 0 0 LU w w J J J 0 0 0 H H H A cu T LO 0 r 01 LA R m CO m CO CO N LO0) O) V LO ea rn 69 TCLEOSE MASTER PEACE CERTIFICATE $ a) U O a) ai > O (6 a) r 0 0) • 5 0 0 a) w (6 C 0 (6 C a) (6 U a) U aL) U (6 0 a a) U C (6 D a) (6 a) a) C C uj (6 (6 U - o c 0 (6 (C 'a M 0) LO Ln r m CO 7 LO Or N- CA (6 61 T M 0) m m O N O M O N V r N r N 69 LU m LU R v M O N m co Q) O co N O co N LU m 4- 69 LU CD CC d T N N Co N r N m N M M (D cr.; (A 0- 69. (C d a C N r O V v L r N In V m V Co a O r Oi 69 CO w (C A v C N O CO 0 m . Ca M M CO m V N CO Le 69 o arO m as co ) O M O Co 'f) (» r CA (C O2. N CO 00 CO o m m r N N CO v N N Vi LU CO CO N Cr01 O Ln o N 0) m r N m v mLU c 0) 0 Lieutenant m f0 0 aD CO LO CO ER ER 69 ASSOCIATE DEGREE BACHELORS DEGREE MASTERS DEGREE (6 C O .0) a) a) -C 0 a) C O T .Q -o a) N U U (6 T 0 N L U C O si U 0 (1) aL) r 0) •O C O LU _C a) O a) > 0 0 0 (9 (1) 5 a) -o 0 (.3 C a) E C a) V (6 U 0 J a) -C L 5 a) C (13 L 13 C 0 0 0 E U � O D C (D m 00 '- (1) a- T 0 N a •T+ (6 U a) a) L F H O i5 +-+ (L) 4- a) C O E w _0) D a) _O U U a) U (6 >, — o Q _cE w T -0 a) a) (� O U >_ sz aa)) 0 L C LU a) T (Q 0 > .5 M O O 0) C O T N i Q C O c U All overtime for any classification shall be paid in accordance with applicable State and Federal law. CITY OF PEARLAND FIRE PAY PLAN FY 2015 Fire Certified Personnel (48/96) Salary Range Job Title Rank MINIMUM MIDPOINT 2756 annual hours Annual Hourly MAXIMUM 2756 annual hours 2756 annual hours Annual Hourly Annual Hourly F-1 Firefighter Firefighter $45,000 $16.3280 $56,250 $20.4100 $67,500 $24.4920 F 2 Driver/Operator Field Training Officer Driver/Operator 2nd Lieutenant $49,672 $18.0231 $62,089 $22.5288 $74,507 $27.0346 F-3 Lieutenant Lieutenant $54,828 $19.8940 $68,535 $24.8676 $82,242 $29.8411 F-4 Captain Captain $62,000 $22.4964 $77,500 $28.1205 $93,000 $33.7446 F-5 Battalion Chief Battalion Chief $70,000 $25.3991 $87,500 $31.7489 $105,000 $38.0987 Hourly rate or regular rate of pay based on 2756 Regular Hours (although scheduled for 2920 in total.) Non -Fire Certified Personnel (48/96) Salar y Range Job Title Rank MINIMUM 2080 annual hours Annual Hourly MIDPOINT 2080 annual hours Annual Hourly MAXIMUM 2080 annual hours Annual Hourly E-1 EMT EMT $21,798 $10.4798 $27,248 $13.0998 $32,697 $15.7197 E-3 EMT -Intermediate EMT -Intermediate $24,918 $11.9798 $31,148 $14.9748 $37,377 $17.9697 E-5 Paramedic Paramedic $30,534 $14.6798 $38,168 $18.3498 $45,801 $22.0197 E-7 EMS Lieutenant 2nd Lieutenant $33,696 $16.2000 $42,120 $20.2500 $50,544 $24.3000 E-9 EMS Captain Captain $39,247 $18.8688 $49,059 $23.5859 $58,871 $28.3031 Hourly rate or regular rate of pay based on 2080 Regular Hours (although scheduled for 2920 in total.) Note: As the last employee in each "E" salary range is assigned to fire fighting duties or leaves the City the range will no longer exist. Uniformed Administrative Personnel (40 hour work week) Salary Range Job Title Rank MINIMUM 2080 annual hours Annual Hourly MIDPOINT 2080 annual hours Annual Hourly MAXIMUM 2080 annual hours Annual Hourly F-6 EMS Training Captain Logistics Captain Clinical Manager Captain $62,000 $29.8077 $77,500 $37.2596 $93,000 $44.7115 F-7 Training Battalion Chief Battalion Chief $70,000 $33.6538 $87,500 $42.0673 $105,000 $50.4808 Hourly rate or regular rate of pay based on 2080 Regular Hours. 18 Exhibit "A" Ordinance No. 1506 Wanting seeds for the E Fiscal Year Adopted BUDGET 2014-2015 pearlandtx.gov CITY OF PEARLAND, TEXAS 4&. Fiscal Year Adopted BUDGET 112014-2015 CITY OF PEARLAND, TEXAS ANNUAL BUDGET AND TAX RATE OCTOBER 1, 2014 - SEPTEMBER 30, 2015 In accordance with SB 656 This budget will raise more revenue from property taxes than last year's budget by $2,987,259, which is a 7.9% increase from last year's budget. Of that amount, $1,811,372 is property tax revenue to be raised from new property added to the tax roll this year. Property Tax Comparison: FY 2014 FY 2015 Ilk 0114 Adopted and Proposed Tax Rate Effective Tax Rate Effective Maximum Operating Rate Maximum Operating Rate Debt Tax Rate Rollback Tax Rate Vote on Budget and Tax Rate: For: 0.7051 0.7121 0.7161 0.6742 0.2185 0.2057 0.2359 0.2221 0.4900 0.4900 0.7259 0.712156 Tony Carbone, Council Member, Position 1 Scott Sherman, Council Member, Position 2 Gary Moore, Council Member, Position 3 Keith Ordeneaux, Council Member, Position 4, Mayor Pro-Tem Greg Hill, Council Member, Position 5 Against: None Present and not voting: None Absent: None Total amount of outstanding municipal debt secured by property taxes for fiscal year 2015 is $23,766,796. FILE COPY CITY SECRETARY'S OFFICE DO NOT REMOVE GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award TRASF.NTED TO City of Pearland Texas For Year Beginning October 1, 2013 E.0.^urivn It -czar The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Pearland, Texas, for its annual budget for the fiscal year beginning October 1, 2013. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. CITY OF PEARLAND ADOPTED BUDGET FISCAL YEAR OCTOBER 1, 2014 -SEPTEMBER 30, 2015 Tom Reid, Mayor Tony Carbone, Council Member, Position 1 Scott Sherman, Council Member, Position 2 Gary Moore, Council Member, Position 3 Keith Ordeneaux, Council Member, Position 4, Mayor Pro -Tern Greg Hill, Council Member, Position 5 Prepared by: Claire Bogard, Director of Finance Bobby Pennington, Budget Officer Paulette Englund, Budget Analyst Neelie Walker, Budget Analyst Joel Hardy, Grant Coordinator Clay Pearson, City Manager Deputy City Manager, Jon Branson Assistant City Manager, Trent Epperson CITE' OF REARLANU CORE VALUES Responsive . Results Oriented . Trust-[3uilders Accountable For more information contact: The City of Pearland; 3519 Liberty Drive; Pearland, Texas 77581 (281) 652-1600 www.pearlandtx.gov CITY OF PEARLAND ADOPTED BUDGET FY 2015 TABLE OF CONTENTS TRANSMITTAL LETTER City Manager's Budget Message i-xi INTRODUCTION Organization Chart 1 City Management 2 City Council Strategic Priorities 3 Staffing Levels 5 Staffing Chart of Authorized Personnel by Department 6 Reader's Guide to the Budget, with Fund Structure 8 Budget Calendar 14 HIGHLIGHTS General Fund Highlights 16 Water & Sewer Fund Highlights 18 Grant Fund Highlights 20 Staffing Changes: General Fund 22 Water & Sewer Fund 24 Other Funds 25 FINANCIAL POLICY 27 FINANCIAL SUMMARIES All Funds Revenues and Expenditures Summary with Fund Balance 45 All Funds Revenues and Expenditures Graphs 46 Analysis of Fund Balance and Cash Equivalents — All Funds 47 Special Revenues Funds 47 Governmental Capital Project Funds 48 Individual Proprietary Funds 48 Individual Proprietary Capital Project Funds 48 Internal Service Funds 49 P.E.D.C 49 Trends - General Fund and Water & Sewer Fund Revenues, Expenditures, Other Sources 50 MULTI -YEAR FORECAST Summary 57 Debt Service Fund 63 General Fund 65 Water/Sewer Fund 72 P.E.D.C. 74 PROPERTY TAXES Overview 75 Tax Collections 76 Effective Tax Rate Publication 77 Assessed Valuation — Tax Levied and Tax Collected 79 Assessed Valuation Graph 80 Tax Rate Distribution for Debt Service & General Fund 81 Top Ten Tax Payers 82 DEBT SERVICE FUND Overview 83 Summary of Revenues, Expenditures and Fund Balance 84 Governmental Debt Maturity Schedule 86 Governmental Debt to Maturity Graph 87 General Debt Service Schedule 88 GENERAL FUND Overview 93 Total Revenue and Total Expenditure Graphs 94 Revenue Detail 98 Expenditure Summary —General Fund by Function/Departments 101 Expenditure Summary —General Fund Category of Expenditure 103 General Government Organization Chart 104 General Government Expenditure and Staffing Summary and Graphs 105 City Council 107 City Manager 108 Human Resources 109 City Secretary 110 Legal Department 111 Information Systems 112 Finance Department 113 Other Requirements 115 Library 116 Public Safety Organization Charts 117 Public Safety Expenditure and Staffing Summary and Graphs 119 Police Department 122 Fire Department 125 Community Services Organization Chart 127 Community Services Expenditure and Staffing Summary and Graphs 128 Community Services Overview Community Development 130 Communications 132 Municipal Court 133 Public Works Organization Chart 134 Public Works Expenditure and Staffing Summary and Charts 135 Public Works Overview 137 Parks & Recreation Organization Chart 139 Parks & Recreation Expenditure and Staffing Summary and Charts 140 Parks & Recreation Overview 143 ENTERPRISE FUND Water & Sewer Fund Overview 145 Water & Sewer Revenue and Expense and Staffing Summaries and Charts 146 Water & Sewer Revenue Detail 148 Water & Sewer Expenditure and Staffing Summary 149 Public Works Water & Sewer Operations Organization Chart 150 Public Works Water & Sewer Operations Overview 151 Information Systems — GIS Overview 154 Finance — Utility Customer Service Overview 155 Enterprise Fund Debt Maturity Schedule 156 Enterprise Fund Debt to Maturity Graph 157 Enterprise Fund Debt Schedule 158 Solid Waste Fund — Fund 31 160 CAPITAL PROJECT FUNDS Capital Project Funds Summary, Funding Sources and Use by Project Type 163 Revenue and Expenditure Summary for all Capital Project Funds: General Fund 165 Enterprise Fund 166 Descriptions and Funding for Projects by type: Drainage Projects 168 Parks Projects 168 Facility Projects 168 Street Projects 170 Water Projects 170 Wastewater Projects 172 SPECIAL REVENUE FUNDS Special Revenue Funds Definition 175 Revenue and Expenditure Summary for all Special Revenue Funds: Court Security Fund — 17 176 Citywide Donation Fund — 18 177 Court Technology Fund — 19 178 Court Juvenile Management Fund — 23 179 Street Assessment Fund — 33 180 Traffic Impact Improvement Fund — 35 181 Regional Detention Fund — 43 182 Hotel/Motel Occupancy Tax Fund/Convention & Visitors' Bureau — 45 183 Park Donations Fund — 46 184 Park & Recreation Development Fund — 47 185 Map of City Parks and Park Zones 186 Tree Trust Fund — 49 187 Sidewalk Fund — 55 188 Police State Seizure Fund — 60 189 Federal Police Fund — 62 190 Grant Fund — 101 191 Community Development Block Grant (CDBG) Fund — 112 192 University of Houston Fund — 140 193 University of Houston Capital Renewal Fund — 141 194 Municipal Channel (PEG) Fund — 145 195 INTERNAL SERVICE FUND Fund Definition 197 Property/Liability Insurance Fund — 95 Revenue and Expense Summary 199 Medical Self -Insurance Fund — 99 Revenue and Expense Summary 200 P.E.D.C. Component Units Definition 203 P.E.D.C. Overview and Revenue/Expenditure Summary 204 P.E.D.C. Expenditure and Staffing Summary 206 P.E.D.C. Goals, Accomplishments, Objectives and Performance Measures 207 P.E.D.C. Debt to Maturity Schedule 209 P.E.D.C. Debt to Maturity Graph 210 P.E.D.C. Debt Schedule 211 APPENDIX A City Charter Article 8 Municipal Finance 213 Tax Ordinance No. 1505 217 Budget Ordinance No. 1506 219 Salary Schedules 224 APPENDIX B New Personnel Funded 231 Funded Supplemental Requests General Fund 232 Water/Sewer Fund 235 Other Funds 237 Not Funded General Fund 238 Water/Sewer Fund 241 APPENDIX C About the City of Pearland Demographics, Statistics, Points of Interest 243 GLOSSARY Glossary 251 Acronyms 257 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE October 1, 2014 City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Ph: 281.652.1600 pearlandtx.gov To: Mayor Reid and City Council members Pearland has planted seeds for the future. These seeds have sprouted and are beginning to take root, but they are still a way from having the firm network of root support that brings a plant to full bloom. The seeds are the investments that have been made around the City, our garden, the shape of which will ultimately be determined by the plans we have adopted and executed. We have plans for systems of roads, parks, water, storm water, sanitary sewers, and facilities. Just as bigger, stronger roots and cells thrive with proper care and watering, our utilities and transportation networks will lead to community growth with our tending. The City of Pearland has established roots with thoroughfares like Magnolia Road from east to west and Cullen Boulevard from north to south. We have literally planted trees and other landscaping in our parks that attract residents to those amenities. Pearland has an appropriately aggressive Capital Improvement Program to continue nurturing the growth of the community. With some of the projects from the voter - approved 2007 Bond Issue still working towards completion, Pearland continues to grow a latticework of sustainable infrastructure. That work has gotten Pearland off to a good start, but such rapid growth can expose some vulnerabilities_ We have grown, but do not yet have all of the needed support structures in place to maintain every plant yet alone the whole garden. We have grown, but without these structures in place cannot reap the fruits of those early plantings. Any place and any time have its challenges: the City of Pearland perhaps has three for our planning. The first vulnerability comes from the energy —the cash resources — that have been invested. We are all aware that the City is significantly leveraged, which was necessary to give us the opportunity to grow successfully. The City will have $297.9 million in General Obligation and Certificates of Obligation outstanding as Page i s of September 30, 2014, being paid back primarily by property taxes. These improvements are investments that benefit the entire community. The particulars of the debt service and obligations are detailed clearly within the Budget document, just as you have seen in prior years. The inflection point is now for capitalizing on growth of the fields (oil and otherwise) around Houston. Individuals and businesses are making major investment decisions. Our financial obligations will be met and we will continue to grow with our ideal location, stand -out public schools, industrious workforce and welcoming neighborhoods, but we will need to do so knowing that the heavy investments both past and future may limit our resources for ongoing operations and innovations. The second vulnerability is the challenge to maintain strong property values on limited land resources. Even with Pearland's large footprint, there is a finite amount of land. Each acre put into use is an opportunity. With the rapid growth in the number of residents and associated rooftops, the value of the property tax base has generally not had the exponential increase that we would hope to see. Property taxes are our means to pay for the infrastructure that people need and use, the infrastructure that brings goods, employers, and customers to our City. The property values derived from this growth have not been of extremely high value relative to the land that has been developed, when compared on a per capita basis to some other large suburban communities (2013 is last year comparable amounts available from published audits.) The numbers below are gross totals and do not reflect the mix of residential and office/industrial/retail tax base in each community, but one could assume that the other communities have a higher percentage of tax base associated with non-residential uses as well. Taxable Value History Cities MSA -- 2010 Census Population Pearland 2013 Pop. Estimate per CAFR's and comparable communities Fiscal Year (Tax Year one year prior) Change 2013 TV 2008 2013 2013 from as % of 2013 N per 2012 2008 capita Frisco Dallas 117,084 135,920 $ 12,448,613,236 $ 14,737,545,079 46% 118% $108,428 Sugarland Houston 78,756 84,511 $ 7,621,604,956 $ 9,700,431,176 2.1% 127% $114,7833 McKinney Dallas 131,025 140,826 $ 9,648,855,100 $ 11,035,645,222 1.0% 114% $ 78,364 Pearland Houston 91,252 104,100 $ 5,389,790,165 $ 6,537,976,038 2.6% 121% $ 62,805 League City Houston 83,560 90,300 $ 4,338,128,202 $ 5,339,621,396 0.8% 123% $ 59,132 ! Source: Individual community Comprehensive Annual Financial Reports The FY 2015 Operation and Maintenance property tax rate includes an adopted .007 cent rate increase, for a total operation and maintenance tax rate of $0.2221. Based on Pearland's estimated Assessed Value base for FY 2015, that will generate $12.7 million for the General Fund budget and an additional $7.8 million from the Shadow Creek Ranch TIRZ administrative fee, which is based on 64% of property tax collections. One hundred percent of the valuations and subsequent levy attributable to the Shadow Creek area TIRZ is not accessible until FY 2030 for general operations and debt service. Property tax revenues are fully consumed by the provision of the essential services that the public relies on such as police, fire, parks, and public works. Despite per capita valuation concerns, the overall tax base reflects a strong increase for FY 2015. We budgeted a net taxable value of $7.6 billion, of which 66% is residential and 26% commercial with the balance being personal property. Importantly, the tax base has not seen a significant increase in assessed taxable values until this year, with a 7.1% increase in FY 2014 over FY 2013 and an estimated 8.5% increased budgeted for FY 2015. The City has gone through three Page ii years of relatively stagnant net taxable value, with 1.0%, 0.6%, and 2.6% in fiscal years 2011, 2012 and 2013, respectively. Property Tax Base Value Distribution History and Projections Fiscal Year (Tax Year one year prior) Type of Property 2008 2013 2014 Estimate Residential Commercial Personal Property Gross Assesed Value Change from Prior Less Tax Exempt Real Other Exemptions and Abatements Total Net Taxable Assessed Value Change in Net Total from Prior 4,136,844,130 1,463,969,653 449,453,570 5,042,965,503 1,954,587,058 612,564,952 5,362,032,572 2,096,902,073 650,453,238 $ 6,050,267,353 $ 2015 Budget 5,786,133,675 2,285,530,437 654,974,383 7,610,117,513 $ 8,109,387,883 $ 8,711,969,298 2016 Proj 2017 Proj 6,164,320,050 2,475,547,969 681,173,358 6,526,996,849 2,658,369,888 708,420,293 $ 9,280,194,929 $ 9,824,360,253 4.0% 6.6% 7.4% 6.5% 5.9°0 384,651,183 275,826,005 617,274,555 645,428,532 454,866,920 461,193,307 654,431,291 471,259,745 680,608,543 475,659,745 707,832,884 481,415,731 $ 5,389,790,165 $ 6,537,976,038 $ 7,002,766,044 22.1% 2.6% 7.1% $ 7,600,947,459 8.5% Total Direct Tax Rate 0.6526 0.7051 0.7051 0.7121 Notes: TIRZ value included of $1,704,949,937 in 2015. MUD #4 Valuation fo $242,712,166 anexed into the City on December 31, 2012, shows in value beginning fiscal year starting 2014. $ 8,164,773,090 $ 8,704,538,414 7.4% 6.6% 0.7371 0.7471 Creating an environment of quality growth, not quantity for its own sake, needs to remain the standard. The City can help set the standard with high quality maintenance of its public facilities, roadways and other infrastructure. As part of the City's staff restructuring, this budget has the rights -of -way and facilities divisions joining the Public Works Department, with the staffing and contractual resources to set the stage. The 288 Municipal Management District is likewise taking the lead in setting a high quality standard along our most visible and economically critical corridor. Consistent image branding is a high priority of the Management Districts, which are funded and operated by private ventures. Similarly, the City too is embarking on an effort to refresh and broaden its image. We are working on small but important visual cues such as: the proud Pearland logo on vehicles and in front of facilities, City -distributed printed material being clearly from the City, and making the utmost use of the recently revitalized pearlandtx.gov (new easier - to -remember URL) which is available 24/7/365 as an encyclopedia for the City of Pearland. Our budget emphasizes that communication with both our residents and businesses is not optional and is not one-sided, but a two-way conversation. Which leads us to the third vulnerability — bringing our plant structure up to the task of supporting an expansive 48.39 square mile, 110,000 resident, and $7 billion valuation community. In this budget we have only net ten new full-time positions, one in Water -Sewer and nine in the General Fund; of which seven are in Police, one in IT, one in Fire-Code/Health Enforcement through a Federal grant, and one in Permits. One Parks position was eliminated due to reorganization. In the FY 2014 budget, we authorized 30 positions, including full-time firefighters to staff a new fire station. The next fiscal year will focus on strengthening the roots and structures internally that have already been laid out. While we will continue to deliver excellent services, we will dedicate more time and resources to making what we have even better. The timing is good to restructure organizationally, with moves that make the most of public dollars. Page iii City of Pearland, Texas Organization Chart - Restructured Office of the. ,ty Manager Deputy City Manager Parks & Recreation CitySecretary Communications Municipal Court — _{Finance& Purchases kHR/Organtratlmai Development tag Management Analyst = Ass6ia[ 1 City / Manager_... City Engliners J Public Works LProjects Engmenim 7,1/14 Maio, tha.ges'n Rea Operations Traffic Operations - Water&Sewer Right cif Way 1- Facrtides ExExecutive Manager of Development Services& PEDC President T--- PEDI Community Development Fire Polite T Chief information Officer Fire Marshal AnimalControl Planning Building Inspections Code &Health I Enforcement I JStrategic initsppvies Our new organizational structure is reflected in this budget. We have instituted a modern configuration to take advantage of the talents of our strong staff. The Public Works and Projects/Engineering functions have been moved together in an Infrastructure group. We need to integrate the design and construction functions with the ongoing operations and management. We have in this budget the start of an "asset management" approach for the ongoing lifecycle aspect of our assets to accompany the already successful "projects delivery" model for their construction. However, what we do not have in this budget are the increases needed to have an expanded streets and sidewalk maintenance and rehabilitation program. In fiscal years 2013 and 2014 we embarked on a complete conditions assessment and inventory of the roadways and rights -of -way under our stewardship. The FY 2015 budget plan will give us the information needed to evaluate the issues faced within the rights -of -way, but not necessarily the resources to care for and nurture this critical part of the physical plant. Multi -year financial planning One of the most effective tools that I have used, and seen used, with increasing effectiveness is multi -year financial planning. The benefits are many and wide ranging. When you have systems and attitudes in place to look at the estimation of your "bottom line" three years out, you can make small adjustments now that will have a big impact later. When you have a good multi -year view, you can look around the corner to make any problem a past tense instead of a looming crisis. Page iv The multi -year financial plan section has been moved forward and more pronounced in the budget herein recommended. The City of Pearland has already been incorporating such prognosis tools. This budget policy document anticipates and relies upon the upcoming FY 2015 plus two more years. The City has long had an effective capital improvements program that engages in long-range planning for major expenditures with plans, design, and construction aspects. Looking at the major funds for how they sit as of September 30, 2017 helps us look at sound operational planning between now and then. Structural Imbalance As predicted in last year's financial plan for FY 2015, we have a structural imbalance, with recurring operating expenditures greater than recurring operating revenues for the General Fund in FY 2015. The total net revenues for FY 2015 are ($3,827,478) compared to ($3,090,989) in the amended FY 2014 Budget. The drawdown of fund balance in the General Fund for FY 2015 of ($3,827,478), is comprised of $1.5 million in recurring expenditures and $2.3 million in non- recurring expenditures. For comparison, in last year's planning, the FY 2015 budget had a ($842,000) recurring net revenue. Why the difference? There was primarily one factor that was unanticipated from the prior plan: Additional employee health care cost ($1.1 million). The City has seen health care costs increase as did most business and governmental entities. Work has been completed to make health plan design changes, with employees and the City adapting to the additional cost effective October 1, 2014. As a side, the sale of surplus City Land ($1.369 million), 8.4 acres located along Beltway 8, needed by Harris County Toll Road Authority is booked for FY 2014, as Harris County Toll Road Authority completed its due diligence for the acquisition. The revenue equates to the money necessary to refresh the employee health care self-insurance fund that experienced significant claims in FY 2014. Deferral of expanding the police take-home fleet was not in last year's forecast. The City currently allows sworn police officers with certain seniority to take a City -marked patrol vehicle to and from work and on personal business, no matter where the employee lives. The program is designed to provide some additional level of visibility and responsiveness in public safety and was set to be expanded in FY 2015 at an additional City cost of $550,000. Rather than do that, given our financial vulnerability, this budget does not include the additional fleet cost, but does include an additional six sworn police officer positions. Though structurally unbalanced for FY 2015, the General Fund's Fund Balance remains above the two -month recurring operation reserves by $1.3 million and maintains a positive reserve throughout the next three years of this financial plan. The forecast shows that the General Fund will come back into structural balance in FY 2017, as shown in last year's forecast. Page v General Fund Revenue Overview General Fund Operating Revenues FY 2015 Budget by Category Transfers In 5% Miscellaneous 1% Charges for Services 22% Fines & Forfeitures 5% Licenses & \,r Permits 6% Franchies Fees 10% Other Financing Sources 2% Property Tax 21% Sales and Use Taxes 28% Sales Tax Collection History Fiscal Year Sales and Use Change Ended 9-30 Tax Receipts 2008 $ 12, 234, 799 13.9% 2009 $ 13,760,714 12.5% 2010 $ 13, 082,134 -4.9% 2011 $ 13, 331,189 1.9% 2012 $ 14, 814, 936 11.1% 2013 $ 15, 919, 784 7.5% 2014 Est. $ 17, 038, 649 7.0% 2015 Budget $ 18,063,535 6.0% 2016 Proj. $ 19,147,348 6.0% 2017 Proj. $ 20,296,188 6.0% The City's General Fund Revenue, including transfers in and other financing sources (leases), is $63.7 million. That total, excluding lease purchase proceeds and the one-time sale of property; is a 5% increase from the prior fiscal year-end estimate. This Budget includes an increase in fees for development, planning, and health services to reflect cost of services so that the safety and compliance reviews completed are paid for by the individuals requesting service, and not overly subsidized by existing residents and businesses. As part of the review of current cost of service compared to fees charged, a comparison of nearby large cities was completed showing areas where the City could competitively charge more. Because of these changes, additional revenue of $335,930 is projected. Excluding the fee increases, we are budgeting slightly less in FY 2015 than FY 2014 for licenses and permits, being conservative in anticipating future private development not keeping up quite the torrid pace recently seen. For General Fund Operations, sales tax has been our single most important revenue at 28% of operating revenue. Sales tax revenue is equivalent to approximately $0.25 of the property tax rate. Even with the sales tax growth within the General Fund (Economic Development Corporation ($8.9 million), and the City General Fund, ($18.1 million)), the total available to the General Fund does not provide adequate funding for the City to offer a healthy mix of services for our citizens and visitors. The pay-off of higher values seems close, but not yet here. With residential values of existing homes increasing and more retail with higher value sales, a solid future in three years is achievable with continued focused work. Sales tax is more volatile than property tax and needs to be regularly monitored. Reserves must be available for adjusting to unexpected fluctuations in receipts during the year. The FY 2014 budget projection of $16.8 million is off by 2.5% compared to the budget, which depending on the remaining months in this fiscal year could result in a ($420,000) difference. With the nature of Page vi Property Tax Rate Historical and Future Tax Year Fiscal Year Operations Debt Service Total Tax Rate Change 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 Budget 2015 2016 Proj 2016 2017 Proj 2017 2018 Proi 2018 2019 Pro) 0.3389 0.3455 0.2990 0.2503 0.2201 0.2201 0.2151 0 2151 0.2151 0.2151 0.2221 0.3559 0.6948 0.3289 0.6744 0.3537 0.6526 0.4023 0.6526 0 4325 0 6526 0 4325 0 6526 0.4500 0.6651 0.4700 0.6851 0.4900 0.7051 0.4900 0.7051 0.4900 0.7121 0.2321 0.5050 0.7371 0.2421 0 5050 0.7471 0.2521 0 5100 0 7621 0.2521: 0.5375 6.7896 -0.0012 -0.0204 0.0218 0.0000 0.0000 0.0000 0.0125 0.0200 0.0200 0.0000 0.0070 0.0250 0.0100 0.0150 0.0275 sales tax, we have set a target to have a more conservative 20% General Fund unencumbered cash balance through the life of this budget and multi -year financial plan. We are not completely yet there. The FY 2015 Budget includes an increase of $0.007 to the Operating and Maintenance property tax rate. The increase was included in the financial plan last year and provides $412,720 in additional revenue to reflect increased cost of services, including maintenance and operations of new capital projects like Fire Station #3, Max Road Sports Park, etc. Fiscal Year Based on latest update of budget and 5 -Year Forecast. Residential properties represent 66% or 2015-2020 Includes new debt to be issued with 20 -year maturity, level principal two-thirds of the property value tax base. Includes refunding and restructuring of $24.8 million in fiscal year 2014 The additional .007 cents adopted on the Includes debt service tax rate increases based on current 5 -Year operating tax component of the tax rate, forecast and 5 year CIP 2015-2019. equates to $10.50 on a $150,000 house and Includes operation tax rate increases based on current 5 -Year $21.00 on a $300,000 and so on. Thus, the forecast total proposed tax rate of $.7121 generates $402 for Operations and Maintenance and $887 for debt service, based on an average value of $186,000. Expenditure Overview General Fund Operating Expenditures FY 2015 Budget by Category Community Services 4% General Government 16% Public Safety 54% Local government is an operation geared to the health, safety, and welfare of its residents and visitors. For that reason, more than half (54%) of General Fund expenditures are dedicated to Public Safety (Police and EMS/Fire). For the past two years, public safety expenditures have had a double-digit growth rate, 16.8% and 14.5% in FY 2013 and FY 2014, respectively. This growth was associated with the improved coverage for EMS/Fire operations with facilities, equipment, and staffing. Overall General Fund Expenditures, including transfers out are up 1.8% in FY 2015. Operating expenditures without the transfers out are up 3.8% from FY 2014 projections. Being a "people" organization, it is not surprising that 67% of General Fund expenditures are for wages and benefits across all departments. The cost for employee health care mentioned earlier is one of the significant cost factors, but providing wages and other benefits at levels needed to Page vii recruit and retain the desired high caliber of dedicated professionals across this organization is the largest expense. The Parks and Recreation category is budgeted at $6.77 million in expenditures, lower than last year's budget of $8.64 million, which is primarily a function of our reorganization transferring functions to Public Works. The contract for rights -of -way maintenance and for City facilities and custodial management has been moved to Public Works as well, where the expenditures likewise are reflected as higher in FY 2015. One of the advantages of the transplanted duties is to allow our Parks and Recreation team to zero in on their core services. We have opportunity and need to grow new service opportunities at our new facilities coming out of the ground like Max Road and the forthcoming Shadow Creek Ranch Sports Complex. Moreover, we want to deepen our programs and services with the diverse range of our resident backgrounds, including older adult services, preparing for the steadily growing aging demographic. Finally, there are opportunities for partnership with clubs, service organizations, volunteers, other governmental agencies, and more to provide a variety of service offerings that make Pearland the desirable competitive place to be in a competitive market. We are also committed to life-long learning opportunities for our residents and public libraries can be just that, in addition to valuable community gathering places and resources for business, job -seekers, students, and seniors. We have in this budget the support for expanding the two public libraries here, in concert with Brazoria County that operates them within our buildings, including expansion of open hours during the week because of the high public demand. Our Parks and Recreation Department and other staff can partner with the library professionals to offer programs and resources to our common citizens more and more. Capital Improvements Capital improvements total $55.134 million for FY 2015. These are funded by $16.9 million of General Obligation bonds; $11.1 million of Certificates of Obligation; and $2.1 million of Water/Sewer Revenue Bonds. The City of Pearland continues to benefit from its planning and cooperation with intergovernmental support. There is $21.7 million from other funding sources, mainly from HGAC TIP funding the amount of $16.57 million for street improvements, resulting in improved mobility. Street funding for FY 2015 totals $29.6 million, followed by facility improvements of $14.1 million which makes up 79% of the FY 2015 CIP budget. The following are a few of the projects planned for this year: 1. McHard Road extension: Cullen Pkwy to Mykawa Rd - A new key extension of approximately 3.5 miles of McHard Road, from Cullen Parkway to Mykawa Road, constructing a 4 -lane, concrete, curb and gutter, divided roadway with raised medians. Includes storm sewers, outfalls and detention, traffic signals, sidewalks and related items. Design services will begin during the 4th quarter of FY 2014 with construction scheduled to begin in 2017 and completion slated for 2019. 2. Bailey Road widening - Bailey Road will be improved to a four -lane concrete curb and gutter boulevard from approximately 1,000 feet west of FM 1128 to Veterans Drive, a distance of 2.76 miles. The design of this roadway is nearing completion and is estimated to begin construction in the spring of 2015. The construction duration will take about 18 months and should be completed in the summer of 2016. 3. Shadow Creek Ranch Sports Complex - The project will entail the construction of a sports complex on 65+/- acres that will include clearing, earthwork, paving drainage, detention, utilities, lighted baseball/softball fields, a soccer field, a pavilion with restrooms Page viii and concession facilities and site amenities. Construction of this facility will begin by September 2014 with completion scheduled for September of 2015. 4. Fire Stations — Fire Station 2, located at the northeast corner of Harkey and Fite Road, is currently under design. This station will be approximately 10,700 sq. ft. and house an operation crew, two fire engines, and one ambulance. This facility is scheduled for construction in October 2014 and will be ready for starting occupancy by July 2015. Fire Station 1, currently located at the corner of Orange Street and Old Alvin Road, will relocate in 2018 to provide quicker response times. The new station will be located on McHard Road near Pearland Parkway. At approximately 8,500 sq-ft, the station will house a 24 -hour operation crew, one fire engine, and one ambulance. 5. Far Northwest Water (Reflection Bay) Treatment Plant expansion — This project will expand the existing 2.0MGD wastewater treatment plant serving the area west of SH 288 to 6.0MGD to accommodate current and future demand. Project includes addition of effluent pumping capability to provide irrigation to Shadow Creek Ranch Park. The PER for the project is nearing completion and design is scheduled to kick off in August 2014. Construction will begin after a year of design and will be complete in the Fall of 2017. Utility Enterprise Funds What can be more important besides the air than the water we need for our metaphorical Pearland garden? As Pearland continues the rapid growth pattern, staff continues the planning for the expansion of the various components of the public water -sewer utility; striving to keep pace with both the system's expansion as well as the rehabilitation of the aging portions of the infrastructure. The City's 2015-2019 CIP shows a considerable amount, $165 million, needed for expansions of wastewater treatment plants, beginning phase one of a 10MGD surface water plant, as well as rehabilitation and replacement of our current aging infrastructure. The FY 2015 budget continues the concept of growing pay-as-you-go for regular items by funding lift station rehabilitation, pigging or cleaning of water lines to ensure water quality, interior lining maintenance of storage tanks, to name a few, to ensure a sustainable system that maximizes life cycle investments. In order to operate the system, provide for debt service, cash reserves and to meet bond coverage requirements, a 4.63% revenue increase is needed, generating $1.358 million in additional revenues. The user fee revenue increase for FY 2015 was in last year's forecast. The City's last rate increase was six years ago, in October 2008. However new growth and aging plants need to be nurtured in order to have a resilient intertwined system that will provide quality service and water to our customers. Another piece of the system for our utilities is the storm water management. Pearland has made great strides with major improvements for managing in a reasonable fashion most "normal" storm events. The comparison from stories of years' past to how things are directed today exemplifies the virtuous cycle of planning, investment, execution, and maintenance. Conclusion While we can all get caught up in individual, projects and passions for the patches of ground we see most often, and while we can get into the weeds and be vexed about several voices on any topic, we understand that Pearland is a big diverse community with 110,000 residents plus visitors who appreciate their choice to be here. Pearland has great location, public schools, Page ix neighborhoods, friendly people, safe streets, and entertainment. The 2013 bi-annual statistically - valid survey of citizen perceptions bears out this strong groundwork for us to nurture to be even better: Quality of Life in Pearland Overall Excellent Good 23% 31% A 134% Fair 7% 7% 7% 89% 90% 66% 59% - 92% 58% a In Pearland 2009 ■ In Pearland 2011 Din Pearland 2013 Base: Total Sample (N=400) 25% 50% 75% 100% Don't knows = 2% or less 12 11. On a scale of excellent, good, fair, or poor, please rate the quality of life in your neighborhood? In Pea -land overall? The garden that is Pearland is big. It has well -prepared soil. It is planted with a great mix of flora that ranges from the life -sustaining to the simply aesthetic. But it is still in many ways a young garden. It is not self-sustaining and in many ways will always be interdependent with our surroundings. And our fully -blossomed community has not yet completely taken root. We have seeds of investment like the Shadow Creek Ranch Tax Increment Reinvestment Zone. One of the most successful public -private partnerships around, the TIRZ District has gone from a total valuation of $7.2 million in 1998 for the City to $1 553 billion for tax year 2013. In tax year 2029, fiscal year 2030, 100% of the TIRZ property tax revenue will come fully to the City. If it were today, it would be an additional $4.6 million in property tax revenue with our current rate. Getting to 2030 in smart fashion with the aforementioned vulnerabilities is our mission. We all —Council, staff, and the residents and businesses we serve —have a lot of nurturing left to do. From Mark Pelt to the fig and pear fruit of Wiltold von Zychlinski, Pearland has a tradition of planting and tending to the land. You and your predecessors have planted the right seeds and tilled the right areas. We now need to be on the lookout for everything that can both help and hurt our progress, from drought to flooding, from too little care to too much, from too much of one Page x thing to not enough of another. That, I hope, is what this Budget does. A City budget is a complex multi -faceted thing that has something that everyone can take issue with, but has to have an overall balance. The budget here makes sure we have staff support in the right places while paying attention to the ground beneath us and making sure the right things come out of the ground. ResgQctfully subbgitted, Clay J. earson City M nager Postscript: The annual City budget is my responsibility as City Manager to recommend but is obviously the work of many pros that know and care about the City of Pearland. In just under five months, the community and its people continue to impress. Having been through some 24 City budgets, I affirm for you that the people here are ready to meet each vulnerability we identified and anticipate the next ones, to be proactive and energetic in meeting community expectations. I want to thank Claire Bogard, Bobby Pennington, Paulette Englund, Neelie Walker, Joel Hardy, Jon Branson, and all the admin staff especially and the directors across all the departments here that make this complete package for you and us to full -fill in 2015+. Page xi THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS City of Pearland, Texas Organization Chart Office of the City Manager I Deputy City Manager Parks & Recreation City Secretary Communications Municipal Court Finance & Purchasing HR/Organizational Development I Convention & \ Visitors' Bureau Executive Assistant Management Assistant / City Engineer Assistant City Manager Public Works Operations I Traffic Operations Right of Way %Executive Manager o'f Development Services & PEDC President PEDC Water & Sewer I Facilities I Fire / Community Development Planning Building Inspections Police Chief Information Officer Fire Marshal — Animal Services / Code & Health Enforcement / IT/GIS / Strategic Initiatives CITY OF PEARLAND, TEXAS CITY MANAGEMENT Elected Officials Tom Reid Tony Carbone Scott Sherman Gary Moore Keith Ordeneaux Greg Hill Appointed Officials Clay Pearson Darrin Coker Letitia Farnie City Management Jon Branson Trent Epperson Matthew Buchanan Young Lorfing Chris Doyle Vance Riley Eric Wilson Claire Bogard Bonita Hall Lata Krishnarao Michelle Graham Kim Sinistore Andrew Fearn Sparkle Anderson Jennifer Huhn John Knight Position Mayor Councilmember, Position One Councilmember, Position Two Councilmember, Position Three Councilmember, Position Four (Mayor Pro Tern) Councilmember, Position Five City Manager City Attorney Municipal Court Judge, Presiding Deputy City Manager Assistant City Manager Executive Manager of Developmental Services and President, P.E.D.C. City Secretary Police Chief Fire Chief Director of Public Works Director of Finance Director of Human Resources Director of Community Development Director of Parks & Recreation Executive Director of Convention and Visitors' Bureau Head Librarian* Communications Manager Municipal Court Administrator Information Technology Manager *Employee of Brazoria County serving in cooperation with the City of Pearland 2 CITY OF PEARLAND, TEXAS STRATEGIC PRIORITIES PEARLAND 20/20 STRATEGIC PLAN In October 2012, the Pearland Economic Development Corporation (PEDC), along with local partners in government, education, healthcare and business embarked upon a long-term strategic community and economic development planning process in order to create a shared vision for the community's future growth and an action plan to achieve it. The Pearland 20/20 Strategic Plan is the result of months of research, public input, and feedback and oversight from the project Steering Committee. The Steering Committee included representatives from the City Council, PEDC Board of Directors, Chamber of Commerce, school districts, City staff, and other key leaders. The Strategic Plan was approved unanimously by the Steering Committee, PEDC Board of Directors and City of Pearland City Council. The nine key strategies outlined in the Strategic Plan are: 1. Marketing — Optimizing Pearland's outreach and message Maintain a focus on core competencies such as working with developers and commercial brokers, incentivizing high -quality job growth, maintain a steady intensity of retail development, and ensuring that key parcels and sites in Pearland are "shovel ready" and primed for outside investment. Enhance efforts to attract key segments of the health care and energy sectors to Pearland. 2. Mobility — Congestion management strategies Development and enhancement of high -impact road projects must continue, with priority placed on improvements to SH288, FM518/Broadway, and other state roads such as SH35. Continue to advocate for the timely design and construction of a park -and -ride facility and continue effort to secure long-term mass transit options for residents. Communicate to residents and businesses the projects being constructed or under development and the full breadth of east -west and north - south mobility options in Pearland. 3. Corridors — Planning to support high -value development Position major corridors (SH288, FM518/Broadway, and SH35) to support catalytic development. 4. Recreation & Culture — A destination for residents and visitors Ensure capital investment in funded park, recreation and trail capacity continues as scheduled and accelerate implementation of the master plans for Parks and Recreation and Trails. Creation of a parks foundation and development of a sports marketing program, along with efforts to better coordinate the arts in Pearland will be an important first step towards providing additional cultural capacity in the City. 5. Beautification — Enhancing aesthetics to fuel growth Leverage past successes into a more robust and "next level" beautification strategy in order to elevate the community's attractiveness for a wide range of audiences. The siting and replacement of power pole/lines and the feasibility of a city demolition program for distressed properties are important factors that should be considered in the beautification strategy. 3 6. Lower Kirby — Pearland's mixed -use urban district Implement the recommendations of the master plan in order to transform this site into Pearland's signature urban district; aggressive marketing of the district, consistent identity, and developing quality of life amenities for the district. 7. Multi -Use Event Center — A venue worthy of a major city A best -in -class multi -use events center in order for the city to be more competitive for employers and residents. 8. Workforce Pipeline — Enhancing local learning and training capacity Maintain a competitive labor advantage and ensure that future generations of local students are prepared for jobs that are available locally. Education and workforce providers must continually reassess systematic skills -development issues, improve partnerships, and develop programs to respond to labor force skills deficits and employer needs. Optimize education systems and align training programs with the realities of today's workplace that better position students for college and careers. 9. Image Campaign — More awareness to cultivate identity Develop a stronger identity and sense of pride among Pearlanders for their city, its assets and its future. These nine strategies are designed to take Pearland to the next level of success both as an economy and sustainable residential location. Each strategy is comprised of a variety of sub -actions that details steps and tactics necessary to further the strategic goal. City Council also held a retreat March 2014 for early budget decisions and discussions, which also included background and education from staff on certain topics as well as Policy Development that needed to be addressed. Topics for Policy Development included: 1. Finances — Paying for the City we are Becoming a. Property Tax Revenue: Ad valorem tax growth; expenditure cost containment and efficiencies b. Debt Service c. In -City Municipal Utility Districts' — property tax rebates on additional residential development 2. Quality of Life a. Cultural/Entertainment facilities potentials and parameters 3. Community Development a. Multi -family Housing 4 STAFFING LEVELS FY 2014-2015 The number of budgeted Full-time Equivalent (FTE) positions totals 695.5, a net increase of 11.5 for FY 2015: 9 in the General Fund, 1 in the Water/Sewer Fund and 1.5 in Other Funds. This is a 1.7% increase in the number of FTE positions versus a 3.3% anticipated growth in population. Seven of the 11.5 new positions are in Police. Employees by Service Area The chart below illustrates the 695.5 FTE count by Service Area. General Government is comprised of the City Manager's Office, Finance, Human Resources, Information Systems, Legal, Utility Customer Service and the City Secretary's Office, Community Services includes Municipal Court, Communications Office, and Community Development: Planning and Permits and Inspections. Public Safety includes Police, Fire and Emergency Response, Health and Code Enforcement, and Animal Services. Public Works includes Facilities and Medians/Rights-of-Way Maintenance, Custodial Services, Fleet Maintenance, Traffic Operations, Water Meter Service, Water & Sewer Services, and Engineering and Capital Projects. Parks & Recreation includes all Parks Maintenance and Activities as well as the management of the Recycling Center. Other Funds include positions funded with Special Revenues, such as Municipal Court Technology Funds, Hotel/Motel Occupancy Tax: Convention & Visitors' Bureau, and Pearland Economic Development Corporation (PEDC). City of Pearland Employees by Service Area as % of Total Fiscal Year 2015 Full -Time Equivalents Economic Development, 1% General Government, 9% Public Safety, 49% Parks & Recreation, 13% Community Services, 5% Public Works, 22% Convention/ Visitors Bureau, 1% Employees per 1,000 Population The table and graph below show the number of FTE positions per 1,000 residents. This figure excludes seasonal and temporary employees. A combination of growth in the population, re -organization, and the elimination of a position in Parks & Recreation for FY 2015, have resulted in a staffing per 1,000 population below that of FY 2014; providing for efficient operations while maintaining high quality service levels. Fiscal Year FTE Population FTE Per 1,000 Population 2010-11 616.5 94,100 6.55 2011-12 633.5 97,200 6.52 2012-13 651.5 103,800 6.28 2013-14 684.0 106,500 6.42 2014-15 695.5 110,000 6.32 6.80 6.60 6.40 6.20 6.00 City of Pearland Full -Time Equivalents (FTES) Per 1,000 Population 6.55 6.52 6.42 6.32 2010-11 2011-12 2012-13 2013-14 2014-15 5 CITY OF PEARLAND FY 2015 ADOPTED BUDGET AUTHORIZED PERSONNEL BY DEPARTMENT Function/Department Full -Time Employees Part -Time Employees FY 2015 Total Headcount FY 2015 Total FTE FY 2013 BASE FY 2014 AMENDED FY 2015 REQUEST FY 2015 ADOPTED FY 2013 BASE FY 2014 AMENDED FY 2015 REQUEST FY 2015 ADOPTED General Government City Manager 4 4 4 2 2 6 5 City Secretary 4 4 4 4 4 Finance 16 17 17 1 1 1 18 17.5 Human Resources 6 7 7 3 2 (2) 7 7 Information Systems 5 6 1 7 7 7 Geographical Information System 6 6 6 6 Legal 5 5 5 1 1 6 5.5 Utility Billing 17 18 (7) 11 4 4 4 15 13 General Government Total 57 61 0 61 8 8 0 8 ' 69 65 Public Safety Fire Department 33 84 84 19 51 51 135 109.5 Fire Marshal 6 6 6 2 2 2 8 7.0 Health & Code Enforcement 6 6 1 7 7 7 Emergency Medical Services 39 0 24 0 0 Police Department 191 195 7 202 7 7 7 209 205.5 Animal Services 9 10 10 1 1 1 11 10.5 Public Safety Total 284 301 8 309 53 61 0 61 370 340 Public Works Public Works Oper. Admin. 1.75 1.75 1.75 1.75 1.75 Facilities Maintenance 1 4 5 5 5 Custodial Services 2 2 2 2 Fleet Maintenance 7 7 7 7 7 Streets & Drainage 17 17 (1) 16 16 16 Public Works ROW 3 3 3 3 Traffic Operations 6 6 6 6 6 PW W&S Administration 5.25 5.25 5.25 5.25 Lift Stations 9 10 (3) 7 7 7 Wastewater Treatment 14.75 14.75 0.25 15 15 15 Water Production 12 15 15 15 15 W&S Distrib. & Collect. 27.5 27.5 (4.5) 23 23 23 W&S Construction 13 13 (3) 10 10 10 Public Works GIS 4 4 (4) 0 0 0 Public Works W&S ROW Mow 6 6 6 6 Water Meter Service 7 7 7 7 Public Works & Engr. Admin. 3 3 3 3 3 Engineering 12 12 12 12 12 Geographical Info. System 2 2 (2) 0 0 0 Capital Projects 8 9 9 9 9 Public Works Total 137 143 10 153 0 0 0 0 153 153 CITY OF PEARLAND FY 2015 ADOPTED BUDGET AUTHORIZED PERSONNEL BY DEPARTMENT Function/Department Full -Time Employees Part -Time Employees FY 2015 Total Headcount FY 2015 Total FTE FY 2013 BASE FY 2014 AMENDED FY 2015 REQUEST FY 2015 ADOPTED FY 2013 BASE FY 2014 AMENDED FY 2015 REQUEST FY 2015 ADOPTED Community Services Community Develop. Admin. 3 3 3 3 3 Planning 4 4 4 4 4 Permits & Inspections 13 13 1 14 2 2 2 16 15 Municipal Court* 10 10 10 2 1 1 11 10.5 Communications 2 3 1 4 4 4 Community Services Total 32 33 2 35 4 3 0 3 38 36.5 Parks & Recreation Parks & Rec. Admin. 8 7 7 1 7 7 Parks & Rec. Resource Development 2 (1) 1 1 1 2 1.5 Custodial Services 3 2 (2) 0 0 0 Facilities Maintenance 6 4 (4) 0 0 0 Parks Maintenance West 15 15 (15) 0 0 0 Parks Maintenance East 16 15 12 27 27 27 Recreation Center/Natatorium 6 9 9 49 54 54 63 36.0 Westside Events Center 2 2 2 1 1 1 3 2.5 Athletics 2 2 2 4 4 4 6 4 Youth Development 1 0 4 0 0 Aquatics 1 0 4 4 4 4 2 Special Events 1 1 1 1 1 Senior Programs 2 2 2 3 3 3 5 3,5 Recycling 2 2 2 4 4 4 6 4 Parks & Recreation Total 65 63 (10) 53 70 71 0 71 124 88.5 Economic Development 5 5 5 5 5 Convention & Visitors' Bureau 2 3 3 2 2 5 4 U. of Houston-Pearland 1 1 1 1 1 Municipal Court Security Fund 1 1 1 1 1 2 3 2 Municipal Court Juvenile Services 1 1 1 1 1 Other Funds 10 11 0 11 0 1 3 4 15 13 General Fund 473.75 498.75 9.00 507.75 131.00 139.00 0.00 139.00 646.75 577.25 Water & Sewer Fund 97.25 102.25 1.00 103.25 4.00 4.00 0.00 4.00 107.25 105.25 Total Other Funds* 10.00 11.00 0.00 11.00 0.00 1.00 3.00 4.00 15.00 13.00 Grand Total _ 585.00 612.00 10.00 622.00 135.00 144.00 3.00 147.00 769.00 695.50 *Two full-time and two part-time Municipal Court positions are funded in Other Funds. Note: Seasonal positions are not included FY 2015 BUDGET READER'S GUIDE TO THE BUDGET The Fiscal Year 2014-2015 budget document has been prepared and presented in an effort to comply with the guidelines and recommendations of the Government Finance Officers Association of the United States and Canada (GFOA) Distinguished Budget Presentation Awards Program. In order to be considered for the budget award, the following four areas must be included in the budget presentation: (1) the budget as a policy document, (2) the budget as a financial plan, (3) the budget as an operations guide, and (4) the budget as a communications device. A brief explanation of these criteria is presented below. The budget as a policy document. This involves including a statement (or statements) of budgetary policies, goals and objectives for the year and also an explanation of the budgeting process to the reader. Goals and objectives are an integral part of this document, which we believe satisfy this requirement. The budget as a financial plan. This criterion involves including an explanation of the financial structure and operations of the City. The City's major revenue sources and fund structures are defined and amplified. The budget contains an all-inclusive financial plan for all funds and resources of the City, and also includes a five-year financial forecast. Included are projections of financial condition at the end of the fiscal year, projections of financial activity, and historical comparisons. The budget also presents a consolidated picture of all operations and financing activities in a condensed format. An explanation of the budgetary accounting basis (cash basis, modified accrual basis, or other acceptable method) was employed in the development of the budget. The budget summary section, as well as the various fund and department summaries, satisfies this requirement. The budget as an operations _guide. This criterion involves explaining the relationship between organizational units (departments) and programs. An organizational chart, description of the departmental organizational structure with staffing levels, and historical comparisons of staffing levels are therefore included. Explanations of how capital -spending decisions will affect operations are offered. These issues are addressed throughout the document. The budget as a communications device. The budget document is available to the public at the City Secretary's Office in City Hall and at the Pearland Branch Libraries, as well as on the City's website. We also provide summary information suitable for use by interested citizens and/or the media. As much as possible we have avoided the use of complex technical language and terminology. Efforts are made to explain the basic units of the budget, including funds, departments or activities, and disclosing sources of revenues and explanations of revenue estimates and assumptions. This information is contained in the transmittal letter and budget summary sections. In summary, each of the above four criteria is recognized by the GFOA as an integral part of any budget document in order to convey to the reader the goals and objectives the City will address during the year, and how those goals and objectives will be met and measured. We have attempted to present these goals and objectives to the reader in such a manner that any reader, regardless of the reader's financial background or knowledge, will be able to gain a basic understanding of them. Organization of the Budget Document Transmittal Letter includes the City Manager's budget message to City Council. Introduction includes the City's Organization Chart, list of City Management, City Council Strategic Priorities, Staffing levels and Staffing Chart and Graphs, a Reader's Guide to the Budget, and the fiscal year 2015 Budget Calendar. Highlights includes descriptions and financial and staffing impact of new or expanded programs, services and buildings, as well as significant changes to existing programs and staffing, revenue enhancements, and major reductions, if any. Financial Policy includes statements assembling all of the City's financial policies into one document. These statements are the tools used to ensure that the City is financially able to meet its current and future service needs. The individual statements contained within serve as guidelines for both the financial planning and internal financial management of the City. 8 Financial Summaries and Trends includes summaries for All Funds -Revenues and Expenditures, Summary All Funds Balances and Cash Equivalents, individual analysis of Fund Balance and Cash Equivalents of Special Revenue, Governmental and Proprietary Capital Project Funds, Proprietary and Internal Service Funds, and Component Units, as well as a summary of General and Water & Sewer Funds revenue and expenditure trends. Multi -Year Forecast includes the financial forecast for the City of Pearland's major funds over a three-year timeframe, and is a comprehensive, integrated forecast of the City's Debt Service (DS) Fund, General (GF) Fund, Water and Sewer (W&S) Fund, and Pearland Economic Development Corporation (PEDC). Property Tax Section includes an overview of the City's property taxes, levy and collections for fiscal year 2015. The effective tax rate calculation as required by State law is also included. Historical Assessed Valuation, Taxes Levied and Taxes Collected, along with Tax Rate Distribution and Principal Taxpayers information are in this section. 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 a government debt to maturity graph. General Fund Section includes an overview comprised of revenue, expenditure and fund balance information. A revenue detail report is provided, followed by an expenditure summary for all general fund departments by function. Each functional area, and each department within the General Government area, begins with an organizational chart followed by a summary of expenditures by department/function and by category, a staffing summary and an overview with key budget items, goals, accomplishments, objectives, and performance measures. Enterprise Fund Section includes an overview of the Water & Sewer Fund that includes a revenue and expense summary and beginning and ending cash equivalents. An organizational chart, a report on revenue detail and an expense and staffing summary by department is followed by department overviews with key budget items, goals, accomplishments, objectives, and performance measures. This section also includes revenue debt schedules and graphs. Capital Project Funds Section includes a summary schedule of revenues and expenditures by Capital Project Fund followed by a brief description 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 Fund Section includes an overview describing each Internal Service Fund. The revenue and expense summaries. P.E.D.C. Section includes a description of Component Units, an overview of the Pearland Economic Development Corporation (P.E.D.C.), a mission statement, organization chart, a revenue and expenditure summary with fund balance, a staffing summary, goals, objectives and performance and activities measures, followed by debt to maturity schedules and graph. Appendix A includes the City's Charter Article 8, Finance, and adopted budget and tax ordinances, as well as the adopted General City, Police, and Fire Pay Plans. Appendix B includes new personnel funded and the General Fund and Water & Sewer Fund supplemental and capital requests that were not funded and those that were funded, as well as those funded from other funds. Appendix C includes an introduction to Pearland, City demographics and statistics, and area maps. Glossary Section includes the glossary and acronyms. 9 CITY OF PEARLAND FUND STRUCTURE The City accounts for revenues and expenditures based on the Fund, an accounting system used by nonprofit organizations and agencies, particularly governments. Because there is no profit motive, accountability is measured instead of profitabil- ity. The main purpose of the Fund system is stewardship of financial resources to ensure funds are received and expended in compliance with legal requirements. Funds are established to ensure accountability and expenditure for designated purposes. Revenues must be raised and expended in accordance with special regulations and restrictions. The budget is adopted and recorded in the accounts of the related fund. Total Budget All Funds General Fund Enterprise Funds Water & Sewer Solid Waste Debt Service Fund Special Revenue Funds Hotel/Motel Tax / CVB Grants - CDBG & Other Police - State Seizure & Federal Police Regional Detention UofH & UofH Capital Renewal Internal Service Funds Parks - Development, Donations, Tree Trust Municipal Court, Court Technology & Juvenile Mgt. J Traffic Impact J Sidewalk J Municipal Channel - Public Educ. & Govt' Capital Project Funds Property Liability Insurance Employee Medical Insurance Component Units P.E.D.C TIRZ Development Authority 10 BUDGET OBJECTIVES AND PHILOSOPHY BUDGET OBJECTIVES The FY 2015 budget has been prepared in an effort to clearly communicate to the citizens and staff of the City the overall policies and goals of the City Council and City Management and who we are and what we do, thereby enabling the reader to gain valuable information about the City without requiring detailed accounting or budgetary knowledge. The budget document includes descriptions of various activities and programs (departments) of the City, and comparative performance indicators for each program or activity, where available. BUDGET PHILOSOPHY Budget philosophy varies from organization to organization, depending upon the local needs and concerns of the citizens. Other factors also affect budget philosophy, such as the state of the local economy, the needs of the organization, the demands of the public for increased services, unfunded mandates and requirements of federal and state regulatory agencies. The budget prepared by the City takes a conservative perspective with regard to both revenues and expenditures. Although historical comparison and trends are very useful, current data and trends will sometimes take precedence over prior year trends. This means budgeting from a "conservative" perspective in that revenues are often anticipated either at or slightly above prior levels, unless there are other known factors that will significantly affect anticipated revenues. In addition, expenditures are also estimated conservatively (i.e., allowances are projected regarding cost increases or anticipated expenditures, such as annexation of ETJ into the City). As a result, over the years this method has resulted in substantial increases in actual fund reserves when compared to budgeted or projected fund reserves. The City continues to use this method of budgeting rather than use unreasonable projections, which could have an adverse impact on the City's reserves. BASIS OF BUDGETING AND ACCOUNTING The financial information presented in the FY 2015 budget is similar to information presented in previous budget documents. The accounting and financial treatment that applies to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. BASIS OF BUDGETING GOVERNMENTAL FUNDS The governmental fund types use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are budgeted when they are measurable and available and expenditures are budgeted in the period in which the liability is incurred, which is in accordance with Generally Accepted Accounting Principles. "Measurable" means the amount of the transaction can be determined and "available" means the collectible period. The City considers the majority of its major revenues as available when collected. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as liabilities when due. Those revenues susceptible to accrual under the modified accrual method are property taxes and other taxes, intergovernmental revenue, and interest revenue. Licenses and permits, including fines and forfeitures revenues, are not susceptible to accrual because generally they are not measurable until received in cash. The fund balance approach of governmental funds or working capital approach can be identified as current assets less current liabilities. Governmental funds budget capital outlays as expenditures, but do not budget for non -cash expenditures such as accruals for sick and vacation liabilities and depreciation. PROPRIETARY and INTERNAL SERVICE FUNDS The Water and Sewer Enterprise Fund, Solid Waste Fund, and Property Insurance Fund are budgeted using a flow of economic resources, which is similar to the accrual basis of accounting, with exceptions listed below. Available 11 balances are determined using the cash equivalent approach: cash + investments + accounts receivable + prepaid expenses — accounts payable = cash equivalent available. • 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, • 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 worksheets for its respective operations, personnel requirements, and capital outlay. The budget worksheets for departmental operations contain: 2 -prior year actuals, current year original budget, current year amended budget, current year actuals to date, current year projected expenditures, next fiscal year base budget, next fiscal year supplemental request, next year total request and % change. 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. Using the budget worksheets, each department head projects the financial needs of their department. Supplemental requests for capital, annexation, growth and development or other items that don't fit within normal operating budgets are requested and justified separately. Upon completion of the proposed budget, department heads submit their budget request to the Budget Office for review, after which the budget is submitted to the City Manager for review and approval. The City Manager meets with his direct reports to discuss and make adjustments where needed. The Budget Office prepares the revenue budget, with review by appropriate departments, Director of Finance and City Manager. Property tax revenue is budgeted using data provided in the preliminary or certified tax rolls received from the Brazoria, Fort Bend and Harris County Appraisal Districts. All other revenues are budgeted with the use of comparative financial information provided by the prior year's actual revenue, current year estimated revenue, and known factors that may affect receipt of revenue. 12 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 of 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 Revenue Service Funds, and the Economic Development Corporation Fund. 6. Operating fund appropriations lapse at year-end. 7. See the Pearland City Charter, Article 8, in the Appendix section for further budget procedures and rules for the adoption of the budget. PROCEDURE TO AMENDING THE BUDGET EMERGENCY APPROPRIATIONS: At any time in any fiscal year, the Council may make emergency appropriations to meet a pressing need for public expenditure, for other than regular or recurring requirements, to protect the public health, safety or welfare. Such appropriations shall be by ordinance adopted by the majority vote of the Council members at one special or regular meeting. TRANSFER OF APPROPRIATIONS: At any time during the fiscal year, the City Manager may approve an amendment to the budget that transfers part or all of any unencumbered appropriation balance among programs within a department, division, or office, upon written request by department heads. The City Council must approve any budget amendments that increase the appropriation for any fund. 13 BUDGET CALENDAR for FY 2014-2015 Distribution of Budget packets to Directors/Department Heads by Finance March 4 Budget Training Workshop March 5 Budget requests submitted to Finance Department with all supporting documents April 11 Preliminary revenue estimates issued by Finance for current and next fiscal year April 29 Finalize preliminary income statements for General Fund and Debt Service Fund Review with Management week of May 19 Discussion of Budget Requests with Departments May 28 — June 3 Complete and update Final Payroll information week of June 9 Review funding requests, impact on funds, pare down list June 16 — June 18 Review all funds and totals with City Manager week of June 23 Updated Water/Sewer Rate Model week of June 30 Final adjustments made and budget submitted to City Manager week of June 30 Finalize budget, write Transmittal Letter, Budget packets prepared, agenda and PowerPoint prepared June 30 — July 21 City Manager's recommended budget filed with the City Council July 28 City Council Budget Workshop #1 August 4 City Council Budget Workshop #2; including CIP August 11 Mission/Goals/Performance Measures due August 11 Schedule Public Hearing on Budget and Tax Rate August 13 City Council Budget Workshop #3 August 18 Send Notice of Effective Tax Rate to paper August 19 Budget Public Notice sent to paper August 19 City Council Budget Workshop #4 September 2 Public Hearing on the Budget and Tax Rate September 2 Public Hearing on the Tax Rate September 8 First reading of ordinance to adopt a revised current year budget and FY2014 budget September 22 Second and final reading of ordinance to amend current year budget Second and final reading of ordinance to adopt FY2014 budget September 29 Adoption of Capital Improvement Program (CIP) September 29 The City of Pearland Charter requires that the City's annual budget must be adopted by the last regularly scheduled Council meeting in September. 14 Funding Highlights ♦ General Fund ♦ Water / Sewer Fund ♦ Grant Fund Staffing Highlights ♦ General Fund ♦ Water / Sewer Fund ♦ Other Funds GENERAL FUND MAJOR FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET IT Strategic Plan $1,586,168 Pursuant to the City's 5 -Year IT Strategic Plan, the City moved forward in fiscal year 2014 with the hiring of Berry Dunn to lead the process of replacing the City's current 18 -year -old financial system, SunGard H.T.E. The City had three demonstrations on software, based on proposals received, in August, with selection and award to occur in fiscal year 2015. As such, funds are budgeted of $1,472,090 for year 1 of an 18-24 month conversion, testing, and go -live process. Also included is the addition of a Chief Information Officer (CIO) at $157,050 for 9 months for fiscal year 2015, beginning January 1, 2015. The CIO will provide vision and leadership for developing and implementing technology initiatives in support of operations and develop policy and procedures for the department, including disaster recovery. Consolidation Fire/EMS $ 487,783 Consolidation of the Fire/EMS departments began in fiscal year 2014 with training EMS personnel as Firefighters and the purchase of gear. Fiscal year 2015, phase two of the consolidation, actually merges the two departments with previous EMS personnel going on a 48/96 fire schedule as of October 2014. At this time these employees will also transition to firefighter pay and guaranteed scheduled overtime pursuant to FLSA 7K exemption for firefighters. The new 48 -hour schedule will be monitored and evaluated during the year for effectiveness and efficiency with eye towards staffing and safety. Included is $67,342 for additional firefighter training for those EMS personnel who could not participate first year. Community -wide Park Facility Openings $ 437,517 The fiscal year 2015 budget includes operating costs for completed parks projects that were in the 2007 voted bond package; Shadow Creek Ranch, Centennial, and the Max Road Sportsplex. Max Road is scheduled to open October 2014, Centennial to be completed by June 2015 and Shadow Creek Ranch by August 2015. New Fire Stations #3 and #2 $ 335,236 Fiscal year 2015 includes operating funding for both stations based on anticipated openings. In fiscal year 2015, four full-time and eight part-time Firefighter/EMS, including gear, are included to accommodate Station 3 (Broadway and Yost), which is expected to open in early 2015. Fire personnel for Station 2 (Harkey and Fite), will be hired October 2015, fiscal year 2016, although an ambulance is expected to be running out of Station 2 just prior to October. Police Personnel $ 950,003 Two Patrol Sergeants were added to provide additional first line supervision of Police Officers assigned to night shift squads, as the size of the squads has approached a number that exceeds the effective span of control for the current number of supervisors. Four Patrol Officers were added to increase the visibility and shorten the response time of Officers on the streets. New positions were added in lieu of adding take-home vehicles in FY 2015, as the priority of the City is to make available more officers. A civilian Crime Analyst will be added to the Police Investigations unit to analyze technical information, determine crime patterns and disseminate the results to the department in order to provide information to be used to make well informed decisions on where to allocate resources in combating crime. 4t*, 16 GENERAL FUND MAJOR FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET Medical Premium Increase $1,082,770 Due to a high claims cost in FY14, and anticipating this trend will continue, the self -insured medical contributions will increase for FY15 for the City and employees, based upon Option 6a reviewed with City Council in July. In order to provide a strong, yet sustainable plan for the employees, the City will provide two Kelsey Seybold plans and an HSA, eliminating the open access plan. Merit Pay and Police Step Pay $ 843,286 A 2% merit pay increase is budgeted for all employees at a cost of $750,000 in the General Fund, including benefits. Pursuant to civil service, the 2015 budget includes $93,286 for a civil service step increase of 3% on the anniversary of date of hire. Business Center Library Expansion $ 96,996 Additional rent and common area maintenance is required for the 4,000 square foot expansion of the existing Business Center Library, the busiest in Brazoria County Library System. The addition will provide a total of 10,000 square feet of library space. A total of $450,000 is budgeted in FY2014 for the design and construction of this expanded facility. Community Beautification $ 311,723 Pursuant to the Pearland Vision 20/20: A Blueprint for Pearland, funding has increased for the landscaping and maintenance of City facilities and roads and corridors, implementing new contract standards, as well as transitioning current medians/right-of-ways mowed by City staff to contract. Beautification of roadways and public spaces create or improve the image and gateway for the City as well as increases re -development and development within the City. Flashing Left Turn Arrow Program $ 138,186 Flashing amber arrow for left turns along FM 518 will improve the traffic flow along this stretch of roadway and will reduce delays for left turn traffic during peak hours. Traffic and traffic related issues are the number one concern of Pearland residents in the 2013 Citizen Survey, and has been since the first citizen survey in 2009. This flashing arrow program will be a three year project. Year 1 will cover FM 518, part of Dixie Farm Road, and part of Magnolia. Year 2 will cover FM 2234/McHard, Cullen, and SH 35. Year 3 will cover the remainder of Dixie Farm Road, Magnolia, and signals off major roadways. These funds cover Year 1. Span Wire Rebuild/Intersection Upgrades $ 192,000 The span wire intersections along FM 518 are at least 20 years old and need to be upgraded. Span wire only upgrades include the replacement of all span wire, signals, and the controller cabinet. By upgrading the traffic signals, it will reduce overtime calls and improve the look and performance of the signals. These funds will be used for the FM 518 signals at Walmart, Cullen, Woody, and Woodcreek because these locations have existing issues that cause the signals to go into "flash" mode, requiring a service call. Total General Fund Highlights $6,461,668 4t*, 17 WATER & SEWER FUND MAJOR FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET Auto Dialer Alarm System $ 231,000 The wireless remote alarm system will notify personnel of alarm events within minutes of alarm. The auto dialers will be installed at 44 lift station sites that only have visual alarm systems. TCEQ rules and regulations Design Criteria for domestic wastewater systems states that lift stations must include an audiovisual system and the system must transmit all alarm conditions through the use of an auto dialer alarm system. Rapid response time to any alarms that could result in overflows could reduce or eliminate any sanitary sewer overflows into the storm drains and receiving streams of the state. Lift Station Rehabilitation $ 500,000 The Lift Station Rehabilitation program will rehabilitate older lift stations through the replacement of pump infrastructure, refurbishment of the wet well, rehabilitation of adjacent piping, and key electronic components. Much of the rehabilitation will center on the replacement of older, above ground Gorman Rupp Centrifugal Lift Station pumps. The newer generation of pumps are submersible thus reducing noise to the surrounding areas. Pigging of Water Lines $ 300,000 The interior infrastructure in the area served by the Southeast Water Production Facility needs to be scoured to remove deposits caused by the elevated levels of organic manganese in the water produced by that facility over the years. The cleaning of the water lines will provide good quality potable water to residents and stay in compliance with TCEQ regulations. Sludge Dewatering/Hauling $ 525,000 The Far NW wastewater treatment plant has had equipment failures in the dewatering facilities. This requires additional sludge cost to get dewatered or hauled off. Far Northwest Treatment Plant cannot keep up with the sludge removal amounts. The plant is overloaded and the current dewatering machine cannot keep up with the demand. Proper sludge removal or filtering will produce quality effluent allowing the City to remain in compliance with TCEQ regulations. This additional expense is temporary, until the expansion of the plant. Analyze and Improve SCADA System $ 100,000 The current SCADA system communication network has not proven to be reliable. The current system needs to be analyzed to identify options for improvements to the system. The project will look at two aspects of the system. The first is the operational functionality of the system and the facilities to which it extends. The second is the communication network which supports the system. It is anticipated that the functionality of the system will need an upgrade which will most likely be through a new software solution. The project deliverable would be similar to a preliminary engineering report that recommends phase projects to improve the system functionality. Vactor Truck Program $ 459,026 The vactor truck purchase allows the City to establish a new rehabilitation program to clean the sewer collection system. The new program will include daily inspection, sewer line cleaning and use of the CCTV truck and vactor truck. The Jet Eye System on the vactor truck will allow the City to view, televise and record the conditions of the sewer lines while cleaning them, thus increasing efficiency. 18 WATER & SEWER FUND MAJOR FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET Quick Valve Insertion Machine $ 65,422 The Quick Valve Insertion Machine allows staff to insert valves ranging from 4 to 12 inches in -line without interrupting water service to citizens during emergencies or connection of new water lines to the system. The machine will reduce customer inconvenience, and limit the loss of water pressure while repairs are being made. With the Quick Valve Insertion Machine, the City would improve customer service and reduce water loss. During main breaks the machine will not eliminate disruption of service for everyone, however the area of water outage will be greatly reduced each time. This machine will also be utilized when contractors are connecting to the system and an isolation valve is not close to the new connection. Interior Lining for Storage Tanks $ 400,000 Water tank cleaning has a substantial impact on the physical structure and reliability of water storage tanks. Three storage tanks are in need of cleaning and interior lining protection to prevent corrosion and to stop leaks. These tanks are the elevated storage tanks at Bailey and McLean, and the ground storage tank at Garden. The work on these three storage tanks will keep them in compliance with TCEQ and American Water Works Association (AWWA) regulations. This is year 2 of a 5 year program. Longwood Street Manhole Rehabilitation $ 159,600 The existing sanitary sewer manholes along the length of Longwood Street are in need of rehabilitation due to deterioration caused by sewer gases. There are approximately 40 manholes. Wireless Read System (Backbone only) $ 304,790 By 2017, the City will have 22,000 water meters out of 33,000 that will be over 10 -years old. In anticipation of a 4 -year phased City-wide meter change out program to a wireless remote read, beginning in 2016, the City proposes the purchase of the Sensus Advanced Metering Infrastructure backbone including transceiver, installation, software, support, and project management which will allow staff to start transitioning over to the new meters and system for new development while phasing in the replacement of existing meters. The new meter will read lower water flows at 0.03 gallons per minute, thus measuring with better accuracy. ERP $ 802,797 Pursuant to the City's 5 -Year IT Strategic Plan, the City moved forward in fiscal year 2014 with the hiring of Berry Dunn to lead the process of replacing the City's current 18 -year -old financial system, Sunguard H.T.E, with award expected in fiscal year 2015. As such, water and sewer funds, pro -rata portion, are budgeted of $802,797 for year 1 of an 18-24 month conversion, testing, and go -live process. Total Water/Sewer Highlights $3,847,635 19 GRANT FUND FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET Emergency Management Performance Grant (EMPG) $ 40,863 The Texas Department of Public Safety — Division of Emergency Management issues formula grant funds to the City of Pearland Fire Marshal Department for the purpose of providing emergency preparedness resources for the citizens of Pearland. The City of Pearland utilizes these funds for personnel who coordinate the training needed by community -based organizations and agencies that provide mutual aid to the City and assist citizens with evacuation readiness, homeland security preparedness, and public safety efforts during hurricanes and other natural disasters. Funding typically covers approximately 7% - 10% of the department's personnel costs. Crime Victim Liaison $ 64,687 The Office of the Governor's Criminal Justice Division is providing grant funds toward one Crime Victim Liaison personnel. The Pearland Police Department Crime Victim Liaison provides various types of social services assistance to victims of domestic violence, theft, burglary, robbery and other crimes against persons. The Crime Victim Liaison assists Pearland residents in need with referrals to human services organizations, counseling, transportation assistance, legal aid and emergency shelter for victims of domestic violence. Funding covers approximately 95% of one person. Crime Victim Specialist $ 41,849 The Office of the Attorney General provides grant funds for Crime Victim Specialist personnel and the City has applied for this grant as an adjunct to the funds the City receives from the Criminal Justice Division. The Pearland Police Department staff provides various types of social services assistance to victims of domestic violence, theft, burglary, robbery and other crimes against persons. The Crime Victim Specialist will assist the Crime Victim Liaison with efforts to provide Pearland residents in need with referrals to human services organizations, counseling, transportation assistance, legal aid and emergency shelter for victims of domestic violence. The two years of grant funds cover approximately 90% of program costs, including personnel and minor professional development expenses. Staffing for Adequate Fire and Emergency Response (SAFER - VFF) $ 57,526 The City is in year three of a four-year grant totaling $146,802 to implement recruitment and retention efforts designed to improve the volunteer firefighter capacity of the Pearland Fire Department. This grant comes from the U.S. Department of Homeland Security, through its Federal Emergency Management Agency (FEMA). Pearland Fire Department will use the fiscal year 2015 budget for this grant to maintain volunteer firefighter recruitment coordinator staff and continue to implement its marketing program to attract new volunteer firefighters. The remaining periods of funding will be used to continue the recruitment and retention of firefighters. TxDOT/HGAC DWI Enforcement Program $ 18,719 The City has been receiving an annual allocation of funding from TxDOT through the Houston - Galveston Area Council for the purpose of covering approximately 81% of the overtime costs for officers that conduct safety inspections of drivers to prevent and enforce violations of laws designed to prohibit intoxicated driving. Bulletproof Vest Partnership (BVP) Grant $ 14,663 U.S. Department of Justice distributes matching grant funds to law enforcement jurisdictions for the purpose of assisting them with purchases of bulletproof vests for officers. Vests that are pending expiration of their traditional 5 -year warranties are eligible for replacement. The department typically replaces approximately 25 vests per year, ensuring that officers have the most effective personal protective equipment possible while in the field. Fiscal year 2015 BVP Grant allocations will be used to issue replacement vests for 51 police officers. BVP funds provide a 50% match for all eligible vests that grant funds are requested to replace. The total cost of the vests is $29,326. 20 GRANT FUND FUNDING HIGHLIGHTS FY 2015 ADOPTED BUDGET Solid Waste Recycling Equipment Grant $ 13,562 Through the Houston -Galveston Area Council, Texas Commission on Environmental Quality provides jurisdictions and non-profit organizations with grant funds for programs that foster education and awareness programs, and equipment purchases, to improve efforts to recycle solid wastes. The City will purchase 3 additional tilt hoppers for use with a previously -funded glass crusher at the Stella Roberts Recycling Center, as well as surveillance cameras and detection equipment designed to assist the Fire Marshal's Office with the enforcement of illegal dumping laws in Pearland. E. Byrne Memorial JAG Program Funding $ 10,428 The Pearland Police Department will utilize a formula -allocation of funding from the U.S. Department of Justice for the purchase of Gang Tracking Software, lighting enhancements for police motorcycles, and technology designed to aid in the digital reconstruction of accident and investigative scenes. Total Grant Fund Highlights $ 262,297 21 GENERAL FUND FISCAL YEAR 2015 STAFFING AND FTE CHANGES FY 14 Amended Headcount Full -Time 498.75 Part -Time 139 Total FY 14 Amended 637.75 FY 15 Changes Department Headcount Full -Time Part -Time FTE 498.75 69.50 568.25 FTE Position Title Justification/Services Affected Information Systems 1 1 Chief Information Officer This is a 9 -month position beginning January 1, 2015. This position will provide vision and leadership for developing and implementing technology initiatives in support of operations in order to improve effectiveness, efficiencies, service quality and development, and will develop policy and procedures for the department, including disaster recovery. These two positions will provide first line supervision of Police Officers assigned to night shift squads. The distances to be Police Patrol 2 2 Sergeants covered as well as type of calls (disturbances, major accident, pursuit, etc.) necessitate the addition of 2 to ensure an effective span of control and supervision. These four positions, funded for 8 months in FY 2015, will provide first line patrol and response. The positions will Police Patrol 4 4 Officers provide additional visibility in the community. Response time is anticpated to improve due to availability of additional Officers on the street. Police Investigations 1 1 Crime Analyst This is a 9 -month position, beginning January 1, 2015. The Analyst will collect and analyze technical crime information, determine crime patterns and trends and provide reports to the Department. The information will be used to make well- informed decisions on where to allocate resources in combating crime. Housing Enforcement Funded by CDBG Funds, this position will be used to remediate the beginning signs of slum and blight by identifying code violations, improving awareness and education of local standards, encouraging self-remediation and directing grant funds were applicable. This position will Health/Code Enforcement 1 1 and Rehabilitiation Officer also assist in administering a single-family housing rehab program for low -moderate income residential homeowners. These activities are designed to remove livability risk and promote sustainable housing conditions for eligible recipients of CDBG Funds. GENERAL FUND FISCAL YEAR 2015 STAFFING AND FTE CHANGES Department Headcount Full -Time Part -Time FTE Position Title Justification/Services Affected Permits & Inspections 1 1 Permit Clerk The workload in permits continues to increase due to new commercial, residential and population growth in the past few years. Commercial permits have increased significantly, from 85 in 2012, 55 through May of 2013, and a total of 107 for the year 2013, to 144 through May of this year. This position will help with the accuracy and timeliness of tasks, provide better customer service and support, and reduce the strain on current staff. Two Parks Maintenance Workers in Medians and Rights -of - Way mowing were moved to Public Works, with additional personnel funded within the Water/Sewer Fund, and the Parks & Recreation -1 -1 Parks Maintenance Worker former Parks Medians/ROW department was consolidated with the Parks Maintenance department to accommodate the new Parks coming on line, which resulted in the ability to reduce staffing by 1 FTE. o[ai cnanges FY 15 Base Full -Time Part -Time Total FY 15 Base 9 Headcount 507.75 139 646.75 0 9 FTE 507.75 70 577.25 WATER AND SEWER FUND FISCAL YEAR 2015 STAFFING AND FTE CHANGES FY 14 Amended Headcount FTE Full -Time 102.25 102.25 Part -Time 4.00 2.00 Total FY 14 Amended 106.25 104.25 FY 15 Changes Department Headcount FTE Position Title Justification/Services Affected 1 An additional inspector is needed to inspect grease traps and work with the pretreatment program. This will ensure all Wastewater Treatment 1 1 Utility Inspector grease traps are inspected at least twice a year and help with the pretreatment issues in the city. FY 15 Base Full -Time Part -Time Total FY 15 Base Headcount FTE 103.25 103.25 4.00 2.00 107.25 105.25 OTHER FUNDS FISCAL YEAR 2015 STAFFING AND FTE CHANGES FY 14 Amended Headcount Full -Time 11.00 Part -Time 1.00 Total FY 14 Amended 12 FTE 11.00 0.500 FY 15 Changes Department Headcount Full -Time Part -Time 11.5 FTE Position Title Justification/Services Affected Hotel/Motel Fund 045 - Convention & Visitors' Bureau 2 1 Receptionist Two part-time Receptionists to extend the Visitor Center hours to select seasonal weekend hours along with assisting in day-to-day receptionist/administrative duties on select weekdays. The purpose is to gain greater visilibility and provide the public and visitors with maps, hotel, restaurant and event information during weekends. Municipal Court Security Fund 017 - Municipal Court -- 1 0.5 PT Bailiff With the addition of a full-time Judge in FY 2014, additional dockets have been added, such as show cause hearings, additional pre-trial and juvenile hearings, additional bench and jury trails and the addition of bond forfeiture hearings, putting a strain on the full time and part time bailiffs. This new part time bailiff will help ensure the safety of the iudae riti7ens and staff o ai c:nanges FY 15 Base Full -Time Part -Time Total FY 15 Base Headcount 11.00 4.00 1.5 FTE 11.00 2.000 15.00 13.0 THIS PAGE INTENTIONALLY BLANK CITY OF PEARLAND, TEXAS COMPREHENSIVE FINANCIAL MANAGEMENT POLICY STATEMENTS ADOPTED SEPTEMBER 2011 Purpose The Comprehensive Financial Management Policy Statements assembles all of the City's financial policies into one document. These statements are the tools used to ensure that the City is financially able to meet its current and future service needs. The individual statements contained herein serve as guidelines for both the financial planning and internal financial management of the City. Municipal resources must be wisely used to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet immediate and long-term needs. These policy statements safeguard the fiscal stability required to achieve the City's objectives and ensure long-term financial health. Objectives A. To guide City Council and management policy decisions that have significant fiscal impact. B. To employ balanced revenue policies that provides 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. 27 I . ACCOUNTING, AUDITING, AND FINANCIAL REPORTING Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Provide for, prepare and present regular reports that analyze and evaluate the City's financial performance and economic condition. A. Accounting Practices and Principles The City will maintain accounting practices that conform to generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government. All City financial documents, except monthly interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosures statements will meet these standards. Monthly interim financial reports are on a cash basis and will be reported as budgeted. At year-end, the general ledger and financials will be converted to GAAP and GASB. B. Financial and Management Reporting 1. Interim Financial Reports will be provided monthly to management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. These reports will be distributed monthly by the end of each month for the prior month. 2. Quarterly, departments will report on program measures and indicators as compared to target and last year to Finance. A quarterly report will be submitted to the City Manager, highlighting significant variations. 3. As an additional independent confirmation of the quality of the City's financial reporting, the City will annually seek to obtain the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. C. Annual Audit 1. Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by certified public accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement, including the auditor's opinion, shall be filed within 180 days after the last day of the City's fiscal year. The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the end of the fiscal year. The Director of Finance shall be responsible for establishing a process to ensure timely resolution of audit recommendations. 2. Audit Committee The Mayor shall appoint or confirm the audit committee, consisting of at least three members of the City Council, with the Mayor being one of the members. The primary purpose of the audit committee is to assist City Council and the City Manager in fulfilling oversight responsibilities for financial reporting, audit processes, and effective internal control systems. The City shall maintain an Audit Committee Charter which outlines the duties and responsibilities of the audit committee. 3. Annual Financial Disclosure As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any periodic materials event notices as required by the SEC. D. Signature of Checks Pursuant to the City Charter, all checks shall have two signatures, signed by the City Manager or Mayor and countersigned by the City Secretary, or the City Treasurer, or one member of Council. City Treasurer is further defined as the Director of Finance. Signatures shall be affixed on all City 28 checks via facsimile signatures, either with a signature plate used with a check signing machine or with a secure laser check printing system. Component unit check signers are officers elected by the board, where applicable. Component unit's checks shall also have two signatures. E. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed bi-annually and updated, revised or refined as deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may be appropriate and required. Exceptions will be identified, documented, and explained to City Council and/or the City Manager. II. BUDGET AND LONG RANGE FINANCIAL PLANNING A. Balanced Budget The City Manager shall file annually, a structurally balanced budget for the ensuing fiscal year with City Council pursuant to the prevailing state and local law. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Short-term loans will be avoided as budget balancing techniques. B. Current Funding Basis (Recurring Revenues) The City shall budget and operate on a current funding basis. Recurring expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis. C. Use of Non -Recurring Revenues Non -recurring revenue sources, such as a one-time revenue remittance of fund balance in excess of policy can only be budgeted/used to fund non -recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by non- recurring sources. D. Tax Rate The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and pay its debt. 1. Homestead Exemption The City shall review the homestead exemption annually as part of the budget process. When the financial health of the City's finances and economic and market conditions of the local economy justify, the City Manager may recommend a change to the homestead exemption. In accordance with state statute, any recommended change in the homestead exemption will be presented to Council for approval prior to July 1. The total exemption percentage granted shall not exceed the state statute limitation. 2. Over -Age and Disabled Persons Exemptions The City currently grants a $40,000 exemption for persons 65 or older and for disabled persons. This amount shall remain stable during a period in which the City is considering increasing the homestead exemption. E. Pay As You Go Capital Projects The transfer from the City's General Fund and the City's Utility Fund to fund pay-as-you-go capital projects will be budgeted when financially feasible and when projects present themselves for funding. The transfer will be based on the financial health of each fund with the long-term goal of adequately funding rehabilitation. 29 F. Revenue Estimating for Budgeting 1. In order to protect the City from revenue shortfalls and to maintain a stable level of service, the City shall use a conservative, objective, reasonable and analytical approach when preparing revenue estimates. The process shall include historical collection rates, trends, development, and probable economic changes. This approach is intended to reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid -year service charges. 2. The City whenever possible, will seek outside sources of revenue, such as federal, state, and local grants, in order to leverage local dollars. 3. Estimates from grant sources will be projected only to the specific date on which the entitlement will end. 4. The Utility Fund water and wastewater revenues will be budgeted based on the average rainfall/consumption over the last three years, pursuant to the rate model. The City will anticipate neither drought nor wet conditions. G. Performance, Merit Pool, and Police Step Increases The budget shall include an amount adequate to cover an overall average performance and merit pool, as well as an amount for police step increases, as determined annually by the City Manager. This amount will be calculated for each fund, based on budgeted salaries for the year, and will be placed in a Performance and Merit Pool in each operating fund. In addition, funds may be budgeted when appropriate, to bring identified jobs up to market salary rates. H. Budget Preparation 1. Department Directors have primary responsibility for formulating budget proposals. New or expanded services should support City Council goals, City Manager priority direction and department goals. Departments are charged with implementing them once they are approved. 2. All competing requests for City resources will be weighted within the formal annual budget process. 3. Actions on items that come up throughout the year with significant financial impacts should be withheld until they can be made in the full context of the annual budget process and long-range plan, unless unforeseen circumstances present themselves. 4. Every five (5) years at a minimum or sooner as may be necessary, the city will incorporate a service needs review into the budget process to ensure the most efficient and effective use of resources. 5. Annually, the City will seek to obtain the Government Finance Officers Associate Distinguished Budget Presentation Award. The Budget will be presented in a way that not only meets the criteria of the award, but also clearly communicates the budget to the public. I. Budget Management The City Council shall delegate authority to the City Manager in managing the budget after it is formally adopted by the City Council, including the transfer of funds within departments, between divisions, and between departments. The City Manager may further delegate levels of authority for the daily operations of the budget. Expenditures/expenses are legally adopted by the fund level. Expenditures/expenses should not exceed the adopted budget, plus subsequent changes approved by the City Council. J. Amended Budget In order to preserve fund balances/ending balances based on projected revenues and expenditures/expenses for the current fiscal year, City Council will amend the annual budget for all funds, excluding capital improvements funds, as set forth in the projections. City Council will amend the current fiscal year budget annually during the budget process. 30 K. Performance Measurement Performance measures will be utilized and reported in department budgets. The City will maintain a measurement system that reports trends and comparisons to targets and previous year as a management tool to monitor and improve service delivery. L. Operating Deficits The City shall take immediate corrective action if at any time during the fiscal year expenditure and revenue re -estimates are such that "net income" is lower than budgeted. Corrective actions include: • Deferral of capital equipment purchases • Deferral of pay -as -you go capital improvements • Expenditure reductions • Deferral of certain positions • Hiring freezes • Freeze merit increases • Use of fund balance • Use of volunteers • Increase fees • Reduce work hours with subsequent reduction in pay • Eliminate positions which may require laying -off employees if there are no other vacant positions for which they are qualified. Short-term loans as a means to balance the budget shall be avoided. The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level. M. Long -Range Financial Plans 1. The City shall develop and maintain a five-year Financial Forecast for each major operating fund, in conjunction with the annual budget process. Major operating funds are as follows: • General Fund • Debt Service Fund • Water/Sewer Utility Fund • Economic Development Corporation 2. The forecast should enable current services and current service levels provided to be sustained over the forecast period. Operating impacts from completed capital improvement projects in the City's five -Year CIP shall be included in the forecast. Commitments/obligations already made that require future financial resources shall also be included. 3. The forecasts should identify impact to property taxes and utility rates. 4. Major financial decisions should be made in the context of the Long -Range Plan. The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City's goals. The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. 31 Ill. REVENUES Design, maintain and administer a revenue system that will assure reliable, equitable, diversified and sufficient revenue stream to support desired City services. A. Balance and Diversification in Revenue Sources The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. B. User Fees - General Fund 1. For services that benefit specific users, the City shall establish and collect fees to recover the costs of those services. Where services provide a general public benefit, the City shall recover the costs of those services through property and sales taxes. 2. At a minimum, the City will strive to cover direct costs. 3. User fees should be reviewed, at a minimum, every two to three years and adjusted to avoid sharp changes. 4. Factors in setting fees shall include, but not be limited to: market and competitive pricing, effect of demand for services, and impact on users, which may result in recovering something less than direct, indirect and overhead costs. 5. The City may set a different fee for residents versus non-residents. 6. User fees should be adopted by Council Ordinance and included in the Annual Fee Schedule. C. User Fees - Enterprise Funds 1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover operating expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay- as-you-go funding for capital improvements, and provide adequate levels of working capital. 2. The City may set a different fee for residents versus non-residents. 3. The Five -Year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate change considerations. 4. When necessary, the Five -Year Financial Plan (rate model) will be built around small rate increases annually versus higher rate increases periodically. D. One-Time/Unpredictable Revenue Sources 1. One-time, unpredictable revenue sources should not be used for ongoing expenses/expenditures. 2. One-time, unpredictable revenue sources will be used or one-time purchases such as increase in fund balance requirements, capital equipment purchase, capital improvements, etc. E. Revenue Collection The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City. Revenues actually received will be compared to budgeted revenues by the Director of Finance and any variances considered to be material will be investigated. This process will be summarized in the monthly financial report. (See Financial and Management Reporting.) F. Write -Off of Uncollectible Receivables (excludes property taxes, court fines and warrant) 1. Receivables shall be considered for write-off as follows: a. State statute authorizing the release of extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable. 32 b. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken. 2. Accounts shall be written -off annually near year-end. Upon approval, accounts will be forwarded to a credit reporting agency. 3. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City. IV. EXPENDITURES Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services. A. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at sufficient level to protect the City's investment, to minimize future replacement and maintenance costs, and to maintain service levels. B. Periodic Program/Services Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated. C. Purchasing All City purchases of goods and services shall be made in accordance with the City's current Purchasing manual. V. FUND BALANCE AND RESERVES Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City's credit worthiness as well as its financial position during emergencies or economic fluctuations. A. General Fund Unrestricted Fund Balance The City shall maintain the General Fund unrestricted fund balance equivalent to 2 months of recurring operating expenditures, based on current year expenditures. If the fund balance exceeds this amount, funding non -recurring expenditures in the following fiscal year may be used to draw down the balance. B. Water/Sewer Unreserved Working Capital The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue shortfalls. A cash equivalent operating reserve will be established and maintained at 25% of the current year's budget appropriation for recurring operating expenses. The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating expenses. C. Use of Fund Balance/Working Capital Fund balance/Working Capital shall only be used for emergencies, non -recurring expenditures/ expenses or major capital purchases that cannot be accommodated through current year savings. Should such use reduce balances below the level established as the objective for that fund, restoration recommendations will accompany the request/decision to utilize said balances. 33 D. Debt Service Fund Unrestricted Fund Balance The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater. E. Property/Liability Insurance Fund Unrestricted Fund Balance The Property/Liability Insurance Fund accounts for uninsured and deductible claims for the City's property and liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore the fund will maintain a balance that approximates the prior average annual expense for the last three years, excluding extra -ordinary expenses in the fund. F. Employee Benefits Fund Unrestricted Fund Balance The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund. G. Economic Development Corporation As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a fund balance of no less than 10% of budgeted sales tax revenues. H. Water/Sewer Revenue Debt Coverage Reserves Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is not issuing additional debt and 1.4 times coverage in a year where debt is anticipated to be issued. I. Bond Issuance Reserves Debt service reserves should be maintained for each bond issue as required by bond covenants. J. Contingency Fund Pursuant to the City Charter, a provisions shall be made within the annual budget for a contingency fund in an amount not more than seven percent of the total budget (General Fund) to be used in case of unforeseen items of expenditure. K. Fund Balance Classification The governmental fund financial statements will present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor certain constraints on the use of the financial resources within the governmental funds. The classifications used will be as follows: • Nonspendable: Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples include Inventories, prepaid items, and long-term receivables. • Restricted: Amounts for which constraints have been placed on the use of resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Restricted fund balances include but may not be limited to: Debt Service Reserves, Special Court Funds created by State Statute, Debt Service Funds, Hotel Occupancy Tax, State and Federal Forfeitures/Seizures, Parkland, Detention, Sidewalk, Tree Trust, and Park and City -Wide Donation revenues, University of Houston Fund, Unspent bond proceeds, Unspent grant funds, Unspent Capital Lease proceeds, and Unspent funds received pursuant to funding, developer, and/or TxDOT agreements. • Committed: Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. • Assigned: Amounts that are constrained by the City's intent to be used for specific purposes but 34 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 the City's highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance approved by the City Council at a regular City Council meeting. The ordinance must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in a subsequent period. Assignment Fund Balance: • The City Council has authorized the Director of Finance as the official authorized to assign fund balance to a specific purpose pursuant to the guidelines. Order of Expenditure of Funds: • When multiple categories of fund balance are available for expenditure, the City would typically use Restricted fund balances first, followed by Committed, and then Assigned, but reserves the right to selectively spend from any of the categories, including Unassigned based upon the individual circumstances. VI. CAPITAL EXPENDITURES AND IMPROVEMENTS Annually review and monitor the state of the City's capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. A. Capitalization Threshold for Tangible Capital Assets 1. Tangible capital items should be capitalized only if they have an estimated useful life of 2 years or more following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and have a cost of not less than $5,000 for any individual item. 2. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items (i.e.: desks, chairs, etc.). 3. To maintain adequate control over non -capitalized tangible items, items costing $1,000 - $4,999 will be monitored, tagged, and tracked through the City financial software system. 4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship of public property. B. Five -Year Capital Improvement Plan (CIP) 1. The City shall annually prepare a five-year capital improvement plan based on the needs for capital improvements and equipment, the status of the City infrastructure, replacement and renovation needs, and potential new projects. Capital projects are improvements or additions to the City's physical plant/facilities/infrastructure and become a part of the City's asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines, physical plants, etc. Capital costs typically consist of preliminary design, final design, and construction, 35 and may involve the acquisition of land or easements. For purposes of the CIP Plan, a Capital Improvement Project should generally exceed a cost of $100,000. 2. For the most part, projects in the CIP should be based upon master plans or developer agreements. This ensures that the City's CIP, which is the embodiment of the recommendations of these individual planning studies, is responsive to the officially stated direction of the City as contained in the Comprehensive Plan and supporting master plans. Examples of these supporting documents are: Water and Wastewater Modeling Plans, Thoroughfare Plan, Parks Master Plan, Trail Plan, Municipal Facilities Plan, etc. 3. For every project identified in the CIP, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed. 4. Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of CIP projects for the CIP and may suggest additions and/or changes to the plan as appropriate. Pursuant to the City Charter, the Planning and Zoning Commission makes recommendation to the City Manager. 5. The City Manager is charged with recommending a Capital Improvement Plan to City Council. The CIP shall be filed and adopted in conjunction with the annual budget. 6. Annually, through the budget process and at year-end, projects are to be reviewed. For those identified as complete, any remaining funds will close to fund balance. For those projects with identified savings, the project budget will be reduced and the subsequent savings will flow to fund balance. These funds can then be re -appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. 7. Appropriations for capital projects are for the life of the project; therefore re -appropriation of capital funding for each fiscal year for budgeted projects is not necessary. C. Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well being of the City. As a result, the City's CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the City's investment, to minimize future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth. 1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purpose. 2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which alternative is most cost-effective, which would include life -cycle costing, and provides the best value to the City. D. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High -Tech) The City shall annually prepare a schedule for the replacement of its fleet, fire trucks, and high technology capital assets. Funding for the replacement of these assets will be accomplished through the annual budget process, within the resources available each fiscal year. A variety of funding options will be explored, including but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best interest of the City. E. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements. 36 F. Pay -As -You -Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Pearland citizens. 2. The City will seek out and use intergovernmental funding sources for capital improvements in order to leverage City funding and to minimize property and utility rate impacts. G. Capital Improvements/Project Reporting A summary/status report on the City's various capital projects will be prepared monthly and available to the City Manager and to City Council. Income statements on the City's CIP funds will be prepared monthly and include budget -to -actual for each project as well as list of major contracts, expense to date, and % contract completion. VII. DEBT Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues. A. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance and to fund infrastructure improvements and additions. Debt will not be used to fund current operating expenditures. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital expenditures and capital improvements, which shall include, but not be limited to, sales tax, utility system revenues, developer fees, inter -local agreements, and state and federal grants. B. Affordability The City shall use an objective analytical approach to determine whether it can afford to issue general-purpose debt, both General Obligation and Certificates of Obligation, water/sewer debt, sales tax revenue debt, and any other financing permitted by State law. The process shall include an internal feasibility analysis for each long-term financing which analyzes the impact on current and future budgets, which would include the tax and utility rates. The process shall also include the benefits of the proposed projects. The decision on whether or not to issue new debt shall be based on the benefits of the project, current conditions of the municipal bond market, and the City's ability to "afford" new debt. In no case will the City issue general obligation debt that will require a debt service tax rate of $1.50 per $100 assessed valuation, based on a 90% collection rate, which is the maximum tax rate permitted by State law. C. Types of Long -Term Debt 1. General Obligation Bonds (GO) General Obligation bonds require voter approval and are secured by a promise to levy taxes in an amount necessary to pay annual debt service. 37 a. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond proposition. 2. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. It is the City's policy to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City's ability to assume additional debt. Circumstances in which Certificates might be issued include, but are not limited to the following. a. The City may issue CO's when there is insufficient funding on a general obligation bond - financed capital improvement. b. The City may issue CO's when "emergency" (urgent, unanticipated) conditions require a capital improvement to be funded rapidly. c. The City may issue CO's for projects when the City can leverage dollars from others to reduce the City's capital cost for a community improvement. d. The City may issue CO's for projects when there is no other adequate funding source available (ie: GO or developer funding), the project is determined to be in the best interest of the City, and where a determination is made that waiting for the next bond referendum or having a bond referendum for a small amount of money or a small number of projects is impractical and where public notice versus a voted bond referendum is deemed acceptable by the City Council. e. The City may issue CO's if it would be more economical to issue Certificates of Obligation rather than issuing revenue bonds; and f. The City may issue CO's for projects for which the City will be reimbursed by Developer (principal plus interest). 3. Revenue Bonds Revenue bonds are generally payable from a designated source of revenue. They do not require voter approval. For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall meet the bond coverage ratio as defined in the ordinance. Annual adjustments to the City's rate structures for Enterprise Funds will be made as necessary to maintain the coverage factor. If the City should issue CO's for Water/Sewer Improvements, the Water/Sewer Fund will pay the annual debt service associated with the issue. D. Debt Structures The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 30 years for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining debt repayment schedules and shall seek to retire 90% of the total principal outstanding within 20 years of the year of issuance. There should be no debt structures that include increasing debt service levels in subsequent years, with the first and second year of a bond payout schedule the exception or as special situations may warrant. There shall be no "balloon" bond repayment schedules, which consists of low annual payments and one large payment of the balance due at the end of the term. There shall always be at least interest paid in the first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year after the bond issue. Normally, there shall be no capitalized interest included in the debt structure except for debt issuances reimbursing developers for infrastructure or in the case in which the project will generate revenue, but it takes a couple of years to produce the revenue. Capitalized interest should normally not exceed 2 years. 38 The City currently has a level debt service structure. As such, unless there is growth (increased valuation, increase in number of connections, etc.) or reallocation of the tax rate to debt service, there is no room for additional debt without increasing rates. The City shall seek to begin making attempts to structure future debt issuances, where affordable, to a declining structure. The City will issue debt based on a fixed rate and will limit use of variable -rate debt due to the potential volatility of such instruments. E. Debt Refunding The City's financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless: (1) a debt restructuring is necessary; or (2) bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt or; (3) the refunding is combined with a new debt issuance. F. Interest Earnings on Debt Proceeds Debt interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued. G. Bond Elections 1. Timing of general obligation bond elections shall be determined by the inventory of current authorized, unissued bonds remaining to be sold and the Five -Year Capital Improvement Plan. 2. The total dollar amount of bond election propositions recommended to the voters should typically not exceed the City's estimated ability to issue the bonds within a 7 -year period. 3. An analysis showing how the new debt combined with current debt impacts the City's tax rate and debt capacity will accompany every future bond issue proposal. H. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing, if the interest rate environment or market/economic factors may affect the bond issue, or if the nature of the debt is unique and requires particular skills from the underwriters involved. The City shall award the bonds based on a true interest costs (TIC) basis. However, the City may award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis can satisfactorily determine the lowest and best bid. I. Underwriting Syndicates The City's financial advisor shall attempt to involve qualified and experienced firms, which consistently submit ideas to the City and financial advisors and actively participate in the City's competitive sale in its negotiated underwritings. In conjunction with the City, the City's financial advisor shall recommend the structure of underwriting syndicates, which will be optimal for the type and amount of debt being issued. J. Bond Ratings Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, as recommended by the City's financial advisor. The City will continually strive to maintain or increase the City's current bond ratings by prudently managing its funds and by reviewing and monitoring financial policies, budgets, forecasts and the financial health of the City. 39 K. Covenant Compliance The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices. L. Arbitrage Rebate Monitoring and Reporting Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on the debt. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate compliance requirement of the IRS regulation. The recordkeeping shall include tracking project expenditures, interest earned on the bonds, calculating rebate payments, and remitting any rebatable earnings to the federal government in a timely manner in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate calculations will be performed annually on all debt issues and the liability recorded for any positive arbitrage. Due to the specialized nature of the calculations, this function will typically be outsourced. M. Lease/Purchase Agreements The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and provides for attractive terms. All lease purchase agreements will be approved by City Council no matter the dollar amount. VIII. CASH MANAGEMENT AND INVESTMENTS To maintain the City's cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield. A. Investment Management 1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City's financial assets. 2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. (See City's Investment Policy and Strategy) 3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any individual or corporate member of the financial or investment community. 4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City's Investment Policy. 5. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and other such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets.(See City's Investment Policy) 6. Investments of the City shall be made with the exercise of judgment and care which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment. B. Investment Strategy The City of Pearland maintains a consolidated portfolio in which it pools its funds for investment purposes. The City's investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yields commensurate with the preservation of principal and liquidity. (See City's Investment Strategy) C. Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided. 40 D. Arbitrage Investments Investment on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive rate of return. If there is positive arbitrage, the rebatable earnings will be sent to the IRS, as necessary. E. Depository The City will select its official bank through a formal bidding process in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. The City will, at a minimum, bid depository services every five years. The City will review the financial health of the City's depository annually to include but not be limited to earnings, assets, capital, and liquidity. F. Collateralization of Deposits 1. The City shall have pledged collateral held at an independent third -party institution and evidenced by a written receipt. 2. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent of par or market value of the investments, whichever is greater. 3. Substitutions of collateral shall meet the requirements of the collateral agreement. Collateral shall not be released until the replacement collateral has been received, if the release of the collateral should result in the value being under 102 percent of par value. 4. The pledge of collateral shall comply with the City's investment policy. IX. GRANTS AND INTERGOVERNMENTAL REVENUES The City will seek, apply for, and effectively administer federal, state and local grants, which support the City's current priorities and policy objectives. The City should take advantage of opportunities to enhance service delivery through intergovernmental cooperation, shared revenues, and grants. A. Grant Guidelines 1. The City shall apply and facilitate the application for only those grants that are consistent with the objectives and high priorities identified by Council and management. 2. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs and services. 3. The potential for incurring ongoing costs, to include assumptions of support for grant -funded positions from local revenues, will be considered prior to applying for a grant. B. Grant Review Process 1. A uniform grants pre -application process will be utilized to assure the City has all the information necessary to make a decision regarding a potential grant. Information to be provided should include, but not be limited to: a. The grant being pursued and the use to which it would be placed b. The objectives or goals of the City which will be achieved through the use of the grant c. The local match required, if any, plus the source of the local match d. The increased cost to be locally funded upon termination of the grant 2. All grant agreements will be reviewed by the appropriate City staff, including Finance, Legal, HR, and the sponsoring department, to ensure compliance with state, federal, and City regulations. 3. The City Manager shall approve all grant submissions and City Council shall approve all grant acceptances over $50,000. C. Budgeting for Grant Expenditures Annually via the budget process, departments will submit for possible funding, known grant opportunities. These grant opportunities will be prioritized and ranked along with all other 41 supplemental requests. If approved, the expenditure and associated revenue will be appropriated in the Grant Fund. If there are grant opportunities that arise during the year and are received by the City, the budget will be amended via the projections, if the City can fund the local match required. D. Grant Termination and/or Reduced Grant Funding 1. In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process, unless the City is obligated through the terms of the grant to maintain the positions, services, or equipment. 2. The City shall terminate grant -funded programs and associated positions when grant funds are no longer available, and it is determined that the program no longer supports City goals and/or is no longer in the best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the positions, services, or equipment. X. FINANCIAL CONSULTANTS The City will employ qualified financial advisors and consultants as needed in the administration and management of the City's financial function. These areas include but are not limited to audit services, debt administration, delinquent tax collection attorney, and financial modeling. The principal factors in the selection of these consultants will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In no case should price be allowed to serve as the sole criterion for the selection. A. Selection of Auditors At least every seven years, the City shall request proposals from qualified firms, including the current auditors if their past performance has been satisfactory. The City Council shall select an independent firm of certified public accountants to perform an annual audit of the accounts and records, and render an opinion on the financial statements of the City. It is the City's preference to rotate auditor firms every seven years at the maximum, to ensure that the City's financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of the audit firm will be based upon the proposals received, the qualifications of the firm, and the firm's ability to perform a quality audit. However, if through the proposal and review process, management and the Audit Committee select the current audit firm, then, it is the City's preference that the lead audit partner be rotated, as well as the lead reviewer, after a maximum of seven years. B. Arbitrage 1. The City shall calculate positive/negative arbitrage on each bond issue annually. While the City is responsible to ensure that the records are in order, the calculations made, reporting completed, and filings made, the actual arbitrage calculation and reporting shall be contracted out to a qualified firm. 2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There is not a requirement for rotation. C. Delinquent Tax Collection Attorney 1. Due to the nature and expertise required, the City shall hire a delinquent tax collection attorney to collect delinquent taxes, represent the City in filing bankruptcy claims, foreclose on real property, seize personal property, and represent the City in court cases and property sales. 2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There is no requirement for rotation. 42 D. Bond Counsel 1. Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized attorneys who have developed necessary expertise in a broad range of practice areas, the City will always use a consultant for these services. Generally, bonds are not marketable without an opinion of nationally recognized bond counsel stating that the bonds are valid and binding obligations stating the sources of payment and security for the bonds and that the bonds are exempt from Federal income taxes. 2. Due to the complexity of the City's financial structure and the benefits that come with the history and knowledge of the City, the contract with Bond Counsel shall be a maximum of ten (10) years, however with a termination clause, at the discretion of the City. A contract may be renewed after a competition process in which the Council determines that continuation with the incumbent firm is in the best interest of the City. E. Financial Advisory Services 1. The City issues various types of securities to finance its capital improvement program. Debt structuring and issuance requires a comprehensive list of services associated with municipal transactions, including but not limited to: method of sale; analysis of market conditions; size and structure of the issue; coordinating rating agency relations; evaluation of and advice on the pricing of securities, assisting with closing and debt management; calculation of debt service schedules; and advising on financial management. As financial advisors to governmental entities have developed the necessary expertise in a broad range of services, the City will use a consultant for these services. 2. Due to the complexity of the City's financial structure and the benefits that come with the history and knowledge of the City, the contract with the Financial Advisor shall be a maximum of ten (10) years, however with a termination clause, at the discretion of the City. A contract may be renewed after a competition process in which the Council determines that continuation with the incumbent firm is in the best interest of the City. F. Depository Bank Pursuant to State law, the City may approve a depository contract whose term does not exceed five years. There is no requirement for rotation. The City will select its official banking institution through a formal process based on best value in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. 43 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS FY 2015 ADOPTED BUDGET SUMMARY ALL FUNDS REVENUES AND EXPENDITURES REVENUES FY2014 FY2014 FY2015 FY2013 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET Property Taxes Sales Taxes Franchise Fees Licenses and Permits Fines and Forfeitures Charges For Services Interest Income Hotel/Motel Occupancy Tax Bond/Lease Proceeds Grant Revenue Miscellaneous Other Revenue Sources $37,077,444 $38,470,634 $38,586,318 $41,560,765 $23,791,181 $26,102,052 $25,455,411 $26,985,303 $5,999,154 $6,340,215 $6,529,559 $6,916,438 $2,988,859 $2,877,117 $3,642,823 $3,922,331 $3,533,664 $3,568,281 $2,945,940 $3,105,239 $49,924,094 $51,279,667 $49,423,517 $52,931,381 $215,849 $200,682 $374,959 $278,994 $1,150,360 $1,148,088 $1,342,794 $1,383,078 $12,391,309 $31,186,539 $61,937,728 $33,062,333 $826,841 $1,345,227 $1,383,649 $576,091 $15,368,322 $16,472,690 $17,087,428 $15,925,127 $5,268,123 $8,116,365 $7,981,993 $18,996,584 TOTAL REVENUES $158,535,201 $187,107,557 $216,692,118 $205,643,664 Transfers from Other Funds $13,543,433 $12,691,859 $16,623,898 $11,654,337 TOTAL AVAILABLE RESOURCES $172,078,634 $199,799,416 $233,316,016 $217,298,001 EXPENDITURES General Government Public Safety Community Services Public Works Parks & Recreation Utility Billing Debt Service Construction' Insurance Coverage Economic Development Corporation Other2 $6,697,743 $7,630,655 $8,334,601 $10,373,879 $29,502,740 $34,670,771 $33,888,364 $35,465,648 $3,312,707 $4,353,538 $4,320,772 $3,060,665 $40,937,102 $46,517,167 $44,440,612 $50,189,646 $7,615,778 $8,896,513 $8,563,170 $6,910,155 $2,712,671 $2,538,277 $2,054,519 $1,342,418 $30,944,229 $31,697,324 $64,871,369 $38,887,129 $40,228,773 $65,758,858 $64,503,078 $55,634,653 $7,015,609 $6,845,914 $7,543,946 $8,176,248 $1,936,160 $4,586,296 $3,504,775 $3,992,815 $1,707,264 $1,231,881 $1,406,316 $1,312,953 TOTAL EXPENDITURES $172,610,776 $214,727,194 $243,431,522 $215,346,209 Transfers to Other Funds $13,543,433 $12,691,859 $16,623,898 $11,654,337 TOTAL EXPENDITURES AND OTHER USES Revenues Over/(Under) Expenditures3 $186,154,209 $227,419,053 $260,055,420 $227,000,546 (14,075,575) (27,619,637) (26,739,404) (9,702,545) 'Capital projects are budgeted for project length. Construction is based on annual funding and not dollars spent. 2Other includes expenditures for Special Revenue Funds, excluding transfers. 3Expenditures under Revenues due to use of bond proceeds and cash on hand. 45 Revenue Summary All Funds - 2015 Budget Charges For Services, 24.4% Fines and Forfeitures, 1.4% Licenses and Permits, 1.8% Franchise Fees, 3.2% Sales Taxes, 12.4% Property Taxes, 19.2% Interest Income, 0.1% Hotel/Motel Occup. Tax, 0.6% Bond/Lease Proceeds, 15.2% Grant Revenue, 0.3% Miscellaneous, 7.3% Other Revenue Sources, 8.7% Transfers from Other Funds, 5.4% Expenditure Summary All Funds - FY 2015 Budget General Government, 4.6% Transfers to Other Funds, 5.1% Other, 0.6% PEDC, 1.8% Insurance Coverage, 3.6% Construction, 24.4% Public Safety, 15.5% Debt Service, 17.0% Community Services, 1.3% Public Works, 22.0% Utility Billing, 1.1% Parks & Recreation, 3.0% 46 FY 2015 ADOPTED BUDGET SUMMARY ALL FUNDS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS FUND FY 2015 FY 2015 FY 2015 FY 2015 ADOPTED ADOPTED ADOPTED ADOPTED BEG BALANCE REVENUES EXPENDITURES END BALANCE* General Fund Special Revenue Funds Governmental Capital Project Funds Governmental Debt Service Fund Proprietary Funds Proprietary Capital Project Funds Internal Service Fund P.E.D.C. Fund FY 2015 BUDGET *Exclusive of any reserve requirements. FUND $15,532,128 $63,692,881 $67,520,359 $11,704,650 5,883,627 2,931,730 2,455,019 6,360,338 1,091,719 52,729,681 53,291,227 530,173 4,026,845 29,869,444 29,749,859 4,146,430 14,464,933 42,199,767 43,620,366 10,766,078 5,355,077 8,246,469 7,458,912 6,142,634 1,078,454 8,212,263 8,196,248 1,094,469 17,423, 544 9,415, 766 14, 708, 556 12,130, 754 $64,856,327 $217,298,001 $227,000,546 $52,875,526 FY 2015 ADOPTED BUDGET SPECIAL REVENUE FUNDS ANALYSIS OF FUND BALANCE FY 2015 FY 2015 FY 2015 FY 2015 ADOPTED ADOPTED ADOPTED ADOPTED BEG BALANCE REVENUES EXPENDITURES END BALANCE 17 Court Security 18 City Wide Donation 19 Court Technology 23 Court Juvenile Management Fund 33 Street Assessment Fund 35 Traffic Impact Improvement Fund 43 Regional Detention* 45 Hotel/Motel Tax 46 Park Donations 47 Park & Recreation Development 49 Tree Trust 55 Sidewalk 60 Police State Seizure 62 Federal Police 101 Grant 111 Community Development 140 University of Houston 141 U of H Capital Renewal 145 Municipal Channel TOTAL *No activity in Regional Detention Fund 43 $105,835 $57,208 $99,497 $63,546 57,477 23,250 22,000 58,727 5,687 65,510 66,665 4,532 53,656 38,322 44,229 47,749 672,121 1,800 91 673,830 2,920,225 1,393,078 819,213 3,494,090 83,556 81,140 80,000 84,696 772,977 51,100 118,532 705,545 69,309 45 69,100 254 244,863 5,240 67,224 182,879 125,764 20,100 54,100 91,764 26,770 15 26,785 25,860 262,297 276,959 11,198 43 313,794 313,794 43 339,955 339,915 40 240,109 8,376 248,485 479,375 270,500 83,700 666,175 $5,883,627 $2,931,730 $2,455,019 $6,360,338 47 FY 2015 ADOPTED BUDGET GOVERNMENTAL CAPITAL PROJECT FUNDS ANALYSIS OF FUND BALANCE FUND FY 2015 ADOPTED BEG BALANCE FY 2015 ADOPTED REVENUES FY 2015 ADOPTED EXPENDITURES FY 2015 ADOPTED END BALANCE 50 Capital Projects General 68 Capital Projects -CO 2001 70 Capital Projects Mobility GO 2001 200 Capital Projects -CO 2006 202 Capital Projects -GO 2007A 203 Capital Projects -GO 2009 TOTAL $417,107 61,548 75,841 3,596 805,296 (271,669) $1,091,719 $3,835,500 10,928,569 37,965,612 $52,729,681 $3,884,372 10,956,770 75,841 805,296 37,568,948 $53,291,227 $368,235 33,347 3,596 124,995 $530,173 FY 2015 ADOPTED BUDGET PROPRIETARY FUNDS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS FUND FY 2015 ADOPTED BEG BALANCE* FY 2015 ADOPTED REVENUES FY 2015 ADOPTED EXPENSES FY 2015 ADOPTED END BALANCE* 30 Water & Sewer Fund 31 Solid Waste Fund TOTAL *Net of any reserve requirements. $14,074,705 390,228 $35,583,118 6,616,649 $37,017,108 6,603,258 10,362,459 403,619 $14,464,933 $42,199,767 $43,620,366 $10,766,078 FY 2015 ADOPTED BUDGET PROPRIETARY CAPITAL PROJECT FUNDS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS FUND FY 2015 ADOPTED BEG BALANCE FY 2015 ADOPTED REVENUES FY 2015 ADOPTED EXPENSES FY 2015 ADOPTED END BALANCE 42 Utility Impact Fee Fund 44 Shadow Creek Impact Fee 67 W & S Revenue Bonds 301 Water/Sewer Pay As You Go CIP 302 MUD 4 Capital Program TOTAL 3,162,186 171,721 922,021 387,697 711,452 4,760,368 556,186 2,705,415 224,500 3,438,770 623,018 2,949,746 424,947 22,431 4,483,784 104,889 677,690 187,250 689,021 $5,355,077 $8,246,469 $7,458,912 $6,142,634 48 FY 2015 ADOPTED BUDGET INTERNAL SERVICE FUND ANALYSIS OF FUND BALANCE FUND FY 2015 ADOPTED BEG BALANCE FY 2015 ADOPTED REVENUES FY 2015 ADOPTED EXPENSES FY 2015 ADOPTED END BALANCE 95 Property Liability Insurance 99 Medical Self -Insurance TOTAL *Net of Debt Service Reserves FUND $84,004 $994,450 $1,390,375 $6,821,888 $1,374,360 $6,821,888 $100,019 $994,450 $1,078,454 $8,212,263 $8,196,248 $1,094,469 FY 2015 ADOPTED BUDGET P.E.D.C. ANALYSIS OF FUND BALANCE FY 2015 ADOPTED BEG BALANCE FY 2015 ADOPTED REVENUES FY 2015 ADOPTED EXPENDITURES FY 2015 ADOPTED END BALANCE 15 Economic Development Fund TOTAL $17,423,544 $9,415,766 $14,708,556 $12,130,754 $17,423,544 $9,415,766 $14,708,556 $12,130,754 49 General Fund and Water & Sewer Revenues, Expenditures and Other Sources Trends for Fiscal Year 2015 General Fund revenues and other sources are projected to increase from $63,245,053 in FY 2014 to $63,692,881 in FY 2015, an increase of $447,828 or 0.7%, mainly due to an increase in Property Tax, Sales Tax, and TIRZ Administration Fees. Five Year Revenue Trend $ in millions $65.00 $55.00 $45.00 $35.00 $25.00 $15.00 $5.00 $(5.00) $63.25 $63.69 FY 2011 FY 2012 FY 2013 FY 201 FY 2015 Revenue Sources for FY 2015 Transfers 5% Other Sources, 2% Miscellaneous: 1% Charges for Service: 22% Fines & Forfeitures: 5% License & Permits: 6% Franch-se Fees 10% Property Taxes, 21 % Sales Tax: 28% General Fund Current Property Taxes are expected to increase from a projected $11,901,823 in FY 2014 to $13,104,208 in FY 2015, an increase of $1,202,385 or 10.1%, due to new development, revaluation and an increase in the operating property tax rate of .007, from .2151 to .2221, for increased cost of services, as well as costs for new capital projects, such as Fire Station #3 and Max Road Sports Park. Other Taxes, primarily composed of sales taxes, are estimated to increase from a projected $17,038,649 in FY 2014 to $18,063,535 in FY 2015, an increase of $1,024,886 or 6.0%. The sales tax increase is the result of the improvement in the local economy and increased consumer confidence. Employment in the Houston MSA grew 4.3% for the 12 months ending September 2014; adding 120,700 jobs. 50 Franchise Fees are expected to increase from a projected $6,264,559 in FY 2014 to $6,646,438 in FY 2015, an increase of $381,879 or 6.1%, due to anticipated growth in Electric, Cable Television and Sanitation Fees from new development and an increase in garbage rates. Licenses & Permits are estimated to increase from a projected $3,642,823 in FY 2014 to $3,922,331 in FY 2015, an increase of $279,508 or 7.7% mainly due to new/increased fees. The budget, to be conservative, maintains single family and commercial permits at similar levels to FY 2014. Fines & Forfeitures are expected to increase from a projected $2,945,940 in FY 2014 to $3,105,239 in FY 2015, an increase of $159,299 or 5.4%; taking part in the State Warrant Round -Up.. Charges for Services are estimated to increase from a projected $12,828,870 in FY 2014 to $14,077,727 in FY 2015, an increase of $1,248,857, or 9.7%. There is an increase of $957,319 due to growth of assessed valuation in the TIRZ, of which the City receives 64% of the taxes for services. Miscellaneous Revenue is anticipated to decrease from a projected $2,329,940 in FY 2014 to $611,309 in FY 2015. The decrease is mainly due to the sale of land along Beltway 8 in FY 2014. Inter/Intra Governmental Revenues decrease from a projected $3,865,462 in FY 2014 to $2,975,094 in FY 2015, a decrease of $890,368 or -23.0% mainly due to a decrease in transfers from capital project funds as TXDot reimbursements on audited joint street projects were used to fund pavement and sidewalk rehabilitation. No reimbursement is expected in FY 2015. Other Financing Sources is budgeted at $1,187,000 for FY 2015 and will be obtained through capital lease proceeds to fund the purchase of a new financial software system, replacing the current 20 -year old system. 51 CITY REVENUES - FIVE YEAR TRENDS GENERAL GOVERNMENTAL REVENUE BY SOURCE 100% - 90% - 80% - 70% - 6D% - 50% - 4D% - 30% - 20%- - 2011 2012 2013 2014' 2015" o Other ■ Inter -Gov't Revenue ['Franchise Fees ■ Charges for Services ■ Fines and Forfeitures GI Licenses and Permits O Sales/Other Taxes • Property Tax (General & Debt Service Funds) *2014 Projected **2015 Adopted Budget O m 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 ASSESSMENT VALUE 2011 2012 I 2013 2014 2015 3O 25 O 20 O SALES TAX REVENUE Genera' Fund & PEDC 15 10 - 5- 0 _ $25.3 $26.8 2011 2012 2013 2014 2015 52 GENERAL FUND EXPENDITURES General Fund expenditures are anticipated to increase from a projected $66,336,042 in FY 2014 to $67,520,359 in FY 2015, an increase of $1,184,317 or 1.8%. The increase is mainly due to an increase in cost of medical, compensation, as well as new positions added in fiscal year 2015. New positions added for fiscal year 2015 result in a net increase of 9 full-time equivalent positions. Of the new positions, 8 full-time are in Public Safety, 1 in Information Systems for 9 months, and 1 Permit Clerk. One Parks Maintenance Worker position is eliminated with the continuation of contracted services. The positions in Public Safety include 2 Sergeants for the Patrol Unit funded for 12 months and 4 Police Patrol Officers funded for 8 months, 1 Crime Analyst, and 1 Housing Enforcement and Rehabilitation Officer. Employee medical insurance claims increased 10.3% from $5.0 million in FY 2013 to $5.5 million projected in FY 2014, and are anticipated to increase another 6% in FY 2015, to $5.8 million. The City made significant plan changes in FY 2015 as a strategy to keep medical claim increases to a minimum. Historical Operating Expenditures as % of Total - General Fund FY 2011 -FY 2013 Actuals FY 2014 Projected & FY 2015 Adopted Budget 100% f ■ 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Actual Projected Adopted if ■ Parks & Recreation o Pu bli c Works ■ Community Services o Public Safety DGeneral Government 53 WATER AND SEWER FUND REVENUES Water and Sewer Fund revenues are projected to increase by 9.5%, or $3,094,754, from a projected FY 2014 amount of $32,488,364 to $35,583,118 in FY 2015. The increase is mainly attributable to an increase in the consumption of water and sewer, with a continued residential and commercial growth, as well as a 4.63% revenue increase, generating an additional $1.4 million. Five -Year Water and Sewer Revenue Comparison by Source $18 $15 E $12 a E $9 69 $6 $3 $0 • _ ,♦ • • ■ - • • FY2011 FY2012 FY2O13 FY2014 FY2015 Sale of Water Sewer Revenues t Services Charges —e— Transfers In Others *Other includes Interest, Grants, Lease Proceeds, Miscellaneous. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Historical Revenues as % of Total - Enterprise Fund FY 2011 -FY 2013Actuals FY 2014 Estimate & FY 2015 Adopted Budget FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Actual Projected Adopted ❑ Lease Proceeds • Transfers In • Interest Income • Other Misc. Income • Other Service Charges ❑ Sewer Revenues ❑ Sale of Water WATER AND SEWER FUND EXPENSES 54 Expenses for the fund are anticipated to increase by $5,202,395, or 16.4% from $31,814,713 in FY 2014 to $37,017,108 in FY 2015. Excluding other requirements, expenses are projected to increase by $5,914,496, or 19.9%, going from $29,760,194 to $35,674,690. A 21.5% increase is anticipated in Other Requirements, from $12,061,801 in FY 2014 to $14,654,216 in FY 2015 due to a $1.0 million pay-as-you-go for capital, $64K towards the replacement of the City financial software, and a $678K increase in annual debt service. Water & Sewer Fund Comparison FY 2014 -FY 2015 Expenses by Department $16000000 $14000000 $12000000 - $10000000 $8000000 $6000000 $4000000 $2000000 $0 C's ❑ 6y 4 Co G .. ^9 'Q !; r a �P��� wsr - �frA Sr-'6G�a 'sf��� 6.-c '• C� i��s• ��o sfo - 94�v �rT �4 �� °h �-00,_ 6o'J, dz�79• 7s iJj� iNd p' roi r 51. Ors. '% �% O ❑ FY2014 Projected ■ FY2015 Adopted 100% 90% 80% 70% 60% 50% 40% 30% -77 20% 10% -V 0% FY 2011 Actual FY 2012 Actual Historical Expensesas% of Total- Enterprise Fund FY 2011 -FY 2013 Actu als FY 2014 Projected & FY 2015 Adopted Budget FY 2013 FY2014 FY2015 Actual Projected Adopted ROW Mowing* Administration' •GIS ■Lift Stations ['Utility Customer Svcs' • Construction O Distribution & Collection •Water Production ['Wastewater Treatment Other Requirements" *Utility Customer Services includes Water Meter Services. Prior to FY 2015, Administration was distributed throughout three departments; in FY 2015, Facilities Maintenance, Custodial Services and ROW Mowing were moved from the Parks Department, some of which are in the General Fund. 55 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS tW% %, r. i s 9 56 CITY OF PEARLAND MULTI -YEAR FORECAST FISCAL YEARS 2014 - 2017 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 does this by building upon the proposed 2014-2015 budget and 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, it is a prediction, based on a set of well -reasoned assumptions, upon which policy and strategy may be formulated. The forecast is a vital component of the City's financial management strategy. OVERVIEW The Debt Service, General Fund, Water & Sewer Fund and PEDC forecasts form the "core" of this document. The DS Fund accounts for the issuance of debt and provides for the payment of debt principal, interest and tax rebates to in -city municipal utility districts. In this fund an ad valorem (property) tax rate and tax levy are required to be computed and levied, which will be sufficient to produce the money to satisfy annual debt service requirements. The GF is the general operating fund of the City and is used to account for all financial activity not reflected in other funds. The fund consists of the following major departments: General Government, Public Safety, Parks & Recreation, Public Works, and Community Services. The W&S Fund includes water and sewer system operations and is operated in a manner similar to private business enterprises, where services to the public are financed primarily through user charges. This fund consists of the following major functions: Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection, Construction, Meter Services, and Billing and Collections. The PEDC, established in 1995 by the voters under the Texas Development Corporation Act of 1979, provides guidance and funding for the operations of the City's economic development program, and provides business incentives to support and promote the growth and diversification of the City's economic base. It is important to note that the numbers in these multi -year forecasts are estimates based on various assumptions and are not representation of fact. The picture reflected in this forecast portrays a scenario if all assumptions hold true. Therefore, the importance of the forecasts lies not in the numbers, but in the discussion it encourages on the policy issues and strategies that can be implemented in the event these scenarios become reality. 57 Based upon these assumptions, the forecast shows that the City will be able to accomplish the following: ♦ Fund existing services at current service levels ♦ Meet current and future anticipated debt service obligations ♦ Fund a Multi -Year Capital Improvement Program and associated operating expenditures ♦ Meet cash reserve and bond coverage requirements ♦ Meet a 10% reserve policy in the DS Fund ♦ Operate and maintain new, and existing City facilities ♦ Maintain business incentives to attract capital investments to the City However, in order to do so, ♦ The total tax rate would need to increase by $0.042, from the fiscal year 2014 rate of $0.7051 to $0.7471 per $100 valuation by fiscal year 2017. Additional Increases are anticipated in fiscal years 2018 and 2019 associated with planned capital improvements approved by voters in 2007 and the 2015-2019 CIP. The tax impact analysis done for the 2007bond referendum showed an impact of $.0750 and an additional $0.055 cents to complete projects from the 2001 referendum, for a total tax rate increase of 0.13 cents. ♦ Revenue increases of 4.63% are needed in fiscal year 2015 in the water/sewer fund. Additional Increases are needed in fiscal years 2016 and 2017 of 5.55% and 9.06% respectively by in order to meet cash reserve and bond coverage requirements. Structural Imbalance The City's General Fund for years 2015-2016 shows that the fund policy requirement of 2 months is met, but also shows a structural imbalance, meaning that recurring expenditures exceed recurring revenues; however shows that the fund policy requirement of 2 months is met. This is mainly due to the completion of capital improvement projects with significant operations and maintenance expenditures such as the opening of fire station #2 and #8, the expansion of Tom Reid Library and improvements to various parks and streets. By 2017 the General Fund is balanced. Strategies will need to be put in place now to minimize or prevent further erosion in the imbalance in FY 2016. The forecast also shows that the General Fund cannot support a pay-as-you-go CIP program of any magnitude. Street and sidewalk rehabilitation is funded at $770,000 for FY15 and FY16, less than the prior $1.1 million per year. The City will need to find a strategy to infuse monies into this program to ensure maintenance of existing infrastructure. The forecast does not assume State legislative changes to Property Taxes or Appraisals, nor assumes any future Federal or State mandates. If these were to occur during the Three -Year period, there could be an adverse impact. FORECAST METHODOLOGY As part of the formulation of these forecasts, the forecast methodology includes estimating the future values of revenues and expenditures. The forecast provides an estimate of how much revenue will be needed/required in order to meet expenditures and reserve and bond coverage requirements over the forecast period. The value of forecasts is in estimating whether, given assumptions about financial policies and economic trends, the City will have sufficient resources to meet the resource requirements of ongoing, planned or mandated programs. In the City's forecasts, there are a mixture of methodologies, including historical and factual information, knowledge of anticipated events, and judgment. The methodologies incorporate information gathered on anticipated population growth and building permits. Anticipated sales tax from retail sales, anticipated valuations, and other variables were identified to try to minimize the risk of overstating or understating revenue. Much like revenue, the expenditure projections for the General Fund and Water Sewer Fund are based on historical trends, anticipated events, assumptions about the future, and other judgments staff deemed appropriate. Salary projections are based on anticipated merit and salary adjustments, and benefits were broken out separately to account for the aberrant behavior of certain benefits, such as TMRS and health care benefits. The City may attempt to enact some controls to prevent the anticipated growth of operating expenses, but such 58 controls are assumed in the plan. The Debt Service Fund expenditure forecast is based upon current principal and interest debt service payments based on the City's Five -Year CIP and, future debt issuance, MUD rebates. INDIVIDUAL FUND OVERVIEWS Tax Rate In fiscal year 2015 the adopted tax rate of $0.7121 allocates $0.2221 or 31% to the General Fund and $0.4900 or 69% to the Debt Service Fund. The chart below presents the total tax rate required to meet obligations and the allocation between Debt Service and O&M. The General Fund tax rate increase is limited to the O&M effective tax rate plus 8%. By fiscal year 2017, the total tax rate is $0.7471, 32% to the General Fund and 68% to the Debt Service Fund, an additional increase of 9% to the General Fund and a 3% increase to the Debt Service Fund. The Debt Service Fund tax rate increase from fiscal year 2015 is $0.015, and the General Fund tax rate increase is $0.02. Tax Rate ❑General Fund ❑ Debt Service Fund $0.4900 $0.2151 2014 $0.4900 $0.2221 2015 $0.5050 $0.2321 2016 $0.5050 $0.2421 2017 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 and pending fiscal year 2014 GO and CO issuance. All new debt issued totaling $88.275 million from 2014-2017 is assumed to be issued with a 20 -year maturity level principal payment. The outcome of any major projects bid at a later date, which may not be incorporated into this forecast, will be incorporated into future forecasts. In order to fund obligations and implement the fiscal year CIP, the Debt Service tax rate will need to increase by $0.015 from the fiscal year 2015 tax rate of $0.4900 to $0.5050 in fiscal year 2016. Additional increases are projected in the long-term with $0.05 increase by fiscal year 2018 and $0.0275 increase by fiscal year 2019. The Debt Service total tax rate for fiscal year 2019 is projected at $0.5375. From fiscal year 2015 to fiscal year 2017, total revenues are anticipated to increase 6% to 8% per year. Fiscal year 2015, the City is above the 10% reserve policy. The 2015 ending fund balance is projected to be $4.1 million, $1.2 million over a 10% reserve. As such, the City plans to draw down fund balance in 2016 to use reserves on hand in order to minimize the impact to the taxpayer. For all fiscal years through 2017, the fund balance remains above the reserve policy and by 2017 the DS Fund ending balance is above the reserve policy by $841 thousand. Possible uses of these funds could be to lower the tax rate or absorb new debt from a new voted bond referendum. General Fund The General Fund meets reserve requirements; however, cannot fund current services and anticipated operating expenditures from completed CIP projects in years 2015-2016. The fund is structurally imbalanced, whereby recurring expenditures exceed recurring revenues. By 2017, the General Fund is in balance. The policy reserve requirement of 2 months recurring operating expenditures grows from $10.34 million in fiscal year 2015 to $11.36 million by fiscal year 2017, an increase of $1.06 million. In order to fund services and meet fund balance policy requirements, the O&M tax rate will increase from $0.2221 in 2015 to $0.2421 by 2017, a $0.02 increase, though limited by truth -in -taxation laws. Full-time equivalents in the General Fund will increase from 571.75 in fiscal year 2014 to 577.25 as for fiscal year 2015. Full-time equivalents are projected to increase to 613.25 by fiscal year 2017, an increase of 41.5 positions or 7.3% over the three-year period or 2.4% annually. Population is expected to increase 3.2% annually, not including the day -time or weekend populations from continued retail development. General Fund Full Time Equivalents 620 610 600 590 580 570 560 550 577.25 571.75 594.25 613.25 FY 2014 FY 2015 FY 2016 FY 2017 An increase of 21 positions from 2015 - 2017 are associated with completed CIP for base services and growth. The CIP staff additions include 10 for Fire Station #2 in 2016, 10 for Fire Station #8 in 2017, and 1 for Independence Park Phase I in 2017. The remaining 15 positions are built in for base growth which include 4 scheduled police officers per year. Operating expenditures from completed CIP total $1.1 million in 2016, increasing to $1.5 million in 2017. Fiscal year 2016 includes Fire Station #2, a full year of Centennial Park, Tom Reid Library Expansion, Kirby Drive Extension, and Industrial Drive Realignment, to name the major impacts. Property and Sales Tax are a major revenue component funding these expenditures. Revenues from current property tax, as a percent to total revenues, are 18% in fiscal year 2014. It increases to 21% in fiscal year 2017 due to increases in the O & M tax rate and valuation and revenue from the TIRZ goes from $6.8 million in 2014 to $9.8 million in 2017. This revenue is needed to fund increasing cost, and new or enhanced services. Sales tax receipts, as a percent to total revenues, remains relatively stable at 26.6% in 2014 to 26.9% in 2017. The City is projected to maintain a modest increase in sales tax in fiscal year 2015 through 2017; a 6% increase is projected each year, mainly due to continued development down Highway 288 and throughout the City in general. 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 is needed in 2015 of 4.63% to meet cash reserve ratios and to have smaller rate increases annually versus large ones periodically. Revenue increases of 5.55% and 9.06% for 2016 and 2017 are needed due to plant expansions and maintenance of infrastructure. The utility system users generate the revenues that support the system. Annual water and sewer charges by 2017 total $38.7 million, an increase of $6.5 million from fiscal year 2015, and include growth in the number of connections, as well as two revenue increases needed. The growth in the number of connections average 2.6% annually over the multi -year forecast. Total expenditures increase to $41.4 million, up from $37 million in fiscal year 2015. Debt service increases over the forecast period, from $10.7 million in fiscal year 2015 to $13.9 million in fiscal year 2017. The revenue increases for bond coverage generates pay -as -you go funding, such that by 2017 pay -as -you go totals $4.2 million versus $1.0 million in 2015. 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 PEDC can fund its current operations, as well as provide incentives to attract capital investment to add to Pearland's tax base and to bring new jobs to the City. Through the 2017 forecast period, the ending fund balance is projected to be $4.9 million in 2017, a decrease of $10.4 million or 68% from the $15.4 million in fiscal year 2013 due to the $6,556,900 series 2010 bond payoff in 2015 as well as $8.3 million for improvements to the SH288 corridor pursuant to the 20/20 strategic plan. Sales tax revenue is a major component of funding for the Corporation. Revenues from sales taxes increase by 12.5% through the forecast period, from $8.4 million in fiscal year 2014 to $9.5 million in fiscal year 2017. For each year of the forecast, sales tax revenues are 95% of the total revenue each year. The available balance can be used to fund infrastructure projects. RECOMMENDATIONS Maintain recommended fund balance and cash reserve requirements. Be selective about future service additions. Continue emphasis on efficient use of existing resources. Continue emphasis on cost containment measures. Continue marketing efforts in order to expand the tax base — property and sales tax. Continue to review capital projects timing in order to build when needed and not before. Continue to look at other funding sources for capital improvements to leverage City dollars such as grants, developer agreements, inter -local agreements, etc. Identify strategies to increase pay-as-you-go funding for maintenance of existing infrastructure. CONCLUSION The proposed forecast is conservative and only includes developments that are anticipated based on current knowledge. If certain economic development projects are successful and come to fruition, or if new developments not currently known take place, then this forecast will substantially change. This forecast will be updated annually as any new developments that will impact revenue or expenditures are identified as "concrete," or likely to happen. wwr 61 There are external factors outside of the City, such as the legislature, anticipated TxDOT funding of capital projects, weather, that could impact the forecast and significantly affect the City's ability, despite 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 was to provide City Council and management a prudent financial plan in order to make decisions to benefit our current and future residents. 62 MULTI -YEAR BUDGET 2014-17 DEBT SERVICE DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 REVENUES Property Taxes Property Taxes Delinquent Taxes Penalty & Interest MUD AnnexationCurrent Tax MUD Annexation Delinquent Tax Total Property Taxes 24,770,799 240,117 196,378 685,777 5,424 26, 286, 916 198,166 199,413 28, 046,481 210,295 199,781 30, 782, 940 224,372 213,153 32,623,422 246,264 233,950 25, 898,494 26, 684, 495 28, 456, 557 31, 220,465 33,103, 636 Miscellaneous Revenue Lease Income - UofH 786,076 775,398 763,475 750,039 731,799 Interest Income 20,036 36,561 36,000 36,500 36,500 Unrealized Capital Gain (Loss) (740) MUD Annexation 1,160,897 Total Miscellaneous Revenue 1,966,269 811,959 799,475 786,539 768,299 Bond Proceeds Bond Proceeds on Refunding Total Bond Proceeds Transfers Transfers from Fund 30 Transfers from Fund 30 for MUD 4 Transfer in From Fund 302 Transfer in From Fund 203 Transfer in From Fund 43 Transfer in From Fund 10 Total Transfers 33, 498, 000 277,127 33, 498, 000 277,127 277,127 277,127 277,127 182,040 179,440 176,710 173,850 7,711 5,000 10,443 161,445 159,272 156,844 154,160 150,454 461,726 618,439 613,411 607,997 601,431 Total Revenues 28,326,489 61,612,893 ' 29,869,444 32,615,001 34,473,366 63 MULTI -YEAR BUDGET 2014-17 DEBT SERVICE DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 EXPENDITURES Miscellaneous Services Arbitrage Services Total Miscellaneous Services MUD Rebates MUD Rebates Total MUD Rebates Bond Payment Current Debt Service Principal Current Debt Service Interest Refunding Future Debt Issuances General Obligation 2014 - 20 General Obligation 2015 - 20 General Obligation 2016 - 20 CO's Series 2014 -20 CO's Series 2015 - 20 CO's Series 2016 - 20 Fiscal Fees Bond Issuance Costs Escrow Agent/Issuance Total Bond Payment Short -Term Note Current Lease/Purchase (P&I) Future Lease/Purchase Total Short -Term Note 27,300 29,475 33,880 36,380 38,880 27,300 29,475 33,880 36,380 38,880 4,057,682 4,307,495 4,713,417 5,077,569 5,414,408 4,057,682 4,307,495 4,713,417 5,077,569 5,414,408 11,125, 000 10,475, 000 10, 510, 000 10, 985, 000 10, 680, 000 12, 543, 211 12, 711, 216 12,164, 795 11, 690, 615 11, 221, 315 (283,622) (238,430) (235,805) 921,654 936,469 923,094 1,810,970 1,627,875 1,910,898 481,015 438,693 422,279 1,188,124 1,068,060 265,499 10,225 11,475 12,475 13,475 14,475 315,563 33,182,437 23,678,436 56,695,691 23,806,317 26,824,916 27,897,690 912,730 1,196, 208 1,196, 245 929,640 762,747 912,730 1,196, 208 1,196, 245 929,640 762,747 Total Expenditures 28,676,148 62,228,869 29,749,859 32,868,506 34,113,725 Revenues Over(Under) (349,659) Expenditures (615, 976) 119,586 (253,505) 359,641 Beginning Fund Balance 4,992,479 4,642,821 4,026,845 4,146,431 3,892,926 Ending Fund Balance 4,642,821 4,026,845 4,146,431 3,892,926 4,252,567 10% Reserve Requirement Amount over 10% Reserve DS Tax Rate DS Tax Rate Change Debt Issuance General Obligation Certificates of Obligation Total 2,867,615 2,873,087 2,974,986 3,286,851 3,411,372 1,775,206 1,153, 758 1,171, 445 606,075 841,194 0.4900 0.4900 0.4900 0.5050 0.5050 0.0200 0.0150 11, 575, 000 16, 890, 000 17, 370, 000 15,125, 000 4,625,000 11, 070, 000 2,415,000 9,205,000 16,200,000 27,960,000 19,785,000 24,330,000 64 MULTI -YEAR BUDGET 2014-17 GENERAL FUND DESCRIPTION Actual 2012-13 Projected Adopted 2013-14 2014-15 Projected 2015-16 2016-17 Revenues Property Taxes Sales Taxes Franchise Fees Licenses & Permits Fines & Forfeitures Charges for Service Miscellaneous Transfers in Other Financing Sources Total Revenues Expenditures General Government Public Safety Community Services Public Works Parks & Recreation O&M for CIP Total Operating Expenditures Transfers Out Total Expenditures Revenues Over/(Under) Expenses Beginning Fund Balance Ending Fund Balance 11,178,950 11,901,823 13,197,208 15,919,785 17,038,649 18,063,535 5,758,776 6,264,559 6,646,438 2,988,859 3,642,823 3,922,331 3,333,675 2,945,940 3,105,239 12,567,692 12,828,870 13,984,727 717,581 2,329,940 611,309 3,764,560 3,865,462 2,975,094 1,179,413 2,426,987 1,187,000 14,841,176 19,147,348 6,890,710 4,426,701 3,198,396 15,374,531 557,424 3,064,347 634,315 16,371,961 20,296,188 7,144,106 4,559,502 3,294,348 16,477,224 574,147 3,156,277 2,637,500 57,409,291 63,245,053 63,692,881 68,134,948 74,511,253 6,697,743 8,334,601 10,373,879 29,407,660 33,660,791 35,389,548 3,312,707 3,936,686 2,949,771 7,741,495 9,379,884 10,486,794 7,224,818 8,239,889 6,773,623 9,417,652 35,524,480 3,068,402 10,839,608 7,085,285 1,144,867 9,149,802 39,301,040 3,178,084 11,064,208 7,519,890 1,524,433 54,384,423 63,551,851 65,973,615 67,080,294 71,737,456 1,973,712 2,784,191 1,546,744 1,842,211 2,173,677 56,358,135 66,336,042 67,520,359 68,922,505 73,911,133 1,051,156 (3,090,989) 17,571,961 $18,623,117 (3,827,478) $15,532,128 (787,557) $11,704,650 600,120 $10,917,094 18,623,117 $15,532,128 $11,704,650 $10,917,094 $11,517,214 Ending Fund Balance Less Policy Requirement Excess funds available over policy General Fund Debt Service Fund Total Tax Rate 15,532,128 9,450,047 6,082,082 11,704,650 10,338,499 1,366,150 10,917,094 11,517,214 10,931,114 11,395,645 62,342 148,450 $ 0.2151 $ 0.2221 $ 0.2321 $ 0.4900 $ 0.4900 $ 0.5050 $ 0.7051 $ 0.7121 $ 0.7371 $ 0.2421 $ 0.5050 $ 0.7471 wwr 65 MULTI -YEAR BUDGET 2014-17 GENERAL FUND REVENUE DESCRIPTION Actual Projected 2012-13 2013-14 Adopted 2014-15 Projected 2015-16 2016-17 Property Taxes Current Taxes Delinquent Taxes Penalty & Interest In Lieu of Property Taxes MUD 5 Total Property Taxes Sales Taxes Sales Taxes Mix Drink Taxes Total Sales Taxes Franchise Fees Gas Electric Telephone Cable Sanitation Total Franchise Fees Licenses & Permits Building Permit Platting Fees Beer Permits Moving Permits Peddlers & Solicitors Health Certificate Fees Wrecker Permits Building Plan Check Fee Occupancy Permits Demolition Permits Bldg. Site Work Permit Alarm Permits Health -Registration 1 Yr. Health -Registration 2 Yr. Sign Permits Ambulance Permit Taxi Cab Permit Temporary Structures Recordation & Courier Fee Miscellaneous BP Plan & Zone Adjustment Garage Sale Permits Culvert Permits Animal Licenses Foster Home Inspection Mowing Lien Electrical Permits Plumbing & Gas Permits Mechanical Permits Reinspec. Fee/Inspection Fire Alarm Fire Protection Fire Sprinkler Fire Sprinkler -Alteration Fireworks Irrigation Swimming Pool Dirt Grading Permit Total Licenses & Permits 10, 874, 381 122,012 100,009 82,349 199 11,539,447 83,012 110,000 168,170 1,194 12, 808, 458 93,000 120,000 175,750 14,147, 573 97,650 126,000 184,538 15, 639, 367 102,533 132,300 193,764 11,178,950 11,901,823 13,197, 208 14, 555, 760 16, 067, 963 15, 742, 794 16, 833, 524 176,991 205,125 15, 919, 785 17, 038, 649 18, 063, 535 17,843,535 220,000 18, 914,148 20, 048, 996 233,200 247,192 19,147, 348 20, 296,188 230,038 285,497 2,755,125 2,927,365 287,691 281,155 1,204,283 1,329,060 1,281,639 1,441, 482 5,758,776 6,264,559 6,646,438 294,062 3,083,733 272,721 1,404,174 1,591,748 302,884 311,970 3,207,082 3,335,366 280,903 289,330 1,460,341 1,518,755 1,639,500 1,688,685 6,890,710 7,144,106 1,238,710 107,739 19,845 4,100 4,555 84,282 4,530 801,431 7,900 1,350 39,209 41,002 3 (75) 12,620 14,250 4,643 600 9,199 275 21,600 36,225 360 33,645 1,850 (2,254) 115,913 149,024 156,447 8,465 5,839 790 9,216 174 50 18,547 35,300 1,500 2,988,859 3,642,823 3,922,331 4,540,001 4,676,201 1,675,514 114,313 21,000 3,900 4,355 80,000 4,500 871,267 7,500 1,300 90,585 39,209 500 13,000 18,650 2,463 1,700 9,000 275 23,000 38,000 500 32,000 1,950 144,575 185,216 179,400 7,260 2,678 2,300 11,453 150 150 18,000 35,660 1,500 1,835,000 177,180 24,000 4,100 4,500 133,250 4,500 859,800 8,000 1,300 69,516 45,000 13,000 18,650 3,500 1,200 9,000 275 23,000 38,000 800 32,000 1,950 153,735 195,725 180,690 7,260 3,500 2,500 10,000 250 150 18,500 41,000 1,500 2,390,050 2,461,752 182,495 187,970 24,720 25,462 4,223 4,350 4,635 4,774 137,248 141,365 4,635 4,774 885,594 912,162 8,240 8,487 1,339 1,379 71,601 73,750 46,350 47,741 13,390 13,792 19,210 19,786 3,605 3,713 1,236 1,273 9,270 9,548 283 292 23,690 24,401 39,140 40,314 824 849 32,960 33,949 2,009 2,069 158,347 163,097 201,597 207,645 186,111 191,694 7,478 7,702 3,605 3,713 2,575 2,652 10,300 10,609 258 265 155 159 19,055 19,627 42,230 43,497 1,545 1,591 66 MULTI -YEAR BUDGET 2014-17 GENERAL FUND REVENUE DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Fines & Forfeiture Fines & Forfeitures Child Safety Child Safety -Harris Co. Commercial Carrier Fines Time Efficiency Animal Cruelty Omnibase State/Service Fee Recoup Total Fines & Forefeitures Service Charges Ambulance Service Fee Mud/Ems/Fire Collections Strategic Ptr Agrmt/Fire,Ems False Alarm Fee Arrest Fees Clear. Letter Fee Subpoena Offense Report Copies Accident Report Copies Other Copies SRO Equipment SRO Personnel Non -Emergency EMS Transport Non -Emergency EMS Service Training Tuition Training Recycling Animal Shelter Fees Events & Programs Facility Rentals Swimming Pool Fees Natatorium Recreation Center Rentals Recreation Center Memberships Facility Rental - U of H Special Event Permit Fee Miscellaneous Engineering Inspect Fee TIRZ Administration Fee Permits Inspection Fee Traffic Impact Analysis Total Service Charges Interest Interest Income Unrealized Capital Gain(Loss) Total Interest Intergovernmental County Total Intergovernmental Miscellaneous Building Rent Other Victims Program Street Light Charges Recycle Revenue N.S.F. Fees Plat Copies Reproduction/Xerox Copies 3,126, 349 24,109 5,263 76,978 (6,269) 300 16,696 90,249 3,333,675 2,945,940 3,105, 239 3,198, 396 3,294,348 2,755,000 24,651 5,350 70,000 (5,508) 350 16,225 79,872 2,904,000 24,800 5,350 75,000 (5,808) 350 17,325 84,222 2,991,120 25,544 5,511 77,250 (5,982) 361 17,845 86,749 3,080,854 26,310 5,676 79,568 (6,162) 371 18,380 89,351 2,832,968 77,384 256,834 60,750 3,910 420 63 84 6,234 84,545 644,243 2,020 5,600 4,380 3,716 46,146 479,240 117,217 6,889 99,422 61,639 1,128, 900 2,940 150 1,250 269,420 6,351,358 10,220 9,750 2,610,000 78,715 271,963 62,000 5,495 475 150 100 6,410 80 88,500 659,486 7,000 4,000 3,000 47,000 477,645 116,050 24,000 133,045 40,000 1,194,192 900 50 3,850 123,515 6,847,349 13,400 10,500 2,854,300 78,342 336,000 65,000 5,495 475 150 100 6,450 88,500 703,594 7,000 4,000 3,000 47,000 495,591 105,250 24,000 39,357 134,270 1,222,500 900 150 4,500 120,000 7,614,803 13,500 10,500 2,939,929 80,692 356,160 66,950 5,660 489 155 103 6,644 3,028,127 83,113 377,530 68,959 5,830 504 159 106 6,843 91,155 93,890 752,846 805,545 7,210 4,120 3,090 48,410 510,459 108,408 24,720 40,538 138,298 1,259,175 927 155 4,635 123,600 8,943,663 13,905 10,815 7,426 4,244 3,183 49,862 525,772 111,660 25,462 41,754 142,447 1,296,950 955 159 4,774 127,308 9,813,567 14,322 11,139 12, 567, 692 12, 828, 870 13, 984, 727 15, 542, 908 16, 651, 588 52,477 1,586 82,974 84,000 86,520 89,116 54,063 82,974 84,000 86,520 89,116 2,844 2,844 17,180 6,911 86,129 67,667 3,645 28 1,244 18,040 7,000 63,904 59,373 7,000 18,095 7,000 50,000 52,953 5,000 1,200 1,200 18,638 7,210 51,500 54,542 5,150 19,197 7,426 53,045 56,178 5,305 1,236 1,273 67 MULTI -YEAR BUDGET 2014-17 GENERAL FUND REVENUE DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Sale Of Property Waiver Of Encroachment Jail Phone Ambulance Permit App. Fee Suspense Revenue Sign Revenue Insurance Reimbursement Miscellaneous MUD Annexation Total Miscellaneous 76,655 1,775,259 28,000 28,840 29,705 1,500 1,000 1,000 1,030 1,061 793 4,450 4,450 4,450 4,584 4,721 1,095 27,263 22,012 22,500 23,175 23,870 43,142 29,933 233,213 257,795 337,111 375,000 286,250 89,759 660,674 2,246,966 527,309 570,904 488,031 Grant, Issuance, Transfers From Fund 15 From Fund 18 From Fund 30 From Fund 31 From Fund 42 From Fund 50 From Fund 67 From Fund 68 From Fund 70 From Fund 101 From Fund 301 From Fund 302 Transfer From Fund 202 Transfer From Fund 203 From Fund 116 Transfer From CDBG From Fund 109 Transfer From Fund 200 Transfer From Fund 201 Total Grant, Issuance, Transfers Other Financing Sources Capital Lease Proceeds Total Other Financing Sources 151,438 113,792 119,482 123,066 126,758 21,000 927,817 935,000 1,190,100 1,225,803 1,262,577 146,794 150,665 272,032 146,785 151,189 155,724 109,974 11,274 50,372 51,883 53,440 263,715 132,293 218,786 225,350 232,110 685,502 278,498 288,095 296,738 305,640 17,227 21,844 489,081 236,513 191,107 196,840 202,745 83,929 93,947 96,765 99,668 19,763 22,431 23,104 23,797 395,692 1,044,922 406,495 506,398 546,202 562,588 579,466 7 43,663 45,450 107,787 111,021 114,351 79,889 39,355 3,764,560 3,865,462 2,975,094 3,064,347 3,156, 277 1,179,413 2,426,987 1,187, 000 634,315 2,637,500 1,179,413 2,426,987 1,187,000 634,315 2,637,500 Total Revenues 57,409,291 63,245,053 63,692,881 68,231,209 74,501,319 68 MULTI -YEAR BUDGET 2014-17 GENERAL FUND EXPENDITURES DESCRIPTION Actual Adopted Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 General Government City Council City Manager Human Resources City Secretary Legal Information Systems Information Technology Geographic Information Systems Finance Other Requirements Library NEW POSITIONS New Lease/Purchases Total General Government Public Safety Administration Patrol Investigations Community Sery Support Jail Commercial Vehicle Enfcmt SRO Traffic Enfcmt/Motorcycles Special Investigations Training Police (Total) Animal Control Fire Administration Fire Fire Marshal Emergency Management Health/Code Enforcement Emergency Medical Services NEW POSITIONS Total Public Safety Community Services Community Development Admin. Planning Permits & Inspections Health/Code Enforcement Animal Control Communications Municipal Court NEW POSITIONS Total Community Services 102,643 104,632 106,575 108,166 109,783 673,544 1,051,905 731,787 743,230 762,166 710,583 875,312 788,203 803,915 820,060 293,686 322,340 334,026 338,978 347,863 646,482 689,447 696,870 752,825 770,765 2,809,040 2,108, 000 1,499,347 1,354,791 1,460,836 231,712 237,844 244,154 1,818,822 1,894,138 1,988,872 2,009,968 2,087,675 963,548 1,203,488 2,301,815 1,657,266 1,681,060 133,645 732,503 384,979 383,129 386,960 60,032 205,181 309,739 6,697,743 8,334,601 10,373,879 9,348,501 9,079,605 1,169, 332 9,723,103 1,675,342 756,933 1,614,495 899,852 208,284 1,090,677 795,567 517,522 76,847 1,233,475 10, 704, 643 2,267,411 985,142 1,899,446 1,052,890 219,649 1,146,159 1,009,512 408,588 104,894 1,313,100 12, 065, 685 2,296,597 849,774 1,972,524 1,141,957 230,605 1,175, 948 913,934 384,176 98,258 1,343,394 1,371,402 12, 427, 371 12, 756, 438 2,300,853 2,363,274 845,821 868,408 2,031,377 2,083,446 1,156, 073 1,187, 851 237,504 244,197 1,208,063 1,241,676 920,778 946,837 396,536 407,541 99,241 100,233 18,527,952 21,031,809 22,442,558 22,967,011 23,571,304 779,096 752,269 771,346 1,003,376 1,028,759 1,056,547 6,410,733 7,216,264 9,919,982 9,898,078 12, 769, 306 640,011 656,179 709,900 720,463 740,326 43,059 47,421 39,362 39,756 40,153 495,274 510,788 526,029 3,785,906 4,709,118 234,357 480,488 29, 407, 660 33,660,791 35,389,548 36,151,481 39,955,498 268,175 263,747 809,206 392,863 636,652 327,896 614,169 446,542 346,657 995,115 403,562 752,572 336,984 655,254 310,676 415,862 1,111,829 434,718 676,686 291,268 423,561 1,138, 086 434,106 694,574 86,807 298,909 433,005 1,169, 486 442,733 713,828 120,122 3,312,707 3,936,686 2,949,771 3,068,402 3,178,084 Public Works Public Works Engineering Admin. 266,032 277,611 309,363 320,421 329,516 Public Works Operations Admin. 159,418 483,758 153,178 156,972 160,837 Facilities Maintenance 21,781 985,347 933,369 950,110 Custodial Services 317,089 324,589 327,144 Fleet Maintenance 390,524 423,276 484,998 480,933 494,805 Streets & Drainage 4,204,505 4,872,224 4,215,851 3,871,529 3,926,976 Right -of -Way Maintenance 731,463 741,474 751,560 69 MULTI -YEAR BUDGET 2014-17 GENERAL FUND EXPENDITURES DESCRIPTION Actual Adopted Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Service Center Traffic Operations & Maintenance Engineering & Capital Projects Capital Projects Geographic Information Systems Engineering NEW POSITIONS Total Public Works 'arks & Recreation Administration Resource Development Recreation Center/Natatorium Westside Event Center Parks Maintenance - West Parks Maintenance Facilities Maintenance Custodial Services Athletics Special Events Senior Programs Youth Development Aquatics Recycling NEW POSITIONS Total Parks & Recreation O&M FOR CIP Personnel Services Total CIP O&M SUBTOTAL Transfers Total Transfers 201,109 133,044 174,911 176,660 148,427 637,909 945,875 1,137, 980 1,116, 792 1,134, 692 720,618 824,337 841,635 864,756 888,417 168,931 247,800 992,448 1,150,178 1,134, 979 1,165, 858 1,197,130 58,589 120,122 7,741,495 9,379,884 10, 486, 794 10, 211, 942 10, 429, 735 945,743 1,179,704 629,096 645,690 662,933 197,630 129,494 143,475 147,222 1,566,720 1,813,781 2,220,330 2,306,594 2,520,508 190,158 205,799 219,762 227,624 233,015 917,297 950,358 1,170,830 1,259,662 2,381,229 2,563,123 2,671,570 861,083 859,889 337,155 357,028 260,443 333,879 335,591 348,022 355,685 251,756 274,359 280,034 283,555 287,969 201,137 231,160 209,128 216,163 220,982 167,521 217,877 155,586 142,052 141,223 146,929 148,810 199,390 216,711 227,736 235,235 240,833 58,589 120,122 7,224,818 8,239,889 6,773,623 7,175, 000 7,609,649 315,364 829,503 430,269 1,094,164 1,144,867 1,524,433 54, 384, 423 63, 551, 851 65, 973, 615 67,100,193 71, 777, 003 1,973,712 2,784,191 1,546,744 1,842,211 2,173, 677 1,973,712 2,784,191 1,546,744 1,842,211 2,173, 677 TOTAL EXPENDITURE 56,358,135 66,336,042 67,520,359 68,942,404 73,950,680 70 MULTI YEAR BUDGET 2014-17 GENERAL FUND O & MI NEW PERSONNEL DESCRIPTION Adopted 2015-16 2016-17 Cowart Creek Diversion Independence Park Ph 1 Centennial Park Ph 2 Shadow Creek Ranch Trail Green Tee Terrace Trail Tom Reid Library Expansion Fire Station #2 Fire Station #8 Max Road Fite Road Smith Ranch Road Expansion (CR 94) Bailey Road (Veterans to FM 1128) Kirby Drive Extension Hughes Ranch Road (CR 403) Old Alvin Rd Widening (Plum to McHard) Old Alvin Rd Rehab. (Mc Hard to Knapp) Industrial Drive Realignment 8,200 8, 200 764 76, 045 76,118 4,170 2, 930 90, 382 90, 382 84, 796 84, 796 33, 059 26, 886 26, 886 13, 286 13,286 5,593 21,186 25, 886 8,613 17,226 10,697 4, 807 6, 750 1,563 3,126 Total $315,364 $430,269 CIP Personnel Services Independence Park Ph 1 Number of FTE Fire Station #2 Number of FTE Fire Station #8 Number of FTE $829, 503 10 $25, 400 1 $854, 388 $214,376 10 Total Number of FTE $829,503 $1,094,164 10 11 Base Personnel General Government Public Safety Community Services Public Works Parks Base Personnel Increase Number of FTE 0 1 4 4 1 1 1 1 1 1 438,342 900,886 7 8 Total Personne/ Increase Number of Total FTE 1,267,845 1,995,050 17 19 71 WATER AND SEWER FUND REVENUE MULTI -YEAR BUDGET 2014-2017 DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Charges for Service Water/Sewer Charges 27,517,962 28,162,068 30,710,669 33,215,838 37,165,980 Sanitation Billing Fee 352,482 366,594 376,752 399,053 409,290 Connection Fee 165,288 158,000 162,740 167,622 176,003 Water/Sewer Tap Fee 415,949 426,500 490,465 426,677 438,990 Late Payment Fee 464,253 430,000 443,000 456,290 469,979 Meter Set Fee 2,400 5,025 3,600 1,500 1,500 Curb Stop Replacement Fee 161 161 161 1,040 1,040 Grease Trap Fee 55,925 34,500 35,000 34,000 34,000 Reconnect Fee 32,500 27,000 27,810 28,644 29,504 Miscellaneous 557 200 200 200 200 Total Charges For Service 29,007,477 29,610,048 32,250,397 34,730,865 38,726,486 Miscellaneous Revenue NSF Fees 10,175 7,800 8,300 8,300 8,300 Reimbursements 43,674 413 Miscellaneous 290,994 116,186 105,500 105,500 105,500 MUD Annexation 166,122 Total Miscellaneous 510,966 124,399 113,800 113,800 113,800 Interest Interest Unrealized Capital Gain Total Interest 39,639 (2,285) 80,960 48,700 33,594 31,730 37,354 80,960 48,700 33,594 31,730 Interfund Transfers From Fund 42 1,554,226 1,568,732 1,709,713 1,708,445 2,706,656 From Fund 44 736,313 624,612 623,018 622,047 887,903 From Fund 301 55,000 From Fund 10 218,961 235,491 235,491 242,556 249,832 Total Interfund Transfers 2,509,500 2,483,835 2,568,221 2,573,048 3,844,392 Other Financing Sources Sale of Property Miscellaneous Capital Lease Proceeds Total Other Financing Sources 20,103 54,122 141,038 135,000 9,000 135,000 458,000 27,742 27,742 139,050 143,222 161,141 189,122 602,000 166,792 170,963 Total Revenues 32,226,438 32,488,364 35,583,118 37,618,097 42,887,371 72 MULTI -YEAR BUDGET 2014-17 WATER & SEWER FUND EXPENSE AND CASH EQUIVALENTS DESCRIPTION Actual Projected Adopted Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Public Works Administration 487,849 497,606 507,558 Lift Stations 901,210 1,055,744 1,645,383 1,413,603 1,191, 711 Wastewater Treatment Plant 3,795,774 4,929,313 4,445,055 4,509,387 4,597,678 Water Production 6,334,431 8,202,045 8,496,521 8,524,050 8,338,904 Distribution and Sewer Collectio 2,169,471 2,228,570 2,759,088 1,966,468 2,023,922 Construction 1,054,607 1,034,829 1,058,769 869,902 900,490 G I S 244,451 247,952 Water Meter Services 1,456,022 1,485,142 1,514,845 ROW Mowing 428,666 437,239 445,984 Information Systems G I S 243,121 245,552 248,008 Utility Billing 2,712,671 2,054,519 1,342,418 1,367,151 1,205,419 Other Requirements 13,543,857 12,061,741 14,654,216 17,041,890 20,460,726 Total Expenses Revenues Over(Under) Expenditures Beginning Cash Equivalents Reserve for Debt Service Ending Cash Equivalents 30,756,471 31,814,713 37,017,108 38,357,991 41,435,245 1,469,967 673,651 (1,433,990) (739,894) 1,452,126 11,931,087 13, 401, 054 14, 074, 705 12, 640, 715 11, 900, 821 1,568,545 1,929,503 2,278,256 2,322,782 2,933,028 11, 832, 509 12,145, 202 10, 362, 459 9,578,039 10, 419, 918 Bond Coverage — 1.4 1.43 1.56 1.50 1.45 Cash Reserve Ratio — 25% 38% 28% 25% 25% Number of Connections Growth in Connections Revenue Increase Needed 34,731 35,612 36,516 37,441 2.54% 2.54% 2.53% 0% 4.63% 5.55% 9.06% Debt Issuance W/S Revenue Bonds $2,143,400 $30,157,273 $43,294,536 73 MULTI -YEAR BUDGET 2014-17 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DESCRIPTION Actual 2012-13 Projected 2013-14 Adopted 2014-15 Projected 2015-16 2016-17 Revenues Sales Tax Interest Income Intergovernmental Miscellaneous Total Operating Revenues Expenditures Operating Operating Transfers Bond Payments Inventory Capital Outlay Total Operating Expenditures Revenues Over/(Under) Expenses Other Financing Sources (Uses) Capital Transfers Out Incentives Total Other Financing Sources Net Change in Fund Balance Beginning Fund Balance (Before Reserves) Debt Service Reserves Debt Pay-off (Cumulative) Ending Fund Balance $7,871,396 40,811 438,326 $8,416,762 69,000 71,588 446,412 $8,921,768 45,000 12,000 436,998 $9,189,421 30,327 12,000 460,000 $9,465,103 21,721 12,000 460,000 $8,350,533 $9,003,762 $9,415,766 $9,691,748 $9,958,824 $1,152,608 2,460,617 2,045,585 2,464 $1,472,441 199,122 2,032,500 5,000 147,320 $1,809,301 204,971 8,602,270 5,000 955,000 $1,843,491 215,220 1,419,957 5,000 4,205,000 $1,894,495 225,981 1,425,757 5,000 4,248,000 $5,661,274 $3,856,383 $11,576,542 $7,688,667 $7,799,233 2,689,259 (784,450) ($784,450) 5,147,379 (1,210,326) (1,880,014) ($3,090,340) (2,160,776) (1,408,500) (1,723,514) ($3,132,014) 2,003,080 (3,500,000) (1,945,514) ($5,445,514) 2,159,592 (3,500,000) (2,380,514) ($5,880,514) 1,904,809 $13,461,696 (665,254) (3,041,757) 2,057,039 $15,366,505 (665,254) (4,725,109) (5,292,790) $17,423,544 (3,442,434) $12,130,754 (3,720,922) $8,688,320 $11,659,494 $12,033,181 $12,130,754 $8,688,320 $4,967,398 74 FY 2015 ADOPTED BUDGET PROPERTY TAX COLLECTIONS OVERVIEW The City's property tax is levied each October 1 on the certified assessed value as of January 1 for all real and personal property. The appraisal of property is the responsibility of the Brazoria, Fort Bend and Harris County Central Appraisal Districts, as the City lies in all three Districts. Appraisals may be challenged through various appeals and, if necessary, legal action. The City is permitted by the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general government services including the payment of principal and interest on general obligation long-term debt. In tax year 1998, TIRZ #2 was formed, which is the Shadow Creek Ranch development. Taxes assessed and collected by the participating entities over and above the base value of the property upon creation of the TIRZ are deposited to the benefit of the TIRZ to support improvements within the TIRZ. The City contracts with Brazoria County for the billing and collection of property taxes. The budget, as filed, is based on preliminary values from all three counties. The net taxable value based on values used total $7,600,947,459, an 8.5% or $598.2 million increase over the current adjusted tax roll. Estimated new value added to the roll totals $246,059,569 representing 41.1% of the increase with the remaining coming from revaluation on existing property of $352,121,846 or 58.9% of the increase. The TIRZ value added is estimated at $1,747,460,688, a 13.0% or $200,643,062 increase over last year. TIRZ value within the TIRZ represents 33.5% of the total increase. In 1998, when the TIRZ was formed, the base property value for the City was $7.1 million. Today, sitting at $1.754 billion in property value, the TIRZ shows the success of the public -private partnership that was entered into years ago. Pursuant to the participation agreement, the City remits 100% of its property tax levy to the TIRZ, however the City receives an administrative fee of 64% for the provision of services to serve the area. For FY2015, this totals $7.7 million, shown as Charges for Services vs. Property Taxes in the City's General Fund. In FY2030, after the TIRZ receives its 2028 taxes in FY2029, the City will realize 100% of the property tax value; this equates to an additional $4.736 million in property taxes at today's value, tax rate and 100% collection. If this were today, the General Fund would receive $3.8 million and the debt service fund $8.5 million, whereas the General Fund would lose $3.8 million in revenues the debt service fund would gain $8.5 million. The tax rate for the adopted budget totals $0.7121 per $100 valuation, a 0.007 cent total increase from the current tax rate of $0.7051. There is no change to the amount dedicated to debt service, $0.49 of the tax, but an increase is seen in the allocation to the General Fund operations by $0.007, for a total of $0.2221, and a total tax rate of $0.7121. The tax analysis prepared in 2007 for the $162 million bond referendum approved by the voters in May 2007, showed that a 13 -cent tax rate increase was needed for the completion of the 2001 bond referendum (5.5 cents) and the implementation of the 2007 bond referendum (7.5 cents). The total tax rate will have increased by 5.94 cents since 2007 based on the adopted tax rate of $0.7121. This can be attributable to construction savings on bond related projects, delay of capital projects, operating budget reductions of $4.5 million, new development and sales tax increases since 2007. Based on these assumptions and overall collection rate of 98.4%, a tax levy of $12,194,794 will be conveyed to the TIRZ and $40,761,939 will remain with the City. 75 CITY OF PEARLAND TAX COLLECTIONS FY 2014 FY 2014 FY 2014 FY 2015 BUDGETED ADJUSTED YEAR END PRELIMINARY LEVY LEVY PROJECTION ROLL REVENUES City Levy - 100% TIRZ - 100% TOTAL at 100% City Collection Rate ALLOCATION: General Fund Debt Service Fund TIRZ TOTAL ALLOCATION Tax Year Total Taxable Value Less: TIRZ Added Value 38,349,927 11,025,914 38,169,892 10,906,611 37,826,363 10,726,652 41,382,679 12,443,667 49,375,841 49,076,503 48,553,015 53,826,346 100.0% 100.0% 11,700,563 26,649,364 11,025,914 11,645,633 26,524,258 10,906,611 98.9% 98.4% 11,539,447 26,286,916 10,726,652 12,715,458 28,046,481 12,194,794 49,375,841 49,076,503 48,553,015 52,956,733 Budgeted Adjusted Preliminary 2013* 2013 2014 7,045,219,500 1,563,737,676 7,002,766,044 1,546,817,626 7,600,947,459 1,747,460,688 Taxable Value to City 5,481,481,824 Tax Rate per $100 General Fund Debt Service Fund Total Tax Rate Tax Rate Split General Fund Debt Service Fund Total 5,455,948,418 5,853,486,771 0.2151 0.2221 0.4900 0.4900 0.7051 0.7121 30.51% 31.19% 69.49% 68.81% 100.00% 100.00% 76 2014 Property Tax Rates in CITY OF PEARLAND This notice concerns the 2014 property tax rates for CITY OF PEARLAND. It presents information about three tax rates. Last year's tax rate is the actual tax rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This year's rollback rate is the highest tax rate the taxing unit can set before taxpayers start rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per $100 of property value. Last year's tax rate: Last year's operating taxes Last year's debt taxes Last year's total taxes Last year's tax base Last year's total tax rate This year's effective tax rate: Last year's adjusted taxes (after subtracting taxes on lost property) + This year's adjusted tax base (after subtracting value of new property) = This year's effective tax rate (Maximum rate unless unit publishes notices and holds hea This year's rollback tax rate: Last year's adjusted operating taxes (after subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, state criminal justice mandate, and/or enhanced indigent healthcare expenditures) + This year's adjusted tax base = This year's effective operating rate x 1.08 = this year's maximum operating rate + This year's debt ate = This year's total rollback rate $ 14,065,682 $ 32,041,769 $ 46,107,451 $ 6,539,136,435 $ 0.705100/$100 $ 35,067,904 $ 5,201,116,170 $ 0.674238/$100 rings.) $ 10,698,706 $ 5,201,116,170 $ 0.205700/$100 $ 0.222156/$100 $ 0.490000/$100 $ 0.712156/$100 Statement of Increase/Decrease If CITY OF PEARLAND adopts a 2014 tax rate equal to the effective tax rate of $0.674238 per $100 of value, taxes would decrease compared to 2013 taxes by $-9,296,600. 77 Schedule A — Unencumbered Fund Balance The following estimated balances will be left in the unit's property tax accounts at the end of the fiscal year. balances are not encumbered by a corresponding debt of obligation. Type of Property Tax Fund MAINTENANCE & OPERATIONS INTEREST & SINKING Balance $ 15,532,128 $ 4,141,793 Schedule B — 2014 Debt Services The unit plans to pay the following amounts for long-term debts that are secured by property taxes. These amounts will be paid from property tax revenues (or additional sales tax revenues, if applicable). Description of Debt Principal or Contract Payment to be Paid from Property Taxes Interest to be Paid from Property Taxes Other Amounts to be Paid These Total Payment ALL SERIES GO/CO 2003-2014 SHORT TERM DEBT MUD REBATES $11,320,750 $1,114,633 $0 Total required for 2014 debt service - Amount (if any) paid from Schedule A - Amount (if any) paid from other resources - Excess collections last year = Total to be paid from taxes in 2014 + Amount added in anticipation that the unit will collect only 100.00% of its taxes in 2014 = Total debt levy $12,917,467 $81,612 $0 $46,355 $0 $4,713,417 $ 30,194,234 $0 $ 3,442,080 $0 $ 26,752,154 $0 $ 26,752,154 $24,284,572 $1,196,245 $4,713,417 This notice contains a summary of actual effective and rollback tax rates' calculations You can inspect a copy of the full calculations at 451 N. Velasco, Rm. 150, Angleton, Texas. Name of person preparing this notice: Ro'Vin Garrett Title: Tax Assessor -Collector Date Prepared: 8/7/2014 78 ASSESSED VALUATION, TAXES LEVIED AND TAXES COLLECTED TEN YEAR SUMMARY OF ASSESSED VALUATION WITH ESTIMATE FOR FISCAL YEAR 2013-2014 AND ADOPTED FOR FISCAL YEAR 2014-2015 NET CURRENT % OF CURRENT DELINQUENT ASSESSED TAX TOTAL TAX TAXES TAX YEAR VALUATION RATE TAX LEVY COLLECTIONS COLLECTED COLLECTION 2005-2006 3,576,439,129 0.6744 24,284,597 23,690,031 97.55% 450,000 2006-2007 4,412,821,949 0.6526 28,819,229 28,235,276 97.97% 276,124 2007-2008 5,389,790,165 0.6526 35,035,569 34,461,652 98.36% 310,112 2008-2009 5,904,826,560 0.6526 38,368,354 37,820,603 98.57% 592,199 2009-2010 6,269,047,937 0.6526 41,081,407 40,590,543 98.81% 274,230 2010-2011 6,331,723,029 0.6651 41,968,046 41,594,389 99.11% 318,250 2011-2012 6,369,626,981 0.6851 43,441,792 43,110,373 99.24% 201,453 2012-2013 6,537,976,038 0.7051 45,850,625 45,509,522 99.26% 362,129 2013-2014 (1) 7,002,766,044 0.7051 49,076,503 48,553,015 98.93% 281,178 2014-2015 (2) 7,600,947,459 0.7121 53,826,346 52,956,733 98.38% 303,295 (1) Projected collections (2) Projected levy and collections Commercial vs. Residential Tax Net Assessed Value as °A of Total O 2 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 31% 69% 30% 70% 28% 72% 31% 69% 30% 70% 28% 72% 28% 72% 30% 70% 30% 70% 30% 70% co 'l o `1. h �o�p p �oQ,�p�' p � �o�o, �. 1\�� ❑ Residential ❑ Comercial NET ASSESSED VALUATION 8.000 - 7.000 i i r 6.000 - 5.000 O 4.000 ds 3.000 - 2.000 1,000 F °°� °a� °Q� oo °moo ,�. otiti ,,,C) 6,._ 1,`.1 ���, o' °°;1 0,` b °b;L , L I\CY P•,\;L P 1,- cti 99' (1) Net assessed valuation (2) Estimated for tax year 2015 TAX RATE DISTRIBUTION LAST TEN YEARS CURRENT FOR FISCAL YEAR 2013-2014 ADOPTED FOR FISCAL YEAR 2014-2015 FISCAL YEAR 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GENERAL FUND 0.3457 0.3389 0.3455 0.298974 0.2503 0.2201 0.2201 0.2151 0.2151 0.2151 0.2151 0.2221 DEBT SERVICE 0.3503 0.3559 0.3289 0.353685 0.4023 0.4325 0.4325 0.4500 0.4700 0.4900 0.4900 0.4900 TOTAL TAX RATE 0.6960 0.6948 0.6744 0.652659 0.6526 0.6526 0.6526 0.6651 0.6851 0.7051 0.7051 0.7121 Notes: 1. The maximum tax rate for the City of Pearland is $2.50 per $100 assessed valuation. Within this $2.50 maximum there is no legal limit upon the amount of taxes, which may be levied for debt. 2. The City does not have legal debt margin as the law does not mandate any debt limit on the City. Tax Rate Distribution Z � 0.80 0.70 - 0.60 - D 5 - 0.40 - D 3 - D 2 - 10 - D.DD 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ❑DEBT SERVICE ❑GENERAL FUN❑ PRINCIPAL TAXPAYERS FISCAL YEAR 2014-2015 TAXPAYERS 1 Weatherford US LP 2 Pearland Town Center LP 3 AmREIT SPF Shadow Creek LP 4 CenterPoint Energy Inc 5 12400 Shadow Creek Parkway LLC 6 Discovery Shadow Creek Owner 7 Forum US, Inc. 8 Shadow Kirby, LTD, Prt 9 Pearland Lifestyle Center LP 10 Pearland Multi -Family District BUSINESS Oil Field Service, Rental & Fishing Retail Center Management Retail Center Management Utility Company Multi -Family Residential Multi -Family Residential Energy Technology Industry Multi -Family Residential Retail Center Management Multi -Family Residential TOTAL PRINCIPAL TAXPAYERS % OF ASSESSED VALUE ASSESSED OF PROPERTY VALUE $ 72,301,820 0.95% $ 69,086,460 0.91% $ 48,187,760 0.63% $ 32,581,900 0.43% $ 27,100,030 0.36% $ 26,780,230 0.35% $ 26,062,030 0.34% $ 25,000,000 0.33% $ 24,753,841 0.33% $ 24,205,950 0.32% $ 376,060,021 4.95% ALL OTHERS $ SOURCES: Brazoria and Harris Counties Tax Assessor Collector $80,000,000 $70,000,000 $60, 000,000 $50, 000,000 $40, 000,000 $30, 000,000 $20, 000,000 $10,000,000 $- 7,224,887,438 95.05% TOTAL $ TOP TEN TAXPAYERS 7,600,947,459 100.00% J _ 11111611 aJ��Q ��e•c\'e ��Q \�o •5' m0 c°� �� o{ C, C �e c ee ea; a'S r`Z' e° e� o� U¢�,`e d� `e - � \cam. \,gyp' <eo�JR 5r Baca ' � �a ee ea DEBT SERVICE FUND SUMMARY FY 2015 ADOPTED BUDGET OVERVIEW The Debt Service Fund, also known as the interest and sinking fund, is established by ordinance and accounts for the issuance of debt and provides for the payment of debt, including principal, interest and tax rebates to in -city municipal utility districts as payments become due. In the Debt Service Fund, an ad valorem (property) tax rate and tax levy are required to be computed and levied, which will be sufficient to produce the money to satisfy annual debt service requirements. The City of Pearland has no general obligation legal debt limit other than a ceiling on the tax rate specified by the State of Texas. Under the rules of the Texas Attorney General, the City may issue general obligation debt in an amount no greater than that which can be serviced by a debt service tax rate of $1.50 per $100 assessed valuation, based on a 90% collection rate. Based on the values used, the budget as adopted assumes a Debt Service tax rate of $0.4900 per $100 assessed valuation, an increase of half a cent from the current debt service tax rate of $0.4900 necessary to meet fiscal year 2015 obligations. In fiscal year 2014, the City refunded $24.8 million in existing bonds, comprised of five different issues, to take advantage of lower interest rates in order to achieve interest cost savings. The refunding is estimate to save $1.6 million in interest over 13 years, which is a net present value savings of $1.352 million or 5.444%, over the 3% net present value savings as a minimum for refunding in the City's Financial Management Policy Statements. The tax rate generates $28,542,037 in current property taxes at a 98.5% collection rate. Revenues include $763,425 from the University of Houston -Clear Lake System and PEDC for debt service associated with the construction of the University of Houston -Clear Lake Pearland Campus, which they occupy, and $156,844 from the City for the meeting room space in the facility. Transfers from the Water -Sewer Fund total $456,567 for some of the debt associated with water/sewer activities. Expenditures total $30,194,234 for fiscal year 2015, and include $24,238,217 in principal and interest payments. Debt (General Obligation and Certificates of Obligation) anticipated to be issued includes $16.2 million in fiscal year 2014 and $27.960 million in fiscal year 2015 pursuant to the City's capital improvement program. After the General Obligation issues, there will remain $66.687 million, out of the $162.0 million voted, bonds yet to be issued at 9/30/2015. Total principal outstanding at 9/30/2015 is anticipated to be $316.1 million. Tax rebates to in -city MUD's total $4,713,417, an increase of $405,921 from fiscal year 2014 actuals, as newer districts continue to develop. Fund balance at 9/30/2015 is anticipated to be $4,312,559, an increase of $170,766 from the $4,141,793 projected at 9/30/214 and is $1,293,136 over the reserve policy of $3,019,423, or 10% of expenditures. For fiscal years 2016 through 2018, it is forecasted that the fund will remain above reserve policy guidelines, with additional tax rate increases needed in years 2016 and 2018 (see long-range forecast) due to the continued issuance of voter approved bonds to complete capital projects. 83 DEBT SERVICE FUND - 20 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET FY 2013 Actual FY 2014 Amended Budget FY 2014 Year End Projection FY 2015 Adopted Budget OPERATING REVENUES Property Taxes Miscellaneous Transfers Bond Proceeds TOTAL OPERATING EXPENDITURES Rebates & Misc. Bond Payment Short -Term Note TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING Reserve 10% Over Policy $ 25,898,494 1,966,269 461,726 $ 26,652,299 800,242 618,439 $ 26,684,495 811,959 618,439 33,498,000 $ 28,456,557 799,476 613,411 28,326,489 28,070,980 61,612,893 29,869,444 4,084,982 23,678,436 912,730 4,465,513 23,038,963 1,345,824 4,336,970 56,695,691 1,196,208 4,747,297 23,806,317 1,196, 245 28,676,148 28,850,300 62,228,869 29,749,859 (349,659) (779,320) (615,976) 4,992,479 4,642,821 4,642,821 119,585 4,026,845 $ 4,642,821 $ 3,863,501 $ 4,026,845 $ 4,146,430 2,867,615 1,775,206 2,885,030 978,471 2,873,087 1,153,758 2,974,986 1,171,444 84 DEBT SERVICE FUND - 20 REVENUES FY 2015 ADOPTED BUDGET ACCOUNT NUMBER ACCOUNT DESCRIPTION FY 2013 Actual FY 2014 FY 2014 FY 2015 Amended Year End Adopted Budget Projection Budget 020-0000-350.01-01 020-0000-350.01- 02/06 020-0000-350.01-03 020-0000-350.01-05 020-0000-350.01-06 *TAXES 020-0000-335-65-00 020-0000-356.00-00 020-0000-356.06-00 020-0000-358.99-00 020-0000-358.99-01 *MISCELLANEOUS 020-0000-359.09-00 020-0000-359.43-00 020-0000-359.36-00 020-0000-359.36-00 020-0000-359.99-00 CURRENT TAXES DELINQUENT TAXES PENALTY & INTEREST MUD ANNEXATION CURRENT TAX MUD ANNEXATION DELINQUENT TAX MISCELLANEOUS INTEREST INCOME UNREALIZED CAP GAIN (LOSS) MISCELLANEOUS MUD ANNEXATION FROM FUND 30 FROM FUND 43 FROM FUND 203 FROM FUND 302 FROM FUND 10 *GRANT, ISSUANCE, TRANSFER 020-0000-360.01-00 020-0000-360.04-00 020-0000-360.07-00 *BOND PROCEEDS BOND PROCEEDS PREMIUM/DISCOUNT ON BONDS CAPITALIZED INTEREST 24,770,799 26,251,000 26,286,916 28,046,481 240,117 215,331 198,166 210,295 196,378 185,968 199,413 199,781 685,777 5,424 25,898,494 26,652,299 26,684,495 28,456,557 20,036 24,000 36,561 36,001 (740) 786,076 776,242 775,398 763,475 1,160,897 1,966,269 800,242 811,959 799,476 277,127 10,443 5,000 7,711 161,445 459,167 459,167 456,567 159,272 159,272 156,844 461,726 618,439 618,439 613,411 33,498,000 0 0 33,498,000 0 TOTAL 28,326,489 28,070,980 61,612,893 29,869,444 85 GOVERNMENTAL DEBT MATURITY SCHEDULE AS OF 9/30/2014 GENERAL LONG-TERM DEBT* Fiscal Year Principal Interest Total 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 2035-2036 2036-2037 2037-2038 11,275,000 12,491,796 23,766,796 11,705,000 12,028,896 23,733,896 11,375,000 11,562,722 22,937,722 11,825,000 11,089,871 22,914,871 14,555,000 10,547,475 25,102,475 15,150,000 9,926,235 25,076,235 15,785,000 9,266,618 25,051,618 16,405,000 8,567,467 24,972,467 17,100,000 7,831,483 24,931,483 17,730,000 7,051,309 24,781,309 18,545,000 6,259,556 24,804,556 19,170,000 5,460,715 24,630,715 19,955,000 4,626,694 24,581,694 20,730,000 3,804,131 24,534,131 21,535,000 2,957,746 24,492,746 13,695,000 2,204,328 15,899,328 14,290,000 1,566,114 15,856,114 14,945,000 893,712 15,838,712 4,050,000 459,582 4,509,582 4,195,000 276,997 4,471,997 1,650,000 134,856 1,784,856 935,000 78,772 1,013,772 620,000 43,938 663,938 640,000 14,800 654,800 TOTAL 297,860, 000 129,145,811 427,005,811 Series Name Certificates of Obligation Series 2004 Permanent Improvement and Refunding Bonds Series 2005 Certificates of Obligation Series 2006 Permanent Improvement and Refunding Bonds Series 2006 BC MUD 1 Series 2007 Permanent Improvement and Refunding Bonds Series 2007 Certificates of Obligation Series 2007 Permanent Improvement Bonds Series 2008 Certificates of Obligation Series 2008 Certificates of Obligation Series 2009 Certificates of Obligation Series 2009-A Permanent Improvement and Refunding 2009* Permanent Improvement Bonds Series 2010A Permanent Improvement and Refunding Series 2010B General Obligation Bonds Series 2011 Certificates of Obligation Series 2011 Permanent Improvement Refunding Bonds Series 2012* BC MUD 4 Series 2011 Certificates of Obligation Series 2013 Permanent Improvement Bonds Series 2013 Permanent Improvement Bonds Series 2014 Certificates of Obligation Series 2014 TOTAL Does not include new debt anticipated to be issued. * Excludes refunding portion associated with Water/Sewer Principal Amount 710,000 13,545,000 3,995,000 9,955,000 535,000 64,115,000 22,150,000 21,360,000 8,325,000 7,605,000 9,585,000 14,985,000 10,995,000 780,000 5,055,000 1,465,000 43,575,000 2,380,000 2,670,000 9,040,000 40,410,000 4,625,000 297,860,000 86 GOVERNMENTAL DEBT TO MATURITY AS OF 9/30/2014 87 GENERAL DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET DATE DESCRIPTION AMOUNT AMOUNT PAYMENT OUTSTANDING ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/15 3/1/2015 Series 2004 Certificates of 21,000,000 710,000 14,200 724,200 9/1/2015 Obligation 0 Fiscal Year Total 3/1/2015 Series 2005 Permanent Improvement 9/1/2015 and Refunding Bonds Fiscal Year Total 3/1/2015 Series 2006 Permanent Improvement 9/1/2015 and Refunding Bonds Fiscal Year Total Fiscal Year Total 3/1/2015 Series 2007 - BCMUD #1 1,940,000 9/1/2015 70,000 11,479 81,479 710,000 14,200 724,200 0 37,015,000 2,010,000 326,839 2,336,839 276,589 276,589 2,010,000 603,428 2,613,428 11,535,000 32,165,000 430,000 3/1/2015 Series 2006 Certificates of 9/1/2015 Obligation 233,678 663,678 225,078 225,078 430,000 458,756 888,756 9,525,000 370,000 174,685 544,685 3,625,000 11,479 11,479 Fiscal Year Total 70,000 22,958 92,958 465,000 3/1/2015 Series 2007 Permanent Improvement 69,640,000 2,685,000 1,498,931 4,183,931 9/1/2015 and Refunding Bonds 1,425,094 1,425,094 Fiscal Year Total 3/1/2015 Series 2007 Certificates of 2,685,000 2,924,025 5,609,025 61,430,000 23,250,000 350,000 499,888 849,888 9/1/2015 Obligation 490,700 490,700 Fiscal Year Total 3/1/2015 Series 2008 Permanent Improvement 9/1/2015 Bonds 350,000 990,588 1,340,588 21,800,000 22,835,000 310,000 516,388 826,388 508,638 508,638 Fiscal Year Total Fiscal Year Total 3/1/2015 Series 2009 Certificates of 8,520,000 9/1/2015 Obligation 235,000 3/1/2015 Series 2008 Certificates of 9/1/2015 Obligation 3/1/2015 Series 2009A Certificates of 9/1/2015 Obligation Fiscal Year Total Fiscal Year Total 3/1/2015 Series 2009 Permanent Improvement 9/1/2015 Bonds* Fiscal Year Total 3/1/2015 Series 2010A Permanent Improvement 9/1/2015 Bonds Fiscal Year Total 310,000 1,025,025 1,335,025 21,050,000 9,000,000 145,000 198,319 343,319 195,509 195,509 145,000 393,828 538,828 8,180,000 169,976 169,976 169,976 404,976 235,000 339,953 12,145,000 640,000 574,953 7,370,000 174,883 814,883 166,883 166,883 640,000 341,765 16,735,000 405,000 981,765 8,945,000 315,909 720,909 310,846 310,846 405,000 626,755 1,031,755 14,580,000 12,415,000 370,000 203,476 573,476 196,076 196,076 370,000 399,553 769,553 10,625,000 88 9,700,000 370,000 93,008 463,008 81,677 81,677 GENERAL DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET DATE DESCRIPTION AMOUNT AMOUNT PAYMENT OUTSTANDING ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/15 DATE DESCRIPTION AMOUNT AMOUNT PAYMENT OUTSTANDING ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/15 3/1/2015 Series 2010B Permanent Improvement 9/1/2015 Refunding Bonds Fiscal Year Total 3/1/2015 Series 2011 General Obligation 9/1/2015 Bonds 1,630,000 225,000 11,700 236,700 9,450 9,450 225,000 21,150 246,150 555,000 5,400,000 150,000 96,566 246,566 93,566 93,566 Fiscal Year Total Fiscal Year Total Fiscal Year Total 3/1/2015 Series 2012 Permanent Improvement 43,575,000 9/1/2015 Refunding Bonds* 3/1/2015 Series 2011 BC MUD 4 9/1/2015 Refunding Bonds* 3/1/2015 Series 2011 Certificates of 9/1/2015 Obligation Fiscal Year Total 3/1/2015 Series 2013 Certificates 9/1/2015 of Obligation Fiscal Year Total 3/1/2015 Series 2013 Permanent 9/1/2015 Improvement Bonds 3/1/2015 Series 2014 Permanent 9/1/2015 Improvement Bonds 3/1/2015 Series 2014 Certificates 9/1/2015 of Obligation TOTAL *Excludes Water/Sewer Component Does not include new debt anticipated to be issued. 150,000 190,131 340,131 4,905,000 15,309 225,309 13,115 13,115 210,000 28,424 238,424 1,255,000 2,640,000 130,000 47,963 177,963 46,338 46,338 130,000 94,300 224,300 2,250,000 685,000 783,125 1,468,125 769,425 769,425 685,000 1,552,550 2,237,550 42,890,000 2,745,000 85,000 56,944 141,944 55,669 55,669 85,000 112,613 9,315,000 295,000 197,613 2,585,000 187,684 482,684 183,259 183,259 295,000 370,943 665,943 8,745,000 40,410,000 535,000 845,441 1,380,441 840,091 840,091 535,000 1,685, 531 2,220, 531 39,875,000 4,625,000 230,000 56,404 286,404 64,234 64,234 230,000 120,638 350,638 4,395,000 388,795,000 11,275,000 12,491,796 23,766,796 286,585,000 89 2,095,000 210,000 GENERAL DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET Description Rate Date Issued Amount Maturity Issued Amount Outstanding As of 9/30/15 Annual Requirements General Obligation Series 2004 Permanent Imp. and Refunding Bonds Series 2005 Permanent Imp. and Refunding Bonds Series 2006 Certificates of Obligation Series 2006 Series 2007-BCMUD#1 Permanent Imp. and Refunding Bonds Series 2007 Certificates of Obligation Series 2007 Permanent Imp. Bonds Series 2008 Certificates of Obligation Series 2008 Certificates of Obligation Series 2009 4%, 4,1%,4.68%, 4.7%, 4.2%, 4.5%, 4.625%, 4.75%,5%, 5.25%,4% 2004 21,000,000 2028 3.25%, 3.5%, 3.625% 2005 37,015,000 3.75%,3.875%,4%,5%, 2029 4.1 %,4.125%,4.2%,4.25% 4.3%, 4.5%,4.8% 4%,4.125%,4.25%, 4.5%,5%,4.75%,4.8% - 3/1/2015 3/1/2015 9/1/2015 11,535,000 3/1/2015 3/1/2015 9/1/2015 2006 32,165,000 9,525,000 3/1/2015 2029 3/1/2015 9/1/2015 6.125%,5.25%,4.125%, 2006 4.2%,4.25%,4.3%,4.4%, 2029 4.375%,4.4%,4.45%, 4.5% 3.75%,3.8%,3.85%, 3.9%,4%,4.1%,4.2%, 4.3%,4.35%,4.3% 4%,4.375%,4.5%,4.75%, 5%,5.5%,4.6% 3.25%,4.25%,5%,5.25% 4.30% 4%,4.5%,4.625%,5% 5.25%,5.5%,4.78% 2007 2030 9,700,000 1,940,000 3,625,000 3/1/2015 3/1/2015 9/1/2015 465,000 3/1/2015 9/1/2015 9/1/2015 2007 69,640,000 61,430,000 3/1/2015 2034 3/1/2015 9/1/2015 2007 23,250,000 21,800,000 3/1/2015 2034 3/1/2015 9/1/2015 2008 22,835,000 21,050,000 3/1/2015 2034 3/1/2015 9/1/2015 3.75%,3.875%,4%,4.125% 2008 4.25%,4.3%, 4.375%,4.4% 2034 4.5%,5%,4.9% 4.5%,4.65%,4%,5%, 2009 5.25%,5.5%,2.25%,2.5%, 2034 3%,3.5%,3.75%,4.1%, 4.25%,4.4%,4.75%,4.625% 4.66% 9,000,000 8,520,000 8,180,000 3/1/2015 3/1/2015 9/1/2015 7,370,000 3/1/2015 9/1/2015 9/1/2015 710,000 Principal 14,200 Interest - Interest 2,010,000 Principal 326,839 Interest 276,589 Interest 430,000 Principal 233,678 Interest 225,078 Interest 370,000 Principal 93,008 Interest 81,677 Interest 11,479 Interest 70,000 Principal 11,479 Interest 2,685,000 Principal 1,498,931 Interest 1,425,094 Interest 350,000 Principal 499,888 Interest 490,700 Interest 310,000 Principal 516,388 Interest 508,638 Interest 145,000 Principal 198,319 Interest 195,509 Interest 169,976 Interest 235,000 Principal 169,976 Interest 90 GENERAL DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET Description Rate Date Issued Amount Maturity Issued Amount Outstanding As of 9/30/15 Annual Requirements Certificates of Obligation Series 2009A Permanent Imp. Bonds 2009* Permanent Imp. Bonds Series 2010A Permanent Imp. Bonds Refunding Series 2010B General Obligation Series 2011 Certificates of Obligation Series 2011 BC MUD 4 Series 2011 Permanent Imp. Bonds Refunding Series 2012* Certificates of Obligation Series 2013 Permanent Imp. Bonds Series 2013 Permanent Imp. Bonds Series 2014 Certificates of Obligation Series 2014 4.5%, 4.2%, 4.1.%, 4.0% 2009 12,145,000 3.85%, 3.75%, 3.7%,3.6% 2029 3.25%, 3.4%, 2.75%,2.5% 2.25%, 2.0%,3.78%,4.5% 5.0%, 4.5%, 4.1%, 3.75% 2009 16,735,000 3.85%, 3.7%, 3.6%, 3.4%, 2034 3.25%, 2.75%, 2.5%, 2.0% 4.4%,4.0% 2.0%, 3.0%, 3.25%, 3.50% 3.625%,3.75%,3.90%,4.0% 2035 4.25%,3.89% 2.0%, 3.0%, 3.25%, 3.50% 2011 3.625%,3.75%,3.90%,4.0% 2018 4.25%,3.05% 2.125%,3.0%,3.25%,3.5% 4.0%,4.125%,3.84% 2.09% 2011 2036 2011 2021 2.5%, 2.75%, 3.0%, 3.5% 2011 4.0%, 4.125%, 4.5%, 4.7% 2032 4.8%, 5.0%,4.42% 3.0%, 4.0%, 5.0%,3.44% 2011 12,415,000 1,630,000 5,400,000 2,095,000 2,640,000 8,945,000 3/1/2015 3/1/2015 9/1/2015 14,580,000 3/1/2015 3/1/2015 9/1/2015 10,625,000 3/1/2015 3/1/2015 9/1/2015 555,000 3/1/2015 3/1/2015 9/1/2015 4,905,000 3/1/2015 3/1/2015 9/1/2015 1,255,000 3/1/2015 3/1/2015 9/1/2015 2,250,000 3/1/2015 3/1/2015 9/1/2015 2012 43,575,000 42,890,000 3/1/2015 2029 3/1/2015 9/1/2015 3.0%,4.0%,4.25%,4.375%, 2013 4.5%,4.625%,5.0%,4.05% 2038 3.0%,4.0%,4.125%,4.25%, 2013 4.375%,4.4%,4.5%,4.625% 2038 4.29% 2,745,000 9,315,000 2,585,000 3/1/2015 3/1/2015 9/1/2015 8,745,000 3/1/2015 3/1/2015 9/1/2015 4.36% 2015 40,410,000 39,875,000 3/1/2015 2034 3/1/2015 9/1/2015 3.12% 2014 2038 4,625,000 4,395,000 3/1/2015 3/1/2015 9/1/2015 640,000 Principal 174,883 Interest 166,883 Interest 405,000 Principal 315,909 Interest 310,846 Interest 370,000 Principal 203,476 Interest 196,076 Interest 225,000 Principal 11,700 Interest 9,450 Interest 150,000 Principal 96,566 Interest 93,566 Interest 210,000 Principal 15,309 Interest 13,115 Interest 130,000 Principal 47,963 Interest 46,338 Interest 685,000 Principal 783,125 Interest 769,425 Interest 85,000 Principal 56,944 Interest 55,669 Interest 295,000 Principal 187,684 Interest 183,259 Interest 535,000 Principal 845,441 Interest 840,091 Interest 230,000 Principal 56,404 Interest 64,234 Interest TOTAL 388,795,000 286,585,000 23,766,796 *Excludes Water/Sewer Component Does not include new debt anticipated to be issued. 91 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS Fsr.�a 92 GENERAL FUND - 10 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW 'The General Fund provides the financing for all of the City of Pearland's basic services except water, sewer and solid waste, which is accounted for through the Water & Sewer and Solid Waste Funds. The principal sources of revenue include property taxes, sales and 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 53% of total operating expenditures (excluding transfers). General Government includes departments such as Mayor and City Council, City Manager, Finance, Legal and Human Resources. Expenditures include all personnel costs for 507.75 full-time employees and 139 part-time employees, utilities, fuel, park and right-of-way maintenance, street lighting, just to name a few. FY2014 FY2014 FY 2015 FY2013 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET REVENUES Property Taxes Sales and Use Taxes Franchise Fees Licenses & Permits Fines & Forfeitures Charges for Service Miscellaneous Transfers in Other Financing Sources TOTAL REVENUES EXPENDITURES General Government Public Safety Community Services Public Works Parks & Recreation Total Operating Expenditures Transfers Out TOTAL EXPENDITURES Revenues Over/(Under) Expenses Beginning Fund Balance Ending Fund Balance Policy - 2 months Recurring Operating Fund Balance over Policy $11,178,950 $11,818,335 $11,901,823 $13,104,208 15,919,785 17,428,319 17,038,649 18,063,535 5,758,776 6,106,615 6,264,559 6,646,438 2,988,859 2,877,117 3,642,823 3,922,331 3,333,675 3,568,281 2,945,940 3,105,239 12, 567, 692 13,175, 835 12, 828, 870 14, 077, 727 717,581 595,362 2,329,940 611,309 3,764,560 3,709,547 3,865,462 2,975,094 1,179,413 2,754,764 2,426,987 1,187,000 57,409,291 62,034,175 63,245,053 63,692,881 6,697,743 7,630,655 8,307,116 10,373,879 29,407,660 34,449,353 33,688,276 35,389,548 3,312,707 3,953,705 3,936,686 2,949,771 7,741,495 10,136, 545 9,379,884 10,486, 794 7,224,818 8,641,990 8,239,889 6,773,623 54,384,423 64,812,248 63,551,851 65,973,615 1,973,712 1,386,903 2,784,191 1,546,744 56,358,135 66,199,151 66,336,042 67,520,359 1,051,156 (4,164,976) (3,090,989) (3,827,478) 17,571,961 18,623,117 18,623,117 15,532,128 $18,623,117 $14,458,141 $15,532,128 $11,704,650 9,660,155 9,450,047 10,438,413 4,797,986 6,082,081 1,266,236 93 GENERAL FUND SUMMARY FY 2015 ADOPTED BUDGET TOTAL REVENUES - $63.7 M Miscellaneous 1% Charges for Service 22% Fines & Forfeitures 5% License & Permits 6% Franchise Fees 10% Transfers 5% Other Sources 2% Sales Taxes 28% Property Taxes 21% TOTAL EXPENDITURES - $67.5 M Parks & Recreation 11% Public Works 16% Community Services 4% Transfers Out 2% General Government 15% Public Safety 52% 94 GENERAL FUND - 10 REVENUE AND EXPENDITURE SUMMARY FY 2015 ADOPTED BUDGET Fiscal Year 2013-2014 For fiscal year 2014 revenues are expected to be $63,245,053, $1,210,878 greater than the amended budget, due to the sale of frontage property on Beltway 8. Excluding this sale of property and other financing sources, revenues total $59,198,556, $80,855, below the amended budget and $2,968,678 over fiscal year 2013 actuals (excluding other financing sources). This is mainly due to lower than budgeted sales tax remittances, fines and forfeitures and charges for services offset by property taxes and licenses and permits. The fiscal year 2014 budget incorporated a 7.8% increase in sales tax receipts, which included increases related to the residential and commercial growth seen over the prior years. However, sales tax remittances' though higher than last year by $1,090,730 or 6.9%, has shown more moderate growth in economic activity with a projection of $16,833,524, $419,795, or 2.4% lower than the amended budget. Franchise Fees of $6,264,559 is $157,944 greater than budget due to an increase in gas and sanitation franchise fees, which is likely due the market price improvement of natural gas and CPI rate increases in the sanitation services. License and Permit revenue of $3,642,823 is higher than budget by $765,706 and higher than fiscal year 2013 by $653,964. This is mainly the result of the number and added value related to commercial permits as well as single family permits are keeping pace with 2013. The City permitted $134 million in new commercial value through September 2014 versus $33 million through September 2013. Charges for Services total $12,828,870 and are $346,965 less than budget due to ambulance service fees that are 11.8% less than budget and 7.9% less than fiscal year 2013 actual due to changes in patient insurance mix. The City will be joining the Ambulance Supplemental Payment Program which is designed to supplement transport cost for Medicaid recipients. Miscellaneous revenues total $2,329,940 and are expected to be higher than budget by $ 1,734,578, mainly due to sale of frontage property on Beltway 8. Fiscal year 2014 operating expenditures total $63,551,851 and are less than budget by $1,260,397 (1.9%) mainly due to personnel savings from vacancies. Transfers out to other funds are projected to be $2,784,191, $1,397,288 more than budgeted. This is mainly due to additional funds being transferred to the Medical Fund as claims are expected to exceed contributions and to assist in building a reserve. Total expenditures, including transfers, exceed revenues by $3,090,989, $1,073,987 less than the $4,164,976 planned drawdown of fund balance. Fund balance at 9/30/2014 is anticipated to be $15,532,128, $1,073,987, more than budgeted and $6.3 million over a reserve requirement of 2 months. These funds can be used to fund non -recurring items in the fiscal year 2015 budget. Fiscal Year 2014-2015 Fiscal year 2015 revenues total $63,692,881 which is $447,828, or 0.7% higher than fiscal year 2014 projections and $1,658,706, or 2.7% higher than the fiscal year 2014 budget. Excluding Other Financing Sources, revenues total $62,505,881, $1,687,815, or 2.8%, more than projections. The budget incorporates a 6.0% increase in sales tax receipts, which includes increases related to the residential and commercial growth. Sales tax totals $17,843,535, up $1,010,011 over the projected fiscal year 2014 collection of $16,833,524. Increases expected in property tax collection, at $12,715,458, 1,176,011, greater than the projected $11,539,447 in fiscal year 2014, due to higher values and increase in the current property tax rate. The TIRZ administrative fees total 7,804,668, an increase of $957,319 over the projection for fiscal year 2014 in the TIRZ. This increase is attributable to the adopted property tax rate as well as the continued growth of assessed valuation. In addition, fines and forfeitures increases by $381,879 over the fiscal year 2014 projection. Miscellaneous revenue decreases by $1,718,631 due to the sale of property in fiscal year 2014. Franchise Fees are $381,879 higher than the projected fiscal year 2014 attributable largely to growth. Operating expenditures total $65,973,615, a 3.8%, or $2,421,764, increase from the 2014 projections and $1,161,367 or 1.8% increase from the 2014 amended budget. The variance to budget is explained below with additional detail: 95 Analysis of Recurring Budget Total Operating Budget Non -Recurring Carryover Non -Recurring Funding Total Recurring % Increase Recurring Budgeted Expenditures FY2015: FY 2014 Amended Budget $64,812,248 (2,849,652) (4,013,253) $57,949,343 FY 2015 Adopted Budget $65,973,615 (3,355,659) $62,617,956 Medical Workers' Compensation / TMRS / Unemployment Fire Station #3 EMS Consolidation 2% Merit Pool - All Personnel, includes Police Police Step Pay Beautification (Base Contract) CIO/Facilities Superintendent Supplemental Requests - Recurring Increase in Replacement Vehicles / Computers Proposed to Amended (Decrease)/Increase $1,161,367 $4,668,613 8.1% $1,082,770 $425,298 $219,030 $487,773 $750,000 $93,286 $216,390 $265,554 $888,501 $172,313 Salaries and Benefits account for the largest portion of the $4.7 million variance of recurring operating expenditure from the 2014 budget mainly due to the increasing cost of health benefits as well as new positions added in fiscal year 2015. New positions added for fiscal year 2015 result in a net increase of 9 full-time equivalent positions in the General Fund. Of the new positions, 8 are in Public Safety: 7 full-time positions are in Police, 2 Sergeants for Patrol at 12 months, 4 Patrol Officers at 8 months, and 1 Crime Analyst for Investigations at 9 months. In the Fire Department, 1 full-time Housing Enforcement & Rehabilitation Officer is budgeted at 12 months in Health/Code Enforcement, to be reimbursed by CDBG funds (grant). The position in General Government is for 1 Chief Information Officer for 9 months. Community Development includes 1 Permit Clerk. One Parks Maintenance Worker position in the Parks & Recreation Department was eliminated. General Government totals $10,373,879, $2,066,763 greater than fiscal year 2014 projections, and $2,743,224 greater than the 2014 amended budget. The increase can be attributed mainly to $1,472,090 needed to implement the first year of a two-year conversion of the City's current financial software to a new system and $157,050 for the addition of a Chief Information Officer in Information Systems. Other Requirements include a 2% average merit pool of $750,000 for the entire General Fund to be distributed to each department based on actual merits given. The budget for Public Safety, which includes Police and Fire totals $35,389,548, a $1,701,272 increase from fiscal year 2014 projections and a $940,195 increase over the 2014 budget, including organizational reassignment of Animal Services and Health/Code Enforcement under Public Safety. Police is increasing $1,410,749 over 2014 projections and $1,189,560 over the 2014 budget due to the addition of: $890,211 for 2 Patrol Sergeants, 4 Patrol Officers, and 2 Vehicles; $59,792 for a Civilian Crime Analyst starting January 2015; and $491,945 for increases related to TMRS, workers' compensation, medical and unemployment benefits. Animal Services is increasing $26,534 mainly due to a scheduled vehicle replacement. Fire includes the integration of Emergency Medical Services and reassignment of Health/Code Enforcement from Community Development to be under the Fire Marshal. Total Fire related services is budgeted at $12,167,894, with $1,003,376 for Administration, $9,919,982 for Fire Operations which includes EMS, and $1,244,536 for Fire Marshal, Emergency Management and Health Code Enforcement. Excluding the reassignment Health Code Enforcement, Fire decreased by $1,523,735 from the 2014 budget mainly due to $372,024 for the replacement of two additional ambulances, $400,000 for training for the fire/EMS consolidation, $1,694,134 for the purchase of fire apparatus, and $500,000 for the migration to the City of Houston radio system. When factoring this in, the Fire Department actually increased by $1.5 million. Increase in benefits for TMRS, workers' compensation, medical and unemployment benefits accounts for $500,000. The 96 remaining increase is due to $487,783 for the full merger of EMS with Fire, $275,346 for the opening of Fire Station #3 and $59,890 for additional FFE for both Station #2 and #3, $50,000 for training tower structural repairs, $134,045 for ambulance remount and SUV vehicle replacement, and $35,408 for a new Part -Time Fire Inspector/Investigator to begin January 2015. The Community Services budget totals $2,949,771. This is a decrease of $986,915 from fiscal year 2014 projections mainly due to organizational restructuring with Health/Code Enforcement and Animal Services assigned to Public Safety. Community Development includes $41,587 for an additional Permit Clerk, $50,000 for plan review services in lieu of hiring a planner and $34,244 to advance the electronic filing process with a document management firm achieved with the assistance of a part-time Intern. Public Works budget totals $10,486,794, a $1,106,910 increase from 2014 projections and $350,249 from the 2014 budget. The increase can be attributed to the overall organizational restructuring with Facilities Maintenance with a budget of $1,021,479, Custodial Services with a budget of $324,589, and Right -of -Way Maintenance with a budget of $595,875. Right-of-way incorporated the full -year of higher landscaping standards with a contract awarded in the spring of 2014 for a $30,000 increase over the 2014 budget and to include the outsourcing of FM35 and FM518 medians and additional medians currently maintained in-house for $65,000 as additions to the contract. The 2014 budget included one-time nonrecurring expenditures of $300,000 for a right-of-way assessment and $525,000 for pavement and sidewalk rehabilitations to name a few. For 2015, $231,712, of the General Fund portion of Geographic Information Systems is under Information Systems as part of the General Government portion of the budget. Public Works budget includes additional equipment and capital improvements budgeted in FY 2015 for Traffic Management, including $192,000 for traffic span wire upgrades, $138,186 for a flashing left turn arrow program, $38,760 for school flasher replacements, and $101,509 for the replacement of a dump truck and $134,615 for Pneumatic Roller & Recycler Rental. The budget for Parks & Recreation totals $6,773,623, a decrease of $1,466,266 from fiscal year 2014 projections and a decrease of $1,868,367 from the budget. The majority of the decrease is related to the department restructuring, transferring $993,284 for Facilities Maintenance and $324,589 for Custodial Services to Public Works. A portion of Park Maintenance related to right-of-ways also is transferred to Public Works. Parks & Recreation includes $106,840 for Shadow Creek Sportsplex operations anticipated for 2 months of 2015, $39,921 Centennial Park operations for the last 4 months of 2015 and $67,841 for new recreation software; In addition, $28,450 has been allocated for replacement, mower and mower decks for parks maintenance. Transfers out to other funds total $1,546,744 and include transfers to the Property Insurance Fund towards property insurance premiums of $1,046,368, $235,491 to the Water/Sewer Fund, $156,844 to the Debt Service Fund for the University of Houston Pearland Campus, and $8,041 for University of Houston Capital Renewal Fund, and $100,000 to the Capital Fund toward the Fire Station #3 improvements. This is $1,237,447 lower than 2014 due to a one-time transfer to the self-insurance medical fund for reserves. Revenues are under expenditures by $3,827,478. Of this amount, $1,784,587 is recurring and $1,568,695 non- recurring. Last year's forecast for 2015 showed the General Fund being structurally unbalanced by $842,000, before the known effects of the full Fire/EMS merger and unanticipated medical increases. Due to increased operating expenditures for completion of capital projects, such as Fire Station #2, Shadow Creek Ranch, Centennial and Independence Park Improvements, the fund is projected to remain structurally unbalanced in fiscal year 2016, however, still over fund balance policy and back in balance in fiscal year 2017. Ending balance at 9/30/2015 is estimated to be $11,704,650, which is over the two month reserve policy requirement by $1,266,236. The dollar amount over policy can be used to fund non -recurring expenditures. 97 GENERAL FUND REVENUE DETAIL FY 2015 ADOPTED BUDGET ACCOUNT NUMBER REVENUE CATEGORY FY2014 FY2013 AMENDED ACTUAL BUDGET FY2014 YEAR END PROJECTION FY 2015 ADOPTED BUDGET 010-0000-350.01-01 010-0000-350.01-02 010-0000-350.01-03 010-0000-350.01-04 010-0000-350.01-06 *TAXES 010-0000-350.02-01 010-0000-350.03-01 *OTHER TAXES 010-0000-350.04-01 010-0000-350.04-02 010-0000-350.04-03 010-0000-350.04-04 010-0000-350.04-05 *FRANCHISE FEES 010-0000-351.01-01 010-0000-351.01-03 010-0000-351.01-04 010-0000-351.01-05 010-0000-351.01-06 010-0000-351.01-07 010-0000-351.01-08 010-0000-351.01-09 010-0000-351.01-10 010-0000-351.01-11 010-0000-351.01-12 010-0000-351.01-13 010-0000-351.01-14 010-0000-351.01-15 010-0000-351.01-32 010-0000-351.01-33 010-0000-351.01-34 010-0000-351.01-35 010-0000-351.01-40 010-0000-351.01-99 010-0000-351.02-02 010-0000-351.02-03 010-0000-351.02-04 010-0000-351.02-05 010-0000-351.02-09 010-0000-351.02-10 010-0000-351.03-01 010-0000-351.03-02 010-0000-351.03-03 010-0000-351.03-05 010-0000-351.04-01 010-0000-351.04-03 010-0000-351.04-04 010-0000-351.04-05 CURRENT TAXES DELINQUENT TAXES PENALTY & INTEREST IN LIEU OF PROPERTY TAXES MUD 5 SALES TAXES MIX DRINK TAXES GAS COMPANY ELECTRIC COMPANY TELEPHONE COMPANY CABLE TELEVISION SANITATION RESIDENTIAL BUILDING PERMITS PLATTING FEES BEER PERMITS MOVING PERMITS PEDDLERS & SOLICITORS HEALTH CERTIFICATE FEES WRECKER PERMITS BUILDING PLAN CHECK FEE OCCUPANCY PERMITS DEMOLITION PERMITS BLDG. SITE WORK PERMIT ALARM PERMITS HEALTH -REGISTRATION 1 YR. HEALTH -REGISTRATION 2 YR. SIGN PERMITS AMBULANCE PERMIT TAXI CAB PERMIT TEMPORARY STRUCTURES RECORDATION & COURIER FEE MISCELLANEOUS BP PLAN & ZONE ADJUSTMENT GARAGE SALE PERMITS CULVERT PERMITS ANIMAL LICENSES FOSTER HOME INSPECTION MOWING LIEN ELECTRICAL PERMITS PLUMBING & GAS PERMITS MECHANICAL PERMITS REINSPECT. FEE/INSPECTION FIRE ALARM FIRE PROTECTION FIRE SPRINKLER FIRE SPRINKLER -ALTERATION $10,874,381 $11,523,680 122,012 100,000 100,009 110,000 82,349 84,655 199 $11,539,447 83,012 110,000 168,170 1,194 $12,715,458 93,000 120,000 175,750 11,178,950 11,818,335 11,901,823 13,104,208 15, 742, 794 17, 253, 319 16, 833, 524 17, 843, 535 176,991 175,000 205,125 220,000 15,919,785 17,428,319 17,038,649 18,063,535 230,038 242,888 285,497 294,062 2,755,125 2,913,727 2,927,365 3,083,733 287,691 295,000 281,155 272,721 1,204,283 1,310,000 1,329,060 1,404,174 1,281,639 1,345,000 1,441,482 1,591,748 5,758,776 6,106,615 6,264,559 6,646,438 1,238,710 107,739 19,845 4,100 4,555 84,282 4,530 801,431 7,900 1,350 39,209 41,002 3 (75) 12,620 14,250 4,643 600 9,199 275 21,600 36,225 360 33,645 1,850 (2,254) 115,913 149,024 156,447 8,465 5,839 790 9,216 174 1,304,000 1,675,514 1,835,000 90,000 114,313 177,180 20,000 21,000 24,000 4,000 3,900 4,100 3,000 4,355 4,500 85,000 80,000 133,250 4,500 4,500 4,500 626,080 871,267 859,800 8,000 7,500 8,000 1,300 1,300 1,300 32,220 90,585 69,516 40,000 39,209 45,000 500 9,500 13,000 13,000 13,300 18,650 18,650 4,932 2,463 3,500 500 1,700 1,200 6,415 9,000 9,000 200 275 275 21,200 23,000 23,000 38,000 38,000 38,000 800 500 800 32,000 32,000 32,000 1,950 1,950 1,950 3,330 124,400 144,575 153,735 161,550 185,216 195,725 166,300 179,400 180,690 7,260 7,260 7,260 6,700 2,678 3,500 950 2,300 2,500 9,500 11,453 10,000 250 150 250 98 GENERAL FUND REVENUE DETAIL FY 2015 ADOPTED BUDGET ACCOUNT NUMBER REVENUE CATEGORY FY2013 ACTUAL FY2014 AMENDED BUDGET FY2014 YEAR END PROJECTION FY 2015 ADOPTED BUDGET 010-0000-351.04-06 010-0000-351.04-07 010-0000-351.04-08 010-0000-351.04-09 FIREWORKS IRRIGATION SWIMMING POOL DIRT GRADING PERMIT *LICENSES & PERMITS 010-0000-352.00-00 010-0000-352.01-00 010-0000-352.01-01 010-0000-352.02-00 010-0000-352.05-00 010-0000-352.06-00 010-0000-352.07-00 010-0000-352.08-00 FINES & FORFEITURES CHILD SAFETY CHILD SAFETY -HARRIS CO. COMMERCIAL CARRIER FINES TIME EFFICIENCY ANIMAL CRUELTY OMNIBASE STATE FEES *FINES & FORFEITURES 010-0000-353.01-01 010-0000-353.01-02 010-0000-353.01-03 010-0000-353.01-04 010-0000-353.01-06 010-0000-353.01-07 010-0000-353.01-08 010-0000-353.01-09 010-0000-353.01-10 010-0000-353.01-11 010-0000-353.01-12 010-0000-353.01-13 010-0000-353.01-14 010-0000-353.01-16 010-0000-353.01-40 010-0000-353.01-41 010-0000-353.01-99 010-0000-353.03-01 010-0000-353.03-02 010-0000-353.03-03 010-0000-353.03-06 010-0000-353.03-07 010-0000-353.03-08 010-0000-353.03-09 010-0000-353.03-10 010-0000-353.03-30 010-0000-353.05-01 010-0000-353.05-05 010-0000-353.05-06 010-0000-353.05-25 AMBULANCE SERVICE FEE MUD/EMS/FIRE COLLECTIONS STRAT PTR AGRMT/FIRE,EMS FALSE ALARM FEE ARREST FEES CLEAR. LETTER FEE SUBPOENA OFFENSE REPORT COPIES ACCIDENT REPORT COPIES OTHER COPIES SRO EQUIPMENT SRO PERSONNEL NON EMERG AMBULANCE TRANSPORT NON EMERG EMS SERVICE TRAINING TUITION TRAINING RECYCLING ANIMAL SHELTER FEES EVENTS & PROGRAMS FACILITY RENTALS SWIMMING POOL FEES NATATORIUM RECREATION CTR. RENTALS REC. CENTER MEMBERSHIPS FACILITY RENTAL - U OF H SPECIAL EVENT PERMIT FEES MISCELLANEOUS ENGINEERING INSPECT FEE TIRZ ADMINISTRATION FEES PERMITS INSPECTION FEE TRAFFIC IMPACT ANALYSIS *CHARGES FOR SERVICES 010-0000-356.00-00 010-0000-356.06-00 *INTEREST INTEREST INCOME UNREALIZED CAPITAL GAIN(LOSS) 50 18,547 35,300 1,500 150 17,000 31,580 1,250 150 18,000 35,660 1,500 150 18,500 41,000 1,500 2,988,859 2,877,117 3,642,823 3,126,349 24,109 5,263 76,978 (6,269) 300 16,696 90,249 3,327,826 25,000 5,250 86,000 (6,890) 350 17,600 113,145 2,755,000 24,651 5,350 70,000 (5,508) 350 16,225 79,872 3,922,331 2,904,000 24,800 5,350 75,000 (5,808) 350 17,325 84,222 3,333,675 3,568,281 2,945,940 2,832,968 2,960,000 77,384 76,766 256,834 224,100 60,750 76,000 3,910 5,500 420 400 63 75 84 70 6,234 5,500 2,610,000 78,715 271,963 62,000 5,495 475 150 100 6,410 80 84,545 90,000 88,500 644,243 668,876 659,486 2,020 5,600 5,725 4,380 3,500 3,716 1,100 46,146 47,000 479,240 595,994 117,217 103,033 6,889 18,385 99,422 117,225 61,639 46,470 1,128,900 1,100,000 2,940 700 150 300 1,250 6,000 269,420 111,000 6,351,358 6,897,616 10,220 8,500 9,750 6,000 7,000 4,000 3,000 47,000 477,645 116,050 24,000 133,045 40,000 1,194,192 900 50 3,850 123,515 6,847,349 13,400 10,500 3,105,239 2,757,435 78,342 336,000 65,000 5,495 475 150 100 6,450 88,500 703,594 7,000 4,000 3,000 47,000 495,591 105,250 24,000 39,357 134,270 1,222,500 900 150 4,500 120,000 7,804,668 13,500 10,500 12, 567, 692 13,175, 835 12,828,870 52,477 60,500 82,974 1,586 14,077,727 84,000 54,063 60,500 82,974 84,000 99 GENERAL FUND REVENUE DETAIL FY 2015 ADOPTED BUDGET ACCOUNT NUMBER REVENUE CATEGORY FY2013 ACTUAL FY2014 FY2014 AMENDED YEAR END BUDGET PROJECTION FY 2015 ADOPTED BUDGET 010-0000-357.03-01 COUNTY *INTERGOVERNMENTAL 010-0000-358.04-00 010-0000-358.05-00 010-0000-358.08-00 010-0000-358.10-00 010-0000-358.12-00 010-0000-358.13-00 010-0000-358.14-00 010-0000-358.15-00 010-0000-358.17-00 010-0000-358.26-00 010-0000-358.29-00 010-0000-358.37-00 010-0000-358.40-00 010-0000-358.45-00 010-0000-358.99-00 010-0000-358.99-01 *MISCELLANEOUS 010-0000-359.01-00 010-0000-359.03-00 010-0000-359.09-00 010-0000-359.11-00 010-0000-359.18-00 010-0000-359.23-00 010-0000-359.24-00 010-0000-359.26-00 010-0000-359.29-00 010-0000-359.31-00 010-0000-359.33-00 010-0000-359.34-00 010-0000-359.36-00 010-0000-359.39-00 010-0000-359.89-00 010-0000-359.55-00 010-0000-359.96-00 010-0000-359.97-00 BUILDING RENT OTHER VICTIMS PROGRAM STREET LIGHT CHARGES RECYCLE REVENUE N.S.F. FEES PLAT COPIES REPRODUCTION/ XEROX COPIES SALE OF PROPERTY WAIVER OF ENCROACHMENT JAIL PHONE AMBULANCE PERMIT APP. FEE SUSPENSE REVENUE SIGN REVENUE INSURANCE REIMBURSEMENTS MISCELLANEOUS MUD ANNEXATION FROM FUND 15 FROM FUND 18 FROM FUND 30 FROM FUND 42 FROM FUND 50 FROM FUND 67 FROM FUND 68 FROM FUND 70 FROM FUND 101 FROM FUND 301 FROM FUND 302 TRANSFER FROM FUND 202 TRANSFER FROM FUND 203 TRANSFER FROM FUND 116 TRANSFER FROM CDBG FUND FROM FUND 31 TRANSFER FROM FUND 200 TRANSFER FROM FUND 201 *GRANT, ISSUANCE, TRANSFER 010-0000-360-03-00 CAPITAL LEASE PROCEEDS *OTHER FINANCING SOURCES 2,844 2,844 17,180 6,911 86,129 67,667 3,645 28 1,244 76,655 1,500 793 4,450 1,095 27,263 43,142 233,213 89,759 660,674 534,862 2,246,966 18,095 7,000 95,000 69,500 4,000 30 1,200 67,500 1,000 1,000 4,125 31,412 20,000 215,000 18,040 7,000 63,904 59,373 7,000 1,200 1,775,259 1,000 4,450 22,012 29,933 257,795 18,095 7,000 50,000 52,953 5,000 1,200 28,000 1,000 4,450 22,500 337,111 151,438 927,817 150,665 109,974 263,715 685,502 17,227 489,081 83,929 395,692 406,495 7 43,663 39,355 115,945 21,000 935,000 272,032 132,293 278,498 21,844 236,513 19,763 1,044,922 506,398 45,450 79,889 113,792 21,000 935,000 272,032 11,274 132,293 278,498 21,844 236,513 19,763 1,044,922 506,398 45,450 146,794 79,889 527,309 119,482 1,190,100 146,785 50,372 218,786 191,107 93,947 22,431 834,297 107,787 3,764,560 3,709,547 3,865,462 1,179,413 2,754,764 2,426,987 2,975,094 1,187,000 1,179,413 2,754,764 2,426,987 1,187,000 TOTAL $57,409,291 $ 62,034,175 $63,245,053 $63,692,881 100 GENERAL FUND EXPENDITURES By FUNCTION / DEPARTMENT FY 2015 ADOPTED BUDGET FUNCTION/DEPARTMENT FY 2013 Actual FY 2014 Amended Budget FY 2014 Year End Projection FY 2015 Adopted Budget GENERAL GOVERNMENT City Council City Manager Human Resources City Secretary Legal Information Systems Geographic Information Systems Finance Other Requirements* Library' GENERAL GOVERNMENT TOTAL PUBLIC SAFETY Police Animal Services Fire Administration Fire Operations Fire Marshal Emergency Management Health/Code Enforcement Emergency Medical Services 102,643 673,544 710,583 293,686 646,482 1,354,791 1,818,822 963,548 133,645 116,297 781,326 873,086 319,477 683,077 1,435,919 1,887,917 1,251,667 281,889 104,632 1,051,905 875,312 322,340 689,447 1,460,836 1,894,138 1,176,003 732,503 106,575 731,787 788,203 334,026 696,870 2,809,040 231,712 1,988,872 2,301,815 384,979 6,697,743 7,630,655 18,527,952 21,252,998 6,410,733 7,451,352 640,011 686,004 43,059 53,020 3,785,906 5,005,979 8,307,116 21,031,809 7,243,749 656,179 47,421 4,709,118 10,373,879 22,442,558 779,096 1,003,376 9,919,982 709,900 39,362 495,274 PUBLIC SAFETY TOTAL 29,407,660 34,449,353 33,688,276 35,389,548 COMMUNITY SERVICES Community Development Community Development Administration 268,175 456,122 446,542 310,676 Planning 263,747 364,504 346,657 415,862 Permits & Inspections 809,206 988,873 995,115 1,111,829 Health/Code Enforcement 392,863 408,636 403,562 Animal Services 636,652 756,484 752,572 Communications 327,896 332,922 336,984 434,718 Municipal Court 614,169 646,164 655,254 676,686 COMMUNITY SERVICES TOTAL PUBLIC WORKS Public Works and Engineering Administration Public Works Operations Administration Facilities Maintenance Custodial Services Fleet Streets & Drainage Right -of -Way Maintenance Service Center Traffic Operations and Maintenance Engineering & Capital Projects : Capital Projects Geographic Information Systems Traffic Operations and Maintenance Engineering PUBLIC WORKS TOTAL 3,312,707 3,953,705 3,936,686 2,949,771 266,032 279,768 277,611 309,363 159,418 493,101 483,758 153,178 21,781 985,347 317,089 390,524 432,870 423,276 484,998 4,204,505 5,291,117 4,872,224 4,215,851 731,463 201,109 143,993 133,044 174,911 1,137,980 720,618 805,956 824,337 841,635 168,931 248,455 247,800 637,909 1,290,118 945,875 992,448 1,151,167 1,150,178 1,134,979 7,741,495 10,136,545 9,379,884 10,486,794 101 GENERAL FUND EXPENDITURES By FUNCTION / DEPARTMENT FY 2015 ADOPTED BUDGET FUNCTION/DEPARTMENT FY 2013 Actual FY 2014 Amended Budget FY 2014 Year End Projection FY 2015 Adopted Budget PARKS & RECREATION Administration Resource Development Recreation Center/Natatorium Westside Events Center Parks Maintenance West Parks Maintenance Facilities Maintenance Custodial Services Athletics Special Events Senior Program Youth Development Aquatics Recycling PARKS & RECREATION TOTAL SUBTOTAL TRANSFERS GENERAL FUND TOTAL 945,743 1,566,720 190,158 917,297 1,170,830 861,083 337,155 260,443 251,756 201,137 167,521 155,586 199,390 965,390 198,789 1,881,456 220,586 1,034,791 1,457,221 993,284 415,182 354,898 283,649 250,418 220,474 128,091 237,761 1,179,704 197,630 1,813,781 205,799 950,358 1,259,662 859,889 357,028 333,879 274,359 231,160 217,877 142,052 216,711 629,096 129,494 2,220,330 219,762 2,381,229 335,591 280,034 209,128 141,223 227,736 7,224,818 8,641,990 54,384,423 64,812,248 8,239,889 6,773,623 63, 551,851 65,973,615 1,973,712 1,386,903 2,784,191 1,546,744 56,358,135 66,199,151 66,336,042 67,520,359 General Fund Expenditures by Function/Department FY 2015 Proposed Operating Budget* Parks & Rec, 10% Public Works, 16% Community Services, 4% General Government, 16% Public Safety, 54% 102 GENERAL FUND EXPENDITURE SUMMARY (All Departments) FY 2015 ADOPTED BUDGET Transfers 2% Capital Outlay 5% Inventory 1% Sundry Charges 2% Miscellaneous Services 14% Equipment Mtce. 4% Building Mtce. 2% Materials & Supplies 3% BY CATEGORY FY 2013 Actual FY 2014 Amended Budget Salaries & Wages 67% FY 2014 Year End Projection FY 2015 Adopted Budget Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Charges Inventory Capital Outlay Transfers $36,394,657 $1,746,187 $1,343,411 $2,574,551 $7,098,766 $530,817 $334,475 $4,361,558 $41,818,723 $2,339,565 $1,663,918 $2,876,995 $9,584,310 $695,619 $579,702 $5,253,416 $41,130,853 $2,048,067 $1,458,214 $2,823,276 $9,327,377 $637,912 $546,957 $5,579,195 $45,352,296 $2,276,581 $1,349,593 $2,682,791 $9,187,220 $1,388,338 $344,590 $3,392,206 SUB -TOTAL TOTAL 54,384,423 64,812,248 63,551,851 65,973,615 1,973,712 1,386,903 2,784,191 1,546,744 $56,358,135 $66,199,151 $66,336,042 $67,520,359 103 GENERAL GOVERNMENT U U Q U \ T N3; QU _ d W C W O U� NQ 0 a) W W _ O U 0 \ J \ OC C I- H c m c 2 0 0 • \ \ J\QI /\ / CO .__ C 0 ( \/ 7 CO t mV = m 5 O N � O) m N C N C A W W m N H E W , Q N = a 0 co o E ma W 4-8 D y - N J O 2 U J Q(n \ 2" U ,3 ).2 N U ,R Q V M 3f _ C Q Q 5 N \ J\ J� / I I Jj J m N � U m0 Q V m \ J\ 0 I I / \I \% \/ \ N N U NCOO) c T N C V CD) Q m CC m = Q • / / / J o N U O Y W O ▪ 4 zE p O 0 to C r U J .- a O U) C O o W no E \ \ O~/ 0 I I I I • \� \/ C _ c W U an O m OF O 0 \ J\ J\ J\ N _V _ N c LL W 0 .0 ac O o a W N a Z .N. c a J J §m U_ ' W coC :11;3"£ N W r E N = C 0 a W J W LL a U� \ /\ _ O (/) U U C O 0 0 0 C O O 49- Li 104 GENERAL GOVERNMENT EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT / DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget City Council City Manager Human Resources City Secretary Legal Information Systems Geographical Information Systems Finance Other Requirements* Library GENERAL GOVERNMENT TOTAL 102,643 116,297 104,632 106,575 673,544 781,326 1,051,905 731,787 710,583 873,086 875,312 788,203 293,686 319,477 322,340 334,026 646,482 683,077 689,447 696,870 1,354,791 1,435, 919 1,460, 836 2,809,040 231,712 1,818,822 1,887,917 1,894,138 1,988,872 963,548 1,251,667 1,176,003 2,301,815 133,645 281,889 732,503 384,979 6,697,743 7,630,655 8,307,116 10,373,879 *Expenditures listed here for Other Requirements do not include transfers. EXPENDITURES BY CATEGORY Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Charges Inventory Capital Outlay GENERAL GOVERNMENT TOTAL STAFFING BY DEPT/DIVISION 3,667,489 4,063,066 4,229,300 4,906,497 64,919 68,460 66,488 76,789 400 652 350 493,900 673,006 660,577 614,233 1,498,292 1,903,126 2,019,027 1,834,189 476,078 572,620 521,674 1,239,195 136,604 224,225 222,200 150,593 360,059 125,500 587,500 1,552,383 6,697,743 7,630,655 8,307,116 10,373,879 City Council City Manager* Human Resources* City Secretary Legal** Information Systems**** Geographical Information Systems**** Finance Other Requirements Library*** GENERAL GOVERNMENT TOTAL 6 6 6 6 4 4 4 6 9 9 9 7 4 4 4 4 5 6 6 6 5 6 6 7 2 17 18 18 18 50 53 53 56 *Two part-time Receptionists were moved from HR to City Manager. **A part-time Litigator was approved mid -year FY14. ***Library staffing funded by County. ****General Fund positions only; GPS personnel in Enterprise Fund; GIS and GPS moved to General Fund and reports to Information Systems Department; Information Systems reports to the City Manager. 105 General Government as % of General Operating Expenditures FY 2015 City Council,0.2% City Secretary, 0.5% Library, 0.6% City Manager, 1.1% Legal, 1.1% H.R., 1.2% Other Require., 3.4% Finance, 3.0% Information Systems/GIS, 4.6% General Government as `)/0 of General Fund Personnel FY 2015 8.6% City Secretary, 0.6% City Council, 0.9% City Manager, 0.9% Legal, 0.9% Human Resources, 1.1% Information Systems, 1.4% Finance, 2.8% 106 CITY COUNCIL -1010 OVERVIEW The City Council is the legislative and policy -making body of the City. The Mayor and each Council member are elected at -large, and the Mayor and all other Council members hold office for a period of three years and until a successor is elected and qualified. Council members shall be limited to two full consecutive terms of office and there is no limitation on the office of the Mayor. The Council appoints the City Manager, City Attorney, and Municipal Court Judge. The Mayor and City Council also provide community leadership, develop policies to guide the City in delivering services and achieving community goals, and encourage citizen awareness and involvement. The policies established by the City Council are implemented by the City Manager and his staff. Council salaries and business expenditures are charged to this department's budget. Key Budget Items for FY 2015 Include: ♦ No significant changes. GOALS ♦ Maintain strong relationships with TxDOT and H-GAC in support of the City's current and future financial needs involving transportation, facilities, and major capital improvement priorities. ♦ Determine priorities of projects and the impact of operations and maintenance of projects. ♦ Pursue and increase the number of businesses in accordance with the PEDC Strategic Plan. ♦ Take a pro -active role in regional water supply issues, projects, and strategies. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Continued exploration of the feasibility of a Westside Animal Control facility. ♦ Completed objectives within Council's Strategic Priorities. ♦ Appointed new City Manager following the retirement of former top executive. ♦ Held Quarterly HOA meetings to disseminate information and hear from citizens. ♦ Held election on Charter Amendments. ♦ Implemented Economic Strategic Plan. FISCAL YEAR 2015 OBJECTIVES ♦ Provide governance over the issuance and awards of contracts for professional services and construction for all capital projects. ♦ Complete objectives within Council's Strategic Priorities. PERFORMANCE MEASURES 95% 93% 91% 89% 87% 85% Citizen Survey Ratings Good to Excellent Ratings of Overall Quality of Life in Pearland 2009 2011 2013 85% 83% 81% 79% 77% 75% Citizen Survey Ratings Good to Excellent Quality of Services Received for the Tax Dollar 2009 2011 2013 107 CITY MANAGER - 1020 OVERVIEW The City Manager is appointed by the City Council to administer the daily operations of the City and implement policies established by City Council. The City Manager is responsible for preparation, filing and management of the annual budget to meet the organization goals, and reports to the City Council on the City's financial position. The City Manager also attends Council meetings, special meetings, and public hearings. The Deputy City Manager and an Assistant City Manager assist the City Manager. The Deputy City Manager supervises the General Government departments that include human resources, financial management, public safety, water billing and city services functions of government, while the Assistant City Manager supervises capital improvement activities and community development departments; such as: Parks & Recreation, Engineering, Public Works, Capital Projects, and Traffic Management. Key Budget Items for FY 2015 Include: ♦ Two part-time Receptionist positions moved from Human Resources. ♦ Revision of an Assistant City Manager position to a Management Analyst position. GOALS ♦ Keep City Council informed on the day-to-day business of the City. ♦ Provide monthly financial and capital project progress reports to City Council. ♦ Develop an annual operating budget that meets the needs of a growing City. ♦ Continue successful implementation of the 2007 bond program. ♦ Expand cooperative relationships with Pearland ISD, Alvin ISD, Brazoria County, and respective Brazoria County Drainage Districts. ♦ Continue to advocate for added traffic/transportation capacity city-wide. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Completed objectives within the Council's strategic priorities. ♦ Completed consolidation of Fire and EMS departments. ♦ Transitioned the role of City Manager. ♦ Re -organized the City's government structure. FISCAL YEAR 2015 OBJECTIVES ♦ Continue completion of objectives within the Council's strategic priorities. ♦ Oversee the City's transition into a new Enterprise Management System ♦ Oversee the City's transition into multi -year financial planning and management practices. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of authorized FTE1 employees per 1,000 population2 GF Operating Budget $ per capita 6.52 6.28 $511.79 $587.26 6.44 5.25 $619.26 $599.76 'The number of authorized FTE employees is based on the budgeted amount of full-time equivalent positions, in the general operating fund including approved changes. The General Operating Fund excludes transfers. 2The population estimates are: 97,200 for FY2012, 103,800 for FY2013, 106,900 for FY2014, and 110,000 for FY2015. 108 HUMAN RESOURCES — 1040 OVERVIEW The Human Resources Department develops and disseminates, and trains employees regarding the City personnel policies; administers the City's benefit and compensation plans, and oversees the hiring, development and retention of City employees. The department is responsible for staff recruitment, new employee orientation, compensation administration, training and extensive recordkeeping. Department personnel investigate employee grievances, interpret City policy and assist employees in a myriad of health and benefit capacities. The department assists supervisors with employee performance, regulatory compliance, employee relations and risk management. Key Budget Items for FY 2015 Include: ♦ LEAD Program funded for $20,000. ♦ Moved two part-time Receptionist positions to the City Manager Office. GOALS ♦ Recruit and retain top talent. ♦ Support talent with professional development. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Introduced on-line benefit enrollment process. ♦ Continued Wellness Initiatives including the Core Program, Stairwell to Health, Maintain No Gain, 5 A Day 5 A Week, Biggest Loser, Step into Health, and lectures. ♦ Conducted HIPPA compliance audit and new policies and procedures were developed and disseminated. FISCAL YEAR 2015 OBJECTIVES ♦ Develop and reinforce the need for competitive compensation to attract and retain top talent. ♦ Research and invest in professional development programs to improve job skills, leadership and productivity. ♦ Assist Managers and Supervisors with recruiting and hiring newly -created positions PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of vacated or new positions posted' Number of employment applications received' Annualized Citywide turnover rate (FT employees)2 % of workers' comp claims where time is lost' (% of current full-time employees) 160 147 155 100 4,936 7,293 8,507 7,500 16.1% 14.7% 15.6% 10.0% 1.9% 0.9% 0.1% 0.1% 109 CITY SECRETARY - 1050 OVERVIEW The City Secretary's Office is the custodian of records for the City. This department administers open records requests from citizens and assists other departments with research. The office creates the Agenda packets for City Council meetings, maintains records and minutes of the meetings, coordinates administration of City elections with Brazoria County, maintains historical records and archives, and provides the public with information in accordance with the Texas Public Information Act. Key Budget Items for FY 2015 Include: ♦ No significant changes. GOALS ♦ Record and maintain all City Council actions and City documents accurately and in a timely manner. ♦ Administer and produce timely Public Information as requested under the Texas Public Information Act. ♦ Administer the department's budget efficiently and monitor the funds allocated and expended. ♦ Administer Oaths of Office to new City employees and officials as mandated by State Law. ♦ Maintain claims information log. ♦ Issue Alcoholic Beverage Permits in an efficient and timely manner to maintain compliance with the City Ordinance and Texas Alcoholic Beverage Commission regulations. ♦ Process Peddlers Permits in an efficient and timely manner to allow the community to be served by vendors who are legally permitted to conduct business in the City door-to-door in compliance with City Ordinance. ♦ Accept and process applications to serve on Boards and Commissions in a timely manner and verify that information on the application qualifies the applicant to serve. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Assist Departments with the update of the City's Code of Ordinances Books. ♦ Redesign the database for the Boards and Commissions Board. ♦ Streamlined a fully indexed agenda and supporting materials hyperlinked to the Council meeting Agenda Packet. FISCAL YEAR 2015 OBJECTIVES ♦ Update City Ordinances for Codification of amendments and transcribe minutes of City Council meetings. ♦ Respond to requests for public records in accordance with the Public Information Act (PIA) daily and maintain and produce documents that enable transparency of local government for the public. ♦ Coordinate departmental preparation of electronic Council packets. ♦ Post and publish notices of meetings, public hearings, zoning map amendments and adopted ordinances in accordance with the Open Meetings Act. ♦ Record, transcribe and maintain all Council, Board and local Commission meetings. ♦ Issue peddler permits, and process liquor license applications, ordinance amendments and resolutions adopted by City Council. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target PUBLIC RECORDS Open Records Requests processed (Freedom of Information Act) 979 1,010 1,004 997 ELECTIONS Number of registered voters (average) 51,024 55,741 59,085 Number of votes cast (average) 2,352 3,214 3,535 Average % of voter turnout 4.6% 5.8% 6.0% 51,024 3,214 5.8% 110 LEGAL DEPARTMENT — 1080 OVERVIEW The City Attorney is appointed by the City Council and serves as legal adviser to the City Council, City Manager, and City departments, representing the City in legal matters. The department consists of four full-time attorneys supported by a Legal Secretary. The Associate City Attorney serves as Prosecutor in Municipal Court. The legal department is responsible for drafting the legislation upon which City Council votes in setting the policies of the City, attending City Council and other City board meetings to advise City officials and representatives regarding legal matters. Some of these include: selecting and managing outside counsel to represent the City in specialized litigation and other legal proceedings, prosecuting misdemeanors in the City's Municipal Court, and advising and assisting the City's departments regarding legal issues associated with contracts, real estate transactions, personnel, economic development, engineering and public works issues, emergency services, and finance. Key Budget Items for FY 2015 Include: ♦ No significant changes. GOALS ♦ Continue to monitor and develop an oversight protocol with the 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 orderly transition of newly annexed territories. ♦ Assist all City departments with the implementation of their respective goals and objectives. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Prepared numerous development agreements for residential, commercial and institutional development in the City of Pearland. ♦ Coordinated and assisted outside counsel in the resolution of multiple litigation cases. ♦ Efficiently carried out the prosecutorial duties of a rapidly growing municipal court. ♦ Coordinated the acquisition of multiple properties through the eminent domain process, thereby allowing for the timely construction of various City projects. ♦ Provided legal representation at all meetings of the City Council, PEDC, P&Z and the ZBA. ♦ Provided effective legal counsel to all departments in the City on a daily basis. FISCAL YEAR 2015 OBJECTIVES ♦ Provide legal representation at all meetings of the City Council, Planning and Zoning Commission and the Zoning Board of Adjustments. ♦ Provide each department legal services in a quality, yet efficient and cost-effective manner; such service to include specific training for each City department. ♦ Coordinate, with outside counsel, on multiple property acquisitions associated with the various City projects. ♦ Review and revise the City's Code of Ordinances. ♦ Provide competent and efficient prosecutorial services for the City's Municipal Court. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of FOIA requests reviewed Number of contracts prepared or reviewed 260 289 346 350 190 205 291 300 111 INFORMATION SYSTEMS/GIS/GPS - 1085-1086 OVERVIEW The primary role of the Information Systems 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 and GPS departments which develop and manage the Citywide Geographic Information System. Key Budget Items for FY 2015 include: ♦ New Chief Information Officer Position, beginning January 1, 2015. ♦ Consolidation, the departments of Information Technology, GIS and GPS (GPS is funded in Water/Sewer Fund) into the new Information Systems Department, reporting to the City Manager. ♦ Year 1 of 2 of ERP replacement. ♦ Five replacement desktops, 3 replacement laptops and 4 dispatch computers - $20,550. ♦ Replacement of 19 Police Panasonic Toughbooks - $98,800. ♦ MS Office update for 28 desktop computers ♦ Public Safety IT systems equipment replacement - $75,000. ♦ Edge router replacement. ♦ Network Management System hardware. GOALS ♦ Provide City-wide innovation and leadership in the utilization and deployment of information technology services and applications. ♦ Ensure high -quality, effective and efficient production and support services for our employees. ♦ Maintain a secure information technology environment, ensuring the confidentiality, integrity and availability of critical information and systems. ♦ Continue to educate City staff as to what options and resources are available to them in order to allow all City services to flourish, while utilizing the minimal level of resources. ♦ Promote the use of Geographic Information System (GIS) and related technologies to more effectively and efficiently address problems, develop plans, and manage the natural, cultural, economic, and infrastructure resources of the City of Pearland. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Replaced Domino Lotus Notes email system with Microsoft Exchange Outlook system. ♦ Hired Consultant to help with Enterprise Resource Planning (ERP) Conversion. ♦ Installed redundant Internet service at PSB. ♦ Assisted with setup/installation of devices at new Fire/EMS Station #3. ♦ Assisted with new Municipal Court hardware and software deployment. FISCAL YEAR 2015 OBJECTIVES ♦ Support technological configurations associated with pending Enterprise Resource Planning (ERP) Conversion. ♦ Support departmental reorganization to coincide with hiring of Chief Information Officer (CIO). ♦ Integrate organizational principles needed for incorporation of GIS into Information Technology Department. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of PC's supported2 Percent of time LAN available Average Number of GIS layers maintained 448 455 575 578 99.97% 99.98% 99.98% 99.99% 98 101 106 105 112 FINANCE DEPARTMENT — 1260 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, financial planning, purchasing, payroll, and billings and collections. Finance also serves as the administrative point of contact for all federal and State grant -making agencies that support departmental and City- wide capital and non -capital endeavors supported with other sources of funds. Audits, compliance with internal and external administrative and fiscal policies, financial transparency, accounts payable/receivable, as well as the improvement and sustainability of our City's bond rating are other important aspects of the department's responsibilities. Key Budget Items for FY 2015 Include: • Funds for a Citizens' Survey and Post Employment Benefit Actuarial update, each conducted every other year. 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 2014 ACCOMPLISHMENTS • Presented and Council concurred on a new strategy of issuing 20 -year level debt for all new General Obligation and Certificates of Obligation bonds, anticipated to save $38 million in future interest costs based on 5 -year CIP and accelerated principal pay-off from 56% to 89% over 20 years. • Prepared ERP Consultant RFP, awarded and acted as liaison to consultant through software demonstrations of proposers. • Received Platinum Award for Financial Transparency from the Office of the Texas Comptroller. • Refunded $31.4 million in existing debt, saving $3.5 over 15 years, for a net present value savings of 7.59%. • Finalized Safe Routes to School Plan; presented to City Council and School Boards for adoption. FISCAL YEAR 2015 OBJECTIVES • Award contract and prepare for implementation of new enterprise financial management system. • Conduct and present 20 -year level debt analysis on the City's water -sewer revenue bonds. 113 FINANCE DEPARTMENT - 1260 PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Investments in compliance with policy and PFIA 100% 100% 100% 100% Unqualified audit opinion YES YES YES YES Audit Deficiences Identified 0 3 7 0 GFOA Awards: Budget YES YES YES YES CAFR YES YES YES YES City's GO/CO bond ratings: Moody's Aa2 Aa2 Aa2 Aa2 S&P AA- AA- AA AA Fitch AA AA AA AA City's Water/Sewer bond ratings: Moody's Aa3 Aa3 Aa3 Aa3 S&P AA- AA- AA- AA - Fitch AA- AA- AA- AA - 114 OTHER REQUIREMENTS - 1270 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 funds for self -funded Medical Fund. Key Budget Items for FY 2015 include: ♦ Compensation Plan adjustments — 2% merit increase for all personnel ($750,000) and a 3% step pay increase ($93,286) for Certified (Police) personnel. ♦ Salary savings of $300,000 for anticipated vacant positions. 115 LIBRARY — 1380 OVERVIEW Library services are provided through a cooperative effort of the City of Pearland and Brazoria County that support two facilities — the Tom Reid Library on the east side of the City, and the Business Center Drive Library on the west. The City provides the buildings and takes responsibility for their maintenance and other operating expenses. Brazoria County supplies the materials, provides the computers and network, and employs the library staff. The Pearland Business Center Drive (Westside) Library celebrated its grand opening on May 15, 2013. The new facility replaced a limited -service library substation at the City of Pearland's Westside Event Center. The Pearland Business Center Drive Library is located in a busy retail area in a leased storefront location. The Pearland Main Library is housed in the Tom Reid Building on Liberty Drive across from City Hall. As part of the voter -approved bond referendum in 2007, funding was approved to expand the current building, in 2015. As a result of a successful year of performance and continued growth in Pearland, the Business Center Drive Library will be the subject of additional expansion as well, with a plan to improve and increase the space by 65 percent. Pearland's libraries are the two busiest branches of the Brazoria County Library System (BCLS). They 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, including an extensive collection of books, audio -books, magazines, DVDs, and other electronic resources for all ages. The libraries offer book clubs and craft programs for adults, as well as classes on accessing the Brazoria County Library System's eBooks on standard eReaders. Free programs for children include baby, toddler, and preschool story times, and a teen advisory council. Key Budget Items for FY 2014 Include: ♦ Expansion of Business Center Drive Library and renovation of Tom Reid Library. GOALS ♦ Provide the Pearland community with traditional and progressive library services that support citizens' access to educational, informative, leisurely, and scholarly books and periodicals, in addition to small spaces for meetings, public Internet access, educational programs for children, and some assistive services for the elderly. FISCAL YEAR 2013 ACCOMPLISHMENTS ♦ Completed a full -year of operation of the Business Center Drive Library (West Side). ♦ Initiated plans for expansion and renovation of both local library facilities based on local growth and use. FISCAL YEAR 2014 OBJECTIVES ♦ Complete the physical expansion of the Business Center Drive Library to accommodate a 65% increase in space and use, based on increased demand and population growth. ♦ Begin renovation of the Tom Reid Library due to age of the facility, increased demand and population growth. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Tom Reid Library Number of volumes Number of items checked out - circulation Business Center Drive Library number of volumes number of checkouts 123,180 113,000 110,555 120,000 498,326 418,000 340,293 350,000 N/A 34,000 25,569 36,000 N/A 153,000 322,600 335,000 116 PUBLIC SAFETY -POLICE DEPARTMENT / U ---w.M. U C . O 5 N O N L E U . U O U Q H 0c D c a a— /\ /\ _ Jail Supervisor O o min E 2 047) 0 2 E 2 t m E °o QU % C 4) C -u.8 U O N U a O U O^ O N N �� c,30)d N U O N N (n N C O C a 0 d EN.7:- L N N d) U)� -SEE E E I - r a"a � Ud E E. ON CO U + O) — Lo No 0 co / \ `O CO a) Q 0 o) N c c 0 c � (p 0 E o E O _cU y N • N • I O • 0 N 117 2 PUBLIC SAFETY -FIRE DEPARTMENT Fire Chief* Deputy Chief ow kk \0 C& a) 2 _ 3 z 2 % _ 2 o > O 2 y 0 §§� kcn )- 2 / w « 2 2 ) v▪ f\ : @�— ▪ E|) -C Lt= %_ k�2a_ « � « « 'Reports to City Manager 118 PUBLIC SAFETY EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT / DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Police - Administration Police - Patrol Operations Police - Investigations Police - Community Services Police - Support Services Police - Jail Police - Commercial Vehicle Enforcement Police - School Resource Officer Police - Traffic Enforcement/Motorcycles Police - Special Investigations Police - Training POLICE TOTAL 1,169,332 1,266,979 1,233,475 1,316,220 9,723,103 10,639,340 10,704,643 12,054,265 1,675,342 2,281,972 2,267,411 2,296,597 756,933 1,002,634 985,142 849,774 1,614,495 1,986,396 1,899,446 1,972,524 899,852 1,143,789 1,052,890 1,141,957 208,284 233,232 219,649 230,605 1,090,677 1,137,350 1,146,159 1,175,948 795,567 1,066,481 1,009,512 913,934 517,522 389,416 408,588 384,176 76,847 105,409 104,894 106,558 18,527,952 21,252,998 21,031,809 22,442,558 Animal Services 779,096 Fire Administration Fire Operations Fire Marshal Emergency Management Health/Code Enforcement FIRE TOTAL Emergency Medical Services EMS TOTAL 1,003,376 6,410,733 7,451,352 7,243,749 9,919,982 640,011 686,004 656,179 709,900 43,059 53,020 47,421 39,362 495,274 7,093,803 8,190,376 7,947,349 12,167,894 3,785,906 5,005,979 4,709,118 3,785,906 5,005,979 4,709,118 PUBLIC SAFETY TOTAL $29,407,660 $34,449,353 $33,688,276 $35,389,548 EXPENDITURES BY CATEGORY FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Charges Inventory Capital Outlay PUBLIC SAFETY TOTAL 22,661,557 26,431,527 25,621,732 29,481,887 738,912 1,065,417 974,782 1,156,442 3,715 13,026 12,851 70,800 1,344,547 1,473,563 1,533,003 1,539,572 1,180,801 1,650,486 1,625,787 1,736,359 31,987 109,699 98,804 130,843 120,663 138,669 144,522 78,757 3,325,478 3,566,966 3,676,795 1,194,888 29,407,660 34,449,353 33,688,276 35,389,548 119 PUBLIC SAFETY EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET STAFFING BY DEPT/DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget* Projection Budget Police - Administration Police - Patrol Operations Police - Investigations Police - Community Services Police - Support Services Police - Jail Police - Commercial Vehicle Enforcement Police - School Resource Officer Police - Traffic Enforcement/Motorcycles Police - Special Investigations Police - Training POLICE TOTAL 6 6 6 6 95 98 96 102 18 18 21 22 7 7 8 8 32 32 32 32 14 15 15 15 2 2 2 2 11 11 11 11 8 8 8 8 5 5 3 3 198 202 202 209 Animal Services 11 Fire Administration Fire Operations Fire Marshal Emergency Management Health/Code Enforcement FIRE TOTAL 10 52 62 73 125 8 8 8 8 7 60 70 81 150 Emergency Medical Services 63 67 62 EMS TOTAL 63 67 62 PUBLIC SAFETY TOTAL *Same as adopted budget, unless where noted. 321 339 345 370 120 Public Safety as % of General Operating Expenditures FY 2015 Animal Services, 1.2% Fire, 18.4% Police, 34.0% Public Safety as % of General Fund Personnel FY 2015 Animal Services, 1.7% Fire, 23.0% Police, 32.0% 121 POLICE DEPARTMENT — 2211-2225 OVERVIEW The Pearland Police Department is responsible for enforcement of all local, state and federal laws within its jurisdiction. The goal of the department is to prevent crime and disorder and maintain the 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 and answers and responds to over 42,000 calls per year. The Police Department is very active in the community and is involved in various community programs aimed at reducing crime. These programs include National Night Out, Gang Awareness Task Force, the Citizens' Police Academy, Homeowners Association meetings, Neighborhood Watch Programs, Security Surveys and Home Safety Inspections, Christmas Toys for Tots, as well as other programs. The department operates out of the Public Safety Building on Cullen Blvd. For FY 2015, the Police Department consists of 202 full-time and 7 part-time employees. 155 Civil Service personnel (2 K-9 Officers and 2 Warrant Officers) 130 Police vehicles (marked, incl. 9 motorcycles, 35 unmarked) 33,376 estimated 911 calls for service 25.44 estimated City Annualized Index Crime Rate per 1,000 current population 3 minutes 17 seconds average response time The Animal Services Department was moved from Community Services to the Police Department effective fiscal year 2014-2015. This department provides protection to public health by establishing uniform rules for the control and eradication of rabies in accordance with the Texas Health and Safety Code, and enforces applicable rules, regulations, and ordinances. While protecting the public from problems with animals, the Animal Services Department also protects the animals. In addition to the responsibility for impoundment of stray animals within the city limits of Pearland, the Humane Officers trap wildlife, provide for adoption of animals, respond to citizen calls of concern or emergencies, provide speakers for educational events for school and local groups, enforce state and local ordinances, remove animal carcasses from roadways, investigate animal cruelty cases, investigate animal bite cases, provide maintenance and care of the shelter facility, as well as care of all impounded animals, and seek grant funding to promote operations. The Animal Services Department is on call 24/7 for animal related emergencies, and the shelter is open 7 days a week, except holidays. In FY 2014, the department responded to approximately 6,114 calls for service and received over 2,175 animals per year at the shelter. Key Budget Items for FY 2015 include: • Two Patrol Sergeant positions and 1 vehicle • Four Patrol Officer positions beginning February 1, 2015 and 1 vehicle • 1 Crime Analyst beginning January 1, 2015 • Funding for 12 replacement vehicles - $604,060 • 3% civil service step increase for Police Officers in all divisions • Replacement of 51 vests - $14,663 • Replacement of 14 SWAT Ballistic Helmets - $15,000 • Replacement of 20 gas masks - $8,080 • Department applied for a grant to receive a K-9 from the State; kennel and vehicle cage are budgeted in State Seizure Fund 060 for $3,330 • Replacement of Citizens' Police Academy van • Replacement of 5 handheld radar units - $15,970 • Angle measurement equipment for crash reconstruction and 2 Motolights for motorcycles funded in Justice Assistance Grant Fund 101 • Replacement vehicle for Animal Services Department 122 POLICE DEPARTMENT - 2211-2225 GOALS • Fairly and uniformly enforce statutory law, policy and procedures of the City and the department. • Preserve civil order and 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 police and school officials on matters relating to the law/legal process and procedures relating to juveniles. • Provide a safe traffic environment. • Provide enforcement of traffic laws for a safer community, reducing the number of motor vehicle and pedestrian accidents. • Reduce the number of outstanding warrants. • Provide targeted enforcement in neighborhoods to reduce traffic violations and improve safety for residents. • Identify and target organized criminal activity groups committing offenses and following a specific pattern that impacts the City and department. • Provide training to police personnel that meets or exceeds TCOLE training standards and requirements, and that will improve job performance and proficiency. • Enforce and prosecute animal cruelty when necessary. • Enhance the local adoption program and provide education to the citizens of Pearland on the benefits of spaying and neutering. FISCAL YEAR 2014 ACCOMPLISHMENTS • Conducted a cocaine reversal netting over $175,000 during a lengthy investigation. • Secured 67 felony arrests stemming from numerous operations throughout the year. • Special Investigations completed the full time move into the Brazoria County Narcotics Task Force building, located on the grounds of the BC Sheriff's Office. The building serves as the secure hub for operations of the task force including the storage of specialized equipment, seized items, and evidence stored for court presentation. • Trained PISD principals/assistant principals in active incident response and proper lockdown procedures. • Presented and promoted anti -bullying program to students. • Continued to coordinate with Brazoria County Tactical Officer's Association and helped gain TCOLE certification for the firearms range that is utilized as a primary training site for PPD. • Increased department -mandated training to six times per year from four to reduce overtime usage and decrease class size for an optimal training environment. The cycle is based on a standard schedule to promote advance scheduling. • Completed the training and graduation of the 38th Citizen Police Academy class • Police detectives investigated two major homicides, including a capital murder which gained worldwide media attention. FISCAL YEAR 2015 OBJECTIVES • Increase Supervisory staff with the addition of two Sergeants, squad staffing and related minimums to provide rapid, effective police services that maximize response times and safety for officers and citizens. • Expand the involvement of unit personnel in the investigation of gang related activity where it pertains to narcotics activity and organized crime. • Schedule department -wide mandatory training to ensure that all officers would meet State -mandated training requirements for Training Cycle 2013-2015. • Continue to explore grants and other funding options for a mobile command post that can be utilized for SWAT operations and high -profile events where a command center for police operations is necessary. • Implement an online reporting program and the proper guidelines for its use. 123 POLICE DEPARTMENT- 2211-2225 FISCAL YEAR 2015 OBJECTIVES • Continue to expand the use of social media to educate the community on timely and relevant criminal incidents and crime prevention topics. • Expand recruiting efforts via active advertising in addition to recruiting visits to police academies, job fairs, and colleges/universities to promote employment opportunities with the department. • Certify the remaining Community Services Officer and a Level II Crime Prevention Inspector to better serve the needs of the community. • Increase the number of local commercial vehicle safety training sessions at operating facilities. • Recruit, identify and hire personnel to serve as the department's first full-time Crime Analyst. • Perfect and implement a euthanasia rate -reduction plan. • Expand quarterly evening adoption events in the community. PERFORMANCE MEASURES FBI's Annualized DPS Index Crime Rate (Incident -based rate per 1,000 population)' % of cases cleared Average response time per car Animal Services: • of Animals returned to owners • of Animals adopted FY 2012 Actual 43.66 47% 4 min 5 sec 21% 40% FY 2013 FY 2014 Actual Projection 32.68 44% 4 min 34 sec 27.29 43% 5 min 29% 42% 43% 48% 'The FBI's DPS Index crime is used nationwide and is calculated by the FBI using the U.S. U.S. Census Department estimates thereafter. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Citizen Survey Ratings Residents Feel Safe... / / / /. /. /. / / - _ / /. 7! / / / . - / / .. / / ../ / — / / / / / / . / . / / / / / . / / / in Neighborhood at night in neighborhood area at night area during day during day in shopping in shopping ❑ 2009 02011 ❑ 2013 Census population FY 2015 Target 27.03 45% 4 min 15 sec 46% 52% for 2010 and 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Citizen Survey Ratings Good to Excellent of Police Visibility... // / / in residential areas in shopping areas ❑ 2009 ❑ 2011 ❑ 2013 124 FIRE DEPARTMENT — 2315-2360 OVERVIEW The Fire Department provides fire suppression, rescue, fire prevention and public fire education services to the City and surrounding areas, an area of approximately 72.7 sq. miles with a population of approximately 137,300, including the extraterritorial jurisdiction (ETJ). In fiscal year 2007, the Fire Department became a combined paid and volunteer department under the direction of a full-time Fire Chief, and in fiscal year 2011, added paid part-time firefighters. The volunteer firefighters have served Pearland since 1946. There are approximately 55 Volunteer Firefighters planned for fiscal year 2015. Fire Services in the City includes the Fire Department, the Fire Marshal's Office, Emergency Management, and Emergency Medical Services (EMS) and, in FY 2015, the Health/Code Enforcement Department moved from Community Services to Fire Services. Emergency Management and Health/Code Enforcement are coordinated by the Fire Marshal's Office. The community has an ISO Public Protection Classification rating of 3/10, which puts Pearland in the top 5% of communities in the nation. There are a total of seven fire stations. In fiscal year 2011, the City began staffing three fire stations 24 hours per day using full-time, volunteer and part-time staff. With the addition of a fire pumper 2014, 26 vehicles will be available for firefighting efforts. In FY 2014, the department responded to over 7,600 calls for service, and with an average response time of 7 minutes 57 seconds. Emergency Medical Services responded to over 7,445 calls for service in FY 2014 and transported 4,500 patients. The unit provides 24 hours of service to all calls in the Pearland area, regardless of the ability to pay. EMS has 9 emergency vehicles. The Fire Marshal's Office conducts annual fire inspections throughout the City to identify fire and life safety hazards in an effort to save lives and protect property. They also conduct local public fire education activities in an effort to prevent fires. In addition, the Office investigates hazard complaints, environmental crimes, and fires to determine origin and cause, enabling the identification of criminal intent and arson, pursuit of those responsible, and eliminate hazards to the public. The Fire Marshal is also the Emergency Management Coordinator for the City and maintains a an Advanced Level Emergency Management Program through routine review, updating, and exercising of the Emergency Management Plan in order to increase the effectiveness of the City's response to an emergency or disaster. The City's Emergency Operations Center (EOC) is located in the new Public Safety Building on Cullen Blvd. The division provides 75 hours of public education each year. The Health/Code Enforcement Department inspects food establishments, schools and group homes for compliance to City ordinances. Key Budget Items for FY 2015 include: ♦ Fire and EMS Departments began consolidation during FY 2014; EMS personnel and operations moved to Fire Department for FY 15, adopting to the 48/96 Fire Schedule ♦ Opening of Fire Station #3 in FY 2015 - $305,291 ♦ FFE not included in CIP for Stations 2 and 3 - $59,890 ♦ An ambulance remount - $83,100 ♦ Replacement of one vehicle - $50,945 ♦ Fire Training Tower Structural Repairs - $50,000 ♦ In the Citywide Donation Fund, $15,800 is budgeted for replacement of racks for gear storage with lockers and a rehab refrigerator ♦ One Housing Enforcement and Rehabilitation Officer, with vehicle, was funded by CDBG, a HUD grant, to assist with single family rehab grants. GOALS ♦ Decrease the number of fires through comprehensive fire inspection and public education programs. ♦ Determine the origin and cause of fires through comprehensive investigations. ♦ Deter arson by utilizing aggressive investigation techniques. ♦ Decrease hazards, environmental crimes, and unsafe structures by investigations and awareness. ♦ Inspect all City businesses annually. ♦ Increase the level of disaster preparedness among citizens through aggressive public awareness. 125 FIRE DEPARTMENT - 2315-2320 FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Placed 2 new fire engine pumpers into service. ♦ Placed 1 new aerial ladder truck into service. ♦ Replaced Shift Commander's vehicle. ♦ Placed 1 new fire engine pumper into service. ♦ Gained 16 new Volunteer Fire Fighters. ♦ Hired New Fire Fighters for Station 3. ♦ Began construction of Fire & EMS Station #3. ♦ Completed design of Fire & EMS Station #2. ♦ Determined origins and causes of 95 percent of fires investigated. ♦ Replaced communication equipment in the EOC FISCAL YEAR 2015 OBJECTIVES ♦ Consolidation of all EMS, Fire, Fire Marshal, and Health/Environmental Inspections operations. ♦ Place 5th staffed ambulance into service. ♦ Implement revised QA/QI program. ♦ Increase revenue recovery through participation in Texas Ambulance Supplemental Payment Program. ♦ Increase unsafe structures identified and abated by 75 percent. ♦ Continue working with the National Weather Service to receive Storm Ready Designation. ♦ Rehabilitate 10 single family residential homes with Community Development Block Grant funds. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Average Response Time (all calls) Percent response 5 minutes or less Percent of businesses inspected (Fire Marshal) Percent of patients (service calls) transported Percent of patients (service calls) treated Number of code/health inspections Percent of inspections passing on 1st inspection Total estimated fire loss 7 min18 sec 6 min 28 sec 8 min 4 sec 6 min 30 sec 47% 37% 20% 45% 44% 32% 44% 45% 63% 63% 60% 60% 85% 90% 93% 90% 686 2,049 1,516 1,550 2% 33% 62% 75% $2,406,454 $1,326,337 $1,800,000 $2,000,000 80% 78% 75% 73% 70% 68% 65% Citizen Survey Ratings Good to Excellent Quality of Fire Services 2009 2011 2013 FY 2015 Target FY 2014 Projection FY 2013 Actual FY 2012 Actual Average Response Time (all calls) 6 min 30 sec 8 min 4 sec 6 min 28 sec 7 min 18 sec 126 m w U 5 w m >- L 2 2 0 U \§ j� w5i =>2 (I) z° Fij <H 2 Iwd tad \\% wW w 0 CV � d d \ d % >, J« m e _ _\ \// COS=Zy // /}a_ ) ? d d d 0 0 cts E E 0 2 �O \ k CO d d \ a L7) fs ow > dy y d d � E\ \ • k F» 0. d� E/a)0 5 % ,E E = EI -a E=5\ �=I t O. E / Cas l) / \ u Senior Planner // E a-\ a 0: / \ O ) ? d d d / 0 0 0_ .- 0 / / \ \ a) O a) §\\ co CC\ / 2E co @§ _c 3\\ a _ }%S ==e 127 COMMUNITY SERVICES EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT / DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Community Development Community Development Administration Permits & Inspections Planning Health/Code Enforcement Animal Services Communications Municipal Court COMMUNITY SERVICES TOTAL EXPENDITURES BY CATEGORY 268,175 456,122 446,542 310,676 809,206 988,873 995,115 1,111,829 263,747 364,504 346,657 415,862 392,863 408,636 403,562 636,652 756,484 752,572 327,896 332,922 336,984 434,718 614,169 646,164 655,254 676,686 3,312,707 3,953,705 3,936,686 2,949,771 Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Charges Inventory Capital Outlay COMMUNITY SERVICES TOTAL STAFFING BY DEPT/DIVISION 2,557,239 3,029,024 3,084,282 2,462,623 170,388 191,883 179,277 135,392 1,529 1,200 1,021 91,257 83,220 88,940 30,280 431,059 574,325 518,925 299,167 4,838 5,000 5,000 5,000 6,833 23,110 17,581 1,500 49,563 45,943 41,660 15,809 3,312,707 3,953,705 3,936,686 2,949,771 Community Development Community Development Administration Permits & Inspections Health/Code Enforcement Planning Animal Services Communications Municipal Court** COMMUNITY SERVICES TOTAL 3 3 3 3 15 15 15 16 4 6 6 4 4 4 4 10 11 11 2 3 3 4 13 14 14 15 51 56 56 42 *Same as adopted budget, unless where noted. **Municipal Court - Four positions are funded in Special Revenue Funds. 128 Community Services as % of General Fund Personnel FY 2015 Community Services as % of General Operating Expenditure FY 2015 Community Development Admin., 0.5% Planning, 0.6% Communications, 0.7% Municipal Court, 1.0% Permits & Inspections 1.8% 5.8% Community Development Admin., 0.5% Planning, 0.6% Communications, 0.6% Municipal Court, 1.7% Permits & Inspections 2.4% 129 COMMUNITY DEVELOPMENT - 1605-1650 OVERVIEW The Community Development Department is a part of the Community Services area and consists of Community Development Administration, Planning and Permits & Inspections. The Community Development Administration Division oversees, assists and guides the divisions within the department. 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, and it processes all the zone changes, variance request and subdivision plats. The Permits & Inspections Division conducts building inspections and enforces development and building codes. This division processes residential and commercial building permits and conducts building inspections annually. It also enforces plumbing, mechanical, and electrical regulations to ensure proper construction techniques are followed for all commercial and residential buildings. Key Budget Items for FY 2015 Include: ♦ Iron Mountain - scan, shred and archive files. ♦ Intern for 3 months. ♦ Purchase new scanner. ♦ Lease new plotter. ♦ Full -year funding for permit clerk added in 2015. ♦ Purchase new scanner. ♦ Plan review service in lieu of additional person $50,000. GOALS ♦ Ensure that the City of Pearland is a desirable place for people to live, work and 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 and visitors to our City. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Worked towards applying for Scenic City Platinum Award to upgrade current certification of Gold Award. ♦ Continued professional training for staff, Planning and Zoning Commission, and Zoning Board of Adjustment. ♦ Continued to represent Pearland in regional committees, such as Pedestrian Bicycle Subcommittee and Transportation Subcommittees of the Houston -Galveston Area Council. ♦ Provided population updates and work with Census Bureau to re-evaluate population estimates for Pearland. ♦ Processed T-17 Annual Unified Development Code update. ♦ Created Harris County and Fort Bend County FAQ informational document for development in those jurisdictions. 130 COMMUNITY DEVELOPMENT - 1605-1650 FISCAL YEAR 2015 OBJECTIVES • Conduct Annual Planning Day. • Continue professional training for staff, Planning and Zoning Commission, and Zoning Board of Adjustment. • Continue to represent Pearland in regional committees, such as Pedestrian Bicycle Subcommittee and Transportation Subcommittees of the Houston -Galveston Area Council. • Provide population updates and work with Census Bureau to re-evaluate population estimates for Pearland. • Continue to provide population updates and special studies. • Continue to publish Community Development newsletter. • Evaluate and restructure subdivision platting procedures, administratively. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Zone change cases Building inspections Value of building permits issued (in millions) (commercial and residential 9 18 20 25 22,416 26,274 28,434 28,500 540 543 943 950 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Citizen Survey Ratings Good to Excellent... —N—Appearance of City Quality of Planning & Zoning • 2009 2011 2013 $1,000 $900 $800 $700 c $600 $500 2 $400 $300 $200 $100 $0 Value of Building Permits Issued 1 1 FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target 131 COMMUNICATIONS - 1530 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 web site and government cable station - Pearland TV, which is broadcast on Comcast Channel 16, U -verse Channel 99, and online at cityofpearland.com. 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. Key Budget Items for FY 2014 include: ♦ Full year funding for year-round intern. GOALS ♦ Increase awareness, interest and participation of Pearland residents in City government goals and activities. ♦ Build community pride among residents and positive identification with their home City. ♦ Build corporate pride among employees and positive identification with the City government as a whole. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Launched a redesigned City Web site (pearlandtx.gov) and a City of Pearland employee intranet (Pearnet). ♦ Garnered more than 5,500 Facebook Fans, and more than 24,700 YouTube video views. ♦ Produced (15) City News Updates, (2) "I Remember" segments, (23) Pet Features and covered more than 47 community or special events. ♦ Implemented a "brand unification" process on collateral for all City departments. ♦ Successfully implemented a strategic hurricane preparedness communications & marketing plan which included video, a moving PTV slide, social media promotions and public relations components. ♦ Began live streaming Planning & Zoning Meetings on the Pearland TV (Comcast Ch. 16 and U -verse Ch. 99). ♦ Produced videos to highlight department offerings. ♦ Produced communications tools promoting the deployment of recycle bins citywide. ♦ Received seven (7) awards in municipal communications excellence from various city/county marketing associations, associations of business communicators, and Texas -based municipal information associations. FISCAL YEAR 2015 OBJECTIVES ♦ Increase Pearland TV offerings through the production of news and event feature videos focusing on Transportation and Capital Projects, health and fitness. ♦ Provide communications coverage for groundbreakings, building openings, and other City highlights with videos, press releases, flyers, marketing collateral, brochures, pamphlets, etc. ♦ Work to provide departmental support to ensure consistent use of brand elements. ♦ Identify marketing opportunities and strategies to promote City programs and services. ♦ Develop and implement a plan to increase social media followers/fans to YouTube (250), Twitter (2,500), Facebook (7,600) and Instagram (1,000). 85% 80% 75% 70% 65% Citizen Survey Ratings Good to Excellent Communications with Residents 2009 2011 2013 90% 88% 85% 83% 80% 78% 75% 2009 2011 Citizen Survey Ratings Good to Excellent Usefulness of Website 2013 132 MUNICIPAL COURT - 1540 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. Key Budget Items for FY 2015 include: ♦ No significant changes. GOALS ♦ Uphold the Constitution, laws and legal regulations of the United States, the State of Texas and all applicable governments therein. ♦ Set high standards to maintain and preserve the integrity of all cases filed in the Pearland Municipal Court of Record. ♦ Abide by the standards set out in the Texas Code of Judicial Conduct. ♦ Protect the confidentiality of all records filed. ♦ Remain cognizant of the needs of customers and citizens of the Pearland Municipal Court to reinforce the positive perception of the judiciary. ♦ Provide access and encourage education of staff to increase the level of expertise and proficiency in the affairs of the Municipal Court. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Procured a full-time Presiding Judge, allowing the court to have more dockets throughout the week to lessen the volume on heavy dockets. ♦ Re -organized records retention system, either scanned or filed by alpha order for easy retrieval. ♦ Acquired new data management and reporting software program for courts with substantial conversion. FISCAL YEAR 2015 OBJECTIVES ♦ Hire and implement the use of a new part-time bailiff. ♦ Complete full conversion into new data management and reporting software program for courts. ♦ 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 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of Judge trials prepared 375 275 217 325 Number of Jury trials prepared 741 620 622 700 Number of warrants issued 9,820 11,200 9,438 11,500 Total number of charges brought in 30,187 28,200 23,182 25,000 Percent Guilty Charge 53% 68% 68% 68% Percent Charges Dismissed 8% 7% 12% 7% Percent in Compliance' 20% 25% 29% 25% Outstanding warrants 16,300 16,500 17,644 16,500 Value of outstanding warrants $5,542,206 $5,900,000 $8,395,229 $8,500,000 133 PUBLIC WORKS Administrative Assistant ASSISTANT CITY MANAGER* J Office Supervisor Program Specialist / City Engineer / Assistant City Engineer (2) Engineering Technician Senior/ i Engineering Technician Chief Construction Inspector Construction Inspector (5) i Assistant Director Capital Projects 1 -Office Assistant Senior Project Manager (4) Acquisition Manager Project Coordinator (2) Director of Public Works*** Assistant Director of Public Works*** \ / \ Superintendent Water & Sewer Right -of -Ways Operations** \ / ROW Inspector** / / ROW Crew Leader (2)** ROW Maintenance Worker (5)** *Reports to the City Manager. **Positions budgeted in Water/Sewer Fund. ***Positions are 25% in General Fund and 75% in Water/Sewer. Water/Sewer Operations Organization Chart is located in Enterprise Funds section of document. ****One Custodian position budgeted in Special Revenue Funds. *****Position is 33.3% in Water/Sewer, 66.7% in General Fund. Equipment Operator / Superintendent Streets & Drainage Maintenance Supervisor (2) Crew Leader (3) \ / Equipment Operator (10) / Traffic Signal Technician (2) / Sign Technician (2) Fleet Manager \ / Chief Mechanic \ / Mechanic (3) Office \ Supervisor / Administrative Assistant 2 Customer Service Representative (3) Building Mtce. Technician (2) / Custodian (3)**** / \ Office Assistant Senior 2 / \ Fleet Services Assistant 2 PUBLIC WORKS EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT / DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget 159,418 493,101 483,758 153,178 21,781 985,347 317,089 390,524 432,870 423,276 484,998 4,204,505 5,291,117 4,872,224 4,215,851 731,463 201,109 143,993 133,044 174,911 266,032 279,768 277,611 309,363 720,618 805,956 824,337 841,635 168,931 248,455 247,800 637,909 1,290,118 945,875 1,137,980 992,448 1,151,167 1,150,178 1,134,979 7,741,495 10,136,545 9,379,884 10,486,794 Public Works Operations Administration Facilities Maintenance Custodial Services* Fleet Maintenance Streets & Drainage ROW Mowing Service Center Public Works and Engineering Administration Capital Projects Geographic Information Systems Traffic Operations & Management Engineering PUBLIC WORKS TOTAL EXPENDITURES BY CATEGORY Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Inventory Capital Outlay PUBLIC WORKS TOTAL STAFFING BY DEPT/DIVISION 3,456,338 3,792,424 3,858,108 4,403,099 280,299 445,637 297,617 445,211 725,338 834,147 761,500 901,400 442,542 426,308 349,938 350,623 2,240,821 3,199,073 2,887,709 3,676,445 65,594 182,898 150,000 113,740 17,914 7,500 11,634 12,500 512,649 1,248,558 1,063,378 583,776 7,741,495 10,136,545 9,379,884 10,486,794 Public Works and Engineering Administration Public Works Operations Administration Facilities Maintenance Custodial Services* Fleet Maintenance Streets & Drainage ROW Mowing Service Center Engineering Capital Projects Traffic Operations and Maintenance Geographic Information Systems PUBLIC WORKS TOTAL *One Custodian in Custodial Services is funded in UofH Fund. 3 3 3 3 1.75 1.75 1.75 1.75 4.67 3 7 7 7 7 17 17 17 16 3 12 12 8 9 6 6 2 2 12 9 6 2 12 9 6 53.75 54.75 Note: Public Works Geographic Information Systems has been moved to the General Government area, reporting to Information Systems Department. 54.75 65.42 135 Public Works as % of General Operating Expenditures FY 2015 15.9% PW Oper.Admin, 0.2% Service Center, 0.3% Custodial Services, 0.5% PW & Engr. Admin, 0.5% Fleet Mtce, 0.7% ROW Mowing, 1.1% Capital Projects, 1.3% Facilities Mtce, 1.5% Traffic Oper. & Mgt., 1.7% Engineering, 1.7% Streets & Drainage, 6.4% Public Works as % of General Fund Personnel FY 2015 Service Ctr, 0.0% PW Oper. Admin., 0.3% PW & Engr. Admin., 0.5% ROW / Mow, 0.5% Custodial Services, 0.5% Facilities Mtce., 0.7% Traffic Oper. & Mgt., 0.9% Fleet Mtce, 1.1% Capital Projects, 1.4% Engineering, 1.7% Streets & Drainage, 2.3% 136 PUBLIC WORKS — 3520-3590/1405-1440 OVERVIEW The Public Works Administration Department is responsible for maintaining the City's infrastructure and mobility and deliver quality drinking water. The Administration department oversees Facilities Maintenance, Custodial Services, Fleet Maintenance, Traffic Operations and Maintenance, Streets & Drainage, Right of Way Mowing and the Service Center within the General Fund. The Public Works Administration Department provides maintenance and custodial services to all City facilities, manages City vehicles and motorized equipment, including preventive maintenance and repairs; maintains and manages the City's streets, signals, sidewalks, ditches and drainage channels including but not limited to: street sweeping, pothole patching, culvert setting, and cleaning storm drains, inlets and lines for approximately 380.8 centerline miles or 847.4 lane miles of streets and roadways and over 188 miles of existing storm sewer system throughout the City. Engineering & Capital Projects is also included in the Public Works function beginning FY 2013. Divisions reporting to Engineering and Capital Projects Administration include Capital Projects and Engineering. 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 Regional Detention Pond Master Plan, Transportation Master Plan, Water and Wastewater Master Plans, Impact Fee updates and Traffic Impact analysis. Key Budget Items for FY 2015 in Departments under Public Works Administration include: ♦ Intersection Flashing and Left Turn Signal Program (year 1 of 3) - $138,186. ♦ Intersection Upgrades - Span Wire, Signals, and Controller Cabinets - $192,000. ♦ The purchase of a dump truck at $101,509. ♦ Includes $135,588 for enhancement of ROW mowing contract and $95 thousand for FM 518, Hwy 35 and other medians to the contract. GOALS ♦ Provide reliable, safe, and aesthetically pleasing roadways through systematic inspection and maintenance. ♦ Enhance the appearance of City streets through sweeping and appropriate maintenance. ♦ Reduce flooding and minimize the chance of property damage, injury or loss of life through a program of drainage facility maintenance and construction. ♦ Provide distinguished customer service by quickly and courteously responding to citizen complaints or requests, including requests from City departments. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Provided a high quality of customer service in a timely manner. ♦ Installed approximately 313' culverts ♦ Milled 190,427 sf of asphalt roads (approximately 1.8 mi of 20' wide) ♦ Overlaid 1.0 mi of asphalt roads with County's assistance PUBLIC WORKS - 3520-3590/1405-1440 FISCAL YEAR 2015 OBJECTIVES ♦ Update the City's Storm and Centerline and Lane Mile inventory as of September 25, 2015. ♦ Update the Street Lights in the City as of September 25, 2015. ♦ Zip (milling using City asphalt zipper) & overlay 2 miles of asphalt streets. ♦ Install/replace 1,000 linear feet of culvert pipe via City crews and contractor. ♦ Install/replace 10,000 linear feet of sidewalk via sidewalk contract. ♦ Swab 35,000 linear feet of ditches via City crews and contractor. ♦ Flush 15,000 linear feet of culvert pipe. ♦ Fill 1,500 potholes in asphalt pavement streets. ♦ Integrate the Facility Maintenance, Custodial Services, Traffic Operations and newly created Right of Way divisions into the Public Works department so as to provide improved service to city residents and city staff. ♦ Assessment of rights -of -ways maintenance needs and responsibilities. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Sq. Ft. of zip and cap (overlay) asphalt pavement repairs completed 306,670 314,345 190,427 200,000 Linear sq. ft. of sidewalk installed 25,697 4,476 14,565 10,000 Percent of (asphalt) street repairs completed within 3 days of notice 87% 97% 96% 97% 70% 60% 50% 40% 30% 20% 10% 0% Citizen Survey Ratings of Mobility Good to Excellent 2009 2011 2013 70% 68% 66% 64% 62% 60% 58% 56% 54% Citizen Survey Ratings Good to Excellent of City's Sidewalk Maintenance Street Mtce & Repairs 2009 2011 2013 138 PARKS & RECREATION DEPARTMENT Director of Parks & Recreation" Administrative Assistant Assistant Director of Parks & Recreation Office Supervisor K / \ Office Assistant Senior Customer Service Representative Full-time (2) Part-time (1) J Resource Development Manager I Special Events Coordinator K _ / K _ Volunteer Coordinator Part-time 2 )orts to the Deputy City Manager. Recreation Superintendent K J / \ Recreation Center/Natatorium Manager / Recreation Program Coordinator Youth Development • Recreation Specialist Full-time (4) Part-time (1) J / \ Fitness Attendant Part-time (6) K / I Recreation Center Supervisor I Recreation Attendant Part-time (23) / 1 Senior Center Supervisor J Building Maintenance Technician K J Aquatics Supervisor / \ Senior Center Bus Driver K J Recreation Attendant Part-time (3) K _ Recreation Program Athletics Asst. Coord. Recreation Program Coordinator Athletics J 2 \ / \ Head Lifeguards Part-time (2) K _ / Recreation Specialist Aquatics / Water Safety Instructors/ Lifeguards Part-time (4) / \ Lifeguards Part-time (21) Ballfield Attendants Part-time (4) Park Maintenance Superintendent i K _ Urban Forester J Recycling Center Supervisor Park Supervisor (2) J Park Maintenance Crew Leader (6) \ 2 Recycling Center Technician 9 • Recycling Center Technician • Part-time 9 • Recycling Center Attendant Part-time (3) Park Maintenance Workers (14) / \ Equipment Operator (3) K / PARKS & RECREATION EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT / DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Administration Resource Development Recreation Center/Natatorium Westside Events Center Parks Maintenance West (ROW Mowing) Parks Maintenance (former Parks Mtce East) Facilities Maintenance Custodial Services Athletics Special Events Senior Program Youth Development Aquatics Recycling PARKS & RECREATION TOTAL EXPENDITURES BY CATEGORY 945,743 965,390 1,179,704 629,096 198,789 197,630 129,494 1,566,720 1,881,456 1,813,781 2,220,330 190,158 220,586 205,799 219,762 917,297 1,034,791 950,358 1,170,830 1,457,221 1,259,662 2,381,229 861,083 993,284 859,889 337,155 415,182 357,028 260,443 354,898 333,879 335,591 251,756 283,649 274,359 280,034 201,137 250,418 231,160 209,128 167,521 220,474 217,877 155,586 128,091 142,052 141,223 199,390 237,761 216,711 227,736 7,224,818 8,641,990 8,239,889 6,773,623 Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Sundry Charges Inventory Capital Outlay PARKS & RECREATION TOTAL 4,052,034 4,502,682 4,337,431 4,098,190 491,669 568,168 529,903 462,747 612,429 814,893 682,492 377,393 202,303 220,898 190,818 148,083 1,747,794 2,257,300 2,275,929 1,641,060 800 800 800 4,780 10,800 12,654 113,809 266,449 209,862 45,350 7,224,818 8,641,990 8,239,889 6,773,623 140 PARKS & RECREATION EXPENDITURE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET STAFFING BY DEPT/DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Administration Resource Development Recreation Center/Natatorium (RC/N) Westside Events Center (WEC) Parks Maintenance West Parks Maintenance (former Parks Mtce East) Custodial Services" Facilities Maintenance Athletics Special Events Senior Program Youth Development Aquatics Recycling PARKS & RECREATION TOTAL 9 7 7 7 2 55 55 63 63 3 3 3 3 15 15 15 16 16 15 27 4 3 3 6 6 4 6 6 6 6 1 1 1 1 5 5 5 5 5 5 5 5 4 4 6 6 6 6 136 133 132 124 "In FY14, Youth Development personnel and a Building Technician were moved to the Recreation/Natatorium (RC/N) department, 3340; in addition, two Building Maintenance positions were reduced to one Building Technician position and the Aquatics Manager position was increased to two positions in the RC/N. One Parks Maintenance position has been eliminated for FY 2015 and the Facilities and Custodial Services and Parks Maintenance West/ROW/Mowing departments moved to Public Works, along with two Parks Maintenance Workers. The remaining personnel in Parks Maintenance West were moved to Parks Maintenance to accommodate the new Parks. 141 EME Parks & Recreation as % of General Operating Expenditures FY 2015 Resource Development, 0.2% Aquatics, 0.2% Westside Events Center, 0.3% Recycling, 0.3% Senior Program, 0.3% Special Events, 0.4% Athletics, 0.5% Administration, 1.0% Parks Maintenance, 3.7% Recreation Center/Natatorium, 3.4% Parks & Recreation as % of General Fund Personnel FY 2015 Special Events, 0.2% Resource Development, 0.4% WEC*, 0.6% Aquatics, 0.6% Athletics, 0.6% Senior Program, 0.8% Recycling, 0.9% Administration, 1.2% Parks Maintenance, 3.9% Rec. Center/Natatorium, 9.7% 142 PARKS & RECREATION — 3340-3397 OVERVIEW Pearland Parks and Recreation, in collaboration with the Parks, Recreation and Beautification Board, local and regional partners as well as other City departments, administers a Parks and Recreation Master Plan that provides a comprehensive policy direction to the year 2030 to meet both current and future parks and recreation needs, and in turn, to enhance livability in the community. In addition to leisure classes, athletics and aquatics, special events, wellness, fitness and youth development programs and camps, and senior citizens programs, the department maintains 10 neighborhood parks and 3 larger community parks, a Recreation Center/Natatorium, the Westside Events Center, the Melvin Knapp Senior Center, and the Recycling Center. Key Budget Items for FY 2015 include: ♦ Funding to replace the weight room floor in the Recreation Center - $34,047 ♦ Funding for Capital Projects O&M for Shadow Creek Sportsplex and Centennial Park - $146,761 ♦ New recreation software - $30,735 ♦ Replacement of hazardous waste lockers at the Recycling Center - $4,000 ♦ In the Park Development Fund, $100,000 is budgeted for Centennial Park, $18,532 for other improvements in Parks, $38,000 and $31,100 for a wood -chipper and trees for Shadow Creek Ranch Park. GOALS ♦ Ensure that all parks facilities are maintained efficiently, safely, cost effectively, and in accordance with all standards and codes. ♦ Provide and maintain park land and recreational facilities that meet the present and future recreational needs of the community. ♦ Ensure that recreation programs meet the interests and needs of a variety of ages and abilities by providing and sponsoring programs independently and in cooperation with other community organizations or agencies. ♦ Provide access to programs and facilities to members within the community. ♦ Pearland Parks & Recreation will work to preserve our natural resources, conserve energy, and protect and enhance our environment. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Created a Playground Management Plan ♦ Began the 5 year update to the Parks & Recreation Master Plan ♦ Worked with citizens to create Forever Parks Foundation of Pearland ♦ Replaced transportation bus for Senior program ♦ Added shade structures and/or site amenities at 4 different parks ♦ Reestablished the walking trail in Woody Park ♦ Acquired a glass crusher at the Recycling Center FISCAL YEAR 2015 OBJECTIVES ♦ Complete construction and begin operations of additional park facilities ♦ Begin design of additional parks and facilities ♦ Review and suggest updates to the UDC on tree related issues and ordinances ♦ Research and review Park Dedication Ordinance and make recommendations for changes ♦ Develop a service development and delivery model for recreation programs ♦ Complete Parks & Recreation Master Plan and incorporate into 5 -year CIP 143 PARKS & RECREATION - 3340-3397 PERFORMANCE MEASURES FY 2012 Actual FY 2013 FY 2014 FY 2015 Actual Projection Target Average Monthly Visitors: Recreation Center Natatorium Westside Events Center Tons of material recycled (at Recycling Center) 13,687 11,177 2,378 682 15,000 15,000 2,750 711 20,224 14,000 4,472 777 25,000 20,000 15,000 10,000 5,000 0 Average Monthly Attendance at Parks Facilities • • A FY 2012 Actual —6—Recreation Center FY 2013 FY 2014 FY 2015 Actual Projection Target Natatorium Westside Events Center 85% 80% 75% 70% 65% Citizen Survey Ratings Quality Good to Excellent Parks Recreation Programs (Community Events 2009 2011 2013 22,000 14,500 4,500 800 90% 88% 85% 83% 80% 78% 75% Citizen Survey Ratings Good to Excellent • Condition of Parks/Equip. —0—Accessibility ♦ -. 2009 2011 2013 144 WATER AND SEWER FUND - 30 FY 2015 ADOPTED BUDGET OVERVIEW The Water & Sewer Fund is an enterprise fund that includes water and sewer system operations. The fund is operated in a manner similar to private business enterprises, where costs of providing the services to the public are financed primarily through user charges. The City provides water and sewer service to approximately 34,500 residential and commercial customers. Water & Sewer revenues provide 86% of the total revenue generated in the Water & Sewer Fund. As such, the City of Pearland continually monitors and evaluates the need to adjust water and sewer rates in order to ensure that the fund is self-supporting, that infrastructure rehabilitation is adequate, and that all bond covenants are in compliance. For fiscal year 2015, a water or sewer revenue increase of 4.63% is required to meet the needs of the system. FY 2014 FY 2014 FY 2015 FY 2013 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET REVENUES SALE OF WATER SEWER REVENUES OTHER SERVICE CHARGES INTEREST INCOME OTHER MISCELLANEOUS INCOME TRANSFERS IN CAPITAL LEASE PROCEEDS TOTAL EXPENSES PUBLIC WORKS ADMINISTRATION LIFT STATIONS WASTEWATER TREATMENT WATER PRODUCTION DISTRIBUTION & COLLECTION CONSTRUCTION IT - GIS WATER METER SERVICES ROW MOWING UTILITY BILLING & COLLECTIONS OTHER REQUIREMENTS TOTAL REVENUES OVER/(UNDER) EXPENSES Beginning Cash Equivalents Reserve for Debt Service 15,530,374 11,987,587 1,489,515 37,354 672,107 2,509,500 15,863,713 12,450,772 1,361,586 41,150 235,828 2,428,835 15,550,759 12,611,309 1,447,980 80,960 313,521 2,483,836 16,909,444 13,801,224 1,539,728 48,700 257,800 2,568,222 458,000 32,226,438 32,381,884 32,488,364 35,583,118 487,849 901,210 1,038,427 1,055,744 1,645,383 3,795,774 4,342,681 4,929,313 4,445,055 6,334,431 8,236,300 8,202,045 8,496,521 2,169,471 2,223,746 2,228,510 2,759,088 1,054,607 1,051,884 1,034,829 1,058,769 244,451 248,134 247,952 243,121 1,456,022 428,666 2,712,671 2,538,277 2,054,519 1,342,418 13,543,857 12,193,480 12,061,801 14,654,216 30,756,471 31,872,929 31,814,713 37,017,108 1,469,967 508,955 673,651 (1,433,990) 11,931,087 13,401, 054 13,401,054 14,074,705 1,568,545 1,332,548 1,929,503 2,278,256 Ending Cash Equivalents $11,832,509 $12,577,461 $12,145,202 $10,362,459 Bond Coverage - 1.4 Cash Reserve Ratio - 25% 1.43 1.56 38% 28% 145 WATER & SEWER FUND SUMMARY FY 2015 ADOPTED BUDGET TOTAL REVENUES - $35.6M Sewer Revenues 39% Sale of Water 48% WATER & SEWER FUND SUMMARY FY 2015 ADOPTED BUDGET TOTAL EXPENSES - $37.0 Water Production, 23% Wastewater Treatment, 12% Lift Stations, 4% Administration, 1% Other Service Charges 4% Interest Income 0% Other Misc Income 1% Transfers In 7% Capital Lease Proceeds 1% Distribution & Collection, 7% Construction, 3% IT-GIS, 1% Water Meter Services, 4% Row Mowing, 1% Utility Billing & Collections, 4% Other equirements, 40% 146 WATER & SEWER FUND REVENUE & EXPENSE SUMMARY FY 2015 ADOPTED BUDGET FISCAL YEAR 2013-2014 Projected revenues of $32,488,364 are $106,480, or 0.33%, more than planned and $261,927, or 0.81%, greater than the fiscal year 2013 actual of $32,226,438. Sale of water is projected to be slightly less than the amended budget by $313 thousand due to more frequent rainfall and lower consumption of irrigation use, which is billed at a higher rate per thousand, offset by higher than budgeted sewer revenues by $160 thousand. Water tap fees for new development is higher by $110 thousand, miscellaneous revenue by $31 thousand, sale of property from old pipe and equipment $45 thousand, interest income $39 thousand, and transfer -in from fund 67 for warranty on UV system at Far Northwest WWTP $55 thousand. Fiscal Year 2014 expenses are anticipated to be $31,814,713. This is $58,216 less than the amended budget of $31,872,929, and is $1,058,242 higher than the fiscal year 2013 actual. Projected expenditures, though less than the amended budget, saw a significant increase in Wastewater Treatment due to problems with the dewatering equipment at the Far Northwest WWTP resulting in additional volume in sludge hauling. This was mostly offset by a decrease in Billing and Collections for the water meter replacement program. Ending balance at 9/30/14 is estimated to be $12,145,202; with a 38% cash reserve ratio and a bond coverage of 1.43. FISCAL YEAR 2014-2015 Fiscal Year 2015 revenues total $35,583,118, a $3,094,754 increase from the fiscal year 2014 projections and a $3,201,234 increase from fiscal year 2014 amended budget. Water and sewer charges increased by $2,548,601, or 9.05%, over the 2014 projections. This is mainly due to an anticipated revenue increase of 4.63% which generates an additional $1,358,432 in revenues and an increase in customers. Fiscal year 2015 expenses total $37,017,108 and include annual debt service payments of $10.69 million. Expenses are $5,202,395 or 16.35%, higher than the fiscal year 2014 projections and are $5,144,179, or 16.14%, higher than the amended budget. Enhancements to the budget total $4.8 million, $1.3 million recurring and $3.5 million non -recurring, an increase of $678 thousand over fiscal year 2014. Enhancements include funding for one Wastewater Treatment Utility Inspector with vehicle ($79,784), auto dialer alarm system ($231,000), automatic priming centrifugal pump ($40,000), lift station rehabilitation ($500,000), sludge dewatering/hauling ($525,000), interior lining for three ground storage tanks ($400,000), pigging of water lines ($300,000), analyze and improve SCADA System ($100,000), painting of exterior piping at water facilities ($59,000), replacement of two Ford F350's with F450's ($120,470), Vactor Truck ($459,026), Romac Quick Valve insertion machine ($65,422), Model DC 100M Pump on trailer ($42,072), TopCon X62 2D Laser Excavator System ($45,770), two Trail King TK40LP Trailer ($58,332), Longwood Street Manhole Rehabilitation ($159,600), backbone to wireless read system ($304,790), and pro -rata share of replacement ERP ($802,797). The budget anticipates a water/sewer bond sale of $2.14 million to fund infrastructure improvements. Annual debt service on these bonds would not occur until fiscal year 2016. Available ending balance at 9/30/2015 is expected to be $10,362,459 after a drawdown of $1,433,990. Bond coverage is 1.56 and cash reserves are 28%. 147 WATER & SEWER FUND REVENUE FY 2015 ADOPTED BUDGET ACCOUNT NUMBER REVENUE CATEGORY FY 2014 FY 2014 FY 2015 FY 2013 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET 030-0000-353.04-02 030-0000-353.04-03 030-0000-353.04-04 030-0000-353.04-07 030-0000-353.04-09 030-0000-353.04-10 030-0000-353.04-11 030-0000-353.04-12 030-0000-353.04-13 030-0000-353-04-14 030-0000-353-04-15 030-0000-353-04-99 Water Sales Sewer Charges Sanitation Billing Fee Connection Fee Water Tap Fee Sewer Tap Fee Late Payment Fee Meter Set Fee Curb Stop Replacement Fee Reconnect Fee Grease Trap Fee Miscellaneous *CHARGES FOR SERVICE 030-0000-356.00-00 030-0000-356.06-00 *INTEREST 030-0000-358.10-00 030-0000-358.12-00 030-0000-358.15-00 030-0000-358.98-00 030-0000-358.99-00 030-0000-358.99-01 *MISCELLANEOUS 030-0000-359.11-00 030-0000-359.12-00 030-0000-359.23-00 030-0000-359.99-00 Interest Income Unrealized Capital Gain Recycle NSF Fees Sale of Property Reimbursements Miscellaneous MUD Annexation From Fund 42 From Fund 44 From Fund 67 From Fund 10 *INTERFUND TRANSFERS 030-0000-360-03-00 Capital Lease Proceeds *CAPITAL PROCEEDS 15,530,374 11,987,587 352,482 165,288 408,237 7,712 464,253 2,400 161 55,925 32,500 557 15,863,713 12,450,772 368,316 158,000 301,760 7,700 455,000 1,800 160 36,000 32,750 100 15,550,759 12,611,309 366,594 158,000 412,000 14,500 430,000 5,025 161 27,000 34,500 200 16,909,444 13,801,224 376,752 162,740 475,965 14,500 443,000 3,600 161 27,810 35,000 200 29,007,477 29,676,071 29,610,047 32,250,396 39,639 41,150 (2,285) 37,354 41,150 141,038 10,175 20,103 43,674 290,994 166,122 132,000 9,600 9,150 85,078 80,960 48,700 80,960 48,700 135,000 7,800 54,122 413 116,186 135,000 8,300 9,000 105,500 672,107 235,828 1,554,226 736,313 1,568,732 624,612 218,961 235,491 313,521 257,800 1,568,733 624,612 55,000 235,491 1,709,713 623,018 235,491 2,509,500 2,428,835 2,483,836 2,568,222 458,000 458,000 TOTAL 32,226,438 32,381,884 32,488,364 35,583,118 v. 148 ENTERPRISE (WATER & SEWER) FUND - 30 EXPENSE AND STAFFING SUMMARY FY 2015 ADOPTED BUDGET EXPENSES BY DEPT/DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Public Works Operations Administration Lift Stations Wastewater Treatment Water Production Distribution & Collection Construction GIS Water Meter Services ROW Mowing IT - GIS Utility Billing & Collections Other Requirements 487,849 901,210 1,038,427 1,055,744 1,645,383 3,795,774 4,342,681 4,929,313 4,445,055 6,334,431 8,236,300 8,202,045 8,496,521 2,169,471 2,223,746 2,228,510 2,759,088 1,054,607 1,051,884 1,034,829 1,058,769 244,451 248,134 247,952 1,456,022 428,666 Sub -Total Public Works 14,499,943 17,141,172 17,698,393 20,777,353 243,121 2,712,671 2,538,277 2,054,519 1,342,418 13,543,857 12,193,480 12,061,801 14,654,216 WATER & SEWER FUND TOTAL 30,756,471 31,872,929 31,814,713 37,017,108 EXPENSES BY CATEGORY FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget Salaries & Wages Materials & Supplies Building Maintenance Equipment Maintenance Miscellaneous Services Inventory Transfers/Other Charges Capital Outlay 5,042,612 6,208,080 35,766 1,629,928 4,008,935 27,774 13,214,082 589,293 5,720,323 6,356,402 143,662 1,972,309 4,760,177 123,561 11,877,442 919,053 5,617,509 6,159,950 143,662 2,021,068 5,096,059 119,363 11,808,180 848,922 6,241,177 6,573,500 81,350 1,880,356 5,699,313 64,395 13,705,706 2,771,311 WATER & SEWER FUND TOTAL 30,756,471 31,872,929 31,814,713 37,017,108 STAFFING BY DEPT/DIVISION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget* Projection Budget Public Works Operations Administration Lift Stations Wastewater Treatment Water Production Distribution & Collection Construction GIS Water Meter Services ROW Mowing 9.0 14.75 12.0 27.5 13.0 3.0 10.0 14.75 15.0 27.5 13.0 4.0 10.0 14.75 15.0 27.5 13.0 4.0 5.58 7.0 15.0 15.0 23.0 10.0 7.0 6.0 Sub -Total Public Works 79.3 IT - GIS Utility Billing & Collections WATER & SEWER FUND TOTAL *Same as adopted budget, unless where noted. 84.3 84.3 21.0 23.0 22.0 88.6 4.0 15.0 100.25 107.25 106.25 107.58 149 PUBLIC WORKS WATER & SEWER DEPARTMENTS 1 - Director of Public Works* Office Supervisor* / \ Administrative Assistant* \ i Customer Service Representative* \ (3) J I- \ Assistant Director of Public Works* \ Superintendent Water & Sewer Distribution & Collection, W&S Construction, tility Meter Service Maintenance Supervisor (2) Distribution & Collection Heavy Equipment " Operator / \ CCTV Technician • Maintenance • Crew Leader (6) i Maintenance Supervisor W&S Construction 1 Superintendent Treatment Plant Water Production / Treatment Plant Supervisor / Heavy Equipment Operator • Maintenance Crew Leader i U• tility Maintenanc- • Worker (7) Utility Maintenance / Utility Meter • Worker (12) Field Service Technician Lead i Utility Meter Field Service Technician (6) *Director of Public Works reports to the Assistant City Manager Positions are budgeted at 75% in the Water & Sewer Fund. Treatment Plant Operator (10) Utility Maintenance Worker (2) Superintendent Treatment Plant Lift Stations & Wastewater Treatment • Treatment Plant \ • Supervisor / \ Utility Inspector Treatment Plant _ Operator (11) Maintenance • Supervisor Utility Maintenance_ Technician (2) Utility Maintenance_ Worker (3) PUBLIC WORKS WATER & SEWER OPERATIONS - 4020-4080 OVERVIEW Within the Water and Sewer Fund, the Public Works Administration Department oversees Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection, Construction, Water Meter Services and Public Works Water and Sewer Right of Way Mowing. The divisions funded in the Water and Sewer Fund manage the following: Water 16 ground storage water tanks 487 miles of water main 6.7 million gallons avg. produced daily 35.7 million gallons maximum daily Wastewater Treatment/Sewer 5 treatment plants 7.6 million avg. gallons treated daily 400 miles sewer mains 6 elevated water towers and 11 wells 34,696 water connections 2.1 billion gallons purchased annually 2.3 billion gallons produced annually 75 lift stations 12.6 million gallons capacity In addition to managing the above, the Lift Station division oversees the odor control operation and provides troubleshooting and programming to the SCADA system for this division. The Wastewater Treatment division provides sludge disposal services, laboratory testing, compliance documentation and reporting to maintain compliance with TCEQ regulations, and general plant maintenance and repairs. Water Production provides laboratory testing of water, collects water samples and submits reports to maintain compliance with TCEQ regulations, responds to residents' calls for services, and maintains water plant operations and maintenance. W&S Distribution and Collection conducts water and sewer repairs, sewer line inspections and preventive maintenance, as well as meter and ROW inspections, locates lines and responds to emergencies and residents' calls. The W&S Construction division repairs concrete after water and sewer repairs, repairs concrete for trip hazards and ADA compliance, installs water and sewer lines, manages sidewalk installation and provides assistance on City projects as needed. The Water Meter Services department field staff read and repair meters, turn on and off customer services, and provide replacement meters as needed. In FY 2010, the department implemented a Meter Change -Out and Testing Program which includes regularly scheduled testing of the meters and replacement of aging (10 years or older) and/or high -use meters to ensure that the meters function within accuracy limits according to AWWA Standards. Key Budget Items for FY 2015 Include: ♦ Auto Dialer Alarm System (44) - $231,000 ♦ Lift Station Rehabilitation - $500,000 ♦ Utility Inspector w/Vehicle (grease traps & Pre-treatment) - $79,784 ♦ Sludge dewatering/hauling (Far Northwest WWTP) - $525,000 ♦ 25 Auto Flushers - $107,400 ♦ Interior Lining of GST's & EST's & HPT's Program - $400,000 ♦ Pigging of Water Lines (South East) - $300,000 ♦ Analyze and Improve SCADA System - $100,000 ♦ 2 Ford F350 Replacements with F450's - $120,470 ♦ Vacuum Truck - $459,026 ♦ Longwood Street Manhole Rehab - $159,600 GOALS ♦ Provide efficient operation of the sanitary infrastructure by minimizing surcharges, overflows, and inflow and infiltration in the sanitary sewer system. ♦ Maintain the water distribution system in order to minimize the cost of water loss while maintaining a high standard of service. ♦ Identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace or repair those lines as resources allow. 151 PUBLIC WORKS WATER & SEWER OPERATIONS - 4020-4080 ♦ Monitor the water distribution system to minimize water quality concerns while maintaining a high standard of service. ♦ Maintain water wells and pumping stations to reduce unplanned shutdowns and minimize maintenance costs. ♦ Protect the health of the public and the environment through proper treatment of wastewater, while maintaining compliance with state and federal agencies. ♦ Maintain all wastewater treatment facilities in order to reduce unplanned outages and minimize the cost of maintenance. ♦ Provide distinguished customer service by quickly and courteously responding to citizen complaints or requests, including requests from City departments. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Installed 25 new water sampling stations for Water Production. ♦ Installed 20 new automatic water flushers to improve water quality for Water Production. ♦ Managed the Sewer Manhole Rehabilitation of 75 sewer manholes by a contract service. ♦ Water line maintenance was performed in Villages of Mary's Creek to improve water quality. ♦ Operated and maintained the water production system in accordance with TCEQ and EPA standards. ♦ Maintained awareness of all new state and federal law pertaining to potable water. ♦ Provided a high quality of customer service in a timely manner. ♦ Continued with a preventative maintenance program at water production facilities to ensure cost efficient operations. ♦ Revised the TWDB and TCEQ 5 year conservation and contingency plan. ♦ All accomplishments of this division were previously included in the summaries of divisions such as Streets and Drainage, Water and Sewer Construction and Lift Stations. ♦ Replaced 8" Lift Pump's at Barry Rose WWTP. ♦ Resealed 108 sewer manholes eliminating future I&I issues. ♦ Installed 550 feet of force main on Sterling Drive for a new residential property. ♦ Began work on installing approximately 3,500 feet of new 6 inch main water line in the Linwood Oaks Subdivision. This work also includes new water services for 74 residential homes. FISCAL YEAR 2015 OBJECTIVES ♦ Provide efficient operation of the sanitary infrastructure by minimizing surcharges, overflows, and inflow and infiltration in the sanitary sewer system. ♦ Maintain the water distribution system in order to minimize the cost of water loss while maintaining a high standard of service. ♦ Update the City's Water, Sanitary, Storm and Centerline and Lane Mile inventory as of September 25, 2015. ♦ Update the water meter(s) in the City as of September 25, 2015. ♦ Update the Street Lights in the City as of September 25, 2015. ♦ Rehabilitate 3 Ground Storage Tanks internally from FY14 and 2 Elevated and 1 Ground Storage Tank. ♦ Complete SCADA updates at all of our production facilities. ♦ Decommission the Old City Hall well and storage facility. ♦ Integrate the Facility Maintenance, Custodial Services, Water Meter Services, Traffic Operations and newly created Right of Way divisions into the Public Works department so as to provide improved service to city residents and city staff. ♦ Work with the Projects Department during construction of a regional sanitary lift station to replace the Walnut lift station and decommission existing station. ♦ Assist in the construction of the new Walnut Regional lift station and demolition of existing lift station. ♦ Somersetshire lift station to be decommissioned and gravity flow to South Hampton lift station. ♦ Abandon West Oaks lift station and gravity flow to Harkey Rd., SWEC service area. ♦ Work with projects to eliminate up to four sanitary sewer lift stations in the Green Tee Subdivision and flow to the new Riverstone Ranch Lift Station. 152 PUBLIC WORKS WATER & SEWER OPERATIONS - 4020-4080 FISCAL YEAR 2015 OBJECTIVES (continued) • Work with projects on the Longwood Wastewater sewer project to reroute lift stations (Mary's Creek, Parkview, Liberty, and Pirate's Alley) force main to Pearland Parkway and Magnolia. • Install auto flushers to improve water quality. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Number of fire hydrants per sq. mile in City limits 99 103 107 107 Water produced 2,916 2,859 2,470 2,500 Water purchased 1,321 1,816 2,133 2,100 Average water flows 194 207 230 230 Percent of time Wastewater plants (2 of 5 plants) over 75% of capacity* 5% 23% 27% 27% *Plants are included as projects in the 5 -year Capital Improvement Plan. Citizen Survey Ratings Good to Excellent —$—Water Quality Water Taste —Water Pressure 90% 80% X70 % 60% 50% 40% 2011 2013 2009 153 INFORMATION SYSTEMS WATER & SEWER IT-GIS — 4186 OVERVIEW Water and Sewer GIS is a division of the Information Systems Department and is responsible for providing, managing, maintaining, and effectively utilize accurate, reliable and consistent geospatial data of the City's infrastructure. ♦ Key Budget Items for FY 2015 include: ♦ No significant changes GOALS ♦ Use GIS/GPS technologies wherever possible to continuously improve efficiency and increase productivity across the City. ♦ Maintain, update and expand the digital mapping systems of the City's infrastructure. ♦ Provide timely, accurate, and meaningful GIS/GPS data. ♦ Convert and integrate available data into a standard format to import into a centralized database. ♦ Produce informative maps, reports, and digital graphics, and assist with presentation of geographic information. ♦ Utilize GPS equipment for data acquisition and analysis. ♦ Maintain Public Works as-built/record drawing library. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Completed the Evacuation Plans for the City's facilities, in coordination with the Fire Marshal's Office. ♦ Completed the update for the Mapping Grade GPS data. ♦ Completed the City's Storm System, into GIS. (Existing as of 8/14) ♦ Initiated and completed the City's walking trails into GIS data collection. Completed ♦ Research 3D software for use with GPS data. (Reviewing various 3D software for practical use.) ♦ Completed the City Parks Amenity Study ♦ Compiled GIS/GPS points for the National Sign Plaza Kiosk Booklet Data ♦ Compiled GIS Booklet for the Right of Way Mowing Areas maintained by Contractors FISCAL YEAR 2015 OBJECTIVES ♦ Update the City's Water, Sanitary, Storm and Centerline and Lane Mile inventory as off September 25, 2015 ♦ Initiate a track able management program for field and office ♦ Update the water meter(s) in the City as off September 25, 2015 ♦ Update the Street Lights in the City as off September 25, 2015 ♦ Train Field personnel to perform basic data entry into ArcMap. ♦ Provide more advance training for GPS Specialist on interpreting Engineering Plans ♦ GPS Specialist to perform more on -site training for GPS Field Personnel PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target GPS points acquired* Number of as -built drawings incorporated into system 44,738 62,000 44,054** 52,500 553 557 564 568 *GPS points represent items/miles updated on GIS maps, such as miles of water & sewer lines, items such as fire hydrants, manholes, storm/sewer inlets, etc. **Staff shortage during this year. 154 FINANCE UTILITY CUSTOMER SERVICE - 4145 OVERVIEW Utility Customer Service (Utility Billing) reports to the Assistant Finance Director and is responsible for the billing and collection of water, sewer and garbage fees. Utility Billing is also responsible for coordinating residential and commercial solid waste collection. Key Budget Items for FY 2015 Include: ♦ Wireless Read System (Backbone only) - $304,790 ♦ Field Service personnel and associated expenses related to meter reading, sales, testing and change -out moved to new division under Public Works GOALS ♦ Timely and accurate meter reads, for billing and financial integrity. ♦ Ensure accurate accounting of all revenues from the billing generated. ♦ Maintain high collection rate and continue to lower the delinquency rate by service discontinuation collection policies. ♦ Provide excellent customer service to internal and external customers. ♦ Update and maintain COP Utility Billing web information. ♦ Identify Missing Accounts and Monitor delinquent accounts and place liens as appropriate. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Identified over 800 zero read MIUs or meters throughout the City to be verified for replacement. ♦ Tested 201 large meter ranging from 2 -10 inches. ♦ Online bill payments or bank draft increased by 5% percent. ♦ Lowered number of service disconnections for delinquent accounts. FISCAL YEAR 2015 OBJECTIVES ♦ Continue timely termination of water service due to account delinquency. ♦ New meter read backbone system change out to wireless ready. ♦ Continue to increase customer service rating as shown on City Survey. ♦ Continue to review policies and procedures for improvement to ensure clean information in Customer Information System for billing and information PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target 2013 Citizen Survey respondents were satisfied or very satisfied with service received from Utility Services office Annual meter reads Customer complaints received (by City only) Percent of payments processed on-line Number of cut-offs Percent of accounts cut-off 90% 364,424 370,755 392,000 393,000 322 406 330 300 49.5% 46.4% 50.1% 50.3% 3,878 1,979 1,730 1,700 6.7% 6.0% 3.3% 3.0% 155 ENTERPRISE FUND DEBT MATURITY SCHEDULE 2014-2015 ENTERPRISE FUND DEBT GENERAL OBLIGATION REVENUE BONDS & REFUNDING SERIES Year Principal Interest Total 2014-2015 3,725,000 4,739,786 8,464,786 2015-2016 3,920,000 4,626,828 8,546,828 2016-2017 4,090,000 4,470,633 8,560,633 2017-2018 4,250,000 4,313,430 8,563,430 2018-2019 4,425,000 4,147,309 8,572,309 2019-2020 4,610,000 3,973,587 8,583,587 2020-2021 4,870,000 3,784,577 8,654,577 2021-2022 5,080,000 3,576,639 8,656,639 2022-2023 5,305,000 3,360,039 8,665,039 2023-2024 4,485,000 3,132,788 7,617,788 2024-2025 4,750,000 2,926,093 7,676,093 2025-2026 6,485,000 2,702,368 9,187,368 2026-2027 6,795,000 2,392,905 9,187,905 2027-2028 7,130,000 2,068,194 9,198,194 2028-2029 7,465,000 1,742,732 9,207,732 2029-2030 7,780,000 1,435,194 9,215,194 2030-2031 8,105,000 1,112,813 9,217,813 2031-2032 4,155,000 776,163 4,931,163 2032-2033 4,365,000 580,469 4,945,469 2033-2034 4,570,000 384,331 4,954,331 2034-2035 1,700,000 178,431 1,878,431 2035-2036 895,000 110,062 1,005,062 2036-2037 935,000 78,306 1,013,306 2037-2038 605,000 45,131 650,131 2038-2039 640,000 23,200 663,200 TOTAL 111,135,000 56,682,006 167,827,081 Series Name General Obligation Improvement and Refunding Bonds 2009* Water & Sewer Revenue Bonds Series 1999 Water & Sewer Revenue Bonds Series 2006 Water & Sewer Revenue Bonds Series 2007 Water & Sewer Revenue Bonds Series 2008 Water & Sewer Revenue Bonds Series 2009 Water & Sewer Revenue Bonds Series 2010A Water & Sewer Refunding Bonds Series 2010B Permanent Improvement Refunding Bonds Series 2012* Water & Sewer Revenue Bonds Series 2012 Series 2014 Revenue Bond TOTAL * Excluding portion associated with General Fund ** Excludes new debt anticipated to be issued in 2015. Year Principal Interest Total 2014-2015 1,530,000 474,813 2,004,813 2015-2016 1,560,000 427,900 1,987,900 2016-2017 2,415,000 344,000 2,759,000 2017-2018 2,515,000 232,188 2,747,188 2018-2019 365,000 171,700 536,700 2019-2020 370,000 157,000 527,000 2020-2021 370,000 142,200 512,200 2021-2022 385,000 127,100 512,100 2022-2023 395,000 111,500 506,500 2023-2024 1,480,000 74,000 1,554,000 2024-2025 1,480,000 22,200 1,502,200 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 2035-2036 2036-2037 2037-2038 2038-2039 TOTAL 12,865,000 2,284,600 15,149,600 Principal Amount Outstanding 6,635,000 2,580,000 10,170,000 35,705,000 13,690,000 11,340,000 12,505,000 7,875,000 6,230,000 8,060,000 9,210,000 124,000,000 156 ENTERPRISE FUND DEBT TO MATURITY 2014-2015 REVENUE BONDS $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 I ^5 ,yo I tit^' tiO^' ,? ,? ti�ryo ti, ti�ry� ti�ry� ti�ry� ti�ry� ti�ry� tiri tie O Principal O Interest Do ,yo ,yon^ 'V fin O , o' o0 O� do ,yo ,yo ,yo ,yo $3,000,000 - $2,500,000 - $2,000,000 - $1,500,000 - $1,000,000 - $500,000 - $0 GENERAL OBLIGATION 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 I I fl O Principal O Interest ** Excludes new debt anticipated to be issued in 2015. 157 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET DATE DESCRIPTION AMOUNT AMOUNT PAYMENT OUTSTANDING ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/15 3/1/2015 Series 1999 Revenue Bond 4,000,000 9/1/2015 Fiscal Year Total 3/1/2015 Series 2006 Revenue Bond 9/1/2015 Fiscal Year Total 59,340 59,340 135,000 59,340 194,340 135,000 118,680 253,680 2,445,000 13,295,000 249,760 249,760 710,000 249,759 959,759 3/1/2015 Series 2007 Revenue Bond 40,135,000 9/1/2015 Fiscal Year Total 3/1/2015 Series 2009 Permanent Improvement 9/1/2015 and Refunding Bonds* Fiscal Year Total 3/1/2015 Series 2008 Revenue Bond 9/1/2015 Fiscal Year Total 3/1/2015 Series 2009 Revenue Bond 11,660, 000 710,000 499,519 1,209,519 9,460,000 809,706 809,706 965,000 809,707 1,774,707 965,000 1,619,413 2,584,413 34,740,000 1,195, 000 129,325 114,388 1,195,000 243,713 1,438,713 5,440,000 1,324,325 114,388 14,950,000 320,608 320,608 275,000 320,608 595,608 275,000 641,215 916,215 13,415,000 13,130,000 273,681 273,681 9/1/2015 385,000 273,681 658,681 Fiscal Year Total 3/1/2015 Series 2010A Revenue Bond 14,040,000 9/1/2015 405,000 249,291 654,291 385,000 547,363 932,363 10,955,000 249,291 249,291 Fiscal Year Total 3/1/2015 Series 2010B Refunding Bond 8,970,000 9/1/2015 Fiscal Year Total 3/1/2015 Permanent Improvement and 9/1/2015 Refunding Bond Series 2012* Fiscal Year Total 3/1/2015 Series 2012 Revenue Bond 9/1/2015 Fiscal Year Total 3/1/2015 Series 2014 Revenue Bond 9/1/2015 Fiscal Year Total TOTAL 405,000 498,581 903,581 12,100,000 144,772 144,772 355,000 144,772 499,772 355,000 289,544 644,544 7,520,000 6,230,000 335,000 118,900 453,900 112,200 112,200 335,000 231,100 566,100 5,895,000 8,670,000 112,578 112,578 345,000 112,578 457,578 345,000 225,155 570,155 7,715,000 9,210,000 136,508 136,508 150,000 163,809 313,809 150,000 300,317 450,317 9,060,000 144,290,000 5,255,000 5,214,599 10,469,598 118,745,000 *Excludes General Fund Component " Excludes new debt anticipated to be issued in 2015. 158 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2015 ADOPTED BUDGET Description Rate Date Issued Amount Maturity Issued Amount Outstanding As Of 9/30/15 Annual Requirements Water & Sewer Revenue Bond Series 1999 Water & Sewer Revenue Bond Series 2006 Water & Sewer Revenue Bond Series 2007 Permanent Imp and Refunding Bonds 2009* Water & Sewer Revenue Bond Series 2008 Water & Sewer Revenue Bond Series 2009 Water & Sewer Revenue Bond Series 2010A Water & Sewer Refunding Bond Series 2010B Per. Improv. & Refunding Bond Series 2012* Water & Sewer Revenue Bond Series 2012 Water & Sewer Revenue Bond Series 2014 4.60% 1999 2020 4.5%,4.3%,4.375%,4.625% 2006 4.75%,5.00%,5.125% 2031 4.88% 5.5%, 5.25%, 5%, 4.5% 3.5%,4.48% 2.00%, 2.50%, 2.75% 5.%,4.% 4,000,000 13,295,000 2,445,000 3/1/2015 9/1/2015 9/1/2015 9,460,000 3/1/2015 9/1/2015 9/1/2015 2007 40,135,000 34,740,000 3/1/2015 2031 9/1/2015 9/1/2015 2009 11,660,000 5,440,000 3/1/2015 2018 3/1/2015 9/1/2015 3.25%,4.125%,4.2%, 4.5% 2008 4.3%,5%,4.67% 2034 1.6%,2.05%,2.13%,2.45% 2009 2.64%,2.86%,3.08%,3.35% 2034 3.60%,3.85%,4.10%,4.45% 4.65%,4.81 %,5.00% 5.07%,5.23%,5.27%,5.39% 5.45%,5.60%,5.64%,4.9% 14,950,000 13,130,000 1.75%,2.0%,2.50%,3.0% 2011 14,040,000 3.13%,3.25%,3.50,4.00% 2035 4.250%, 4.375%, 4.500% 4.08% 1.75%,2.00%,2.50%,3.00% 2011 3.13%,3.25%,3.50,4.00% 2023 4.13%,4.25%,4.38%,4.50% 3.69% 3.0%,4.0%,5.0%,3.72% 2012 2025 2.00%, 3.00%, 3.10% 3.25%, 3.375%, 3.5%, 3.625%,3.07% 3.52% 2012 2037 2015 2039 8,970,000 6,230,000 8,670,000 9,210,000 13,415,000 3/1/2015 9/1/2015 9/1/2015 10,955,000 3/1/2015 9/1/2015 9/1/2015 12,100,000 3/1/2015 9/1/2015 9/1/2015 7,520,000 3/1/2015 9/1/2015 9/1/2015 5,895,000 3/1/2015 9/1/2015 9/1/2015 7,715,000 3/1/2015 9/1/2015 9/1/2015 9,060,000 3/1/2015 9/1/2015 9/1/2015 59,340 59,340 135,000 249,760 249,759 710,000 809,706 809,707 965,000 129,325 1,195, 000 114,388 320,608 320,608 275,000 273,681 273,681 385,000 249,291 249,291 405,000 144,772 144,772 355,000 118,900 112,200 335,000 112,578 112,578 345,000 136,508 163,809 150,000 Interest Interest Principal Interest Interest Principal Interest Interest Principal Interest Principal Interest Interest Interest Principal Interest Interest Principal Interest Interest Principal Interest Interest Principal Interest Interest Principal Interest Interest Principal Interest Interest Principal TOTAL 144, 290, 000 118, 745, 000 10,469,598 *Excludes General Fund Component ** Excludes new debt anticipated to be issued in 2015. 159 SOLID WASTE - 31 SUMMARY OF REVENUES, EXPENSES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Solid Waste Enterprise Fund is used to account for residential and commercial solid waste. Governmental Accounting Standards state that the enterprise fund type may be used to account for operations that are financed and operated in a manner similar to private business, where the intent is that the costs of providing goods and services be financed or recovered through user charges. Services include the pick-up of residential solid waste twice each 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, awarded in 2006 was renewed in 2011, and with amendment in December 2013, expires September 30, 2012. 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 2014 projection is based on the current rate of $17.05 per household per month through June and a 1% increase for a fuel adjustment for July through September, at a rate of $17.21 that is provided for automatically to support the contractor, Waste Management. The fiscal year 2015 budget assumes a 2.8% increase in base rates based on CPI in April 2014 as well as growth in the customer base. No rate adjustments for fuel are included. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES Charges for Services Miscellaneous Interest Income TOTAL OPERATING EXPENSES Salary & Wages Material & Supplies Miscellaneous Services Other Expenses Inventory Infer -fund Transfers TOTAL REVENUES OVER (UNDER) EXPENSES BEGINNING CASH EQUIVALENTS ENDING CASH EQUIVALENTS $8,144,237 $8,427,761 $6,881,555 $6,603,258 30,961 30,769 34,244 12,731 612 400 1,030 660 8,175,810 8,458,930 6,916,829 6,616,649 40,506 18 300 8,323,767 6,815,112 (17,473) 1,663,049 1,968 4,784,132 1,808,076 146,794 4,634,758 1,968,500 8,306,312 8,520,935 6,739,002 6,603,258 (130,502) (62,005) 177,827 13,391 342,903 212,401 212,401 390,228 $212,401 $150,396 $390,228 $403,619 160 SOLID WASTE - 31 GOALS ♦ Provide consistent quality service to residents and commercial businesses for the pick up of solid waste within the City of Pearland. ♦ Provide public education and awareness to residents and businesses as necessary. ♦ Reliable, quality service at the best price to our customers. ♦ Continuously improve customer service by promoting a customer -focused culture that is directly responsive to the residents of the City of Pearland. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ Council approved changes to the City's solid waste contact and the City implemented a 96 -gallon cart recycling program. ♦ Transitioned billing and collecting of commercial accounts to the City's contractor. FISCAL YEAR 2015 OBJECTIVES ♦ Re-route residential service, 30,000+ customers, for a more efficient, effective route. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Projection Target Complaints as percent of total customers 6,000 5,000 4,000 3,000 2,000 1,000 Tons Collected Curbside by Waste Management FY 2012 FY 2013 FY 2014 Actual Actual Projection Recycled trash —E—Green waste recycled 1.3% 2.7% 1.8% 1.5% 90% 89% 88% 87% 86% 85% 84% 83% 82% 81% 80% Citizen Survey Ratings Good to Excellent Service of Resident Trash Collection 2009 2011 2013 161 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS tW% %, r. i s 9 162 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 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 and the City has received HGAC TIP funding in the amount of $69 million for the improvements to several streets over the next few years. Pearland places significant importance on infrastructure improvement and rehabilitation, as evidenced by a $162 million bond referendum that passed in May 2007, as well as a Five -Year CIP (2015-2019) totaling $419.0 million. The first year of the Five -Year Capital Improvement Program is incorporated into the annual budget to appropriate funds. Capital projects for Fiscal Year 2014-2015 total $55,134,653, excluding transfers and bond issuance costs. Fiscal Year 2014-2015 CIP Funding Sources ($ in millions) General Obligation Bonds, $16.9 Certificates of Obligation, $11.1 Cash, $2.3 Impact Fees, $0.3 Streets, $29.6 PEDC, $1.4 W/S Revenue Bonds, $2.1 System Revenue - Cash, $1.0 Other Funding, $20.0 Fiscal Year 2014-2015 CIP Uses by Project Type ($ in millions) Parks, $2.4 Water/Sewer, $4.6 Facilities, $14.1 Drainage, $4.4 163 Water/Sewer projects total $4.6 million, or 8.4%, of the capital improvement program. Major projects include the installation of approximately 950 feet of 12" waterline to loop from the termination of the existing waterline along the feeder road of BW 8 through Tom Bass Park; installation of 8" water line throughout the Regency Park Subdivision; rehabilitation of the Southdown WWTP to extend the life and improve operations; provide another filtration mechanism at the JHEC/SWEC WWTP; and preliminary engineering for the expansion of the Barry Rose WWTP from 3.1 MGD to 4.5 MGD. Street projects total $29.6 million, or 53.7%, of the total and include funding for the approximately 3.5 mile extension of McHard Road from Mykawa Road to Cullen Parkway, improvements to Bailey Road to a four -lane curb and gutter boulevard from approximately 1,000 feet west of FM 1128 to Veterans Drive, and replacement of all concrete paving within Regency Park Subdivision. Also included is the extension of Hooper Road from Beltway 8 for approximately 3,200 linear feet to the south property line of MHI Partnership, LTD, and the widening of Max Road is included, from the future Hughes Ranch alignment and connecting with Reid Boulevard. Fite Road will be extended approximately 2,500 feet east of McLean, running adjacent to Centennial Park. Hooper road is 75% funded by the developer and McHard, Fite, Max and Bailey are 80% funded by HGAC TIP funds. Facilities total $14.1 million, or 25.7%, and include $3.8 million for the construction of an approximate 10,700 square foot Fire Station #2. This station will house two fire crews and one EMS crew and will include dorm space, a kitchen and dining area, offices, and an exercise room. City Hall Complex funding will support renovations to better accommodate departmental staff at City Hall and in the Community Center for growth, efficiencies and safety. In addition, remodeling of the Orange Street Service Center and the expansion of the Tom Reid Library are also included. Drainage projects total $4.4 million, or 7.9%, of the total and includes additional funding for Cowart Creek Diversion for the Bailey Road corridor between FM 1128 and Wells Road, $2.3 million for Old Townsite Drainage to be used to develop a drainage and detention plan for serving the area with a sub -regional detention pond and will include the design and construction of the pond and conveyance to the sub -regional facility. Funding for land acquisition and engineering for Cullen/FM 518 detention pond is also included this year. Parks projects total $2.4 million, or 4.3%, of the total. Included is $1.8 million to begin construction related to Centennial Park Phase II, which will include the demolition of the existing soccer fields, the construction of two new lighted softball fields, the installation of a new picnic pavilion, and additional parking. Funding is included for the land for Green Tee Terrace Trail, which will be a 10 -foot hike and bike trail from the Pearland Eastside Library/City Hall to Barry Rose Road, along the Clear Creek Corridor and also for the land for the extension of the Shadow Creek Ranch Trail from east of Kirby Drive to Shadow Creek Ranch Park. The design of Independence Park Phase I, which will include the reorientation of the entry into the park, relocation and upgrade of the existing playground, improvements to the existing pavilion, the construction of additional parking, an amphitheater for special events and landscaping is funded. The Delores Fenwick Nature Center funding will be used to begin design on a 7,000 square foot building with an open air pavilion at one end that would include: environmental educational displays, demonstration gardens, interpretive exhibits, 6 or 7 offices, restrooms, outdoor spray station and hose bibs, a classroom with a 50 seat capacity, 400 square foot of storage and grass crete parking. For the Water/Sewer component, the City will sell $2.14 million in revenue bonds in 2015, use $1.4 million from system revenues, receive $224 thousand in funding from PEDC and fund $897 thousand from cash on hand reducing the amount to be issued for debt. For the remaining $50.5 million, the City anticipates selling $16.9 million in GO Bonds approved by the voters in 2007 and sell Certificates of Obligation in the amount of $11.1 million mainly for facility projects not anticipated with the 2007 bond referendum but needed for Public Safety (Fire Station #2), Public Works, and City Hall. A total of $20 million will come from HGAC Transportation Improvement Program funds and developer contributions, mainly for street projects. Cash on hand makes up the remaining funding sources. 164 CAPITAL PROJECT FUNDS SUMMARY SCHEDULE OF REVENUES & EXPENSES GENERAL FUND Fund 050 Fund 068 Fund 070 Fund 200 Fund 202 Fund 203 Total Revenues: Interest Income $ 1,500 $ 20,000 $ 21,500 Bond Proceeds 10,651,837 20,267,096 30,918,933 Impact Fees Miscellaneous 2,149,500 2,149,500 Intergovernmental 176,732 16,598,964 16,775,696 Transfers In 1,684,500 100,000 1,079,552 2,864,052 Total Revenues 3,835,500 10,928,569 37,965,612 52,729,681 Expenditures: Drainage 4,376,200 4,376,200 Parks 220,916 2,165,810 2,386,726 Facilities 10,335,854 3,807,300 14,143,154 Streets 3,334,000 200,000 26,050,341 29,584,341 Water Sewer Total Projects 3,334,000 10,756,770 36,399,651 50,490,421 Issuance Costs 200,000 335,000 535,000 Other Non -Operating 500,000 500,000 Transfers Out 50,372 75,841 805,296 834,297 1,765,806 Total Non -Operating 550,372 200,000 75,841 805,296 1,169,297 2,800,806 Total Expenses 3,884,372 10,956,770 75,841 805,296 37,568,948 53,291,227 Revenues Over/ (Under) Expenditures (48,872) (28,201) (75,841) (805,296) 396,664 (561,546) BEGINNING BALANCE 417,107 61,548 75,841 3,596 805,296 (271,669) 1,091,719 ENDING BALANCE $ 368,235 $ 33,347 $ 0 $ 3,596 $ 0 $ 124,995 $ 530,173 Fund Types Pay As You Go - Fund 050 Certificates of Obligation - Fund 068, Fund 200, General Obligation — Fund 070, Fund 202, Fund 203 165 CAPITAL PROJECT FUNDS SUMMARY SCHEDULE OF REVENUES & EXPENSES ENTERPRISE FUND Revenues: Interest Income Bond Proceeds Impact Fees Miscellaneous Intergovernmental Transfers In Total Revenues Expenditures: Drainage Parks Facilities Streets Water Sewer Total Projects Fund 042 Fund 044 Fund 067 Fund 301 GRAND Fund 302 Total TOTAL $ 15,000 $ 2,060 $ 15,000 $ 500 2,143,400 4,260,730 554,126 484,638 547,015 224,000 $ 32,560 $ 54,060 2,143,400 33,062,333 4,814,856 2,149, 500 16,775,696 1,255,653 4,119,705 4,760,368 556,186 2,705,415 224,500 8,246,469 60,976,150 739,334 842,938 1,582,272 626,245 164,000 2,104,715 167,000 2,730,960 331,000 4,376,200 2,386,726 14,143,154 29,584,341 1,529,579 1,415, 579 3,114,653 3,228,653 4,644,232 55,134,653 Issuance Costs 535,000 Other Non -Operating 500,000 Transfers Out 1,856,498 623,018 218,786 93,947 22,431 2,814,680 4,580,486 Total Non -Operating 1,856,498 623,018 218,786 93,947 22,431 2,814,680 5,615,486 Total Expenses 3,438,770 623,018 2,949,746 424,947 22,431 7,458,912 60,750,139 Revenues Over/ (Under) Expenditures 1,321,598 (66,832) (244,331) (200,447) (22,431) 787,557 226,011 BEGINNING BALANCE 3,162,186 171,721 922,021 387,697 711,452 5,355,078 6,446,796 ENDING BALANCE $4,483,784 $ 104,889 $ 677,690 $ 187,250 $ 689,021 $6,142,635 $ 6,672,807 Fund Types Pay As You Go - Fund 301 Impact Fee - Fund 042, Fund 044 Revenue Bonds - Fund 067 MUD 4 - Fund 302 166 THIS PAGE INTENTIONALLY BLANK SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET Project # Project Name Project Description Drainage Projects DR0602 Cowart Creek Diversion DR1103 Cullen/FM 518 Detention Pond DR1302 Old Townsite Drainage Drainage Total Parks Projects P20001 Independence Park Ph I P20004 Delores Fenwick Nature Center P50071 Centennial Park Ph II PK1401 Shadow Creek Ranch Trail PK1402 Green Tee Terrace Trail Parks Total Cowart Creek Diversion and Regional Detention for the Bailey Road corridor between FM 1128 and Wells Road Phase II of this project scheduled for 2015 consists of regrading the north -south ditches along all of the roads between Harkey and Veterans from CR101 to CR100. The ditch maintenance and improvement project entails re -grading the drainage ditches along Holland, Harkey, Wayne, Berry, McLean and Wellborn roads between CR 101 (Bailey Rd) and CR 100 as part of the cooperative drainage improvements for Bailey Road and the Cowart Creek Diversion. Driveway culverts will also be replaced/reset at the proper elevation as necessary based on the hydraulic evaluation. Future storm water regional detention pond located at the southwest quadrant of FM 518/Cullen Parkway intersection. The project will include construction of detention pond, existing ditch improvements and possible underground storm sewer improvements required to convey development runoff. The City's Sub -Regional Detention Master Plan identified an area located within the City's Old Townsite as a potential location for a sub -regional detention pond. The 41 -acre service area is located at the southwest corner of Walnut and Galveston and extends to SH35 and FM518, which is within the southeast quadrant of the Old Townsite. The scope of the project will be to develop a drainage and detention plan for serving the area with a sub -regional detention pond and will include the development of a PER that determines pond location, pond size, and conveyance to the sub -regional facility. Phase I Improvements include a reorientation of the entry into the park, relocation and upgrade of the existing playground, improvements to the existing pavilion, the construction of additional parking, an amphitheater for special events and landscaping. Construction will be coordinated with the Trail Phase III project. The project will include a 7,000 sq ft building with an open air pavilion at one end that would include: environmental educational displays, demonstration gardens, interpretive exhibits, 6 or 7 offices, restrooms, outdoor spray station and hose bibs, a classroom with a 50 seat capacity, 400 sq ft of storage and grass crete parking. Phase II of Centennial Park includes the demolition of the existing soccer fields, the construction of two new lighted softball fields, the installation of a new picnic pavilion and additional parking for the complex. Extension of a 10 -foot hike and bike trail from the future Shadow Creek Ranch Park site along Clear Creek to the existing trail approximately 1,300 feet east of Kirby Drive. Project will include benches, bike racks, trail signage, trash receptacles, water fountains, and shade structures. Extension of a 10 -foot hike and bike trail from the Pearland Library/City Hall to Barry Rose Road along the Clear Creek Corridor. Project includes benches, bike racks, trail signage, trash receptacles, water fountains, shade structures, and a pedestrian bridge over Clear Creek. Facility Projects F20002 Tom Reid Library Expansion FA0904 City Hall Complex Renovations FA1401 Fire Station #2 FA1404 Orange Street Service Center Facility Total The library expansion will increase the now 20,584 sf building by 11,542 sf for an overall floor plan area of 32,126 sf. This expansion will create new areas in the library such as a bookstore, children's story time room, teen zone, computer labs and additional office/storage space. Renovations and enlargements of existing areas such as the circulation desk and book stacks are also included. The existing Community Center was constructed in 1983 and City Hall in 1986. Departmental Space Programming beginning in 2007, was completed in 2014. This program incorporates the remodel of approximately 23,110 square feet of the former Community Center for Community Development and Finance & UB departments, renovations to the HVAC, Electrical and Plumbing systems and the installation of a sprinkler system for that building. It includes the remodel of 27,800 square feet in City Hall, the replacement of HVAC systems, including modifications to the Council Chambers, Administration, City Secretary, Legal, HR and Receptionist spaces and will include security and safety (exterior lighting) improvements for both buildings. Construction of a 10,726 square foot station to house one 4 -person Engine Crew, one 4 -person Ladder Crew and one 2 -person Ambulance Crew. Station 2 will include 10 dorm rooms, three restrooms with showers, a kitchen dining area, a Captain's and a Lieutenant's office, and an exercise room. The equipment area will include 3-80 feet deep drive-thru apparatus bays, a bunker gear storage area, medical supply storage, and EMS decontamination area. Land has been acquired at the northeast corner of Fite and Harkey. Public Works facilities on East Orange and Old Alvin requires updating in order to meet the demands on this facility. Fleet Maintenance facility requires the addition of fluids storage and handling equipment, the remodel of office and parts storage and the addition of a bulk fluids storage area. The storage yard requires completion of the paving to provide all weather access and clean safe operations, addition of covered pipe and bulk material storage areas and covered equipment storage. Remodel Public Works Admin building and adjacent offices and remodel old EMS and Fire Marshal buildings for division staff offices. 168 SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET 2015 Project Total Budget 2015 O & M Impact 2016 2017 2018 2019 22,026,450 1,600,000 4,572,000 464,000 3,415,000 2,312,200 8,200 8,200 8,200 8,200 8,200 30,013,450 4,376,200 8,200 8,200 8,200 8,200 8,200 3,638,510 179,810 26,163 58,475 60,045 2,308,653 158,000 172,369 261,130 2,366,295 1,828,000 56,966 76,045 76,118 76,118 76,118 1,935,458 115,733 4,170 5,560 5,560 4,173,936 105,183 2,930 5,860 5,860 14,422,852 2,386,726 56,966 76,045 109,381 318,382 408,713 3,857,560 3,807,300 90,382 90,382 90,382 90,382 4,942,783 4,445,900 4,236,614 3,769,954 2,410,000 2,120,000 15,446,957 14,143,154 914,299 939,184 1,004,681 1,029,566 964,816 991,216 1,055,198 1,081, 598 169 SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET Project # Project Name Project Description Street Projects T08002 Bailey Road - Veterans to FM 1128 Bailey Road will be improved to a four -lane concrete curb and gutter boulevard from approximately 1,000 feet west of FM 1128 to Veterans Drive, a distance of 2.76 miles. The project includes the full build out of the Bailey Intersections. TR0803 Old Town Area Sidewalks Enclose ditches and install sidewalks in the Old Town area between Houston St. and Grand Ave., from FM 518 to Orange St. N. Houston and E. Orange will be completed in 2015. TR1201 Hughes Ranch Road (CR 403) Reconstruction of CR403 from Cullen to Smith Ranch Road from a two lane asphalt open ditch roadway to a four lane concrete curb and gutter boulevard for a distance of 2 miles. Brazoria County will be completing the design, environmental clearance, and relocating the utilities. The project includes approximately 13,000 LF of Noise Barrier. Installation of additional water line infrastructure will be constructed in coordination with this project to fill in the gaps of the current system. TR1202 Fite Road An extension of Fite Road approximately 2,500 feet east of McLean, running adjacent to Centennial Park, tying into Veterans Drive. The project includes four lanes, undivided, of concrete curb and gutter including storm sewers, outfalls and detention, a traffic signal at McLean Road and other related improvements. TR1205 Max Road Widen Max Road from the future Hughes Ranch alignment and connecting with Reid Boulevard, just west of the Food Town shopping center. The roadway will be four lanes, divided, with concrete curb and gutter, including storm sewers, outfalls and detention. A traffic signal will be installed at the intersection of Hughes Ranch Road and Max Road, and a new bridge will be constructed over Hickory Slough. A 10 -ft multi -use path will be incorporated on the west side of the roadway from Hughes Ranch to Broadway per the Trail Master Plan. TR1402 Regency Park Subdivision Paving Replace all concrete paving within Regency Park Subdivision. Project will include an evaluation of the existing drainage system within the subdivision, and recommendations to improve drainage. Replacement of existing water line infrastructure throughout the neighborhood will be done in coordination with this project. TR1404 Kirby Drive Expansion Four lanes of Kirby Drive exist from Broadway to the Pearland Town Center north entrance. Two lanes continue south to CR 59. The limits of this project include extending the remaining two lanes from the Pearland Town Center entrance to CR 59. The proposed cross section is concrete curb and gutter with sidewalks. The Kirby Drive Water Line project will occur in coordination with this project. TR1405 McHard Road Extension (Mykawa Road to Cullen A new extension of approximately 3.5 miles of McHard Road, from Cullen Parkway to Mykawa Parkway) Road, constructing a 4 -lane, concrete, curb and gutter, divided roadway with raised medians. Includes storm sewers, outfalls and detention, traffic signals, sidewalks and related items. This project will be coordinated with the McHard Road Trunk Sewer extension and McHard Road Water Line Extension. TR1406 Hooper Road Extension Extension of Hooper Road from Beltway 8 for approximately 3,200 LF to the south property line of MHI. Work will include concrete curb and gutter, streetlights, sidewalks, landscaping and irrigation. Storm sewer, detention, associated water and sanitary sewer insfrastructure will be included as well. TR1501 Smith Ranch Road Extension (CR 94) Expansion of Smith Ranch Road from 2 -lanes of asphalt into 4 -lanes, divided, with raised medians, concrete curb and gutter, landscaping, and storm sewer. Limits are from Hughes Ranch Road to 2,040 ft north of Broadway. TR1502 Industrial Drive Realignment Reconstruct Industrial Drive approximately 950 feet to align directly opposit each side of SH 35. Each side will include tapers to create dedicated left turn lanes and right through option lanes. Pavement will be three lanes wide tapering to the existing two lane roadway. Realignment will require drainage adjustments to both sides of SH35 including culverts and safety end treatments as well as modifications to drainage ditches in the area. Pipeline relocation/ mitigation will be required. Street Total Water Projects WA1001 General Engineering/CIP Administration This project provides services necessary for the entire CIP and not project specific but is specific to the water or wastewater projects. The Wastewater and Water Models will be updated and any special studies will be completed as necessary. WA1203 Tom Bass Park Loop To install approximately 950 feet of 12" waterline to loop from the termination of the existing waterline along the feeder road of BW 8 through Tom Bass Park, connecting to the Lakes of Country Place subdivision. Approximately 1,250 feet of 12" waterline completed by Public Works in 2012. WA1503 Regency Park Subdivision 8" Water Line Installation of 8" water line throughout the Regency Park Subdivision. Existing lines in the neighborhood are Ac Pipe and are deteriorating. They will be left in place to avoid the added cost of containment, removal and proper disposal. This project will be done in coordination with the Regency Park Subdivision Paving & Drainage Project. WA1504 Hooper Road Water Line Installation of approximatey 3,200 LF of 8" PVC water line from Beltway 8, south along Hooper Road. The project will be constructed with the Hooper Road Extension project. WA1505 FM 521 Waterline (Broadway to Mooring Pointer) 7,500 feet of 16" water line along Almeda Rd from Broadway to Mooring Pointer. Water Total 170 SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET 2015 Project Total Budget O & M Impact 2015 2016 2017 2018 2019 33,311,733 9,140,000 1,000,000 200,000 22,321,000 200,000 4,433,480 3,332,631 6,462,617 4,248,428 3,011,761 2,766,600 2,257,545 988,545 41,155,075 3,855,469 3,724,000 3,334,000 4,984,490 328,668 1,190, 000 1,190, 000 123,851,701 29,584,341 25,886 10,697 76,773 76,773 47,786 47,786 3,662 13,286 13,286 13,286 13,286 8,193 11,855 26,886 26,886 8,613 17,226 5,593 21,186 1,563 3,126 55,941 118,293 26,886 26,886 17,226 17,226 47,650 103,533 21,186 21,186 3,126 3,126 253,919 309,802 716,078 50,000 697,044 527,444 626,245 626,245 128,000 114,000 1,443,900 211,890 3,611,267 1,529,579 171 SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET Project # Project Name Project Description Wastewater Projects WW0901 Riverstone Ranch Oversizing WW1201 Southdown (North Central) WWTP Rehabilitation WWM Project 31A WW1406 1406 McHard Rd Trunk Sewer (Garden to Southdown WWTP) WW 1407 Hooper Road Sanitary Sewer W W 1501 Roy/Max/Garden Roads Basin Sewage System - WWM Project 12 WW1502 Barry Rose WWTP Expansion WW1503 Green Tee 1 to Riverstone Wastewater Diversion (Longwood Service Area Phase 1) WW1504 (JHEC) SWEC Filter and Bar Screen Improvements WW1506 1506 Springfield Lift Station Abandonment Wastewater Total Oversizing of the Riverstone Ranch development's sewer infrastructure in order to incorporate into the City's larger system. Rehabilitate influent lift station wet well, replace pump discharge piping within the wet well, retrofit and rehab the two existing Parkson rotating fine screens, replace sludge airlift pump boxes in aeration basins with stainless steel, install process Water Sprayer Assembly at existing clarifier, drain clarifier and replace corner sweeps on clarifier mechanism; install stamford baffles on square clarifiers, repair sand filter. Install, along McHard Rd, approximately 4,500 feet of 24" trunk sewer from Cullen to Southdown WWTP; 5,800 feet of 18" trunk sewer from Cullen to Max Road; and approximately 4,000 If of 15" trunk sewer from Max Road to Garden Road. Installation of approximately 3,200 LF of 8" sewer from Beltway 8, south along Hooper Road. The project will be constructed with the Hooper Road Extension project. This project proposes approximately 4,940 feet of 18" trunk sewer along Broadway St. from Food Town's Lift Station to O'Day Rd, approximately 1,300 feet of 15" trunk sewer along Garden Rd from Broadway to the lift station and 1,200 feet of 12" sewer line along Roy / Max Rd from Broadway to Hickory Slough. Complete a Preliminary Engineering Report to evaluate the timing and alternatives to expand the Barry Rose WWTP Plant from the existing 3.1 mgd to 4.5 mgd to serve expanding population in this service area. Ultimately expansion would take plant to 8 mod. Decommission lift station pump at corner of Country Club Dr. and Golfcrest, convert to manhole and install approximately 2,200 feet of 8 to 10 inch gravity line to receiving manhole in first phase of Riverstone Ranch oversizing. This includes approximately 80 feet of bored installation, 3 manholes to 12 feet deep coring manholes, sand bedding backfill grade and hydro -mulch. This project will provide for another filtration mechanism at the John Hargrove Environmental Center JHEC / SWEC waste water treatment plant. Presently the plant use three filters to manage its daily loading. The additional filter system will enable the operators to take a portion of the plant off line when needed to perform maintenance as needed. The current configuration of three filters does not accommodate for this and therefore prohibits frequent and needed maintenance of the system. The project will also address deficiencies with the bar screen mechanism which is not and has not been operating properly. It is in need of replacement. A new compactor / washer will also be included in this project. Convert the Springfield lift station into a manhole and gravity flow all wastewater 1,300 feet south to the Park Village Lift station on the east side of McLean. GRAND TOTAL 172 SUMMARY OF CAPITAL PROJECTS FY 2015 ADOPTED BUDGET 2015 Project Total Budget 0 & M Impact 2015 2016 2017 2018 2019 713,609 128,167 657,392 540,545 5,102, 701 34,771 123,000 110,000 2,651,800 330,000 14,166,650 350,000 324,170 324,170 1,240,000 1,240,000 457,000 57,000 25,436,322 3,114,653 (12,300) (16,400) (16,400) (10,933) (16,400) (16,400) 126,181 168,241 (2,050) (8,200) (8,200) (8,200) (2,050) (31,433) 85,181 127,241 212, 782, 549 55,134, 653 77,021 1,142, 817 1,234,007 1,720,880 1,935, 554 173 THIS PAGE INTENTIONALLY BLANK SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for specific revenues that are legally restricted for particular purposes. A description of the individual Special Revenue Funds follows and the budget schedules can be found following this document. 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. Court Juvenile Management — Article 102.0174 of the Code of Criminal Procedures allows a city to collect up to a $5.00 fee from each Class C misdemeanor conviction related to salaries and benefits for a Juvenile Case Manager. The City charges a $1.00 fee for Class C misdemeanor convictions as well as a $1 Truancy fee, pursuant to Article 45.056 for the same. Street Assessment — Chapter 313 of the Texas Transportation Code, allows the city to levy assessments against various persons and their property for the payment of a part of the cost of a portion of public improvements. A fund is created to account for this collection, which is used for designated street improvements. Traffic Improvement — A fund that accounts for resources to be used for traffic improvements based on traffic analysis. Regional Detention — A fund created to account for regional detention development. Hotel/Motel Occupancy Tax — A fund created to account for hotel/motel occupancy tax revenue. 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. Park and Recreation Development — A fund created to account for the development of parks with parkland dedication fees. Tree Trust — A fund created to account for tree trust donations. Sidewalk — A fund created to account for resources designated for sidewalks. 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. Grant Fund — To account for all revenues and expenditures associated with federal, state and local grants, except CDBG. Community Development Block Grant — A fund used to account for revenues and expenditures associated with the Federal Community Development Block Grant. University of Houston Operating — Fund created to account for the revenues and expenditures associated with a development lease agreement between the City, University of Houston, and Pearland Economic Development Corporation. University of Houston Capital Renewal — Fund created to account for the accumulation of capital renewal funds to be used for the replacement of FF&E pursuant to the lease agreement. Municipal Channel (PEG) — Fund created to account for the revenues and expenditures associated with equipment for public -access television broadcasting under rules set forth by the Federal Communications Commission (FCC). 175 COURT SECURITY - 17 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW City Council adopted a resolution authorizing Municipal Court to collect a $3 fee from each defendant found guilty of a misdemeanor. Pursuant to the Texas Code of Criminal Procedure, revenues generated from this fee must be deposited into a special fund. The money collected may be used only to fund court security and includes such items as metal detectors, surveillance equipment, security personnel, security hardware, personnel security training, or other security measures. The revenues generated from this fee partially cover the cost of a full-time Court Bailiff and a part-time Court Bailiff, in addition to operating costs. In fiscal year 2015, another part-time bailiff is added due to the increased number of dockets for property hearings and bond forfeiture hearings. The proportional share of Securenet (software/hardware for building security) maintenance remains funded in fiscal year 2015. Beginning in fiscal year 2016 or 2017, a portion of the costs will need to be funded from the General Fund as the City is currently drawing down fund balance to fund annual expenditures. Court Efficiency (10% of time pay fees) is also part of this fund. The fund balance at 9/30/2015 is estimated to be $63,546. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES INTEREST INCOME TOTAL EXPENDITURES SALARY & WAGES MATERIALS & SUPPLIES MISCELLANEOUS SERVICES INVENTORY $ $ 59,477 66,163 $ 54,508 $ 57,008 200 254 175 200 59,677 66,417 54,683 57,208 58,912 63,734 1,020 1,200 11,257 13,744 64,139 1,200 13,118 82,203 1,500 14,444 1,350 TOTAL 71,189 78,678 78,457 99,497 REVENUES OVER (UNDER) EXPENDITURES (11,512) (12,261) (23,774) (42,289) FUND BALANCE - BEGINNING 141,121 129,609 129,609 105,835 FUND BALANCE - ENDING $ $ 129,609 117,348 $ 105,835 $ 63,546 176 CITYWIDE DONATION FUND - 18 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Citywide Donation Fund is used to account for miscellaneous donations for all City Departments, except the Parks and Recreation Department. Donations received for specific reasons or for specific departments shall be spent for those purposes. Expenditures in fiscal year 2014 totaled $103,094, including $39,625 for a van with cages for Animal Control Mobile Adoptions/Events; $21,000 as a transfer to the General Fund for Animal Control expenses that include chemicals, vaccines, medical, animal food, and programs; $16,993 for EMS to purchase computers in support of training and supplies, installation of vehicle mounted event recorders for drivers' safety and the installation of Knox Med Vaults for security of medications. Fire Marshal's Office received a grant of $19,917 from Firehouse Subs for the purchase of a Fire Education House for public education. Pearland PETS presented Animal Control with a $29,568 check toward the future purchase of a mobile adoption/disaster recovery vehicle. The fiscal year 2015 budget includes $2,200 for a laptop for a Humane Officer; $1,550 for two motolights for motorcycles in the Police Traffic Division; $18,250 for the replacement of gear racks with storage lockers and the purchase of a commercial size refrigerator on wheels for rehabilitation (cooling down) firefighters/EMTs when returning from fighting a fire. This leaves approximately $43,000 available for Animal Control, $11,550 available for Fire/EMS, $850 for Police, $300 for Emergency Management, and around $1,200 for the Westside Library. The estimated amount available is $58,727 on 9/30/2015. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME MISCELLANEOUS DONATIONS TOTAL EXPENDITURES MATERIALS & SUPPLIES BUILDINGS & GROUNDS MAINTENANCE OF EQUIPMENT MISCELLANEOUS SERVICES INVENTORY TRANSFER TO FUND 10 CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 118 $ 106 $ 150 $ 120 34,412 30,526 69,085 23,130 34,530 30,632 69,235 23,250 11,868 10,675 1 2,689 280 20,560 21,000 35,170 11,115 1,550 15,800 16,993 4,650 21,000 53,986 14,558 87,685 103,094 22,000 19,972 (57,053) (33,859) 1,250 71,364 91,336 91,336 57,477 $ 91,336 $ 34,283 $ 57,477 $ 58,727 177 COURT TECHNOLOGY - 19 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW City Council adopted a resolution 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. Fiscal year 2014 expenditures continue to provide maintenance of various systems used by the court, the purchase of a projector, and funds needed for the full implementation of new court software system. In fiscal year 2015, revenues will be used to pay an annual fee to access law enforcement warrant data, court software maintenance fee and internet service. Fund Balance at 9/30/2015 is estimated to be $4,532. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES INTEREST INCOME TOTAL EXPENDITURES MATERIALS & SUPPLIES MISCELLANEOUS SERVICES MAINTENANCE OF EQUIPMENT INVENTORY CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING $ 70,909 $ 78,330 $ 62,000 $ 65,500 380 90 246 10 71,289 78,420 62,246 65,510 2,393 10,322 12,215 6,219 5,094 27,121 17,544 3,450 26,400 17,144 307,000 293,000 2,800 8,812 55,053 31,149 356,759 339,994 66,665 40,140 (278,339) (277,748) (1,155) 243,295 283,435 283,435 5,687 FUND BALANCE - ENDING $ 283,435 $ 5,096 $ 5,687 $ 4,532 178 COURT JUVENILE MANAGEMENT - 23 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The State of Texas has authorized the governing body of a municipality to collect a fee up to $5 from each Class C misdemeanor conviction for the expenses 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, with a fee of $4 for each conviction. In fiscal year 2014, the rate decreased to $1 per conviction, along with a $1 per conviction Truancy fee pursuant to Article 45.056. The revenues generated from this fee covers the cost of the Juvenile Case Manager. Fund Balance at 9/30/2015 is estimated to be $47,749. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES INTEREST INCOME TOTAL EXPENDITURES SALARY & WAGES MISCELLANEOUS SERVICES TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 69,603 $ 39,165 $ 37,164 $ 38,250 71 100 85 72 69,674 39,265 37,249 38,322 43,603 41,474 42,592 42,629 479 1,600 1,500 1,600 44,082 43,074 44,092 44,229 25,592 (3,809) (6,843) (5,907) 34,907 60,499 60,499 53,656 $ 60,499 $ 56,690 $ 53,656 $ 47,749 179 STREET ASSESSMENT - 33 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW City Council adopted an Ordinance pursuant to Chapter 313 of the Texas Transportation Code, authorizing the City to levy assessments against various persons and their property for the payment of a part of the cost of a portion 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. Land owner assessments total $2,484,917, excluding interest. Assessments mature and become due and payable upon the earlier of: within thirty days of a sale of all or portion of the property or upon the filing of any plat or application for a permit with the City for the development of the property. The Pearland Economic Development Corporation (PEDC) funded a portion of the construction of the roadway improvements and the City entered into a reimbursement agreement with the PEDC to reimburse with the road assessments collected plus the interest collected by the City up to the amount the PEDC paid towards the construction. Since the City does not know when sale or the development of the property might occur, the budget reflects no activity. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES STREET ASSESSMENT INTEREST INCOME EXPENDITURES $ 62,194 394 TOTAL 62,588 OTHER REQUIREMENTS 62,588 TOTAL 62,588 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 0 180 TRAFFIC IMPROVEMENT - 35 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Traffic Improvement Fund accounts for resources for traffic improvements. Funds are collected as a result of a traffic analysis performed for new developments. Traffic engineers analyze the proposed traffic patterns and trips generated by the development and then estimate the costs of the improvements needed to mitigate the impact the development has on the transportation system. For those improvements that cannot be constructed at the time of development, the funds are received from the developer and held until the projects can be incorporated into a City project. Fiscal year 2014 revenues total $42,850. Projected expenditures include $9,000 toward Kirby Drive Extension and $1,625 toward the Garden Road/FM 518 traffic signal. Fiscal year 2015 revenues total $1,800 and expenditures total $91 towards County Road 94. The fund balance at 9/30/2015 is estimated to be $673,830. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS INTEREST INCOME TOTAL EXPENDITURES INTERFUND TRANSFERS TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 204,689 $ 40,850 1,006 870 2,000 1,800 205,695 870 42,850 1,800 157,907 10,625 10,625 91 157,907 10,625 10,625 91 47,788 (9,755) 32,225 1,709 592,108 639,896 639,896 672,121 $ 639,896 $ 630,141 $ 672,121 $ 673,830 181 REGIONAL DETENTION FUND - 43 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Regional Detention Fund accounts for regional detention development. A certain amount of capacity in a regional detention facility is allocated to the watershed and a certain amount of capacity is reserved for future detention needs based on new development. Developers can buy into the regional detention based on capacity needs versus capacity available. The current regional detention pond program is based on five regional detention ponds throughout the City. The City completed a regional detention study in September 2010, which proposed various sub -regional detention ponds. Capacity from the pond would be purchased at a per acre feet fee based on construction cost of the pond. The fee structure will help recover the cost to purchase the property, design and construct the pond. A total of $10,443 was transferred in fiscal year 2013 to the Debt Service Fund toward payment of debt for East Mary's Creek. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS REGIONAL DETENTION FEES TOTAL EXPENDITURES $ 12 10,425 10,437 TRANSFER TO FUND 20 10,443 TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 10,443 (6) 6 $ 0 182 HOTEL/MOTEL OCCUPANCY TAX FUND - 45 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Hotel/Motel Occupancy Tax Fund is used to account for revenues realized from hotel occupancy taxes. Local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the administrative expenses for registering convention delegates, pay for tourism -related advertising and promotions, fund programs that enhance the arts or pay for historic preservation or restoration projects, and pay for sports related expenses pursuant to state law that will enhance tourism. By law, cities with populations of less than 125,000 must spend at least 1% of hotel tax receipts on advertising, no more than 15% on art programs and a maximum of 50% on historic preservation. In fiscal year 2010 City Council approved a Cultural Arts Grants Program to increase tourism and hotel industry activity. Maximum of grants to be provided in any given year would be $15,000. Pearland is home to eleven hotels, totaling 860 rooms: Best Western, Hampton Inn, La Quinta, The Courtyard by Marriott, Comfort Suites, Hilton Garden Inn, Candlewood Suites, two Holiday Inn Express's, Sleep Inn & Suites and Springhill Suites hotels. Hotel Occupancy Tax revenue is projected to be $1,342,794 in fiscal year 2014. Expenditures for fiscal year 2014 total $780,922. Expenditures include a co-sponsorship of the second annual Pearland Crawfish Festival and $58,199 carried over from FY 2013 for the final invoices on the CVB office buildout at Pearland Town Center. Fiscal year 2015 revenue is $1,393,078, with occupancy tax revenue at $1,383,078, and total expenditures of $819,213. The budget includes continued co-sponsorship of the annual Pearland Crawfish Festival, office space rental at the Pearland Town Center (PTC), and two part-time receptionists to staff weekends. The budget continues familiarization trips for hosting planners and press to network for future business and showcasing Pearland, workshops for hotels on front desk service and packaging, and the rebate to Hilton Garden Inn toward the construction of the conference center. Fund balance 9/30/15 is estimated to be $3,494,090. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES HOTEL/MOTEL OCCUPANCY TAX INTEREST INCOME MISCELLANEOUS TOTAL EXPENDITURES SALARIES & WAGES MATERIALS & SUPPLIES BUILDINGS & GROUNDS MAINTENANCE OF EQUIPMENT MISCELLANEOUS SERVICES TRANSFERS INVENTORY CAPITAL OUTLAY TOTAL $ 1,150,360 $ 1,148,088 $ 1,342,794 $ 1,383,078 3,277 3,000 5,200 5,000 77,000 82,000 5,000 1,153,637 1,228,088 1,429,994 1,393,078 54,533 219,178 185,247 263,565 38,700 71,200 71,200 71,200 13,587 545 568 4,657 188 416,660 462,542 458,932 483,132 1,316 9,606 7,642 11,158 173,226 53,630 53,630 706,314 819,394 780,922 819,213 REVENUES OVER (UNDER) EXPENDITURES 447,323 408,694 649,072 573,865 FUND BALANCE - BEGINNING 1,823,829 2,271,152 2,271,152 2,920,225 FUND BALANCE - ENDING $ 2,271,152 $ 2,679,846 $ 2,920,225 $ 3,494,090 183 PARK DONATIONS FUND - 46 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Park Donations Fund was created to account for donations and sponsorships for Park Special Events such as the July 4th event or Winterfest. This fund is also used to account for the receipt and use of citizen donations through their water bills. Use of these funds are allocated to specific events as identified with the donation or sponsorship, to supplement events, grants or park development. Funds are budgeted to supplement programs based upon the donations received. In FY 2015, $26,700 of the sponsorship funds are budgeted for design services for new signage of parks. Fund Balance at 9/30/2015 is estimated to be $84,696. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME DONATIONS SPONSORSHIPS TOTAL EXPENDITURES PROGRAMS TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 149 $ 100 $ 140 $ 140 877 1,000 1,025 1,000 102,089 80,000 103,000 80,000 103,115 81,100 104,165 81,140 77,557 71,500 136,367 80,000 77,557 71,500 136,367 80,000 25,558 9,600 (32,202) 1,140 90,200 115,758 115,758 83,556 $ 115,758 $ 125,358 $ 83,556 $ 84,696 184 PARK & RECREATION DEVELOPMENT FUND - 47 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW Pursuant to City Ordinance, new development either must dedicate parkland or pay the City a fee in lieu of parkland, as defined in the Ordinance. The City has thirteen parkland areas or zones. Fees, when paid, are identified by area and use of the funds must be spent within that area. Expenditures for FY 2014 included $48,700 for new signage at the following parks: Southgate, Centennial, Cypress Village, Creekside, Zychlinski, Hyde, Woodcreek, Aaron Pasternak Memorial Park, including $8,500 for a new sign at Southdown Park. The City planned to purchase a sign for Southdown during fiscal year 2013, but the cost of the sign increased from $5,000 to $8,500, therefore the $5,000 is eliminated from the FY 2013 projection and re -budgeted in FY 2014. $70,000 is budgeted for picnic equipment and shade structures for the Max Road Sportsplex, and $66,500 for Green Tee Trail. Carryovers from FY 2013 totaling $62,823 were approved to complete the renovation of restrooms at Independence Park and Southdown Park and to repaint the splash pad at Southdown Park. Expenditures for FY 2015 include $100,000 for Centennial Park, $8,980 for 2 pet water fountains at Southdown and $9,552 for signage at Shadow Creek Trail. The total cost for the sign is $10,000 with $448 funded in the General Fund. Fund Balance at 9/30/2015 is estimated to be $705,545. Included is a map of the thirteen parkland zones. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES PARKLAND FEES/DONATIONS INTEREST INCOME TOTAL EXPENDITURES INTERFUND TRANSFERS CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 243,803 $ 50,000 $ 223,879 $ 50,000 1,247 1,200 1,202 1,100 245,050 51,200 225,081 51,100 66,500 100,000 308,833 178,023 181,523 18,532 308,833 178,023 248,023 118,532 (63,783) (126,823) (22,942) (67,432) 859,702 795,919 795,919 772,977 $ 795,919 $ 669,096 $ 772,977 $ 705,545 185 14 ORFE NW( EM I'23a 01 Centenial Park 02 Independence Park 03 Southdown Park 04 Woodcreek Park 05 Woody Street Park 06 Cypress Village Park 07 Corrigan Park 08 Hyde Park ORANGE ST FM Ste 07 OA RDm BAILEY RD SAM HOUSTON TO Tom Bass Par'' Harris Co. lea ublio Golf Coors. Chrism ITE RD c4thwych. a 09 Pine Hollow Park 10 Creekside Park 11 Aaron Pastemak Memorial Park 12 Zychlinski Park 13 Sonny Tobias Park 14 SCR Nature Trail 15 Southgate Park CITY OF PEARLAND Park Zones Golf Cource l 01 Public Park - 02 County Park 03 HOUSTON TOLLWAY/BELTWAY e 04L 1071 10 13 05 - 08 n 11 Ell l Pearland City Limits 06 09 12 ' _ _ I Pearland ETJ ranco Lee P Harris C Miles This product M for informational purposes and may not have been prepared for or be suitable far legal, engineering, or surveying purposes. It does not represent anon-thetground survey and represents only the approximate relative location of property boundaries MAP PREPARED: OCT 2014 CITY OF PEARLAND GIS DEPARTMENT TREE TRUST FUND - 49 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Tree Trust Fund was created for the purpose of purchasing, growing, and/or maintaining trees and associated plants within the city limits. Funds for tree trust donations are from developers who cannot mitigate for trees they have taken down for development. The fee is determined by their tree survey and how many caliper inches they have to mitigate. Funds can be used to plant and replace trees in City right-of-ways such as Pearland Parkway and in City parks. During FY 2013, $59,880 was received from Seaway Crude Pipeline. In FY 2015, $31,100 is budgeted for trees at the Shadow Creek Ranch Park, a Capital Improvement Project, and $38,000 is budgeted for a wood chipper to cut and recycle limbs from tree canopies and use toward mulch for trees. Fund Balance at 9/30/2015 is estimated to be $254. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS INTEREST INCOME TOTAL EXPENDITURES BUILDINGS & GROUNDS INVENTORY CAPITAL OUTLAY INTERFUND TRANSFERS TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 60,130 54 $ 751 54 103 45 60,184 54 854 45 2,770 1,800 5,000 5,391 38,000 31,100 4,570 5,000 5,391 69,100 55,614 (4,946) 18,232 73,846 (4,537) (69,055) 73,846 69,309 $ 73,846 $ 68,900 $ 69,309 $ 254 187 SIDEWALK - 55 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Sidewalk Fund is used to account for revenues and expenditures associated with the installation of sidewalks. 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. The cost per square foot is $5.25 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. Fiscal year 2014 transfer out to capital projects is towards the Kirby Drive Extension project. Fiscal year 2015 transfer out to capital projects is towards Bailey Road from Veterans to FM 1128. Fund Balance at 9/30/2015 is estimated to be $182,879. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME SIDEWALK REVENUE TOTAL EXPENDITURES INTERFUND TRANSFERS TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 309 $ 300 $ 325 $ 240 20,128 5,000 33,390 5,000 20,437 5,300 33,715 5,240 14,652 67,224 14,652 67,224 20,437 5,300 19,063 (61,984) 205,363 225,800 225,800 244,863 $ 225,800 $ 231,100 $ 244,863 $ 182,879 188 POLICE STATE SEIZURE FUND - 60 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Police State Seizure Fund is used to account for state seizure funds. 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. Seizure funds are acquired through the sale of seized property, property used in commission of a crime. In fiscal year 2013, the City budgeted $23,000 to replace the control units of the ALPR system. However, the vendor went out of business, requiring the entire system to be replaced, and the $23,000 was carried over to fiscal year 2014 with an additional $23,000 allocated to cover the cost. The department has applied for a grant to receive a dog, and has budgeted $1,100 for a K-9 kennel and $2,200 for a K-9 vehicle cage in the event the grant is awarded. Other expenditures include cost for undercover vehicles and informant monies. The projected fund balance at 9/30/15 is $91,764. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME SEIZURE FUNDS TOTAL EXPENDITURES MATERIALS & SUPPLIES EQUIPMENT MAINTENANCE MISCELLANEOUS INVENTORY CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 314 $ 132 $ 281 $ 100 26,124 15,000 46,906 20,000 26,438 15,132 47,187 20,100 10,436 18,803 16,197 500 40,203 59,740 51,440 50,800 3,300 29,883 46,690 46,000 80,522 125,733 113,637 54,100 (54,084) (110,601) (66,450) (34,000) 246,297 192,213 192,213 125,764 $ 192,213 $ 81,612 $ 125,764 $ 91,764 189 FEDERAL POLICE FUND - 62 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Federal Police Fund is used to account for federal seizure funds. 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. Fiscal year 2014 includes $31,842 for 14 replacement tactical vests for SWAT. Projected fund balance at 9/30/2015 is $26,785. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES POLICE DRUG REVENUE INTEREST INCOME EXPENDITURES WEARING APPAREL $ 17,067 58 50 $ 9,256 70 15 TOTAL 17,125 50 9,326 15 TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 29,000 31,842 29,000 31,842 17,125 (28,950) (22,516) 15 32,161 49,286 49,286 26,770 $ 49,286 $ 20,336 $ 26,770 $ 26,785 190 GRANT FUND - 101 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Grant Fund is used to account for revenues and expenditures associated with federal, state and local grants. Fiscal year 2014 grant revenues total $624,608. Expenditures for fiscal year 2014 include $200,000 for a Recreational Trails Grant from the Texas Parks and Wildlife Department that will connect Centennial Park and Independence Park; $46,846 for the Emergency Management Performance Grant (EMPG) from the Texas Division of Emergency Management; $116,686 in grant funds from the Texas Commission on Environmental Quality for the purchase of a Glass Crusher for the City's Stella Roberts Recycling Center; the $54,666 in remaining funds from the multi -year $703,089 SAFER Firefighter Hiring grant from FEMA; $49,395 in additional funds from FEMA for the recruitment and retention of volunteer firefighters; two crime victim assistance grants in the amounts of $64,687 and $41,849 from the Office of the Governor and the Office of the Attorney General, respectively; and $18,719 in matching funds awarded to the City through HGAC for DWI enforcement. The Fire Department will receive $9,000 for training from the Texas Forestry Service. A total of $35,328 in expenditures for the purchase of bulletproof vest replacements through the Department of Justice's Bulletproof Vest Partnership, as well as police training funds from the State of Texas in the amount of $11,079, have been made available to the City for the safety and protection of our police officers. In addition, $2,660 will be spent on non -motorized transportation for Emergency Medical Services. Fiscal year 2014 expenditures total $650,915. Fiscal year 2015 grant revenues total $262,297. This includes $40,863 for the Emergency Management Performance Grant (EMPG) from the Texas Division of Emergency Management; two crime victim assistance grants in the amounts of $64,687 and $41,849 from the Office of the Governor and the Office of the Attorney General, respectively; the remaining $57,526 of an original $146,802 multi -year grant for use by the City during 2011 - 2015 from the FEMA SAFER Volunteer Firefighter Recruitment and Retention Grant program; $14,663 for the 50% matching grant funds from Bulletproof Vest Partnership for replacement vests for officers; and $13,562 from HGAC for the grant funds issued by Texas Commission on Environmental Quality for three tilt hoppers and surveillance equipment designed to enforce illegal dumping laws in Pearland. A total of $10,428 is being made available from the E. Byrne Memorial Justice Assistance Grant (JAG) for Gang Tracking Software, lighting enhancements for police motorcycles, and technology designed to aid in the digital reconstruction of accident and investigative scenes; and the City anticipates the continuance of the HGAC/TxDOT DWI grant that provided $18,719 in matching funds during FY 2014. Expenditures for fiscal year 2015 total $276,959. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES GRANT REVENUE INTEREST INCOME INTERFUND TRANSFERS INTERGOVERNMENTAL TOTAL EXPENDITURES SALARY & WAGES MATERIALS & SUPPLIES TRANSFERS CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 556,925 $ 617,677 $ 624,608 $ 262,297 4 11 11 20,747 6,549 5,600 5,895 584,225 623,288 630,514 262,297 38,090 14,732 489,081 15,659 16,599 55,222 436,513 120,000 20,393 44,908 436,513 119,346 29,325 191,107 23,990 565,763 646,497 650,915 276,959 18,462 (23,209) (20,401) (14,663) 27,799 46,261 46,261 25,860 $ 46,261 $ 23,052 $ 25,860 $ 11,198 191 COMMUNITY DEVELOPMENT GRANT FUND - 112 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Community Development Grant Fund (CDBG) is used to account for revenues and expenditures associated with the Federal Community Development Block Grant. The U.S. Department of Housing and Urban Development provides eligible metropolitan cities and urban counties (called "entitlement communities") with annual direct grants that can be used to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services; primarily to benefit low and moderate income persons. Under the guidelines, up to 15% of the grant can be spent on social services toward targeted groups of individuals that live within the City, and up to 20% can be spent on administration. CDBG funds available for use on infrastructure projects are limited only by the total annual allocation available to the entitlement jurisdiction by HUD or the amount of funding remaining after allocations to public services and/or program administration activities have been made. Fiscal year 2014 expenditures of $753,146 include $15,000 for Pearland Neighborhood Center's Emergency Rent/Utility Assistance Program, which has helped over 300 Pearland residents avoid evictions or utilities being disconnected since 2007. A total of $66,650 of CDBG funding was spent on administrative activities designed to coordinate the City's efforts to maintain compliance with federal regulations, financial management principles, participate in audits, and complete the necessary reporting and planning activities required by the U.S. Department of Housing and Urban Development (HUD). A total of $228,495 was spent to complete work that began in fiscal year 2012 on the installation of sidewalks and associated drainage along Westchester Circle in Pearland. A 4 -way traffic signal was installed at the intersection of FM 518/Broadway and Garden Road with $225,559 in CDBG funds, and $25,738 was used to complete the construction of an outdoor concrete pathway with ADA compliant ramps at the expanded Forgotten Angels Day Hab Center. The 1,000 square foot expansion of this facility began in fiscal year 2013, and $18,650 was spent in fiscal year 2014 to complete the investment of $40,000 CDBG funding provided for the project. Funding in the amount of $145,310 budgeted for capital outlay will be carried over for use in fiscal year 2015 to supplement the proposed CDBG single family housing rehabilitation program and capital infrastructure improvements in the Old Townsite area. An additional amount of $27,947 in prior year unspent funding is re -allocable for an existing HUD -funded construction project, or for a revised scope of work that may be presented to HUD via the CDBG Substantial Amendment process. Fiscal year 2015 CDBG allocation totals $313,794. A total of $20,000 is budgeted for public services and $62,758 for planning and administration. A total of $231,036 will be used for code enforcement and single family housing rehabilitation program activities for limited -income, eligible Pearland households. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES GRANT REVENUE INTEREST INCOME EXPENDITURES $263,363 $721,950 $753,146 $313,794 23 TOTAL 263,386 721,950 753,146 313,794 MISCELLANEOUS SERVICES TRANSFERS CAPITAL OUTLAY 39,700 223,855 36,200 540,440 145,310 36,200 571,636 145,310 46,026 267,768 TOTAL 263,555 721,950 753,146 313,794 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING (169) 212 43 43 43 $ 43 $ 43 $ 43 $ 43 192 UNIVERSITY OF HOUSTON FUND - 140 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW In fiscal year 2009 the City and the University of Houston (UH) entered into a development lease agreement where the City would construct a 31,554 square foot building on City land, and UH would lease 23,621 square feet with the Pearland Economic Development Corporation (PEDC) occupying 3,281 square feet and 4,652 square feet would be used as a conference center/meeting area. The facility was completed in July 2010. As such, with the 2010 fiscal year this fund was created to account for the lease revenues and expenditures associated with the campus. Full year funding began October 1, 2010 for fiscal year 2011. Per the agreement, UH and PEDC pay their pro rata share of operations and maintenance costs for the facility. In fiscal year 2010, the PEDC also approved paying for the operating costs associated with the conference center. UH share is 74.85% and PEDC is 25.15%. Expenditures include custodial services, lawn maintenance, utilities, repair and maintenance, and insurance. The Agreement states that the University of Houston's share of operations would not exceed $175,274 in the first lease year, with a 5% cap in subsequent years on controllable costs. For fiscal year 2014, both revenues and expenditures exceed budget. Expenditures over budget mainly due to increased windstorm insurance of $23,034, additional electricity costs for a longer and colder winter of $21,850, and $26,749 for enhancements and upgrading of landscape and landscape maintenance. These increases are passed to the participating entities through a year-end true -up. Expenditures for fiscal year 2015 total $339,915. Revenues and expenditures are a pass -through, as only interest income of $40 remains as fund balance. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS INTEREST INCOME TRANSFERS IN EXPENDITURES $ 188,167 $ 193,407 $ 250,082 $ 254,426 32 50 40 40 97,565 64,990 90,813 85,489 TOTAL 285,764 258,447 340,935 339,955 PERSONNEL MATERIALS & SUPPLIES MAINTENANCE OF BUILDINGS & GROUNDS MISCELLANEOUS SERVICES TRANSFERS OUT TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 31,153 4,267 53,005 228,405 43,037 5,600 23,240 185,849 540 51,924 5,500 20,300 263,211 48,580 5,600 19,800 265,935 316,830 258,266 340,935 339,915 (31,065) 181 40 31,065 $ 0 $ 181 $ 0 $ 40 193 UNIVERSITY OF HOUSTON CAPITAL RENEWAL FUND - 141 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW In fiscal year 2009 the City and the University of Houston (UH) entered into a development lease agreement where the City would construct a 31,554 square foot building on City land, and UH would lease 23,621 square feet with the Pearland Economic Development Corporation (PEDC) occupying 3,281 square feet and 4,652 square feet would be used as a conference center/meeting area. The facility was completed in July 2010. The lease agreement establishes a Capital Renewal Fund with contribution of 1% of replacement value of the building to begin in Year 4 through Year 5 and a 2% contribution beginning in Year 6. Fiscal Year 2014 begins Year 4 with contribution required. The actual cost of the project was less than anticipated, resulting in a savings of $321,862. Using the same pro -rata share for the total project costs allocation, UofH at 66.64%, PEDC at 11.22%, and the City at 22.14%, the funds were moved to the Capital Renewal Fund. A portion of the City's total, $47,442, was transferred back to the City Debt Service Fund in fiscal year 2012, leaving a balance of $274,420 to be allocated. UofH and PEDC is paid through December 2016, the City through March 2015. As such, the fiscal year 2015 budget includes a transfer in from the City of Pearland of $8,041 for the full contribution for fiscal year 2015. Fund balance ending 9/30/15 is $248,485. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST TRANSFERS IN EXPENDITURES $ 29 $ 330 $ 335 274,420 8,041 TOTAL 274,449 330 8,376 TRANSFER TO FUND 140 34,670 TOTAL 34,670 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 239,779 330 8,376 239,779 239,779 240,109 $ 239,779 $ 239,779 $ 240,109 $ 248,485 194 MUNICIPAL CHANNEL (PEG) - 145 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Municipal Channel Fund was established in fiscal year 2012 to account for revenues and expenditures associated with City's Public, Education and Government (PEG) channel. The State legislature approved a legislative bill (S.B. 1087) during the 2011 82nd legislative session that allows for municipalities to receive 1% of gross revenues, labeled "State Franchise Fee," on customer bills to fund capital expenditures associated with public, education and government programming for the City's PEG channel. The funds can only be used for capital purchases such as cameras, monitors, cables, microphones, software programs or upgrades, computers, etc. Funds from the PEG fee are received quarterly. Fiscal year 2014 expenditures include two cameras, microphone, power supply, transmitter, and granicus unit for the second floor conference room to stream P&Z meetings, and funding for additional equipment, if needed, in the council chambers, camera and camera related supplies, and two laptop computers. Expenditures in fiscal year 2015 include upgraded storage system with more memory, camera shoulder mount kit, external recorder camera monitor, LED light kit, Canon camera, expanding the dais, potentially improving cameras in the council chambers. Fund balance at 9/30/2015 is anticipated to be $666,175. These funds are available to potentially fund an in-house studio with the renovations of City Hall. FY 2013 Actual FY 2014 Amended Budget FY 2014 Year End Projection FY 2015 Adopted Budget REVENUES FRANCHISE FEES INTEREST INCOME TOTAL EXPENDITURES MATERIALS & SUPPLIES BUILDINGS & GROUNDS MAINTENANCE OF EQUIPMENT MISCELLANEOUS SERVICES INVENTORY CAPITAL OUTLAY TOTAL REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING $ 240,378 $ 233,600 204 505 $ 265,000 $ 270,000 407 500 240,582 234,105 265,407 270,500 4,067 9,505 7,325 8,000 665 665 10,000 1,295 1,800 1,000 15,814 24,378 26,600 24,700 44,813 11,977 10,156 40,000 64,694 47,820 46,546 83,700 175,888 186,285 218,861 186,800 84,626 260,514 260,514 479,375 FUND BALANCE - ENDING $ 260,514 $ 446,799 $ 479,375 $ 666,175 195 THIS PAGE INTENTIONALLY BLANK P EARL AND TEXAS tW% %, r. i s 9 196 INTERNAL SERVICE FUNDS The Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. The City of Pearland has two Internal Service Funds. Property/Liability Insurance Fund Accounts for the activities of the City's property and casualty insurance. Medical Self Insurance Fund Accounts for the accumulation of monies for the payment of medical claims. 197 PROPERTY/LIABILITY INSURANCE FUND - 95 SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2015 ADOPTED BUDGET OVERVIEW The Property/Liability Insurance Fund has been created to account for the activities of the City's property and casualty insurance. Coverage includes general liability, law enforcement, public official and employees' liability, auto liability, physical damage and multi -peril, mobile equipment, real and personal property, and windstorm coverage. The fund not only accounts for the annual premiums but also accounts for uninsured and deductible claims and insurance recovery funds on those claims. Premiums for fiscal year 2014 total $1,174,565 and estimated uninsured and deductible claims for fiscal year 2014 total $96,789, a total savings of $88,775 from budget mainly seen in the premium for excess wind coverage. Premiums for fiscal year 2015 include a 3.12% increase for Law Enforcement Liability Coverage, a 12% increase in police auto coverage with remaining auto coverage seeing a 7% increase and increased property liability and windstorm due to new facilities being added in fiscal year 2015; Fire Station 3, Fire Station 2, and the development of two new parks. A 5% increase in windstorm coverage is also budgeted. Based on the type of insurance and values of property, the General Fund and Water & Sewer Fund reimburse the Property Insurance. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES INTERFUND TRANSFERS INSURANCE RECOVERY INTEREST INCOME TOTAL OPERATING EXPENSES INSURANCE PREMIUMS CLAIMS INVENTORY BUILDINGS & GROUNDS TOTAL REVENUES OVER (UNDER) EXPENSES BEGINNING NET ASSETS ENDING NET ASSETS $1,135,012 $1,265,888 $1,120,668 $1,284,375 153,371 94,241 88,418 106,000 50 50 120 1,288,433 1,360,179 1,209,206 1,390,375 1,146,304 1,265,888 1,174,565 1,284,360 129,819 90,000 87,450 90,000 2,550 4,774 4,241 6,789 1,280,897 1,360,129 1,271,354 1,374,360 7,536 50 (62,148) 16,015 138,616 146,152 146,152 84,004 $ 146,152 $ 146,202 $ 84,004 $ 100,019 198 PROPERTY/LIABILITY INSURANCE FUND - 95 REVENUES AND EXPENSES FY 2015 ADOPTED BUDGET REVENUES ACCOUNT NUMBER ACCOUNT DESCRIPTION FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget 095-0000-359.09-00 095-0000-359.99-00 *TRANSFERS TRANSFER FROM FUND 030 TRANSFER FROM FUND 010 TRANSFER FROM FUND 045 095-0000-358.45-00 INSURANCE REIMBURSEMENTS 095-0000-358.99-00 MISCELLANEOUS *INSURANCE RECOVERY/MISC. 095-0000-356.00-00 *INTEREST EXPENSES ACCOUNT NUMBER INTEREST INCOME TOTAL ACCOUNT DESCRIPTION 259,966 339,064 301,030 236,691 875,046 926,824 819,638 1,046,368 1,316 1,135,012 1,265,888 1,120,668 1,284,375 148,030 94,241 82,213 100,000 5,341 6,205 6,000 153,371 94,241 88,418 106,000 50 50 120 50 50 120 1,288,433 1,360,179 1,209,206 1,390,375 FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget 095-0000-555.01-01 095-0000-555.01-02 095-0000-555.01-03 095-0000-555.01-04 095-0000-555.01-05 095-0000-555.03-01 095-0000-555.03-02 095-0000-555.03-03 095-0000-555.03-04 095-0000-555.03-05 095-0000-555.03-06 095-0000-555.03-07 095-0000-555.03-08 GENERAL LIABILITY INSURANCE ERRORS AND OMISSIONS INSURANCE PUBLIC EMPLOYEE DISHONESTY INS ANIMAL MORTALITY INSURANCE LAW ENFORCEMENT LIABILITY PROPERTY INSURANCE WINDSTORM DAMAGE INS AUTOMOBILE LIABILITY AUTO DAMAGE PROPERTY XS WIND MOBILE EQUIPMENT COASTAL WIND SEWAGE BACK-UP *MISCELLANEOUS SERVICES 095-1270-556.03-00 CLAIMS *CLAIMS 095-1270-564.01-00 $1,000 - $4,999 *INVENTORY 095-3389-553.01-00 BUILDINGS & GROUNDS *BUILDINGS & GROUNDS 41,141 50,397 50,549 48,813 65,456 74,840 74,140 76,364 3,175 3,225 3,210 3,210 2,491 2,270 2,971 2,924 67,406 71,869 73,580 78,152 72,122 81,578 71,153 93,292 618,626 641,006 632,737 727,204 96,836 112,169 102,867 121,462 84,765 92,043 87,957 103,847 55,069 92,793 37,077 10,733 12,518 12,480 12,480 13,473 15,420 10,023 15,010 15,760 15,821 16,612 1,146,304 1,265,888 1,174,565 1,284,360 129,819 90,000 87,450 90,000 129,819 90,000 87,450 90,000 2,550 4,774 4,241 2,550 6,789 4,774 4,241 6,789 TOTAL 1,280,897 1,360,129 1,271,354 1,374,360 199 MEDICAL SELF INSURANCE FUND - 99 SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2015 ADOPTED BUDGET OVERVIEW The Medical Self Insurance Fund has been created to account for the activities of the City's employee insurance. The fund also accounts for retiree and COBRA contribution, claims and coverage. In a self-insurance fund, the employer, the City, is ultimately responsible for all health care cost, and pays for those costs plus administrative fees. In order to minimize exposure, the City has established an individual stop loss of $125,000 and an aggregate stop loss of $6.484 million effective October 1, 2014. If claims exceed the aggregate stop loss, the plan will provide for an additional $1.0 million, with no reimbursement required by the City. In fiscal year 2014, it is anticipated that claims will exceed the $5.5 million aggregate stop loss, capping the City's exposure at $5.5 million. Total expenses including stop loss and administrative fees is $6.3 million. As such, the City's rates for fiscal year 2015 increased 17.4%. In keeping with providing a sustainable benefit plan for the employees but minimizing the financial impact to both the employee and the City, the City made overall plan changes and eliminated the open access plan for fiscal year 2015. The City will provide three options for employees; a Health Savings Account and two Kelsey Seybold options. The City pays for the employee cost and 70% of the dependent cost of the base Kelsey plan; the differential for the other plans is paid by the employee. The establishment and maintenance of appropriate reserves is critical to the financial health of a self -funded health care plan. Reserves not only fund IBNR or termination expenses of the plan, but also provide for a risk factor reserve to cover the aggregate corridor stop loss risk. Reserves should be targeted at 2 to 3 months of claims, at $1.2 million for fiscal year 2015. With higher claims than expected, the net assets for fiscal year 2014 would have been $375,000 in the negative. As such, the City made a contribution to the fund in the amount of almost $1.4 million dollars, leaving a ending balance of almost $1.0 million dollars in the fund at the end of fiscal year 2014. Fiscal year 2015 estimated contributions, from the City and the employee, total $6,821,888 to cover the same in expenses, of which $5.8 million is anticipated claims. Ending net assets at 9/30/2015 is anticipated to be $994,450. Through the City's wellness program established to mitigate health care costs, the City believes these efforts will reduce future claims. FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES INTEREST INCOME CONTRIBUTIONS TRANSFERS TOTAL OPERATING EXPENSES CLAIMS AND FEES MISCELLANEOUS TOTAL REVENUES OVER (UNDER) EXPENSES BEGINNING NET ASSETS ENDING NET ASSETS $ 482 $ 490 $ 395 $ 856 5,220,506 5,499,401 5,441,043 6,821,032 675,000 1,369,510 5,895,988 5,499,891 6,810,948 6,821,888 5,734,712 28,465 5,485,785 20,000 6,272,592 20,000 6,801,888 20,000 5,763,177 5,505,785 6,292,592 6,821,888 132,811 (5,894) 518,356 343,283 476,094 476,094 994,450 $ 476,094 $ 470,200 $ 994,450 $ 994,450 200 MEDICAL SELF INSURANCE FUND - 99 REVENUES AND EXPENSES FY 2015 ADOPTED BUDGET REVENUES ACCOUNT NUMBER ACCOUNT DESCRIPTION FY 2014 FY 2014 FY 2013 Amended Year End Actual Budget Projection FY 2015 Adopted Budget 099-0000-356.00-00 *INTEREST 099-0000-358.50-01 099-0000-358.50-02 099-0000-358.99-00 *CONTRIBUTIONS 099-0000-359.09-00 099-0000-359.99-00 *TRANSFERS EXPENSES ACCOUNT NUMBER INTEREST INCOME CITY/EMPLOYEE CONTRIBUTIONS RETIREE/COBRA CONTRIBUTIONS MISCELLANEOUS TRANSFER FROM FUND 030 TRANSFER FROM FUND 010 TOTAL ACCOUNT DESCRIPTION 482 490 395 856 482 4,897,585 82,516 240,405 490 5,412,972 86,429 395 856 5,150,997 6,715,268 114,740 105,764 175,306 5,220,506 5,499,401 5,441,043 6,821,032 114,750 560,250 1,369,510 675,000 1,369,510 5,895,988 5,499,891 6,810,948 6,821,888 FY 2014 FY 2014 FY 2015 FY 2013 Amended Year End Adopted Actual Budget Projection Budget 099-1040-555.10-01 099-1040-555.10-08 099-1040-555.10-02 *CLAIMS ADMINISTRATIVE FEE HEALTH PORTABILITY ACT MEDICAL INSURANCE CLAIMS 099-1040-556.28-00 WELLNESS PROGRAM *MISCELLANEOUS SERVICES 733,332 842,907 759,697 870,832 1,121 57,426 89,493 5,000,259 4,585,452 5,512,895 5,841,563 5,734,712 5,485,785 6,272,592 6,801,888 28,465 20,000 20,000 20,000 28,465 20,000 20,000 20,000 TOTAL 5,763,177 5,505,785 6,292,592 6,821,888 201 THIS PAGE INTENTIONALLY BLANK COMPONENT UNITS The City of Pearland has three entities that are considered component units of the City. They are the Pearland Economic Development Corporation (P.E.D.C.), Pearland Tax Increment Reinvestment Zone #2 (TIRZ), and the Development Authority of Pearland. The P.E.D.C. 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. 203 PEARLAND ECONOMIC DEVELOPMENT FUND - 15 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2015 ADOPTED BUDGET OVERVIEW The Pearland Economic Development Corporation (P.E.D.C.) was created in 1995 by the voters under the Texas Development Corporation Act of 1979. The Corporation is financed by additional sales tax of a half -cent. State law allows the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the City. The Board of Directors are appointed by and serve at the discretion of the City Council. City Council approval is required for annual budgets and bonded debt issuance. The role of the Corporation is to provide guidance and funding for the operations of the City's economic development program and provide business incentives to support and promote the growth and diversification of the City's economic base. Fund balance at 9/30/15 is $12,130,754. FY 2013 Actual FY 2014 Amended Budget FY 2014 Year End Projection FY 2015 Adopted Budget OPERATING REVENUES Sales Tax Interest Income Intergovernmental Miscellaneous TOTAL OPERATING EXPENDITURES Operating Operating Transfers Bond Payments Inventory Capital Outlay TOTAL REVENUES OVER/(UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Capital Transfers Out Incentives TOTAL NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING (Before Reserves) DEBT SERVICE RESERVES DEBT PAY-OFF (Cumulative) $ 7,871,396 $ 8,673,733 40,811 38,500 438,326 414,648 $ 8,416,762 69,000 71,588 446,412 $ 8,921,768 45,000 12,000 436,998 8,350,533 9,126,881 9,003,762 9,415,766 1,152,608 2,460,617 2,045,585 2,464 1,738,407 178,782 2,054,024 5,000 48,000 1,472,441 199,122 2,032,500 5,000 147,320 1,809,301 204,971 8,602,270 5,000 955,000 5,661,274 4,024,213 3,856,383 11,576,542 2,689,259 5,102,668 5,147,379 (2,160,776) (376,274) (784,450) (2,794,889) (1,210,326) (1,880,014) (1,408,500) (1,723,514) (784,450) (3,171,163) (3,090,340) (3,132,014) 1,904,809 1,931,505 2,057,039 (5,292,790) 13,461,696 (665,254) 3,041,757) 15,366,505 (665,254) 4,815,942) 15,366,505 (665,254) 4,725,109) 17,423,544 FUND BALANCE - ENDING $ 11,659,494 $ 11,816,814 $ 12,033,181 $ 12,130,754 204 Fiscal Year 2013-2014 — Operating Revenues are projected to be $9,003,762, $123,119 below the amended budget. The decrease is due to lower than anticipated sales tax revenue, projected at $8,416,762, $256,971, or 3.0%, below the amended budget due to a more moderate growth in the commercial/retail sector than anticipated. Sales tax is $545,366 or 6.9% higher than fiscal year 2013 as continued residential and commercial development in Pearland and down the 288 corridor spur growth in sales. Operating Expenditures and Other Financial Uses for fiscal year 2013-2014 are projected to be $6,946,723, $248,653 less than the amended budget, mainly due to anticipated savings in business incentives. Business Incentives are lower than anticipated by $914,875, which is due to performance agreements not yet being met and contingency funding budgeted for unidentified potential projects that will not be used in fiscal year 2013-2014. $1,210,326 is anticipated to be transferred to the City for capital projects, $343,826 for Business Center Drive, $166,500 Hooper Road and $700,000 for Max Road Soccer Complex, $834,052 greater than the amended budget. A reserve of $665,254 is set aside for debt service reserves associated with the 2010 bond sale for the CSI facility. Available fund balance at 9/30/2014 is $12,033,181, after $4,725,109 is reserved for pay-off of Series 2010 debt in 2015. This is $216,367 greater than budgeted. Fiscal Year 2014-2015 — Operating Revenues are estimated to be $9,415,766, of which $8,921,768, or 95%, is from sales tax remittances. Sales tax is estimated to increase by $505,006, or 6.0%, from the fiscal year 2013- 2014 projection and increases by 13.3% over the fiscal year 2012-2013 actual. A total of $436,000 budgeted in miscellaneous revenue is anticipated from rent payments from the CSI facility. Interest income is anticipated at $45,000. Operating Expenditures and Other Financial Uses totaling $14,708,556 are $7,761,833, or 111.7% greater than the fiscal year 2013-2014 projection. Included in the budget is the pay-off for Series 2010 debt in the amount of $6,556,900. Excluding this, operating expenditures total $5,019,642, $995,429 greater than last year's budget. Operating Expenditures include $8.6 million for bond payments and $204,971 in transfers, which include operating costs for office space in the University of Houston-Pearland Campus. Lease cost for the office space is also included in the budget. Capital Outlay of $955,000 include $450,000 for corridor improvements, including landscaping improvements and entryway signs, in keeping with the Pearland 20/20 Plan of a comprehensive beautification strategy, and $500,000 to bury electrical lines in the Lower Kirby area. Remaining expenditures cover staff and economic development, retention and development programs. Other Financing Uses of $3,132,014 include $1.4 million for capital transfers to the City toward extension of Hooper Road. The developer is contributing the remaining amount of $2.1 million. There is $1.7 million budgeted for incentives. Total Expenditures are over Revenues by $5,292,790 due to debt retirement of $6,556,900. After the debt is defeased principal outstanding as of 9/30/2015 will be $15,265,000. Available fund balance at 9/30/15 is estimated to be $12,130,754. 205 PEARLAND ECONOMIC DEVELOPMENT FUND - 15 EXPENDITURE AND STAFFING SUMMARY BY DEPARTMENT FY 2015 ADOPTED BUDGET EXPENDITURES BY DEPT/DIVISION FY2014 FY2014 FY2015 FY2013 Amended Year End Adopted Actual Budget Projection Budget Salaries & Wages Materials & Supplies Maintenance, Buildings & Grounds Equipment Maintenance Services Incentives Transfers Bond Payments Inventory Capital 443,760 564,543 582,336 636,935 8,755 7,750 7,650 8,250 1,359 2,000 1,600 2,000 3,733 7,600 6,500 6,800 695,001 1,156,514 874,355 1,155,316 784,450 2,794,889 1,880,014 1,723,514 2,460,617 555,056 1,409,448 1,613,471 2,045,585 2,054,024 2,032,500 8,602,270 2,464 5,000 5,000 5,000 48,000 147,320 955,000 TOTAL 6,445,724 7,195,376 6,946,723 14,708,556 FY2014 FY2014 FY2015 FY2013 Amended Year End Adopted STAFFING BY CLASSIFICATION Actual Budget* Projection Budget President of EDC / Executive Manager of Development Services 1 1 1 1 Vice -President of EDC 1 1 1 1 Director of Marketing 1 1 1 1 Old Townsite ED Coordinator 1 1 Redevelopment Coordinator 1 1 Office Coordinator 1 1 1 1 TOTAL 5 5 5 5 *Same as Adopted Budget, unless w here noted 206 PEARLAND ECONOMIC DEVELOPMENT CORPORATION FUND - FUND 15 GOALS ♦ Attract high -wage professional employment opportunities that diversify Pearland's economic base and facilitate the expansion and retention of existing Pearland businesses. ♦ Support key capital improvement and transportation planning efforts to ensure that key high -impact road projects are completed. ♦ Continue efforts to implement plans to develop the Lower Kirby Urban Center as Pearland's most intensive mixed -use employment, residential and entertainment district. ♦ Actively pursue redevelopment efforts resulting in continued improvement and investment in Pearland. These efforts should improve the appearance and enhance the image of Pearland to its citizens and to individuals outside the area. ♦ Continue to make organizational improvements that allow for the implementation of a consistent, quality economic development effort able to implement initiatives essential for the long-term economic growth of the community. FISCAL YEAR 2014 ACCOMPLISHMENTS ♦ In FY 2014, PEDC opened 30 business attraction projects and held 92 visits with potential primary employers. Major announcements included Mitsubishi Heavy Compressor Corporation's 100,000 square -foot manufacturing and service facility in Pearland's Lower Kirby District that will bring over $40M in investment and over 100 jobs to the community. ♦ In FY 2014, PEDC opened 11 business retention and expansion projects and held 65 meeting with existing employers. Major announcements included Amerlux's new 80,000 square -foot manufacturing facility in Pearland's Lower Kirby District that will bring over $8.1M in investment and 20 new jobs to the community. ♦ In FY 2014, PEDC opened 14 new development projects. Major announcements included Stream Realty's 165,000 square -foot Center at Pearland Parkway next to the newly constructed HEB. ♦ PEDC reevaluated and renewed its contract with the Chamber of Commerce for business retention and expansion services. ♦ PEDC completed two beautification plans for the community: the 288 Master Plan and a City Gateway plan. PEDC is currently working with the City and KPB to establish the first entry feature on Cullen Boulevard. ♦ PEDC began the process of creating a redevelopment strategy for SH 35. PEDC issued an RFP, evaluated responses and selected Ricker Cunningham as the firm that will help guide the strategy. ♦ PEDC continued to make progress towards improving the appearance of the 288 corridor. The PMMD#2 management district elected a board of directors and approved a master plan for 288. A maintenance and operations tax of $0.10 per $100 in valuation was approved by voters in the District. ♦ PEDC continued to work with the City and the Lower Kirby Management District on the utilization of the TxDOT drainage ditch for a regional detention solution. In 2014, the City and both Districts approved multiple agreements to implement regional detention including a master drainage plan, interlocal agreements and financing agreements. ♦ PEDC continued implementation of the Pearland 20/20 Community Strategic Plan. Steering committee meetings were held in December 2013 and July 2014 and progress updates were provided to the committee at each of these meetings. FISCAL YEAR 2015 OBJECTIVES ♦ Recruit new primary employers to the community ♦ Reach out to existing targeted primary employers to offer assistance, including expansion assistance. ♦ Provide assistance to developers looking to make investments in our community. ♦ Continue to assist developers and prospective investors in the Lower Kirby area and market the area through all relevant channels. 207 FISCAL YEAR 2015 OBJECTIVES (continued) ♦ Continue to work the City and Management Districts on the development of regional detention for the eastern portion of the area. ♦ Complete and begin implementation of the comprehensive redevelopment plan for the Main Street/State Highway 35 corridor. ♦ Implement master plan improvements to the 288 Corridor. PERFORMANCE MEASURES FY 2012 FY 2013 FY 2014 FY 2015 Actual Actual Actual Target Number of announced projects* Number of new projects Number of Visits** 10 46 111 5 55 110 16 55 157 7 44 105 *Projects include the opening of new businesses, retention and expansion of existing businesses, and infrastructure and beautification projects funded by PEDC. **Visits include visiting potential new businesses, existing businesses to ensure retention. Life Science Business/Professional Services Energy Manufacturing/Warehouseii Developments NEW PROJECTS BY INDUSTRY 3 7 10 4 2 17 10 0 Other 9 16 20 ❑ FY 2015 Target ❑ FY 2014 Actual 208 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT TO MATURITY Year Principal Interest** Total 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 $965,000 $1,064,596 2,029,596 $1,010,000 $1,020,987 2,030,987 $1,060,000 $972,331 2,032,331 $1,115,000 $921,288 2,036,288 $1,175,000 $867,243 2,042,243 $1,230,000 $815,844 2,045,844 $1,285,000 $761,647 2,046,647 $1,350,000 $704,403 2,054,403 $1,415,000 $642,588 2,057,588 $1,480,000 $577,589 2,057,589 $1,555,000 $509,055 2,064,055 $1,635,000 $436,662 2,071,662 $1,715,000 $360,499 2,075,499 $1,805,000 $274,827 2,079,827 $1,895,000 $187,797 2,082,797 $2,000,000 $96,434 2,096,434 TOTAL $22,690,000 $10,213,787 $32,903,787 Principal Amount Series Outstanding Series 2005 Series 2006 Series 2010* TOTAL 7,095,000 8,860,000 6,735,000 $22,690,000 * Variable Interest Rate, every 6 months interest rate is reset. **Based on 3/1/2014 interest rate reset for series 2010 bonds through maturity. Series 2010 is planned to be called and defeased in its entirety as of 9/1/2015. As of 9/30/2015 principal outstanding will be $15,265,000 and interest outstanding will be $6,252,906 for toal debt to maturity at 9/30/2015 totaling $21,517,906. 209 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT TO MATURITY $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ❑ Principal ❑ Interest Note: Does not reflect defeasance of Series 2010 bonds anticipated to be defeased by September 1, 2015. Once defeased, annual debt service would lower by approximately $603,000 annually. 210 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT FY 2015 ADOPTED BUDGET DUE DATE DESCRIPTION AMOUNT ISSUED PAYMENT PRINCIPAL INTEREST TOTAL AMOUNT OUTSTANDING 9/30/2015 3/1/2015 Series 2005 9/1/2015 Fiscal Year Total 3/1/2015 Series 2006 9/1/2015 Fiscal Year Total 3/1/2015 Series 2010* 9/1/2015 Fiscal Year Total 11,005,000 10,235,000 7,685,000 460,000 460,000 152,969 152,969 305,938 152,969 612,969 765,938 6,635,000 211,459 230,000 211,459 230,000 422,919 211,459 441,459 652,919 6,635,000 8,630,000 275,000 275,000 167,934 167,934 335,868 167,934 442,934 610,868 8,630,000 6,460,000 6,460,000 TOTAL 965,000 1,064,724 2,029,724 21,725,000 *Interest rate based on September 1, 2014 reset date. Description Rate Date Amount Issued Amount Outstanding Maturity Issued As of 9/30/14 Annual Requirements New Money Bond Series 2005 New Money Bond Series 2006 New Money Bond Series 2010* TOTAL 3.5%, 4%,5%,4.1%, 4.125%,4.2%,4.25% 2005 11,005,000 7,095,000 3/1/2015 2026 9/1/2015 152,969 Interest 152,969 Interest 9/1/2015 460,000 Principal 5%,4.5%,4.25%,4.375%, 2007 10,235,000 8,860,000 3/1/2015 4.5%,4.75% 2030 211,459 Interest 9/1/2015 211,459 Interest 9/1/2015 230,000 Principal 5.111%,5.144%,5.1119%, 2010 7,685,000 6,735,000 3/1/2015 167,934 Interest 5.406%,5.36%,5.048% 2030 28,925,000 22,690,000 9/1/2015 167,934 Interest 9/1/2015 275,000 Principal 2,029,724 *Variable interest rate. Every 6 months, interest rate is reset. 211 THIS PAGE INTENTIONALLY BLANK 61", .OA �90 PEARLAND TEXAS Sr. APPENDIX A AUTHORITY The City of Pearland's Operating Budget is proposed and approved in accordance with State Law, the City Charter and the City Code of Ordinances PEARLAND CITY CHARTER ARTICLE 8 MUNICIPAL FINANCE SECTION 8.01 - Fiscal Year: The fiscal year of the City of Pearland shall begin at the first day of October and shall end on the last day of September of each calendar year. Such fiscal year shall constitute the budget and accounting year. SECTION 8.02 - Preparation and Submission of Budget: The City Manager, between sixty (60) and ninety (90) days prior to the beginning of each fiscal year, shall submit to the Council a proposed budget, which budget shall provide a complete financial plan for the fiscal year and shall contain the following: (a) A budget message, explanatory of the budget, which shall contain an outline of the proposed financial policies of the City for the fiscal year, shall set forth the reasons for salient changes from the previous fiscal year in expenditures and revenue items, and shall explain any major changes in financial policy. (b) A consolidated statement of anticipated receipts and proposed expenditures for all funds. (c) An analysis of property valuations. (d) An analysis of tax rates. (e) Tax levies and tax collections by years for at least the immediate past five (5) years. (f) General funds resources in detail. (g) Special funds resources in detail. (h) Summary of proposed expenditures by function, department and activity. (i) Detailed estimates of expenditures shown separately for each activity to support the summary (h) above. (j) A revenue and expense statement for all types of bonds, time warrants and other indebtedness. (k) A description of all bond issues, time warrants and other indebtedness outstanding, showing rate of interest, date of issue, maturity date, and amount authorized, amount issued and amount outstanding. (I) A schedule of requirements for the principal and interest of each issue of bonds, time warrants and other indebtedness. (m) The appropriation ordinance. (n) The tax -levying ordinance. SECTION 8.03 - Anticipated Revenues Compared With Other Years in Budget: In preparing the budget, the City Manager shall place in parallel columns opposite the several items of revenue, the actual amount of each item for the last completed fiscal year, the estimated amount for the current fiscal year, and the proposed amount for the ensuing fiscal year. SECTION 8.04 - Proposed Expenditures Compared With Other Years: The City Manager, in the preparation of the budget shall place in parallel columns opposite the various items of expenditures the actual amount of such items of expenditures for the last completed fiscal year, the estimated amount for the current fiscal year, and the proposed amount for the ensuing fiscal year. SECTION 8.05 - Budget a Public Record: The budget and all supporting schedules shall be filed with the person performing the duties of City Secretary, submitted to the Council and shall be a public record. SECTION 8.06 - Notice of Public Hearing on Budget (Amended 5/19/2014): In accordance with state law, the City Council shall cause to be published in the official newspaper of the City of Pearland a notice of the hearing setting forth the date time and place of the public hearing on the submitted budget. 213 SECTION 8.07 - Public Hearing on Budget: At the time and place set forth in the notice required by Section 8.06, or at any time and place to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the budget submitted and all interested persons shall be given an opportunity to be heard for or against any item or amount of any item therein contained. SECTION 8.08 - Proceedings on Budget After Public Hearings (Amended 5/19/2014): After the hearing, the City Council may adopt the budget with or without amendment. In amending the budget, it may add or increase programs or amounts, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income plus funds available from prior years. SECTION 8.09 - Vote Required for Adoption: The budget shall be adopted by a majority of the members of the whole City Council. SECTION 8.10 - Date of Final Adoption (Amended 5/19/2014) : The budget shall be adopted no later than the last regularly scheduled Council meeting of September to allow compliance with the state tax laws, and should the City Council fail to so adopt a budget, the then existing budget, together with its tax levying ordinance and its appropriation ordinance, shall be deemed adopted for the ensuing fiscal year. SECTION 8.11 - Effective Date of Budget; Certification; Copies Made Available (Amended 5/19/2014): Upon final adoption, the budget shall be in effect for the fiscal year. A copy of the budget, as finally adopted, shall be filed with the person performing the duties of City Secretary and the County Clerk of Brazoria County. The final budget shall be published on the City's website made available for the use of all offices, departments, and agencies and for the use of interested persons and civic organizations. SECTION 8.12 - Budget Established Appropriations: From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes therein named. SECTION 8.13 - Budget Established Amount to be Raised by Property Tax: From the effective date of the budget, the amount stated therein as the amount to be raised by property tax shall constitute a determination of the amount of the levy for the purposes of the City in the corresponding tax year; provided, however, that in no event shall such levy exceed the legal limit provided by the laws and constitution of the State of Texas. SECTION 8.14 - Contingent Appropriation: (Amended 5/19/2014) Provision shall be made in the annual budget and in the appropriation ordinance for a contingent appropriation ordinance for a contingent appropriation in an amount not to exceed one (1) per centum of the general fund expenditures to be used in case of unforeseen items of expenditures. Such contingent appropriation shall be under the control of the City Manager and distributed by him/her after approval by the City Council. SECTION 8.15 - Estimated Expenditures Shall Not Exceed Estimated Resources: The total estimated expenditures of the general fund and debt service fund shall not exceed the total estimated resources of each fund (prospective income plus cash on hand). The classification of revenue and expenditure accounts shall conform as nearly as local conditions will permit to the uniform classification as promulgated by the National Committee on Government Accounting or some other nationally accepted classification. SECTION 8.16 - Emergency Appropriations (Amended 5/7/1990): At any time in any fiscal year, the Council may, pursuant to this section, make emergency appropriations to meet a pressing need for public expenditure, for other than regular or recurring requirements, to protect the public health, safety or welfare. Such appropriations shall be by ordinance adopted by the majority vote of the Council members at one (1) special or regular meeting. 214 SECTION 8.17 - Purchase Procedure: (Amended 4/15/1974; 4/5/1982) All purchases made and contracts executed by the City shall be pursuant to a requisition from the head of the office, department or agency whose appropriation will be charged, and no contract or order shall be binding upon the City unless and until the City Manager certifies that there is to the credit of such office, department or agency a sufficient unencumbered appropriation and allotment balance to pay for the supplies, materials, equipment, or contractual services for which the contract or order is issued. All purchases made and contract executed by the City shall be made in accordance with the requirements of this Charter and all applicable requirements of the Constitution and Statutes of the State of Texas. All contracts for purchases or expenditures must be expressly approved in advance by the Council, except that the Council may by ordinance confer upon the City Manager, general authority to contract for expenditures without further approval of the Council for all budgeted items the cost of which does not exceed the constitutional and statutory requirements for competitive bidding. SECTION 8.18 - Disbursement of Funds (Amended 5/19/2014): All checks, vouchers or warrants for the withdrawal of money from the City Depository shall be signed by the City Manager or the Mayor, and countersigned by the City Secretary, or the City Treasurer. SECTION 8.19 - Power to Tax: (Amended 4/9/84) The City Council shall have the power, and is hereby authorized to levy and collect an annual tax upon all real and personal property within the City not to exceed the maximum limits set by the Constitution and laws of the State of Texas as they now exist, or as they may be amended. SECTION 8.20 - Property Subject to Tax; Rendition, Appraisal and Assessment: (Amended 4/7/84) All real and tangible and intangible personal property within the jurisdiction of the City of Pearland not expressly exempted by law shall be subject to annual taxation. The method and procedures for the rendition, appraisal and assessment of all real and personal property within the City shall be in accordance with applicable provisions of the Property Tax Code of the State of Texas as now or hereafter amended. SECTION 8.21 - Taxes, When Due and Payable: (Amended 4/9/84) All taxes due the City of Pearland shall be payable to the office of the city assessor -collector on receipt of the tax bill and shall be considered delinquent if not paid before February first of the year following the year in which imposed. The postponement of any delinquency date and the amount of penalty, interest and costs to be imposed on delinquent taxes shall be in accordance with applicable ordinances of the City of Pearland and the Property Tax Code of the State of Texas. SECTION 8.22 - Tax Liens (Amended 5/19/2014): (a) Except for such restrictions imposed by law, the tax levied by the City is hereby declared to be a lien, charge, or encumbrance upon the property upon which the tax is due, which lien, charge or encumbrance the City is entitled to enforce and foreclose in any court having jurisdiction over the same, and the lien, charge or encumbrance on the property in favor of the City, for the amount of taxes due on such property is such as to give the state courts jurisdiction to enforce and foreclose said lien on the property on which the tax is due, not only as against any resident of this state or person whose residence is unknown, but also as against nonresidents. All taxes upon real estate shall especially be a lien and a charge upon the property upon which the taxes are due, which lien may be foreclosed in any court having jurisdiction. The City's tax lien shall exist from January first in each year until the taxes are paid, and limitations as to seizures and suits for collection of taxes shall be as prescribed by state law. (b) Except for such exemptions and restrictions imposed by law, all persons, associations, corporations, firms and partnerships owning or holding personal property or real property in the City of Pearland on January first of each year shall be liable for City taxes levied thereon for each year. The tangible personal property of all persons, associations, corporations, firms or partnerships owing any taxes to the City of Pearland is hereby made liable for all said taxes, whether the same be due upon personal or real property or upon both. (c) All seizure and foreclosure proceedings shall be commenced no later than three (3) years after taxes first become delinquent. SECTION 8.23 - Tax Remission and Discounts: (Amended 4/9/1984! Except as provided by state law, neither the City Council nor any other official of the City shall ever extend the time for payment of taxes nor remit, discount or compromise any tax legally due the City, nor waive the penalty, interest and costs that may be due thereon to or for any person, association, firm or partnership owing taxes to the City for such year or years. 215 SECTION 8.24 - Issuance of Bonds (Amended 4/9/1984): The City of Pearland shall have the power to issue bonds and levy a tax to support the issue of permanent improvements and all other lawful purposes. (a) General Obligation Bonds - The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited by the Constitution and laws of the State of Texas and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued. (b) Revenue Bonds - The City shall have the power to borrow money for the purpose of construction, purchasing, improving, extending or repairing of public utilities, recreational facilities or any other self-liquidating municipal function not prohibited by the Constitution and laws of the State of Texas and to issue revenue bonds to evidence the obligation created thereby, and to issue refunding bonds to refund outstanding revenue bonds of the City previously issued. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued. (c) Sale of Bonds - No bonds (other than refunding bonds issued to refund and in exchange of previously issued outstanding bonds) issued by the City shall be sold for less than par value accrued interest. All bonds of the City having been issued or sold in accordance with the terms of this section and having been delivered to the purchasers thereof shall thereafter be incontestable and all bonds issued to refund and in exchange of outstanding bonds previously issued shall, after said exchange, be incontestable. 216 ORDINANCE NO.1505 An Ordinance adopting a tax rate of $0.7121 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 2014. 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 the Year Two Thousand Thirteen upon all property, real, personal, and mixed within the corporate limits of said City subject to taxation, a tax of $0.7121 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 $0.2221 on each $100 valuation of property, and (2) For the Interest and Sinking Fund, the sum of $0.4900. 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 217 ORDINANCE NO.1505 apportioned by this ordinance are hereby made payable to the General Fund of the City. PASSED and APPROVED ON FIRST READING this the 22nd day of September, A.D., 2014. ATTEST: Y NG LO G, T Y SEC -� TARY 's),""Yk7 TOM REID MAYOR PASSED and APPROVED ON SECOND and FINAL READING this the 29th day of September, A. D., 2014. ATTEST: YNG L1 F , T SE,4' ETARY APPROVED AS TO FORM: 44,........_,- n , c r I ' D RIN M. COKER CITY ATTORNEY _____Ri., 4 TOM REID MAYOR 218 ORDINANCE NO.1506 An appropriation ordinance adopting a revised budget for the fiscal year ending September 30, 2014 and adopting a budget for the fiscal year beginning October 1, 2014, and ending September 30, 2015, and pay plans for fiscal year 2015. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's estimated 2013-2014 Budget and proposed 2014-2015 Budget, attached hereto as Exhibit "A" and Exhibit "B", 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. The City Council hereby adopts a revised budget for the current fiscal year ending September 30, 2014 consisting of certain appropriations, more specifically identified on Exhibit "A" attached hereto. Section 3. That City Council hereby appropriates certain sums, more specifically identified on Exhibit "B" attached hereto, for the proposed fiscal year 2014- 2015 Budget. Section 4. 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 5. That the City Council deems the Pay Plans (Exhibit "C") and Organizational Plan contained in the 2014-2015 Budget to be in the best interest of the City and is hereby adopted. Section 6. That this ordinance shall become effective from and after its passage on second and final reading. 219 ORDINANCE NO.1506 PASSED and APPROVED ON FIRST READING this the 22ND day of September, A. D., 2014. �oi's., ial TOM REID MAYOR ATTEST: �`(QRq,V Lp ��. .moo:' • YJ NG Y SEETARY Me PASSED and APPROVED ON SECOND and FINAL READING this the 29th day of September, A. D., 2014. ATTEST: UNG �� ING TY S •► ' ETAR APPROVED AS TO FORM: (a,t11 . a___ DARRIN M. COKER CITY ATTORNEY , ,)0„C -R. Li TOM REID MAYOR ''''/, ; 111 „`````�� 220 CO 0 Z a) C • X • w D d Ca a a 0 c > • co CC - co m a o X G N W «> V co N L a, d CD U - EXPENDITURES REVENUES a) a C Ca t 0 V • N m O • > N Cu C) co O V CU V CD ▪ o C? 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U cn O 2 U ✓ C 0 C a) wj u 0 d Debt Service -General Solid Waste C 7 LL (a a) a) C c[ a) c Ea. «6 Cn E 'O O C (a -o a) c E O > a) 0 a co LL 2 C 0 `) a.p o 0 l O O oo)) 2 CU E O a) 0 a a) 7 7 C 7- "- o E— c c .� > o o a) o c o m TS m o a cn 0 0 2 2 ca _ w t 0 8 0 v> rn Ca ❑ a) C a a O w o o 0 N O Zr.) 7 Cn E (6 OR ` Y a C .Z"_..,-._>' co (C �"O F- Q C 0 C4 N O Ln ` as 9" v 0 Cn °6 a) E 'U CD C > > CD `3 . a) Y Y a) a) a)� ) C E > > 'E a. - 0 0 co 20 c0 c0 &5i raa a i- 5aa. tics L) DDm a) U C C6 C U) U- a) =' U = U C C to C V CO LOCO 0 CO h CO CO M M U) CO in CO h 0) U) O N r O U) in N M Cl) r r N Cl) M V V V V V U) CD CO 0 r V '7 V CO C) LL C O 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0,- r r r r 0 0 Sub -Total Operations 221 cD O O N- COW CD V d) n Cr) M M N N to CO t4.1/ N O O O I- O CO O to h CO O CO N- tCD ~D CO O N- O) CO to V CO_ O) N- CO CO O) N M N O' N CC) N co n CO CO co co co CO CO. CO CO O U) N- COCO to N O CD to EXHIBIT A 17 CO G) a O EXPENDITURES REVENUES -o N > O y N cc 4? C) O N Q CO N O V CO N ‘Zr 0.),-O Co U) CO D) CO CO t! i O CO CO N N- V C) CO C) O) CO O n h CO d' O O O to O) OD O) N N- Co W N- N- O O) N CO N CD �! O O) V O) CO N- N LO N O CO CO CO CD O C CO N• O Co .- CO O O to co CO CO 6) N d' (fl N N to N h N CO — CD M N CO Cr) M CO 1- CV - 411L) N- V' CD O .0' O CO N CO N to N 0 CO CON N M N CO O O a' ti ti to C CO Cr) N V ID COO V N U) N L6 N `- N CO CA 00 CON MO CO N- _Oo 0 0 to00 O CO olU N- ^ 0 LO CO N CCD CO .v- O O 7 LO CO O CO- CO. W Q) r N to c.1 ti .- N Qu M U) (ClCEO N. . O O r O O of L 0 CO N CO N N M N- CO 0 N N o O CD N Fund # Fund Description CON O) O co h M O O O to N- co to co o O N- OO) d' N f` CVID N r- O a0 •dam' O T1' O V• cs5 GC s -O co N Ti- 7 ci s--- c5 to Cr)NU) L.O r CO v 0 00 N C M CO CO u4 CCOO N CO two O M CD 0 O O- CO CO M' M N ' to V O O CD N sr' ce co co LoL6 c5 O O) V O co co co co CO N M V CD N to N M M) N N Co a O 2 C7 0 CL ~ TO 11 W •- C W a0 0 a_ 0) E O cc 0 a) N 3 a) _J C) co O 'C H U o a m =mrn 0 Du)°) 0 O N En O .00 0 C 0 Q m N O :t74 CD CD 0 0 0 C) (6 C N N N N N CQ O) 0 x0000 a) a co co c;) o) m m v) to CC o N N CD N N 0) N UUi a t!1 3 a, -o •a •o •o ,o •o •o •o O— °sg c.) a_ a. as a aa.a c N '' CO CO CO CO Co RS CO N F. < o. a 'a 'a 'a 'a 'a a I -ca °) m co co co ca co co co = O s -- >.e 00000000 UJ) H Nv0 CD 0 O 0 0 OM CO 0 CDO0 p 00 0 0 0 O O O N N N N Ordinance No. 1506 Exhibit "B" EXHIBIT B City of Pearland Fiscal Year 2014-2015 Adopted Budget Fund Fund Description OPERATIONS - 010 General 015 P E.DC. 020 Debt Service -General Special Revenue Funds 017 Municipal Court Security 018 Citywide Donation • 019 Court Technology 023 Court Juvenile Management 033 Street Assessment 035 Traffic Impact Improvement 043 Regional Detention 045 Hotel/Motel 046 Parks Donations 047 Park & Recreation Development 049 Tree Trust 055 Sidewalk 060 Police State Seizure 062 Federal Police 101 Grant 111 Community Development 140 University of Houston 141 University of Houston Capital Renewal Fund 145 Municipal Channel Internal Service Fund 095 Property/Liability Insurance 099 Medical Self -Insurance Proprietary Funds 030 Water and Sewer 031 Solid Waste SUB TOTAL - OPERATIONS CAPITAL IMPROVEMENT PROGRAM (CIP)- Water/Sewer Capital Proiects Funds 042 Utility Impact Fee 044 Shadow Creek Impact Fee 064 Certificates of Obligation 1998 067 1999 W & S Revenue Bonds 301 Water/Sewer Pay As You Go 302 MUD 4 Capital Program Capital Protects Funds 050 Capital Projects 068 Capital Projects -CO 2001 070 Capital Projects Mobility CO 2001 200 Capital Projects -CO 2006 201 Capital Projects -CO 2007 202 Capital Projects -GO Series 2007A 203 Capital Projects -GO Series 2009 SUB TOTAL - CIP GRAND TOTAL: REVENUES 2015 Adopted $ 63,692,881 $ 9,415,766 $ 29,869,444 $ 57,208 $ $ 23,250 $ $ 65,510 $ $ 38,322 $ $ - $ $ 1,800 $ $ - $ $ 1,393,078 $ $ 81,140 $ $ 51,100 $ $ 45 $ $ 5,240 $ $ 20,100 $ $ 15 $ $ 262,297 $ $ 313,794 $ $ 339,955 $ $ 8,376 $ $ 270,500 $ $ 1,390,375 $ $ 6,821,888 $ $ 35,583,118 $ $ 6,616,649 $ $ 156,321,851 $ $ 4,760,368 $ $ 556,186 $ $ - $ $ 2,705,415 $ $ 224,500 $ $ - $ 3,835,500 $ 10,928,569 $ - $ - $ 37,965,612 $ $ 60,976,150 $ $ 217,298,001 $ $ EXPENDITURES 2015 Adopted 67,520,359 14,708,556 29,749,859 99,497 22,000 66,665 44,229 91 819,213 80,000 118,532 69,100 67,224 54,100 276,959 313,794 339,915 83,700 1,374,360 6,821,888 37,017,108 6,603,258 166,250,407 3,438,770 623,018 2,949, 746 424,947 22,431 3,884,372 10,956,770 75,841 805 296 37,568,948 60,750,139 227,000,546 223 Ordinance No. 1506 Exhibit "C" Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly City Manager, City Attorney and Municipal Court Judge Department Heads Deputy City Attorney Assistant Police Chief Vice President - EDC Assistant City Attorney Assistant Director, Finance Capital Projects, Assistant Director Fire Marshal / EMC City Planner Determined By City Council Determined by City Manager 72 $84,949 $40.8408 $106,186 $51.0510 $127,423 $61.2612 71 $82,877 $39.8447 $103,596 $49.8058 $124,315 $59.7670 70 $80,856 $38.8729 $101,069 $48.5911 $121,283 $58.3093 69 $78,883 $37.9247 $98,604 $47.4059 $118,325 $56.8871 68 $76,959 $36.9997 $96,199 $46.2497 $115,439 $55.4996 67 $75,082 $36.0973 $93,853 $45.1216 $112,624 $54.1460 66 $73,251 $35.2169 $91,564 $44.0211 $109,877 $52.8253 65 $71,465 $34.3579 $89,331 $42.9474 $107,197 $51.5369 64 $69,721 $33.5199 $87,152 $41.8999 $104,582 $50.2799 64 64 64 Assistant City Engineer 63 $68,021 $32.7024 $85,026 $40.8780 $102,031 $49.0536 Assistant Director, Public Works 63 62 $66,362 $31.9048 $82,952 $39.8810 $99,543 $47.8571 Assistant Director, Parks & Recreation 61 $64,743 $31.1266 $80,929 $38.9083 $97,115 $46.6899 Redevelopment Manager 61 Budget Officer Building Official Director, Marketing (EDC) Manager, Information Technology Facilities Manager Purchasing Officer 60 $63,164 $30.3674 $78,955 $37.9593 $94,746 $45.5511 60 60 60 60 60 59 $61,624 $29.6267 $77,030 $37.0334 $92,435 $44.4401 Associate City Attorney 58 $60,121 $28.9041 $75,151 $36.1302 $90,181 $43.3562 Planner, Senior 58 Project Manager 57 $58,654 $28.1992 $73,318 $35.2490 $87,981 $42.2987 Municipal Court Prosecutor 57 224 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Accounting Supervisor Manager, Fleet Manager, GIS Municipal Court Administrator Manager, Animal Control Manager, Water Billing & Collection Manager, Sales and Event (CVB) 56 $57,224 $27.5114 $71,530 $34.3892 $85,836 $41.2671 56 55 $55,828 $26.8404 $69,785 $33.5505 $83,742 $40.2606 55 55 55 55 Network Administrator 54 $54,466 $26.1857 $68,083 $32.7322 $81,699 $39.2786 System Administrator 54 Superintendent, Parks Dev. & Operations 54 Superintendent, Recreation 54 Superintendent, Streets & Drainage 54 Superintendent, Treatment Plant 54 Superintendent, ROW 54 Superintendent, Water & Sewer 54 Manager, Acquisition Planner, Associate Budget Analyst Management Assistant Crime Analyst Grants Coordinator Manager, Traffic Sales and Event Manager (CVB) Deputy Fire Marshal Jail Division Supervisor Police Support Services Supervisor Staff Accountant Construction Inspector, Chief 53 $53,138 $25.5471 $66,422 $31.9338 $79,707 $38.3206 52 $51,842 $24.9240 $64,802 $31.1549 $77,763 $37.3859 52 52 52 52 52 51 $50,577 $24.3161 $63,222 $30.3951 $75,866 $36.4741 50 $49,344 $23.7230 $61,680 $29.6537 $74,016 $35.5845 50 50 50 49 $48,140 $23.1444 $60,175 $28.9305 $72,210 $34.7166 Emergency Management Planner 48 $46,966 $22.5799 $58,708 $28.2248 $70,449 $33.8698 Fire Inspector/Investigator 48 Health & Environmental Services Supervisor 48 Manager, Resource Development 48 Planner 48 Marketing Manager (CVB) 48 Deputy City Secretary Executive Assistant 47 47 $45,821 $22.0291 $57,276 $27.5364 $68,731 $33.0437 Water Billing & Collection Asst. Manager 46 $44,703 $21.4918 $55,879 $26.8648 $67,055 $32.2378 HR Generalist 46 Plans Examiner 46 Building Inspector Police Telecommunications Coordinator 45 45 $43,613 $20.9677 $54,516 $26.2096 $65,419 $314515 225 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Aquatics Supervisor Recreation Center Supervisor Recreation Program Coordinator Senior Center Supervisor Special Events Coordinator Communications Specialist Building Maintenance Supervisor Park Supervisor Construction Inspector Engineering Technician Maintenance Supervisor Treatment Plant Supervisor Crime Victim Liaison Multimedia Specialist 44 $42,549 $20.4562 $53,186 $25.5703 $63,823 $30.6844 44 44 44 44 44 44 44 44 44 44 44 44 44 Computer Support Technician, Senior 43 $41,511 $19.9573 $51,889 $24.9466 $62,267 $29.9360 Project Coordinator 43 Vol Fire Recruit/Retention Coordinator 43 Buyer 42 $40,499 $19.4706 $50,623 $24.3382 $60,748 $29.2058 Chief Mechanic 42 Safety Officer 42 Therapeutic Recreation Specialist 42 GIS Specialist 41 $39,511 $18.9957 $49,389 $23.7446 $59,266 $28.4935 Telecommunications Operator, Lead 41 Lead Jailer 41 Urban Forester 41 Accounts Payable Supervisor 40 $38,547 $18.5324 $48,184 $23.1654 $57,821 $27.7985 Code Enforcement/Health Officer, Senior 40 Legal Secretary 40 Office Supervisor 40 Customer Service Supervisor 40 Volunteer Coordinator 40 Electrician 39 $37,607 $18.0803 $47,009 $22.6004 $56,411 $27.1205 GIS Technician 38 $36,690 $17.6394 $45,862 $22.0492 $55,035 $26.4590 Planning Technician 38 Maintenance Crew Leader 38 Utility Maintenance Technician, Senior 38 Treatment Plant Operator II 38 Program Specialist 38 Recreation Program Coordinator, Assistant 38 Recreation Specialist 38 Utility Field Service Technician, Lead 38 Videographer / Editor 38 226 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Code Enforcement / Health Officer Crime Victim Specialist Jailer Telecommunications Operator Administrative Assistant Building Maintenance Technician Traffic Signal Technician HR Assistant 37 $35,795 $17.2091 $44,744 $21.5114 $53,692 $25.8137 37 37 37 36 $34,922 $16.7894 $43,652 $20.9867 $52,383 $25.1841 36 36 35 $34,070 $163799 $42,588 $20.4749 $51,105 $24.5698 Park Maintenance Crew Leader 35 Payroll Technician Computer Support Technician Recycling Center Supervisor Treatment Plant Operator I Utility Maintenance Technician CCTV Technician Pre -Treatment Technician Property Room Technician 34 $33,239 $15.9804 $41,549 $19.9755 $49,859 $23.9706 34 34 34 34 34 34 33 $32,428 $15.5906 $40,536 $19.4883 $48,643 $23.3859 Custodial Crew Leader 32 $31,638 $15.2104 $39,547 $19.0130 $47,456 $22.8155 Mechanic 32 Records and Information Coordinator 32 Traffic Signal Technician, Trainee 32 Humane Officer, Senior 31 $30,866 $14.8394 $38,582 $18.5492 $46,299 $22.2591 Accounts Payable Clerk GPS Specialist Heavy Equipment Operator Water & Sewer Equipment Operator Plans Expediter Police Records Clerk, Lead Utility Billing Specialist Animal Shelter Supervisor Deputy Court Clerk, Senior ROW Inspector GPS Field Technician Humane Officer Office Assistant, Senior Court Bailiff 30 $30,113 $14.4774 $37,641 $18.0968 $45,170 $21.7162 30 30 30 30 30 30 29 $29,379 $14.1243 $36,723 $17.6554 $44,068 $21.1865 29 29 29 29 28 $28,662 $13.7798 $35,828 $17.2248 $42,993 $20.6698 27 $27,963 $13.4437 $34,954 $16.8047 $41,944 $20.1656 Utility Field Service Technician 27 227 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Equipment Operator 26 $27,281 513.1158 $34,101 $16.3948 $40,921 $19.6738 Fleet Services Assistant 26 Records and Information Coordinator, Ass't 26 Recycling Center Specialist 26 Senior Center Shuttle Bus Driver 26 Utility Maintenance Worker 26 Deputy Court Clerk Customer Service Representative Permit Clerk Police Records Clerk Sign Technician Building Maintenance Worker Office Assistant Park Maintenance Worker Receptionist Humane Officer, Trainee Custodian Animal Shelter Attendant Water Safety Instructor Camp Coordinator 15 14 $20,285 $9.7524 $25,356 512.1905 $30,427 $14.6285 13 $19,790 $9.5145 $24,738 $11.8931 $29,685 $14.2718 12 $19,307 59.2824 $24,134 $11.6031 $28,961 $13.9237 Head Lifeguard 11 $18,837 $9.0560 $23,546 $11.3201 $28,255 $13.5841 Recycling Center Attendant 10 $18,377 $8.8352 $22,971 $11.0440 $27,566 513.2527 Lifeguard W/WSI 9 $17,929 $8.6197 $22,411 510.7746 $26,893 $12.9295 8 $17,492 $8.4094 $21,865 $10.5118 $26,237 $12.6142 25 $26,616 $12.7960 $33,269 515.9949 $39,923 519.1939 24 525,966 512.4839 $32,458 515.6048 $38,950 $18.7258 24 24 24 23 $25,333 $12.1794 $31,666 515.2242 $38,000 $18.2691 22 524,715 $11.8823 $30,894 514.8529 $37,073 $17.8235 22 22 22 21 $24,112 $11.5925 $30,140 $14.4906 $36,169 $17.3887 20 $23,524 $11.3098 $29,405 514.1372 $35,286 516.9646 19 522,951 $11.0339 $28,688 $13.7924 $34,426 $16.5509 18 $22,391 510.7648 $27,988 513.4560 $33,586 $16.1472 17 $21,845 510.5022 $27,306 $13.1278 $32,767 $15.7533 16 $21,312 510.2461 $26,640 512.8076 $31,968 515.3691 15 $20,792 $9.9962 $25,990 $12.4952 $31,188 514.9943 Ballfield Attendant Fitness Attendant Lifeguard Camp Counselor Recreation Attendant 7 $17,065 $8.2043 $21,331 $10.2554 $25,598 $12.3065 7 7 7 7 228 CITY OF PEARLAND POLICE PAY PLAN e ID U d - d 0 O N CD CO M N N 69 41 CO Co n m , v N C9 6 N O CO lli CO w 69 ID CD N 0 01 0 rn o v d N N N VI 41 CA Vi N CO CO o Lri LO 0e m 63 N U, co N o of U N 07 N 69 11 N U, N m N N N N Ntei 69 69 N U, LO N 0 00 0 LO a 03 ID N N a eN 69 N h Mi CO 0 N O Ui v Oco N V. rsi <9 U, N O N N N co N V' N N N U, Education / Incentive Pay -6 L L L L 0 .Ec t _`c t iii c..) a) a) Q O) co N. vi a O N to 00 ° Lc o (fl 69 EA Efl L N O 0 W w w U uJ « F- ) f6 u F- < a) ao Uw -02 c a LL Q m o W P. U c 0 cf°) � < 0 1_ LT 0 o o f , OW W w mtcu co).O LL' ~U Q '§ -0 a) a) w0❑ W oQ E U U al 2 0) 2D < W tv WQ a) N (nLI> 'B E r v) Q ❑ Q a) v, mzQco W W W W c c a) o (n U) W U) O c ,� 0 0 0 0 v as 0 45 J J J J c 2 Q N F- H F- F- c s T c a) , E 2 E a) > o o O W W 0 0 0 w CL W T J Q' 0r La) Q O O a) t U W o W ❑ 2 F"O� o c • co U WW N r O = � 0 0 0 `) Q m N m m .O V- 0 •C O -o .E 0 O N 9 C f_`co a) (6 (4 O N CL a) -O O a fl U c . i a s t 4- O N LE 0 0'o a) = a) _ Q) E 0 p o c9 No_ Q ai -o c m E.O o -o .0 W _� U > . 7 Q) al O 3 »_ •N 'E a O N a) -a a m >, ca CO U 0 O co a "O m " .O •o -C .aN 7 O 'D w C y . a) O C flZ �U w-__ u1 co a) N N• L co E .o c4 v v) ( a. C N 41 -> N (6 i M a) c a) O c a) ,-- E ate)v 2-•. `m a) o a) L a > U U CO t O Q coc2 U < a) O U 229 CITY OF PEARLAND FIRE PAY PLAN FY 2015 Fire Certified Personnel (48/96) Salary Range Job Title Rank MINIMUM 2756 annual hours Annual Hourly MIDPOINT 2756 annual hours Annual Hourly MAXIMUM 2756 annual hours Annual Hourly F-1 Firefighter Firefighter $45,000 $16.3280 $56,250 $20.4100 $67,500 $24.4920 F 2 Driver/Operator Field Training Officer Driver/Operator 2nd Lieutenant $49,672 $18.0231 $62,089 $22.5288 $74,507 $27.0346 F-3 Lieutenant Lieutenant $54,828 $19.8940 $68,535 $24.8676 $82,242 $29.8411 F-4 Captain Captain $62,000 $22.4964 $77,500 $28.1205 $93,000 $33.7446 F-5 Battalion Chief Battalion Chief $70,000 $25.3991 $87,500 $31.7489 $105.000 $38.0987 Hourly rate or regular rate of pay based on 2756 Regular Hours (although scheduled for 2920 in total.) Non -Fire Certified Personnel (48/96) Salary Range Job Title Rank MINIMUM 2080 annual hours Annual Hourly MIDPOINT 2080 annual hours Annual Hourly MAXIMUM 2080 annual Annual hours Hourly $15.7197 E-1 EMT EMT $21,798 $10.4798 $27,248 $13.0998 $32,697 E-3 EMT -Intermediate EMT -Intermediate $24,918 $11.9798 $31,148 $14.9748 $37,377 $17.9697 E-5 Paramedic Paramedic $30,534 $14.6798 $38,168 $18.3498 $45,801 $22.0197 E-7 EMS Lieutenant 2nd Lieutenant $33,696 $16.2000 $42,120 $20.2500 $50,544 $24.3000 E-9 EMS Captain Captain $39,247 $18.8688 $49,059 $23.5859 $58,871 $28.3031 Hourly rate or regular rate of pay based on 2080 Regular Hours (although scheduled for 2920 in total.) Note As the last employee in each "E" salary range is assigned to fire fighting duties or leaves the City the range will no longer exist. Uniformed Administrative Personnel (40 hour work week) Salary Range Job Title Rank MINIMUM 2080 annual hours Annual Hourly MIDPOINT 2080 annual hours Annual Hourly MAXIMUM 2080 annual hours Annual Hourly F-6 EMS Training Captain Logistics Captain Clinical Manager Captain $62,000 $29.8077 $77,500 $37.2596 $93,000 $44.7115 F-7 Training Battalion Chief Battalion Chief $70,000 $33.6538 $87,500 $42.0673 $105,000 $50.4808 Hourly rate or regular rate of pay based on 2080 Regular Hours. 230 FUND/DIVISION CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET NEW PERSONNEL FUNDED TITLE APPENDIX B FULL-TIME PART-TIME GENERAL FUND - 010 Information Systems Police Patrol Police Patrol Police Investigations Health/Code Enforcement Permits & Inspections Parks Maintenance WATER & SEWER FUND - 030 Wastewater Treatment Plants OTHER FUNDS Municipal Court Convention/Visitors' Bureau *Funded for 9 months Chief Information Officer* Sergeant Officers Crime Analyst* Housing Enforcement and Rehabilitiation Officer Permit Clerk Parks Maintenance Worker Sub -Total General Fund Utility Inspector Sub -Total Water & Sewer Fund Bailiff Receptionist GRAND TOTAL 1 2 4 1 1 9 1 0 1 0 1 2 3 10 3 231 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED DEPARTMENT DESCRIPTION Human Resources LEAD Program Library West Side Library Expansion Buildout Reimbursement Modular Conference Table and Chairs - Tom Reid Library Information Systems Chief Information Officer - 9 months ERP* Update MS Office for 28 desktop computers 4 Dispatch Computers 5 replacement Desktops 3 replacement Laptops Update MS Office for 41 Laptop Computers 19 Replacement Police Panasonic Toughbooks Public Safety IT Systems Equipment Replacement Edge Router Replacement Network Management System Hardware *Funded via Lease/Purchase ($1,187,000) Finance Citizen Survey Transfer out Transfer for FS#2 FFE (cash vs bonds) Police 2 Patrol Sergeants and 1 Vehicle 4 Patrol Officers - 8 months and 1 Vehicle Crime Analyst Civilian - 9 months Replacement Body Armor (vests) - 51 Normal Replacement Citizens' Police Academy Van Normal Replacement Jail Vehicle - Van Normal Replacement CID Vehicles - 2 Normal Replacement Patrol Vehicles - 9 Replacement Ballistic Helmets - SWAT - 14 Replacement Handheld Radars - 5 Gas Mask Replacements - 20 Animal Control Replacement Vehicle TL 128 **************EXPENDITURES************** NON - REVENUES RECURRING RECURRING TOTAL 20,000 20,000 100,000 20,000 20,000 5,700 5,700 100,000 106,178 9,240 7,200 6,750 6,600 13,530 98,800 5,700 7,900 1,472,090 75,000 5,541 5,293 5,700 114,078 1,472,090 9,240 7,200 6,750 6,600 13,530 98,800 75,000 5,541 5,293 248,298 1,565,824 1,814,122 18,000 18,000 18,000 18,000 100,000 100,000 209,259 424,518 53,142 20,818 57,030 526,212 100,000 100,000 81,588 174,846 6,650 14,663 27,128 15,000 15,970 8,080 290,847 599,364 59,792 14,663 27,128 20,818 57,030 526,212 15,000 15,970 8,080 1,290,979 343,925 1,634,904 48,025 48,025 48,025 48,025 232 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED DEPARTMENT DESCRIPTION Fire Overtime Savings -Hiring of 3 F -T Firefighters for backfill FFE not included in CIP - Stn 3 FFE not included in CIP - Stn 2 Remount Ambulance Replacement for U-132 Tahoe Fire Training Tower Structural Repairs Health & Environmental Housing Enforcement and Rehabilitation Officer funded by CDBG (grant) Communications Year Round Intern Community Development Admin Iron Mountain Intern Scanner Plotter (Lease 36 Months) Inspections Permit Clerk Scanner Planning Plan Review Service (in lieu of new hire) Fleet Maintenance Brake Lathe - replacement Gas Heaters - replacement Mig Welder - replacement ROW - Right -of -Way Maintenance/Mowing Landscaping, SH35, FM518 + ROWs & Medians Streets & Drainage Replace Dump Truck Pneumatic Roller & Recycler Rental **************EXPENDITURES************** NON - REVENUES RECURRING RECURRING TOTAL (67,395) 50,945 29,945 29,945 83,100 50,000 (67,395) 29,945 29,945 83,100 50,945 50,000 (16,450) 192,990 176,540 71,055 80,219 230 80,449 71,055 80,219 230 80,449 10,321 10,321 10,321 10,321 5,720 7,400 20,000 20,000 5,720 8,524 8,524 7,400 13,120 28,524 41,644 38,537 3,050 41,587 7,285 7,285 38,537 10,335 48,872 50,000 50,000 50,000 50,000 6,000 9,000 3,500 6,000 9,000 3,500 18,500 18,500 95,333 95,333 95,333 95,333 101,509 101,509 134,516 134,516 134,516 101,509 236,025 233 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED DEPARTMENT DESCRIPTION Service Center Overhead safety lights/city vehicle logos Traffic Intersection Flashing Left Turn Arrow Program (yr 1 of 3 yr program) Span Wire Rebuild School Zone Flasher System (yr 3 of 3 yr program) Parks & Recreation Knapp (Senior) Center Membership Fees Veterans' (PISD) Sports Fields increase in fee rates Shadow Creek Sportsplex O&M - 2 mos New Recreation Software Weight Room Floor Replacement Centennial Park O&M - 4 months Replacement Hazardous Waste Lockers Facilities Maintenance/Custodial Services Replacement Vehicle C208 - Ford Transit Connect Van Replacement Vehicle C225 - Ford Transit Connect Van Diesel Exhaust Removal System - Stn 1 Thermal Imager (for breaker panels) Man Lift with Trailer A/C for Fire Bldg. EMS Medical Storage Replacement A/C Parks Crew Leader Bldg. Fire Marshal Outbuilding Repairs (evidence/explosives) TOTAL GENERAL FUND **************EXPENDITURES************** NON - REVENUES RECURRING RECURRING TOTAL 30,000 30,000 30,000 30,000 138,186 192,000 38,760 138,186 192,000 38,760 12,500 3,000 61,490 30,735 39,921 368,946 368,946 45,350 106,840 30,735 34,047 34,047 39,921 4,000 4,000 15,500 132,146 83,397 215,543 20,430 20,430 19,533 8,000 24,000 7,919 1,600 8,000 20,430 20,430 19,533 8,000 24,000 7,919 1,600 8,000 109,912 109,912 $186,555 $2,125,044 $2,997,792 $5,122,836 234 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET WATER AND SEWER FUND SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED DEPARTMENT DESCRIPTION Public Works W/S Admin Customer Service Clerk reclassification Utility Inspector cell phone (new position) Lift Stations Auto Dialer Alarm System (44) Automatic Priming Centrifugal Pump (1) - new Portable Generator 8000 watt (1) - new Utility Trailer (1) - replace 12ft with 16 ft Flygt Pump (3) Portable Flow Meter (1) New Portable Welding Machine (1) Lift Station Rehab Mowing Equipment - replacement EXPENSES NON - REVENUES RECURRING RECURRING TOTAL 2,696 2,696 660 199 859 3,356 11,000 500,000 199 3,555 220,000 231,000 40,000 40,000 3,800 3,800 8,000 8,000 23,000 23,000 9,000 9,000 4,000 4,000 500,000 5,000 5,000 312,800 823,800 Wastewater Treatment Utility Inspector w/Vehicle (grease traps & Pre-treatment) Lab Equipment Influent Samplers (3) Chlorine Analyzers (2) Sludge dewatering/hauling (Far Northwest WWTP) 511,000 57,274 22,510 19,495 27,000 34,000 525,000 628,005 685,279 79,784 19,495 27,000 34,000 525,000 57,274 Water Production Ford F250 4x4 Extended Cab - replacement 30,080 30,080 Replace 2 Electrical Gates & 3 Walk through Gates 29,076 29,076 35 Water Sampling Stations 29,000 29,000 Ford F150 - replacement 24,300 24,300 25 Auto Flushers - (yr 2 of 3yr program) 107,400 107,400 Interior Lining of GST's & EST's & HPT's Program (yr 2 of 3 yr program) 400,000 400,000 Pigging of Water Lines (South East) 300,000 300,000 10 Semi Tough Books 28,000 28,000 Analyze and Improve SCADA System 100,000 100,000 Painting of Exterior Piping at Water Facilities 59,000 59,000 UCMR 3 (Unregulated Contaminants Monitoring Rule) 12,000 12,000 466,380 652,476 1,118,856 Water & Sewer Distribution 2 Ford F350 Replacements with F450's Vactor Truck* Romac Quick Valve Insertion Machine (1) Model DC 100M Pump on Trailer 120,470 459,026 65,422 42,072 120,470 459,026 65,422 42,072 Water & Sewer Construction Ford 350 4x4 - replacement Trio -vision, Light Activated Pole Camera & TV System TopCon X62 2D Laser Excavator System Trail King TK40LP Trailer (2) - new 120,470 566,520 686,990 40,935 11,099 45,770 58,332 40,935 11,099 45,770 58,332 235 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET WATER AND SEWER FUND SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED DEPARTMENT DESCRIPTION Longwood Street Manhole Rehab Utilty Billing & Collection Assistant Manager - UB Customer Service upgrade Utility Billing Customer Service Supervisor upgrade Wireless Read System (Backbone only) Other Requirements Rate Model Update & Training ERP - Prorata share to W/S, yr 1 (replacement) EXPENSES NON - REVENUES RECURRING RECURRING TOTAL 159,600 159,600 40,935 8,382 7,497 36,765 52,644 274,801 315,736 268,025 268,025 320,669 8,382 7,497 304,790 7,100 7,100 802,797 802,797 809,897 809,897 TOTAL WATER AND SEWER FUND 1,252,059 3,512,723 4,764,782 *funded via lease -purchase 236 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET OTHER FUNDING SOURCES SUPPLEMENTAL AND CAPITAL REQUESTS FUNDED NON - DEPARTMENT DESCRIPTION RECURRING RECURRING TOTAL Court Security Fund PT Bailiff 16,249 City -Wide Donation Fund Gear Storage Lockers - Fire/EMS Rehab Refrigerator for Station - Fire/EMS Two Motolights for Police Motorcycles Laptop Computer for Animal Control Humane Officer Hotel/Motel Fund / Convention & Visitors' Bureau 2 Part-time Receptionist Positions - Weekend Coverage Park Development Fund Signage at Shadow Creek Trail 2 Pet Water Fountains at Southdown Park Centennial Park (contribution toward construction) Tree Trust Fund Shadow Creek Ranch Park Trees Woodchipper 2,200 18,449 2,200 18,449 16,249 15,800 15,800 2,450 2,450 1,550 1,550 2,200 2,200 22,000 22,000 9,880 9,880 9,880 9,880 9,552 9,552 8,980 8,980 100,000 100,000 118,532 118,532 31,100 31,100 38,000 38,000 69,100 69,100 Police State Seizure Fund Dog Kennel & Vehicle Cage (pending receipt of dog grant) 3,300 3,300 3,300 3,300 JAG GRANT Gang Tracking Software for OSSI Motolights for 2 Motorcycles Crash Reconstruction Equipment 6,620 6,620 1,550 1,550 2,619 2,619 10,789 10,789 TOTAL OTHER FUNDING SOURCES 26,129 225,921 252,050 237 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS NOT FUNDED DEPARTMENT DESCRIPTION Human Resources Risk Manager, w/Vehicle HR Assistant HR Dedicated Server Compass Benefit Services LEAD Program (2 employees) City Secretary Desktop Scanners (requested 2, 1 is funded) Language Services Professional Consultant Legal Professional Development Travel Information Technology Business Analyst Customer Service Supervisor 28 Replacement Desktop Computers 41 Replacement Laptop Computers IT Policy Development/Disaster Recovery Plan Finance Police **************EXPENDITURES************** NON- RECURRING RECURRING TOTAL 82,670 52,527 37,200 30,215 5,650 5,050 10,000 112,885 58,177 5,050 37,200 10,000 172,397 50,915 223,312 500 1,910 1,910 500 500 1,910 2,410 1,000 1,000 4,000 4,000 5,000 5,000 72,399 72,399 28,560 41,470 2,200 2,200 50,000 74,599 74,599 28,560 41,470 50,000 214,828 54,400 269,228 Intern - Performance Management - 12 months Maintenance - Performance Management Reporting Tool 15,000 1 Vehicle for new Sergeant 12 Police Officers and 5 Vehicles 1 Patrol Lieutenant and 1 Vehicle Assistant Police Chief and 1 Vehicle CID (Investigations) Equipment for 2 Officers Business Manager Crime Analyst Civilian - 3 months (9 months funded) Increase Police Officer TCOLE Certification Pay Increase Telecommunication TCOLE Certificate Pay Police Officer Education Increase Bilingual Incentive Pay CID (Detective/Investigations) Assignment Pay Home Fleet Expansion, Officers with 5+ years - 8 Fleet Management Module for OSSI 19,569 19,569 10,000 25,000 29,569 44,569 15,000 5,776 835,940 123,272 150,576 4,400 78,558 16,937 77,550 15,995 38,775 40,180 42,677 86,200 1,440 54,399 361,364 67,027 47,511 6,620 4,600 6,650 467,744 9,560 60,175 1,197, 304 190,299 198,087 11,020 83,158 23,587 77,550 15,995 38,775 40,180 42,677 553,944 11,000 238 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS NOT FUNDED DEPARTMENT DESCRIPTION Evidence (BEAST) Interface for OSSI Bang Box for Type 3 Explosives Storage - 21 Mobile Command Post Cases for Tourniquets - 150 Rifle Suppressors - 18 Remington 870 Shotguns - 4 Single Communication Headsets - 14 Clip -on Night Vision - 2 Night Vision Equipment - 4 Animal Control Fire Needs Assessment/Feasibility Study - Animal Control 3 Lieutenants - Stn 2 - 6 months 4/1/15 3 Driver/Operators - Stn 2 - 5 months 5/1/15 3 Firefighter/Para. - Stn 2 - 4 months 6/1/15 EMS Training for 15 Firefighters $22,625 ea. 5 ALS Medical Bags for Fire Apparatus 5 Cardiac Monitors for Fire Apparatus Replacement for U-141 Tahoe New Brush Truck 6 Physical Ability Test Validation Simulation 4 CMC Rescue/Retrieval Kits Action Training Videos 2 Smoke Generators - Training Replacement Card Reader for Gate at Admin. Bldg. Replacement Key Pads at Stns 4 & 5 Fire Marshal/Emergency Management Full-time Fire Inspector/Investigator Deputy Emergency Management Coordinator Health & Environmental Health Code Enforcement Officer w/vehicle & misc. Communications Communications Specialist **************EXPENDITURES************** NON- RECURRING RECURRING TOTAL 880 6,600 7,480 5,250 5,250 4,000 116,591 120,591 5,850 5,850 12,600 12,600 1,960 1,960 12,040 12,040 19,950 19,950 52,000 52,000 1,517,380 1,203,917 2,721,297 9,500 9,500 132,558 104,091 78,039 9,500 9,500 16,722 16,722 14,862 339,375 12,871 174,072 52,915 165,000 18,300 6,000 10,725 8,360 6,743 27,710 149,280 120,813 92,901 339,375 12,871 174,072 52,915 165,000 18,300 6,000 10,725 8,360 6,743 27,710 72,170 49,112 121,282 81,369 40,210 121,579 153,539 89,322 242,861 54,308 24,255 78,563 54,308 24,255 78,563 39,110 2,250 41,360 239 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS NOT FUNDED DEPARTMENT DESCRIPTION **************EXPENDITURES************** NON- RECURRING RECURRING TOTAL Community Development Admin Office Assistant 39,133 Consultant: UDC (codify changes of Comp Plan) Hyperlink UDC (electronic version to website) Studies - Multi -Family analysis and others identified by Comp Plan Team Building Computers Inspections Planning Permit Clerk 4,050 200,000 50,000 50,000 8,000 2,850 43,183 200,000 50,000 50,000 8,000 2,850 39,133 314,900 354,033 38,537 3,050 41,587 38,537 3,050 41,587 Planner (funded via contractual, in lieu of adding position) 63,783 2,400 66,183 Streets & Drainage Engineering Traffic Capital Projects Replace Ford F-350 Crew Cab Truck Replace Dump Truck Pneumatic Tire Roller - new Asphalt Reclaimer/Stabilizer - new Street Panel Replacement Sidewalk Rehabilitation Street Pavement Rehabilitation Asphalt Distributor (Oil Truck) - new Trailer (30ft) - new Water Distributor Truck - new Ditch Cleaning Civil Engineer Pavement Marking (Thermo Flex) Training & Travel 63,783 2,400 66,183 48,955 101,509 92,505 370,399 2,200,000 1,100,000 1,000,000 180,830 34,089 113,137 72,900 48,955 101,509 92,505 370,399 2,200,000 1,100,000 1,000,000 180,830 34,089 113,137 72,900 48,955 5,265,369 5,314,324 78,494 6,200 84,694 78,494 6,200 84,694 25,000 25,000 25,000 25,000 1,657 1,657 1,657 1,657 240 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET GENERAL FUND SUPPLEMENTAL AND CAPITAL REQUESTS NOT FUNDED DEPARTMENT DESCRIPTION Parks & Recreation Master Plan Update Phase II Assistant Recreation Program Coordinator 2 Forestry Workers and 2 Vehicles Trail Connectivity O&M - 9 months Volunteer Recognition & Appreciation Awards 2 Occupancy Counters Recreation Software Transition to Cloud Replace SCR Trail Signage Renovate Recycling Center Office Shade Structure for Natatorium Patio Parade Float Rental for Council Members Healthy Communities Project Replacement 72" Zero Turn Mower - MR 119 Replacement 15' Power Driven Mower Deck MD114 Replacement 6' Power Driven Mower Deck MD111 Facilities Maintenance/Custodial Services Overhead Door Service Contract $10,000 already in base) City Facilities Window Cleaning Fire Admin. Bldg. Custodian Repair/Replace Fire Marshal Outbuilding Canopy Station 4 Kitchen Upgrade Fire Admin Bldg. Smoke Alarm System Fire Training Field Gates Intercom/Radio & Speakers in Fire Admin Bldg. TOTAL GENERAL FUND **************EXP EN D I T U RES************** S************** NON- RECURRING RECURRING TOTAL 54,505 85,904 3,215 4,000 58,000 2,400 58,160 5,920 3,215 11,500 11,500 37,106 37,106 448 448 2,010 2,010 12,300 12,300 4,000 30,000 30,000 9,950 14,500 4,000 58,000 56,905 144,064 147,624 246,294 359,548 5,855 24,000 39,706 25,355 32,429 6,886 15,000 20,003 5,855 24,000 39,706 25,355 32,429 6,886 15,000 20,003 69,561 99,673 169,234 2,825,483 7,865,187 10,656,299 241 CITY OF PEARLAND FISCAL YEAR 2015 ADOPTED BUDGET WATER AND SEWER FUND SUPPLEMENTAL AND CAPITAL REQUESTS NOT FUNDED DEPARTMENT DESCRIPTION Public Works W/S Admin Heavy Equipment Operator cell phone Vactor Truck Maintenance Worker cell phone Water & Sewer Distribution Employees for Vactor Truck Jet Eye Television Conversion for Vactor Truck (1) TOTAL WATER AND SEWER FUND EXPENSES NON - REVENUES RECURRING RECURRING TOTAL 396 396 396 396 792 792 84,692 900 85,592 64,200 64,200 65,100 149,792 84,692 84,692 65,100 149,792 242 Appendix C About the City of Pearland Where Town and Country Meet The City of Pearland, Texas was incorporated in December 1959 and adopted a Home Rule Charter on February 6, 1971, and is a home -rule City operating under a Council -Manager form of government. Policy -making and legislative authority are vested in a governing Council consisting of the mayor and five other members. The Mayor and each Council member are elected at -large, and the Mayor and all other Council members hold office for a period of three years. Council members are limited to two full consecutive terms of office, and there is no limitation on the office of the Mayor. The City Manager is appointed by Council and is responsible for implementation of Council policy, execution of the laws and all day-to-day operations of the City. A full range of municipal services is provided by the City of Pearland, including public safety (police, fire and emergency medical services), animal control, solid waste, traffic operations, water and wastewater utilities, public improvements, repair and maintenance of infrastructure, recreational and community activities, general administrative services, and two library locations through a cooperative effort of the City of Pearland and the County of Brazoria. Pearland is ranked the 5th safest city in Texas. Medical Center Re€€ant Stadium To Brezosport Petrochemical Complex Port of Houston Hoy AitpW To Galveston Located across the northern end of Brazoria County, and T E X A sharing a common border with Houston, Texas to the north, Pearland is the fastest growing City in Brazoria County. From 2000 to 2010, Pearland's population increased by 142.4%, from 37,640 to 91,252, compared to a national increase of 9.7%. According to US News, the City of Pearland is currently the 7th fastest growing city in Texas and the 15th fastest growing city in the country. The total area of the City is 72.68 square miles, 48.39 within City limits, and 24.29 in the Extra -Territorial Jurisdiction (ETJ). Pearland's location, coupled with its expressed goals of long-term planned growth, is propelling the City's rapid economic growth and development, from $6.3 million property valuation in 2010 to $7.6 million in 2015, a 21% increase. According to the American Community Survey of 2013 (U.S. Census Bureau), on average, home ownership in the City of Pearland increased by 80.9% from 2008 to 2012, 17% above the state average. Johnson Space Center (NASA) 120,000 100,000 80,000 60,000 40,000 20,000 City of Pearland Population 1990 1995 2000 2005 2010 2015 Sources: 1990-2010 U.S. Census Bureau 2014-2015 City of Pearland Planning Dept. 243 Demographic Composition The median age in Pearland is 34.1, which is roughly on par with that of the State of Texas and the Nation as a whole. The percent of Pearland's citizens aged 65 and over is lower than both the State and Nation. Population by Age Group Age Group Pearland Texas Nation Under 5 years, percent, 2010 9.1% 7.7% 6.3% Under 18 years, percent, 2010 29.5% 27.3% 26.2% 65 years and over, percent, 2010 7.7% 10.3% 14.1% Source: 2013 American Community Survey — U.S. Census Bureau Median Household Income According to the US Census Bureau, Pearland's Median Household Income (MHI) is $89,149. A total of 18,712, or 60% of households, earn $75,000 or more; compared to an average of 33% Statewide. Home values have grown along with household incomes in Pearland. The estimated median home value is $179,000, which is up from $114,100 in 2000. Pearland Income & Benefits (2012 Inflation Adjusted Dollars) 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% i 111 Less than $10,000 - $15,000 - $25,000 - $35,000 - $50,000 - $75,000 - $100,000 - $150,000 - $200,000 - $10,000 $14,999 $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 more ■Texas ■ Pea rland Source: US Census Bureau 244 Pearland Occupations Pearland residents serve in a variety of occupations. The majority serve in management, business, science, and arts occupations. Sales and office jobs make up 21% of the occupations held by Pearland citizens in the workforce. More than one-half of the 55,385 employed Pearland citizens are in management, science, business, and arts occupations. The graph below shows Pearland occupations by type. 29,568 Management and Professional 11,681 5,488 5,053 3,595 Sales & Office Production and Service Construction and Transportation Occupations Maintenance Source: 2013 American Community Survey— U.S. Census Bureau Pearland Businesses Industrial characteristics of the City of Pearland include companies that perform non -retail business operations typically associated with manufacturing, trade, machinery and chemical companies, allied product merchants, and mineral exploration. Manufacturing and fabricated metal producers total 91 employer establishments with 2,462 and 1,065 paid employees, respectively. They produce a value of sales, shipments, receipts, or revenue totaling $449,994,000 in business. The commercial characteristics of Pearland's private sector involve a total of 181 retail trade businesses, and include automobile dealers, motor vehicle parts retailers, furniture stores, electronics and appliance merchants, home centers, grocery stores, health and personal care merchants, restaurants, food and beverage stores, gasoline stations, sporting goods stores, used product merchants, miscellaneous vendors, and motion picture or sound recording entertainment businesses. Realty offices, telecommunications vendors, and private providers of medical services and emergency care wrap up the mix of Pearland's commercial characteristics. Two hospitals and medical centers were added to the City's health care services. The Pearland Economic Development Corporation (P.E.D.C., a non-profit Type B Corporation) has played a central role in the development of the City, providing incentives to new professional businesses, industry and development, as well as retaining those located in the City. The P.E.D.C. focuses on business attraction, retention, transportation and infrastructure, urban center development, attractive and welcoming corridors and City beautification. TOP TEN EMPLOYERS IN PEARLAND Overall Largest Employers Manufacturing and Distribution Pearland Independent School District Kemlon Wal-Mart Stores, Inc. Packaging Service Company Home Depot TurboCare City of Pearland BrederoShaw Target ProFax Kemlon Aggreko Packaging Service Company Texas Honing HEB Third Coast Terminals Lowe's Weatherford Dillards Rollac Shutters Source: U.S. Census Bureau, 2007 Economic Census, 2007 Economic Census of Island Areas, and 2007 Non -employer Statistics 245 City of Pearland Source: US Census Bureau Commute Times Pearland is located approximately 10 minutes south of the City of Houston and many local residents commute to and from Houston daily. Pearland has a slightly higher commute time, compared to the State and Nation. State of Texas Education Levels U.S. Pearland remains above average when it comes to education. 29% of Pearland residents over the age of 25 possess a Bachelor's degree or higher; compared to 26% across the State of Texas and 28% nationally. Only 6% of Pearland residents at least 25 years of age have not earned a high school diploma compared to 14% nationally and over 20% across the State of Texas. Pearland Educational Attainment High school graduate (includes equivalency)___ 19% 9th to 12th grade, no diploma 4% irssissiba Less than 9th grade 2% Graduate or_ professional degree 17% Some college, no degree 20% Associate's degree 9% Bachelor's degree 29% Source: 2013 American Community Survey — U.S. Census Bureau Pearland schools consistently rate among the best in the metro Houston region, including schools from both Pearland ISD and Alvin ISD. The latest counts put total enrollment at Pearland ISD over 20,000 and growing. In additional to exceptional academics, Pearland schools offer an array of exceptional athletics and extracurricular activities for students. 246 Statewide Comparison City Demographics for Benchmarki nq Dallas -Fort Worth MSA Houston MSA No MSA o ` U IL = 3 J a Y o K a a fn U J m d f a O L L 3 City Size (square miles) 36.30 61.80 36.40 62.21 28.56 48.39 32.38 51.29 35.45 34.11 53.86 41.95 72.14 Population Density 3,490 2,213 2,777 2,388 3,658 2,068 2,590 1,774 2,127 3,220 1,861 2,639 1,454 POPULATION (US CENSUS) 2013 Estimate 126,700 136,791 101,074 148,559 104,475 100,065 83,860 90,983 75,418 109,821 100,223 110,720 104,898 % Change (10-13) 6.4% 16.9% 6.1% 13.3% 5.3% 9.7% 6.4% 8.9% 5.0% 9.9% 3.4% 10.8% 0.3% 2010 Census 119,097 116,989 95,290 131,117 99,223 91,252 78,817 83,560 71,802 99,887 96,900 99,940 104,554 % Change (00-101 8.4% 246.0% 22.7% 140.5% 8.2% 99.8% 20.0% 83.6% 9.9% 62.5% 14.3% 9.7% 0.4% 2000 Census 109.839 33,808 77,642 54,518 91,718 45,681 65,697 45,517 65,332 61,484 84,749 91,075 104,117 DEMOGRAPHICS (2010 Census) Senior Citizens (x>65) 8.0% 5.4% 6.5% 7.0% 12.6% 7.7% 10.4% 7.3% 10.1% 5.4% 14.4% 10.8% 12.4% Juveniles (x<18) 26.0% 33.3% 25.7% 32.0% 23.2% 29.5% 24.6% 28.5% 29.2% 31.1% 24.3% 28.2% 22.7% Foreign Born Persons 25.0% 14.3% 21.5% 12.9% 22.6% 16.0%IMMI 33.8% 9.8% 17.6% 12.8% 11.9% 11.8% 8.2% Language Other Than English Spoken at Home 38.3% 19.6% 32.9% 20.3% 31.6% 26.1% 43.1% 17.1% 38.9% 25.4% 20.8% 39.5% 14.9% Race -- White 63.6% 75.0% 65.3% 74.8% 67.1% 62.0% 52.0% 79.5% 62.9% 70.8% 60.5% 75.4% 73.2% Race -- African American 8.4% 8.1% 11.2% 10.5% 8.6% 16.4% 7.4% 7.1% 15.5% 9.8% 24.8% 5.7% 12.7% Race -- Asian 13.4% 10.0% 7.8% 4.1% 15.1% 12.4% 35.3% 5.4% 1.5% 5.2% 1.9% 1.1% 2.4% Race --Hispanic* 30.0% 12.1% 29.2% 18.6% 16.0% 20.5% 10.6% 17.3% 43.4% 29.0% 21.2% 50.6% 18.9% HOUSING AND EDUCATION (2010 Census / 2012 American Community Survey) ' 7 IN - Homeownership Rate 64.1% 77.5% 45.6% 71.7% 61.9% 80.9% 81.0% 76.1% 62.1% 58.7% 54.0% 62.2% 59.9% Persons Per Household 2.78 2.95 2.57 2.96 2.59 2.91 3.06 2.73 2.96 2.89 2.48 2.68 2.45 Median Household Income $ 69,592 $ 108,428 $ 57,278 $ 81,894 $ 68,806 $ 89,149 $ 107,149 $ 88,289 $ 48,782 $ 69,998 $ 42,729 $ 51,251 $ 44,390 Median Home Value $ 167,300 $ 249,000 $ 151,400 $ 186,400 $ 183,500 $ 179,000 $ 253,700 $ 176,300 $ 97,400 $ 168,100 $ 126,600 $ 97,900 $ 91,300 % Below Poverty Rate 8.6% 4.5% 10.5% 9.2% 11.0% 4.6% 4.4% 4.7% 19.3% 8.4% 20.1% 14.9% 15.6% % of Housing Stock Built After 1980 68.1% 96.4% 79.9% 87.9% 42.3% 82.1% 81.3% 83.8% 41.5% 86.7% 40.5% 30.1% 30.8% Housing Units in Multi -unit Structures (2008- 2012) 31.9% 14.1% 47.7% 20.6% 32.3 % 14.1% 9.9% 17.8% 30.2% 30.1 % 32.2% 25.9% 23.8% Bachelor's De.ree or Hi. her 36.2% 58.3% 29.4% 46.1% 49.7% 45.4% 53.8% 42.1% 14.3% 37.0% 29.5% 16.1% 21.4% EMPLOYMENT BREAKDOWN BY INDUSTRY (2012 AMERICAN COMMUNITY SURVEY) Mean Travel Time to Work (min) 24 27.8 25.4 28.3 23.6 30 28.5 28.9 23.7 23.9 18.7 17.8 14.7 Agriculture, forestry, fishing and hunting, and mining 0.7% 1.0% 1.0% 0.7% 0.5% 2.5% 5.2% 1.5% 1.1% 0.7% 3.0% 11.6% 2.0% Construction 5.6% 3.4% 6.1% 5.1% 5.5% 4.6% 4.4% 7.1% 15.6% 5.7% 5.3% 7.4% 5.2% Manufacturing 12.5% 9.0% 9.8% 9.9% 10.1% 10.1% 9.4% 15.0% 14.8% 12.3% 8.1% 8.4% 8.9% Wholesale trade 4.4% 3.1% 4.0% 3.0% 2.4% 3.9% 3.7% 2.8% 3.3% 4.0% 3.0% 4.5% 2.8% Retail trade 12.8% 12.0% 12.7% 13.8% 10.7% 9.9% 11.5% 9.5% 12.1% 13.0% 13.4% 10.9% 13.6% Transportation and warehousing, and utilities 4.9% 3.5% 6.5% 3.0% 2.6% 4.4% 3.9% 6.3% 6.3% 3.3% 2.6% 5.2% 3.8% Information 3.4% 4.5% 2.3% 3.8% 4.1% 1.9% 1.8% 1.0% 1.1% 2.6% 2.4% 1.8% 2.0% Finance and insurance, and real estate and rental and leasing 10.6% 14.6% 8.6% 10.6% 10.9% 5.6% 8.1% 6.3% 3.2% 7.0% 4.8% 5.5% 4.9% Professional, scientific, and management, and administrative and waste management services 13.7% 17.6% 13.4% 13.5% 16.9% 13.0% 18.5% 11.6% 8.8% 14.4% 9.4% 6.5% 7.5% Educational services, and health care and social assistance 15.9% 17.3% 18.1% 21.9% 18.6% 28.9% 21.6% 25.1% 18.8% 19.4% 28.4% 19.5% 25.3% Arts, entertainment, and recreation, and accommodation and food services 7.6% 7.1% 10.4% 7.2% 10.4% 5.9% 5.8% 5.3% 7.4% 7.7% 10.3% 10.3% 10.2% Other services. except public administration 5.6% 4.3% 4.8% 4.6% 5.1% 4.3% 4.2% 3.8% 5.4% 4.1% 5.7% 5.3% 6.7% Public administration 2.2% 2.6% 2.3% 3.0% 2.6% 5.0% 1.9% 4.7% 2.0% 5.8% 3.6% 3.2% 7.1% FINANCIAL CHARACTERISTICS (VARIOUS) In Tax Backed Rating (Moody's) Aa2 Aa1 Aa2 Aa1 Aaa Aa2 Aa1 Aa2 N/A Aa1 Aa2 Aa2 Al Credit Rating of Last GO Issuance (S&P) AAA AA AA+ AA+ AAA AA- AAA AA N/A AA+ AAA AA AA Total Net Position (2013 CAFR: in thousands) 468,649 982,269 583,277 729,026 187,863 645,196 596,355 361,040 N/A 1,116,679 460,418 188,048 387,040 Sales Tax Revenue 25,446,798 29,158,661 27,451,139 20,364,000 26,600,000 23,600,000 39,790,000 12,645,222 N/A 66,216,000 40,582,134 31,807,000 22,062,000 Sales Tax Revenue Per Resident 201 213 272 137 255 236 474 139 N/A 603 405 287 210 * "Hispanic" may be of any race, so also are included in applicable race categories Prepared & Maintained by: John McCarter, Administration Last Updated: 11/11/2014 Legend: Highest Numerical Value Lowest Numerical Value 247 Points of Interest First known as Mark Belt, the town site was platted in 1894 and named Pearland because of the abundance of pear orchards in the vicinity. Settlement of this area began as a result of railroad development through north Brazoria County in 1882. An advertising campaign featuring favorable farm conditions brought many settlers to the area in the 1890s. The City has a number of relatively quaint, yet historically significant points of interest. Old Settlers' Cemetery is one of notable significance. Gravestone styles range from simple stone markers to tombstones featuring elaborately carved decorations. Old Settlers' Cemetery remained the primary community burial ground until 1936. It continues to serve as a reminder of Pearland's early history. The In 1900 the Santa Fe Railroad built a depot in Pearland. Locally produced cotton, hay, cattle, fruit and vegetables were shipped to market from the depot. In 1972, the depot closed and was donated to the City. It is now located next to the City Hall. Located in the Pearland Town Center shopping center, the Pearland Convention & Visitors' Bureau promotes the City's hotels, cultural activities, and amenities available in Pearland. Our hotels, in close proximity to Houston, Galveston, and numerous beaches, provide the impetus for Pearland to attract more interest and visitation from a travel and tourism perspective. The successful youth sports leagues of Pearland attract athletes from outside the City. 1 ,1 Il Er Santa Fe RaiJ ay Station Depot From a modern perspective, the City has grown tremendously and has a vibrant compendium of public facilities designed to serve its growing population in a variety of ways. General government, community services, public safety, parks and recreation, and fire safety are deployed from locations throughout the City. The City has one central public safety facility designated to house and deploy police services, 6 fire stations, two full -service library facilities, City Hall, the Pearland Recreation Center & Natatorium, and a number of community and neighborhood parks. The following maps show the police districts and school zones within the City. For a map of the City Parks, please refer to the Special Revenues Section, Park Development. 248 MCHARD RD 1 FM 2234 5 Savannah Lakes Elementary Rosharon, TX 77583 14226 Almede School Rd Houston, TX 77047 lr �R Ma�RnrkaMareg4,amata .. EUb e�iu' e'er )15ooshTx Cree, Pearland, TX 77589 Nolan Ryan Junior k Pkwy �Lri �'= i� I e tllla�3� r� e, Kingsley Dr J g P e' Ingana Wilddeer Elementary nd, TX Glenn York Elementary 2720 Kingsley Dr Pearland, TX 776. 50 Broadway P erland, TX RR584 Don deter Elementary Manue2955 l �x RDi578B 101 Pam Desert Dr Man.el, TX RR5R8 2900 CR 69 Manvel, TX 77578 Challenger Elementary Peed na hTX LnaR584 Rd C Mitchell Element, Gulfdale,Ran TON TOLLWAY/BE I1 v Pearland, H Txde��i Barbara Glenda Dawson High School 2050 Cullen Blvd Pearland TX RI581 Rogers Middle SchoolPearland, IX 77584 3121 Manvel Carleston Elementary 3010 Harkey Rd z5aa�an�aaso ry 003 Southwyek Pkwy Pearland, TX RR584 Berry Miller Junior 'Ugh Manvel Rd Pearland, TX 77584 Mesas ah Elementary Pearland, TX 77589 3500 McHard Rd Leon Sahlatura Middle School yearland Jr. Ave �`West 2337 N ° R581 I,Avite Yahoo, lll�Pearland, '1'77581 Pearland Jr. High South 9719 Bailey Rd Pearland, TX 77589 Pearland, Tx 77581 Alexander Middle School 3001 Old Myna Rd ',Arland, TX 77581 Sheryl Seamy Ninth Grade Center 3775 S Main St Pearland, TX 77581 Robert Turner High School 1717 Bailey Rd MooreElementary 8880 S uthblufi Houston, TX 77089 l 1'1" Inrcl How, TX RB089 Dr Dixie Myoue dde zdas South Belt Elementary 1.1 Riverstone Ranch. Houston. TX 77089 a14 Schneider Dr Pearland, TX 77581 06 Shadybend Dr Pearland, TX 77581 Q Higher Education Q Pasadena ISO - Friendswond ISO Q Pearland ETJ Q Alvin ISO Q Pearland ISD 0 Houston ISD Q Clear Qeek ISD O 01000 ISO - Pasadena ISD Q Fort Bend ISO - Clear Creek ISO 0 Pearland ISD Q Houston ISD 0 Fort Bend ISO O Pearland City Limits Pearland gSchool 75 S Main St Pearland, TX 77581 PASADENA ISD Thompson1309 SaIntermediate x no n Stubery Elementary 0Hughes Rd H1 Robert Bane rt,I=ElTXRR08 CLEAR CREEK ISO Weber Elementary 11955 Blackhawk Houson, TX RB 89 1 in =1 miles CC:' . i.0 A- r i 1 'Ii I -�-_: t-0.1 trill(' • .�- i 'I II I L — MANVEL I — it , i !I - Tam Bass Regional Park Curonia.rar:Zeir�� I,___I_I I -.,. I- -. / i { _jJ r. -1...;"1.4, f § i NJ r CITY OF PEARLAND Police Districts =IA 4 L..�T Pearland City Limits B E Pearland ETJ C G5 We, x unrrxer'413: r...i 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 reflecting amounts due from private persons or organizations for goods and services furnished by a government. ACCOUNTING SYSTEM — The total set of records and procedures, which are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL ACCOUNTING — A basis of accounting in which revenues are recognized in the period in which they are earned and become measurable, and expenses are recognized in the period incurred instead of when cash is actually received or spent. ACCRUED INTEREST — Interest that has been earned and recorded, but has not been received. AD VALOREM TAX — A tax based on value of land and improvements (property tax). AGENDA — A formal listing of items to be discussed during a public meeting. Agendas for public meetings are posted 72 hours in advance, in compliance with the open meetings act. APPROPRIATION — An authorization granted by City Council to make expenditures and to incur obligations for a specific purpose. Usually limited in amount and as to the time when it may be expended. ARBITRAGE — With respect to the issuance of municipal securities, arbitrage usually refers to the difference between the interest paid on tax-exempt bonds and the interest earned by investing the proceeds of the bonds in higher -yielding taxable securities. Federal income tax laws generally restrict the ability to earn positive arbitrage in connection with tax-exempt bonds. ASSESSED VALUATION — A valuation set upon real estate or other property by government as a basis for levying taxes. ASSETS — Property owned by a government, which has economic value, especially which could be converted to cash. AUDIT — A standardized, systematic and independent examination of data, statements, records, operations and performances of an enterprise for the purpose of examining for compliance with standardized procedures for managing cash on hand, receipts, payments, investments, and other allocations of monetary resources, capital assets or the use of personnel time and expertise. BALANCE SHEET — A statement purporting to present the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. BALANCED BUDGET — Total recurring expenditures for any fiscal year shall not exceed total recurring revenues for that same fiscal year. BOND — A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. BOND REFERENDUM — A bond referendum is an opportunity for voters to decide if the city will be authorized to borrow funds to address specific capital project needs for which ad valorem taxes are pledged for repayment. 251 BUDGET — A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. The term is also sometimes used to denote the officially approved expenditure ceiling under which a government and its departments operate. BUDGET CALENDAR — The schedule of key dates or milestones, which a government follows in the preparation and adoption of the budget. BUDGET DOCUMENT — The instrument used by the budget making authority to present a comprehensive financial program to the appropriating governing body. BUDGET INSTRUCTIONS — The guidance document produced by the City's financial management unit, for use by departmentally -authorized personnel, establishing the annual practices and procedures for developing and submitting a proposed budget for approval by the City's governing body. BUDGET MESSAGE — A general discussion of the adopted budget presented in writing as a part of or supplement to the budget document. BUDGETARY CONTROL — The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within limitations of available appropriation and available revenues. BUILT ENVIRONMENT — Human -made (vs natural) improvements such as infrastructure, buildings, parks, etc. CAPITAL ASSETS — Long-term assets, such as buildings, equipment, and infrastructure, intended to be held or used in operations. CAPITAL PROJECTS —Acquisition or construction of major capital facilities. CAPITAL IMPROVEMENT PROGRAM — A plan for capital expenditures to be incurred each year over a fixed period of several future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount to be expended in each year, and the method of financing those expenditures. CAPITAL OUTLAY — Expenditures for the acquisition of capital assets. CAPITAL PROJECT FUNDS — Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds, special assessment funds and trust funds). CASH BASIS — A method of accounting in which revenues and expenses are recognized and recorded when received, not necessarily when earned. CERTIFICATE OF DEPOSIT — A negotiable or non-negotiable receipt for monies deposited in a bank or other financial institution for a specified period for a specified rate of interest. CERTIFICATE OF OBLIGATION — A debt instrument that is issued by the City and has the same legal status as a general obligation bond. Proceeds from the issuance of the certificates may be used for the construction of public works or payment of contractual obligations for professional services. These certificates do not require voter approval. CHARTER — Written instrument setting forth principles and laws of government within boundaries of the City. CHART OF ACCOUNTS — The classification system used by the City to organize the accounting for various funds. CHECK — A bill of exchange drawn on a bank and payable on demand. COMPONENT UNIT — A component unit is defined as a legally separate organization for which elected officials of the primary government (the City) are financially accountable. CONTINGENCY — Funds set aside in a reserve account for major expenditures or for emergencies. 252 CURRENT ASSETS — Cash and other assets expected to be converted to cash, sold, or consumed either in a year or in the operating cycle. CURRENT LIABILITIES — Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded within one year. DEBT SERVICE FUND — A fund used to account for the accumulation of resources for, and the payment of, general long-term debt principal interest, and related costs. Also called a Sinking Fund. DEFICIT — The excess of expenditures over revenues during an accounting period; or in the case of Enterprise and Intra-governmental Service Funds, the excess of expense over income during an accounting period. DEPARTMENT — A distinct, usually specialized division of a large organization. A principal administrative division of a government normally under the oversight of an Executive Director, Assistant City Manager or City Manager. DELINQUENT TAXES — Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. DEPRECIATION — A non -cash expense that reduces the value of an asset as a result of wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. DEVELOPER REIMBURSEMENT — Reimbursement to a developer from the City for infrastructure developed on behalf of the City. EFFECTIVE TAX RATE — The tax rate required to generate the same amount of revenue as in the preceding year on the same properties. ENTERPRISE FUND — A fund used to account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self-supporting by user charges. The significant characteristic of Enterprise Funds is that the accounting system must make it possible to show whether the activity is operated at a profit or loss, similar to comparable private enterprises. Thus, the reports of enterprise funds self- contained and creditors, legislators or the general public can evaluate the performance of the municipal enterprise on the same basis as they can the performance of investor -owner enterprises in the same industry. EXPENDITURES — Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. FIDUCIARY FUND — A fund used to account for assets held in trust by the City for the benefit of individuals or other entities and is responsible for handling the assets placed under its control. FISCAL YEAR — A twelve-month period of time to which the annual budget applies, and at the end of which, the City determines its financial position and results of operations. FIXED ASSETS — Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, and improvements other than buildings and 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. FUND — An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the purpose of carrying on specific activities or attaining certain objective. FUND BALANCE — The excess of an entity's assets over its liabilities. FUND BALANCE POLICY — A minimum fund balance that is required to be kept in reserve as defined in financial policy statements. Fund balances over the policy requirements may be appropriated in the budget. 253 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, that those bonds are general obligation bonds. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) — Uniform minimum standards and guidelines for financial accounting and reporting. GOVERNMENTAL FUNDS — Funds generally used to account for tax -supported activities. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects and Debt Service). GRANTS — A contribution by one government unit to another. The contribution is usually made to aid in the support of a specific function, purpose, activity or facility. IMPACT FEES — Fees charged to developers to cover in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development. INCOME — A term used in proprietary fund -type accounting to represent (1) revenues or (2) the excess of revenues over expenses. INFRASTRUCTURE - Fixed assets that are immovable and have value only to the governmental unit. Common examples of infrastructure include roads, sidewalks, bridges and streetlights. INTERGOVERNMENTAL REVENUE — Revenue received from another governmental unit for a specific purpose. INTERNAL SERVICE FUND — Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. ISO RATING — The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting up the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to each fire department, which is used in the development of insurance rates for all properties within the protected area. Grading starts at 1, which is the best possible score and ends at 10, which is considered unacceptable. LEASE/PURCHASE — A financing tool utilized to fund large capital outlays where the city may not have cash immediately available for purchase. This arrangement allows the city to use the item while payments are being made. LEDGER — A group of accounts in which are recorded the financial transactions of a governmental unit or other organization. LEVY - To impose taxes or special assessments. The total of taxes or special assessments imposed by a governmental unit. LIABILITIES — Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date. LONG-TERM DEBT — Debt with a maturity of more than one year after date of issuance. MODIFIED ACCRUAL BASIS — The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. 254 NOTE PAYABLE — An unconditional written promise signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time, either to the bearer or to the order of a person designated. OPERATING BUDGET — Plans of current expenditures and the proposed means of financing them. ORDINANCE — A formal legislative enactment by the governing body of a municipality. ORGANIZATIONAL UNIT — A responsibility center within a government. PERFORMANCE MEASURES - Specific quantitative measures of work performed within an activity or program. They may also measure results obtained through an activity or program. PROJECTION — A forecast of future trends in the operation of financial activities done through the remainder of the fiscal year to gain a better picture of the City's finances. The projections are adopted as the revised budget during the budget adoption process. PROPERTY INSURANCE FUND — Accounts for the activities of the city's property and casualty insurance. PROPERTY TAX — An annual or semi-annual tax paid to one or more governmental jurisdictions based on the real and personal property's assessed valuation and the tax rate, done in compliance with the State Property Tax Code. PROPRIETARY FUND — A governmental accounting fund having profit and loss aspects; therefore, it uses the accrual rather than modified accrual accounting method. The two types of proprietary funds are the Enterprise Fund and the Internal Service Fund. PURCHASE ORDER — A document issued to authorize a vendor or vendors to deliver specified merchandise or render a specified service for a stated estimated price. RATINGS — Designations used by credit rating agencies to give relative indications of credit quality. Municipal bonds rated Baa or BBB and above are considered to be investment -grade. REFUNDING BONDS — Bonds issued to retire bonds already outstanding. RESERVE — An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or not available for appropriation and subsequent spending. RETAINED EARNINGS — The accumulated earnings of an enterprise or internal service fund which have been retained in the fund and which are not reserved for any specific purpose. REVENUES — The term designates an increase to a fund's assets. An item of income. REVENUE BONDS — Bond whose principal and interest are payable exclusively from earnings of an enterprise fund. ROLLBACK RATE — If a unit adopts a tax rate that is higher than the rollback rate, voters in the unit can circulate a petition calling for an election to limit the size of the tax increase. SALARIES & WAGES — Fixed compensation paid to employees for work or services provided. SALES TAX — A state tax of 6.25% is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities and counties have the option of imposing additional local sales taxes for a combined total of state and local taxes of 8.25%. SHORT-TERM DEBT — Debt with a maturity of one year or less after the date of issuance. SPECIAL ASSESSMENT — Used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. SPECIAL REVENUE FUNDS - Fund is used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. 255 STRUCTURAL IMBALANCE — In the budgetary process of matching ongoing expenditures with ongoing revenues, a condition that occurs when expenditures exceed revenues. TAX LEVY — The total amount to be raised by general property taxes for intentions specified in the Tax Levy Ordinance. TAX LEVY ORDINANCE — An ordinance through which taxes are levied. TAX RATE — The rate at which a municipality may levy a tax. Tax levied for each $100 of assessed valuation. The amount of tax stated in terms of a unit of the tax base. TAX ROLL — The official list showing the amount of taxes levied against each taxpayer or property. TAXES — Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. 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 operating liquidity available to an organization or governmental entity. Net Working Capital is calculated as current assets minus current liabilities. YIELD — The rate earned on an investment based on the price paid for the investment, the interest earned during the period held and the selling price or redemption value of the investment. 256 ACRONYMS ACM - Assistant City Manager ADA — Americans with Disabilities Act of 1990 AFG — Assistance to Firefighters Grant AFIS — Automated Fingerprint Identification System AICP — American Institute of Certified Planners AISD — Alvin Independent School District ALPRS — Automatic License Plate Recognition System AO — Administrative Order APA — American Planning Association AVL — Automatic Vehicle Locator BCAD — Brazoria County Appraisal District BCDD4 & BDD4 — Brazoria County Drainage District #4 BCLS — Brazoria County Library System BCMUD— Brazoria County Municipal Utility District BJA — Bureau of Justice Assistance BVP — Bulletproof Vest Partnership BW 8 — Beltway 8 CAC — Community Action Center CAD — Computer -Aided Design CAFR — Comprehensive Annual Financial Report CAPER — Consolidated Annual Performance Evaluation Report CAPRA - Commission for Accreditation of Park and Recreation Agencies CBCMUD — Clear Brook City Municipal Utility District CDBG — Community Development Block Grant CH — City Hall CID — Criminal Investigation Division CIP — Capital Improvement Program CJD — Criminal Justice Division CMV — Commercial Motor Vehicle CO's — Certificates of Obligation and Certificates of Occupancy CPI — Consumer Price Index CR — County Road CVB — Convention and Visitors' Bureau CVE — Commercial Vehicle DAP — Development Authority of Pearland DCM — Deputy City Manager DHS — Department of Homeland Security DOE — Department of Energy or Department of Education DOT — Department of Transportation DPS — Department of Public Safety EDC — Economic Development Corporation EECBG — Energy Efficiency and Conservation Block Grant EFT— Electronic Funds Transfer EMPG — Emergency Management Program Grant EMS — Emergency Medical Services EMT — Emergency Medical Technician EOC — Emergency Operations Center EPA — Environmental Protection Agency ERP — Enterprise Resource Planning ETJ — Extra Territorial Jurisdiction FBCAD — Fort Bend Central Appraisal District FEMA — Federal Emergency Management Administration FM — Farm -to -Market Road FMLA— Family Medical Leave Act of 1993 257 FOIA — Freedom of Information Act of 1966 FT — Full -Time FTE — Full -Time Equivalent FTO — Field Training Officer (Police) FY — Fiscal Year GAAP — Generally Accepted Accounting Principals GASB — Governmental Accounting Standards Board GEC — General Engineering Consultant GFOA — Government Finance Officers Association of the United States and Canada GIS — Geographical Information Systems GO's — General Obligation Bonds GCWA — Gulf Coast Water Authority GPS — Global Positioning System HCAD — Harris County Appraisal District HGAC — Houston -Galveston Area Council HHW — Household Hazardous Waste HR — Human Resources HTE — Harward Technology Enterprise (The City's current ERP, by Sungard) HVAC — Heating, Venting & Air Conditioning ICMA — International City/County Management Association IFMA— International Facility Management Association &I — Inflow and Infiltration !SD — Independent School District ISO — Insurance Service Office IT — Information Technology ITS — Intelligent Traffic System JAG — Justice Assistance Grant JHEC — John Hargrove Environmental Complex KPB — Keep Pearland Beautiful LF — Linear Feet LS - Lift Station LTD — Limited LUCAS — Lund University Cardiac Arrest System M — Millions MDT — Mobile Data Terminal MGD — Million Gallons per Day MHI — Mitsubishi Heavy Industries MIUs — Mobile Information Units MRE — Meals Ready -To -Eat MSA— Metropolitan Statistical Area MUD — Municipal Utility District NCIC — National Crime Information Center OAG/OVAC — Office of Attorney General/Other Victim Assistance Grants OPEB — Other Post -Employment Benefits OTS — Old Town Site PER — Preliminary Engineering Report P&Z — Planning & Zoning PC - Personal Computer PD — Police Department PDM — Project Delivery Model PEDC — Pearland Economic Development Corporation PEG — Public, Educational and Government Channel (television) PFIA — Public Funds Investment Act PIM — Pearland In Motion (publication) PISD — Pearland Independent School District PM — Preventive Maintenance or Project Management 258 PS — Public Safety PTC — Pearland Town Center PSB — Public Safety Building RFP — Request for Proposal ROWs — Right of Ways S&P - Standard & Poor's SCADA - Supervisory Control and Data Acquisition SCR - Shadow Creek Ranch SEFA - Schedule of Expenditures of Federal Awards SETRAC - Southeast Texas Regional Advisory Council SH288 - State Highway 288 SIU - Special Investigations Unit SOP - Standard Operating Procedure SPA - Strategic Partnership Agreement S.P.O.R.T.S. - Southeastern Program of Recreation Team Sports SQ.FT. - Square Foot/Feet SRF - State Revolving Fund SRO - School Resource Officer SRTS - Safe Routes To School SWEC - South West Environmental Center TAAF — Texas Amateur Athletic Foundation TCEQ — Texas Commission on Environmental Quality TCIC — Texas Crime Information Center TCLEOSE — Texas Commission on Law Enforcement Officers Standards and Education TCO — Telecommunications Operator TDEM — Texas Division of Emergency Management TEEX — Texas A&M Engineering Extension Service TIA — Traffic Impact Analysis TIFMAS — Texas Intrastate Fire Mutual Aid System, Grant Assistance Program TIP — Transportation Improvement Plan TLETS — Texas Law Enforcement Telecommunications System TML — Texas Municipal League TMRS — Texas Municipal Retirement System TIRZ — Tax Increment Reinvestment Zone TxDOT — Texas Department of Transportation TWDB — Texas Water Development Board UDC — Unified Development Code UofH — University of Houston VoIP — Voice over Internet Protocol W&S — Water & Sewer WEC — Westside Events Center WL — Water Line WWM — Waste Water Management WWTP — Waste Water Treatment Plant ZBA — Zoning Board of Adjustment 259 THIS PAGE INTENTIONALLY BLANK T E X AS es r. I S9 Dt City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Phone: 281.652.1600 Email: cityofpearland@pearlandtx.gov pearlandtx.gov