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Ord. 1518 2015-09-21ORDINANCE NO.1518 An appropriation ordinance adopting a revised budget for the fiscal year ending September 30, 2015 and adopting a budget for the fiscal year beginning October 1, 2015, and ending September 30, 2016, and pay plans for fiscal year 2016. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's estimated 2014-2015 Budget and proposed 2015-2016 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, 2015 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 2015-2016 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 2015-2016 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.1518 PASSED and APPROVED ON FIRST READING this the 141" day of September, A. D., 2015. z� TOM REID MAYOR ATTEST: PASSED and APPROVED ON SECOND and FINAL READING this the 21st day of September, A. D., 2015. ATTEST: TOM REID MAYOR ORDINANCE NO.1518 APPROVED AS TO FORM: 04„,,___- 01-- DARRIN M. COKER CITY ATTORNEY Ordinance No. 1518 City of Pearland Fiscal Year 2015-2016 Adopted Budget REVENUES EXPENDITURES Fund Fund Descriotion 2016 Proposed 2016 Proposed OPERATIONS - 010 General $ 69,791,421 $ 73,272,942 015 P.E.D.C. 020 Debt Service -General $ 12,315,949 $ 12,192,688 $ 31,687,635 $ 31,528,207 Special Revenue Funda 017 Municipal Court Security $ 52,920 $ 114,350 018 Citywide Donation $ 20,350 $ 50,477 019 Court Technology $ 60,020 $ 69,865 023 Court Juvenile Management $ 37,060 $ 44,435 033 Street Assessment 035 Traffic Impact Improvement $ 3,000 $ 46,800 043 Regional Detention 045 Hotel/Motel $ 1,535,233 $ 927,604 046 Parks Donations $ 101,050 $ 105,636 047 Park & Recreation Development $ 103,000 $ 231,000 049 Tree Trust $ 8 055 Sidewalk $ 5,034 060 Police State Seizure $ 200 $ 36,320 062 Federal Police $ 55 $ 68,000 101 Grant $ 177,834 $ 177,834 113 Community Development $ 319,085 $ 319,085 140 University of Houston $ 319,260 $ 319,260 141 University of Houston Capital Renewal Fund $ 55,489 145 Municipal Channel $ 314,700 $ 214,350 199 Lower Kirby $ 2,764,300 $ 2,764,300 Internal Service Fund 095 Property/Liability Insurance 099 Medical Self -Insurance Proprietary Funds 030 Water and Sewer 031 Solid Waste SUB TOTAL - OPERATIONS $ 1,315,507 $ 1,311,977 $ 8,068,084 $ 7,871,876 $ 38,566,275 $ 38,422,759 $ 6,830,997 $ 6,831,464 $ 174,444,466 $ 176,921,229 CAPITAL IMPROVEMENT PROGRAM (CIP)- Water/Sewer CIP)- Water/Sewer Capital Proiects Funds 042 Utility Impact Fee $ 52,311,333 $ 40,020,852 044 Shadow Creek Impact Fee $ 890,270 $ 670,416 064 Certificates of Obligation 1998 067 1999 W & S Revenue Bonds $ 2,032,692 $ 2,748,875 301 Water/Sewer Pay As You Go $ 503,300 $ 1,268,700 302 MUD 4 Capital Program $ 1,000 $ 771,037 Capital Proiects Funds 050 Capital Projects $ 2,747,963 $ 2,790,968 068 Capital Projects -CO 2001 $ 17,955,062 $ 17,999,337 070 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 $ 58,913,301 $ 59,867,055 SUB TOTAL - CIP $ 135,354,921 $ 126,137,240 GRAND TOTAL: $ 309,799,387 $ 303,058,469 Exhibit A 8 EXHIBIT B Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly City Manager, City Attorney and Municipal Court Judge Determined by City Council Assistant City Manager, Deputy City Determined by City Manager Manager, and Department Heads Deputy City Attorney Assistant Police Chief Vice President - EDC Assistant City Attorney 72 586,650 $41.6584 5108,312 552.0730 $129,974 $62.4877 71 584,536 $40.6424 $105,670 550.8030 5126,804 560.9636 70 $82,474 539.6511 5103,093 549.5639 5123,711 559.4766 69 580,463 $38.6840 5100,578 $48.3550 $120,694 558.0260 68 578,500 537.7405 598,125 547.1756 $117,750 556.6107 67 576,586 536.8200 595,732 $46.0250 5114,878 555.2300 66 $74,718 535.9219 593,397 544.9024 $112,076 553.8829 City Secretary 65 $72,895 $35.0458 591,119 $43.8072 5109,343 552.5687 Deputy Fire Chief 65 Assistant Director, Finance 64 571,117 534.1910 $88,897 542.7388 5106,676 $51.2865 Capital Projects, Assistant Director 64 Fire Marshal / EMC 64 City Planner 64 Assistant City Engineer Assistant Director, Public Works Assistant Director, Parks & Recreation 63 569,383 533.3571 $86,728 $41.6964 5104,074 550.0356 63 62 567,690 $32.5435 584,613 $40.6794 5101,536 548.8153 61 566,039 531.7498 582,549 $39.6872 599,059 $47.6246 Budget Officer 60 564,429 530.9754 580,536 538.7192 596,643 546.4631 Building Official 60 Director, Marketing (EDC) 60 Manager, Information Technology 60 Manager, Facilities 60 Purchasing Officer 60 59 $62,857 $30.2199 $78,572 $37.7748 594,286 545.3298 Associate City Attorney 58 561,324 $29.4828 $76,655 536.8535 $91,986 544.2242 Planner, Senior 58 Assistant EMS Chief 58 Manager, Project 57 559,829 $28.7637 $74,786 535.9546 589,743 543.1456 Municipal Court Prosecutor 57 9 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Accounting Supervisor Manager, Animal Control Manager, GIS Municipal Court Administrator Manager, Communications Manager, Sales and Event (CVB) Manager, Water Billing & Collection 56 $58,369 $28.0622 $72,962 535.0777 $87,554 $42.0932 56 55 $56,946 $27.3777 571,182 534.2221 585,418 541.0666 55 55 55 55 Network Administrator 54 555,557 526.7100 $69,446 533.3875 $83,335 540.0650 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 Superintendent, Fleet 54 Manager, Acquisition 53 554,202 526.0585 567,752 532.5731 $81,303 $39.0878 Planner, Associate 52 552,880 525.4229 566,100 531.7787 579,320 538.1344 Budget Analyst 52 Management Assistant 52 Crime Analyst 52 Grants Coordinator 52 HR Generalist 52 Manager, Traffic 52 Manager, Sales and Event (CVB) 51 551,590 524.8029 $64,487 531.0036 $77,385 $37.2043 Deputy Fire Marshal 50 550,332 524.1979 562,915 530.2474 $75,497 536.2969 Jail Division Supervisor 50 Police Support Services Supervisor 50 Staff Accountant 50 Construction Inspector, Chief 49 549,104 $23.6077 561,380 529.5096 573,656 535.4116 Engineer, Associate 49 Emergency Management Planner 48 547,906 523.0319 559,883 528.7899 571,860 534.5479 Fire Inspector/Investigator 48 Health & Environmental Services Supervisor 48 Manager, Resource Development 48 Manager, Recreation Center & Natatorium 48 Planner 48 Manager, Marketing (CVB) 48 Deputy City Secretary 47 546,738 $22.4702 558,422 528.0877 570,107 $33.7053 Executive Assistant 47 Manager, Recreation Center and Natatorium 47 Water Billing & Collection Asst. Manager 46 545,598 521.9221 556,997 527.4026 568,397 $32.8832 Plans Examiner 46 10 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Building lnspector Police Telecommunications Coordinator Humane Officer, Senior 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 Pre -Treatment Coordinator Crime Victim Liaison Multimedia Specialist 45 $44,486 $21.3874 555,607 526.7343 $66,729 532.0811 45 45 44 543,401 $20.8658 554,251 526.0822 565,101 $31.2987 44 44 44 44 44 44 44 44 44 44 44 44 44 44 Computer Support Technician, Senior 43 $42,342 $20.3569 $52,928 $25.4461 $63,513 530.5353 Project Coordinator 43 Vol Fire Recruit/Retention Coordinator 43 Buyer 42 541,310 519.8604 $51,637 $24.8254 $61,964 $29.7905 Chief Mechanic 42 Safety Officer 42 Therapeutic Recreation Specialist 42 GIS Specialist 41 540,302 $19.3760 550,377 $24.2199 560,453 $29.0639 Public Works Infrastructure Liaison 41 Telecommunications Operator, Lead 41 Lead Jailer 41 Urban Forester 41 Accounts Payable Supervisor 40 539,319 $18.9034 $49,149 $23.6292 558,979 $28.3551 Community Outreach Coordinator 40 Legal Secretary 40 Office Supervisor 40 Customer Service Supervisor 40 Volunteer Coordinator 40 Electrician 39 538,360 $18.4423 $47,950 $23.0529 557,540 $27.6635 Telecommunications Operator, Intermediate 39 11 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly GIS Technician Planning Technician Maintenance Crew Leader Utility Maintenance Technician, Senior Treatment Plant Operator II Program Specialist Recreation Program Coordinator, Assistant Recreation Specialist Utility Field Service Technician, Lead Videographer / Editor 38 38 38 38 38 38 38 38 38 38 537,424 $17.9925 $46,781 $22.4906 $56,137 $26.9888 Code Enforcement / Health Officer 37 536,512 $17.5537 545,640 $21.9421 $54,767 $26.3305 Crime Victim Specialist 37 Humane Officer 37 Animal Shelter Supervisor 37 Jailer 37 Telecommunications Operator, Basic 37 Administrative Assistant 36 $35,621 $17.1255 $44,526 $21.4069 $53,432 525.6883 Building Maintenance Technician 36 Traffic Signal Technician 36 HR Assistant 35 $34,752 $16.7078 543,440 $20.8848 $52,128 $25.0617 Park Maintenance Crew Leader 35 Payroll Technician 34 $33,905 516.3003 $42,381 $20.3754 $50,857 $24.4505 Computer Support Technician 34 Recycling Center Supervisor 34 Treatment Plant Operator I 34 Utility Maintenance Technician 34 CCTV Technician 34 Pre -Treatment Technician 34 Property Room Technician 33 533,078 515.9027 541,347 $19.8784 $49,617 $23.8541 Quartermaster 33 Custodial Crew Leader 32 $32,271 515.5149 540,339 $19.3936 $48,406 $23.2723 Mechanic 32 Records and Information Coordinator 32 Traffic Signal Technician, Trainee 32 31 531,484 515.1365 539,355 $18.9206 $47,226 $22.7047 Accounts Payable Clerk 30 530,716 514.7673 $38,395 $18.4591 546,074 $22.1509 GIS/GPS Technician 30 Heavy Equipment Operator 30 Water & Sewer Equipment Operator 30 Plans Expediter 30 Police Records Clerk, Lead 30 Utility Billing Specialist 30 12 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Deputy Court Clerk, Senior ROW Inspector Humane Officer, Trainee Animal Shelter Attendant Office Assistant, Senior Court Bailiff 29 $29,967 $14.4071 $37,458 $18.0089 544,950 521.6107 29 29 29 28 $29,236 $14.0557 536,545 $17.5696 $43,854 $21.0836 27 $28,523 $13.7129 535,654 517.1411 $42,784 $20.5693 Utility Field Service Technician 27 Equipment Operator 26 $27,827 $13.3784 $34,784 516.7230 $41,741 $20.0676 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 25 $27,148 $13.0521 $33,936 $16.3152 $40,723 $19.5782 Customer Service Representative 24 526,486 512.7338 533,108 $15.9172 $39,729 $19.1007 Permit Clerk 24 Police Records Clerk 24 Sign Technician 24 23 $25,840 512.4232 $32,300 $15.5290 538,760 $18.6348 Building Maintenance Worker 22 $25,210 $12.1202 $31,513 $15.1502 $37,815 $18.1803 Office Assistant 22 Park Maintenance Worker 22 Receptionist 22 21 $24,595 $11.8246 530,744 514.7807 536,893 $17.7369 20 $23,995 $11.5362 529,994 $14.4202 $35,993 $17.3043 Custodian 19 $23,410 $11.2548 $29,263 $14.0685 $35,115 $16.8822 18 $22,946 $11.0317 $28,683 513.7897 $34,419 516.5476 17 $22,386 $10.7627 $27,983 $13.4533 $33,580 $16.1440 16 $21,840 $10.5002 527,300 513.1252 $32,761 $15.7502 Water Safety Instructor 15 $21,308 $10.2441 $26,635 512.8051 $31,961 $15.3661 Camp Coordinator 15 14 $20,788 59.9942 $25,985 $12.4928 $31,182 $14.9913 13 $20,281 $9.7504 $25,351 $12.1881 $30,421 $14.6257 12 $19,786 $9.5126 $24,733 $11.8908 $29,679 $14.2689 Head Lifeguard 11 $19,304 $9.2806 $24,130 $11.6008 $28,956 513.9209 Recycling Center Attendant 10 $18,833 $9.0543 $23,541 $11.3178 $28,249 $13.5814 13 Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Lifeguard W/WSI 8allfield Attendant Fitness Attendant Lifeguard Camp Counselor Recreation Attendant Fire Department Support Services Volunteer 9 $18,374 $8.8334 $22,967 $11.0418 $27,560 $13.2501 8 $17,925 $8.6180 $22,407 $10.7725 $26,888 $12.9270 7 $17,488 $8.4078 $21,860 $10.5097 $26,232 $12.6117 7 7 7 7 6 $17,062 $8.2027 $21,327 $10.2534 $26,659 $12.8167 5 $16,645 $8.0026 $20,807 $10.0033 $26,009 $12.5041 4 $16,240 $7.8075 $20,299 $9.7593 $25,374 $12.1992 3 $15,843 $7.6170 $19,804 $9.5213 $24,755 $11.9016 2 $15,457 $7.4313 $19,321 $9.2891 $24,152 $11.6113 1 $15,080 $7.2500 $18,850 $9.0625 $23,563 $11.3281 14 CITY OF PEARLAND FIRE PAY PLAN FY 2016 Fire Certified Personnel (48/96) Salary Range Job Title Rank MINIMUM MIDPOINT MAXIMUM 2756 annual hours Annual Hourly 2756 annual hours 2756 annual hours Annual Hourly Annual Hourly F-1 Firefighter Firefighter $45,900 $16.6546 S57,375 S20.8182 $68,850 $24.9819 F-2 Driver/Operator Field Training Officer Driver/Operator 2nd Lieutenant $50,665 $18.3835 $63,331 $22.9794 $75,998 $27.5753 F-3 Lieutenant Lieutenant $55,925 $20.2921 S69,906 $25.3651 $83,888 S30.4381 F-4 Captain Captain $63,240 $22.9463 $79,050 $28.6829 $94,860 $34.4194 F-5 Battalion Chief Battalion Chief S71,400 $25.9071 $89,250 $32.3839 $107.100 S38.8607 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 MIDPOINT MAXIMUM 2080 annual hours 2080 annual hours 2080 annual hours Annual Hourly Annual Hourly Annual Hourly E-1 EMT EMT S22.234 S10.6894 S27.792 S13.3618 S33.351 S16.0341 E-3 EMT -Intermediate EMT -Intermediate $25,416 $12.2194 $31,148 $14.9748 $37,377 $17.9697 E-5 Paramedic Paramedic $31,145 S14.9734 $38.931 $18.7168 S46.717 S22.4601 E-7 EMS Lieutenant 2nd Lieutenant $34,370 $16.5240 $42,962 $20.6550 $51,555 $24.7860 E-9 EMS Captain Captain $40,032 $19.2461 $50,040 $24.0577 $60,048 $28.8692 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 lighting duties or leaves the City the range will no longer exist Uniformed Administrative Personnel (40 hour work week) Salary Range Job Title Rank MINIMUM MIDPOINT MAXIMUM 2080 annual hours 2080 annual hours 2080 annual hours Annual Hourly Annual Hourly Annual Hourly F-6 EMS Training Captain Logistics Captain Clinical Manager Captain $63,240 $30.4038 $79,050 $38.0048 $94,860 $45.6058 F-7 Training Battalion Chief Battalion Chief $71,400 $34.3269 $89,250 $42.9087 $107,100 $51.4904 Hourly rate or regular rate of pay based on 2080 Regular Hours. Paid Volunteer Fire Fighter (PVFF) Salary Range Job Title Rank MINIMUM 432 annual hours Annual Hourly MIDPOINT Annual Hourly MAXIMUM annual hours Annual Hourly VF -1 Firefighter Firefighter $7.2500 $9,250.00 VF -2 Driver/Operator Driver/Operator $8.0026 $9,250.00 VF -3 Lieutenant Lieutenant $8.8333 $9,250.00 VF -4 Captain Captain $9.9888 $9,250.00 VF -5 Battalion Chief Battalion Chief $11.2776 $9,250.00 Maximum annual salary will not exceed the hourly rate times 999 hours or the Maximum annual amount shown, whichever comes first. 15 CITY OF PEARLAND POLICE PAY PLAN FY 2016 All college degrees must be issued by an approved institution of higher education which is duly accredited by one of the regional accreditation agencies. No mail order degree will be approved. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code. Chapter 141.032. When Classified Employee is eligible. shift differential pay is S86.00 bi-weekly_ Education / Incentive Pay All officers shall receive certification pay as follows. after successful completion of their probationary period: TCLEOSE BASIC CERTIFICATE TCLEOSE INTERMEDIATE CERTIFICATE TCLEOSE ADVANCED CERTIFICATE TCLEOSE MASTER PEACE CERTIFICATE $ .00/hr. $ .29/hr. $ .58/hr. $ .87/hr. In addition. add the following to the above. if the officer holds an Intermediate. Advanced or Master Certificate and has: ASSOCIATE DEGREE BACHELORS DEGREE MASTERS DEGREE Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief. will receive 5100.00lbi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. $ .58/hr. $ .87/hr. $1.15/hr. 16 0 - 6 mos. Pa 7_ 5',, .1:-:1 Cade: 4 All college degrees must be issued by an approved institution of higher education which is duly accredited by one of the regional accreditation agencies. No mail order degree will be approved. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code. Chapter 141.032. When Classified Employee is eligible. shift differential pay is S86.00 bi-weekly_ Education / Incentive Pay All officers shall receive certification pay as follows. after successful completion of their probationary period: TCLEOSE BASIC CERTIFICATE TCLEOSE INTERMEDIATE CERTIFICATE TCLEOSE ADVANCED CERTIFICATE TCLEOSE MASTER PEACE CERTIFICATE $ .00/hr. $ .29/hr. $ .58/hr. $ .87/hr. In addition. add the following to the above. if the officer holds an Intermediate. Advanced or Master Certificate and has: ASSOCIATE DEGREE BACHELORS DEGREE MASTERS DEGREE Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief. will receive 5100.00lbi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. $ .58/hr. $ .87/hr. $1.15/hr. 16 0 1 2 3 4 5 6 7 8 9 10 11 Police 9751539 525.9085 9266858 5214963 9283109 529.1603 5300351 9309361 931 8642 5328201 3338047 9348189 0" co, 54.360 01 34,490.81 $4625 53 34.764 30 54.907 2 3 95.054 45 95.206 08 $5.362 26 95.523 13 95.688 82 95 859 49 96.035 21 552 320 11 5', 7 769 77 555.506 41 557 171 66 558 886 71. 560 653 35 562.4 77 97, 564 347 14 566277 Sig 568 765 88 970.31386 972.423 27 All college degrees must be issued by an approved institution of higher education which is duly accredited by one of the regional accreditation agencies. No mail order degree will be approved. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code. Chapter 141.032. When Classified Employee is eligible. shift differential pay is S86.00 bi-weekly_ Education / Incentive Pay All officers shall receive certification pay as follows. after successful completion of their probationary period: TCLEOSE BASIC CERTIFICATE TCLEOSE INTERMEDIATE CERTIFICATE TCLEOSE ADVANCED CERTIFICATE TCLEOSE MASTER PEACE CERTIFICATE $ .00/hr. $ .29/hr. $ .58/hr. $ .87/hr. In addition. add the following to the above. if the officer holds an Intermediate. Advanced or Master Certificate and has: ASSOCIATE DEGREE BACHELORS DEGREE MASTERS DEGREE Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief. will receive 5100.00lbi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. $ .58/hr. $ .87/hr. $1.15/hr. 16 1st year 2nd year 3rd year 401 year 501 year 6th year 53639 -4 538047, 339 •.,,. 5403646 Se'gearc 56116'9 98.402.82 56.59491 56.19215 56.99654 57,20643 5/4 59,, '17 576,833 85 579.138 87 581.513 03 583.958 42 586.477 18 1st year 2nd year 3rd year 401 year 542 8224 544 1075 945 4301 546 793 Lieutenant 57422.62 57.645.30 97.87486 S8.110 589.071 49 591 743 64 994495 95 597 330 8 1st year 2nd year 3rd year 948 1975 949 6434 S51. 1327 Caola.'• 38.354 23 38.604 86 58.86300 5100250 75 5103,258 27 9106.356 02 All college degrees must be issued by an approved institution of higher education which is duly accredited by one of the regional accreditation agencies. No mail order degree will be approved. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code. Chapter 141.032. When Classified Employee is eligible. shift differential pay is S86.00 bi-weekly_ Education / Incentive Pay All officers shall receive certification pay as follows. after successful completion of their probationary period: TCLEOSE BASIC CERTIFICATE TCLEOSE INTERMEDIATE CERTIFICATE TCLEOSE ADVANCED CERTIFICATE TCLEOSE MASTER PEACE CERTIFICATE $ .00/hr. $ .29/hr. $ .58/hr. $ .87/hr. In addition. add the following to the above. if the officer holds an Intermediate. Advanced or Master Certificate and has: ASSOCIATE DEGREE BACHELORS DEGREE MASTERS DEGREE Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief. will receive 5100.00lbi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. $ .58/hr. $ .87/hr. $1.15/hr. 16 Building MOMENTUM Fiscal Year Adopted Budget 2015 _ 2016 pearlandtx.gov CITY OF PEARLAND, TEXAS CITY OF PEARLAND, TEXAS ANNUAL BUDGET AND TAX RATE OCTOBER 1, 2015 – SEPTEMBER 30, 2016 In accordance with SB 656 This budget is estimated to raise more revenue from property taxes than last year’s budget by $3,018,968, which is a 7.4% increase from last year’s budget. Of that amount, $1,251,970 is estimated property tax revenue to be raised from new property added to the tax roll this year. Property Tax Comparison: FY 2015 FY 2016 Adopted and Proposed Tax Rate 0.7121 0.7053 Effective Tax Rate 0.6742 0.66037 Effective Maximum Operating Rate 0.2057 0.206029 Maximum Operating Rate 0.222156 0.222511 Debt Tax Rate 0.4900 0.4828 Rollback Tax Rate 0.712156 0.705311 Vote on Budget: For: Councilmembers Moore, Reed, Carbone, and Hill Against: Councilmember Ordeneaux Present and Not Voting: Mayor Reid Absent: None Vote on Tax Rate: For: Councilmembers Moore, Carbone, and Hill Against: Councilmembers Ordeneaux and Reed Present and Not Voting: Mayor Reid Absent: None Total amount of outstanding municipal debt obligations secured by property taxes for fiscal year 2016 is $24,384,798. 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, 2014. 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 City of Pearland, 3519 Liberty Drive, Pearland TX 77581 (281)652-1600 www.pearlandtx.gov Prepared by: Claire Bogard, Director of Finance Tara Kilpatrick, Budget Officer Paulette Englund, Budget Analyst Neelie Walker, Budget Analyst Joel Hardy, Grants Coordinator Clay Pearson, City Manager CITY OF PEARLAND ADOPTED BUDGET FISCAL YEAR OCTOBER 1, 2015 -SEPTEMBER 30, 2016 Jon Branson, Deputy City Manager Trent Epperson, Assistant City Manager Left to Right:Gary Moore, Council Member, Position 3 Derrick Reed, Council Member, Position 2 Tony Carbone, Council Member, Position 1, Mayor Pro Tem Tom Reid, Mayor Keith Ordeneaux, Council Member, Position 4 Greg Hill, Council Member, Position 5 CITY OF PEARLAND ADOPTED BUDGET FY 2016 TABLE OF CONTENTS TRANSMITTAL LETTER City Manager’s Budget Message ........................................................................................................................... i-xiv INTRODUCTION Introduction to Pearland, area maps ...................................................................................................................... 1 City Organization Chart .......................................................................................................................................... 10 City Management ................................................................................................................................................... 11 City Council Strategic Priorities.............................................................................................................................. 12 Staffing Levels ....................................................................................................................................................... 16 Authorized Personnel by Department .................................................................................................................... 18 Reader’s Guide to the Budget................................................................................................................................ 20 Fund Structure ....................................................................................................................................................... 22 Budget Objectives and Philosophy ........................................................................................................................ 23 Budget Calendar .................................................................................................................................................... 26 HIGHLIGHTS Summary ................................................................................................................................................................ 30 Department Supplemental Requests Funded by Strategic Priority ....................................................................... 33 Staffing and FTE Changes ..................................................................................................................................... 34 Revenue Enhancements by Department ............................................................................................................... 36 FINANCIAL POLICY ............................................................................................................................................. 39 FINANCIAL SUMMARIES Summary All Funds Revenues and Expenditures ................................................................................................. 55 Analysis of Fund Balances and Cash Equivalents ................................................................................................ 57 Trends .................................................................................................................................................................... 60 General Fund Revenues ..................................................................................................................................... 60 General Fund Expenditures ................................................................................................................................ 63 Water and Sewer Fund Revenues ...................................................................................................................... 64 Water and Sewer Expenditures .......................................................................................................................... 66 MULTI-YEAR FORECAST Overview ................................................................................................................................................................ 67 Debt Service Fund ................................................................................................................................................. 73 General Fund ......................................................................................................................................................... 75 Water/Sewer Fund ................................................................................................................................................. 83 Pearland Economic Development Corporation ...................................................................................................... 85 PROPERTY TAXES Overview ................................................................................................................................................................ 87 Tax Collections ...................................................................................................................................................... 89 Tax Rate Distribution ............................................................................................................................................. 90 Assessed Valuation, Taxes Levied and Taxes Collected ...................................................................................... 91 Principal Taxpayers ............................................................................................................................................... 93 DEBT SERVICE FUND Overview ................................................................................................................................................................ 95 Summary of Revenues, Expenditures and Fund Balance ..................................................................................... 96 Governmental Debt to Maturity .............................................................................................................................. 99 Graphs ................................................................................................................................................................... 100 Governmental Debt to Maturity ........................................................................................................................... 100 Ratio of Net Bonded Debt to Assessed Valuation .............................................................................................. 100 Net Bonded Debt per Capita ............................................................................................................................... 100 Debt Service Schedules ......................................................................................................................................... 101 GENERAL FUND Overview ................................................................................................................................................................ 105 Revenue and Expenditure Summary ..................................................................................................................... 107 General Fund Revenues ........................................................................................................................................ 110 General Fund Expenditure Summary By Category (All Departments) .................................................................. 113 General Fund Expenditures by Function/Department ........................................................................................... 114 General Government Organization Chart .............................................................................................................................................. 116 Expenditure and Staffing Summary .................................................................................................................... 117 City Council ........................................................................................................................................................ 119 City Manager ....................................................................................................................................................... 120 Human Resources .............................................................................................................................................. 121 City Secretary ..................................................................................................................................................... 123 Legal Department ............................................................................................................................................... 124 Information Systems ........................................................................................................................................... 125 Finance Department ........................................................................................................................................... 127 Other Requirements ............................................................................................................................................ 129 Library ................................................................................................................................................................. 130 Public Safety Public Safety - Police Department Organization Chart ....................................................................................... 131 Public Safety - Fire Department Organization Chart .......................................................................................... 132 Expenditure and Staffing Summary .................................................................................................................... 133 Police Department .............................................................................................................................................. 136 Fire Department .................................................................................................................................................. 140 Community Services Organization Chart .............................................................................................................................................. 142 Expenditure and Staffing Summary .................................................................................................................... 143 Community Development .................................................................................................................................... 145 Communications ................................................................................................................................................. 147 Municipal Court ................................................................................................................................................... 149 Public Works Organization Chart .............................................................................................................................................. 150 Expenditure and Staffing Summary .................................................................................................................... 151 Public Works Departments ................................................................................................................................. 153 Parks & Recreation Parks & Recreation Department Organization Chart .......................................................................................... 156 Expenditure and Staffing Summary .................................................................................................................... 157 Parks & Recreation Departments ....................................................................................................................... 159 ENTERPRISE FUNDS Overview ................................................................................................................................................................ 161 Water & Sewer Revenue & Expense Summary .................................................................................................... 162 Water & Sewer Fund Revenues ............................................................................................................................ 164 Expense and Staffing Summary ............................................................................................................................ 165 Public Works Water & Sewer Organization Chart .................................................................................................................... 166 Public Works Departments ................................................................................................................................. 167 Finance – Utility Customer Services ................................................................................................................... 169 Enterprise Fund Debt Maturity Schedule ............................................................................................................... 170 Enterprise Fund Debt Service Schedule ................................................................................................................ 172 Solid Waste Fund Overview ................................................................................................................................... 174 Solid Waste Department ........................................................................................................................................ 175 CAPITAL PROJECT FUNDS Overview ................................................................................................................................................................ 177 Summary of Revenues, Expenditures and Fund Balances ................................................................................... 179 Summary of Capital Projects by Project Type ....................................................................................................... 181 SPECIAL REVENUE FUNDS Definition ................................................................................................................................................................ 193 Court Security Overview ....................................................................................................................................... 194 Citywide Donation Overview ................................................................................................................................. 195 Court Technology Overview ................................................................................................................................... 196 Court Juvenile Management Overview .................................................................................................................. 197 Street Assessment Overview ................................................................................................................................. 198 Traffic Impact Improvement Overview ................................................................................................................... 199 Regional Detention Overview ................................................................................................................................ 200 Hotel/Motel Occupancy Tax/Convention & Visitors’ Bureau Overview.................................................................. 201 Park Donations Overview ...................................................................................................................................... 202 Park & Recreation Development Overview ........................................................................................................... 203 Map of City Park Zones ......................................................................................................................................... 204 Tree Trust Overview .............................................................................................................................................. 205 Sidewalk Overview ................................................................................................................................................. 206 Police State Seizure Overview .............................................................................................................................. 207 Federal Police Overview ........................................................................................................................................ 208 Grants Overview ................................................................................................................................................... 209 Community Development Block Grant (CDBG) Overview ..................................................................................... 210 University of Houston,Clearlake Overview ............................................................................................................ 211 University of Houston Capital Renewal Overview ................................................................................................. 212 Municipal Channel (PEG) Overview ...................................................................................................................... 213 Lower Kirby Urban Center Overview ..................................................................................................................... 214 INTERNAL SERVICE FUNDS Definition ................................................................................................................................................................ 215 Property/Liability Insurance .................................................................................................................................... 216 Medical Self-Insurance .......................................................................................................................................... 218 COMPONENT UNITS Definition ................................................................................................................................................................ 221 PEDC Organization Chart .............................................................................................................................................. 222 Overview ............................................................................................................................................................. 223 Expenditure and Staffing Summary by Department ........................................................................................... 225 Department ......................................................................................................................................................... 226 Debt to Maturity ................................................................................................................................................... 228 Debt Service Schedule ....................................................................................................................................... 230 APPENDIX A City Charter Article 8, Municipal Finance ............................................................................................................... 231 Tax Ordinance No. 1519 ........................................................................................................................................ 235 Budget Ordinance No. 1518, including Pay Plans ................................................................................................. 237 Usage and Service Fees Ordinance No. 1358-13 ................................................................................................. 251 Development Permit Fees Ordinance No. 1023-6 ................................................................................................. 262 APPENDIX B New Personnel Funded ......................................................................................................................................... 279 Supplemental Requests – Funded and Not Funded ............................................................................................. 280 GLOSSARY Glossary ................................................................................................................................................................. 287 Acronyms ............................................................................................................................................................... 294 Page i City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Tel: 281.652.1600 pearlandtx.gov July 27, 2015 To: Mayor Reid and City Council members Once something has started, good or bad, there is momentum to continue. A body in motion tends to stay in motion, until another external force is applied. So says one of Newton’s physical laws of motion. In government organizations, corporate life, homes, and schools, we are all subject to momentum. We “get on a roll” and keep going (even accelerating) for as long as we can. We can be a force to continue the things headed in good directions or push a different way against unfavorable trends. At the City of Pearland, we have a lot of energy gathering for more forward motion. We watch the trend lines stoke upwards on sales tax revenue and property valuation. Strategically, we have people in the right places within our City organization. Our crack staff is gathering momentum for the next wave of opportunities facing the community and leveraging momentum into forward progress in the right direction. Especially after the July 2014 City departmental reorganization, we have more opportunities for collaborations and focus. The Public Works, Projects and Engineering groups are uniting to think about long-term asset management after the projects are built. Economic development is approached by acknowledging the attraction and interest from firms is ultimately successful when we conduct the planning and permitting process with a sense of urgency and focus on high quality development, and stay in touch for retention and expansion. The City of Pearland’s FY 2015/16 and multi-year financial plan here represents continuing the energy of quality growth and development within our organization and throughout our community. Our seeds for the future (referenced in last year’s budget transmittal) are being planted with new roads, pipes and parks. Our staff is collaborating with community partners including schools and other government agencies to move Pearland forward. With the growth, there is also cost concerns building that we point out and are working to manage over the near term. Part of the phrase on the law of motion was italicized above. We can influence momentum with our efforts. We can take advantage of a trend with good policy and program execution. We can help encourage Pearland to be the place of choice around Houston with our own assets and mobility network, perfectly positioned between NASA, downtown Houston, the Port of Houston, Hobby International Airport, the Texas Medical Center, and The Port of Freeport. The March 25th early budget input meeting of the City Council was pivotal in terms of identifying the Strategic Priorities, what we want to accomplish and make better. Background materials for March were a book of white papers prepared by our in-house expert professionals, who know both their line of work and know Pearland. We also provided results from an updated, comprehensive citizen survey. Such surveys are sound private sector Page ii “market research” to know perspectives from our community members who we may not come across in our regular circles of influence. The 2015 Citizen Survey (prepared by the National Research Center) shared the broad cross-section of Pearland resident perceptions. We charged a cross-section of Pearland City staff to take the Citizen Survey results and make recommendations for action. The members took on the challenge to “move the needle” so when we do the next formal citizen survey in 2017, we will see noticeable differences. The philosophy of creating and using good information, bringing on top-flight City staff, and supporting them with tools, training, and technology is going to give Pearland the best chance for remaining a foremost-city in a competitive urban environment. We have consistently involved and asked the engagement of our City staff members from all parts of the organization. For instance, immediately after the City Council’s early budget input, we held a Staff Budget Workshop, “Opportunities and Gaps”, to share the road ahead. The recommended budget you hold here is the work of many minds who know cities and municipal operations and are fine-tuning it to have a nimble City organization that can keep us safe, engage with the community, build a broad economy of quality investments, support sustainable infrastructure, and feature a variety of parks and recreation activities which attracts people here versus somewhere else. Especially in Texas where we are dependent upon our own resources without the State most-often devolving responsibilities, all is dependent upon maintaining our fiscally responsible local government. In March, we discussed a number of topics, including trends for employee health care, property valuation for bonding capacity needs, squeezed property tax rate for operations, unmet needs for infrastructure recapitalization, and the long-term look at best deploying our public safety resources for the best results. These topics, among others, will be covered here in summary as they are in the actual budget. Economic Development Commercial and residential development continue at a strong pace in all areas of our community. Our retail continues to grow with the additional phases being added to the Center at Pearland Parkway and the 288 corridor will be home to 160,000 square foot Costco in fall 2015. Residential development is already over 1,538 permits through three quarters of FY 2014/15 which will make this the strongest housing year since 2008. Another area where we have tremendous forward inertia is the implementation of our Pearland 20/20 Community Strategic Plan, spearheaded by our Pearland Economic Development Corporation. Since the launch of implementation in 2013, Pearland 20/20 has resulted in a number of successful outcomes that demonstrate the community’s commitment to implementing the strategy. Two major beautification strategy efforts from 20/20 have been completed: the 288 Master Plan and Gateway features. PEDC, KPB and the City continue working on plans to implement an entry feature and landscaping on Page iii Cullen. In addition, PEDC and the City have begun design and engineering of entry gateways at both Pearland Parkway and Dixie Farm Road. Work also continues on the SH 288 Master Plan implementation to be done in coordination with the toll lanes which will be a mobility boon and enhance the corridor into a first-class entry to our community for our residents and visitors. Our economic development marketing efforts are resulting in multiple announcements that are demonstrating our community’s attractiveness as a place to invest and create jobs. Recent project announcements include Keystone Engineering’s new facility on North Main, which is expected to bring $6M in investment and 70 new jobs to the community. Shale-Inland will construct a $14M new facility on South Main of 210,000 SF and employ 80. In the Lower Kirby District, Tool-Flo Manufacturing will invest $36M for an 80,000 SF headquarters and manufacturing facility that will have 188 employees and Mitsubishi Heavy Industries (MHI) Compressor International opened their new Pearland Works facility that is another 180,000 square feet of office and manufacturing space. MHI has already begun expanding the facility to include an additional 85,000 SF of warehouse space. The Lower Kirby District continues to be an area of focus resulting in significant investments in FY 2015-16. Regional detention in the Lower Kirby area was one of the major recommendations of the infrastructure build- out plan that includes utilizing the existing TxDOT drainage ditch and the City’s existing pond for detention east of Kirby. After many years of planning, construction began in May, 2015 upon the first phase of the regional detention system. The City, PEDC and District are working on the reconstruction of Hooper Road with construction to begin in the fall of 2015. The extension of underground electricity on Kirby Drive is currently under construction with additional extensions budgeted for by PEDC in FY 2015-16. Planning for South Spectrum Drive is also included in this year’s budget. Optimizing the development potential of our major commercial corridors was a focus of the 20/20 plan. In addition to the enhancements planned on SH 288, PEDC is also in the process of completing a development strategy for Main Street and will look to begin a plan for Broadway Street in FY 2015/16. Revenues and Expenditures Trends This recommended budget represents a continuation of the progress started by Pearland’s founders and successive elected leaders, staffs, and community partners. It can be difficult to communicate the connection between line items in governmental funds and long-term priorities. We began discussing those connections at the March retreat. We continue that discussion throughout the budget process, equipped with data, forecasts and research. Page iv Lewis McLain is a data and finance expert on Texas municipalities and a resource we often look to on large scale trends in the region, many of which will have an impact on our momentum for years to come. A former finance director, he suggests looking at “channels” between which trends move, historically. Another tip is a long-term look, but being honest about the numbers and adjusting for real dollar terms using the Consumer Price Index (CPI). Pearland’s actual expenditures for the last eight years shows the expected growth as reflected below: The information is portrayed again below, but in terms of the percentage of the total budget for each category. Public Safety expenditures has drawn about 1/2 of the City’s operational expenditures, the largest single operational category. Debt Service including principal and interest is another large portion of the actuals. It is CITY OF PEARLAND, TEXAS SPENDING AND GROWTH ANALYSIS Last Eight Fiscal Years (Modified Accrual Basis of Accounting) Amounts in (000's)Unaudited Expenditures 2007 2008 2009 2010 2011 2012 2013 2014 2015 % CHG Average Compounded Growth Rate General Gov't $6,363 $7,406 $8,423 $19,561 $10,877 $7,797 $7,958 $8,027 $9,642 52% 5% Public Safety 14,598 19,604 22,310 23,784 23,926 25,372 26,204 29,171 31,702 117% 10% Public Works 6,278 7,536 12,051 7,108 6,505 5,533 7,812 8,121 8,796 40% 4% Coummunity Services 3,102 3,426 3,386 3,839 3,376 4,246 3,523 3,960 4,070 31% 3% Parks & Recreation 4,908 6,605 5,789 6,305 7,539 7,499 7,244 7,816 5,882 20% 2% Operations subtotal $35,249 $44,577 $51,959 $60,597 $52,223 $50,447 $52,741 $57,095 $60,092 70% 7% Economic Development 14,391 16,899 18,730 15,426 17,391 20,397 17,414 25,248 31,621 120% 10% Debt Service - principal 5,183 4,265 7,517 8,525 10,847 12,893 15,637 15,815 17,488 237% 16% Debt Service - interest 13,483 15,688 15,704 17,096 17,154 15,534 15,859 16,373 16,597 23% 3% Capital Outlay 28,530 27,777 75,490 64,563 25,768 9,201 22,101 15,536 21,127 -26% -4% Intergovernmental 14,699 3,434 7,630 4,234 4,127 4,158 4,058 4,307 4,792 -67% -13% Other subtotal $76,286 $68,063 $125,071 $109,844 $75,287 $62,183 $75,069 $77,279 $91,625 20% 2% Total $111,535 $112,640 $177,030 $170,441 $127,510 $112,630 $127,810 $134,374 $151,717 36% 4% Actual SPENDING % of TOTAL by CATEGORY Unaudited Distribution of Spending 2007 2008 2009 2010 2011 2012 2013 2014 2015 Category as % of Operations General Gov't 18% 17% 16% 32% 21% 15% 15% 14% 16% Public Safety 41% 44% 43% 39% 46% 50% 50% 51% 53% Public Works 18% 17% 23% 12% 12% 11% 15% 14% 15% Coummunity Services 9% 8% 7% 6% 6% 8% 7% 7% 7% Parks & Recreation 14% 15% 11% 10% 14% 15% 14% 14% 10% Operations as % of Total 32% 40% 29% 36% 41% 45% 41% 42% 40% Category as % of Other Economic Development 19% 25% 15% 14% 23% 33% 23% 33% 35% Debt Service - principal 7% 6% 6% 8% 14% 21% 21% 20% 19% Debt Service - interest 18% 23% 13% 16% 23% 25% 21% 21% 18% Capital Outlay 37% 41% 60% 59% 34% 15% 29% 20% 23% Intergovernmental 19% 5% 6% 4% 5% 7% 5% 6% 5% Other as % of Total 68% 60% 71% 64% 59% 55% 59% 58% 60% Actual Economic Development includes PEDC, Development Authority of Pearland, and TIRZ #2. Page v interesting within debt service how principal payments are caught-up, so that we are paying off the financing on par with interest costs. We would expect public safety to grow with FY 2015 and in FY 2016 as additions in personnel are made, new fire stations opened, etc. The same can be said of economic development services (PEDC) to our ever-growing business community, but that category also includes the Shadow Creek Ranch TIRZ. The chart above graphically illustrates the City-wide historical distribution of funds on a percentage basis. The table reflects available actual expenditures, reflecting the trends and changes. Going forward, as mentioned, we would expect growth in the percentage of dollars dedicated to public safety, given increased staffing and associated costs for personnel’s wages, benefits, and equipment. Finally, there is a Per Capita Expenditures Adjusted for Consumer Price Index look at revenues and expenditures historically. The table builds on what we show above for the trends on where motion is headed. The per capita and real dollar term adjustments are the part that Lewis McLain encourages that is a bit unique. When one combines CPI for real dollars and adjust expenditures to per capita, the City of Pearland track record has actually been a slight decrease over time. So, the trend of overall, big picture investment of public dollars is that the City of Pearland continues to keep investing in long-term capital projects substantially funded by debt service, and making public safety and community growth/development a priority. We also balance expenditures programmatically with quality of life operations (i.e., parks and recreation, libraries) that draw people to choose Pearland for homes and investment. And, we are keeping local government expenditures steady. Budget approach and highlights In our approach to building this FY 2015/16 Budget, we started out with a bit of a change in instructions for departments. Rather than building upon the current year’s budget as a base, we directed the prior FY 2013/14 actual expenditures be our base. We allowed including known increases such as the opening of Fire Station#2 and Shadow Creek Ranch Park. The purpose was to be more conservative and tighter on budgeting. The tradition here has been that staff managers are diligent and good stewards by keeping below budgeted expenditures whenever possible. In our changing dynamic environment here, there are more unknowns and assumptions than you would find in a built-out staid city, by comparison. Per Capita Operating Expenditures Adjusted for CPI Unaudited Average Compounded Growth Rate 2007 2008 2009 2010 2011 2012 2013 2014 2015 POPULATION 84,500 89,000 92,600 94,100 97,200 99,800 104,100 106,900 112,300 4% PER CAPITA $1,320 $1,266 $1,912 $1,811 $1,312 $1,129 $1,228 $1,257 $1,351 0% CPI INDEX (NATIONAL)207 215 215 218 225 230 233 235 237 PER CAPITA ADJ TO 2014 $1,494 $1,380 $2,092 $1,950 $1,369 $1,154 $1,237 $1,257 $1,340 -1% PER CAPITA ADJ TO 2007 $1,320 $1,219 $1,848 $1,722 $1,209 $1,019 $1,093 $1,110 $1,184 -1% Page vi There is other growth in this budget. For instance, parks operations increased $286,029 in this budget from prior, resulting from increases in the cost of business and large-scale investments like $369,000 for Shadow Creek Ranch Park, $259,000 for the Hickory Slough Sportsplex, and $82,000 for Centennial Park. Those are all recurring cost centers that have expanded our recreation capacity offered to citizens. They will provide valuable opportunities for our residents and their families to enjoy City facilities right in their own neighborhood. In this budget document, you will find a list of funding highlights that reflect a still-impressive inventory of things that we are recommending in furtherance of City Council priorities. Those highlights include beautification and enhancements of public property, reflecting expectations and standards being set by the private sector on their properties. We have added herein for eight more sworn police officers and a total of $915,512 for street maintenance. There’s also recognition of moving the operations of the Recycling Center to be under Keep Pearland Beautiful for their stewardship and removing that responsibility and upkeep from the City. Finally, there’s continuation of the City’s move of the base critical software systems for finance, purchasing, budgeting, permitting, and utility billing. The ERP software upgrade is a huge undertaking that was diligently vetted, prepared and is well underway thanks to much staff effort. The first module to “go live” is the finance portion on January 1, 2016. I mentioned beautification above and the work for improving the City’s entryways with landscaping and general conditions that show visitors and investors, as well as residents, that we are a community of quality. There’s also the emphasis on code enforcement for basic minimum property maintenance standards and life/safety issues. Our code enforcement group has thrived in the Fire Department since those seeds were planted last year with the reorganization. The staff is diligently sharing positive options with the help of the HERO (Housing Enforcement & Rehab Opportunity) work and grants for those in our community that are most at risk and meet strict rules for eligibility. We also have an obligation to ensure that property owners can expect their investments are not unduly degraded with poor property maintenance down the block at somebody else’s house that may have zoning or other issues. We have a small amount for the abatement option of the worst cases to demolition, but are most often focused on working with property owners, so long as they are moving toward compliance. That effort takes a concerted team approach of Code Enforcement, Legal, Police, Building, and Public Works officials. Our City SNAP team is making progress in ensuring that no matter where you own property in Pearland we can maintain some standards for property maintenance. Employee health care The City’s payment towards employee and dependent health care coverage is one of our largest expense areas (contracts for purchasing water and for solid waste/recycling are the only two larger). The City Council reviewed projections for FY 2015/16 totaling $7.8 million in total cost, an 18% increase over the prior year projections. Part of the increase in expense is the growing number of employees, but also the cost of the benefit grows each year. Plans are reviewed each year for plan design, but there are not major ways to reduce City cost without substantively altering the employee payment share which would be in context of minimal cost of living increases, 2% for each of the last two years. Property valuation for bonding capacity needs After sales tax revenue, the largest source of revenue to General Fund operations is property taxes. Moreover, property taxes provide nearly 100% of the money for debt service on bond financing. So, property taxes are the overall largest revenue source. The City rate is applied to the net taxable value. Frankly, the City rate may change slightly year-to-year, but the valuation changes drive the City of Pearland government’s ability to invest and serve. Page vii There are a lot of components of the table below. The first is about 2/3 of the total property valuation is taxable, supporting the operations and debt service. About 1/3 is exempt for homestead exemptions, over 65, and non- taxable exempt organization properties. Another component is the mix of residential and commercial. Residential remains the bulk of property tax valuations while commercial pays 30%, plus, of course the associated jobs and sales tax opportunities. The other positive fact is that valuation growth in Pearland is very strong after the 2008 financial crisis and its subsequent slow momentum coming out. The City needs quality growth reflected into its valuation to expand the tax base, and growth has been the recent story here with new housing and businesses accounting for $353 million in the growth in valuation. The City has additional capital improvement needs to serve more residents and higher expectations. In this budget, we suggest a different approach on the next round of capital funding for the CIP projects. Rather than picking a year certain to ask voters to approve a new round of capital improvements, we could propose to wait until we hit a specific higher taxable value and then present a package to the voters. The logic, outlined in the CIP in more detail, is to time a future bond referendum when the City’s property valuation can fund the new debt service with no (or very little) further increase in the debt service tax rate, growing into our needed capital improvements needs as our value grows. COMPARISON OF ADJUSTED TAX ROLLS VALUATION BY PROPERTY CATEGORY Tax Year 2012 (March 2014) (Dec 2014) Tax Year 2015 `15 from `14 `16 from `15 TOTAL TOTAL TOTAL PROJECTED Percent Percent FY 2013 FY2014 FY2015 FY2016 Change Change Residential Land Homesite 827,212,274$ 913,489,825$ 940,964,793$ 971,323,974$ 3.0% 3.2% Improvements 4,068,456,552$ 4,450,665,345$ 4,881,506,062$ 5,449,829,351$ 9.7% 11.6% (316,665,698) (387,961,685)$ (427,494,934) (513,878,906) 10.2% 20.2% Net Residential 4,579,003,128$ 4,976,193,485$ 5,394,975,921$ 5,907,274,419$ 8.4% 9.5% Commercial Land Non Homesite 683,647,492$ 704,042,903$ 723,660,136$ 771,522,746$ 2.8% 6.6% Ag Market 67,355,452$ 66,940,961$ 60,259,595$ 65,406,844$ -10.0%8.5% Improvements 1,204,491,853$ 1,358,521,201$ 1,482,073,000$ 1,848,204,766$ 9.1% 24.7% Personal Property 530,775,973$ 650,453,238$ 728,842,336$ 714,441,627$ 12.1%-2.0% (696,667,426) (753,636,239) (792,475,940) (840,614,713) 5.2% 6.1% Net Commercial 1,789,603,344$ 2,026,322,064$ 2,202,359,127$ 2,558,961,270$ 8.7% 16.2% Gross Taxable Value 9,171,542,940$ 10,170,435,537$ 11,019,665,049$ 12,379,690,578$ 8.3% 12.3% Net Taxable Value 6,368,606,472$ 7,002,515,549$ 7,597,335,048$ 8,466,235,689$ 8.5% 11.4% 4,579,003,128$ 4,976,193,485$ 5,394,975,921$ 5,907,274,419$ 8.4% 9.5% 1,789,603,344$ 2,026,322,064$ 2,202,359,127$ 2,558,961,270$ 8.7% 16.2% % Residential 72%71%71%70% % Commercial 28%29%29%30% 2013 -2015 Based on Supplemental Roll prior to Final Roll Reported in CAFR 2016 Based on Prelimary Numbers Used in FY2016 Adopted Budget Exemptions (primarily Homestead and Over 65) Exempt Properties (primarily exempt organizations) Residential Taxable Value Commercial Taxable Value Page viii Property valuation, net of TIRZ valuation, would need to be approximately $8.26 billion, now estimated in 2020, to support additional debt of $70 million with no debt service tax rate increase. The City’s estimated valuation for FY 2015/16 net of TIRZ valuation is $6.387 million. The March discussion of the City Council following our white paper discussion was to have a smaller bond program that could be reasonably completed in a three to five-year time frame. The alternative is to plan on a 2018 bond referendum. Based on a five-year window, an additional 2.5 cents would be needed in 2019. The alternatives are not overwhelming rate change, but something Council will want to consider. Squeezed property tax rate for operations The tax rate is essentially divided into two parts; debt service and operations. The debt service portion of the tax rate is dedicated to meeting the City’s obligations for debt issuances made for critical long-term improvements that will give our community the foundation it needs to keep moving forward. The operations fuels progress on a day-to-day basis, giving our staff the tools they need to maintain the high service level our residents expect and deserve. We are providing excellent value for the operations and sound investments for the capital projects financed with debt service. The debt service component, as shown by many measures and well-known and accepted as a part of Pearland’s current point in its maturation, has been discussed and options provided. There was a scenario provided in the budget detail for the operations rate to increase. Although not recommended, this Scenario was an option to provide about $1.1 million in additional recurring General Fund Revenue by adding $01.5 to the operations tax rate, over the roll-back rate. Such an increase could sustain another $650,000 towards street and sidewalk maintenance and the $220,000 required for an additional 0.5% increase to City employee salaries, amongst other smaller inclusions. Even with the amount required for capital project debt service, and keeping within the rollback rate, the General Fund’s tax rate is helping fund an array of investments in this budget. The growth in value and the small increase in the operating rate, staying just below the roll-back rate, provides $14.6 million in revenue. We are funding a solid list of departmental needs that directors and their teams have prioritized. But until the tax base grows even further, our ability to grow and support further services will be constrained. Unmet needs for infrastructure recapitalization Mobility was identified as one of the most important focus areas for the community in the City’s 2015 Citizen Survey. Overall ease of travel rated 56%, travel by car 43% and traffic flow 24%; all lower when compared to national benchmarks. Nothing gets in the way of forward progress like a bump in the road. Roads, bridges, sidewalks, and pipes all have capital deterioration curves. Without maintenance, over time, the physical things we build, that we rely upon, deteriorate. Usage and weather wear down our public buildings, streets, and drains. The life cycle curve for pavement is another one of those physical laws. The graph below illustrates the natural progression of the pavement life cycle versus the life cycle of properly maintained pavement. With funding and regular inspections and maintenance, the red curve can be achieved, and increase pavement life. Without the appropriate investment, the natural momentum of pavement, and every other piece of infrastructure, follows a downward curve, illustrated by the dotted line. Page ix At the City Council’s early budget input in March 2015, the white paper on infrastructure recapitalization quantified the City’s depreciable fixed infrastructure (roads, pipes, sidewalks, and land) and building assets at a combined net value of $697 million. That’s right. The City Council is Board of Directors for a complex municipal corporation with just under three quarters of a billion dollars in value. On the roads, thanks to a June 2014 right- of-way assessment, we know we have a fairly new inventory with overall conditions well above average. As we presented in April, if we were to reinvest a modest 1% of value into our roadways we would need to spend $3.75 million annually. Additionally, within the ROW, are sidewalks, signage, and markings. Findings from the assessment recommend we should allocate between $0.75 million and $1.25 million annually for those improvements as well. The higher level of investment is required to maintain our current condition rating index score, which is 76 on a scale of 0 to 100 (100 is pristine new). To be clear, most of the higher investment amounts do not improve the rating, it merely keeps the condition at its current level. Ideally, investments should be made in paving and sidewalk infrastructure before these assets have reached the end of their usable life to maximize their longevity. It is far less expensive to strategically maintain a segment of road or sidewalk than it is to reconstruct it. For every dollar spent on maintenance one can expect to spend eight on reconstruction down the line. The curves below show different annual investment levels and the corresponding pavement network’s condition average that is forecast. Page x With the momentum headed forward in this recommended budget, we have begun to make improvements toward backing up words with dollar investments, but we still have a long way to go. The investments here represent pay-as-you-go maintenance, putting off the major reconstruction that’s more expensive and requires more bonding. Staff is always perfecting our delivery mix of fixes with staff, contracts, and working with partners like Brazoria County. We are ready to make these improvements in neighborhood and City-owned major roads that Pearland residents use for their mobility to get to the major trunk lines of 288, I-45 and Beltway 8. 2014 Adopted 2014 Actual 2015 Adopted 2015 Amended 2016 Proposed Streets 600,000 547,636 432,139 1,232,139 915,512 Sidewalks 437,000 568,195 337,114 687,114 537,114 $1,037,000 $ 1,115,831 $ 769,253 $1,919,253 $1,452,626 To move towards increasing the budget for streets to $3.4 million, a significant long-term positive, we have included the following amounts in the forecast: 2016 2017 2018 2019 2020 Streets 915,512 915,512 1,750,000 2,932,000 3,432,000 Sidewalks 537,114 537,000 537, 000 800,000 800,000 $1,452,626 $1,452,512 $2,287,000 $3,732,000 $4,232,000 Page xi Long-term look at best deploying our public safety resources for the best results Pearland maintains its status as a safe community and was another important focus area for the community per the City’s most completed Citizen Survey in 2015. With the collective efforts of police, fire, public works, constables, Brazoria County Sherriff, Texas Department of Public Safety, and citizens, there are resources for prevention, planning, and reaction. This is supported by the City’s 2015 Citizen Survey results with overall positive service ratings of 88% and 93% for Police and Fire Service, respectively. Overall feeling of safety in the community also rated favorably with 87%. With continued investment and growth in public safety providing our organization with the momentum to move forward, it has become increasingly critical to direct that momentum in an efficient and effective way. In June 2015, there was a bit of a modern milestone achieved within the City. We were at 100% staffing for sworn police officers and firefighters. Thanks to a great deal of concentrated effort and wisdom from staff across the City team, there has been successful recruitment rounds with ambitious numbers and impressive results. Interviews with the new additions show eager recruits who want to be a part of a dynamic City with opportunities for growth. The people we are bringing in to the City of Pearland, who are committed to public service, see the positive momentum of Pearland. The achievement is great with the numbers that are actually in service. A count of personnel actually on the payroll, not just budgeted or planned, was taken from the second payroll of June in each of the last three years. The numbers here reflect actual numbers of public safety employees, not including the many non-sworn: When thinking about the next year in our public safety operations, five priorities come to mind: 1. Conduct staffing and utilization study. The Pearland community and its Police and Fire departments are very different from what they were ten or even five years ago. The departments and the City we serve are bigger and more complex, technology is different and ubiquitous. A look with fresh outside professional eyes to work with our staff and prepare a staffing and utilization study, with our Police Department in FY 2015/16 and then Fire in FY 2016/17 is anticipated. That study will provide a tool that police leadership can adjust and prioritize staffing levels and plan for future budget years. 2. Integrate additional fire stations and associated additional people and equipment for prevention and response. Within calendar year 2015, two new fire stations are being constructed and occupied. The numbers of actual firefighters, now predominantly cross-trained as paramedics, reflects a dramatic upgrade in coverage capability. Moreover, Pearland will have two hospitals up and running within its corporate limits, providing more nearby public health resources. Integrating the people, new stations and their equipment into the City hazard prevention and response network will take dedicated effort over the next year. City of Pearland – sworn police officers and non-civilian Fire/EMS actual number on payroll for June of each year June 2013 June 2014 June 2015 Police Peace Officers 141 144 155 Fire (reflects Fire and EMS) 42 53 73 Total and Change from prior year 183 196 +16 228 +32 Page xii 3. Formalize and work with data analysis and accountability philosophy. The City hired a civilian crime analyst who is dedicated to reviewing, compiling, and sharing timely and accurate information. Nationally, the Data-Driven Approaches to Crime and Traffic Safety (DDACTS) is an established approach. The National Highway Traffic Safety Administration describes in operational guidelines DDACTS as “Implementation of the DDACTS model is a starting point for achieving long-term change, where law enforcement professionals take a more evidence-based approach to the deployment of personnel and resources.” 4. Continue City-wide preparation and hazard identification/mitigation. Within the City, a cross- departmental team known as SNAP (Safe Neighborhoods Around Pearland) has been meeting over the course of the last year. That group is indicative of the needs for teams, such as our traffic committee, all our emergency preparedness work, etc. to identify, plan, and abate neighborhood detractions and hazard situations. 5. Reduction in False Alarms. False alarms are the largest call type reported to our emergency dispatch center. Of course, we do not know that they are false until it is confirmed. The required responses to false alarms often detract from personnel, equipment, and financial resources that could be better put to other work. There will be an element of alarms that are a part of our response, but by making rule and administrative changes over the next year, to educate the public and reduce false alarms will provide more time for other duties and more safety for our staff and the public. The short-run trend for police calls is as follows: Pearland Police Calls for Service 2013 2014 % Change Officer Self- initiated 67,657 55,270 -22.4% Citizen 29,599 30,012 + 1.4% Total 97,256 85,282 -12.3% False alarm calls are the largest category of calls for service The City remains in outstanding position for its public safety provision and will continue to get better and adjust for the movement of our citizenry. Multi-year financial planning A highly effective tool in budgeting is multi-year financial planning. When policymakers have systems and attitudes to look at estimations of bottom lines three or so years out, you can make small adjustments now to address impacts of trends. When you take a regular multi-year view, a time horizon such as three to five years is reasonable for making good estimates, you can look ahead to avoid the accumulation of issues that “suddenly” become a crisis. Employee benefit costs such as pensions, are examples. The City of Pearland has long been using such prognosis. The budget document shows in the multi-year financial plan section herein FY 16 plus two more years and is based on a set of well-reasoned assumptions, including operating costs of completed CIP, staffing, replacement of equipment, and other known costs. We have a separate CIP that is longer, and reflects operating, not just construction costs. The utility funds in particular, are important for their large quantity and scale of capital and operating revenues/costs. The multi-year plan continues the momentum with growth and development in property valuations, completion of the 2007 voted bond authorization and plans for a future bond referendum as well as provides for mission Page xiii critical capital in the water/sewer fund all for the force (growth) that drives the City forward to keep it moving in the right direction. This momentum will drive the rate of change in the tax rate and in the water/sewer rates. Structural Imbalance and fund balances Maintaining a conservative approach, our General Fund’s fund balance is something to maintain vigilance. The highest single revenue for operations is sales tax. Sales tax is volatile, subject to the economy. Taking the 2010 drop in sales tax, there was a 4.5% reduction from 2009 and an 8.5% reduction from budget. Based on taking our 2015 year-end projections and 2016 base for the General Fund, if a similar drop as 2010 happened in 2015, the General Fund would see a drop in sales tax between $1.7 million to $2.1 million, excluding the increase for Costco. Thus, our $909,544 fund balance over the two-month recurring expenditures minimum is just around a sound amount. There are many factors, of course, with growth and new taxpayers, and rooftops. But caution is the watchword on growing recurring costs, particularly with employee wages and benefits. Moreover, the City in this General Fund budget has an FY 2015/16 recurring expenditures in excess of recurring revenue by $110,918. That amount has been shaved from the prior year’s estimate for FY 2015/16. Businesses or governments can handle planned expenditures in excess of revenue when times or resources require, as they do. As with the fund balance and sales tax reliance, the recurring operating net budget is something we have identified and discussed. We are working to bring the net General Fund amount to a regular near-balance. Utility Enterprise Funds The momentum of the City of Pearland’s growth is perhaps most evident in the Utility Enterprise Funds. With growth comes the need for expanded capacity for water production and distribution and sanitary sewer collection and treatment. The accelerating growth of the past three years prompted the need for a temporary package plant at the Reflection Bay Water Reclamation Facility to handle the growth while the permanent 4.0 million gallons per day (MGD) permanent plant expansion is built over the next two years. Growth has also re- prioritized the expansion of the JHEC plant over the Barry Rose plant. Both projects are being developed to ensure the permanent expansions are completed when needed. On the horizon in 2017, is the first phase (10 MGD) of our first Surface Water Treatment Plant, which will be the largest single capital project in the City’s history. At the March retreat, after review of the recapitalization needs of the streets and sidewalks, the City Council asked what was needed for the water and sewer recapitalization. As with streets and sidewalks, the City’s recapitalization efforts that maximize infrastructure life cycle costs in water and sewer are gaining momentum towards additional funding on a pay-as-you go basis. Analysis of water line failure data, has led to significant progress being made replacing older transite pipe. In addition, a comprehensive line cleaning program has been implemented to address water quality issues. The other areas where the seeds have been planted and momentum is gathering is developing a comprehensive inflow and infiltration (I&I) sanitary sewer program. With older systems, line breaks, open manholes and cleanouts, etc. contribute significant flows that must be processed at the plant, which increases operation and maintenance costs and drives the overall plant size. The recently purchased new vacuum truck was the first step in developing a program to examine the collection system to provide needed information that will lead to repairs, rehabilitation and replacement of these lines. With a comprehensive I&I program, the collection and treatments system will continue to capably serve the citizens of Pearland. The FY 2016 budget continues and expands upon these programs. Page xiv The new projects coupled with the rehabilitation projects equates to a 2016-2020 CIP with $261.6 million of projects in the enterprise fund. These large capital expenditures are coupled with significant inflation in the construction industry, which has exceeded cost projections. As these projects are necessary capital costs associated with new development, consideration should be given to a new Impact Fee study and evaluation sooner than our normal five year cycle, which would be in 2018. Revenues for FY 2015 have been less than budgeted due to the end of drought conditions for our area. This has been taken into account for the future revenue projections. Therefore, to operate the system, provide for debt service, cash reserves, meet bond coverage requirements, and achieve sustainable infrastructure while dealing with the revenue constraints, the Utility Enterprise Fund budget includes a 16% revenue increase, generating $4.7 million in additional revenues. The user fee revenue increase for FY 2016 exceeds last year’s forecast of a 5.5% increase due to the aforementioned cost increases and reduced revenues. The water/sewer rate model also shows additional annual revenue increases needed for the next four years of the model. However, the increases are necessary to carry forth the momentum that has been built with the new growth and to sustain our existing system to provide quality service and water to our customers. A final piece of our utilities is storm water management. Based on the storms of this past spring and early summer, we have seen the fruits of our seeds planted over the past decade with very little structural flooding throughout the community, as compared to the past. We expect to build on that momentum with the Master Drainage Plan that is being planned for completion in FY 2016. The plan will provide the City a guide for future storm water projects and provide us the data to reap the benefits of past investment by potentially lowering the flood plain elevations on the Flood Insurance Rate Maps (FIRMs). This continues the direction established at the early budget input meeting to update our master plans to keep them living, breathing, and useful documents to guide the City’s growth. Conclusion In a budget with overall expenditures of $303 million, there are always going to be priorities of some included and not of others. Not to belabor the point of Pearland’s positives, or in any way become complacent (that will not happen), the list of issues here are more along the lines of prioritizing opportunities. There are not major threatening trends or momentum-halting local crises. City staff here every day are great stewards of the public dollars and balancing different needs and wants in advancing the positive momentum of Pearland. We look forward to the team of elected and appointed staff partnering with the broad Pearland community and getting after continuing our progress, to make the most of our being on a positive roll. Respectfully submitted, Clay J. Pearson City Manager Postscript: The annual City budget is my responsibility as City Manager to recommend to you. You know too that the budget plan is a work of professionals across the City of Pearland government who know and care about the community. The last 19 months in Pearland for us have been a professional and personal positive opportunity appreciated. I thank Claire Bogard, Paulette Englund, Neelie Walker, Joel Hardy, Tara Kilpatrick and all in our office (Jon Branson, Trent Epperson, John McCarter, and Yvette Connevey) on this budget and all who I work alongside -- the administrative, professional, and technical experts, who are the front smiling faces and the behind-the-scenes public servants that make this great place move forward The Pearland Way. Pearland, Texas Where Town and Country Meet The City of Pearland, Texas was incorporated in December 1959 and adopted a Home Rule Charter on February 6, 1971, and is a home-rule City operating under a Council-Manager form of government. Policy-making and legislative authority are vested in a governing Council consisting of the mayor and five other members. The Mayor and Council members are elected at-large, and each of them hold office for a period of three consecutive years. Council members are limited to two full consecutive terms in office, and there is no term limitation on the office held by the Mayor. The City Manager is appointed by Council and is responsible for im plementation of Council priorities and day-to- day management of all City operations. The City provides a full range of municipal services, including public safety, trash pickup, traffic management, wastewater treatment, street maintenance and repairs, road construction and improvements, and two libraries through a cooperative effort between the City of Pearland and Brazoria County. According to a recent survey published in USA Today, Pearland is the 6th safest city in Texas. Located across the northern end of Brazoria County, and sharing a common border with Houston, Texas to the north, Pearland is the fastest growing City in Brazoria County. From 2000 to 2015, based on U.S. Census population statistics, Pearland’s population increased by 198%, from 37,640 to 112,300, making it consistently one of the fastest growing cities in Texas each year. The total area of the City is 69.8 square miles, 46.3 within City limits, and 23.5 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. Based on economic data from the U.S. Bureau of Labor Statistics, Pearland ranked 28th in the nation among cities with the fastest growing economies. For mid-sized cities, it ranked 11th, with seven Texas cities included in the top 10 nationwide. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016Pearland Population Growth by Year Sources: 1990-2013 U.S. Census Bureau and 2014-2015 City of Pearland Planning Dept. 1 Demographic Composition The median age in Pearland is 34.3, 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, with 8.4% of its residents in this age group. Population by Age Group - 2013 Age Group Pearland Texas Nation Under 5 years, 9.1% 7.5% 6.4% Under 18 years, 29.6% 27.0% 23.7% 65 years and over, 8.4% 10.7% 13.4% Source: 2015 update to the 2009-2013 American Community Survey – U.S. Census Bureau Median Household Income According to the 2013 American Community Survey (ACS) results from the US Census Bureau, Pearland’s Median Household Income (MHI) is $92,346, up from $89,149 from the 2010 Census. A total of 19,899, or 61.6% of households, earn $75,000 or more; compared to an average of 34.8% Statewide. Home values have grown along with household incomes in Pearland. Based on the 2013 ACS, the estimated median home value in Pearland was $179,400, higher than the State’s average by more than $50,000. For 2016, the average median taxable value is $202,972. Source: 2015 update to the 2009-2013 American Community Survey – U.S. Census Bureau The percentage of all people in Pearland reporting income below the poverty level was 4.5%, compared to 15.4% in the U.S. and 17.6% Statewide. According to the American Community Survey of 2013 (U.S. Census Bureau), home ownership in the City of Pearland was 79.7%, 16.4% above the State average. 739 802 1,203 1,571 3,323 4,759 5,168 7,841 4,376 2,514 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Number of Pearland Households by Income Level $200,000 or more $150,000 to $199,999 $100,000 to $149,999 $75,000 to $99,999 $50,000 to $74,999 $35,000 to $49,999 $25,000 to $34,999 $15,000 to $24,999 $10,000 to $14,999 Less than $10,000 2 Pearland Occupations Pearland residents serve in a variety of occupations. The majority, 26,123 of the 48,834 in the Pearland civilian employed population, serve in management, business, science, and arts occupations. Sales and office jobs make up 22.5% of the occupations held by Pearland citizens in the workforce. The depiction below shows Pearland occupations by type. Of the total 51,331 in the Pearland civilian labor force, 2,497 reported to the Census Bureau as being unemployed. Source: 2015 update to the 2009-2013 American Community Survey – U.S. Census Bureau Pearland Businesses The U.S. Census Bureau’s 2013 American Community Survey also provides information about the industrial characteristics of the City of Pearland, which include companies that perform non-retail business operations typically associated with manufacturing, trade, machinery and chemical companies, allied product merchants, and mineral exploration. According to this most recent data, manufacturing firms total 191 employer establishments with 2,539 paid employees. They produce a value of sales, shipments, receipts, or revenue totaling $476,666,000 in business. The commercial characteristics of Pearland’s private sector involve a total of 8,129 businesses and include automobile dealers, motor vehicle parts retailers, furniture stores, electronics and appliance merchants, home centers, grocery stores, health and personal care, apparel retailers, restaurants, food and beverage stores, gasoline stations, sporting goods stores, used product merchants, miscellaneous vendors, and motion picture or sound recording entertainment businesses. Diversity is an attractive feature of the Pearland community’s private sector population, with Census surveys showing that 29.4% of firms are women-owned, 12.8% Hispanic, 11.1% Asian, and 13.4% Black-owned. Retail sales were $779,634,000, with a per-capita of $10,110. The Pearland Economic Development Corporation (PEDC), 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 PEDC 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 Number of Employees Pearland Independent School District 2,472 Walmart 1,150 Kelsey-Seybold 850 City of Pearland 550* Kemlon 390 HEB 375 Davis Lynch 300 Packaging Service Company 230 Bass Pro Shop 225 Home Depot 220 Source: Pearland Chamber of Commerce, as of January 2015. *Full time employees only 26,123 10,985 5,156 3,506 3,064 Management and Sales & Office Service Production and Construction and Professional Occupations Transportation Maintenance 3 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. Source: 2015 update to the 2009-2013 American Community Survey – U.S. Census Bureau Education Levels Pearland remains above average when it comes to education, as 47% of Pearland residents over the age of 25 possess a Bachelor’s degree or higher. While only 8.3% 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’s “over 25” population that has not earned a high school diploma increased from the 6% reported in the 2010 Census. A total of 19% of Pearland citizens hold graduate or professional degrees, compared to 9% Statewide. Source: 2015 update to the 2009-2013 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. In additional to exceptional academics, Pearland schools offer an array of exceptional athletics and extracurricular activities for students. The latest counts put total Pearland ISD enrollment at 21,111, with an additional 5,016 Pearland students enrolled in Alvin ISD schools, and approximately 50 being served by the Pasadena school district. 8% 17% 28% 28% 19% Educational Attainment Less than high school graduate High school graduate (includes equivalency) Some college or associate's degree Bachelor's degree Graduate or professional degree 31 City of Pearland 26 U.S. State of Texas 25 4 Austin MSA City Size (square miles)61.80 62.21 48.39 32.38 51.29 35.45 34.11 Population Density 2,347 2,520 2,138 2,680 1,841 2,147 3,305 2014 Estimate 145,035 156,767 103,441 86,777 94,403 76,127 112,744 % Change (10-14)23.9%19.6%15.1%10.4%13.0%5.7%12.8% 2010 Census 116,989 131,117 91,252 78,817 83,560 71,802 99,887 % Change (00-10)246.0%140.5%99.8%20.0%83.6%9.9%62.5% 2000 Census 33,808 54,518 45,681 65,697 45,517 65,332 61,484 Senior Citizens (x>65)6.3%7.4%8.4%11.0%7.9%9.7%5.9% Juveniles (x<18)33.3%31.6%29.6%23.6%27.5%29.2%30.7% Foreign Born Persons 14.8%12.7%17.2%33.6%9.0%18.2%13.7% Language Other Than English Spoken at Home 20.2%19.8%28.2%42.0%17.0%39.8%27.0% Race -- White 76.8%79.8%62.4%52.2%81.7%67.2%78.5% Race -- African American 7.1%11.3%16.6%7.8%8.1%16.2%9.2% Race -- Asian 10.3%4.6%13.7%35.3%5.5%1.3%5.2% Hispanic Origin*12.6%19.6%21.1%10.3%17.8%44.1%29.6% Homeownership Rate 75.5%69.9%79.7%81.3%74.1%61.4%59.5% Persons Per Household 2.97 2.99 2.90 3.00 2.74 2.97 2.89 Median Household Income 108,284$ 81,118$ 92,346$ 104,702$ 89,339$ 46,939$ 69,533$ Median Home Value 250,400$ 187,100$ 179,400$ 258,000$ 176,000$ 97,000$ 168,800$ % Below Poverty Rate 4.4%8.9%4.5%4.2%5.0%20.3%8.6% % of Housing Stock Built After 1980 96.4%90.5%84.7%83.5%85.1%41.7%87.5% % Housing Units in Multi-unit Structures (2008- 2012)18.2%21.6%15.2%9.7%20.6%31.0%30.4% % Bachelor's Degree or Higher 58.7%46.2%46.6%53.9%42.8%13.6%37.0% Mean Travel Time to Work (min)28.0 28.5 30.6 28.9 29.1 23.7 24.2 Agriculture, forestry, fishing and hunting, and mining 1.0%1.0%2.4%4.9%1.7%1.1%0.7% Construction 3.6%4.6%4.4%3.9%6.6%16.7%5.7% Manufacturing 8.8%9.6%11.2%9.7%14.4%13.9%12.3% Wholesale trade 3.2%2.9%3.2%4.0%2.7%2.9%4.0% Retail trade 12.4%13.8%9.7%11.7%9.1%11.0%13.0% Transportation and warehousing, and utilities 3.5%2.9%4.6%4.3%6.6%6.2%3.3% Information 4.1%3.4%1.8%2.2%0.9%0.8%2.6% Finance and insurance, and real estate and rental and leasing 14.2%10.2%5.9%8.8%5.8%3.4%7.0% Professional, scientific, and management, and administrative and waste management services 15.8%13.7%12.9%16.4%13.0%9.7%14.4% Educational services, and health care and social assistance 18.5%23.0%29.2%22.3%25.2%18.2%19.4% Arts, entertainment, and recreation, and accommodation and food services 7.9%7.2%6.0%6.1%4.2%8.6%7.7% Other services, except public administration 4.2%4.3%4.0%3.8%4.0%5.0%4.1% Public administration 2.6%3.4%4.8%2.0%5.9%2.4%5.8% Tax Backed Rating (Moody's)Aa1 Aa1 Aa2 Aa1 Aa2 N/A Aa1 Credit Rating of Last GO Issuance (S&P)AA AA+AA-AAA AA N/A AA+ Total Net Position in thousands (2014 CAFR)1,050,700$ 825,698$ 620,370$ 596,355$ 7,279$ N/A 10,195$ Sales Tax Revenue (2014 Actuals)34,196,948$ 19,024,632$ 25,672,528$ 36,232,500$ 15,540,000$ N/A 49,400,000$ Sales Tax Revenue Per Resident 236 121 248 418 165 N/A 438 * "Hispanic" may be of any race, so also are included in applicable race categories City of Pearland: Comparison - City Demographics for Benchmarking Dallas-Fort Worth MSA Houston MSA HOUSING AND EDUCATION (2010 Census, or 2012 - 2013 American Community Survey) POPULATION (US CENSUS) Round RockPearlandSugar LandMcKinneyStatistical Category FINANCIAL CHARACTERISTICS (VARIOUS) League City Baytown DEMOGRAPHICS (2009-2013 American Community Survey - U.S. Census Bureau) Frisco PROFESSIONAL CHARACTERISTICS AND EMPLOYMENT BREAKDOWN BY INDUSTRY (2012 AMERICAN COMMUNITY SURVEY) 5 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. 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 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. 6 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 public works are deployed from locations throughout the City. The City has one central public safety facility designated to house and deploy police services, six fire stations, two full-service library facilities, City Hall, the Knapp Senior Center, 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. 7 PearlandRegional Airport To m B as sR eg io na l P ar k HATFIELDRDMYKAWARDNORTHF O R K D R BROADWAYST/FM518ALMEDARD/FM521VETERANSDROLDALVINRDFITE RD JOH N LIZE R RD SHADOWCREEK PKW Y /F M 2 2 3 4 STONERDSH 6 HARKEYRDBAIL EY RD YOSTBLVDODAYRDKINGSLEYDRM C H A R D R D KIRBYDRDIXIEFARMRDSH 6 BARRYROSERDSCARSDALEBLVDROYRDO IL E R DRSAVANNAHPKWYALMEDARD/FM 521MCLEANRDSH288SH288SH288CR90MAXRDMASTERS/FM1128SAM HOUSTON TOLLWAY/BELTWAY 8 SAM HOUSTON TOLLWAY/BELTWAY 8 ORANGE ST LIBERTY DRWALNUT ST SH288CULLEN PKWY / FM 865GARDEN RDM A I N S T / S H 3 5 MANVEL RD / FM 1128BRO A D W AY S T /FM 518 BUSINESSCENTERDRSOU THERNCR 94 / SMITH RANCH RDPEARLANDPKWYM C H A R D R D MAINST/SH 35B R OOKSIDE R D M A GNOLIA RD PEARLANDPKWYBROAD W A Y S T /FM518 M A I N S T / S H 3 5 S O U THWYCK PKWY MORG A NRDHUGHES RANCH RD MILLER RANCH RDSMITH RANCH RDCLEARLAKELOOPTRA ILSDRS O U T H F O R K D R HOUSTON ALVIN MANVEL FRIENDSWOODARCOLAIOWA COLONY BROOKSIDE VILLAGE E D C B A ¡CITY OF PEARLANDPolice Districts 0 0.5 1 Miles MAP PREPARED: OCTOBER 2015CITY OF PEARLAND GIS DEPARTMENT This product is for informational purposes and maynot have been prepared for or be suitable for legal,engineering, or surveying purposes. It does notrepresent an on-the-ground survey and representsonly the approximate relative location of propertyboundaries 1 in = 1 miles A B C D E Pearland City LimitsPearland ETJ 8 8 !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n!!n !!n!!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!n !!X"K !!X"K !!X"K!!n !!n PearlandRegional Airport To m B as sR eg io na l P a r k HATFIELDRDMYKAWARDNORTHFO RK D R BROADWAYST/FM518GARDENRDALMEDARD/FM521CULLENPKWY/FM865VETERANSDRB R O A D WAY ST /F M 5 18 M AIN S T / S H 3 5 BRO O KSI DE RD OLDALVINRDFITE R D B R O A D W AYST/F M 51 8 JOHN LIZ ER R D SHADOWCREEK PKWY FM /2 234 ROYRDSTONERDSH6 MANVELRD/FM1128FM521HARKEYRDDIXIEFARMRDHU G H ES RANCH RD S O U T H F O R K D R BAI LEY RD M C HA R D R D /FM 223 4 YOSTBLVDODAYRDBAILEY R DMILLERRANCHRDKINGSLEYDRCULLENBLVD M AIN S T / S H 3 5 M AG NO LI A RD M C H A RD R D KI RBYDRDIXIE FARMRDSH6 BARRYROSERDSCARSDALEBLVDPEARLANDPKWYSMITHRANCHRDMC H A R D R D ROYRDO IL E R DRS O UTHWYCK PKWY SAVANNAHPKWYALMEDA/FM521BUSINESSCENTERDRMCLEANRDSH288SH 288SH288CR90PEARLANDPKWYMAXRDM O RGANRDMAINST/SH35MASTERS/FM1128SMITHRANCHRDSOUTH E RNTRAILS DRCR94/CLEARLAKELOOPCULLENPKWYSAM HOUSTON TOLLWAY/BELTWAY 8 ORANGE ST LIBERTY DRWALNUT ST SH288ALVIN ISD PEARLAND ISD HOUSTON ISD PASADENA ISD FORT BEND ISDFRIENDSWOOD ISDCLEAR CREEK ISD Savannah Lakes Elementary San Jacinto College South Campus Dr. Dixie Melillo Middle School South Belt Elementary U of H - Clear LakePearland Campus E. A. Lawhon Elementary Barbara Cockrell Elementary C.J. Harris Elementary Pearland Jr. High EastPACE Center Pearland Jr. High West JamisonMiddle School H.C. Carleston Elementary Alexander Middle School Sheryl Searcy Ninth Grade Center PearlandHigh School Carden-Jackson School Robert Turner High School Pearland Jr. High South Rustic Oak Elementary Nolan Ryan Junior HighMary Burks Marek Elementary Laura Ingalls Wilder Elementary Glenn York Elementary Challenger Elementary Glenda Dawson High School Magnolia Elementary Rogers Middle School Berry Miller Junior HIgh Massey Ranch Elementary Silverlake ElementarySilvercrestElementary Dr. James Red Duke Elementary Shadow Creek High School (Future) Mark Twain ElementaryManvel High School Don Jeter Elementary Manvel Jr. High @ Rodeo Palms Leon Sablatura Middle School ShadycrestElementary ¡CITY OF PEARLANDSchool Districts 0 0.4 0.8 Miles This product is for informational purposes and maynot have been prepared for or be suitable for legal,engineering, or surveying purposes. It does notrepresent an on-the-ground survey and representsonly the approximate relative location of propertyboundaries 1 in = 1 miles MAP PREPARED: OCTOBER 2015CITY OF PEARLAND GIS DEPARTMENT !!X"K Higher Education !!n Alvin ISD !!n Clear Creek ISD !!n Fort Bend ISD !!n Houston ISD !!n Pasadena ISD !!n Pearland ISD Alvin ISD Clear Creek ISD Fort Bend ISD Friendswood ISD Pasadena ISD Pearland ISD Pearland City Limits Houston ISD Pearland ETJ 9 9 City of Pearland, Texas Organization Chart Office of the City Manager Assistant City Manager City Engineer Projects Engineering Public Works Operations Water & Sewer Traffic Operations Facilities Right of Way Executive Manager of Development Services & PEDC President Pearland Economic Development Corporation Community Development Planning Building Inspections Fire Fire Marshal Code & Health Enforcement Police IS/GIS Deputy City Manager Parks & Recreation Finance & Purchasing City Secretary HR/Organizational Development Communications Convention & Visitors Bureau Municipal Court Management Analyst Animal Services 10 10 CITY OF PEARLAND, TEXAS CITY MANAGEMENT Elected Officials Position Tom Reid Mayor Tony Carbone Councilmember, Position One (Mayor Pro Tem) Derrick Reed Councilmember, Position Two Gary Moore Councilmember, Position Three Keith Ordeneaux Councilmember, Position Four Greg Hill Councilmember, Position Five Appointed Officials Clay Pearson City Manager Darrin Coker City Attorney Letitia Farnie Municipal Court Judge, Presiding City Management Jon Branson Deputy City Manager Trent Epperson Assistant City Manager Matthew Buchanan Executive Manager of Developmental Services and President, P.E.D.C. Young Lorfing City Secretary Chris Doyle Police Chief Vance Riley Fire Chief Eric Wilson Director of Public Works Claire Bogard Director of Finance Michelle Graham Director of Human Resources Lata Krishnarao Director of Community Development Chris Orlea Director of Parks & Recreation Kim Sinistore Executive Director of Convention and Visitors’ Bureau Andrew Fearn Head Librarian* Sparkle Anderson Communications Manager Jennifer Huhn Municipal Court Administrator Daniel McGhinnis Chief Information Officer *Employee of Brazoria County serving in cooperation with the City of Pearland 11 CITY OF PEARLAND, TEXAS STRATEGIC PRIORITIES In March 2015, based upon prior feedback and citizen perception survey information, staff presented to Council a set of Strategic Priorities to guide organizational development, budgeting, and performance measurement. In May 2015, the City Council adopted the City of Pearland Strategic Priorities shown to the right. The 2015 Comprehensive Plan adopted by the City Council in September 2015 and the Pearland 20/20 economic development Plan developed by and adopted by the Pearland Economic Development Board in 2013 reflect elements of these Strategic Priorities as well. The 2015 Comprehensive Plan encompasses the growth capacity of the City, infrastructure to support the growth, mobility issues, housing and neighborhood planning, economic development, parks and tourism, and land use and character. The Pearland 20/20 Strategic Plan includes economic development, City beautification and aesthetics, mobility, recreation and culture, and educational and work opportunities in Pearland. The purpose of the City Council Strategic Priorities is to provide a framework of long-term goals for the future. The traditional Organizational Chart establishes the functional grouping of employees and the chains of command critical to productivity. Whereas these Strategic Priorities are designed to guide Pearland to the next level of success, as an economically, financially and structurally sustainable city and a high performing organization by linking long term goals to day-to-day inputs and outputs; establishing an intentional connection between actions and outcomes. 1. Fiscally Responsible Government Operating a fiscally responsible government entity involves the embodiment of general principles of accountability and transparency into a system of decision-making. The sense of “public trust” prevails over the individual interests of a system’s professionals, executives or elected officials. The amalgamation of checks, balances and controls provides the expectations for public stewardship and reinforces the City’s commitment to continuous improvement. Local government officials are custodians of the public trust in ways that should maximize the benefit of taxpayer dollars to its residents and visitors as well as the corporate and small business partners that make up the commercial entities that reside in our City. In support of this Priority, the FY 2016 General Fund recognizes successful growth in the City’s net property valuation increase. Included in the FY 2016 Water/Sewer Fund is a revenue and rate increase to meet the requirements of the Bond Coverage and cash reserve ratio. Also included in the Water/Sewer Fund is $70,000 toward the purchase of a new water/sewer rate model to more efficiently calculate the rates. The Comprehensive Plan and 20/20 Plan encompass this Council Strategic Priority via patterns of development that support the City’s long-term financial health; a commitment to sustained budget support for reinvesting in infrastructure maintenance, for public safety to maintain levels of service 12 and responsiveness commensurate with projected growth and resident expectations; and to identify sustainable funding sources to support the landscape maintenance protocol. 2. Sustainable Infrastructure Public infrastructure provides the foundation on which our community is built. Street overlays, sidewalk installations, ditch-cleaning, water-production and purchases and new project completions are some of the main functions provided by the City to ensure effective growth, support and maintenance of public infrastructure. These items are the unsung heroes of a community. When they are working great, they are seldom noticed. A growing city like Pearland is still strengthening its “bones” of roads and utilities and must balance the immediate maintenance needs with the importance of looking ahead. The FY 2016 General Fund budget includes $915,512 for street maintenance and $537,114 for sidewalk maintenance. The Water/Sewer Fund includes $350,000 for 21 chemical containment walls at 11 plants and meter testing and replacement at $74,433. In addition, $35,000 is budgeted in a City-wide donation fund for the rehabilitation of the Animal Services building. The Capital Improvement Program (CIP) addresses a majority of the City’s infrastructure. Included in the FY 2016 budget are two detention pond projects; four facility renovation/expansion projects, twelve street projects (widening, reconstructions and extensions), eight water and twelve wastewater projects. The Comprehensive Plan includes a system that safely accommodates all modes of travel including vehicular, pedestrian and bicycle. And the 20/20 Plan includes the continued planning, design and construction of priority road and highway projects. 3. Quality Parks, Recreation and Events The City of Pearland strives to be a regional destination by providing exceptional recreation and cultural programming and quality facilities for residents and visitors alike. The City is also committed to enriching the quality of life of our community by maintaining community parks, trails and green space, promoting recreational activities through creative programming for people of all ages and abilities while protecting open space and natural resources for future generations. Included in the Capital Improvement Program for FY 2016 are three parks improvement projects, the building of a Nature Center, and the construction of a Trail. The General Fund includes funding for a full year of operations of two new parks – Shadow Creek Ranch Park and Hickory Slough Sports Park. Priorities within the Comprehensive Plan include providing greater focus on early land acquisition to address future parkland needs in prime growth areas of the community, plus immediate developer provision of park facilities in new subdivisions versus land dedication; the ongoing implementation of the Trail Master Plan with a particular focus on connectivity improvements around residential neighborhoods; and the expanded recreation/cultural/entertainment amenities to enhance residents’ quality of life, reduce the “leakage” of such economic activity to destinations outside the City, and draw more visitors and tourism dollars to Pearland. The 20/20 Plan includes the pursuit of a multi-purpose events venue in Pearland, with related lodging and hospitality uses, as well as locating and securing parcels for development of additional athletic fields for use by residents and competitive tournaments. This fiscal year, staff is working to update the Parks Master Plan, a critical planning document for parks, recreation and green space throughout the City and a necessary component of securing future grant funding. 13 4. Safe Community The City works every day to maintain a high quality of life by providing a safe and peaceful environment within the City of Pearland for all residents and visitors. Police professionals work to analyze patterns and work with residents and businesses for preventing crimes and deter behaviors that lead to vehicle crashes that injure people and cause property damage. Our growing ranks of Fire staff work to educate residents about home safety and ensure compliant workspaces that are safe. The team looks at patterns to be in the best places for required response to fires and medical emergencies. Safe Community is more than traditional narrow definitions of Police and Fire. A Safe Community encompasses City’s Animal Services, Health/Code Enforcement, Building Inspections – infrastructure and fire, and Public Works, with the maintenance of streets, sidewalks, water quality, and many others. Moreover, the safe community that Pearland is results from active neighbors who are informed and partnerships with the plethora of social service agencies, other law enforcement agencies and fire protection support through mutual aid and other public support. In support of this priority, the adopted budget includes eight new Police Officers, four Sergeant upgrades, fifteen (9 full-time, 6 part-time/paid-volunteer) Firefighters, and one Health/Code Enforcement Officer were funded for FY 2016 to address this priority. In addition, a Fire ladder truck, an ambulance, eight Police vehicles, and two Animal Services trucks have been funded for FY 2016. This fiscal year, the Police Department will work with an outside consultant to conduct a full staffing & utilization study which will provide a planning tool to assess current practices and provide a customized approach to Pearland’s situation for planning purposes. In Public Works, several water and wastewater projects are budgeted for FY 2016 within Capital Projects and are listed under the Sustainable Infrastructure priority, and a Chemical Feeder is budgeted in the Water/Sewer Fund at $25,000. The Comprehensive Plan addresses development of a mobility system with adequate connectivity to provide multiple travel options, accommodate cross-town trips, and ensure effective emergency response; sidewalk network upgrades; and pedestrian/bicycle accommodation on commercial sites. The 20/20 plan prioritizes the development of congestion management strategies. 5. Engaged Community The City is committed to keeping its citizens informed by various means. The City website posts the latest news, City Council and Boards and Commissions meetings, financial and other reports of interest, methods of payment for City services, the ability to sign up for Parks Recreation classes, the ability to volunteer at the Animal Shelter or apply for adoption, and report issues, such as street light outages, etc. In addition, the City distributes publications annually and posts information and live and taped Council meetings via a City public educational government television station (PEG), as well as on the website. For FY 2016, the City has budgeted $140,000 for the improvement of audio visual, public announcement system and other PEG capital needs associated with the renovation and expansion of the Council Chamber dais and chamber, and $49,650 toward the build-out of the studio and purchase of equipment. The Visitors’ Convention Bureau (CVB) will be working on a Pear Art Trail Project in the coming year to engage local artists in creating art throughout the City, and funding of $60,000 in Hotel/Motel Funds for grants for artists and development of the project. Supporting events and outreach to bring Pearlanders together as one community is one of the priorities of the Comprehensive Plan. The 20/20 Plan includes identifying the optimal location for a multi-use events center that will provide stakeholders with a dynamic local venue for performing arts, civic gatherings, special events, and touring acts; and creating, programming and staffing a unified arts organization in Pearland; engage local organizations, private businesses, and neighborhood groups as planning partners to establish a City-led task force to coordinate elements of a beautification strategy; and the City provides a mobile phone and tablet application enabling Pearland residents and businesses to report code violations wirelessly. 14 6. Healthy Local Economy The local and regional economies have been the driving forces behind much of the growth in Pearland over the last decade. The City continuously strives to build and support the local economy. Revenues from property taxes that result from development incentives, sales and hotel occupancy tax revenue are some of the items that are considered in determining the health and vibrancy of our local economy. Economic growth and quality development are critical aspects of our City’s ability to serve citizens with the quality of life, mobility and access to services they require. In FY 2016, a Small Business Coordinator and a Plans Examiner are budgeted for the Permits & Inspections department. These positions will assist developers and residents with the process from permit application to inspection, increasing efficiency and reducing the timeline from start to finish of a building project. The Pearland Economic Development Corporation has budgeted over $3.5 million toward incentives for further commercial/business development, bringing jobs and tax revenues to the City. The Comprehensive Plan priorities include a system that supports local economic development and tax base growth through the City’s own investments in transportation infrastructure, plus those it gains through advocacy with other agencies and levels of government that administer transportation funding. The 20/20 Plan includes developing a method to ensure that relocation prospects are efficiently and effectively supported and managed; the building of a competitive portfolio of “shovel- ready” Pearland development sites; enhancing efforts to attract key segments of the health care sector to Pearland; optimizing a program to retain and expand existing Pearland employers; and ensuring Pearland’s retail sector remains vibrant. The Pearland Economic Development Corporation (PEDC) has adopted a multi-year plan to improve the aesthetics of the main entrances into the City by funding the construction and installation of pillars, landscaping and signs. 15 STAFFING LEVELS FY 2016 ADOPTED BUDGET The number of budgeted Full-time Equivalent (FTE) positions totals 728, a net increase of 24.5 for FY 2016, a 3.5% increase in FTE, all in the General Fund. Of the 24.5, 22.0 are in Public Safety. Employees by Service Area The chart below illustrates the 728 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). Public Safety accounts for 51%, or 369.5 FTE’s, for the City, as services are provided 24 hours a day, 365 days a year. 16 STAFFING LEVELS FY 2016 ADOPTED BUDGET 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. FY 2016, population comes with an estimated moderate growth of 1.5%, while the Full- time Equivalent staff of the City of Pearland increases by 3.5%, particularly in Public Safety, due to the opening of a new Fire Station and additional Police Officers for visibility and response, which results in an increase of FTE per 1,000 population from 6.26 in FY 2015 to 6.39 in FY 2016. Fiscal Year FTE Population No. of Employees Per 1,000 Population 2011-12 633.5 97,200 6.52 2012-13 651.5 103,800 6.28 2013-14 686.0 106,500 6.44 2014-15 703.5 112,300 6.26 2015-16 728.0 114,000 6.39 17 FY 2016 FY 2016 FY 2014 FY 2015 FY 2016 FY 2016 FY 2014 FY 2015 FY 2016 FY 2016 Total Total AMENDED AMENDED REQUESTED ADOPTED AMENDED AMENDED REQUESTED ADOPTED Headcount FTE General Government City Manager 4.00 4.00 4.00 2.00 2.00 2.00 6.00 5.00 City Secretary 4.00 4.00 4.00 4.00 4.00 Finance 17.00 17.00 17.00 1.00 1.00 1.00 18.00 17.50 Human Resources 7.00 7.00 1.00 8.00 8.00 8.00 Information Systems 6.00 7.00 7.00 7.00 7.00 Information Systems GIS - GF 2.00 2.00 2.00 2.00 2.00 Information Systems GIS - W/S 4.00 3.00 3.00 3.00 3.00 Legal 5.00 5.00 5.00 1.00 1.00 1.00 6.00 5.50 Utility Customer Services 18.00 11.00 11.00 4.00 4.00 4.00 15.00 13.00 General Government Total 67.00 60.00 1.00 61.00 8.00 8.00 0.00 8.00 69.00 65.00 Public Safety Fire Dept. Administration 9.00 9.00 1.00 1.00 2.00 3.00 12.00 10.50 Fire Operations*82.00 75.00 9.00 84.00 59.00 62.00 6.00 68.00 152.00 118.00 Fire Marshal 7.00 7.00 7.00 2.00 2.00 2.00 9.00 8.00 Health & Code Enforcement 6.00 7.00 1.00 8.00 8.00 8.00 Police Department 194.00 203.00 8.00 211.00 7.00 7.00 7.00 218.00 214.50 Animal Services 10.00 10.00 10.00 1.00 1.00 1.00 11.00 10.50 Public Safety Total 299.00 311.00 18.00 329.00 70.00 73.00 8.00 81.00 410.00 369.50 Public Works Public Works Oper. Admin.1.75 2.00 2.00 2.00 2.00 Facilities Maintenance 5.00 5.67 5.67 5.67 5.67 Custodial Services 2.00 2.00 2.00 2.00 2.00 Fleet Maintenance 7.00 4.00 4.00 4.00 4.00 Streets & Drainage 17.00 16.00 16.00 16.00 16.00 Public Works ROW 3.00 3.00 3.00 3.00 Traffic Operations 6.00 6.00 6.00 6.00 6.00 Public Works Water/Sewer Admin.7.33 7.33 7.33 7.33 Lift Stations 10.00 7.00 7.00 7.00 7.00 Wastewater Treatment 14.75 15.00 15.00 15.00 15.00 Water Production 15.00 15.00 15.00 15.00 15.00 W&S Distrib. & Collect.27.50 23.00 23.00 23.00 23.00 W&S Construction 13.00 9.00 9.00 9.00 9.00 Public Works W&S ROW Mow 7.00 7.00 7.00 7.00 Water Meter Service 7.00 7.00 7.00 7.00 Public Works & Engr. Admin.3.00 2.00 2.00 2.00 2.00 Engineering 12.00 12.00 12.00 12.00 12.00 Capital Projects 9.00 10.00 10.00 10.00 10.00 Public Works Total 143.00 153.00 0.00 153.00 0.00 0.00 0.00 0.00 153.00 153.00 Community Services Community Develop. Admin.3.00 3.00 1.00 4.00 4.00 4.00 Planning 4.00 4.00 4.00 4.00 4.00 Permits & Inspections 13.00 14.00 1.00 15.00 2.00 2.00 2.00 17.00 16.00 Municipal Court 9.00 10.00 0.52 10.52 2.00 1.00 1.00 11.52 11.02 Communications 3.00 4.00 4.00 4.00 4.00 Community Services Total 32.00 35.00 2.52 37.52 4.00 3.00 0.00 3.00 40.52 39.02 CITY OF PEARLAND FY 2016 ADOPTED BUDGET AUTHORIZED PERSONNEL BY DEPARTMENT Function/Department Part-Time EmployeesFull-Time Employees 18 FY 2016 FY 2016 FY 2014 FY 2015 FY 2016 FY 2016 FY 2014 FY 2015 FY 2016 FY 2016 Total Total AMENDED AMENDED REQUESTED ADOPTED AMENDED AMENDED REQUESTED ADOPTED Headcount FTE CITY OF PEARLAND FY 2016 ADOPTED BUDGET AUTHORIZED PERSONNEL BY DEPARTMENT Function/Department Part-Time EmployeesFull-Time Employees Parks & Recreation Parks & Rec. Admin.7.00 7.00 7.00 1.00 1.00 8.00 7.50 Parks & Rec. Resource Dev.1.00 2.00 2.00 1.00 2.00 2.00 Parks Maintenance East 30.00 27.00 27.00 27.00 27.00 Recreation Center/Natatorium 8.00 9.00 (1.00)8.00 53.00 55.00 55.00 63.00 35.50 Westside Events Center 2.00 1.00 0.00 0.00 Athletics 2.00 2.00 2.00 4.00 4.00 4.00 6.00 4.00 Aquatics 4.00 4.00 4.00 4.00 2.00 Special Events 2.00 2.00 2.00 2.00 2.00 Senior Programs 2.00 3.00 3.00 3.00 3.00 3.00 6.00 4.50 Recycling 2.00 2.00 2.00 4.00 4.00 4.00 6.00 4.00 Parks & Recreation Total 56.00 54.00 (1.00)53.00 70.00 71.00 0.00 71.00 124.00 88.50 Economic Development 5.00 5.00 5.00 5.00 5.00 Convention & Visitors' Bureau 3.00 3.00 3.00 2.00 2.00 2.00 5.00 4.00 U. of Houston-Pearland 1.00 1.00 1.00 1.00 1.00 Municipal Court Security Fund 1.00 1.00 0.48 1.48 2.00 2.00 (1.00)1.00 2.48 1.98 Municipal Court Juvenile Services 1.00 1.00 1.00 1.00 1.00 Other Funds 11.00 11.00 0.48 11.48 4.00 4.00 (1.00)3.00 14.48 12.98 General Fund 494.75 508.67 20.52 529.19 148.00 151.00 8.00 159.00 688.19 608.69 Water & Sewer Fund 102.25 104.33 0.00 104.33 4.00 4.00 0.00 4.00 108.33 106.33 Total Other Funds*11.00 11.00 0.48 11.48 4.00 4.00 (1.00)3.00 14.48 12.98 Grand Total 608.00 624.00 21.00 645.00 156.00 159.00 7.00 166.00 811.00 728.00 *Fire Operations - Paid Volunteer Firefighters are included in the part-time count. Note: Seasonal positions are not included 19 FY 2016 ADOPTED BUDGET READER’S GUIDE TO THE BUDGET The Fiscal Year 2015-2016 budget document has been prepared and presented in an effort to comply with the guidelines and recommendations of the Government Finance Officers Association of the United States and Canada (GFOA) Distinguished Budget Presentation Awards Program. In order to be considered for the budget award, the following four areas must be included in the budget presentation: (1) the budget as a policy document, (2) the budget as a financial plan, (3) the budget as an operations guide, and (4) the budget as a communications device. A brief explanation of these criteria is presented below. The budget as a policy document. This involves including a statement (or statements) of budgetary policies, goals, objectives, and strategies for the year and also an explanation of the budgeting process to the reader. Goals, objectives, and strategies are an integral part of this document, which we believe satisfy this requirement. The budget as a financial plan. This criterion involves including an explanation of the financial structure and operations of the City. The City’s major revenue sources and fund structures are defined and amplified. The budget contains an all-inclusive financial plan for all funds and resources of the City, and also includes a multi-year financial forecast. Included are projections of financial condition at the end of the fiscal year, projections of financial activity, and historical comparisons. The budget also presents a consolidated picture of all operations and financing activities in a condensed format. An explanation of the budgetary accounting basis (cash basis, modified accrual basis, or other acceptable method) was employed in the development of the budget. The budget summary section, as well as the various fund and department summaries, satisfies this requirement. The budget as an operations guide. This criterion involves explaining the relationship between organizational units (departments) and programs. An organizational chart, description of the departmental organizational structure, services, and staffing levels, with historical comparisons, are also included. Explanations of how capital-spending decisions will affect operations are offered. These issues are addressed throughout the document. The budget as a communications device. The budget document is available to the public at the City Secretary’s Office in City Hall and at the Pearland Branch Libraries, as well as on the City’s website. 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, and included charts, graphs, and glossary for understandability and usability. Efforts are made to explain the basic units of the budget, including funds, departments or activities, and disclosing sources of revenues and explanations of revenue estimates and assumptions. This information is contained in the transmittal letter and budget summary sections. In summary, each of the above four criteria is recognized by the GFOA as an integral part of any budget document in order to convey to the reader the goals and objectives the City will address during the year and how those goals and objectives will be met and measured. We have attempted to present these goals and objectives to the reader in such a manner that any reader, regardless of the reader’s financial background or knowledge, will be able to gain a basic understanding of them. Organization of the Budget Document Transmittal Letter includes the City Manager’s budget message to City Council. Introduction includes an introduction to Pearland, City demographics and statistics, and area maps, the City’s Organization Chart, list of City Management, City Council Strategic Priorities, staffing levels, Reader’s Guide to the Budget, and the fiscal year 2016 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, funded supplemental requests, staffing changes, 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. 20 READER’S GUIDE TO THE BUDGET 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 Revenues, 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 2016. 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 three graphs - government debt to maturity, debt to assessed value, and net bonded debt per capita. 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 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, as well as an overview of the Solid Waste Fund with revenues and expenses, goals, accomplishments, objectives and performance measures. Capital Project Funds Section includes an overview, a summary schedule of revenues and expenditures by Capital Project Fund followed by a brief 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 – Property/Liability Insurance and Medical Self-Insurance. The revenue and expense summaries are also included. PEDC Section includes a description of Component Units, an organization chart, an overview of the Pearland Economic Development Corporation (PEDC), a revenue and expenditure summary with fund balance with staffing summary, goals, accomplishments, objectives and performance measures, followed by debt to maturity schedules and graph. Appendix A includes the City’s Charter Article 8, Municipal Finance; the adopted Tax and Budget Ordinances; the adopted General Staff, Police and Fire Pay Plans; the adopted Usage and Service Fees Ordinance; and Developmental Fees Ordinance. Appendix B includes new personnel funded and a list of supplemental and capital requests received from departments and whether or not the requests were funded. Glossary Section includes the glossary and acronyms. 21 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 meas- ured instead of profitability. The main purpose of the Fund system is stewardship of financial resources to ensure funds are received and expended in compliance with legal requirements. Funds are established to ensure ac- countability 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. 22 BUDGET OBJECTIVES AND PHILOSOPHY BUDGET OBJECTIVES The FY 2016 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 2016 budget is similar to information presented in previous budget documents. The accounting and financial treatment that applies to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. BASIS OF BUDGETING GOVERNMENTAL FUNDS The governmental fund types use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are budgeted when they are measurable and available and expenditures are budgeted in the period in which the liability is incurred, which is in accordance with Generally Accepted Accounting Principles. “Measurable” means the amount of the transaction can be determined and “available” means the collectible period. The City considers the majority of its major revenues as available when collected. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as liabilities when due. Those revenues susceptible to accrual under the modified accrual method are property taxes and other taxes, intergovernmental revenue, and interest revenue. Licenses and permits, including fines and forfeitures revenues, are not susceptible to accrual because generally they are not measurable until received in cash. The fund balance approach of governmental funds or working capital approach can be identified as current assets less current liabilities. Governmental funds budget capital outlays as expenditures, but do not budget for non-cash expenditures such as accruals for sick and vacation liabilities and depreciation. PROPRIETARY AND INTERNAL SERVICE FUNDS The Water and Sewer Enterprise Fund, Solid Waste Fund, and Property Insurance Fund are budgeted using a flow of economic resources, which is similar to the accrual basis of accounting, with exceptions listed below. Available balances are determined using the cash equivalent approach: cash + investments + accounts receivable + prepaid expenses – accounts payable = cash equivalent available. 23 BASIS OF BUDGETING AND ACCOUNTING • Revenues are budgeted in the period they are earned and measurable, • Expenses are budgeted in the period in which the liability was incurred, • Depreciation of assets is not budgeted, • Capital outlay is budgeted as an expense in the year purchased, • Principal payments are budgeted as an expense rather than a reduction to the liability, • Proceeds from bond sales are budgeted as revenue, and • Transfer of bond proceeds to the Capital Projects Fund is budgeted as an expense. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and fiduciary funds are accounted for using the modified accrual basis. Revenues are recognized in the accounting period when they are measurable and available. Revenues subject to accrual include interest income and charges for services. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable. Capital outlays are recorded as additions to fixed assets at fiscal year-end and the cost of those assets are depreciated over their estimated useful lives for the government-wide financial statements. All proprietary funds are accounted for on an accrual basis. Revenues are recognized in the period in which they are earned and become measurable and expenses in the period in which they are incurred and measurable. Proprietary funds also record depreciation and amortization. Payment of principal is recorded as a reduction to the long-term liability. GOVERNMENT-WIDE FINANCIAL STATEMENTS (GASB 34) The City of Pearland fully implemented government-wide financial statements with the year ended September 30, 2007. The government-wide statements present information about the City in a manner similar to those used by private sector companies. These statements, which can be found in the City’s Annual Comprehensive Finance Report, include all assets and liabilities on an accrual basis of accounting, which is similar to the basis of accounting used by most private sector entities. The City has realized no impact to the annual budget based on the new reporting model. BUDGET PROCEDURES The budget process begins with the distribution of budget instructions to the department heads. Each department receives 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, and next fiscal year supplemental request, for a next year total request. This financial information is to be used by the department heads as a guide to complete the proposed budget. It is assumed that the prior year’s financial needs are responsible indicators of future base financial needs and the budget is projected on this basis. For FY 2016, departments’ base operating budgets were calculated by the Budget Office and were based off of FY 2014 actual expenditures, less non-recurring expenditures, plus known impacts, such as operating costs from completed capital projects. Departments then allocated their base budget amount to their individual line items. Supplemental requests for capital, annexation, growth and development or other items that 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. 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. 24 BUDGET PROCEDURES The following procedures are followed for formal adoption of the budget: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1, which must be adopted by the last regularly scheduled Council meeting 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. 25 CITY OF PEARLAND DETAILED BUDGET CALENDAR FOR FY 2016 CIP SCHEDULE IS IN BOLD-ITALICS JANUARY 5 Budget Office Distributes Five-Year CIP worksheets and instructions to all departments (2-phase approach for new and existing). • Call for new projects including timing, scope, justification, costs and O&M. 5-30 Budget Office staff meets with department directors to explain process and work with departments on known FY16 financial impacts, reorganizations/changes. 30 New projects due to Finance FEBRUARY 2 Begin reviewing existing projects, including timing, scope and costs 2-13 Update of price estimates for computers, vehicles, phones, copiers for budget instructions 23 Updates to existing projects due to Finance 16-27 Budget Office prepares salary & benefit projections, replacement vehicle and computer lists MARCH 2-31 Departments contact HR, Fleet, Facilities and IT if requesting: • New positions (need Job Assessment Tool for positions not on the current salary schedules) • New vehicles • Facility repairs or refurbishing • New computer and computer-related software and equipment 2 Review projects with Assistant City Manager 7 Council Retreat – Goals/Objectives, priorities, discussion and direction 9-13 Budget Office sets up HTE for entering budget FY2015-16; prepare instructions/powerpoint & screen shots for workshop; send reminder to departments of March 25 workshop 16-23 Budget Office enters base and projected personnel budgets into HTE 20 Budget Office prepares pre-preliminary Income Statements on major funds (General Fund, Debt Service, W ater & Sewer) 23 Budget Office distributes to Directors/Department Heads budget instructions and allocations to base FY 2016 budgets 23 Meet with Assistant City Manager and City Manager for review of projects 25 Budget Workshop (Kick-off) Noon-5:00pm 30 Make changes to CIP, compile list for P&Z review 26 DETAILED BUDGET CALENDAR FOR FY 2016 CIP SCHEDULE IS IN BOLD-ITALICS APRIL 2 Dept budgets due back to Finance with all supporting documents: • Projections • Appeals to base • Supplemental requests (limited) 20 Present Five-Year CIP to Planning & Zoning Board – first review 27-30 Management and Finance meet with departments to review supplemental requests and appeals to base to review for potential consideration/changes; begin preparing roll-ups and maintaining change sheet 29 Budget Office updates revenue projections/estimates for current and next fiscal year MAY 1-29 Budget Office revises preliminary GF and W&S roll-up based on department submissions and discussions 4 P&Z second review and recommendation to the City Manager 7 Budget Office receives PEDC budget for review 9 City Elections 11 Final changes made to CIP 15 Budget Office finalizes small funds and inter-fund transfers 18 Swearing in of new Council Member(s) 18 Finance to finalize project funding sources and impacts to the annual budget 25-29 Budget Office updates major funds (revenues and expenditures); gets current salary schedules from HR; gets updated Workers’ Comp and SUI rates 28 PEDC Board review of budget 30 Preliminary property tax rolls received JUNE 1-5 Budget Office reviews funds with CM and ACM/DCM with recommended funding list and funds availability Finalize projects, fund statements, and review with the City Manager Build CIP into multi-year forecasts 1-26 Budget Office reviews and updates revenues, payroll/salaries, benefits and meets weekly with CM, CDM/ACM 1-26 Budget Office prepares and finalizes multi-year forecast 29- Finance Office updates Water/Sewer Rate Model and finalizes budget for all funds and forecasts and July 3 submits to City Manager 27 DETAILED BUDGET CALENDAR FOR FY 2016 CIP SCHEDULE IS IN BOLD-ITALICS JULY 1-24 Budget Office finalizes FY 2016 budget & CIP for Council: budget document and power point for City Manager’s signature/approval and Council presentation 14 First Reading of Ordinance to amend current year budget to reflect projections 27 City Manager’s recommended budget filed with the City Council; CIP submitted to City Council Second and Final Reading of Ordinance to amend current year budget to reflect projections 28 Budget Office sends proposed budget document to Communications Office to post to City website AUGUST 3 CIP workshop with City Council Budget Discussion #1: Overview and Highlights, Property Tax, Debt Service Fund, General Fund, General Fund Fee Increases, General Fund Five-Year Forecast, General Fund (Scenario 2) and Other Funds 10 Budget Discussion #2: Effective Tax Rate Information, Five-Year CIP for General Government, Future Bond Referendum Scenarios – Potential Projects and Debt Service Fund Five-Year Forecast 17 Council Special Meeting: Record vote on proposed tax rate, schedule public hearings on tax rate and schedule public hearing on budget Finance Office send Notice of Tax Rate Increase to newspaper, City website and municipal channel Finance Office send Budget Public Notice to newspaper, City website and municipal channel 24 Budget Discussion #3: Five-Year CIP for water/sewer, W ater/Sewer Fund, W ater/Sewer Five-Year Forecast and water/sewer rates and other water/sewer fees 31 Public Hearings and Budget Discussion #4: first public hearing on tax rate, public hearing on budget and follow-up budget discussion Mission/Goals/Performance Measures due to Budget Office for inclusion in FY16 Budget document Budget Office begins to finalize adopted budget document for printing, website and GFOA award application SEPTEMBER 8 Public Hearing and Budget Discussion #5: second public hearing on tax rate and follow-up budget discussion 14 First reading of Ordinance to adopt tax rate, first reading of Ordinance to adopt budget and pay plans, and first reading to adopt fee changes 21 Second and final reading of Ordinance to adopt tax rate, second and final reading of Ordinance to adopt FY 2016 budget, pay plans, second and final reading to adopt fee changes and resolution to adopt Five-Year CIP Budget Office continues to finalize adopted budget document for printing, website and GFOA award application OCTOBER-NOVEMBER TBD CIP book sent to printer, distributed Budget book sent to printer, distributed Budget Office sends CIP and Adopted Budget to Communications to post to City website 28 FUNDING HIGHLIGHTS FY 2016 ADOPTED BUDGET Review of Funding Highlights By Strategic Priorities Funded Supplemental Requests By Strategic Priorities Revenue Enhancements By Fund - By Department Staffing Changes By Fund ♦ General Fund ♦ Water / Sewer Fund – no changes ♦ Other Funds – no changes 29 FUNDING HIGHLIGHTS FY 2016 ADOPTED BUDGET By Strategic Priority ENGAGED COMMUNITY Pear Trail and Arts Grants – Hotel/Motel Occupancy Tax $ 45,000 The creation of a Pear Art Trail would bring the “Pear” to the forefront as the symbol and brand of Pearland in addition to contributing to the arts in the City. The project will be led by a group of artists, art organizations, art-oriented leaders and certain City of Pearland departments. The project outline includes raising sponsorships, establishing partnerships, developing locations, finding artists and developing the standards/criteria for Pear designs. The request is to provide $30,000 for the purchase of the pre-cast molds and $15,000 added to the Arts Grants to provide funds towards a maximum of $5,000 each grant for the Pear Art Trail Project. SAFE COMMUNITY Fire Department – General Fund $2,313,685 Nine (9) full-time, 3 part-time, and 3 volunteer/paid Firefighters (12 FTE), including gear, are added to fulfill the need for additional personnel to staff Station #2 opening in fall 2015. In addition, a full year of funding for Station #3 is included, along with supplies and equipment for both stations, for a total of $927,703, of which $111,888 is non-recurring. In order to schedule and evaluate volunteer Firefighters and remain in compliance with the Fair Labor Standards Act (FLSA), volunteer Firefighters are to be converted to the classification of employee. Therefore, the City will convert volunteer Firefighters to part-time paid Firefighters - $168,522. Volunteer Firefighters have been receiving a stipend, although at a lesser rate than a part-time employee. One ladder truck and one ambulance will be purchased to replace aged apparatus - $1,160,000. The ladder truck will be funded via lease/purchase. A new Health/Code Enforcement Officer is added to maintain/increase the frequency of food establishment inspections to twice a year, according to the City’s Code for food establishments and other businesses - $57,460. This position is budgeted to begin 4/1/16. Police Department – Patrol – General Fund $ 875,015 Included in the budget are funds for eight (8) full-time Police Officers (funded for 6 months, beginning April 1, 2016) with 2 vehicles and the upgrade of 4 current Officers to Sergeant, with vehicles. There is a supervisory need for the Patrol Division squads; the allotment of personnel exceeds the span of control for the two current supervisors. The distances to be covered and the types of calls (disturbances, major accidents, pursuits, use of force incidents) necessitate scheduling a minimum of 3 supervisors daily. The addition of 8 full-time Police Officers fulfills the City goal of maintaining visibility and response in neighborhoods, shopping areas, and on the streets. In addition to increasing general patrol, the addition of officers will allow proactive patrol efforts and the ability to increase staff in the Crimes Investigation Unit with two Sergeants to focus on personal crimes and property crimes. Police Staffing and Utilization Study – General Fund $ 150,000 As the City of Pearland continues to develop and grow, Public Safety becomes a more complex task. Increased demands and changing expectations need to be met using limited resources. A comprehensive third-party review allows the City to benchmark operations to other agencies and objectively assess what is already working well and what needs refinement in order to provide responsive and cost-effective service to the community. The staffing part of the study will include the number of officers and the organizational structure, while the utilization portion of the study will review when, where and how all of the resources are allocated to accomplish the organization’s goals and objectives. The study will take a comprehensive view of the department including staff, equipment, training, software/technology, facilities and other resources. 30 FUNDING HIGHLIGHTS HEALTHY ECONOMY Community Beautification – Pearland Economic Development Corporation $3,350,000 In fiscal year 2016, the Pearland Economic Development Corporation (PEDC) budget includes $350,000 for design work for the Broadway/SH288 intersection as part of the SH288 intersection enhancement. This is in addition to $319,500 projected for fiscal year 2015. $1.1 million is also budgeted for community entryways and beautification improvements to corridors at Cullen, Pearland Parkway, Dixie Farm Road and Kirby Drive, and $1.9 million is budgeted for SH35 streetscape design and construction and infrastructure improvements. Small Business Coordinator – General Fund $ 38,950 The City is creating a new position to focus on assisting small business entrepreneurs and developers from the planning process through obtaining building permits. The position is created to provide one- on-one assistance to streamline the process for the small developer/business owners. This position is budgeted to begin 4/1/16. SUSTAINABLE INFRASTRUCTURE Chemical Containment Wall – Water/Sewer Fund $ 350,000 Replace 21 aging and deteriorating chemical containment structures at 11 of the City’s water production facilities. TCEQ requires ground water to be treated and tested before it enters the public drinking water system. Chemicals used to treat the water are trucked to the sites in containers which are placed within the walls of the containment system. Corridor Traffic Signal Timing – General Fund $ 50,000 Fiscal year 2015 will mark the completion of an HGAC funded program to integrate all of the City’s traffic signals into a single system with the capability to remotely monitor, change and adapt traffic signal timing. The signal system project provides the backbone from which significant traffic management efficiencies can be realized. New traffic signal plans are needed to utilize the high performance capabilities of the system. Street Maintenance – General Fund $ 915,512 In fiscal year 2015, Public Works presented the results of the ROW assessment study, where the results reflected that approximately $3.75 million is required annually to maintain street paving infrastructure at its current condition (PCI) rating of 76. In an attempt to fund the entire $3.75 million street maintenance in the operating budget, the City anticipates raising the street funds each year until reaching the needed funding level anticipated in 2020. The City has increased street funding from $432,139 at the beginning of the 2015 fiscal year to $915,512 for the 2016 fiscal year. The City anticipates spending 100% of the funds on subdivision streets such as Glenda Street, Robert Street, Nancy Street and Robinson Drive. PARKS, RECREATION & EVENTS New Park Openings – General Fund $ 709,811 Two new parks will be open in FY 2016 – Shadow Creek Ranch and Hickory Slough Sportsplex. The budget includes funding for a full year of maintenance, utilities and equipment. There are no new personnel added to the budget. Existing personnel who previously maintained the detention ponds and rights-of-way that were transferred to Public Works will maintain the new parks. The Shadow Creek Ranch park includes a multi-purpose sports complex. The Hickory Slough Sportsplex includes 6 international sized soccer fields and pavilions, and softball fields for a total of 12 fields, approximately 4 of these are lighted. 31 FUNDING HIGHLIGHTS Southdown Park Playground Surface Replacement – General Fund/Park Development Fund $ 71,020 The current “fall zone” material for the play structures at Southdown Park are damaged and worn to the risk of injury. The current material will be removed and replaced with interlocking impact attenuating tiles, with a 10-year warranty. Purchasing interlocking tiles provides the opportunity to replace a specific area that is damaged without replacing the entire surface. This park is one of the City’s most heavily used parks. This project correlates with three of the strategic priorities: Safe Community, Sustainable Infrastructure and Parks, Recreation & Events. $51,020 would be funded from the General Fund and $20,000 from the Parks Development Fund for this zone. FISCALLY RESPONSIBLE Recycling Center – General Fund $ 128,155 The City is working with Keep Pearland Beautiful (KPB) to take over the operations of the Recycling Center effective January 1, 2016. The City has budgeted $200,000 for renovations at the Center for KPB offices, with KPB providing additional dollars for construction if needed. In addition, the City will provide up to $50,000 for the first and second year of operations. After the second year, the City will see savings of approximately $160,000 per year as a result of eliminating the costs of operating the Center, net the loss of associated revenues. In fiscal year 2015, $221,635 was budgeted in the General Fund to operate the Recycling Center. The proposed agreement will have KPB taking over the day-to-day operations of the facility. By making this change, the City will be able to eliminate the need for approximately 2,000 sq. ft. of office space for KPB at the new Nature Center, which will decrease the initial cost considerably to construct the facility. The result is a net increase of $128,155. Compensation and Medical Benefits – General Fund and Water/Sewer $1,619,811 A 2% cost-of-living increase for all employees has been budgeted for FY 2016 - $737,079, as well as the 3% annual step advance for Police Officers - $84,739. An additional $97,047 is budgeted in the Water/Sewer Fund for the cost-of-living increase for those employees paid from that fund, and $19,379 in other funds. In addition, a 2% increase in the minimum step on all pay plans, has been added at a cost of $72,498. Only employees below the minimum of their pay plan will receive this increase. Medical Premiums increased by 23%, for $499,086 budgeted in the General Fund, $102,311 in the Water/Sewer Fund for fiscal year 2016, as well as $7,672 in other funds, including PEDC. Rate Model – Water/Sewer Fund $ 70,000 The City’s current water-sewer rate model is seven years old. It is comprised of an Excel workbook with about 25 integrated worksheets and 3-year historical consumption information. Due to its age, convoluted integration, lack of room to grow and change in future assumptions (build-outs), staff is having to manually manipulate the calculations and information. The City is also getting a new utility financial system, the perfect time for a new rate model, possibly Windows based. Consumption and other assumptions would be updated along with staff training so that the model can be updated annually as part of the budget process. Enterprise Resource Planning – ERP– General Fund and Water/Sewer Fund $1,544,265 The City is replacing a 20-year old database system with a new system that will contribute to a more efficient workflow, eliminating duplication, reducing errors, and providing the ability to store data within a limited space. Fiscal year 2015 began the first of a 2-year implementation process. Fiscal year 2016 is the second and last year of implementation. The $1.6 million budget includes one-time expenditures of $867,265 for hardware and implementation of the software, and $90,100 held in reserve and for overtime; also included is $236,900 per year for a 5-year lease purchase. $350,000 is budgeted in the Water/Sewer fund for a pro-rata portion of the cost. Total Highlights $12,231,224 Totals by Fund: General Fund $ 7,819,815 Water/Sewer Fund $ 969,358 Hotel/Motel Occupancy Tax Fund $ 50,639 Park Development Fund $ 20,000 Pearland Economic Development Corporation $ 3,365,554 Other Funds (Special Revenues) $ 5,858 32 Strategic Priority / Division Supplemental Request Funded General Fund Water/Sewer Fund Other Funds Total Healthy Economy Permits/Inspections Plans Examiner to Assistant Building Official $7,085 $7,085 Permits/Inspections Plans Examiner - 9 months 53,059 53,059 Community Development Small Business Coordinator - 6 months 38,950 38,950 Sub-Total 99,094 99,094 Engaged Community Convention & Visitors' Bureau Pear Trail 30,000 30,000 Convention & Visitors' Bureau Arts Grants for Pear Trail Project 15,000 15,000 Sub-Total 45,000 45,000 Safe Community Fire Operations Convert Volunteer FF's to Paid 168,522 168,522 Health/Code Enforcement Nuisance Abatement 25,000 25,000 Fire Operations MDT’s for apparatus - replacements 50,452 50,452 Fire Operations SCBA Replacement Program (10% per year)60,000 60,000 Health/Code Enforcement Health Code Enforcement Officer & vehicle - 6 months 57,460 57,460 Fire Operations Lucas Device (replacement)15,000 15,000 Fire Operations CPAP & Vent (2), Cardia Monitor (replacements)12,704 12,704 Fire Administration Receptionist – 2 part-time, 12 months 30,405 30,405 Fire Operations Stryker stretcher, Stair Chair & Backboards (replacements) 38,636 38,636 Fire Operations Replacement SUV - U141 52,175 52,175 Police Patrol 4 Police Sergeant upgrades - 2, 12 mos. & 2, 6 mos.& 8 Police Officers & 2 vehicles - 6 months 890,365 890,365 Police Investigations Detective assignment pay 43,200 43,200 Police Traffic/Motorcycles Pano-scan Pointgun Scanner 68,000 68,000 Information Systems Semi-toughbooks for patrol cars 45,500 45,500 Information Systems Replace docking stations for police vehicles 43,125 43,125 Traffic Maintenance Annexation – Signs, Hardware, Lane markings & sign poles 34,144 34,144 Municipal Court Part-time Bailiff to Full-time 21,553 5,239 26,792 Water Production Chemical Feeder 25,000 25,000 Sub-Total 1,573,241 25,000 88,239 1,686,480 Sustainable Infrastructure Capital Projects Atser Software Upgrade 3,000 55,000 58,000 Animal Services/Facilities Animal Services Facility Rehab 35,000 35,000 Traffic Maintenance Corridor Traffic Signal Timing 50,000 50,000 Water Production Water Facility Restroom at 518 water facility 15,000 15,000 Water Production Chemical Containment Walls (21 walls at 11 facilities)350,000 350,000 ROW RD 7000 Plus Line Locator 8,000 8,000 Meter Services Meter Testing/Meter Replacements 74,433 74,433 Information Systems (IS)Coban Server Hardware Refresh 36,899 36,899 Information Systems (IS)Backup Solution Replacement 26,193 26,193 Information Systems (IS)Laserfiche Upgrade & Licenses 84,000 84,000 Sub-Total 200,092 447,433 90,000 737,525 Fiscally Responsible Human Resources Human Resources Generalist - 6 months 43,317 43,317 Other Requirements Rate Model 70,000 70,000 Sub-Total 43,317 70,000 113,317 Parks, Recreation & Events Parks Dept.Cardio & Strength Equipment replacement - lease 103,000 103,000 Parks Dept.Replace Playground surface at Southdown Park 51,020 20,000 71,020 Sub-Total 154,020 20,000 174,020 Total $2,069,764 $542,433 $243,239 $2,855,436 Note - A full list of supplemental requests is located in the appendix section CITY OF PEARLAND FY 2016 FUNDED SUPPLEMENTAL REQUESTS BY STRATEGIC PRIORITY 33 GENERAL FUND FY 2016 ADOPTED BUDGET STAFFING AND FTE CHANGES FY 15 Amended Headcount FTE Full-Time 508.67 508.67 Part-Time 151 75.50 Total FY 15 Amended 659.67 584.17 FY 16 Changes Department FTE Position Title Justification/Services Affected Full-Time Part-Time Human Resources 1 1 Human Resources Generalist A Human Resources Generalist is needed to perform duties associated with our growth and development as a workforce. Since 2012 there has been a 14% increase in the number of employees, but no growth in the number of Human Resources staff.This position will assist in the management of benefits, employee recruitment, policy implementation, city- wide professional development, analyses of employability for new/potential hires, and other needs to accommodate a growing employee base.The position is budgeted for 6 months, to begin 4/1/16. Fire Operations 9 6 12 Firefighters With Fire Station #2 opening in fall 2015, there is a need for additional Firefighting personnel to staff the station.Six part- time includes 3 volunteers. Fire Administration 2 1 Receptionists Due to controlled medical substances for EMS use, the entry to the offices is locked.The current configuration of the Fire Department Building requires visitors to search out staff behind windows. There is a need for the presence of a receptionist to greet visitors and assist them in finding the individual or department they need to see. Police Patrol 8 8 Police Officers The budget includes 8 Officers for 6 months, including upgrades for 2 Officers to Sergeant to begin 10/1/15 and 2 to begin 4/1/16.In 2014,Officers responded to fewer calls-for- service than in 2013; however, there was an increase in UCR (Uniform Crime Reporting)Part 1 offenses, from 1,161 in 2013 to 2,125 in 2014.The greatest increase was the occurrence of theft,23% increase, due in large part to the increase in commercial development in the City.In 2012, theft comprised 34% of the City's UCR Part 1 crimes.In 2014, theft comprised 52%. There is a corresponding increase in criminal activity with growth.The addition of these 8 Officers will add to the goal of a safe community and contribute to sustainable staff levels. Headcount Positions are budgeted to begin 10/1/15 unless otherwise noted. 34 GENERAL FUND FY 2016 ADOPTED BUDGET STAFFING AND FTE CHANGES Department FTE Position Title Justification/Services Affected Full-Time Part-Time Headcount Health/Code Enforcement 1 1 Health/Code Enforcement Officer Within an 18-month period, 88 new restaurants opened in Pearland.With this degree of growth, the current number of staff are unable to maintain the required minimum of two inspections per year.The City has also added additional homes and businesses whose expectations are in higher demand for Code Enforcement,i.e.,assisted living and daycare.The additional Officer will provide help in meeting the City's Code. This position is budgeted to begin 4/1/16. Community Development 1 1 Small Business Coordinator With the growth of the city (35,000 in 2000 to approximately 112,300 in 2015), Community Development has had a steady flow of workload come through the department.The complexity has grown due to annexations,UDC (Unified Development Code) updates, updates to the Comprehensive Plan, and International Building Code.This position will assist with the monitoring of projects from inception to completion and will field concerns, provide information, and assist small businesses and developers through the City's planning and permitting processes.The position is budgeted to begin 4/1/16. Permits & Inspections 1 1 Plans Examiner Due to the growth of the City,permits has seen a 25% increase in plan review from 869 to 1,088 from June 2014 to June 2015. Municipal Court 0.52 0.52 Bailiff To provide improved security while court is in session, increase the position from part-time to full-time,52% from General Fund and 48% from the Court Security Fund. Trials are up 13.5% from fiscal year 2014 from 636 tp 722 through June 2015. Parks & Recreation -1 -1 Recreation Specialist Elimination of a vacant position. Total Changes 20.52 8 24.52 FY 16 Base Headcount FTE Full-Time 529.19 529.19 Part-Time 159 80 Total FY 16 Base 688.19 608.69 35 …...Revenue Revenue Details of Department Enhancement By Category Enhancements Parks and Recreation Center/Natatorium 127,000 Memberships In FY2015,the Recreation Center/Natatorium celebrated it's 6th birthday. The cost to run the facility increases annually with personnel as well as operating, repair and now replacement costs of equipment. The membership fee has not been increased in 5 years and the budget increases the annual and monthly fees by 10%. For example,the individual membership would increase from $300 to $330 and individual monthly would increase from $32 to $35. The fees would still be under the market pricing in comparison to the YMCA and LA Fitness. Parks and Recreation Administration 26,000 Facility Rental Fees The cost recovery model that Parks completed in 2014 recommends increasing the outdoor rental fees in order to cover costs.Though not recouping all of the costs,the budget prices Centennial and Southdown Pavilions at $120 and $180 per day,currently $30/day; Independence BBQ and Pavilion at $360 per day,currently at $60 and $130 per day, respectively.In addition,the budget adds rental fees for half days at $60 for Centennial Park Pavilion,$90 for Southdown Park Pavilion,and $180 for the Independence Park Pavilion and BBQ Shelter. Permits/Inspection 60,785 Electrical Fees The increase is needed to cover the cost of service.In addition,there is a large disparity between the current Mechanical fee and the Plumbing and Electrical fees for commercial property.Currently, the Plumbing fee is $135, budgeted to increase to $613. This would increase it to the same as the current Mechanical fee. The residential fee would increase from $135 to $145. The new fee amount, when compared to other local jurisdictions, is in line with the typical fee charged. Permits/Inspection 30,253 Plumbing and Gas Fees An increase is needed to cover the cost of service.In addition,there is a large disparity between the Mechanical fee and the Plumbing and Electrical fees for commercial property.Currently the Plumbing fee is $135, proposed to increase to $613. This proposal would increase it to the same as the current Mechanical fee. The residential fee would increase from $135 to $145. The new fee amount, when compared to other local jurisdictions, is in-line with the typical fee charged. GENERAL FUND REVENUE ENHANCEMENTS - BY DEPARTMENT FY 2016 ADOPTED BUDGET The budget includes fee increases listed below based on cost of service as well as ensuring the City is competing with the marketplace. It is also recommended that there be a review and update of all fees annually versus sporadically to ensure the fees cover the cost of providing the services or at least by the annual CPI increase, as the cost of the providing the same services increase each year. 36 …...Revenue Revenue Details of Department Enhancement By Category Enhancements Permits/Inspection 14,520 Mechanical Fees The increase is needed to cover the cost of service.There is no change to the commercial property fee,currently at $613. The residential fee would increase from $132 to $145, in-line with other local jurisdictions. Animal Services 2,000 Licenses and Shelter Fees Increases in some fees to help cover the continual increase in providing services.Fees have not been increased for several years. The fees that are increased are those most likely to discourage those who do not spay/neuter their pets and encourage them to do so. Health and Environmental Services 31,200 Inspection Fees Increase fees on inspections of food establishments by $25 each inspection fee to assist in covering the cost of service.When compared to other local jurisdictions,current fees are lower, anywhere from a $25 to $125 difference on establishments with 1-100 employees. Total General Fund Revenue Enhancements:$291,758 GENERAL FUND REVENUE ENHANCEMENTS - BY DEPARTMENT FISCAL YEAR 2015-2016 37 …...Revenue Revenue Details of Department Enhancement By Category Enhancements Water and Sewer Revenue 7,200 Reconnect Service Fee Increase in the 1st tier of the reconnect service fee from $25 to $30 to cover the cost of service, including manpower and vehicle. Water and Sewer Revenue 100 Temporary Connection/ Disconnection Fee The City receives requests from realtors and residents to have the water turned on or off on a specific date/time.Currently there is no fee for a one day appointment or if a customer is leaving town and requests the water be turned off.The budget includes a $10 fee to recoup the cost of service. Water and Sewer Revenue 2,450 Red Flag Inspection Report In 2008,the federal government passed what is called "Red Flag"which says that utilities must put in place a means to identify the person requesting service to assist with verifying identity. The City requests certain documentation to comply with the law.In order to continue to allow on-line application and service requests,the City gives 10-days for the customer to provide this information.In some cases the City never receives the information but cannot cut-off the water for failure of non- payment.As such,the budget includes a pass-through fee,currently at $3 +administrative fee,to the customer who does not provide this information to support RedFlag regulations. The City would use a 3rd party provider to run verification reports. Total Water/Sewer Revenue Enhancements:$9,750 FISCAL YEAR 2015-2016 WATER/SEWER FUND REVENUE ENHANCEMENTS - BY DEPARTMENT 38 CITY OF PEARLAND, TEXAS COMPREHENSIVE FINANCIAL MANAGEMENT POLICY STATEMENTS ADOPTED SEPTEMBER 2011 Purpose The Comprehensive Financial Management Policy Statements assembles all of the City’s financial policies into one document. These statements are the tools used to ensure that the City is financially able to meet its current and future service needs. The individual statements contained herein serve as guidelines for both the financial planning and internal financial management of the City. Municipal resources must be wisely used to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet immediate and long-term needs. These policy statements safeguard the fiscal stability required to achieve the City’s objectives and ensure long-term financial health. Objectives A. To guide City Council and management policy decisions that have significant fiscal impact. B. To employ balanced revenue policies that provide adequate funding for services and service levels. C. To maintain appropriate financial capacity for present and future needs. D. To maintain sufficient reserves so as to maintain service levels during periods of economic downturn. E. To promote sound financial management by providing accurate and timely information on the City’s financial condition. F. To protect the City’s credit rating and provide for adequate resources to meet the provisions of the City’s debt obligations on all municipal debt. G. To ensure the legal use of financial resources through an effective system of internal controls. H. To promote cooperation and coordination with other governments and the private sector in financing and delivery of services. 3939 I. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING Maintain accounting practices that conform to Generally Accepted Accounting Principles (GAAP) and comply with prevailing federal, state, and local statutes and regulations. Provide for, prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition. A. Accounting Practices and Principles The City will maintain accounting practices that conform to Generally Accepted Accounting Principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government. All City financial documents, except monthly interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosures statements will meet these standards. Monthly interim financial reports are on a cash basis and will be reported as budgeted. At year-end, the general ledger and financials will be converted to GAAP and GASB. B. Financial and Management Reporting 1. Interim Financial Reports will be provided monthly to management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. These reports will be distributed monthly by the end of each month for the prior month. 2. Quarterly, departments will report on program measures and indicators as compared to target and last year to Finance. A quarterly report will be submitted to the City Manager, highlighting significant variations. 3. As an additional independent confirmation of the quality of the City’s financial reporting, the City will annually seek to obtain the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. C. Annual Audit 1. Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by certified public accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement, including the auditor’s opinion, shall be filed within 180 days after the last day of the City’s fiscal year. The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the end of the fiscal year. The Director of Finance shall be responsible for establishing a process to ensure timely resolution of audit recommendations. 2. Audit Committee The Mayor shall appoint or confirm the audit committee, consisting of at least three members of the City Council, with the Mayor being one of the members. The primary purpose of the audit committee is to assist City Council and the City Manager in fulfilling oversight responsibilities for financial reporting, audit processes, and effective internal control systems. The City shall maintain an Audit Committee Charter which outlines the duties and responsibilities of the audit committee. 3. Annual Financial Disclosure As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any periodic materials event notices as required by the SEC. D. Signature of Checks Pursuant to the City Charter, all checks shall have two signatures, signed by the City Manager or Mayor and countersigned by the City Secretary, or the City Treasurer, or one member of Council. City Treasurer is further defined as the Director of Finance. Signatures shall be affixed on all City checks via facsimile signatures, either with a signature plate used with a check signing machine or with a secure laser check printing system. Component unit check signers are officers elected by the board, where applicable. Component unit’s checks shall also have two signatures. E. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed bi-annually and updated, revised or refined as deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may be appropriate and required. Exceptions will be identified, documented, and explained to City Council and/or the City Manager. 4040 II. BUDGET AND LONG RANGE FINANCIAL PLANNING A. Balanced Budget The City Manager shall file annually, a structurally balanced budget for the ensuing fiscal year with City Council pursuant to the prevailing state and local law. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Short-term loans will be avoided as budget balancing techniques. B. Current Funding Basis (Recurring Revenues) The City shall budget and operate on a current funding basis. Recurring expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis. C. Use of Non-Recurring Revenues Non-recurring revenue sources, such as a one-time revenue remittance of fund balance in excess of policy can only be budgeted/used to fund non-recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by non-recurring sources. D. Tax Rate The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and pay its debt. 1. Homestead Exemption The City shall review the homestead exemption annually as part of the budget process. When the financial health of the City’s finances and economic and market conditions of the local economy justify, the City Manager may recommend a change to the homestead exemption. In accordance with state statute, any recommended change in the homestead exemption will be presented to Council for approval prior to July 1. The total exemption percentage granted shall not exceed the state statute limitation. 2. Over-Age and Disabled Persons Exemptions The City currently grants a $40,000 exemption for persons 65 or older and for disabled persons. This amount shall remain stable during a period in which the City is considering increasing the homestead exemption. E. Pay As You Go Capital Projects The transfer from the City’s General Fund and the City’s Utility Fund to fund pay-as-you-go capital projects will be budgeted when financially feasible and when projects present themselves for funding. The transfer will be based on the financial health of each fund with the long-term goal of adequately funding rehabilitation. F. Revenue Estimating for Budgeting 1. In order to protect the City from revenue shortfalls and to maintain a stable level of service, the City shall use a conservative, objective, reasonable and analytical approach when preparing revenue estimates. The process shall include historical collection rates, trends, development, and probable economic changes. This approach is intended to reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid-year service charges. 2. The City whenever possible, will seek outside sources of revenue, such as federal, state, and local grants, in order to leverage local dollars. 3. Estimates from grant sources will be projected only to the specific date on which the entitlement will end. 4. The Utility Fund water and wastewater revenues will be budgeted based on the average rainfall/consumption over the last three years, pursuant to the rate model. The City will anticipate neither drought nor wet conditions. G. Performance, Merit Pool, and Police Step Increases The budget shall include an amount adequate to cover an overall average performance and merit pool, as well as an amount for police step increases, as determined annually by the City Manager. This amount will be calculated for each fund, based on budgeted salaries for the year, and will be placed in a Performance and Merit Pool in each operating fund. In addition, funds may be budgeted when appropriate, to bring identified jobs up to market salary rates. 4141 H. Budget Preparation 1. Department Directors have primary responsibility for formulating budget proposals. New or expanded services should support City Council goals, City Manager priority direction and department goals. Departments are charged with implementing them once they are approved. 2. All competing requests for City resources will be weighted within the formal annual budget process. 3. Actions on items that come up throughout the year with significant financial impacts should be withheld until they can be made in the full context of the annual budget process and long-range plan, unless unforeseen circumstances present themselves. 4. Every five (5) years at a minimum or sooner as may be necessary, the city will incorporate a service needs review into the budget process to ensure the most efficient and effective use of resources. 5. Annually, the City will seek to obtain the Government Finance Officers Associate Distinguished Budget Presentation Award. The Budget will be presented in a way that not only meets the criteria of the award, but also clearly communicates the budget to the public. I. Budget Management The City Council shall delegate authority to the City Manager in managing the budget after it is formally adopted by the City Council, including the transfer of funds within departments, between divisions, and between departments. The City Manager may further delegate levels of authority for the daily operations of the budget. Expenditures/expenses are legally adopted by the fund level. Expenditures/expenses should not exceed the adopted budget, plus subsequent changes approved by the City Council. J. Amended Budget In order to preserve fund balances/ending balances based on projected revenues and expenditures/expenses for the current fiscal year, City Council will amend the annual budget for all funds, excluding capital improvements funds, as set forth in the projections. City Council will amend the current fiscal year budget annually during the budget process. K. Performance Measurement Performance measures will be utilized and reported in department budgets. The City will maintain a measurement system that reports trends and comparisons to targets and previous year as a management tool to monitor and improve service delivery. L. Operating Deficits The City shall take immediate corrective action if at any time during the fiscal year expenditure and revenue re- estimates are such that “net income” is lower than budgeted. Corrective actions include: • Deferral of capital equipment purchases • Deferral of pay-as-you go capital improvements • Expenditure reductions • Deferral of certain positions • Hiring freezes • Freeze merit increases • Use of fund balance • Use of volunteers • Increase fees • Reduce work hours with subsequent reduction in pay • Eliminate positions which may require laying-off employees if there are no other vacant positions for which they are qualified. Short-term loans as a means to balance the budget shall be avoided. The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level. M. Long-Range Financial Plans 1. The City shall develop and maintain a five-year Financial Forecast for each major operating fund, in conjunction with the annual budget process. Major operating funds are as follows: • General Fund • Debt Service Fund • Water/Sewer Utility Fund • Economic Development Corporation 4242 2. The forecast should enable current services and current service levels provided to be sustained over the forecast period. Operating impacts from completed capital improvement projects in the City’s five-Year CIP shall be included in the forecast. Commitments/obligations already made that require future financial resources shall also be included. 3. The forecasts should identify impact to property taxes and utility rates. 4. Major financial decisions should be made in the context of the Long-Range Plan. The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City’s goals. The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. III. REVENUES Design, maintain and administer a revenue system that will assure reliable, equitable, diversified and sufficient revenue stream to support desired City services. A. Balance and Diversification in Revenue Sources The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. B. User Fees - General Fund 1. For services that benefit specific users, the City shall establish and collect fees to recover the costs of those services. Where services provide a general public benefit, the City shall recover the costs of those services through property and sales taxes. 2. At a minimum, the City will strive to cover direct costs. 3. User fees should be reviewed, at a minimum, every two to three years and adjusted to avoid sharp changes. 4. Factors in setting fees shall include, but not be limited to: market and competitive pricing, effect of demand for services, and impact on users, which may result in recovering something less than direct, indirect and overhead costs. 5. The City may set a different fee for residents versus non-residents. 6. User fees should be adopted by Council Ordinance and included in the Annual Fee Schedule. C. User Fees - Enterprise Funds 1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover operating expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay-as-you-go funding for capital improvements, and provide adequate levels of working capital. 2. The City may set a different fee for residents versus non-residents. 3. The Five-Year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate change considerations. 4. When necessary, the Five-Year Financial Plan (rate model) will be built around small rate increases annually versus higher rate increases periodically. D. One-Time/Unpredictable Revenue Sources 1. One-time, unpredictable revenue sources should not be used for ongoing expenses/expenditures. 2. One-time, unpredictable revenue sources will be used or one-time purchases such as increase in fund balance requirements, capital equipment purchase, capital improvements, etc. E. Revenue Collection The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City. Revenues actually received will be compared to budgeted revenues by the Director of Finance and any variances considered to be material will be investigated. This process will be summarized in the monthly financial report. (See Financial and Management Reporting.) 4343 F. Write-Off of Uncollectible Receivables (excludes property taxes, court fines and warrant) 1. Receivables shall be considered for write-off as follows: a. State statute authorizing the release of extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable. b. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken. 2. Accounts shall be written-off annually near year-end. Upon approval, accounts will be forwarded to a credit reporting agency. 3. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City. IV. EXPENDITURES Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services. A. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain service levels. B. Periodic Program/Services Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated. C. Purchasing All City purchases of goods and services shall be made in accordance with the City’s current Purchasing manual. V. FUND BALANCE AND RESERVES Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City’s credit worthiness as well as its financial position during emergencies or economic fluctuations. A. General Fund Unrestricted Fund Balance The City shall maintain the General Fund unrestricted fund balance equivalent to 2 months of recurring operating expenditures, based on current year expenditures. If the fund balance exceeds this amount, funding non-recurring expenditures in the following fiscal year may be used to draw down the balance. B. Water/Sewer Unreserved Working Capital The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue shortfalls. A cash equivalent operating reserve will be established and maintained at 25% of the current year’s budget appropriation for recurring operating expenses. The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating expenses. C. Use of Fund Balance/Working Capital Fund balance/Working Capital shall only be used for emergencies, non-recurring expenditures/ expenses or major capital purchases that cannot be accommodated through current year savings. Should such use reduce balances below the level established as the objective for that fund, restoration recommendations will accompany the request/decision to utilize said balances. 4444 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 m ay not be limited to: Debt Service Reserves, Special Court Funds created by State Statute, Debt Service Funds, Hotel Occupancy Tax, State and Federal Forfeitures/Seizures, Parkland, Detention, Sidewalk, Tree Trust, and Park and City-Wide Donation revenues, University of Houston Fund, Unspent bond proceeds, Unspent grant funds, Unspent Capital Lease proceeds, and Unspent funds received pursuant to funding, developer, and/or TxDOT agreements. • Committed: Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. • Assigned: Amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. In governmental funds other than the general fund, assigned fund balances represents the amount that is not restricted or committed. This indicates that those resources are, at a minimum, intended to be used for the purpose of that fund. Examples include: residual funds in all governmental funds except the General Fund and outstanding encumbrances at year-end. • Unassigned: Is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. 4545 Commitment of Fund Balance: • The City Council is the City’s highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance approved by the City Council at a regular City Council meeting. The ordinance must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in a subsequent period. Assignment Fund Balance: • The City Council has authorized the Director of Finance as the official authorized to assign fund balance to a specific purpose pursuant to the guidelines. Order of Expenditure of Funds: • When multiple categories of fund balance are available for expenditure, the City would typically use Restricted fund balances first, followed by Committed, and then Assigned, but reserves the right to selectively spend from any of the categories, including Unassigned based upon the individual circumstances. VI. CAPITAL EXPENDITURES AND IMPROVEMENTS Annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. A. Capitalization Threshold for Tangible Capital Assets 1. Tangible capital items should be capitalized only if they have an estimated useful life of 2 years or more following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and have a cost of not less than $5,000 for any individual item. 2. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items (i.e.: desks, chairs, etc.). 3. To maintain adequate control over non-capitalized tangible items, items costing $1,000 - $4,999 will be monitored, tagged, and tracked through the City financial software system. 4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship of public property. B. Five-Year Capital Improvement Plan (CIP) 1. The City shall annually prepare a five-year capital improvement plan based on the needs for capital improvements and equipment, the status of the City infrastructure, replacement and renovation needs, and potential new projects. Capital projects are improvements or additions to the City’s physical plant/facilities/infrastructure and become a part of the City’s asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines, physical plants, etc. Capital costs typically consist of preliminary design, final design, and construction, and may involve the acquisition of land or easements. For purposes of the CIP Plan, a Capital Improvement Project should generally exceed a cost of $100,000. 2. For the most part, projects in the CIP should be based upon master plans or developer agreements. This ensures that the City’s CIP, which is the embodiment of the recommendations of these individual planning studies, is responsive to the officially stated direction of the City as contained in the Comprehensive Plan and supporting master plans. Examples of these supporting documents are: Water and Wastewater Modeling Plans, Thoroughfare Plan, Parks Master Plan, Trail Plan, Municipal Facilities Plan, etc. 3. For every project identified in the CIP, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed. 4. Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of CIP projects for the CIP and may suggest additions and/or changes to the plan as appropriate. Pursuant to the City Charter, the Planning and Zoning Commission makes recommendation to the City Manager. 5. The City Manager is charged with recommending a Capital Improvement Plan to City Council. The CIP shall be filed and adopted in conjunction with the annual budget. 6. Annually, through the budget process and at year-end, projects are to be reviewed. For those identified as complete, any remaining funds will close to fund balance. For those projects with identified savings, the project budget will be reduced and the subsequent savings will flow to fund balance. These funds can then 4646 be re-appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. 7. Appropriations for capital projects are for the life of the project; therefore re-appropriation of capital funding for each fiscal year for budgeted projects is not necessary. C. Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well being of the City. As a result, the City’s CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth. 1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purpose. 2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which alternative is most cost-effective, which would include life-cycle costing, and provides the best value to the City. D. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High-Tech) The City shall annually prepare a schedule for the replacement of its fleet, fire trucks, and high technology capital assets. Funding for the replacement of these assets will be accomplished through the annual budget process, within the resources available each fiscal year. A variety of funding options will be explored, including but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best interest of the City. E. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements. F. Pay-As-You-Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Pearland citizens. 2. The City will seek out and use intergovernmental funding sources for capital improvements in order to leverage City funding and to minimize property and utility rate impacts. G. Capital Improvements/Project Reporting A summary/status report on the City’s various capital projects will be prepared monthly and available to the Cit y 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. 4747 B. Affordability The City shall use an objective analytical approach to determine whether it can afford to issue general-purpose debt, both General Obligation and Certificates of Obligation, water/sewer debt, sales tax revenue debt, and any other financing permitted by State law. The process shall include an internal feasibility analysis for each long- term financing which analyzes the impact on current and future budgets, which would include the tax and utility rates. The process shall also include the benefits of the proposed projects. The decision on whether or not to issue new debt shall be based on the benefits of the project, current conditions of the municipal bond market, and the City’s ability to “afford” new debt. In no case will the City issue general obligation debt that will require a debt service tax rate of $1.50 per $100 assessed valuation, based on a 90% collection rate, which is the maximum tax rate permitted by State law. C. Types of Long-Term Debt 1. General Obligation Bonds (GO) General Obligation bonds require voter approval and are secured by a promise to levy taxes in an amount necessary to pay annual debt service. a. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond proposition. 2. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. It is the City’s policy to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City’s ability to assume additional debt. Circumstances in which Certificates might be issued include, but are not limited to the following. a. The City may issue CO’s when there is insufficient funding on a general obligation bond-financed capital improvement. b. The City may issue CO’s when “emergency” (urgent, unanticipated) conditions require a capital improvement to be funded rapidly. c. The City may issue CO’s for projects when the City can leverage dollars from others to reduce the City’s capital cost for a community improvement. d. The City may issue CO’s for projects when there is no other adequate funding source available (ie: GO or developer funding), the project is determined to be in the best interest of the City, and where a determination is made that waiting for the next bond referendum or having a bond referendum for a small amount of money or a small number of projects is impractical and where public notice versus a voted bond referendum is deemed acceptable by the City Council. e. The City may issue CO’s if it would be more economical to issue Certificates of Obligation rather than issuing revenue bonds; and f. The City may issue CO’s for projects for which the City will be reimbursed by Developer (principal plus interest). 3. Revenue Bonds Revenue bonds are generally payable from a designated source of revenue. They do not require voter approval. For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall meet the bond coverage ratio as defined in the ordinance. Annual adjustments to the City’s rate structures for Enterprise Funds will be made as necessary to maintain the coverage factor. If the City should issue CO’s for Water/Sewer Improvements, the Water/Sewer Fund will pay the annual debt service associated with the issue. D. Debt Structures The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 30 years for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining debt repayment schedules and shall seek to retire 90% of the total principal outstanding within 20 years of the year of issuance. There should be no debt structures that include increasing debt service levels in subsequent years, with the first and second year of a bond payout schedule the exception or as special situations may warrant. There shall be no “balloon” bond repayment schedules, which consists of low annual payments and one large payment of the balance due at the end of the term. There shall always be at least interest paid in the 4848 first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year after the bond issue. Normally, there shall be no capitalized interest included in the debt structure except for debt issuances reimbursing developers for infrastructure or in the case in which the project will generate revenue, but it takes a couple of years to produce the revenue. Capitalized interest should normally not exceed 2 years. The City currently has a level debt service structure. As such, unless there is growth (increased valuation, increase in number of connections, etc.) or reallocation of the tax rate to debt service, there is no room for additional debt without increasing rates. The City shall seek to begin making attempts to structure future debt issuances, where affordable, to a declining structure. The City will issue debt based on a fixed rate and will limit use of variable-rate debt due to the potential volatility of such instruments. E. Debt Refunding The City’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless: (1) a debt restructuring is necessary; or (2) bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt or; (3) the refunding is combined with a new debt issuance. F. Interest Earnings on Debt Proceeds Debt interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued. G. Bond Elections 1. Timing of general obligation bond elections shall be determined by the inventory of current authorized, unissued bonds remaining to be sold and the Five-Year Capital Improvement Plan. 2. The total dollar amount of bond election propositions recommended to the voters should typically not exceed the City’s estimated ability to issue the bonds within a 7-year period. 3. An analysis showing how the new debt combined with current debt impacts the City’s tax rate and debt capacity will accompany every future bond issue proposal. H. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing, if the interest rate environment or market/economic factors may affect the bond issue, or if the nature of the debt is unique and requires particular skills from the underwriters involved. The City shall award the bonds based on a true interest costs (TIC) basis. However, the City may award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis can satisfactorily determine the lowest and best bid. I. Underwriting Syndicates The City’s financial advisor shall attempt to involve qualified and experienced firms, which consistently submit ideas to the City and financial advisors and actively participate in the City’s competitive sale in its negotiated underwritings. In conjunction with the City, the City’s financial advisor shall recommend the structure of underwriting syndicates, which will be optimal for the type and amount of debt being issued. J. Bond Ratings Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, as recommended by the City’s financial advisor. The City will continually strive to maintain or increase the City’s current bond ratings by prudently managing its funds and by reviewing and monitoring financial policies, budgets, forecasts and the financial health of the City. K. Covenant Compliance The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices. 4949 L. Arbitrage Rebate Monitoring and Reporting Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on the debt. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate compliance requirement of the IRS regulation. The recordkeeping shall include tracking project expenditures, interest earned on the bonds, calculating rebate payments, and remitting any rebatable earnings to the federal government in a timely manner in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate calculations will be performed annually on all debt issues and the liability recorded for any positive arbitrage. Due to the specialized nature of the calculations, this function will typically be outsourced. M. Lease/Purchase Agreements The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and provides for attractive terms. All lease purchase agreements will be approved by City Council no matter the dollar amount. VIII. CASH MANAGEMENT AND INVESTMENTS To maintain the City’s cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield. A. Investment Management 1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City’s financial assets. 2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. (See City’s Investment Policy and Strategy) 3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any individual or corporate member of the financial or investment community. 4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City’s Investment Policy. 5. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and other such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets.(See City’s Investment Policy) 6. Investments of the City shall be made with the exercise of judgment and care which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment. B. Investment Strategy The City of Pearland maintains a consolidated portfolio in which it pools its funds for investment purposes. The City’s investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yields commensurate with the preservation of principal and liquidity. (See City’s Investment Strategy) C. Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided. D. Arbitrage Investments Investment on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive rate of return. If there is positive arbitrage, the rebatable earnings will be sent to the IRS, as necessary. E. Depository The City will select its official bank through a formal bidding process in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. The City will, at a minimum, bid depository services every five years. The City will review the financial health of the City’s depository annually to include but not be limited to earnings, assets, capital, and liquidity. 5050 F. Collateralization of Deposits 1. The City shall have pledged collateral held at an independent third-party institution and evidenced by a written receipt. 2. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent of par or market value of the investments, whichever is greater. 3. Substitutions of collateral shall meet the requirements of the collateral agreement. Collateral shall not be released until the replacement collateral has been received, if the release of the collateral should result in the value being under 102 percent of par value. 4. The pledge of collateral shall comply with the City’s investment policy. IX. GRANTS AND INTERGOVERNMENTAL REVENUES The City will seek, apply for, and effectively administer federal, state and local grants, which support the City’s current priorities and policy objectives. The City should take advantage of opportunities to enhance service delivery through intergovernmental cooperation, shared revenues, and grants. A. Grant Guidelines 1. The City shall apply and facilitate the application for only those grants that are consistent with the objectives and high priorities identified by Council and management. 2. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs and services. 3. The potential for incurring ongoing costs, to include assumptions of support for grant-funded positions from local revenues, will be considered prior to applying for a grant. B. Grant Review Process 1. A uniform grants pre-application process will be utilized to assure the City has all the information necessary to make a decision regarding a potential grant. Information to be provided should include, but not be limited to: a. The grant being pursued and the use to which it would be placed b. The objectives or goals of the City which will be achieved through the use of the grant c. The local match required, if any, plus the source of the local match d. The increased cost to be locally funded upon termination of the grant 2. All grant agreements will be reviewed by the appropriate City staff, including Finance, Legal, HR, and the sponsoring department, to ensure compliance with state, federal, and City regulations. 3. The City Manager shall approve all grant submissions and City Council shall approve all grant acceptances over $50,000. C. Budgeting for Grant Expenditures Annually via the budget process, departments will submit for possible funding, known grant opportunities. These grant opportunities will be prioritized and ranked along with all other supplemental requests. If approved, the expenditure and associated revenue will be appropriated in the Grant Fund. If there are grant opportunities that arise during the year and are received by the City, the budget will be amended via the projections, if the City can fund the local match required. D. Grant Termination and/or Reduced Grant Funding 1. In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process, unless the City is obligated through the terms of the grant to maintain the positions, services, or equipment. 2. The City shall terminate grant-funded programs and associated positions when grant funds are no longer available, and it is determined that the program no longer supports City goals and/or is no longer in the best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the positions, services, or equipment. 5151 X. FINANCIAL CONSULTANTS The City will employ qualified financial advisors and consultants as needed in the administration and management of the City’s financial function. These areas include but are not limited to audit services, debt administration, delinquent tax collection attorney, and financial modeling. The principal factors in the selection of these consultants will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In no case should price be allowed to serve as the sole criterion for the selection. A. Selection of Auditors At least every seven years, the City shall request proposals from qualified firms, including the current auditors if their past performance has been satisfactory. The City Council shall select an independent firm of certified public accountants to perform an annual audit of the accounts and records, and render an opinion on the financial statements of the City. It is the City’s preference to rotate auditor firms every seven years at the maximum, to ensure that the City’s financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of the audit firm will be based upon the proposals received, the qualifications of the firm, and the firm’s ability to perform a quality audit. However, if through the proposal and review process, management and the Audit Committee select the current audit firm, then, it is the City’s preference that the lead audit partner be rotated, as well as the lead reviewer, after a maximum of seven years. B. Arbitrage 1. The City shall calculate positive/negative arbitrage on each bond issue annually. While the City is responsible to ensure that the records are in order, the calculations made, reporting completed, and filings made, the actual arbitrage calculation and reporting shall be contracted out to a qualified firm. 2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There is not a requirement for rotation. C. Delinquent Tax Collection Attorney 1. Due to the nature and expertise required, the City shall hire a delinquent tax collection attorney to collect delinquent taxes, represent the City in filing bankruptcy claims, foreclose on real property, seize personal property, and represent the City in court cases and property sales. 2. Requests for proposals and statement of qualifications are to be solicited at least every seven years. There is no requirement for rotation. D. Bond Counsel 1. Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized attorneys who have developed necessary expertise in a broad range of practice areas, the City will always use a consultant for these services. Generally, bonds are not marketable without an opinion of nationally recognized bond counsel stating that the bonds are valid and binding obligations stating the sources of payment and security for the bonds and that the bonds are exempt from Federal income taxes. 2. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with Bond Counsel shall be a maximum of ten (10) years, however with a termination clause, at the discretion of the City. A contract may be renewed after a competition process in which the Council determines that continuation with the incumbent firm is in the best interest of the City. E. Financial Advisory Services 1. The City issues various types of securities to finance its capital improvement program. Debt structuring and issuance requires a comprehensive list of services associated with municipal transactions, including but not limited to: method of sale; analysis of market conditions; size and structure of the issue; coordinating rating agency relations; evaluation of and advice on the pricing of securities, assisting with closing and debt management; calculation of debt service schedules; and advising on financial management. As financial advisors to governmental entities have developed the necessary expertise in a broad range of services, the City will use a consultant for these services. 2. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with the Financial Advisor shall be a maximum of ten (10) years, however with a termination clause, at the discretion of the City. A contract may be renewed after a 5252 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. 5353 THIS PAGE INTENTIONALLY BLANK 54 FY2015 FY2015 FY2016 FY2014 AMENDED YEAR END ADOPTED REVENUES ACTUAL BUDGET PROJECTION BUDGET Property Taxes $39,226,953 $41,560,765 $41,793,788 $44,483,896 Sales Taxes $25,890,292 $26,985,303 $28,267,160 $30,753,978 Franchise Fees $6,483,961 $6,916,438 $6,935,878 $7,317,454 Licenses and Permits $4,148,763 $3,922,331 $3,928,395 $3,961,789 Fines and Forfeitures $3,120,522 $3,265,997 $3,066,840 $3,069,250 Charges For Services $49,014,847 $52,931,381 $49,890,638 $58,498,959 Interest Income $375,498 $158,993 $382,789 $330,994 Hotel/Motel Occupancy Tax $1,404,306 $1,383,078 $1,507,942 $1,525,233 Bond/Lease Proceeds $47,046,545 $36,001,933 $93,894,310 $85,077,939 Grant Revenue $1,981,690 $1,598,424 $2,237,555 $496,919 Miscellaneous $9,338,889 $13,673,037 $13,569,785 $11,659,772 Other Revenue Sources $9,431,763 $27,964,334 $31,108,029 $50,248,336 TOTAL REVENUES $197,464,028 $216,362,014 $276,583,109 $297,424,519 Transfers from Other Funds $15,245,397 $12,762,939 $15,604,103 $12,374,868 TOTAL AVAILABLE RESOURCES $212,709,425 $229,124,953 $292,187,212 $309,799,387 EXPENDITURES General Government $7,234,797 $10,552,334 $11,034,865 $11,606,002 Public Safety $29,219,292 $36,547,415 $35,552,904 $38,786,756 Community Services $4,195,671 $3,454,569 $3,440,961 $3,726,753 Public Works $30,967,257 $41,347,920 $39,228,148 $38,361,137 Parks & Recreation $7,526,334 $7,005,419 $6,763,986 $6,885,387 Utility Billing $1,779,110 $1,353,777 $1,090,447 $1,173,683 Debt Service $70,093,541 $44,395,527 $98,969,554 $43,124,453 Construction1 $24,048,581 $114,065,283 $91,414,182 $119,397,911 Insurance Coverage $7,795,690 $8,196,248 $7,807,246 $9,183,853 Economic Development Corporation $2,999,109 $3,819,544 $5,969,966 $10,772,230 Other2 $5,610,414 $6,508,960 $8,522,481 $7,665,436 TOTAL EXPENDITURES $191,469,796 $277,246,996 $309,794,740 $290,683,601 Transfers to Other Funds $15,245,397 $12,762,939 $15,604,103 $12,374,868 TOTAL EXPENDITURES AND OTHER USES $206,715,193 $290,009,935 $325,398,843 $303,058,469 Revenues Over/(Under) Expenditures3 5,994,233 (60,884,982)(33,211,631)6,740,918 3Expenditures under Revenues in 2016 as $13.7 million in bond proceeds will be spent in 2017. CITY OF PEARLAND 1Capital 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. FY 2016 ADOPTED BUDGET SUMMARY ALL FUNDS REVENUES AND EXPENDITURES 55 PROPOSED Property Taxes, 14% Sales Taxes, 10% Franchise Fees, 2% Licenses and Permits, 1% Fines and Forfeitures, 1% Charges For Services, 19% Hotel/Motel Occup. Tax, 1% Bond/Lease Proceeds, 28% Miscellaneous, 4% Other Revenue Sources, 16% Transfers from Other Funds, 4% Revenue Summary All Funds Adopted 2016 Budget General Government, 4% Public Safety, 13% Community Services, 1% Public Works, 13% Utility Billing, 1% Parks & Recreation, 2% Debt Service, 14% Construction, 39% Insurance Coverage, 3% PEDC, 4% Other, 2% Transfers to Other Funds, 4% Expenditure Summary All Funds Adopted FY 2016 Budget 56 FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE General Fund $15,559,633 $69,791,421 $73,272,942 $12,078,112 Special Revenue Funds 6,782,547 5,868,598 5,489,316 7,161,828 Governmental Capital Project Funds 1,918,605 79,616,326 80,657,360 877,571 Governmental Debt Service Fund 4,988,996 31,687,635 31,528,207 5,148,424 Proprietary Funds 12,008,916 45,397,272 45,254,223 9,528,742 * Proprietary Capital Project Funds 11,053,052 55,738,595 45,479,880 7,611,767 ** Internal Service Funds 218,635 9,383,591 9,183,853 418,373 PEDC Fund 13,117,177 12,315,949 12,192,688 13,240,438 FY 2016 BUDGET $65,647,561 $309,799,387 $303,058,469 $56,065,255 *Exclusive of $2,623,222 reserved for debt service pursuant to bond covenants. balance in Utility Impact Fee - Fund 42. FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 17 Court Security $66,054 $52,920 $114,350 $4,624 18 City Wide Donation 57,180 20,350 50,477 27,053 19 Court Technology 22,601 60,020 69,865 12,756 23 Court Juvenile Management Fund 46,005 37,060 44,435 38,630 33 Street Assessment Fund* 35 Traffic Impact Improvement Fund 590,662 3,000 46,800 546,862 43 Regional Detention* 45 Hotel/Motel Tax 3,601,621 1,535,233 927,604 4,209,249 46 Park Donations 14,132 101,050 105,636 9,546 47 Park & Recreation Development 1,045,391 103,000 231,000 917,391 49 Tree Trust 6,225 8 6,233 55 Sidewalk 17,495 5,034 22,529 60 Police State Seizure 184,328 200 36,320 148,208 62 Federal Police 72,053 55 68,000 4,108 101 Grant 64,154 177,834 177,834 64,154 111 Community Development 319,085 319,085 140 University of Houston 319,260 319,260 141 U of H Capital Renewal 248,469 55,489 303,958 145 Municipal Channel 746,177 314,700 214,350 846,527 199 Lower Kirby 2,764,300 2,764,300 TOTAL $6,782,547 $5,868,598 $5,489,316 $7,161,828 *No activity CITY OF PEARLAND FY 2016 ADOPTED BUDGET SUMMARY ALL FUNDS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS **Exclusive of $13,700,000 in bond proceeds reserved for Reflection Bay Plant expansion deducted from ending fund SPECIAL REVENUE FUNDS ANALYSIS OF FUND BALANCE 57 FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 50 Capital Projects General $375,626 $2,747,963 $2,790,968 $332,621 68 Capital Projects-CO 92,458 17,955,062 17,999,337 48,183 203 Capital Projects-GO 1,450,521 58,913,301 59,867,055 496,767 TOTAL $1,918,605 $79,616,326 $80,657,360 $877,571 FY 2016 FY 2016 FY 2016 FY2016* ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 30 Water & Sewer Fund $11,940,401 $38,566,275 $38,422,759 9,460,694 31 Solid Waste Fund 68,515 6,830,997 6,831,464 68,048 TOTAL $12,008,916 $45,397,272 $45,254,223 $9,528,742 *Net of any reserve requirements. FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 42 Utility Impact Fee Fund*7,385,443 52,311,333 40,020,852 5,975,924 44 Shadow Creek Impact Fee 923,912 890,270 670,416 1,143,766 67 W & S Revenue Bonds 859,207 2,032,692 2,748,875 143,024 301 Water/Sewer Pay As You Go CIP 1,114,453 503,300 1,268,700 349,053 302 MUD 4 Capital Program 770,037 1,000 771,037 TOTAL $11,053,052 $55,738,595 $45,479,880 $7,611,767 *Reserves of $13,700,000 are deducted from fund balance for Utility Impact Fee - Fund 42. FY 2016 ADOPTED BUDGET GOVERNMENTAL CAPITAL PROJECT FUNDS ANALYSIS OF FUND BALANCE PROPRIETARY CAPITAL PROJECT FUNDS PROPRIETARY FUNDS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS 58 FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 95 Property Liability Insurance $82,529 $1,315,507 $1,311,977 $86,059 99 Medical Self-Insurance $136,106 $8,068,084 $7,871,876 $332,314 TOTAL $218,635 $9,383,591 $9,183,853 $418,373 FY 2016 FY 2016 FY 2016 FY 2016 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 15 Economic Development Fund $13,117,177 $12,315,949 $12,192,688 $13,240,438 TOTAL $13,117,177 $12,315,949 $12,192,688 $13,240,438 INTERNAL SERVICE FUND ANALYSIS OF FUND BALANCE PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC) ANALYSIS OF FUND BALANCE FY 2016 ADOPTED BUDGET 59 GENERAL FUND AND WATER & SEWER REVENUES, EXPENDITURES AND OTHER SOURCES TRENDS FOR FISCAL YEAR 2016 GENERAL FUND REVENUES General Fund revenues and other sources are projected to increase from $65,341,507 in FY 2015 to $69,791,421 in FY 2016, an increase of $4,449,914, or 6.8%, mainly due to an increase in Property Tax, Sales Tax and TIRZ Administration Fees. General Fund Current Property Taxes are expected to increase from a projected $12,817,498 in FY 2015 to $13,809,808 in FY 2016, an increase of $992,310 or 7.7% due to new development, revaluation and an increase in the operating property tax rate of $0.0004, from $0.2221 to $0.2225. Other Taxes, primarily composed of sales taxes, are estimated to increase from a projected $18,929,697 in FY 2015 to $20,594,329 in FY 2016, an increase of $1,664,632, or 8.8%. The sales tax increase is the result of the improvement in the local economy, increased consumer confidence, and continued new development. Employment in the Houston MSA grew 2% for the 12 months ending September 2015, adding 48,631 new jobs. $53.00 $57.41 $63.29 $65.34 $69.79 0 10 20 30 40 50 60 70 FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted$ in millions Five Year Revenue Trend Property Taxes, 20% Sales Tax, 29% Franchise Fees, 10% License & Permits, 5% Fines & Forfeitures, 6% Charges for Service, 22% Miscellaneous, 1% Transfers, 6% Other Sources, 1% Revenue Sources for FY 2016 60 GENERAL FUND REVENUES Franchise Fees are expected to increase from a projected $6,635,878 in FY 2015 to $7,003,454 in FY 2016, an increase of $386,576, or 5.5%, due to anticipated growth in Electric, Cable Television and Sanitation Fees from new development. Licenses & Permits are estimated to increase from a projected $3,928,395 in FY 2015 to $3,961,789 in FY 2016. Fines & Forfeitures are expected to stay relatively flat, from a projected $2,917,038 in FY 2015 to $2,919,450 in FY 2016, an increase of $2,412, or 0.1% as the number of charges have declined and dismissal rates increased. Charges for Services are estimated to increase from a projected $13,686,120 in FY 2015 to $16,034,797 in FY 2016, an increase of $2,348,677, or 17.2%. There is an increase of $1,797,256 due to growth of assessed valuation in the TIRZ, of which the City receives 64% of the tax increment for services. Miscellaneous Revenue is anticipated to decrease from a projected $842,880 in FY 2015 to $745,914 in FY 2016, a decrease of $96,966, or 11.5%. The decrease is due to a reduction in recycling revenues as the recycling center will be operated by Keep Pearland Beautiful (KPB), a one-time reimbursement from PISD for repairs to the Recreation Center/Natatorium, and a one-time reimbursement of $100,000 in FY 2015 from AmReit, the landlord toward the westside library lease expansion costs. Inter/Intra Governmental Revenues decrease from a projected $3,849,597 in FY 2015 to $3,441,391 in FY 2016, a $408,206, or -10.6%, decrease, mainly due to one-time transfers from the Sidewalk Fund and the Solid Waste Fund. Other Financing Sources is budgeted at $900,000 in FY 2016, a decrease of $456,049, or 33.6%, from FY 2015. The decrease is due to one-time lease proceeds for a new ERP in FY 2015. The FY 2016 financing is for the purchase of a Fire ladder truck. $14.67 $15.74 $17.11 $18.67 $20.32 0 2 4 6 8 10 12 14 16 18 20 22 FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted$ in millions General Fund Sales Taxes Five Year History 61 GENERAL FUND REVENUES 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 Actual 2013 Actual 2014 Actual 2015 Projected 2016 Adopted GENERAL GOVERNMENTAL REVENUE BY SOURCE Other/Misc Inter-Gov't Revenue Franchise Fees Charges for Services Fines and Forfeitures Licenses and Permits Sales/Other Taxes Property Tax (General & Debt Service Funds) $0.6851 $0.7051 $0.7051 $0.7121 $0.7053 0.6700 0.6800 0.6900 0.7000 0.7100 0.7200 2012 2013 2014 2015 2016 PROPERTY TAX RATE Debt Service & Operations $6.4 $6.5 $7.0 $7.6 $8.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 2012 2013 2014 2015 2016 ASSESSMENT VALUE $34.4 $37.1 $39.2 $41.8 $44.5 0 5 10 15 20 25 30 35 40 45 50 2012 2013 2014 2015 2016 PROPERTY TAX REVENUE Debt Service & Operations $22.0 $23.6 $25.7 $28.0 $30.5 0 5 10 15 20 25 30 35 2012 2013 2014 2015 2016 SALES TAX REVENUE General Fund & PEDC Property Tax includes General Governmental Revenue of the General Fund and Debt Service Fund Sales/Other Taxes is primarily sales tax 62 GENERAL FUND EXPENDITURES General Fund expenditures are anticipated to increase from a projected $69,236,374 in FY 2015 to $73,272,942 in FY 2016, an increase of $4,036,568 or 5.8%. The increase is mainly due to an increase in the cost of employee medical coverage, employee compensation, as well as new positions added in fiscal year 2016. New positions added in FY 2016 result in a net increase of 24.52 full-time equivalent positions. Of the new positions, 22 are in Public Safety, 1 Human Resources Generalist for six months, 1 Small Business Coordinator for six months, 1 Plans Examiner for nine months, 1 Municipal Court Bailiff going from part-time to full time (.5 FTE), and 1 Parks Recreation Specialist position was eliminated. The FY 2016 budget includes funding for the opening of Fire Station #2 and two new parks, Hickory Slough Sportsplex and Shadow Creek Ranch Park, as well as funding for improvements at Independence Park. Pursuant to the Pearland 20/20 Strategic Plan, community beautification has been enhanced with increased service levels for landscaping/median maintenance, and the contracting of new medians. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted Historical Operating Expenditures as % of Total - General Fund FY 2012-FY 2014 Actuals FY 2015 Projected & FY 2016 Adopted Budget Parks & Recreation Public Works Community Services Public Safety General Government $22,334,088 $24,582,878 $19,454,500 $15,559,633 $12,078,112 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted General Fund Balance Five-Year History 63 WATER AND SEWER FUND REVENUES Water and Sewer Fund revenues are projected to increase by 19.9%, or $6,404,053, from a projected FY 2015 amount of $32,162,222 to $38,566,275 in FY 2016. The increase is mainly attributable to a 16% revenue increase of $4.7 million and continued residential and commercial growth. The revenue increase is needed to fund operating, debt service, reserves, and bond covenant requirements. As water revenues can be impacted by weather patterns, and despite a 4.63% revenue increase in FY 2015, the drop in water revenues in FY 2015 is due to a wet year with an additional 24 inches of rain than in FY 2014. *Other includes Interest, Grants, Bond Lease Proceeds, Miscellaneous $0 $3 $6 $9 $12 $15 $18 FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Projected FY2016 Adopted$ in millions Five-Year Water and Sewer Revenue Comparison by Source Sale of Water Sewer Revenues Other Service Charges Transfers In Other* 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted Historical Revenues as % of Total - Enterprise Fund FY 2012-FY 2014 Actuals FY 2015 Estimate & FY 2016 Adopted Budget Lease Proceeds Transfers In Interest Income Other Misc. Income Other Service Charges Sewer Revenues Sale of Water 64 WATER AND SEWER FUND REVENUES Water/Sewer Rate Increase Current FY 2015 Proposed FY 2016 Water Base 11.98 13.78 Volume 2,001-6,000 gallons 3.16 3.48 6,001-15,000 gallons 3.96 4.35 15,001-25,000 gallons 4.75 5.22 25,001+ gallons 6.33 6.96 Sewer Base 14.41 17.44 Volume 3.28 3.97 Commercial, 3.6% Irigation, 3.6% Multi-Unit, 0.5% Residental, 92.3% Number of Customer Accounts FY 2015 65 WATER AND SEWER FUND EXPENDITURES Expenses for the fund are anticipated to increase by $2,827,163, or 7.9% from $35,595,596 in FY 2015 to $38,422,759 in FY 2016. Excluding other requirements, expenses are projected to decrease by $855,815, or -4%, going from $21,547,815 to $20,692,000. A 26.2% increase is anticipated in Other Requirements, from $14,047,781 in FY 2015 to $17,730,759 in FY 2016 due to annual debt service payments for water and sewer bonds. *Prior to FY 2015, Utility Customer Services included Water Meter Services; Administration was distributed throughout three departments; and Facilities Maintenance, Custodial Services and ROW Mowing were moved from the Parks Department, some of which are in the General Fund. $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 Water & Sewer Fund Comparison FY 2015 - FY 2016 Expenses by Department FY 2015 Projected FY 2016 Adopted 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Projected FY 2016 Adopted Historical Expenses as Portion of Total - Enterprise Fund FY 2012-FY 2014 Actuals FY 2015 Projected & FY 2016 Adopted Budget GIS Lift Stations ROW Mowing* Administration* Water Meter Services Utility Customer Svcs* Construction Distribution & Collection Water Production Wastewater Treatment Other Requirements 66 CITY OF PEARLAND MULTI-YEAR FORECAST FISCAL YEARS 2015 - 2018 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 2015-2016 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. 67 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, ♦ Though the overall FY 2016 tax rate decreased from $0.7121 to $0.7053, the O&M tax rate increased by $0.0004, from the fiscal year 2015 rate of $0.2221 to $0.2225 per $100 valuation. The total tax rate is anticipated to increase fiscal year 2017 by $0.01, all in the O&M rate, and in 2018 by $0.0272, $.01 in the O&M rate and $0.0172 in the debt service portion for planned capital improvements approved by voters in 2007 and the 2016-2020 CIP. The tax impact analysis done for the 2007 bond referendum showed an impact of $.0750 and an additional $0.055 to complete projects from the 2001 referendum, for a total tax rate increase of $0.13. By 2018, the total tax rate is expected to increase $0.0968 from 2007. ♦ Revenue increases of 16.0% are needed in fiscal year 2016 in the water/sewer fund. Additional increases are needed in fiscal years 2017 and 2018 of 10.3% and 9.10%, respectively, in order to meet cash reserve and bond coverage requirements. Structural Imbalance The City’s General Fund for fiscal years 2016 and 2017 show that the fund policy requirement of 2 months recurring operating expenditures is met each year, but also shows a structural imbalance of ($3.5 million) in fiscal year 2016, meaning that recurring expenditures exceed recurring revenues. 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, Tom Reid Library Expansion, the full-year of operations and maintenance of Shadow Creek Ranch Park, Hickory Slough Sportsplex, Centennial Park and expenditures associated with the extensions of various streets. Also included is the phased buildup of street maintenance based on a ROW assessment study completed in 2014. Strategies will need to be put in place now to minimize or prevent further erosion in the imbalance in future fiscal years. Street and sidewalk rehabilitation is funded at $1.45 million for fiscal years 2016 and 2017 and at $2.29 million in 2018 with a goal to reach $4.23 million by 2020. 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 controls are assumed in the plan. The Debt Service Fund expenditure forecast is based upon current debt service 68 payments, as well as anticipated debt from new debt issuances based on the City’s Five-Year CIP and MUD rebates. General Fund and Debt Service revenues are dependent on the net assessed property valuation assumptions which are derived from anticipated residential and commercial development, revaluation of existing property, and the scheduled roll-off of tax abatements. The forecast assumes the following property valuation growth. FY 2016 FY 2017 FY 2018 Property Valuation $8,466,235,689 $9,161,485,978 $9,731,792,581 Growth 11.54% 8.21% 6.23% INDIVIDUAL FUND OVERVIEWS Tax Rate In fiscal year 2016 the proposed tax rate of $0.7053, a decrease of $.0068, allocates $0.2225, or 31.5% to the General Fund and $0.4828 or 68.5% 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 2018, the total tax rate is $0.7425, 32.7% to the General Fund and 67.3% to the Debt Service Fund, which represents an additional increase of 2.00 cents to the General Fund and 1.72 cents to the Debt Service Fund from the fiscal year 2016 adopted tax rate. The Debt Service Fund tax rate for fiscal year 2016 decreased from $0.4900 in fiscal year 2015 to $0.4828 and the General Fund tax rate increased by $0.0004 for a total of $0.2225. Debt Service Fund The Debt Service Fund can meet all current and future obligations based on the City’s Multi-Year Forecast and Five-Year CIP. The issuance of debt is factored in based on the Five-Year CIP. All new debt issued totaling $81.8 million from 2016-2018 is assumed to be issued with a 20-year maturity level principal payment. In order to fund obligations and implement the fiscal year CIP, the Debt Service tax rate will need to increase by $0.0172 from the fiscal year 2016 tax rate of $0.4828 to $0.5000 in fiscal year 2018. From fiscal year 2016 to fiscal year 2018, total revenues are anticipated to increase 7.4% to 10.1% per year. 69 General Fund The General Fund meets reserve requirements; however, cannot fund current services and anticipated operating expenditures in 2016 mainly due to completion of CIP and projects and phased funding of increasing street maintenance funds for investment in our assets. The fund is structurally im balanced, whereby recurring expenditures exceed recurring revenues. By 2017, the General Fund is in balance. The policy reserve requirement of 2 months recurring operating expenditures increases by 10.6% from $11.2 million in fiscal year 2016 to $12.4 million by fiscal year 2018. In order to fund services and meet fund balance policy requirements, the O&M tax rate will increase from $0.2225 in 2016 to $0.2425 by 2018, a $0.0200 increase, though limited by truth-in-taxation laws. Full-time equivalents in the General Fund will increase from 608.69 in fiscal year 2016 to 615.69 for fiscal year 2017 and 625.69 by fiscal year 2018, an increase of 17 positions or 2.8% over the three-year period. Population is expected to increase 2.5% annually, not including the day-time or weekend populations from continued retail development. An increase of 17 positions from 2016 – 2018 are associated with completed CIP for base services and growth. The CIP staff additions include 1 for Independence Park Phase I in 2017, and 3 for the Delores Fenwick Nature Center in 2018. The remaining 13 positions are built in for base growth which includes 4 scheduled police officers per year. Operating expenditures from completed CIP total $342,626 in 2017, increasing to $585,989 in 2018. Fiscal years 2017 and 2018 include Centennial Park Phase 2, the Tom Reid Library Expansion, and Bailey Road extension. In addition to these, fiscal year 2018 includes the Delores Fenwick Nature Center, Fire Station 1 and Hughes Ranch Road reconstruction, to name the major impacts. Property and Sales Tax are a major revenue component funding these expenditures. Revenues from property tax, as a percent to total revenues, are 20.3% in fiscal year 2016. It increases to 22% in fiscal year 2018 due to increases in the O&M tax rate and valuation and revenue from the TIRZ goes from $9.24 million in 2016 to $11.14 million in 2018. 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 29.5% in 2016 and 28.1% in 2018. The City is projected to maintain a modest increase in sales tax in fiscal year 2016 through 2018; a 5.5% increase is projected for 2017 and a 5.0% increase for 2018, mainly due to continued, but moderate, development. 608.69 615.69 625.69 70 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 2016 of 16.0% to meet cash reserve ratios as lower consumption in 2015 has reduced cash equivalents, and the City is issuing debt of $55 million for expansion of the Reflection Bay Reclamation Plant. Revenue increases are also needed of 10.3% and 9.1% for 2017 and 2018 due to additional plant expansions and resulting debt service. Revenue bonds sold over the three-year period 2016 – 2018, total $143.5 million. The utility system users generate the revenues that support the system. Annual water and sewer charges by 2018 total $44.6 million, an increase of $10.6 million from fiscal year 2016, and include growth in the number of connections, as well as two revenue increases needed. The growth in the number of connections average 2.5% annually over the multi-year forecast. Total expenditures increase to $46.9 million in 2018, up from $38.4 million in fiscal year 2016. Debt service increases over the forecast period, from $14.4 million in fiscal year 2016 to $19.0 million in fiscal year 2018. Revenues generate about $2.0 million in pay-as-you go funding for capital projects. With the implementation of the revenue increases included in the forecast, the system can continue to be self- supporting and financially sound. Pearland Economic Development Corporation (PEDC) The PEDC can fund its current operations of providing funding for community beautification and providing incentives to attract capital investment to add to Pearland’s tax base and bring new jobs to the City. Through the 2018 forecast period, the ending fund balance is projected to be $7.1 million in 2018, a decrease of $7.7 million or 52% from the $14.8 million in fiscal year 2016 due to $5.2 million for improvements in 2016, $10.5 million in 2017, and $7.5 million in 2018 for beautification improvements to the SH288 corridor and entrances of Pearland. Funding is also included for infrastructure for Lower Kirby, 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 6.1% through the forecast period, from $10.2 million in fiscal year 2016 to $10.8 million in fiscal year 2018. The sales tax revenues are 82.5% of the total revenue in 2016, up to 95.6% in 2018. The Board of Directors has identified a minimum fund balance of $3.0 million. The available balance in excess can be used to fund infrastructure or business incentive 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 71 not currently known take place, then this forecast will substantially change. This forecast will be updated annually as any new developments that will impact revenue or expenditures are identified as “concrete,” or likely to happen. There are external factors outside of the City, such as the legislature, anticipated TxDOT funding of capital projects, and weather, that could impact the forecast and significantly affect the City’s ability, despite having a prudent financial plan in place, to continue to provide the highest quality service and provide for those capital projects which provide a high quality of life. Our objective is to provide City Council and management a prudent financial plan in order to make decisions to benefit our current and future residents. 72 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 Revenues Property Taxes Property Taxes 26,753,924 28,290,935 29,971,099 32,323,060 35,743,238 Delinquent Taxes 183,479 140,000 147,000 155,850 168,080 Penalty & Interest 194,131 167,000 175,500 185,821 200,403 27,131,534 28,597,935 30,293,599 32,664,731 36,111,720 Miscellaneous Revenue Lease Income - UofH 775,396 763,475 750,039 731,799 711,469 Interest Income 37,272 36,561 36,000 36,500 36,500 812,668 800,036 786,039 768,299 747,969 Bond Proceeds Bond Proceeds on Refunding 33,498,000 54,773,103 33,498,000 54,773,103 Transfers Transfers from Fund 30 277,127 277,127 277,127 277,127 277,127 Transfers from Fund 30 for MUD 4 182,040 179,440 176,710 173,850 170,860 Transfer in From Fund 10 159,272 156,844 154,160 150,454 146,242 618,439 613,411 607,997 601,431 594,229 Total Revenues 62,060,640 84,784,485 31,687,635 34,034,461 37,453,918 MULTI-YEAR BUDGET 2015-18 DEBT SERVICE Projected 73 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 DEBT SERVICE Projected Expenditures Miscellaneous Services Arbitrage Services 21,995 33,880 36,385 39,385 42,385 21,995 33,880 36,385 39,385 42,385 MUD Rebates MUD Rebates 4,307,496 4,792,373 6,161,809 6,566,894 6,919,814 4,307,496 4,792,373 6,161,809 6,566,894 6,919,814 Bond Payment Current Debt Service Principal 10,475,000 11,275,000 11,705,000 11,310,000 11,750,000 Current Debt Service Interest 12,672,297 12,253,498 11,659,018 11,197,344 10,734,742 Future Debt Issuances General Obligation 2015 647,527 653,075 644,575 General Obligation 2016 2,398,169 2,154,844 General Obligation 2017 1,976,147 CO's Series 2015 373,253 376,450 371,550 CO's Series 2016 1,385,761 1,247,011 CO's Series 2017 520,555 Fiscal Fees 10,575 13,325 15,575 17,075 18,575 Bond Issuance Costs 301,550 463,813 Escrow Agent/Issuance 33,182,437 54,303,290 56,641,859 78,308,926 24,400,373 27,337,874 29,417,999 Short-Term Note Current Lease/Purchase (P&I)1,196,175 1,196,247 929,640 762,746 499,880 Future Lease/Purchase 1,196,175 1,196,247 929,640 762,746 499,880 Total Expenditures 62,167,525 84,331,426 31,528,207 34,706,900 36,880,078 Revenues Over(Under)(106,885)453,059 159,427 (672,439)573,840 Expenditures Beginning Fund Balance 4,642,821 4,535,937 4,988,996 5,148,425 4,475,987 Ending Fund Balance 4,535,937 4,988,996 5,148,424 4,475,987 5,049,827 10% Reserve Requirement 2,867,615 2,956,432 3,152,821 3,470,690 3,688,008 Amount over 10% Reserve 1,775,206 2,032,564 1,995,605 1,005,297 1,361,819 DS Tax Rate 0.4900 0.4900 0.4828 0.4828 0.5000 DS Tax Rate Change (0.0072)0.0172 General Obligation-2007 8,530,000 21,825,000 17,535,000 21,475,000 Certificates of Obligation 4,860,000 12,620,000 4,620,000 3,700,000 Total by Year 13,390,000 34,445,000 22,155,000 25,175,000 74 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 Revenues Property Taxes 12,095,419 13,195,853 14,190,297 16,008,564 17,802,694 Sales Taxes 17,326,556 18,929,697 20,594,329 21,728,392 22,817,727 Franchise Fees 6,214,046 6,635,878 7,003,454 7,269,114 7,544,926 Licenses & Permits 4,148,763 3,928,395 3,961,789 4,300,643 4,429,662 Fines & Forfeitures 2,970,397 2,917,038 2,919,450 3,045,589 3,151,111 Charges for Service 12,663,599 13,686,120 16,034,797 17,392,855 18,524,035 Miscellaneous 2,261,088 842,880 745,914 588,533 605,957 Transfers in 3,756,917 3,849,598 3,441,391 3,474,453 3,298,686 Other Financing Sources 1,852,939 1,356,050 900,000 - 2,910,000 Total Revenues 63,289,723 65,341,508 69,791,421 73,808,143 81,084,799 Expenditures General Government 7,686,422 10,906,110 11,430,573 9,998,728 10,378,000 Public Safety 33,140,112 35,514,359 38,631,959 38,866,632 43,341,055 Community Services 2,661,462 3,164,286 3,304,003 3,433,126 3,616,578 Public Works 9,854,846 11,860,763 11,806,888 12,452,826 13,251,322 Parks & Recreation 6,331,074 6,458,722 6,744,751 6,892,843 7,136,012 O&M for CIP 367,286 688,770 Total Operating Expenditures 59,673,916 67,904,240 71,918,174 72,011,440 78,411,737 Transfers Out 2,784,425 1,332,134 1,354,768 1,714,542 2,173,677 Total Expenditures 62,458,341 69,236,374 73,272,942 73,725,982 80,585,414 Revenues Over/(Under) Expenses 831,383 (3,894,866)(3,481,521)82,160 499,385 Beginning Fund Balance 18,623,117 $19,454,500 $15,559,633 $12,078,112 $12,160,273 Ending Fund Balance 19,454,500 $15,559,633 $12,078,112 $12,160,273 $12,659,658 Calculation of Fund Balance Policy: Ending Fund Balance 15,559,633 12,078,112 12,160,273 12,659,658 Less Policy Requirement 10,333,520 11,168,568 11,957,631 12,431,108 Excess funds available over policy 5,226,113 909,544 202,641 228,549 Tax Rate Variable: General Fund 0.2221$ 0.2225$ 0.2325$ 0.2425$ Debt Service Fund 0.4900$ 0.4828$ 0.4828$ 0.5000$ Total Tax Rate 0.7121$ 0.7053$ 0.7153$ 0.7425$ MULTI-YEAR BUDGET 2015-18 GENERAL FUND OVERVIEW Projected $19.45 $15.56 $12.08 $12.16 $12.66 $0 $5 $10 $15 $20 $25 FY 2014 Actual FY 2015 Projected FY 2016 Proposed FY 2017 Projected FY 2018 Projected FUND BALANCE MULTI-YEAR HISTORY - PROJECTION In Millions 75 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 Property Taxes Current Taxes 11,744,431 12,817,498 13,809,808 15,563,800 17,333,377 Delinquent Taxes 79,488 65,000 65,000 71,500 78,650 Penalty & Interest 103,330 100,000 100,000 105,000 110,250 In Lieu of Property Taxes 168,170 213,355 215,489 226,263 237,577 Annexation Areas 1 and 2 42,000 42,840 Total Property Taxes 12,095,419 13,195,853 14,190,297 16,008,564 17,802,694 Sales Taxes Sales Taxes 17,108,792 18,674,954 20,319,329 21,436,892 22,508,737 Mix Drink Taxes 217,764 254,743 275,000 291,500 308,990 Total Sales Taxes 17,326,556 18,929,697 20,594,329 21,728,392 22,817,727 Franchise Fees Gas 285,497 324,993 364,993 375,943 387,221 Electric 2,880,454 2,994,369 3,128,368 3,253,503 3,383,643 Telephone 273,598 275,685 275,300 283,559 292,066 Cable 1,351,770 1,496,770 1,619,820 1,684,613 1,751,997 Sanitation 1,422,727 1,544,061 1,614,973 1,671,497 1,729,999 Total Franchise Fees 6,214,046 6,635,878 7,003,454 7,269,114 7,544,926 Licenses & Permits Building Permit 1,947,575 1,576,600 1,617,600 1,796,128 1,850,012 BP Plan & Zone Adjustment (500) Platting Fees 114,604 126,971 150,480 154,994 159,644 Beer Permits 20,795 16,585 21,000 21,630 22,279 Moving Permits 3,800 4,500 4,500 4,635 4,774 Peddlers & Solicitors 3,415 4,500 4,500 4,635 4,774 Health Certificate Fees 81,310 88,565 134,125 138,149 142,293 Wrecker Permits 4,425 9,256 5,200 5,356 5,517 Building Plan Check Fee 1,091,822 1,040,400 905,856 933,032 961,023 Occupancy Permits 7,900 10,580 11,200 11,536 11,882 Demolition Permits 1,400 1,500 1,500 1,545 1,591 Bldg. Site Work Permit 105,577 80,000 80,000 82,400 84,872 Alarm Permits 21,670 24,725 Health-Registration 1 Yr.500 450 Sign Permits 15,185 16,218 22,820 23,505 24,210 Ambulance Permit 17,100 17,300 18,000 18,540 19,096 Taxi Cab Permit 2,644 4,018 4,020 4,141 4,265 Temporary Structures 2,780 2,500 2,500 2,575 2,652 Recordation & Courier Fee 8,207 7,500 8,000 8,240 8,487 Miscellaneous 225 BP Plan & Zone Adjustment 28,540 30,000 40,000 41,200 42,436 Garage Sale Permits 33,615 35,000 36,000 37,080 38,192 Culvert Permits 250 500 515 530 Animal Licenses 34,300 35,000 37,000 38,110 39,253 Foster Home Inspection 2,100 2,280 2,590 2,668 2,748 Mowing Lien (206) Electrical Permits 144,661 217,380 267,425 305,448 314,611 Plumbing & Gas Permits 175,157 239,083 259,493 297,278 306,196 Mechanical Permits 186,997 222,000 203,660 239,770 246,963 Reinspec. Fee/Inspection 9,040 18,000 18,000 18,540 19,096 Fire Alarm 5,646 9,000 9,000 9,270 9,548 MULTI-YEAR BUDGET 2015-18 GENERAL FUND REVENUE DETAIL Projected 76 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 GENERAL FUND REVENUE DETAIL Projected Fire Protection 4,631 2,200 2,200 2,266 2,334 Fire Sprinkler 16,049 18,000 17,000 17,510 18,035 Fire Sprinkler-Alteration 215 250 250 258 265 Fireworks 150 150 155 159 Irrigation 17,429 23,260 26,540 27,336 28,156 Swimming Pool 38,199 43,080 49,180 50,655 52,175 Dirt Grading Permit 1,750 1,500 1,500 1,545 1,591 Total Licenses & Permits 4,148,763 3,928,395 3,961,789 4,300,643 4,429,662 Fines & Forfeiture Fines & Forfeitures 2,772,319 2,711,000 2,711,000 2,830,885 2,929,966 Child Safety 26,471 27,500 27,500 28,325 29,175 Child Safety-Harris Co.5,385 6,000 6,000 6,180 6,365 Commercial Carrier Fines 71,114 81,100 83,000 85,490 88,055 Time Efficiency (7,502)(10,802)(10,800)(11,124)(11,458) Animal Cruelty 4,750 350 350 361 371 Omnibase 14,758 14,100 14,100 14,523 14,959 State/Service Fee Recoup 81,168 78,450 78,450 80,804 83,228 Fines 100 Bond Forfeitures 1,834 Total Fines & Forefeitures 2,970,397 2,917,038 2,919,450 3,045,589 3,151,111 Service Charges Ambulance Service Fee 2,468,871 2,625,000 2,775,000 2,888,250 2,974,898 Mud/Ems/Fire Collections 79,370 80,828 116,328 119,818 123,412 Strategic Ptr Agrmt/Fire,Ems 272,413 350,022 456,606 484,002 513,043 False Alarm Fee 87,064 76,000 80,000 82,400 84,872 Arrest Fees 5,778 5,800 6,000 6,180 6,365 Clear. Letter Fee 545 500 500 515 530 Subpoena 170 150 150 155 159 Offense Report Copies 106 100 100 103 106 Accident Report Copies 5,806 5,500 5,500 5,665 5,835 Other Copies 80 SRO Equipment 88,500 88,760 100,892 103,919 107,036 SRO Personnel 702,379 705,089 823,177 884,915 951,284 Non-Emergency EMS Transport Non-Emergency EMS Service 9,128 2,000 2,000 2,060 2,122 TCLEOSE Funds Training Tuition 1,900 2,200 2,200 2,266 2,334 Training Recycling 1,572 2,000 2,500 2,575 2,652 Animal Shelter Fees 43,616 40,000 44,000 45,320 46,680 Events & Programs 508,559 493,346 488,392 503,044 518,135 Facility Rentals 122,072 105,000 89,850 92,546 95,322 Swimming Pool Fees 19,480 18,000 18,000 18,540 19,096 Natatorium 130,936 140,000 223,800 230,514 237,429 Recreation Center Rentals 44,822 Recreation Center Memberships 1,255,463 1,290,000 1,367,000 1,408,010 1,450,250 Facility Rental - U of H 2,458 500 700 721 743 Special Event Permit Fee 150 150 150 155 159 Miscellaneous 1,900 1,800 1,800 1,854 1,910 Engineering Inspect Fee 142,509 160,000 150,000 184,500 190,035 TIRZ Administration Fee 6,636,909 7,447,396 9,244,652 10,276,765 11,140,121 Permits Inspection Fee 23,543 25,000 25,000 25,750 26,523 77 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 GENERAL FUND REVENUE DETAIL Projected Traffic Impact Analysis 7,500 9,750 10,500 10,815 11,139 Total Service Charges 12,663,599 13,686,120 16,034,797 17,392,855 18,524,035 Interest Interest Income 98,710 103,000 108,000 111,240 114,577 Unrealized Capital Gain(Loss)(10,478) Total Interest 88,232 103,000 108,000 111,240 114,577 Intergovernmental TX Dept of Transportation 25,224 Total Intergovernmental 25,224 Miscellaneous Building Rent 18,040 18,348 18,650 14,410 14,842 Other Victims Program 7,720 7,000 7,000 7,210 7,426 Phone & Fax Reimbursement 1,005 Street Light Charges 119,553 75,000 75,000 77,250 79,568 Recycle Revenue 80,034 60,000 15,000 N.S.F. Fees 7,400 6,720 7,000 7,210 7,426 Plat Copies Reproduction/Xerox Copies 891 5,155 5,300 5,459 5,623 Sale Of Property 1,476,642 113,105 154,500 59,135 60,909 Cash Short/Over 947 Waiver Of Encroachment 750 1,000 1,000 1,030 1,061 Ambulance Permit App. Fee 3,500 5,700 5,700 5,871 6,047 Suspense Revenue (7) Reimburse from Fund 15 113,792 Sign Revenue 24,500 35,975 33,000 33,990 35,010 Insurance Reimbursement 39,639 15,585 Miscellaneous 253,226 388,836 308,036 258,000 265,740 MUD Annexation Total Miscellaneous 2,147,632 739,880 637,914 477,293 491,379 Grant, Issuance, Transfers From Fund 15 119,482 125,456 129,220 133,096 From Fund 18 21,000 From Fund 30 935,000 1,599,592 1,540,280 1,516,308 1,281,798 From Fund 42 272,032 146,785 144,039 148,360 152,811 From Fund 50 11,274 50,372 31,231 32,168 33,133 From Fund 55 150,000 From Fund 67 132,293 218,786 196,863 202,769 208,852 From Fund 68 278,498 320,558 330,175 340,080 From Fund 70 21,844 From Fund 101 242,139 166,118 166,581 171,578 176,726 From Fund 301 93,947 191,140 196,874 202,780 From Fund 304 19,763 22,431 Transfer From Fund 202 1,044,922 Transfer From Fund 203 506,398 834,297 616,055 634,537 653,573 Transfer From Fund 031 146,794 340,000 Transfer From CDBG 45,071 107,787 109,188 112,464 115,838 Transfer From Fund 200 79,889 Total Grant, Issuance, Transfers 3,756,917 3,849,597 3,441,391 3,474,453 3,298,686 78 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 GENERAL FUND REVENUE DETAIL Projected Other Financing Sources Capital Lease Proceeds 1,852,939 1,356,049 900,000 2,910,000 Total Other Financing Sources 1,852,939 1,356,049 900,000 2,910,000 Total Revenues 63,289,724 65,341,507 69,791,421 73,808,143 81,084,799 79 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 General Government City Council 92,245 99,153 110,418 107,255 108,948 City Manager 995,807 810,784 792,964 811,770 838,427 Human Resources 822,890 952,021 890,482 943,514 967,590 City Secretary 314,987 391,657 362,797 373,980 386,277 Legal 674,971 802,246 741,751 768,444 791,104 Information Systems 1,257,214 3,524,945 2,936,712 1,718,717 1,808,285 Geographic Information Systems 226,960 224,822 233,655 241,458 250,171 Finance 1,864,198 1,966,822 2,188,539 2,087,164 2,178,924 Other Requirements 1,127,114 1,414,212 2,758,636 2,403,733 2,433,909 Library 310,036 719,448 414,619 416,692 420,859 NEW POSITIONS 67,509 New Lease/Purchases 126,000 126,000 Total General Government 7,686,422 10,906,110 11,430,573 9,998,728 10,378,000 Public Safety Police Administration 1,260,277 1,394,079 1,688,434 1,576,574 1,614,049 Patrol 10,259,456 12,052,534 12,825,567 13,312,714 13,943,612 Investigations 2,220,072 2,404,593 2,509,099 2,532,164 2,622,929 Community Serv 968,894 870,301 715,416 739,252 764,796 Support 1,785,866 1,927,159 2,038,923 2,120,944 2,197,456 Jail 1,032,780 1,106,703 1,142,777 1,184,192 1,228,903 Commercial Vehicle Enfcmt 211,870 239,693 240,825 250,012 260,052 SRO 1,154,387 1,145,117 1,206,006 1,247,417 1,292,279 Traffic Enfcmt/Motorcycles 990,851 889,779 887,443 920,467 956,040 Special Investigations 400,581 354,805 394,086 400,201 415,085 Training 104,470 105,567 305,669 307,197 310,269 Police (Total)20,389,504 22,490,330 23,954,245 24,765,509 25,605,471 Animal Control 740,377 811,491 993,517 920,781 952,082 Fire Administration 947,605 1,048,927 1,083,409 1,118,748 Fire 10,901,049 10,054,064 11,090,114 10,288,884 13,523,097 Fire Marshal 673,576 681,031 921,194 866,888 898,265 Emergency Management 42,717 37,817 38,561 38,754 39,141 Health/Code Enforcement 392,889 492,021 585,401 639,585 665,019 NEW POSITIONS 262,822 539,232 Total Public Safety 33,140,112 35,514,359 38,631,959 38,866,632 43,341,055 Community Services Community Development Admin.394,634 434,616 364,389 374,918 388,604 Planning 328,653 1,157,603 417,793 430,204 443,948 Permits & Inspections 961,413 409,094 1,313,438 1,313,512 1,356,133 Communications 342,034 475,688 470,466 483,977 497,884 Municipal Court 634,728 687,285 737,917 764,809 795,201 NEW POSITIONS 65,705 134,808 Total Community Services 2,661,462 3,164,286 3,304,003 3,433,126 3,616,578 Public Works Public Works Engineering Admin.262,659 261,000 261,040 271,523 280,000 Public Works Operations Admin.410,427 206,016 158,901 442,167 165,731 Facilities Maintenance 865,282 1,419,363 1,035,605 1,025,726 1,051,017 Custodial Services 337,574 311,681 355,016 360,280 367,209 Fleet Maintenance 420,020 426,738 259,140 569,462 583,710 Traffic Operations & Maintenance 799,779 978,716 1,150,196 1,086,790 1,062,035 MULTI-YEAR BUDGET 2015-18 GENERAL FUND EXPENDITURES DETAIL Projected 80 Actual Projected Adopted DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 GENERAL FUND EXPENDITURES DETAIL Projected Streets & Drainage 4,684,214 5,284,424 4,964,212 4,971,634 5,877,345 Right-of-Way Maintenance 827,041 1,453,099 1,415,919 1,435,574 Service Center 190,534 151,007 95,150 95,626 66,582 Engineering & Capital Projects Engineering 1,059,772 1,111,524 1,162,814 1,203,629 1,247,735 Capital Projects 824,585 883,253 911,715 944,365 979,652 NEW POSITIONS 65,705 134,733 Total Public Works 9,854,846 11,860,763 11,806,888 12,452,826 13,251,322 Parks & Recreation Administration 885,093 700,181 618,155 642,738 667,935 Resource Development 191,300 130,661 122,137 125,920 129,919 Recreation Center/Natatorium 1,791,973 2,163,765 2,249,197 2,370,079 2,422,319 Westside Event Center 171,703 Parks Maintenance - West 931,107 Parks Maintenance 1,122,670 2,207,760 2,616,758 2,635,781 2,767,169 Athletics 266,017 339,893 329,357 343,275 353,505 Special Events 230,942 319,916 319,682 327,798 337,287 Senior Programs 241,118 233,685 283,592 293,660 302,338 Youth Development 181,379 Aquatics 103,166 141,226 148,398 153,591 155,539 Recycling 214,606 221,635 57,475 NEW POSITIONS Total Parks & Recreation 6,331,074 6,458,722 6,744,751 6,892,843 7,136,012 O&M FOR CIP 342,626 549,542 Personnel Services 24,660 139,228 Total CIP O&M 367,286 688,770 SUBTOTAL 59,673,916 67,904,240 71,918,174 72,011,440 78,411,737 Transfers 2,784,425 1,332,134 1,354,768 1,714,542 2,173,677 Total Transfers 2,784,425 1,332,134 1,354,768 1,714,542 2,173,677 TOTAL EXPENDITURE 62,458,341 69,236,374 73,272,942 73,725,982 80,585,414 81 DESCRIPTION 2016-17 2017-18 Independence Park Ph 1 3,230 6,783 Centennial Park Ph 2 76,045 76,118 Shadow Creek Ranch Trail 4,379 6,130 Delores Fenwick Nature Center 53,166 Green Tee Terrace Trail 3,077 6,461 Tom Reid Library Expansion 90,382 90,382 Fire Station #1 78,284 Fire Station #8 36,447 Max Road 28,231 29,642 Fite Road 16,786 17,625 Smith Ranch Road Expansion (CR 94)15,813 Bailey Road (Veterans to FM 1128)80,611 84,642 Kirby Drive Extension 25,438 26,710 Hughes Ranch Road (CR 403)14,447 57,786 Total $342,626 $585,989 CIP Personnel Services Independence Park Ph 1 $24,660 $50,799 Number of FTE 1 Delores Fenwick Nature Center $88,429 Number of FTE 3 Total $24,660 $139,228 Number of FTE 1 3 Base Personnel General Government 0 1 Public Safety 4 4 Community Services 1 1 Public Works 1 1 Parks 0 0 Base Personnel Increase $$394,233 $876,282 Number of FTE 6 7 Total Personnel Increase $$418,893 $1,015,510 Number of Total FTE 7 10 Streets and Sidewalks Streets 537,000 $537,000 Sidewalks 915,512 $1,750,000 MULTI-YEAR BUDGET 2015-18 GENERAL FUND O & M / NEW PERSONNEL ASSUMPTIONS Projected 82 Actual Projected Proposed DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 Charges for Service Water/Sewer Charges 27,466,634 27,181,801 34,028,464 39,132,297 44,579,405 Sanitation Billing Fee 366,322 377,407 390,054 407,954 418,029 Connection Fee 169,917 168,000 170,200 175,306 184,071 Water/Sewer Tap Fee 382,013 476,902 455,000 493,819 504,936 Late Payment Fee 477,977 495,000 510,000 525,300 541,059 Meter Set Fee 5,500 2,550 2,700 1,500 1,500 Curb Stop Replacement Fee 161 500 500 1,040 1,040 Grease Trap Fee 34,600 39,400 40,500 34,000 34,000 Reconnect Fee 25,325 30,000 45,400 46,762 48,165 Miscellaneous 325 750 3,200 3,200 3,200 Total Charges For Service 28,928,774 28,772,310 35,646,018 40,821,178 46,315,405 Miscellaneous Revenue NSF Fees 9,075 8,360 9,000 9,000 9,000 Reimbursements Miscellaneous 119,372 100,000 105,000 105,000 105,000 Total Miscellaneous 128,447 108,360 114,000 114,000 114,000 Interest Interest 79,854 139,650 105,000 32,022 36,810 Total Interest 79,854 139,650 105,000 32,022 36,810 Interfund Transfers From Fund 42 1,568,733 1,709,713 1,674,203 2,146,664 2,539,048 From Fund 44 624,612 623,018 670,416 936,699 934,694 From Fund 301 55,000 From Fund 10 235,491 235,491 238,081 245,223 252,580 Total Interfund Transfers 2,483,836 2,568,222 2,582,700 3,328,587 3,726,323 Other Financing Sources Sale of Property 60,317 20,106 20,106 Miscellaneous 85,703 115,680 118,557 122,114 125,777 Capital Lease Proceeds 458,000 Total Other Financing Sources 146,021 573,680 118,557 142,219 145,883 Total Revenues 31,766,930 32,162,222 38,566,275 44,438,006 50,338,421 MULTI-YEAR BUDGET 2015-18 WATER & SEWER FUND DETAIL Projected 83 Actual Projected Proposed DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 MULTI-YEAR BUDGET 2015-18 WATER & SEWER FUND DETAIL Projected EXPENDITURES Public Works Administration 553,840 568,079 579,441 591,029 Lift Stations 1,106,723 1,627,853 1,398,412 1,454,209 1,509,516 Wastewater Treatment Plant 4,712,630 4,609,472 4,614,742 4,653,668 4,941,905 Water Production 7,004,756 8,417,459 7,982,126 8,056,151 8,190,168 Distribution and Sewer Collection 2,100,910 2,459,381 2,023,112 1,726,582 1,802,410 Construction 934,080 875,280 733,434 1,269,901 1,333,336 Water Meter Services 1,406,761 1,583,527 1,615,198 1,647,501 ROW Mowing 378,567 439,456 448,245 457,210 Information Systems GIS 234,138 128,755 175,429 177,183 178,955 Utility Billing 1,779,110 1,090,447 1,173,683 1,219,996 1,271,855 Other Requirements 12,069,952 14,047,781 17,730,759 21,430,693 24,993,266 Total Expenditures 29,942,299 35,595,596 38,422,759 42,631,268 46,917,152 Revenues Over(Under)1,824,631 (3,433,374)143,516 1,806,738 3,421,269 Expenditures Beginning Cash Equivalents 13,549,144 15,373,775 11,940,401 12,083,916 13,890,654 Reserve for Debt Service 1,929,503 2,278,256 2,623,222 2,988,198 4,000,478 Ending Cash Equivalents 13,444,272 9,662,145 9,460,694 10,902,456 13,311,444 Bond Coverage - 1.4 1.55 1.30 1.71 1.59 1.67 Cash Reserve Ratio - 25%45%27%25%26%28% Number of Connections 35,063 35,926 36,811 37,716 % Revenue Increase Needed 4.30%16.00%10.30%9.10% Revenue Bonds to by Issued 59,840,000 44,837,844 38,836,244 $- $3 $6 $9 $12 $15 $18 Actual 2013-14 Projected 2014-15 Adopted 2015-16 Projected 2016-17 Projected 2017-18 CASH EQUIVALENTS MULTI-YEAR HISTORY - PROJECTION $9.66m $9.46m $10.90m $13.31m $13.44m In Millions 84 Actual Projected Proposed DESCRIPTION 2013-14 2014-15 2015-16 2016-17 2017-18 Revenues Sales Tax 8,563,736 9,337,463 10,159,649 10,464,438 10,778,372 Interest Income 76,217 103,183 85,000 36,968 23,733 Intergovernmental 79,060 768,643 1,611,300 12,000 12,000 Miscellaneous 434,108 440,749 460,000 460,000 460,000 Total Operating Revenues 9,153,121 10,650,038 12,315,949 10,973,407 11,274,105 Expenditures Operating 1,727,502 1,872,800 2,020,888 2,085,203 2,147,824 Bond Payments 2,029,810 8,494,287 1,420,458 1,425,757 1,424,669 Inventory 5,000 5,000 5,000 5,000 Capital Outlay 42,320 1,226,744 5,155,000 10,505,000 7,548,000 Total Operating Expenditures 3,799,636 11,598,831 8,601,346 14,020,961 11,125,494 Revenues Over/(Under) Expenses 5,353,485 (948,793)3,714,603 (3,047,554)148,611 Other Financing Sources (Uses) Capital Transfers Out (2,861,958) Incentives (1,564,503)(680,731)(3,591,342)(2,246,514)(2,554,889) Total Other Financing Sources (1,564,503)(3,542,689)(3,591,342)(2,246,514)(2,554,889) Net Change in Fund Balance 3,788,982 (4,491,482)123,261 (5,294,068)(2,406,278) Beginning Fund Balance 15,366,504 19,155,489 14,664,007 14,787,268 9,493,200 (Before Reserves) Debt Service Reserves (665,254) Debt Pay-off (Cumulative)(4,793,794) Ending Fund Balance 13,696,439 14,664,007 14,787,268 9,493,200 7,086,922 Capital Outlay: Vehicle 43,000 Miscellaneous 5,000 5,000 5,000 Lower Kirby Infrastructure 1,800,000 3,000,000 Hwy 288 Corridor Improvements 1,900,000 5,000,000 5,000,000 Entryway/Corridor Improvements 1,450,000 500,000 500,000 Infrastructure 2,000,000 2,000,000 5,155,000 10,505,000 7,548,000 Projected MULTI-YEAR BUDGET 2015-18 PEARLAND ECONOMIC DEVELOPMENT CORPORATION OVERVIEW 85 THIS PAGE INTENTIONALLY BLANK 86 FY 2016 ADOPT ED 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. Property valuation is based on a snapshot of properties and development as of January 1 of each year. New construction value added after January 1 is not included in the City’s valuation until January 1 of the following year, therefore not taxed until the subsequent year. The net taxable value based on values used total $8,466,235,689, an 11.5% or $876.3 million increase over the current adjusted tax roll. Estimated new value added to the roll totals $338,863,092 representing 38.7% of the increase with the remaining coming from revaluation on existing property of $537,397,381 or 61.3% of the increase. Of the new value added, $164.7 million is estimated for residential and $174.2 for commercial. Revaluation for residential is estimated at $343.6 representing a 6.37% increase over last year’s residential value. Brazoria DD #4 6% City of Pearland 27% Brazoria County 16% PISD 51% Distribution of Total Tax Bill 87 In 1998, when the TIRZ was formed, the base property value for the City was $7.1 million. Today, sitting at $2.086 billion in property value, the TIRZ shows the success of the public-private partnership that was entered into years ago. The TIRZ increment value added is estimated at $2,079,220,108, a 25.3% or $420,216,694 increase over last year. TIRZ value added within the TIRZ represents 48.0% of the total increase. 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 FY2016, the administrative fee totals $9.2 million, shown as Charges for Services versus 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 $5.279 million in property taxes at today’s value, tax rate and 100% collection. If this were today, the General Fund would receive $4.6 million and the debt service fund $10.0 million. However, if the TIRZ agreement were no longer in effect, the General Fund would lose $4.8 million in revenues the debt service fund would gain $10.2 million. The tax rate for the adopted budget totals $0.7053 per $100 valuation, a $0.0068 cent total decrease from this year, a decrease of $0.0072 to the rate dedicated for debt service, from the current $0.49 to $0.4828, and an increase to General Fund operations of $0.0004, for a total of $0.2225. This will take the City’s tax rate up to the roll-back rate, but not to exceed the roll-back rate of $0.705311. Based on the City’s 2014 residential average valuation of $187,787, this would result in a reduction of $13 from the fiscal year 2015 tax bill of $1,302. However, when adding in the average residential revaluation of 6.37%, the average residential taxpayer would see an increase of $72, from $1,302 to $1,374. The tax analysis prepared in 2007 for the $162 million bond referendum approved by the voters in May 2007, showed that a 7.5 cent tax rate increase was needed for the implementation of the 2007 bond referendum. At that time an additional 5.5 cents increase was also estimated to complete the 2001 bond referendum, for a total estimated tax rate increase of 13 cents from 2007. The actual increase in the tax rate is lower than what was estimated at the time of the bond referendum , a tax rate increase of only $0.0526, due to 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 98.5%, a tax levy of $14,444,768 will be conveyed to the TIRZ and $43,780,907 will remain with the City. Debt Service, 68 centsParks, 2 cents Where is the Property Tax Dollar Spent? General Gov’t, 7 cents Public Safety, 20 cents Public Works, 3 cents 88 FY 2015 FY 2015 FY 2015 FY 2016 BUDGETED ADJUSTED YEAR END PRELIMINARY LEVY LEVY PROJECTION ROLL REVENUES City Levy - 100%41,382,679 41,734,450 41,108,433 44,447,621 TIRZ - 100%12,443,667 11,813,763 11,636,557 14,664,739 TOTAL at 100%53,826,346 53,548,214 52,744,990 59,112,360 City Collection Rate 100.0%100.0%98.5%98.5% ALLOCATION: General Fund 12,907,258 13,012,688 12,817,498 13,809,808 Debt Service Fund 28,475,421 28,721,762 28,290,935 29,971,099 TIRZ 12,443,667 11,813,763 11,636,557 14,444,768 TOTAL ALLOCATION 53,826,346 53,548,214 52,744,990 58,225,675 Budgeted Adjusted Preliminary Tax Year 2014 2014 2015 Total Taxable Value 7,600,947,459 7,589,975,216 8,466,235,689 Less: TIRZ Added Value 1,747,460,688 1,659,003,414 2,079,220,108 Taxable Value to City 5,853,486,771 5,930,971,802 6,387,015,581 Tax Rate per $100 General Fund 0.2221 0.2225 Debt Service Fund 0.4900 0.4828 Total Tax Rate 0.7121 0.7053 Tax Rate Split General Fund 31.19%31.55% Debt Service Fund 68.81%68.45% Total 100.00%100.00% CITY OF PEARLAND TAX COLLECTIONS 89 TAX RATE DISTRIBUTION LAST TEN YEARS CURRENT FOR FISCAL YEAR 2014-2015 ADOPTED FOR FISCAL YEAR 2015-2016 FISCAL YEAR GENERAL FUND DEBT SERVICE TOTAL TAX RATE 2006 0.3455 0.3289 0.6744 2007 0.298974 0.353685 0.652659 2008 0.2503 0.4023 0.6526 2009 0.2201 0.4325 0.6526 2010 0.2201 0.4325 0.6526 2011 0.2151 0.4500 0.6651 2012 0.2151 0.4700 0.6851 2013 0.2151 0.4900 0.7051 2014 0.2151 0.4900 0.7051 2015 0.2221 0.4900 0.7121 2016 0.2225 0.4828 0.7053 Notes: 2. The City does not have legal debt margin as the law does not mandate any debt limit on the City. 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. 0.3289 0.353685 0.4023 0.4325 0.4325 0.4500 0.4700 0.4900 0.4900 0.4900 0.4828 0.3455 0.298974 0.2503 0.2201 0.2201 0.2151 0.2151 0.2151 0.2151 0.2221 0.2225 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tax Rate Distribution DEBT SERVICE GENERAL FUND 90 YEAR NET ASSESSED VALUATION TAX RATE TOTAL TAX LEVY CURRENT TAX COLLECTIONS % OF CURRENT TAXES COLLECTED DELINQUENT TAX 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 6,996,973,518 0.7051 49,096,473 48,802,720 99.40%262,967 2014-2015 (1)7,589,975,216 0.7121 53,548,214 52,744,990 98.50%205,000 2015-2016 (2)8,466,235,689 0.7053 59,112,360 58,225,675 98.50%212,000 (2) Projected levy and collections ASSESSED VALUATION, TAXES LEVIED AND TAXES COLLECTED TEN YEAR SUMMARY OF ASSESSED VALUATION WITH ESTIMATE FOR FISCAL YEAR 2014-2015 AND ADOPTED FOR FISCAL YEAR 2015-2016 (1) Projected collections 69% 70% 72% 69% 70% 72% 72% 70% 71% 71% 31% 30% 28% 31% 30% 28% 28% 30% 29% 29% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Millions Commercial vs. Residential Tax Net Assessed Value as % of Total Residential Comercial 91 1) Net assessed valuation 2) Estimated for tax year 2016 NET ASSESSED VALUATION $3.58 $4.41 $5.39 $5.90 $6.27 $6.33 $6.37 $6.54 $7.00 $7.59 $8.47 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 In Billions 92 TAXPAYERS BUSINESS ASSESSED VALUE OF PROPERTY % OF ASSESSED VALUE 1 Weatherford US LP Oil Field Service, Rental & Fishing 80,121,550$ 0.95% 2 Pearland Town Center LP Retail Center Management 70,769,470$ 0.84% 3 HCA Healthcare Corp.Hospital 59,761,140$ 0.71% 4 Centerpoint Energy Inc.Utility Company 55,926,710$ 0.66% 5 AmREIT SPF Shadow Creek LP Retail Center Management 48,319,270$ 0.57% 6 MAR Shadow Creek LP Multi-Family Residential 44,000,251$ 0.52% 7 Pearland Multi-Family District Multi-Family Residential 39,771,450$ 0.47% 8 Shadow Creek Apartments LLC Multi-Family Residential 29,900,000$ 0.35% 9 12400 Shadow Creek Parkway LLC Multi-Family Residential 29,900,000$ 0.35% 10 Shadow Kirby LTD PTRN Retail Center Management 28,500,000$ 0.34% 486,969,841$ 5.75% 7,979,265,848$ 94.25% 8,466,235,689$ 100.00% SOURCES: Brazoria and Harris Counties Tax Assessor Collector TOTAL PRINCIPAL TAXPAYERS FISCAL YEAR 2015-2016 TOTAL PRINCIPAL TAXPAYERS ALL OTHERS $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 TOP TEN TAXPAYERS 93 THIS PAGE INTENTIONALLY BLANK 94 DEBT SERVICE FUND SUMMARY FY 2016 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 property values estimated, the budget as proposed assumes a Debt Service tax rate of $0.4828 per $100 assessed valuation, a $0.0072 decrease from the current debt service tax rate, to meet fiscal year 2016 obligations. In fiscal year 2015, the City refunded $51.2 million in existing bonds, comprised of seven different issues, to take advantage of lower interest rates in order to achieve interest cost savings. The refunding saved $7.2 million in interest over 17 years or savings of $425,000 annually. The net present value savings of the refunding totaled $5.721 million or 11.172%, over the 3% net present value savings as a minimum for refunding in the City’s Financial Management Policy Statements. The Debt Service tax rate generates $29,971,099 in current property taxes at a 98.5% collection rate. Revenues include $750,039 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 $154,160 from the City for the meeting room space in the facility. Transfers from the Water-Sewer Fund total $453,837 for some of the debt associated with water/sewer activities. Expenditures total $31,528,207 for fiscal year 2016 and include $24,384,798 in principal and interest payments. Debt (General Obligation and Certificates of Obligation) anticipated to be issued includes $13.390 million in fiscal year 2015 and $34.445 million in fiscal year 2016 pursuant to the City’s capital improvement program. After the General Obligation issuances in 2015 and 2016, there will remain $53.995 million in bonds yet to be issued at 9/30/2016 out of the $162.0 million voted in 2007. Total principal outstanding paid from property taxes at 9/30/2016 is anticipated to be $318 million (this includes new debt but excludes property tax backed debt paid by the water/sewer fund). Net debt per capita is $2,744 at 9/30/2016, up from $2,627 in fiscal year 2015, and up from $2,163 in fiscal year 2006, the year before the $162 million in bonds were voted. Net debt per capita has grown 26.9%, while population has grown 44% during the same time period, from 79,322 to projected 114,000 in fiscal year 2016. This population growth has generated the need for increased and enhanced services resulting in a significant capital improvement program; principal outstanding growing from $172 million in fiscal year 2006 to the $318 million at 9/30/2016, an 85% growth in debt outstanding. Despite high debt levels, due to a strong regional economy and prudent financial management, Moody’s Investor Services and Fitch Ratings have assigned bond ratings of Aa2 and AA- respectively. Tax rebates to in-city MUD's total $6,161,809, an increase of $1,369,436 from fiscal year 2015 actuals, as newer districts continue to develop as well as increase in valuations. Ending fund balance at 9/30/2016 is anticipated to be $5,148,424 and is $1,995,603 over the reserve policy of $3,152,821, or 10% of expenditures. The reserve over policy is forecasted to be drawn down, going to $346,404 in fiscal year 2019. For fiscal years 2017 through 2019, it is forecasted that the fund will remain above reserve policy guidelines, with additional tax rate increases needed in years 2018 and 2019 (see multi-year forecast) due to the continued issuance of voter approved bonds to complete capital projects as well a potential 2019 new bond referendum of approximately $70 million currently incorporated into the forecast with the first issuance in 2019. 95 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES Property Taxes 27,131,534$ 28,456,557$ 28,597,935$ 30,293,599$ Miscellaneous 812,668 799,476 800,036 786,039 Transfers 618,439 613,411 613,411 607,997 Bond Proceeds 33,498,000 54,773,103 TOTAL 62,060,641 29,869,444 84,784,485 31,687,635 OPERATING EXPENDITURES Rebates & Misc.4,329,491 4,747,297 4,826,253 6,198,194 Bond Payment 56,641,859 23,806,317 78,308,926 24,400,373 Short-Term Note 1,196,175 1,196,245 1,196,247 929,640 TOTAL 62,167,525 29,749,859 84,331,426 31,528,207 REVENUES OVER (UNDER) EXPENDITURES (106,884) 119,585 453,059 159,428 FUND BALANCE - BEGINNING 4,642,821 4,535,937 4,535,937 4,988,996 FUND BALANCE - ENDING 4,535,937$ 4,655,522$ 4,988,996$ 5,148,424$ Reserve 10%2,868,353 2,974,986 2,956,432 3,152,821 Over Policy 1,667,584 1,680,536 2,032,564 1,995,603 DEBT SERVICE FUND - 20 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 96 FY 2015 FY 2015 FY2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 020-0000-350.01-01 CURRENT TAXES 26,753,924 28,046,481 28,290,935 29,971,099 020-0000-350.01-02/06 DELINQUENT TAXES 183,479 210,295 140,000 147,000 020-0000-350.01-03 PENALTY & INTEREST 194,131 199,781 167,000 175,500 *TAXES 27,131,534 28,456,557 28,597,935 30,293,599 020-0000-335-65-00 MISCELLANEOUS 020-0000-356.00-00 INTEREST INCOME 35,953 36,001 36,561 36,000 020-0000-356.06-00 UNREALIZED CAP GAIN (LOSS)1,319 020-0000-358.99-00 MISCELLANEOUS 775,396 763,475 763,475 750,039 *MISCELLANEOUS 812,668 799,476 800,036 786,039 020-0000-359.09-00 FROM FUND 30 459,167 456,567 456,567 453,837 020-0000-359.99-00 FROM FUND 10 159,272 156,844 156,844 154,160 618,439 613,411 613,411 607,997 020-0000-360.01-00 BOND PROCEEDS 29,720,000 47,165,000 020-0000-360.04-00 PREM/DISCT ON BONDS 3,778,000 7,608,103 *BOND PROCEEDS 33,498,000 0 54,773,103 0 TOTAL 62,060,641 29,869,444 84,784,485 31,687,635 *GRANT, ISSUANCE, TRANSFER DEBT SERVICE FUND - 20 REVENUES FY 2016 ADOPTED BUDGET 97 FY 2015 FY 2015 FY2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 020-7000-555.11-12 ARBITRAGE FEES 21,995 33,880 33,880 36,385 21,995 33,880 33,880 36,385 020-7000-556.52-01 MUD 17 525,913 590,192 578,965 641,841 020-7000-556.52-02 MUD 18 524,180 539,956 561,580 649,423 020-7000-556.52-03 MUD 19 605,433 667,616 650,040 733,309 020-7000-556.52-04 MUD 23 294,927 310,096 304,439 324,135 020-7000-556.52-05 MUD 26 864,610 831,496 935,388 928,439 020-7000-556.52-06 MUD 28 252,688 266,433 302,276 467,647 020-7000-556.52-07 MUD 34 315,196 399,854 378,202 486,649 020-7000-556.52-08 BRAZ/FT BEND MUD 1 835,736 1,016,736 980,502 1,766,189 020-7000-556.52-09 MUD 35 88,813 91,038 92,315 126,559 020-7000-556.52-10 MUD 509 8,666 37,618 *MUD REBATES 4,307,496 4,713,417 4,792,373 6,161,809 020-7000-560.05-00 PRINCIPAL 10,475,000 11,276,250 11,275,000 12,375,000 020-7000-560.10-00 INTEREST 12,672,297 12,517,592 12,253,498 12,009,798 020-7000-560.15-00 FISCAL AGENT FEES 10,575 12,475 13,325 15,575 020-7000-560.20-00 ISSUANCE COSTS 301,550 463,813 020-7000-560.35-00 PAYMENT TO ESCROW AGENT 33,182,437 54,303,290 *BOND PAYMENT 56,641,859 23,806,317 78,308,926 24,400,373 020-7000-561.04-01 PRINCIPAL - AMB/VIDEO SYSTEM 98,351 102,032 102,033 020-7000-561.04-02 INTEREST 6,528 2,846 2,846 020-7000-561.05-01 PRINCIPAL - OSSI/FY2009 297,444 308,188 308,188 319,320 020-7000-561.05-02 INTEREST 36,346 25,601 25,601 14,469 020-7000-561.06-01 PRINCIPAL - FY2010 58,986 60,423 60,423 61,896 020-7000-561.06-02 INTEREST 5,573 4,135 4,135 2,662 020-7000-561.07-01 PRINCIPAL - FY2011 121,488 124,090 124,090 126,772 020-7000-561.07-02 INTEREST 12,890 10,360 10,360 7,677 020-7000-561.08-01 PRINCIPAL - FY2012 264,206 267,626 267,626 108,842 020-7000-561.08-02 INTEREST 10,919 7,500 7,500 4,558 020-7000-561.09-01 PRINCIPAL - FY2013 259,687 252,274 252,274 257,438 020-7000-561.09-02 INTEREST 23,757 31,170 31,171 26,006 *SHORT TERM NOTE 1,196,175 1,196,245 1,196,247 929,640 TOTAL 62,167,525 29,749,859 84,331,426 31,528,207 *MISCELLANEOUS SERVICES DEBT SERVICE FUND - 20 EXPENDITURES FY 2016 ADOPTED BUDGET 98 Fiscal Year Principal Interest Total 2015-2016 12,375,000 12,009,798 24,384,798 2016-2017 11,980,000 11,556,869 23,536,869 2017-2018 12,420,000 11,080,898 23,500,898 2018-2019 15,125,000 10,552,473 25,677,473 2019-2020 15,675,000 9,956,556 25,631,556 2020-2021 16,280,000 9,315,076 25,595,076 2021-2022 16,850,000 8,651,769 25,501,769 2022-2023 17,500,000 7,947,976 25,447,976 2023-2024 18,115,000 7,168,019 25,283,019 2024-2025 18,915,000 6,364,069 25,279,069 2025-2026 19,530,000 5,550,131 25,080,131 2026-2027 20,310,000 4,697,548 25,007,548 2027-2028 21,080,000 3,854,416 24,934,416 2028-2029 21,875,000 2,996,008 24,871,008 2029-2030 14,005,000 2,242,128 16,247,128 2030-2031 14,570,000 1,617,358 16,187,358 2031-2032 15,200,000 954,090 16,154,090 2032-2033 4,715,000 513,975 5,228,975 2033-2034 4,860,000 309,884 5,169,884 2034-2035 2,320,000 145,897 2,465,897 2035-2036 935,000 78,772 1,013,772 2036-2037 620,000 43,938 663,938 2037-2038 640,000 14,800 654,800 TOTAL 295,895,000 117,622,446 413,517,446 Series Name Principal Amount Permanent Improvement and Refunding Bonds Series 2005 940,000 Certificates of Obligation Series 2006 800,000 Permanent Improvement and Refunding Bonds Series 2006 8,525,000 Permanent Improvement and Refunding Bonds Series 2007 40,135,000 Certificates of Obligation Series 2007 11,640,000 Permanent Improvement Bonds Series 2008 16,180,000 Certificates of Obligation Series 2008 8,180,000 Permanent Improvement and Refunding Bonds Series 2009*14,580,000 Certificates of Obligation Series 2009 7,370,000 Certificates of Obligation Series 2009-A 8,945,000 Permanent Improvement Bonds Series 2010A 10,625,000 Permanent Improvement and Refunding Series 2010B 555,000 Permanent Imrpovement Bonds Series 2011 4,905,000 Certificates of Obligation Series 2011 1,255,000 BC MUD 4 Series 2011 2,250,000 42,890,000 Certificates of Obligation Series 2013 2,585,000 8,745,000 39,875,000 Certificates of Obligation Series 2014 4,395,000 47,165,000 Certificates of Obligation Series 2015 4,860,000 Permanent Improvement and Refunding Bonds Series 2015 8,495,000 TOTAL 295,895,000 Permanent Improvement Refunding Bonds Series 2012* * Excludes refunding portion associated with Water/Sewer Permanent Improvement and Refunding Bonds Series 2014 Does not include new debt anticipated to be issued in 2016 and in future years. Permanent Improvement Bonds Series 2013 GENERAL LONG-TERM DEBT* AS OF 9/30/2015 Permanent Improvement and Refunding Bonds Series 2015 GOVERNMENTAL DEBT MATURITY SCHEDULE 99 AS OF 9/30/2015 GOVERNMENTAL DEBT TO MATURITY $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Principal Interest 0.0000 0.0100 0.0200 0.0300 0.0400 0.0500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Ratio of Net Bonded Debt to Assessed Valuation 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Bonded Debt per Capita 100 AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/16 3/1/2016 Series 2005 Permanent Improvement 37,015,000 940,000 23,500 963,500 9/1/2016 and Refunding Bonds 0 Fiscal Year Total 940,000 23,500 963,500 0 3/1/2016 Series 2006 Permanent Improvement 32,165,000 445,000 202,578 647,578 9/1/2016 and Refunding Bonds 193,400 193,400 Fiscal Year Total 445,000 395,978 840,978 8,080,000 3/1/2016 Series 2006 Certificates of 9,700,000 395,000 18,722 413,722 9/1/2016 Obligation 8,353 8,353 Fiscal Year Total 395,000 27,075 422,075 405,000 3/1/2016 Series 2007 Permanent Improvement 69,640,000 2,345,000 939,303 3,284,303 9/1/2016 and Refunding Bonds 880,678 880,678 Fiscal Year Total 2,345,000 1,819,981 4,164,981 37,790,000 3/1/2016 Series 2007 Certificates of 23,250,000 400,000 224,000 624,000 9/1/2016 Obligation 213,500 213,500 Fiscal Year Total 400,000 437,500 837,500 11,240,000 3/1/2016 Series 2008 Permanent Improvement 22,835,000 325,000 376,388 701,388 9/1/2016 Bonds 368,263 368,263 Fiscal Year Total 325,000 744,650 1,069,650 15,855,000 3/1/2016 Series 2008 Certificates of 9,000,000 150,000 195,509 345,509 9/1/2016 Obligation 192,509 192,509 Fiscal Year Total 150,000 388,019 538,019 8,030,000 3/1/2016 Series 2009 Permanent Improvement 14,580,000 420,000 310,846 730,846 9/1/2016 and Refunding Bonds*305,071 305,071 Fiscal Year Total 420,000 615,918 1,035,918 14,160,000 3/1/2016 Series 2009 Certificates of 8,520,000 166,451 166,451 9/1/2016 Obligation 240,000 166,451 406,451 Fiscal Year Total 240,000 332,903 572,903 7,130,000 3/1/2016 Series 2009A Certificates of 12,145,000 640,000 166,883 806,883 9/1/2016 Obligation 158,083 158,083 Fiscal Year Total 640,000 324,965 964,965 8,305,000 3/1/2016 Series 2010A Permanent Improvement 12,415,000 380,000 196,076 576,076 9/1/2016 Bonds 192,276 192,276 Fiscal Year Total 380,000 388,353 768,353 10,245,000 GENERAL DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET 101 AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/16 GENERAL DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET 3/1/2016 Series 2010B Permanent Improvement 1,630,000 225,000 9,450 234,450 9/1/2016 Refunding Bonds 4,950 4,950 Fiscal Year Total 225,000 14,400 239,400 330,000 3/1/2016 Series 2011 Permanent Improvement 5,400,000 155,000 93,566 248,566 9/1/2016 Bonds 90,466 90,466 Fiscal Year Total 155,000 184,031 339,031 4,750,000 3/1/2016 Series 2011 Certificates of 2,095,000 210,000 13,115 223,115 9/1/2016 Obligation 10,920 10,920 Fiscal Year Total 210,000 24,035 234,035 1,045,000 3/1/2016 Series 2011 BC MUD 4 2,640,000 130,000 46,338 176,338 9/1/2016 Refunding Bonds*44,550 44,550 Fiscal Year Total 130,000 90,888 220,888 2,120,000 3/1/2016 Series 2012 Permanent Improvement 43,575,000 1,955,000 769,425 2,724,425 9/1/2016 Refunding Bonds*720,550 720,550 Fiscal Year Total 1,955,000 1,489,975 3,444,975 40,935,000 3/1/2016 Series 2013 Certificates 2,745,000 85,000 55,669 140,669 9/1/2016 of Obligation 54,394 54,394 Fiscal Year Total 85,000 110,063 195,063 2,500,000 3/1/2016 Series 2013 Permanent 9,315,000 295,000 183,259 478,259 9/1/2016 Improvement Bonds 178,834 178,834 Fiscal Year Total 295,000 362,093 657,093 8,450,000 3/1/2016 Series 2014 Permanent Improvement 40,410,000 1,735,000 840,091 2,575,091 9/1/2016 Refunding Bonds*822,741 822,741 Fiscal Year Total 1,735,000 1,662,831 3,397,831 38,140,000 3/1/2016 Series 2014 Certificates 4,625,000 235,000 64,234 299,234 9/1/2016 of Obligation 60,709 60,709 Fiscal Year Total 235,000 124,944 359,944 4,160,000 3/1/2016 Series 2015 Permanent Improvement 47,165,000 1,048,459 1,048,459 9/1/2016 Refunding Bonds 1,048,459 1,048,459 Fiscal Year Total 0 2,096,919 2,096,919 47,165,000 3/1/2016 Series 2015 Permanent Improvement 8,495,000 425,000 106,364 531,364 9/1/2016 Refunding Bonds 116,163 116,163 Fiscal Year Total 425,000 222,527 647,527 8,070,000 3/1/2016 Series 2015 Certificates 4,860,000 245,000 61,303 306,303 9/1/2016 of Obligation 66,950 66,950 Fiscal Year Total 245,000 128,253 373,253 4,615,000 TOTAL 424,220,000 12,375,000 12,009,798 24,384,798 283,520,000 *Excludes Water/Sewer Component Does not include new debt anticipated to be issued. 102 Date Amount Issued Amount Outstanding Description Rate Maturity Issued As of 9/30/16 Annual Permanent Imp. and 3.25%, 3.5%, 3.625%2005 37,015,000 - 3/1/2016 940,000 Principal Refunding Bonds 3.75%,3.875%,4%,5%,2029 3/1/2016 23,500 Interest Series 2005 4.1%,4.125%,4.2%,4.25%9/1/2016 - Interest 4.3%, 4.5%,4.8% Permanent Imp. and 4%,4.125%,4.25%,2006 32,165,000 8,080,000 3/1/2016 445,000 Principal Refunding Bonds 4.5%,5%,4.75%,4.8%2029 3/1/2016 202,578 Interest Series 2006 9/1/2016 193,400 Interest Certificates of 6.125%,5.25%,4.125%,2006 9,700,000 405,000 3/1/2016 395,000 Principal Obligation 4.2%,4.25%,4.3%,4.4%,2029 3/1/2016 18,722 Interest Series 2006 4.375%,4.4%,4.45%, 4.5%9/1/2016 8,353 Interest Permanent Imp. and 4%,4.375%,4.5%,4.75%,2007 69,640,000 37,790,000 3/1/2016 2,345,000 Principal Refunding Bonds 5%,5.5%,4.6%2034 3/1/2016 939,303 Interest Series 2007 9/1/2016 880,678 Interest Certificates of 3.25%,4.25%,5%,5.25%2007 23,250,000 11,240,000 3/1/2016 400,000 Principal Obligation 4.30%2034 3/1/2016 224,000 Interest Series 2007 9/1/2016 213,500 Interest Permanent Imp. Bonds 4%,4.5%,4.625%,5%2008 22,835,000 15,855,000 3/1/2016 325,000 Principal Series 2008 5.25%,5.5%,4.78%2034 3/1/2016 376,388 Interest 9/1/2016 368,263 Interest Certificates of 3.75%,3.875%,4%,4.125%2008 9,000,000 8,030,000 3/1/2016 150,000 Principal Obligation 4.25%,4.3%, 4.375%,4.4%2034 3/1/2016 195,509 Interest Series 2008 4.5%,5%,4.9%9/1/2016 192,509 Interest Permanent Imp. and 2.0%, 2.50%, 2.75%, 3.25%, 3.4%2015 14,580,000 14,160,000 3/1/2016 420,000 Principal Refunding Bonds 3.6%, 3.7%, 3.75%, 3.85%, 4.0%2034 3/1/2016 310,846 Interest Series 2009*4.1%, 4.2%, 4.5%, 5.0%9/1/2016 305,071 Interest Certificates of 4.5%,4.65%,4%,5%,2009 8,520,000 7,130,000 3/1/2016 166,451 Interest Obligation 5.25%,5.5%,2.25%,2.5%,2034 3/1/2016 240,000 Principal Series 2009 3%,3.5%,3.75%,4.1%,9/1/2016 166,451 Interest 4.25%,4.4%,4.75%,4.625% 4.66% Certificates of 4.5%, 4.2%, 4.1.%, 4.0%2009 12,145,000 8,305,000 3/1/2016 640,000 Principal Obligation 3.85%, 3.75%, 3.7%,3.6%2029 3/1/2016 166,883 Interest Series 2009A 3.25%, 3.4%, 2.75%,2.5%9/1/2016 158,083 Interest 2.25%, 2.0%,3.78%,4.5% Permanent Imp. Bonds 2.0%, 3.0%, 3.25%, 3.50%2011 12,415,000 10,245,000 3/1/2016 380,000 Principal Series 2010A 3.625%,3.75%,3.90%,4.0%2035 3/1/2016 196,076 Interest 4.25%,3.89%9/1/2016 192,276 Interest Permanent Imp. Bonds 2.0%, 3.0%, 3.25%, 3.50%2011 1,630,000 330,000 3/1/2016 225,000 Principal Refunding Series 3.625%,3.75%,3.90%,4.0%2018 3/1/2016 9,450 Interest 2010B 4.25%,3.05%9/1/2016 4,950 Interest General Obligation 2.125%,3.0%,3.25%,3.5%2011 5,400,000 4,750,000 3/1/2016 155,000 Principal Series 2011 4.0%,4.125%,3.84%2036 3/1/2016 93,566 Interest 9/1/2016 90,466 Interest Certificates of 2.09%2011 2,095,000 1,045,000 3/1/2016 210,000 Principal Obligation 2021 3/1/2016 13,115 Interest Series 2011 9/1/2016 10,920 Interest BC MUD 4 2.5%, 2.75%, 3.0%, 3.5%2011 2,640,000 2,120,000 3/1/2016 130,000 Principal Series 2011 4.0%, 4.125%, 4.5%, 4.7% 2032 3/1/2016 46,338 Interest 4.8%, 5.0%,4.42%9/1/2016 44,550 Interest Permanent Imp. Bonds 3.0%, 4.0%, 5.0%,3.44%2012 43,575,000 40,935,000 3/1/2016 1,955,000 Principal Refunding Series 2029 3/1/2016 769,425 Interest GENERAL DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET Requirements 103 Date Amount Issued Amount Outstanding Description Rate Maturity Issued As of 9/30/16 Annual GENERAL DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET Requirements 2012*9/1/2016 720,550 Interest Certificates of 3.0%,4.0%,4.25%,4.375%,2013 2,745,000 2,500,000 3/1/2016 85,000 Principal Obligation Series 2013 4.5%,4.625%,5.0%,4.05%2038 3/1/2016 55,669 Interest 9/1/2016 54,394 Interest Permanent Imp. Bonds 3.0%,4.0%,4.125%,4.25%,2013 9,315,000 8,450,000 3/1/2016 295,000 Principal Series 2013 4.375%,4.4%,4.5%,4.625%2038 3/1/2016 183,259 Interest 4.29%9/1/2016 178,834 Interest Permanent Imp. Bonds 3.25%, 3.5%, 3.625%, 3.75%, 2015 40,410,000 38,140,000 3/1/2016 1,735,000 Principal Series 2014 3.875%, 4.0%, 4.1%, 4.125%2034 3/1/2016 840,091 Interest 4.2%, 4.25%, 4.3%, 4.5%, 5.0%9/1/2016 822,741 Interest Certificates of 2.0%, 3.0%, 3.125%, 3.25%, 2014 4,625,000 4,160,000 3/1/2016 235,000 Principal Obligation Series 2014 3.375%, 4.0%2038 3/1/2016 64,234 Interest 9/1/2016 60,709 Interest Permanent Imp. Bonds 2.0%,3.0%,3.125%,3.25%,4.0%,2015 47,165,000 47,165,000 3/1/2016 - Principal Refunding Series 5.0%2034 3/1/2016 1,048,459 Interest 2015 9/1/2016 1,048,459 Interest Permanent Imp. Bonds 2.0%, 2.5%, 3.0%, 3.2%, 3.25%,2016 8,495,000 8,070,000 3/1/2016 425,000 Principal Series 2015 4.00%2035 3/1/2016 106,364 Interest 9/1/2016 116,163 Interest Certificates of 2.0%, 2.5%, 3.0%, 3.125%, 2016 4,860,000 4,615,000 3/1/2016 245,000 Principal Obligation Series 2015 3.25%, 3.375%, 4.0%2035 3/1/2016 61,303 Interest 9/1/2016 66,950 TOTAL 424,220,000 283,520,000 24,384,798 *Excludes Water/Sewer Component Does not include new debt anticipated to be issued in 2016 and in future years. 104 OVERVIEW FY2015 FY2015 FY 2016 FY2014 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET REVENUES Property Taxes $12,095,419 $13,104,208 $13,195,853 $14,190,297 Sales and Use Taxes 17,326,556 18,063,535 18,929,697 20,594,329 Franchise Fees 6,214,046 6,646,438 6,635,878 7,003,454 Licenses & Permits 4,148,763 3,922,331 3,928,395 3,961,789 Fines & Forfeitures 2,970,397 3,105,239 2,917,038 2,919,450 Charges for Service 12,663,599 14,077,727 13,686,120 16,034,797 Miscellaneous 2,147,297 611,309 842,880 745,914 Transfers in 3,870,709 2,975,094 3,849,597 3,441,391 Other Financing Sources 1,852,939 1,761,000 1,356,049 900,000 TOTAL REVENUES 63,289,724 64,266,881 65,341,507 69,791,421 EXPENDITURES General Government 7,686,422 10,380,918 10,906,110 11,430,573 Public Safety 33,140,112 36,450,771 35,514,359 38,631,959 Community Services 2,661,462 3,134,527 3,164,286 3,304,003 Public Works 9,854,846 12,138,067 11,860,763 11,806,888 Parks & Recreation 6,331,074 6,771,599 6,458,722 6,744,751 Total Operating Expenditures 59,673,916 68,875,882 67,904,240 71,918,174 Transfers Out 2,784,425 1,546,744 1,332,134 1,354,768 TOTAL EXPENDITURES 62,458,341 70,422,626 69,236,374 73,272,942 Revenues Over/(Under) Expenses 831,383 (6,155,745)(3,894,867)(3,481,521) Beginning Fund Balance 18,623,117 19,454,500 19,454,500 15,559,633 Ending Fund Balance $19,454,500 $13,298,755 $15,559,633 $12,078,112 Policy - 2 months Recurring Oper.10,495,492 10,333,520 11,168,568 Fund Balance over Policy 2,803,263 5,226,113 909,544 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,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 53.7% 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 529.19 full-time employees and 80 part-time employees including paid volunteers, utilities, fuel, park and right-of-way maintenance, and street lighting, just to name a few. GENERAL FUND - 10 FY 2016 ADOPTED BUDGET SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE 105 FY 2016 ADOPTED BUDGET GENERAL FUND SUMMARY Sales Taxes 30% Property Taxes 20% Franchise Fees 10% License & Permits 6% Fines & Forfeitures 4% Charges for Service 23% Miscellaneous 1% Transfers 5% Other Sources 1% TOTAL REVENUES - $69.8 M General Government 16% Public Safety 53% Community Services 4% Public Works 16% Parks & Recreation 9% Transfers Out 2% TOTAL EXPENDITURES - $73.3M BY FUNCTION/DEPARTMENT 106 GENERAL FUND – 10 REVENUE AND EXPENDITURE SUMMARY FY 2016 ADOPTED BUDGET Fiscal Year 2014-2015 For fiscal year 2015 revenues are expected to be $65,341,507, $1,074,626 greater than the amended budget, mainly due to higher sales tax revenues as a result of growth , new developments, and increased consumer confidence. The fiscal year 2015 budget incorporated a 6.0% increase in sales tax receipts, which included increases related to the residential and commercial growth seen over the prior years. Sales tax remittances to date are higher than last year. The projected sales tax for the fiscal year is $18,674,954, $831,419, or 4.7% higher than the amended budget. Franchise Fees of $6,635,878 is $10,560 lower than budget. License and Permit revenue is projected to be $6,064 higher than budget, at $3,928,395. This is less than FY 2014 by $220,368, -5.3%. This is due mainly to large commercial developments in FY 2014 and a lower average value for new single home development in FY 2015. The City permitted $99.6 million in new commercial value through September 2015 versus $134.2 million through September 2014. Charges for Services total $13,686,120 and are $391,607 less than budget due to ambulance service fees that are $132,435 or 4.8% less than budget and TIRZ Administrative Fee are projected to be $7,447,396, $357,272, 4.6% less than budgeted. Miscellaneous Revenues of $842,880 are $231,571 over budget mainly due to sale of property, interest income, and miscellaneous revenues, but lower than fiscal year 2014 by $1.3 million as the City sold land for $1.4 million in FY 2014. Transfers In of $3.8 million are $874,503 greater than budget due to three non-recurring transfers: $409,492 from Water/Sewer Fund for their share of the ERP Project, $150,000 from the Sidewalk Fund for the Sidewalk Gap Program, and $340,000 from the Solid Waste Fund. Other Financing Sources of $1,356,049 are lower than budget by $404,951 due to using cash versus lease proceeds on the ERP. Fiscal year 2015 operating expenditures total $67,904,240 and are less than budget by $971,642, -1.4%, mainly due to vacant Police Officer and Firefighter positions. The 2015 budget assumed the opening of Fire Station #3 in February, however, the Station did not open until August 2015, saving personnel and operating costs. Transfers Out to other funds are projected to be $1,332,134, $214,610 less than budgeted. This is mainly due to savings in the Property Insurance fund due to lower windstorm premiums. Total expenditures, including transfers, exceed revenues by $3,894,867, $2,260,878 less than the $6,155,745 planned drawdown of fund balance. Fund balance at 9/30/2015 is anticipated to be $15,559,633 $2,260,878, more than budgeted and $5.2 million in excess of a reserve requirement of 2 months. These funds can be used to fund non-recurring items in the fiscal year 2016 budget. Fiscal Year 2015-2016 Fiscal year 2016 revenues total $69,791,421, which is $4,449,914, or 6.8% higher than fiscal year 2015 projections and $5,524,540 or 8.6% higher than the fiscal year 2015 budget. Excluding Other Financing Sources, revenues total $68,891,421, $4,905,963, or 7.7%, more than projections. The budget incorporates an 8.8% increase in sales tax receipts, which includes increases related to the residential and commercial growth, as well as the opening of Costco, which is almost 2% of the growth. Sales tax totals $20,319,329, up $1,644,375 over the projected fiscal year 2015 collection of $18,674,954. Increases expected in property tax collection, at $14,190,297, $994,444 greater than the projected $13,195,853 in fiscal year 2015 are due to higher values. Charges for Services of $16,034,797 are up $2,348,677 mainly due to TIRZ administrative fees of $9,244,652 which are $1,797,256 higher than the projection for fiscal year 2015. This increase is attributable to the continued growth of assessed valuation. Fines and Forfeitures, based on charges and other activities, have been flat, as such, the 2016 budget continues to reflect at $2,919,450. Miscellaneous revenues of $745,914 decreased by $96,966 mainly due to the sale of property in fiscal year 2014. Franchise Fees are $367,576 higher than the projected fiscal year 2015, attributable largely to growth. Operating expenditures total $71,918,174, a 5.9%, or $4,013,934, increase from the 2015 projections and $3,042,292 or a 4.4% increase from the 2015 amended budget. Of the FY 2016 expenditures, $4,920,167 are non- recurring expenditures. When comparing recurring expenditures, expenditures grow by $4,640,642, or 7.4%. The 107 variance to budget is explained below with additional detail: FY 2015 Amended Budget FY 2016 Adopted Budget Adopted to Amended (Decrease)/Increase Total Operating Budget $68,875,882 $71,918,174 $3,042,292 Non-Recurring Carryover (1,902,267) 4.4% Non-Recurring Funding (4,616,250) (4,920,167) Total Recurring $62,357,365 $66,998,007 $4,640,642 % Increase 7.4% Recurring Budgeted Expenditures FY 2016: Medical Increase 499,086 Compensation - 2% cost-of-living 737,079 2% Shift of Payroll Schedules 72,498 3% Police Step Pay 84,739 Conversion of Volunteer Firefighters to paid part-time 168,522 New Positions, including Firefighters for Stn #2, full year for Stn #3, and 8 Police Officer Positions 1,139,817 Supplies, Utilities, etc., for Stn #2 and full year Stn #3 299,428 Increase in Emergency Radio Fees 108,525 Replacement Computers increase 81,580 Laserfiche Upgrade ($84,000 total, $57,000 non- recurring) 27,000 Recycling Center - transfer of operations to KPB (64,160) Parks Equipment Lease 103,000 Replacement Ambulance 76,900 Streets & Sidewalk Maintenance 483,733 Increase in Replacement Vehicles 131,258 ROW Mowing 629,175 Increase in Medical Contract for Fire/EMS Services 22,000 Increase in supplies, maintenance, insurance and other 40,462 Total $4,640,642 Salaries and Benefits account for the largest portion of the $4.6 million variance of recurring operating expenditure from the 2015 budget mainly due to the increasing cost of health benefits, a 2% cost-of-living increase, the 3% step pay for Police Officers, a 2% shift of the payroll schedules, as well as new positions added in fiscal year 2016. Medical premiums are increasing by 23%, or $499,086 in the General Fund. New positions added for fiscal year 2016 result in a net increase of 24.52 full-time equivalent positions (20.52 full-time and 4.0 part-time FTE) in the General Fund. In the Fire Department, new positions include 9 full-time, 3 part-time, and 3 paid/volunteer Firefighters to staff Station #2, a Health/Code Enforcement Officer to begin April 1, 2016, and 2 part-time Receptionists. Eight full-time Police Officers are to begin April 1, 2016, which includes upgrades of four current Officers to Sergeant. Human Resources is adding a Human Resources Generalist to begin April 1, 2016. Community Development includes a Small Business Coordinator to begin April 1, 2016, and a Plans Examiner to begin January 1, 2016 in Permits & Inspections. A part-time Bailiff, partially funded from the Municipal Court Security Fund, is increased to full-time, and one Recreation Specialist position at the Parks Recreation Center is eliminated. General Government totals $11,430,573, $524,463 greater than fiscal year 2015 projections, and $1,049,655 greater than the 2015 amended budget. Included in the budget is $1,600,265 needed to implement the second year of a two-year conversion of the City’s current financial software to a new system. Increases include an upgrade of Laserfiche with 45 user licenses for $84,000 and the cost of adding a new Human Resources Generalist to begin April 1, 2016. Other Requirements include a 2% average cost-of-living pool of $742,079 for the entire General Fund to be distributed to each department, a 2% shift of the payroll schedules ($72,498), and the 3% Police step pay of $84,739. Also budgeted is $200,000 for the renovation of the recycling center to accommodate KPB offices and $50,000 toward the first year of KPB operating the Recycling Center. The budget for Public Safety, which includes Police and Fire totals $38,631,959, a $3,117,600 increase from fiscal 108 year 2015 projections and a $2,181,188 increase over the 2015 amended budget. Police, including Animal Services, is increasing $1,694,164 over 2015 projections and $1,283,577 over the 2015 amended budget due to the addition of: $865,695 for 8 Patrol Officers and 3 vehicles; and 4 upgrades of Officers to Sergeant with 4 vehicles. Animal Services is increasing $182,026 over the FY 2015 projection, mainly due to the replacement of two vehicles and contracting veterinary services as a result of recent rulings from multiple agencies: Chapter 483 of the Texas Health and Safety Code defines dangerous drugs, Title 21 Food and Drugs Chapter II Drug Enforcement Administration governs the distribution of those drugs to veterinarians, and the American Veterinary Medical Association Chapter 573 Rule 573.10-573.13 dictates the liability, and fines, to the veterinarians if they allow the use of their medical license to prescribe or practice without having a patient/doctor relationship with an animal; therefore, a veterinarian is required to administer medical treatment, including worming, heartworm prevention, etc., to animals. Animal Services requires a contract with a veterinarian to provide the services previously provided by the staff. Total Fire Services is budgeted at $13,635,974. Fire Operations increased by $1,423,436 from the 2015 projected budget mainly due to the addition of 9 full-time, 3 part-time, and 3 paid/volunteer Firefighters to staff Station #2, a full year of funding for Station #3, a full-time Health/Code Enforcement Officer to begin April 1, 2016, two part-time Receptionists, as well as the replacement of a ladder truck and an ambulance, a replacement vehicle for Fire Operations, two replacement vehicles in the Fire Marshal’s Office, and an increase in contracted Medical services . As Public Safety comprises 57% of the personnel within the General Fund, the departments are heavily impacted by the increase to medical premiums. The Community Services budget totals $3,304,003, $139,717 higher than the projected expenditures for FY 2015. Community Services for FY 2016 includes a full-time Small Business Coordinator to begin April 1, 2016 and a full- time Plans Examiner to begin January 1, 2016. Public Works budget totals $11,806,888, a $53,875 decrease from 2015 projections and $331,179 less than the 2015 amended budget. The 2016 budget includes an additional $679,175 to contract out median/landscaping maintenance previously done by Parks, and $84,144 in Traffic Maintenance for corridor traffic signal timing and signs, etc. for the Bailey Road annexation area, offset by a decrease in streets maintenance due to use of one-time funds and by non-recurring expenditures in 2015 of $300,000 for ROW assessment. The budget for Parks & Recreation totals $6,744,751, an increase of $286,029 from fiscal year 2015 projections and $26,848 less than the amended budget. Part of the increase is a $103,000 lease to replace aged cardio/strength equipment in the Recreation Center. One Recreation Specialist position was eliminated for a total reduction of $53,053, and a contract for fertilizer is $44,000 less than anticipated. Parks & Recreation includes funds for a full year of operations at Shadow Creek Sportsplex, Centennial Park, and Hickory Slough Sportsplex. Transfers out to other funds total $1,354,768 and include transfers to the Property Insurance Fund towards property insurance premiums of $919,642, $238,081 to the Water/Sewer Fund, $154,160 to the Debt Service Fund for the University of Houston Pearland Campus, and $42,885 for University of Houston Capital Renewal Fund. This is $22,634 higher than 2015 projections. Revenues are under expenditures by $3,481,521. The fund is projected to remain structurally unbalanced in fiscal year 2016, with recurring expenditures exceeding recurring revenues by $110,918; however the fund balance is still over the policy requirement and will be back in balance in fiscal year 2017. The ending fund balance at 9/30/2016 is estimated to be $12,078,112, which is over the two month reserve policy requirement by $909,544. The dollar amount over policy can be used to fund non-recurring expenditures. 109 FY2015 FY2015 FY 2016 FY2014 AMENDED YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET PROJECTION BUDGET 010-0000-350.01-01 CURRENT TAXES $11,744,431 $12,715,458 $12,817,498 $13,809,808 010-0000-350.01-02 DELINQUENT TAXES 79,488 93,000 65,000 65,000 010-0000-350.01-03 PENALTY & INTEREST 103,330 120,000 100,000 100,000 010-0000-350.01-04 IN LIEU OF PROPERTY TAXES 168,170 175,750 213,355 215,489 010-0000-350.01-06 MUD ANNEXATION *TAXES 12,095,419 13,104,208 13,195,853 14,190,297 010-0000-350.02-01 SALES TAXES 17,108,792 17,843,535 18,674,954 20,319,329 010-0000-350.03-01 MIX DRINK TAXES 217,764 220,000 254,743 275,000 *OTHER TAXES 17,326,556 18,063,535 18,929,697 20,594,329 010-0000-350.04-01 GAS COMPANY 285,497 294,062 324,993 364,993 010-0000-350.04-02 ELECTRIC COMPANY 2,880,454 3,083,733 2,994,369 3,128,368 010-0000-350.04-03 TELEPHONE COMPANY 273,598 272,721 275,685 275,300 010-0000-350.04-04 CABLE TELEVISION 1,351,770 1,404,174 1,496,770 1,619,820 010-0000-350.04-05 SANITATION RESIDENTIAL 1,422,727 1,591,748 1,544,061 1,614,973 *FRANCHISE FEES 6,214,046 6,646,438 6,635,878 7,003,454 010-0000-351.01-01 BUILDING PERMITS 1,947,575 1,835,000 1,576,600 1,617,600 010-0000-351.01-02 BP PLAN & ZONE ADJUSTMENT (500) 010-0000-351.01-03 PLATTING FEES 114,604 177,180 126,971 150,480 010-0000-351.01-04 BEER PERMITS 20,795 24,000 16,585 21,000 010-0000-351.01-05 MOVING PERMITS 3,800 4,100 4,500 4,500 010-0000-351.01-06 PEDDLERS & SOLICITORS 3,415 4,500 4,500 4,500 010-0000-351.01-07 HEALTH CERTIFICATE FEES 81,310 133,250 88,565 134,125 010-0000-351.01-08 WRECKER PERMITS 4,425 4,500 9,256 5,200 010-0000-351.01-09 BUILDING PLAN CHECK FEE 1,091,822 859,800 1,040,400 905,856 010-0000-351.01-10 OCCUPANCY PERMITS 7,900 8,000 10,580 11,200 010-0000-351.01-11 DEMOLITION PERMITS 1,400 1,300 1,500 1,500 010-0000-351.01-12 BLDG. SITE WORK PERMIT 105,577 69,516 80,000 80,000 010-0000-351.01-13 ALARM PERMITS 21,670 45,000 24,725 010-0000-351.01-14 HEALTH-REGISTRATION 1 YR.500 450 010-0000-351.01-32 SIGN PERMITS 15,185 13,000 16,218 22,820 010-0000-351.01-33 AMBULANCE PERMIT 17,100 18,650 17,300 18,000 010-0000-351.01-34 TAXI CAB PERMIT 2,644 3,500 4,018 4,020 010-0000-351.01-35 TEMPORARY STRUCTURES 2,780 1,200 2,500 2,500 010-0000-351.01-40 RECORDATION & COURIER FEE 8,207 9,000 7,500 8,000 010-0000-351.01-99 MISCELLANEOUS 225 275 010-0000-351.02-02 BP PLAN & ZONE ADJUSTMENT 28,540 23,000 30,000 40,000 010-0000-351.02-03 GARAGE SALE PERMITS 33,615 38,000 35,000 36,000 010-0000-351.02-04 CULVERT PERMITS 800 250 500 010-0000-351.02-05 ANIMAL LICENSES 34,300 32,000 35,000 37,000 010-0000-351.02-09 FOSTER HOME INSPECTION 2,100 1,950 2,280 2,590 010-0000-351.02-10 MOWING LIEN (206) 010-0000-351.03-01 ELECTRICAL PERMITS 144,661 153,735 217,380 267,425 010-0000-351.03-02 PLUMBING & GAS PERMITS 175,157 195,725 239,083 259,493 010-0000-351.03-03 MECHANICAL PERMITS 186,997 180,690 222,000 203,660 010-0000-351.03-05 REINSPEC. FEE/INSPECTION 9,040 7,260 18,000 18,000 010-0000-351.04-01 FIRE ALARM 5,646 3,500 9,000 9,000 010-0000-351.04-03 FIRE PROTECTION 4,631 2,500 2,200 2,200 010-0000-351.04-04 FIRE SPRINKLER 16,049 10,000 18,000 17,000 010-0000-351.04-05 FIRE SPRINKLER-ALTERATION 215 250 250 250 010-0000-351.04-06 FIREWORKS 150 150 150 010-0000-351.04-07 IRRIGATION 17,429 18,500 23,260 26,540 GENERAL FUND REVENUE6 FY 2016 ADOPTED BUDGET 110 FY2015 FY2015 FY 2016 FY2014 AMENDED YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET PROJECTION BUDGET GENERAL FUND REVENUE6 FY 2016 ADOPTED BUDGET 010-0000-351.04-08 SWIMMING POOL 38,199 41,000 43,080 49,180 010-0000-351.04-09 DIRT GRADING PERMIT 1,750 1,500 1,500 1,500 *LICENSES & PERMITS 4,148,763 3,922,331 3,928,395 3,961,789 010-0000-352.00-00 FINES & FORFEITURES 2,772,319 2,904,000 2,711,000 2,711,000 010-0000-352.01-00 CHILD SAFETY 26,471 24,800 27,500 27,500 010-0000-352.01-01 CHILD SAFETY-HARRIS CO.5,385 5,350 6,000 6,000 010-0000-352.02-00 COMMERCIAL CARRIER FINES 71,114 75,000 81,100 83,000 010-0000-352.05-00 TIME EFFICIENCY (7,502)(5,808)(10,802)(10,800) 010-0000-352.06-00 ANIMAL CRUELTY 4,750 350 350 350 010-0000-352.07-00 OMNIBASE 14,758 17,325 14,100 14,100 010-0000-352.08-00 STATE FEES 81,168 84,222 78,450 78,450 010-0000-352.11-01 FINES 100 340 350 010-0000-352.12-00 BOND FORFEITURES 1,834 9,000 9,500 *FINES & FORFEITURES 2,970,397 3,105,239 2,917,038 2,919,450 010-0000-353.01-01 AMBULANCE SERVICE FEE 2,468,871 2,757,435 2,625,000 2,775,000 010-0000-353.01-02 MUD/EMS/FIRE COLLECTIONS 79,370 78,342 80,828 116,328 010-0000-353.01-03 STRAT PTR AGRMT/FIRE,EMS 272,413 336,000 350,022 456,606 010-0000-353.01-04 FALSE ALARM FEE 87,064 65,000 76,000 80,000 010-0000-353.01-06 ARREST FEES 5,778 5,495 5,800 6,000 010-0000-353.01-07 CLEAR. LETTER FEE 545 475 500 500 010-0000-353.01-08 SUBPOENA 170 150 150 150 010-0000-353.01-09 OFFENSE REPORT COPIES 106 100 100 100 010-0000-353.01-10 ACCIDENT REPORT COPIES 5,806 6,450 5,500 5,500 010-0000-353.01-11 OTHER COPIES 80 010-0000-353.01-12 SRO EQUIPMENT/OPERATIONS 88,500 88,500 88,760 100,925 010-0000-353.01-13 SRO PERSONNEL 702,379 703,594 705,089 823,144 010-0000-353.01-14 NON EMERG AMBULANCE TRANSPORT 010-0000-353.01-16 NON EMERG EMS SERVICE 9,128 7,000 2,000 2,000 010-0000-353.01-17 TCLEOSE FUNDS 11,229 010-0000-353.01-40 TRAINING TUITION 1,900 4,000 2,200 2,200 010-0000-353.01-41 TRAINING RECYCLING 1,572 3,000 2,000 2,500 010-0000-353.01-99 ANIMAL SHELTER FEES 43,616 47,000 40,000 44,000 010-0000-353.03-01 EVENTS & PROGRAMS 508,559 495,591 493,346 488,392 010-0000-353.03-02 FACILITY RENTALS 122,072 105,250 105,000 89,850 010-0000-353.03-03 SWIMMING POOL FEES 19,480 24,000 18,000 18,000 010-0000-353.03-06 NATATORIUM 130,936 39,357 140,000 173,800 010-0000-353.03-07 RECREATION CENTER RENTALS 44,822 134,270 010-0000-353.03-08 REC. CENTER MEMBERSHIPS 1,255,463 1,222,500 1,290,000 1,417,000 010-0000-353.03-09 FACILITY RENTAL - U OF H 2,458 900 500 700 010-0000-353.03-10 SPECIAL EVENT PERMIT FEES 150 150 150 150 010-0000-353.03-30 MISCELLANEOUS 1,900 4,500 1,800 1,800 010-0000-353.05-01 ENGINEERING INSPECT FEE 142,509 120,000 160,000 150,000 010-0000-353.05-05 TIRZ ADMINISTRATION FEES 6,636,909 7,804,668 7,447,396 9,244,652 010-0000-353.05-06 PERMITS INSPECTION FEE 23,543 13,500 25,000 25,000 010-0000-353.05-25 TRAFFIC IMPACT ANALYSIS 7,500 10,500 9,750 10,500 12,663,599 14,077,727 13,686,120 16,034,797 010-0000-356.00-00 INTEREST INCOME 98,710 84,000 103,000 108,000 010-0000-356.06-00 UNREALIZED CAPITAL GAIN(LOSS)(10,478) *INTEREST 88,232 84,000 103,000 108,000 010-0000-357.02-02 TX DEPT OF TRANSPORTATION 25,224 *INTERGOVERNMENTAL 25,224 010-0000-358.04-00 BUILDING RENT 18,040 18,095 18,348 18,650 010-0000-358.05-00 OTHER VICTIMS PROGRAM 7,720 7,000 7,000 7,000 010-0000-358.07-00 PHONE & FAX REIMBURSEMENT 1,005 7,456 7,728 010-0000-358.08-00 STREET LIGHT CHARGES 119,553 50,000 75,000 75,000 *CHARGES FOR SERVICES 111 FY2015 FY2015 FY 2016 FY2014 AMENDED YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET PROJECTION BUDGET GENERAL FUND REVENUE6 FY 2016 ADOPTED BUDGET 010-0000-358.10-00 RECYCLE REVENUE 80,034 52,953 60,000 15,000 010-0000-358.12-00 N.S.F. FEES 7,400 5,000 6,720 7,000 010-0000-358.13-00 PLAT COPIES 010-0000-358.14-00 COPIES - OPEN RECORDS REQUESTS 891 1,200 5,155 5,300 010-0000-358.15-00 SALE OF PROPERTY 1,476,642 28,000 113,105 154,500 010-0000-358.16-00 CASH SHORT/OVER 947 010-0000-358.17-00 WAIVER OF ENCROACHMENT 750 1,000 1,000 1,000 010-0000-358.26-00 JAIL PHONE 010-0000-358.29-00 AMBULANCE PERMIT APP. FEE 3,500 4,450 5,700 5,700 010-0000-358.37-00 SUSPENSE REVENUE (7) 010-0000-358.38-01 REIMB FROM FUND 15 010-0000-358.40-00 SIGN REVENUE 24,500 22,500 35,975 33,000 010-0000-358.45-00 INSURANCE REIMBURSEMENTS 39,639 15,585 010-0000-358.99-00 MISCELLANEOUS 253,226 337,111 388,836 308,036 010-0000-358.99-01 MUD ANNEXATION *MISCELLANEOUS 2,033,840 527,309 739,880 637,914 010-0000-359.01-00 FROM FUND 15 113,792 119,482 119,482 125,456 010-0000-359.03-00 FROM FUND 18 21,000 010-0000-359.09-00 FROM FUND 30 935,000 1,190,100 1,599,592 1,540,280 010-0000-359.11-00 FROM FUND 42 272,032 146,785 146,785 144,039 010-0000-359.18-00 FROM FUND 50 11,274 50,372 50,372 31,231 010-0000-359.55-00 FROM FUND 55 150,000 010-0000-359.23-00 FROM FUND 67 132,293 218,786 218,786 196,863 010-0000-359.24-00 FROM FUND 68 278,498 320,558 010-0000-359.26-00 FROM FUND 70 21,844 010-0000-359.29-00 FROM FUND 101 242,139 191,107 166,118 166,581 010-0000-359.31-00 FROM FUND 301 93,947 93,947 191,140 010-0000-359.33-00 FROM FUND 302 010-0000-359.33-00 FROM FUND 304 19,763 22,431 22,431 010-0000-359.34-00 TRANSFER FROM FUND 202 1,044,922 010-0000-359.36-00 TRANSFER FROM FUND 203 506,398 834,297 834,297 616,055 010-0000-359.39-00 TRANSFER FROM FUND 116 010-0000-359.69-00 TRANSFER FROM FUND 031 146,794 340,000 010-0000-359.89-00 TRANSFER FROM CDBG FUND 45,071 107,787 107,787 109,188 010-0000-359.96-00 TRANSFER FROM FUND 200 79,889 010-0000-359.97-00 TRANSFER FROM FUND 201 *GRANT, ISSUANCE, TRANSFER 3,870,709 2,975,094 3,849,597 3,441,391 010-0000-360-03-00 CAPITAL LEASE PROCEEDS 1,852,939 1,761,000 1,356,049 900,000 *OTHER FINANCING SOURCES 1,852,939 1,761,000 1,356,049 900,000 TOTAL 63,289,724$ 64,266,881$ 65,341,507$ 69,791,421$ 112 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted BY CATEGORY Actual Budget Projection Budget Salaries & Wages $40,411,004 $45,229,987 $43,991,633 $48,090,405 Materials & Supplies $1,812,751 $2,483,769 $2,409,626 $2,327,788 Building Maintenance $1,349,870 $2,552,878 $2,675,037 $2,002,854 Equipment Maintenance $2,363,130 $2,843,898 $2,528,852 $2,849,132 Miscellaneous Services $8,385,693 $9,558,203 $10,829,310 $11,517,078 Sundry Charges $654,484 $1,000,070 $1,074,988 $1,203,211 Inventory $463,820 $400,774 $381,310 $371,903 Capital Outlay $4,233,164 $4,806,303 $4,013,484 $3,555,803 SUB-TOTAL 59,673,916 68,875,882 67,904,240 71,918,174 Transfers 2,784,425 1,546,744 1,332,134 1,354,768 TOTAL $62,458,341 $70,422,626 $69,236,374 $73,272,942 GENERAL FUND EXPENDITURE SUMMARY (All Departments) FY 2016 ADOPTED BUDGET Salaries & Wages, 66% Materials & Supplies, 3% Building Maintenance, 3% Equipment Maintenance, 4% Miscellaneous Services, 16% Sundry Charges, 1% Capital Outlay, 5% Transfers, 2% 113 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted FUNCTION/DEPARTMENT Actual Budget Projection Budget GENERAL GOVERNMENT City Council 92,245 106,575 99,153 110,418 City Manager 995,807 792,608 810,784 792,964 Human Resources 822,890 852,702 952,021 890,482 City Secretary 314,987 346,898 391,657 362,797 Legal 674,971 757,539 802,246 741,751 Information Systems 1,257,214 3,284,361 3,524,945 2,936,712 Geographic Information Systems 226,960 231,786 224,822 233,655 Finance 1,864,198 1,965,324 1,966,822 2,188,539 Other Requirements1 1,127,114 1,235,478 1,414,212 2,758,636 Library2 310,036 807,647 719,448 414,619 GENERAL GOVERNMENT TOTAL 7,686,422 10,380,918 10,906,110 11,430,573 PUBLIC SAFETY Police 21,129,881 23,712,408 23,301,821 24,995,985 Police Administration 1,260,277 1,342,808 1,394,079 1,516,888 Patrol 10,259,456 12,333,038 12,052,534 13,050,176 Investigations 2,220,072 2,352,731 2,404,593 2,509,099 Community Service 968,894 993,131 870,301 715,416 Support Services 1,785,866 1,905,426 1,927,159 2,038,923 Jail 1,032,780 1,149,903 1,106,703 1,142,777 Commercial Vehicle Enforcement 211,870 233,878 239,693 240,825 School Resource Officers (SRO)1,154,387 1,200,086 1,145,117 1,206,006 Traffic/Motorcycles 990,851 930,378 889,779 887,443 Special Investigations 400,581 391,148 354,805 394,086 Training 104,470 106,558 105,567 300,829 Animal Services 740,377 773,323 811,491 993,517 Fire 12,010,231 12,738,363 12,212,538 13,635,974 Fire Administration 1,014,672 947,605 1,048,927 Fire Operations 10,901,049 10,444,299 10,054,064 11,054,327 Fire Marshal 673,576 719,035 681,031 921,194 Emergency Management 42,717 39,362 37,817 38,561 Health/Code Enforcement 392,889 520,995 492,021 572,965 PUBLIC SAFETY TOTAL 33,140,112 36,450,771 35,514,359 38,631,959 COMMUNITY SERVICES Community Development Community Development Administration 394,634 423,873 434,616 364,389 Planning 328,653 452,545 409,094 417,793 Permits & Inspections 961,413 1,115,172 1,157,603 1,313,438 Communications 342,034 457,421 475,688 470,466 Municipal Court 634,728 685,516 687,285 737,917 COMMUNITY SERVICES TOTAL 2,661,462 3,134,527 3,164,286 3,304,003 PUBLIC WORKS Public Works and Engineering Administration 262,659 309,455 261,000 261,040 Public Works Operations Administration 410,427 227,719 206,016 158,901 Facilities Maintenance 865,282 1,393,817 1,419,363 1,035,605 Custodial Services 337,574 317,093 311,681 355,016 Fleet 420,020 546,409 426,738 259,140 Streets & Drainage 4,684,214 5,193,356 5,284,424 4,964,212 Right-of-Way Maintenance 735,031 827,041 1,453,099 Service Center 190,534 175,133 151,007 95,150 Traffic Operations and Maintenance 799,779 1,255,399 978,716 1,150,196 Engineering & Capital Projects: Capital Projects 824,585 840,118 883,253 911,715 Engineering 1,059,772 1,144,537 1,111,524 1,162,814 PUBLIC WORKS TOTAL 9,854,846 12,138,067 11,860,763 11,806,888 GENERAL FUND EXPENDITURES By FUNCTION/DEPARTMENT FY 2016 ADOPTED BUDGET 114 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted FUNCTION/DEPARTMENT Actual Budget Projection Budget GENERAL FUND EXPENDITURES By FUNCTION/DEPARTMENT FY 2016 ADOPTED BUDGET PARKS & RECREATION Administration 885,093 695,026 700,181 618,155 Resource Development 191,300 131,834 130,661 122,137 Recreation Center/Natatorium 1,791,973 2,275,660 2,163,765 2,249,197 Westside Events Center 171,703 308 Parks Maintenance West 931,107 Parks Maintenance 1,122,670 2,377,024 2,207,760 2,616,758 Athletics 266,017 366,480 339,893 329,357 Special Events 230,942 339,356 319,916 319,682 Senior Program 241,118 215,161 233,685 283,592 Youth Development 181,379 Aquatics 103,166 141,223 141,226 148,398 Recycling 214,606 229,527 221,635 57,475 PARKS & RECREATION TOTAL 6,331,074 6,771,599 6,458,722 6,744,751 TOTAL OPERATING EXPENDITURES 59,673,916 68,875,882 67,904,240 71,918,174 TRANSFERS 2,784,425 1,546,744 1,332,134 1,354,768 GENERAL FUND TOTAL 62,458,341 70,422,626 69,236,374 73,272,942 1Other Requirements exclude transfers, which are listed after Total Operating Expenditures 2 Library employees' salaries are funded by the County; City pays all operating expenses. General Government, 15.9% Public Safety, 53.7% Community Services, 4.6% Parks & Rec, 9.4% Public Works, 16.4% General Fund Expenditures by Function/Department FY 2016 Adopted Operating Budget* *Excludes Transfers 115 GENERAL GOVERNMENT *Positions are budgeted in the Water & Sewer Fund. 116 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT / DIVISION Actual Budget Projection Budget City Council 92,245 106,575 99,153 110,418 City Manager 995,807 792,608 810,784 792,964 Human Resources 822,890 852,702 952,021 890,482 City Secretary 314,987 346,898 391,657 362,797 Legal 674,971 757,539 802,246 741,751 Information Systems 1,257,214 3,284,361 3,524,945 2,936,712 Geographical Information Systems 226,960 231,786 224,822 233,655 Finance 1,864,198 1,965,324 1,966,822 2,188,539 Other Requirements*1,127,114 1,235,478 1,414,212 2,758,636 Library 310,036 807,647 719,448 414,619 GENERAL GOVERNMENT TOTAL 7,686,422 10,380,918 10,906,110 11,430,573 *Expenditures listed here for Other Requirements do not include transfers. FY 2016 Other Requirements include annual cost-of-living for all General Fund departments totaling $737,079. FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Projection Budget Salaries & Wages 4,335,520 4,515,613 4,683,823 5,539,266 Materials & Supplies 59,484 106,172 128,327 72,427 Buildings & Grounds 479 Equipment Maintenance 573,863 822,393 851,242 1,174,064 Miscellaneous Services 1,884,553 1,935,763 3,362,717 3,118,760 Sundry 491,528 698,381 755,396 1,017,889 Inventory 230,816 186,271 173,812 268,075 Capital Outlay 110,179 2,116,325 950,793 240,092 GENERAL GOVERNMENT TOTAL 7,686,422 10,380,918 10,906,110 11,430,573 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget*Projection Budget City Council*6 6 6 7 City Manager 6 6 6 6 Human Resources 7 7 7 8 City Secretary 4 4 4 4 Legal 6 6 6 6 Information Systems 6 7 7 7 Geographical Information Systems**2 2 2 2 Finance 18 18 18 18 Other Requirements Library*** GENERAL GOVERNMENT TOTAL 49 50 50 51 *Mayor and Council Members are elected positions and not included in employee count. ***Library staffing funded by County. GENERAL GOVERNMENT EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET **GIS moved to Information Systems from Projects mid-year FY15. General Fund personnel only. Three (3) additional GIS personnel on water/sewer fund. 117 GENERAL GOVERNMENT EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET City Council, 0.2% City Secretary, 0.5% Library, 0.6% City Manager, 1.1% Legal, 1.0% HR, 1.2% Other Requirements, 3.8% Finance, 3.0% Information Systems/GIS, 4.4% 15.8% General Government Expenditures as % of General Operating Expenditures FY 2016 City Secretary, 1% City Council, 1% City Manager, 1% Legal, 1% Human Resources, 1% Information Systems, 1% Finance, 3% 9% General Government Personnel as % of General Fund Personnel FY 2016 118 91% 92% 92% 85% 80% 85% 90% 95% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Ratings of Overall Quality of Life in Pearland 79% 78% 83% 54% 50% 60% 70% 80% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Quality of Services Received for the Tax Dollar 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 Pearland’s 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 2016 Include: ♦ The addition of one (1) new Council member from a charter amendment that passed in May of 2015. The actual election of the new member is scheduled for May of 2016. GOALS ♦ Maintain strong relationships with key funding and interlocal entities in support of the City’s current and future financial needs involving transportation, facilities, and major capital improvement priorities. ♦ Prioritize Capital Improvement Projects. ♦ Review and adopt major City plans according to schedule. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Adopted Strategic Priorities for the City. ♦ Worked with State and Local Officials for award of SH 288 segment from Harris County City Limits to 59 Spur. ♦ Partnered with Brazoria County Commissioners Court to enact legislation that allowed for the expansion of the Gulf Coast Water Authority Board. ♦ Awarded various construction projects including but not limited to the Reflection Bay Waste Water Treatment Plant Rehabilitation Project and Expansion; Shadow Creek Ranch Sports Complex; Fire Stations #2 and #3. ♦ Reduced Debt Service Tax Rate for Fiscal Year 2016. ♦ Reviewed and adopted the City’s Comprehensive Plan in September of 2015. FISCAL YEAR 2016 OBJECTIVES ♦ Provide direction for the issuance and awards of all contracts for all capital projects. ♦ Complete objectives within Council’s Strategic Priorities, providing leadership in accordance with Governance Model. ♦ Partner with PEDC to update 20/20 Strategic Plan. ♦ Review and Adopt the Parks, Recreation and Open Space Master Plan. PERFORMANCE MEASURES 119 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. Professionals in the Office of the City Manager assist the City Manager in those duties. The Deputy City Manager has overall portfolio responsibilities to help guide the City and leads the General Government departments that include Finance and Utility Billing, Human Resources, Parks and Recreation, Municipal Court, Communications, City Secretary and the Pearland Convention and Visitors Bureau. The Assistant City Manager has leadership responsibilities over Capital Projects and Engineering, Public Works, Traffic Management, Facility Maintenance and oversees the Five Year Capital Improvement Plan. There is a Management Assistant and an Executive Assistant in the office to provide technical support to key projects and staff. The Executive Assistant oversees two part-time Receptionist positions for City Hall, and also provides administrative support to the Mayor and City Council members on scheduling, correspondences, and other matters. STRATEGIC COUNCIL PRIORITY: The Office of the City Manager oversees the overall operation of the City in meeting all six (6) Strategic Council Priorities - Fiscally Responsible Government, Sustainable Infrastructure, Quality Parks, Recreation and Events, Safe Community, Engaged Community and Healthy Economy. Key Budget Items for FY 2016 Include: ♦ Funding for Early Budget Input meeting with City Council and Department Directors scheduled for February 2016. GOALS ♦ Keep City Council informed on pressing 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 and dynamic 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, Houston Galveston Area Council, etc. ♦ Continue to advocate for added traffic/transportation capacity City-wide. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Initiated the FY 2016 Budget Development Process, hosting a City Council Early Budget Input Meeting in March of 2015. ♦ Facilitated Council’s adoption of new Strategic Priorities – Fiscally Responsible Government, Sustainable Infrastructure, Quality Parks, Recreation and Events, Safe Community, Engaged Community and Healthy Economy. ♦ Successfully submitted the FY 2016 annual operating budget – adopted by Council on September 21, 2015. FISCAL YEAR 2016 OBJECTIVES ♦ Oversee the City’s transition into a new software and practices for Enterprise Resource Planning (ERP) System. ♦ Oversee the City’s transition into multi-year financial planning and management practices. ♦ Identify funding options for City’s next bond election. ♦ Support implementation and reporting of adopted Comprehensive Plan and 20/20 Plan for economic development. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Authorized FTE1 employees per 1,000 population 6.28 6.44 6.26 6.39 GF Operating Budget $ per capita (unadjusted dollars) $587.26 $619.26 $626.14 $642.75 1The number of authorized FTE employees is based on budgeted full-time equivalent positions, including approved changes. 120 HUMAN RESOURCES – 1040 OVERVIEW The Human Resources Department develops, 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. STRATEGIC COUNCIL PRIORITY: A highly-qualified and well-trained workforce, in all areas, results in efficient, effective services, Fiscally Responsible Government, and support for departments’ ability to meet their goals towards other Strategic Council Priorities. Key Budget Items for FY 2016 Include: ♦ Hire one (1) full-time Human Resource Generalist. GOALS ♦ Recruit and retain top talent. ♦ Manage risks within the organization. ♦ Promote work-life balance and wellness. ♦ Lead in the area of organizational development. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Delivered Anti-Harassment training for all employees. ♦ Provided support for the planning and implementation activities for the City’s federally-required Title VI Plan, policies, and procedures. ♦ Recruited and hired staffing for the new Fire Station #3, and began processes for Fire Station #2. FISCAL YEAR 2016 OBJECTIVES ♦ Reinforce and train on concepts of “Service the Pearland Way.” ♦ Continue to provide organized and planned City-wide training and wellness programs. ♦ Establish baseline data and develop a safety/inspection program. ♦ Complete a full review/update of job descriptions. ♦ Continue to recruit and hire staffing for the new Fire Station #2, 8 new Police Officers and other new positions approved by the City Council for FY 2016. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Number of vacated or new positions posted 141 155 175 100 Number of employment applications received 7,642 8,507 7,500 8,000 Annualized Citywide turnover rate (FT employees) 11.6% 15.6% 10% 10% Number of training hours to new and existing employees 81 100 50 100 Percent of positions filled within 30 days of posting 74% 65% 85% 85% 121 HUMAN RESOURCES - 1040 52.1% 26.7% 14.0% 5.7% 1.6% 0.0%10.0%20.0%30.0%40.0%50.0%60.0% Absolutely Somewhat Neutral Not Really Not at All 2015 Employee Survey Results Is there a "clear linkage between your job and the City's Core Values?" 0.0% 3.4% 10.1% 27.3% 59.3% 0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0% Not at All Not Really Neutral Somewhat Absolutely 2015 Employee Survey Results "Do you enjoy working for the City of Pearland?" 122 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. STRATEGIC COUNCIL PRIORITY: The City Secretary’s office ensures citizens have access to agenda information and have the opportunity to participate in the local decision-making process, vote in elections, speak at public hearings, and request and receive official records, in ways that promote an Engaged Community. Key Budget Items for FY 2016 Include: ♦ Full implementation of automated agenda system - $17,550. GOALS ♦ Record and maintain all City Council actions accurately and in a timely manner. ♦ Administer and produce timely Public Information as requested under the Texas Public Information Act. ♦ Maintain and preserve City documents. ♦ 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 2015 ACCOMPLISHMENTS ♦ Successfully held one General Election and one Runoff Election successfully using voting centers. ♦ Created a Records Coordinator Committee to coordinate the various departments’ records management. ♦ Acquired an automated agenda system, Meeting Management Solution, for implementation in early fall. FISCAL YEAR 2016 OBJECTIVES ♦ Fully implement the Meeting Management Solution automated agenda system. ♦ Implement Alcohol Permits as part of the CRW, Inc., software program. ♦ Create a workflow process for Peddler Permits. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target PUBLIC RECORDS Open Records Requests processed (Freedom of Information Act) 1,092 1,004 1,284 1,300 ELECTIONS Number of registered voters (average) 55,741 59,085 60,142 65,900 Number of votes cast (average) 3,214 3,535 3,305 3,954 Average % of voter turnout 5.8% 6.0% 5.50% 6.0% 123 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. STRATEGIC COUNCIL PRIORITY: Protecting the City’s assets through ordinance and contract review, prosecuting traffic and code violations, and its legal position where lawsuits and claims are concerned promote a Fiscally Responsible Government and a Safe Community. Key Budget Items for FY 2016 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 2015 ACCOMPLISHMENTS ♦ Prepared numerous residential, commercial and institutional development agreements for the City. ♦ Coordinated and assisted outside counsel in the resolution of multiple litigation cases. ♦ Efficiently carried out the prosecutorial duties of a rapidly growing municipal court. ♦ Coordinated the acquisition of multiple properties through the eminent domain process, thereby allowing for the timely construction of various City projects. ♦ Provided legal representation at all meetings of the City Council, PEDC, P&Z and the ZBA. ♦ Provided effective legal counsel to all departments in the City on a daily basis. FISCAL YEAR 2016 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 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Number of FOIA requests reviewed 289 346 350 350 Number of contracts prepared or reviewed 205 291 300 300 124 INFORMATION SYSTEMS – 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 functions which develop and manage the Citywide Geographic Information System. STRATEGIC COUNCIL PRIORITY: Information Systems provides wired and wireless routes for transmitting data and telecommunications, thus providing City operations with a Sustainable Infrastructure that promotes the ability for the City to operate from a “paperless” standpoint, creating a more Fiscally Responsible Government. Key Budget Items for FY 2016 include: ♦ Implementation and lease-purchase of the new Enterprise Resource Planning (ERP) - $1,472,090. ♦ Purchase of Virtual Desktop in lieu of replacement Desktops - $86,800. ♦ Replacement of 44 Public Safety Toughbooks/MDT’s - $197,137. ♦ Replacement of 45 Laptop computers - $99,000. ♦ Replacement of Police Department Coban server system - $36,899. ♦ Replacement of Public Safety 55 docking stations in vehicles - $49,425. ♦ Upgrade Laserfiche Document Management city wide system with 45 licenses - $84,000. 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. ♦ Use GIS 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 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 2015 ACCOMPLISHMENTS ♦ Assisted with setup/installation of system devices at new Fire/EMS Station #3. ♦ Interviewed/hired new Chief Information Officer. ♦ Replaced City wide departments desktops, laptops and Toughbook’s. ♦ Migrated 30+ Servers to a Virtualize environment, saving hardware replacement. ♦ Additional GIS home page functionality. Added “Quick Map” map services and external mapping links. ♦ Public Works implementation of Fats Oil Grease (FOG) management software. ♦ Expanded task/responsibilities with new personnel for better efficiency and data quality. ♦ Upgraded GPS survey grade equipment and base station – centimeter accuracy. ♦ Imported new sub-division sections into the GIS map to provide new addresses for the Engineering Department. 125 INFORMATION SYSTEMS – 1085 - 1086 FISCAL YEAR 2016 OBJECTIVES ♦ Support technological configurations for the FY 2016 Enterprise Resource Planning (ERP) “go live” conversion. ♦ Assisting with Networking/Audio Visual solutions of City Hall/Community Center renovation ♦ Support GIS needs for CRW “Community Development” software and “New World Systems” integration. ♦ Upgrade ArcSDE SQL Server to ArcGIS 10.4 software version. ♦ Upgrade ArcGIS Desktop end users to ArcGIS 10.4 software version. ♦ Upgrade GIS Home page functionality - online map services for mobile devices. ♦ Update the water, storm and centerline, sanitary and lane mile inventory in the City’s GPS system as of September 25, 2016. ♦ Initiate a trackable management program for field and office. ♦ Update the inventory of water meters in the City recorded in the GPS system as of September 25, 2016. ♦ Update the inventory of Street Lights in the City as of September 25, 2016. ♦ Train field personnel to perform basic data entry into ArcMap. ♦ Provide more advanced training for GIS Specialist on interpreting Engineering Plans. ♦ GIS Specialist to perform more on-site training for Field Personnel. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Number of PC's supported 455 575 649 691 Number of new software programs installed Average Number of GIS layers maintained Number of Maps Requested/Prepared 0 101 183 1 103 217 2 104 237 1 105 235 126 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, purchasing and payroll. Finance also serves as the administrative point of contact for all federal and State grant-making agencies that support departmental and City-wide capital and non-capital endeavors supported with other sources of funds. Audits, compliance with internal and external administrative and fiscal policies, financial transparency, accounts payable/receivable, as well as the improvement and sustainability of our City’s bond rating are other important aspects of the department’s responsibilities. STRATEGIC COUNCIL PRIORITY: The Finance Department incorporates general principles of accountability and transparency into a system of decision-making, with a sense of “public trust,” acting as a Fiscally Responsible Government. Key Budget Items for FY 2016 Include: ♦ No significant items. GOALS ♦ Safeguard the assets of the City of Pearland. ♦ Ensure accurate and prompt payment to all City vendors and employees. ♦ Accurately account for revenues and expenditures on a timely basis. ♦ Provide timely and accurate issuance of financial reports to the City Council, City Manager and all other parties as necessary or required. ♦ Plan, coordinate and facilitate the preparation of the annual budget, Comprehensive Annual Financial Report and Five-Year Capital Improvement Program. ♦ Facilitate and monitor purchases in compliance with State statutes and City policy and ensure that the City is getting the best value for the purchase of goods and services. ♦ Ensure the financial integrity of the City by developing and implementing policies and procedures. ♦ Maintain the debt program of the City, including the issuance of new debt, payment of annual debt service, and ensure compliance with bond and arbitrage covenants. ♦ Provide investment management for all City funds and bond proceeds in compliance with the City’s Investment Policy. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Awarded Enterprise Resource Planning (business management software) to New World Systems, CRW and Executime for replacements of the City’s 20-year old system and began implementation for the conversion of the financial modules, with payroll and utility billing following at a later date. ♦ Refunded $51 million in existing outstanding debt saving the City $7.2 million or $425,000 annually over seventeen years, with a net present value savings of 11.17%. ♦ Compiled and presented to City Council, two options for the City’s next bond referendum; one option based on a date certain time and another option based on growing into debt, based on taxable value, and tax rate implications. Consensus by Council was to base a future bond referendum based on City’s ability to afford, based on the tax base. ♦ Defeased, in its entirety, the Economic Development Corporation Series 2010 debt, approximately $6.5 million that would have matured in 2030, saving approximately $445,000 in annual debt service payments. ♦ Received both the Distinguished Budget Award and Certificate of Achievement for Excellence in Financial Reporting. ♦ Continued to achieve 100% compliance with local policy and the Public Funds Investment Act for our investments. 127 FINANCE DEPARTMENT – 1260 FISCAL YEAR 2016 OBJECTIVES ♦ Complete implementation of the financial modules with “go-live” of the financials January 1, 2016 and payroll July 1, 2016. Potentially implement a new budget process and timeline based off the functionalities and capabilities of a new budget system. ♦ Implement a new time keeping system, Executime, with advanced scheduling for Public Safety departments and time keeping systems for other departments with integration into the City’s New World financial systems. ♦ Compile and present to City Council debt maturity options for the City’s water/sewer fund; lowering interest costs, though possibly impacting rates. ♦ Bid and award the City’s windstorm insurance for approximately $200 million in valued property, the first time the City has had to do so, as previously included as part of TML Intergovernmental Risk Pool. ♦ Bid, award and replace the City’s 7 year old water/sewer rate model which the City uses to forecast rate changes, as the model has reached its useful life. ♦ Apply and receive the Government Finance Officers Association’s annual Distinguished Budget Award and its Certificate of Achievement for Excellence in Financial Reporting. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Investments in compliance with policy and PFIA 100% 100% 100% 100% Number of audit comments 0 0 0 0 Bond Rating (General Obligations/Certificates of Obligation) Moody’s Aa2 Aa2 Aa2 Aa2 S&P AA- AA AA AA Fitch AA AA AA AA Bond Rating (General Obligations/Certificates of Obligation) Moody’s Aa3 Aa3 Aa3 Aa3 S&P AA- AA- AA- AA- Fitch AA- AA- AA- AA- 128 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 for self-funded Medical Fund. Key Budget Items for FY 2016 Include: ♦ Compensation Plan adjustments - 2% merit increase for all personnel ($737,079), pay scale adjustment ($72,498) and a 3% step pay increase ($ 84,739) for Certified Police personnel. ♦ Salary savings of $300,000 for anticipated vacant positions. ♦ Radio maintenance agreement with City of Houston - $233,645. ♦ KPB franchise fee - $226,096 ♦ Sales tax incentives (Kelsey Seybold and Costco) - $317,500 ♦ Capital leases - Seimens energy lease ($97,824), lease on fire truck ($77,925) and ERP lease ($206,000). 129 LIBRARY – 1380 OVERVIEW Library services are provided through a cooperative effort between the City of Pearland and Brazoria County that support two facilities – the Tom Reid Library on the east side of the City, and the Business Center Drive Library on the west. The City provides the buildings and takes responsibility for their maintenance and other operating expenses. Brazoria County supplies the libraries’ materials, computers, network access, and employees. As part of the voter-approved bond referendum in 2007, funding was approved to expand the current building in 2015. As a result of two years of successful performance and continued growth in Pearland, the Business Center Drive Library has been increased by 65 percent for a total of 10,000 square feet of available library space. 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. The libraries offer book clubs and programs for children, teens and adults, provide a space for voting, and conducts classes on accessing the Brazoria County Library System’s eBooks on standard eReaders. STRATEGIC COUNCIL PRIORITY: Brazoria County and the City of Pearland collaboratively provide Library Services for the citizens of the community. The County is responsible for Library Service, and the City is responsible for providing the facilities. Pearland’s efforts provide the citizens with access to multiple activities and programs, encouraging an Engaged Community. Key Budget Items for FY 2016 Include: ♦ Renovation of the Tom Reid Library (carryover from FY 2015). GOAL ♦ 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, the libraries provide small spaces for meetings, public Internet access, educational programs for children, and some assistive services for all ages. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Completed the expansion of the Business Center Drive Library with a grand opening on February 3, 2015. ♦ Continued the planning process for the expansion and renovation of the Tom Reid Library. ♦ Offered computer classes to seniors at the Melvin Knapp Activity Center. FISCAL YEAR 2016 OBJECTIVES ♦ Begin construction on the Tom Reid Library project. ♦ Begin preparing a proposal for the construction of a permanent library facility on the west side. ♦ Finish preparing and begin implementing the Brazoria County Library System long range plan for 2016-2020. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Tom Reid Library Number of volumes 113,655 103,514 104,000 130,000 Number of items checked out - circulation 433,104 340,293 370,188 400,000 Business Center Drive Library Number of volumes N/A* 38,173 40,923 42,000 Number of items checked out - circulation 156,806 322,600 362,652 370,000 *The City operated the west-side Pearland Library as a substation located in the West-Side Events Center, as a drop-off location and no volumes were maintained out of that location at the time. 130 AssistantPolice ChiefAdministrativeAssistantPolice Chief*PropertyRoomTechnicianLieutenantAdministrative& CommunityServicesAdministrativeAssistantCaptainCriminalInvestigationsAdministrativeAssistantSergeantPropertyCrimesSergeant(10)SergeantTrafficEnforcementLieutenantPatrol SpecialOperationsCaptainPatrolOperationsSergeantProactive UnitSergeantPersonsCrimesPolice Officer(4)SergeantNarcoticsInvestigationsPolice OfficerPolice Officer(2)Crime AnalystCrime VictimLiaison (2)AdministrativeAssistantQuartermasterHumane OfficerSeniorHumane Officer(5)Animal ShelterCoordinatorAnimal ShelterAttendantFull-time (2)Part-time (1)Animal ServicesManagerCaptainSupportServicesPolice OfficerProfessionalDevelopment(3)Police OfficerCommunityServicesPolice OfficerProfessionalStandardsSergeantProfessionalServicesSergeantSchoolResourceOfficers (SRO)Police OfficerSRO (10)Jailer (10)SupportServicesSupervisorJail SupervisorJail TeamLeader (4)TCOCoordinator**TCO Lead(4)TCOFull-time (10)Part-time (4)ReceptionistPart-time (3)Records Clerk(7)Records ClerkLeadPolice OfficersProactive Patrol(4)Police OfficersK-9(2)Warrant OfficerCourt/Security(2)Police OfficerLobby DetailPolice OfficerTraffic/CrashInvestigationsMotorcycles (5)Police OfficerTruckEnforcement(2)LieutenantPatrolOperations (4)Police Officer(85)PUBLIC SAFETY—POLICE DEPARTMENT *Reports to City Manager 131 PUBLIC SAFETY—FIRE DEPARTMENT *Reports to City Manager 132 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT / DIVISION Actual Budget Projection Budget Police - Administration 1,260,277 1,342,808 1,394,079 1,516,888 Police - Patrol Operations 10,259,456 12,333,038 12,052,534 13,050,176 Police - Investigations 2,220,072 2,352,731 2,404,593 2,509,099 Police - Community Services 968,894 993,131 870,301 715,416 Police - Support Services 1,785,866 1,905,426 1,927,159 2,038,923 Police - Jail 1,032,780 1,149,903 1,106,703 1,142,777 Police - Commercial Vehicle Enforcement 211,870 233,878 239,693 240,825 Police - School Resource Officer 1,154,387 1,200,086 1,145,117 1,206,006 Police - Traffic Enforcement/Motorcycles 990,851 930,378 889,779 887,443 Police - Special Investigations 400,581 391,148 354,805 394,086 Police - Training 104,470 106,558 105,567 300,829 Animal Services 740,377 773,323 811,491 993,517 POLICE TOTAL 21,129,881 23,712,408 23,301,821 24,995,985 Fire Administration 1,014,672 947,605 1,048,927 Fire Operations 10,901,049 10,444,299 10,054,064 11,054,327 Fire Marshal 673,576 719,035 681,031 921,194 Emergency Management 42,717 39,362 37,817 38,561 Health/Code Enforcement 392,889 520,995 492,021 572,965 FIRE TOTAL 12,010,231 12,738,363 12,212,538 13,635,974 PUBLIC SAFETY TOTAL 33,140,112 36,450,771 35,514,359 38,631,959 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Projection Budget Salaries & Wages 26,151,977 29,863,319 28,790,396 31,299,063 Materials & Supplies 936,779 1,158,369 1,170,533 1,193,203 Building Maintenance 13,157 70,800 55,468 11,340 Equipment Maintenance 1,270,736 1,517,872 1,228,187 1,279,074 Miscellaneous Services 1,501,506 1,796,065 1,979,953 1,995,182 Sundry Charges 54,565 136,032 153,935 117,942 Inventory 196,683 162,028 162,917 101,628 Capital Outlay 3,014,709 1,746,286 1,972,970 2,634,527 PUBLIC SAFETY TOTAL 33,140,112 36,450,771 35,514,359 38,631,959 EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET PUBLIC SAFETY 133 EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET PUBLIC SAFETY FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget*Projection Budget Police - Administration 6 6 6 6 Police - Patrol Operations 96 104 104 111 Police - Investigations 18 22 22 22 Police - Community Services 7 6 6 6 Police - Support Services 32 33 33 33 Police - Jail 14 15 15 15 Police - Commercial Vehicle Enforcement 2 2 2 2 Police - School Resource Officer 11 11 11 12 Police - Traffic Enforcement/Motorcycles 8 8 8 8 Police - Special Investigations 5 3 3 3 Police - Training Animal Services 11 11 11 11 POLICE TOTAL 210 221 221 229 Fire Administration 10 10 12 Fire Operations*142 137 137 152 Fire Marshal 9 9 9 9 Emergency Management Health/Code Enforcement 6 7 7 8 FIRE TOTAL 157 163 163 181 PUBLIC SAFETY TOTAL 367 384 384 410 *Fire Operations has been restated for FY 2014 to include the equivalent of 10 positions filled by volunteers, but reclassified to part-time in 2016. 134 EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET PUBLIC SAFETY Fire, 19.0% Police, 34.7% 53.7% Public Safety Expenditures as % of General Operating Expenditures FY 2016 Fire, 25% Police, 32% 57% Public Safety Personnel as % of General Fund Personnel FY 2016 135 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. The Police Department is active in the community and is involved in various community programs aimed at reducing crime. These programs include National Night Out, Gang Awareness Task Force, the Citizens’ Police Academy, homeowners association meetings, neighborhood watch programs, security surveys and home safety i nspections, Christmas Toys for Tots, as well as other programs. The department operates out of the Public Safety Building on Cullen Boulevard. The Animal Services Department is also within the purview of the City’s Police Department, as it was moved from Community Services effective fiscal year 2014-2015. While protecting the public from problems with animals, Animal Services also protects animals. In addition to the responsibility for impoundment of stray animals within Pearland city limits, the Humane Officers trap wildlife, provide for adoption of animals, respond to citizen calls of concern or emergencies, provide speakers for educational events for school and local groups, investigate animal cruelty cases, investigate animal bite cases, provide maintenance and care of the shelter facility, as well as care of all impounded animals. STRATEGIC COUNCIL PRIORITY: The Police Department, and its various divisions, places heavy emphasis on making Pearland a Safe Community. Community policing strategies, such as the Citizens’ Police Academy, pet foster and adoption programs, and ensuring citizens receive timely and relevant information also promote the City’s efforts to cultivate an Engaged Community. Key Budget Items for FY 2016 include: ♦ Added four (4) Police Sergeant upgrades, eight (8) Police Officers, and six (6) vehicles - $890,365. ♦ Replacement of 8 patrol and 2 investigation vehicles with equipment - $282,249. ♦ Detective assignment pay @ $100 bi-weekly, beginning October 1, 2015 - $43,200. ♦ Pano-scan Pointgun Scanner - $68,000 (funded out of the Police Seizure Fund). ♦ Police Staffing and Utilization Study - $150,000. GOALS ♦ Fairly and uniformly enforce statutory law, policy and procedures of the City and the department. ♦ Preserve civil order, investigate crime, and apprehend violators of the law. ♦ Gather, analyze, and disseminate information on criminal activity and the persons responsible for criminal activity. ♦ Build a strong working relationship with the community by serving as mentors and liaisons between the community and police. ♦ Provide advocacy and other services for victims of violent crime. ♦ Provide and maintain care and custody of prisoners. ♦ Provide enforcement of commercial vehicle traffic laws for a safer community. ♦ Serve as a resource for 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. 136 POLICE DEPARTMENT – 2211-2225 FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Increased Supervisory staff with the addition of two Sergeants assigned to the night shift patrol squads. Patrol squad staffing and related minimums were adjusted in order to provide rapid, effective police services. A Sergeant to the Proactive Unit within Patrol and an additional Sergeant to the Investigations Department providing a leader for each Personal Crimes & Property Crimes Divisions. ♦ Expanded the involvement of patrol personnel in the investigation of gang related activity as it pertains to narcotics activity and organized crime. A gang module was added to the computer system to ensure accurate tracking of gang activity. ♦ Expanded the use of social media to educate the community via timely and relevant dissemination of information regarding criminal incidents and crime prevention topics. Attracted over 1,200 additional “likes” to the Department’s Facebook page. ♦ Completed the training and graduation of the 40th Citizen’s Police Academy class. ♦ Hired the Department’s first full-time Crime Analyst. ♦ Animal Services expanded the number of adoption events by partnering with 15 local businesses in order to give the adoption option at their events, in addition to the community adoption events hosted by the City. ♦ Increased the availability of animal control officers until 10:00p.m. to better serve the needs of the citizens. ♦ Animal Services created a program for the routine availability of discounted micro-chipping of pets. ♦ Commercial Vehicle Enforcement officers held four meetings with private sector trucking firms in Pearland in order to educate their staff and drivers regarding safety and regulation issues. ♦ Implemented the Criti-Call testing system for Dispatch applicants, which will result in the most suitable hires and projected longevity in the position. ♦ Expanded the Bike Patrol unit with the addition of ten part-time officers and eight new patrol bicycles. The bicycles and related equipment were funded by a donation from the Citizens Police Academy Alumni Association. FISCAL YEAR 2016 OBJECTIVES ♦ Schedule department-wide mandatory training to ensure that all officers will meet State-mandated training requirements for the new TCOLE training cycle for 2015-2017. ♦ 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. ♦ Continue recruiting efforts through proven effective means to attract a large and diverse applicant pool. Actively work with Human Resources to promote employment opportunities within all areas of the Department. ♦ Implement a Teen Citizen’s Police Academy, based upon the popular adult Cardio-Pulmonary Resuscitation (CPR) course as an outreach program to Pearland youth regarding the role of police in society. ♦ Add a School Resource Officer to the program in order to more effectively meet the needs of our partnership with PISD. ♦ Implement a proactive unit that will use the Data Driven Approaches to Crime and Traffic Safety (DDACTS) program guidelines to address crime and traffic problems with more efficiency. The Crime Analyst will prove vital to this program by mapping “hot spots” for active police enforcement. ♦ Certify two additional Animal Control Officers to conduct animal cruelty investigations. ♦ Commercial Vehicle Enforcement officers will continue to host safety meetings with Pearland businesses involved in the commercial vehicle industry. ♦ Schedule and train all classified personnel and jail staff for a Mental Health Certification Course within the next two fiscal years to most effectively interact with members of the public who may be in mental distress. ♦ Test and evaluate body cameras for officers; determine suitability for the Department. ♦ Update the patrol vehicle video system to current specifications as the current units will be outdated and unsupported. ♦ Staff, plan for, and train personnel for the return of Alarm Billing and Permitting to this Department from the private contractor. ♦ Assign an investigator to a Federally-designated High Intensity Drug Trafficking Area (HIDTA) task force. ♦ Purchase a 3D plotting laser scanner to use during crime scene and advanced accident investigation renderings. ♦ Increase the level of communication and training with Alvin ISD officers due to the number of their schools within the City of Pearland and the upcoming opening of a new high school in Shadow Creek. ♦ Complete a Police Utilization Study in order to assess staffing and utilization. 137 5,452 5,253 5,382 5,463 5,200 5,250 5,300 5,350 5,400 5,450 5,500 FY 2013 FY 2014 FY 2015 Projection FY 2016 Target Total Number of Crime Reports 2,310 2,176 2,079 2,110 2,000 2,050 2,100 2,150 2,200 2,250 2,300 2,350 FY 2013 FY 2014 FY 2015 Projection FY 2016 Target Number of Animals Received at the Animal Shelter 70% 67% 75% 77% 64% 66% 68% 70% 72% 74% 76% 78% 2013 2014 2015 Projection 2016 Target Percent of Crimes Cleared Based on Assigned Cases POLICE DEPARTMENT – 2211-2225 2013 2014 2015 Projection 2016 Target Average Response Time per Car from Receipt of Call to Arrival on Scene 5 min 0 sec 6 min 59 sec 5 min 0 sec 4 min 34 sec 138 100% 98% 99% 95% 92% 94% 96% 98% 100% 2009 2011 2013 2015 Citizen Survey Results Good to Excellent Safety in Neighborhood 73% 76% 72% 65% 0% 20% 40% 60% 80% 100% 2009 2011 2013 2015 Citizen Survey Results Good to Excellent Traffic Enforcement POLICE DEPARTMENT – 2211-2225 PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Forecasted Violent and non-violent person crimes reported 754 759 721 732 Property and society crimes reported 4,698 4,494 4,595 5,067 Training hours completed, Pearland Officers 9,000 19,485 10,438 19,936 Number of 911 calls received by dispatch 45,247 36,279 35,014 35,539 Average time - receipt of citizen call to unit dispatched (in seconds) 69 61 60 60 Average number of 911 calls per Telecommunication Operator 289 230 256 256 Number of offense reports 12,072 13,962 13,088 13,284 Total arrests made by police 7,642 7,081 6,201 6,294 Dispatched calls per Patrol Officer 659 595 602 611 Average response time per car 4min 34sec 5min 0sec 6min 59sec 5min 0sec Number of animals received at animal shelter 2,375 2,176 2,079 2,110 Percent of animals adopted 43% 48% 55% 55% 139 91% 92% 95% 93% 85% 90% 95% 100% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Ratings of Fire Services 88% 88% 92% 90% 85% 87% 89% 91% 93% 95% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Ratings of Ambulance/EMS Services FIRE DEPARTMENT – 2315 - 2360 OVERVIEW Fire Administration and Operations provides fire suppression, rescue, and emergency medical services to the City and surrounding areas, serving an area comprised of the Pearland City Limits and its Extra-Territorial Jurisdiction (ETJ). The community improved its ISO Public Protection Classification to a rating of 2/8B, which puts Pearland in the top 5% of communities in the nation. As part of the Fire Department, The Fire Marshal’s Office provides fire inspections, public fire prevention education, and fire investigations. The Fire Marshal’s Office also manages the Health/Code Enforcement Services, providing inspections of food establishments, including restaurants, schools, and group homes for compliance to City ordinances, and the Emergency Operations Center in response to an emergency or disaster. STRATEGIC COUNCIL PRIORITY: The Fire Department places heavy emphasis on making Pearland a Safe Community. The department conducts educational activities such as fire prevention and protection and car-seat safety that create an Engaged Community. The department code enforcement officers conduct inspections of buildings, food and other business establishments, as well as environmental clean-up of structures and grounds to support a Healthy Economy for the City. Key Budget Items for FY 2016 include: ♦ Purchase of a Fire ladder truck and an ambulance, $1,160,000 ♦ Conversion of volunteer firefighters to paid, part-time firefighters effective October 1, 2015 - $168,522. ♦ One new Health/Code Enforcement Officer and related apparatus - $57,452. ♦ Replacement of two SUV’s and one F150 - $139,691. ♦ Two part-time receptionists - $30,405. GOALS – SAFE COMMUNITY ♦ 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. ♦ Inspect all health code permitted businesses semi-annually. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Consolidated EMS, Fire, Fire Marshal, and Health/Environmental Inspections operations. ♦ Placed 5th staffed ambulance into service. ♦ Implemented revised Quality Assurance/Quality Improvement (QA/QI) Program. ♦ Increased revenue recovery through participation in Texas Ambulance Supplemental Payment Program. ♦ Continued working with the National Weather Service to receive Storm Ready Designation. ♦ Opened Fire Station 3, with the staffing, a newly purchased and equipped fire engine, and other apparatus necessary for 24/7 operation. 140 FIRE DEPARTMENT – 2315 - 2360 FISCAL YEAR 2016 OBJECTIVES ♦ Open and staff new Fire Station #2 24/7. ♦ Purchase and equip new ladder truck. ♦ Complete 1 volunteer Fire and EMS Academy. ♦ Implement and update new medical protocols in partnership with the City’s new Medical Director. ♦ Complete Fire Department Strategic Plan ♦ Design new Fire Station #1 to replace the old Fire Station #1. ♦ Decrease response times. ♦ Obtain increased funding from Brazoria County for ETJ incidents. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Average Response Time: Percent 5 minutes or less 47% 47% 20% 40% Percent 9 minutes or less 83% 83% 67% 80% Total Estimated Fire Loss $1,326,337 $1,800,000 $1,700,000 $1,600,000 Number of Code Enforcement Cases Opened 2,148 2,070 2,500 2,700 Number of Annual Inspections 1,115 1,600 2,000 2,400 Emergency Medical Transports 4,708 4,499 4,700 4,900 Public Safety Education Hours 324 279 300 400 0 20 40 60 80 100 FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Firefighter Average Response Time Percent 5 Minutes or Less Percent 9 Minutes or Less 141 COMMUNITY SERVICES *Reports to the P.E.D.C. Board and the City Manager. **Reports to the City Manager. ***These positions are funded in Special Revenue Funds. Municipal Court also includes a full-time Judge. 142 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT / DIVISION Actual Budget Projection Budget Community Development Community Development Administration 394,634 423,873 434,616 364,389 Permits & Inspections 961,413 1,115,172 1,157,603 1,313,438 Planning 328,653 452,545 409,094 417,793 Communications 342,034 457,421 475,688 470,466 Municipal Court 634,728 685,516 687,285 737,917 COMMUNITY SERVICES TOTAL 2,661,462 3,134,527 3,164,286 3,304,003 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Projection Budget Salaries & Wages 2,165,251 2,443,842 2,482,684 2,739,042 Materials & Supplies 114,790 149,917 142,743 140,156 Building Maintenance 21 Equipment Maintenance 28,848 27,200 19,744 17,644 Miscellaneous Services 336,918 493,951 499,569 358,476 Sundry Charges 3,107 5,000 5,000 3,645 Inventory 12,527 14,617 14,546 2,200 Capital Outlay 42,840 COMMUNITY SERVICES TOTAL 2,661,462 3,134,527 3,164,286 3,304,003 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget*Projection Budget Community Development Community Development Administration 3 3 3 4 Permits & Inspections 15 16 16 17 Planning 4 4 4 4 Communications 3 4 4 4 Municipal Court**15 15 15 15 COMMUNITY SERVICES TOTAL 40 42 42 44 *Same as adopted budget, unless where noted. **Municipal Court - Four positions, 3.48 FTE, are funded in Special Revenue Funds. COMMUNITY SERVICES EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET 143 COMMUNITY SERVICES EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET Community Development Admin., 0.5% Planning, 0.6% Communications, 0.7% Municipal Court, 1.0% Permits & Inspections 1.8% 4.6% Community Services Expenditures as % of General Operating Expenditure FY 2016 Planning, 1% Communications, 1% Municipal Court, 2% Permits & Inspections, 2% Community Development Admin., 1% 7% Community Services Personnel as % of General Fund Personnel FY 2016 144 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 Permit & Inspection Services. Community Development Administration 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. The Department also processes all land use related request including zone changes, variance and special exception requests, and subdivision plats. The Inspection Services Division conducts building inspections and enforces development and building codes. This division processes residential and commercial building permits. It also enforces plumbing, mechanical, and electrical regulations to ensure proper construction techniques are followed for all commercial and residential buildings. STRATEGIC COUNCIL PRIORITY: Building safety, managed growth, and planned development are principles that provide the Pearland community with Sustainable Infrastructure, a Healthy Economy and a Safe Community. Key Budget Items for FY 2016 Include: ♦ Reclassification of Plans Examiner to Assistant Building Official (12 months of funding) - $7,085. ♦ One (1) Plans Examiner (9 months of funding) - $53,059. ♦ Small Business Coordinator (6 months of funding) - $38,950. ♦ Revenues from an increase in fees for Mechanical, Electrical, and Plumbing/Gas permits - $105,558. ♦ Annexation of approximately 500 acres along Bailey Avenue. ♦ Adoption of 2015 ICC building codes. GOALS ♦ Implement the departmental mission: Quality Service - Excellent Results ♦ 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 2015 ACCOMPLISHMENTS ♦ Community Development Strategic Plan – continued team building activities to promote the Department’s mission - Quality Service/Excellent Results. ♦ Received the Planning Excellence Award from the American Planning Association. ♦ Adopted 2015 Comprehensive Plan. ♦ Commenced Bailey Road annexation process. ♦ Initiated Enterprise Resource Planning (ERP) process for all permit and planning approval processes. ♦ Customer Service Initiatives - Created a Development Process Brochure, map of Current Commercial Projects, and Universal Applications. Developed tables for Permit Review Processing for residential and commercial developments, Code Compliance Departmental Responsibility, and Development Related Codes. ♦ Updated the Development Handbook and Pre-Development Packet. ♦ Conducted public outreach forums – Builders Forum and Planning Day. ♦ Adopted electronic review process for platting and plan review. ♦ Adopted simplified methodology to calculate mechanical, electrical, and plumbing permit fees. ♦ Continued professional training for staff, Planning and Zoning Commission, and Zoning Board of Adjustment. ♦ Updated the Thoroughfare Plan. ♦ Processed T-17 and T-18 Unified Development Code update. 145 82% 82% 86% 74% 59% 59% 62% 47% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Overall Appearance of the City Land Use, Planning and Zoning 26,274 28,434 36,497 40,030 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2013 2014 2015 Projection 2016 Target Total Number of Building Inspections COMMUNITY DEVELOPMENT – 1605-1650 FISCAL YEAR 2016 OBJECTIVES ♦ Complete Bailey Road Annexation. ♦ Implement Enterprise Resource Planning (ERP) – Trakit software. ♦ Present 2015 International Building Codes (“I-Codes”) to council for adoption. ♦ Implement satellite garage sale permit issuance at the City’s Public Safety Building. ♦ Proceed with implementation of Action Steps listed in the 2015 Comprehensive Plan. ♦ Complete scanning and archiving of all records for paper document reduction. ♦ Conduct Annual Planning Day and Builders Forum. ♦ Continue professional training for staff, Planning and Zoning Commission, and Zoning Board of Adjustment. ♦ Continue to provide population updates and special studies. ♦ Continue to publish Community Development newsletter. ♦ Revise pre-development information to include all new adopted codes and ordinances. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Zone Change Cases 18 19 25 30 Total Plat Approvals 93 143 115 130 Site Plans reviewed 53 111 100 125 Total plans reviewed 939 1,185 1,584 2,000 Total building inspections 26,274 28,434 36,497 38,250 Total permits issued Average Value Single Family Home Permitted 10,630 $219,714 13,972 $231,173 18,186 $225,366 20,000 $230,000 146 2,000,000 1,836,545 2,500,000 2,500,000 1500000 1700000 1900000 2100000 2300000 2500000 2700000 2013 2014 2015 Projection 2016 Target Total Number of Website Visits www.pearlandtx.gov 45 50 65 75 30 40 50 60 70 80 2013 2014 2015 Projection 2016 Target Total Number of News Releases 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. STRATEGIC COUNCIL PRIORITY: The Communications Department ensures citizens are kept informed and up- to-date on information, projects and events occurring throughout the City which leads to an Engaged Community. Key Budget Items for FY 2016 include: ♦ Improvement of audio, visual, and public announcement system associated with the renovation and expansion of the Council Chamber dais and change - $140,000 (PEG Fund) ♦ Build-out of studio and purchase of equipment - $49,650 (PEG Fund) GOALS – ENGAGED COMMUNITY ♦ Establish the City of Pearland Communications Department as a primary information source for City of Pearland news and information. ♦ Increase awareness, interest and participation of Pearland residents in City government goals and activities. ♦ Build community and positive identification among residents with their home City. ♦ Build corporate pride among employees and positive identification with the City government as a whole. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Received eleven (11) awards in communications excellence from various state and national city/county marketing/communications associations. ♦ Successfully began two new series, Pearland Green and Workout Pearland that directly affected and promoted citizen participation with city facilities and upkeep. ♦ Filmed, edited and produced a Police Department recruitment video that resulted in a 74 percent increase in recruiting pool than the prior testing group. ♦ Implemented a strategic Communications/Marketing campaign to communicate the resident Waste Collection route change. The route change Web page had more 9,000 unique views on the first day of the change. Of the 31,000 households in the City, less than one percent issued complaints regarding the change. PERFORMANCE MEASURES 147 COMMUNICATIONS – 1530 FISCAL YEAR 2016 OBJECTIVES ♦ Increase transportation/mobility-related communications by 15 percent. ♦ Identify marketing opportunities and strategies to promote City programs and services, with an emphasis on Parks & Recreation programs and services in an effort to increase participation by 10 percent. ♦ Implement a marketing/communications plan for the City’s customer service initiative – Service, the Pearland Way. ♦ Develop and implement a plan to increase social media followers/fans to YouTube (700), Twitter (3,550), Facebook (11,000) and Instagram (550). ♦ Begin build-out of studio and purchase of equipment. Citizen Survey 2015 How Citizens Get Their Information Type of Source Major Source Minor Source City Website 68% 24% Local Newspaper 27% 46% Other Local Media 32% 41% PEG Channel 9% 36% Social Media 29% 35% Water Bill Insert 27% 45% City Publications 17% 48% PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Facebook fans/friends 3,511 5,499 8,589 11,000 Twitter followers 694 1,289 2,254 3,550 YouTube subscribers 65 147 436 700 Percent of news releases published 95% 95% 95% 75% Number of news releases written 45 50 65 75 148 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. STRATEGIC COUNCIL GOAL: Adjudication of misdemeanor crimes and local code violations provides Pearland residents and visitors with a Safe Community. Key Budget Items for FY 2016 include: ♦ Increase Part-Time Bailiff to a Full-Time position - $26,792. GOALS ♦ Uphold the Constitution, laws and legal regulations of the United States, the State of Texas and all governments therein. ♦ Set high standards to maintain and preserve the integrity of all cases filed in the Pearland Municipal Court of Record. ♦ Abide by the standards set out in the Texas Code of Judicial Conduct. ♦ Protect the confidentiality of all records filed. ♦ Remain cognizant of the needs of customers and citizens of the Pearland Municipal Court to reinforce the positive perception of the judiciary. ♦ Provide access and encourage education of staff to increase the level of expertise and proficiency in the affairs of the Municipal Court. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Procured a part-time bailiff to help with security in the courtroom. ♦ Procured wand metal detectors to help with the scan of people entering the courtroom. ♦ Two Court Clerks achieved Level II certifications, and 3 court clerks achieved Level I certifications. ♦ Began and implemented the Teen Court Program. FISCAL YEAR 2016 OBJECTIVES ♦ Procurement of a full-time Bailiff allowing better security for citizens, Judge and court staff. ♦ Accomplishment of court going “paper lite” by the scanning of all documents filed with the court. ♦ 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 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Number of Judge trials prepared 278 217 325 575 Number of Jury trials prepared 607 622 700 500 Number of warrants issued 10,727 9,438 11,500 8,000 Total number of charges brought in 27,439 23,182 25,000 20,000 Percent Guilty Charge 61% 68% 68% 65% Percent Charges Dismissed 7% 12% 7% 30% Percent in Compliance1 24% 29% 25% 30% Outstanding warrants 17,665 17,644 16,500 17,500 Value of outstanding warrants $6,273,801 $8,395,229 $8,500,000 $9,000,000 1Compliance is defined as a charge that has been cleared due to a defendant’s corrected vehicle registration, insurance, vehicle inspection, completion of driver’s safety course, or a deferred adjudication. 149 *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. PUBLIC WORKS 150 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT / DIVISION Actual Budget Projection Budget Public Works Operations Administration 410,427 227,719 206,016 158,901 Facilities Maintenance 865,282 1,393,817 1,419,363 1,035,605 Custodial Services*337,574 317,093 311,681 355,016 Fleet Maintenance 420,020 546,409 426,738 259,140 Streets & Drainage 4,684,214 5,193,356 5,284,424 4,964,212 ROW Mowing 735,031 827,041 1,453,099 Service Center 190,534 175,133 151,007 95,150 Public Works and Engineering Administration 262,659 309,455 261,000 261,040 Capital Projects 824,585 840,118 883,253 911,715 Traffic Operations & Management 799,779 1,255,399 978,716 1,150,196 Engineering 1,059,772 1,144,537 1,111,524 1,162,814 PUBLIC WORKS TOTAL 9,854,846 12,138,067 11,860,763 11,806,888 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Projection Budget Salaries & Wages 3,919,589 4,401,226 4,263,772 4,525,407 Materials & Supplies 317,362 601,556 506,789 415,486 Building Maintenance 1,027,952 2,111,140 2,109,484 1,363,811 Equipment Maintenance 327,641 328,604 289,954 263,249 Miscellaneous Services 3,190,900 3,652,287 3,511,081 4,588,207 Sundry 105,284 159,857 159,857 63,404 Inventory 6,762 37,858 28,258 Capital Outlay 959,356 845,539 991,568 587,324 PUBLIC WORKS TOTAL 9,854,846 12,138,067 11,860,763 11,806,888 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget Projection Budget Public Works and Engineering Administration 3 3 2 2 Public Works Operations Administration 1.75 2 2 2 Facilities Maintenance 5 5.67 5.67 5.67 Custodial Services*3 3 3 3 Fleet Maintenance 7 4 4 4 Streets & Drainage 17 16 16 16 ROW Mowing 3 3 3 Traffic Operations & Management 6 6 6 6 Service Center Engineering 12 12 12 12 Capital Projects 9 9 10 10 PUBLIC WORKS TOTAL 63.75 63.67 63.67 63.67 *One Custodian in Custodial Services is funded in UofH Fund Note: Personnel listed for General Fund only. Water/Sewer personnel accounted for in the Water/Sewer Fund. PUBLIC WORKS EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET 151 PUBLIC WORKS EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET Note: Custodial Services and ROW Departments calculate at 0% due to low number of employees compared to the total, therefore, are not included in the graph. PW Operations Admin and PW & Engr Admin appear at 0% due to low number of personnel compared to the total, but have a higher number of employees than Custodial Services and ROW departments. PW Oper.Admin, 0.2% Service Center, 0.1% Custodial Services, 0.5% PW & Engr. Admin, 0.4% Fleet Mtce, 0.4% ROW Mowing, 2.0% Capital Projects, 1.3% Facilities Mtce, 1.4% Traffic Oper. & Mgt., 1.6% Engineering, 1.6% Streets & Drainage, 6.9% 16.4% Public Works Expenditures as % of General Operating Expenditures FY 2016 PW Oper. Admin., 0% PW & Engr. Admin., 0% Facilities Mtce., 1% Traffic Oper., 2% Fleet Mtce, 1% Capital Projects, 1% Engineering, 2% Streets & Drainage, 2% 9% Public Works Personnel as % of General Fund Personnel FY 2016 152 PUBLIC WORKS 1405 - 1440 and 3520 - 3590 OVERVIEW The Public Works Department with the Engineering & Capital Projects Department report to the Assistant City Manager and are responsible for maintaining the City’s infrastructure and mobility. 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. In addition, The Public Works Department manages the water/wastewater operations of the City within the Enterprise, Water & Sewer Fund. Within the General Fund, the Public Works Department provides maintenance and custodial services to all City facilities, manages City vehicles and motorized equipment, including preventive maintenance and minor 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 throughout the City. The Engineering and Capital Projects Department develops, implements, and manages City infrastructure capital projects including facilities, parks, streets, drainage, water and wastewater projects. In addition, this department oversees the preparation of the Regional Detention Pond Master Plan, Transportation Master Plan, Water and Wastewater Master Plans, Impact Fee updates and Traffic Impact analysis. STRATEGIC COUNCIL PRIORITIES: The Public Works, Engineering, Capital Projects, and other functions within this domain of the City’s government structure are designed to support the installation, maintenance and improvement of roads, streets, drainage, water production and treatment, and other public goods in ways that deliver citizens Sustainable Infrastructure, and provides for a Safe Community. Key Budget Items for FY 2016 include: ♦ Atser Software Maintenance Upgrade - $58,000. ♦ Animal Services Facility Rehab - $35,000. ♦ Old Fire Stations #2 and #3 demolition - $30,000. ♦ Corridor Traffic Signal Timing - $50,000. ♦ Annexation area signs, hardware, lane markings, and sign poles - $34,144. ♦ Span wire rebuild - $192,000. GOALS ♦ Provide reliable, safe, and aesthetically pleasing roadways and sidewalk systems through systematic inspection and maintenance. ♦ Maintain and enhance where possible the appearance of City ROW through street sweeping, turf and landscape maintenance management practices. ♦ Reduce flooding and minimize the chance of property damage, injury or loss of life through a program of drainage facility maintenance and construction. ♦ Maintain a Project Management staff that is highly trained and proficient with the necessary tools to manage complex projects in a professional manner. ♦ Manage project scope, schedule and budget, and provide innovative solutions to deliver best value projects within budget and on schedule. ♦ Provide effective Right-of-Way coordination to resolve public and private utility conflicts in advance of project construction. ♦ Develop and maintain the City’s Five-Year CIP in conjunction with the Finance Department ♦ Develop and maintain the City’s Design Criteria Manual, Specifications, Standard Details, and Infrastructure Master Plans. ♦ Develop a strategic department growth plan that efficiently provides support to our Capital Improvement Program, the Public Works Department, Parks & Recreation Department, and other City departments. 153 PUBLIC WORKS 1405 - 1440 and 3520 - 3590 FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Managed comprehensive repair of Dectron system at the Natatorium and developed new maintenance procedures to safeguard against like failures in the future. ♦ Developed new management team and service philosophy in Fleet Services Division. ♦ Developed a street sweeping program that outlines 209 lane miles of roadway swept on a quarterly or twice per year frequency. ♦ Completed ROW assessment and presented results to City Council. ♦ Developed and managed a right-of-way transition program, returning the grounds maintenance of all private property that was once maintained twelve times per year through City resources back to the private landowner. ♦ Installed 350ft of 16″ water line offset on Dixie Farm Road and Pearland Parkway. ♦ Cleaned approximately 7,003′ of various sized culverts. ♦ Cleaned approximately 7,421′ of ditches. ♦ Installed approximately 202′ of culverts and 32,292 linear feet of sidewalk. ♦ Completion and submission of 5 project applications for the Transportation Improvement Plan (TIP). ♦ Completion of the design for Reflection Bay WWTP Expansion. ♦ Completion of the Traffic Management Plan. ♦ Completion of a number of local projects, including but not limited to: Intelligent Traffic Management System, Hawk Hillhouse Road Sanitary Sewer, Business Center Drive Library Expansion, Walnut Lift Station, Hatfield Basin Trunk Sewer, and SH35 Water Line. FISCAL YEAR 2016 OBJECTIVES ♦ Begin the development of a facility condition rating system that identifies the condition of major infrastructure at City facilities and identifies the remaining useful life of each. ♦ Manage rehabilitation of roadways identified through ROW assessment and funded through budget process. ♦ Select work order system vendor and begin integration with ERP system as well as ROW Assessment and GIS. ♦ Complete City-wide ITS traffic signal project upgrades. ♦ Implement new signal timing plans along key corridors. ♦ Identify water and sanitary collection system infrastructure that has outlived its expected life and replace or repair those lines as resources allow. ♦ Install/replace 500 linear feet of culvert pipe via City crews and contractor. ♦ Install/replace 4,100 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. ♦ Improve the effectiveness of our services by maintaining projects budget, scope, schedule and communication with the community, internal department partners, external partners and sponsors. ♦ Build quality into project management processes in order to ensure the community’s expectations are met and satisfaction with services are achieved. 0% 50% Excellent Good Fair Poor 2015 Citizen Survey Quality Rating for Public Works Services Street Repair Street Cleaning Street Lighting Sidewalk Main. Traffic Signal Timing 57% 61% 62% 56% 53% 55% 57% 59% 61% 63% 2009 2011 2013 2015 2015 Citizen Survey Results Good to Excellent Overall Ease of Travel 154 4,476 14,000 32,292 4,184 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2013 2014 2015 Projection 2016 Target Sidewalk Installed (Linear Feet) PUBLIC WORKS 1405 - 1440 and 3520 - 3590 PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Percent of water plants mowed within the 2-week schedule 100% 96% 75% 90% Street Sweeping in Miles 1,155 950 778 800 Ditch/Culvert Cleaning (in feet) 124,167 54,879 20,452 33,000 Percent of lane miles in need of repair (asphalt) 37% 37% 37% 37% Average backlog of sidewalk/curb repair work orders 536 644 766 700 Number of Potholes Repaired 1,682 3,886 3,500 3,500 Culvert Pipe Installed/Replaced (Feet) 606 313 300 500 Total value of current active projects (millions) $274.7 $199 $231 $117.3* Percent of Change Orders to Total Contract Value 0.15% <5% <5% <5% Average number of active projects being administered 29 30 35 40 Percent of active projects started on schedule** 75% 81% 67% 75% Percent of active projects completed on schedule** 57% 67% 63% 65% *FY16 targets do not include FY15 budgeted projects that begin In FY16, or carry over into FY16. Based on CIP. **Based on the active number of projects being administered. 155 *Reports to the Deputy City Manager. PARKS & RECREATION DEPARTMENT 156 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT / DIVISION Actual Budget Projection Budget Administration 885,093 695,026 700,181 618,155 Resource Development 191,300 131,834 130,661 122,137 Recreation Center/Natatorium 1,791,973 2,275,660 2,163,765 2,249,197 Westside Events Center 171,703 308 Parks Maintenance West (ROW Mowing)931,107 Parks Maintenance (former Parks Mtce East)1,122,670 2,377,024 2,207,760 2,616,758 Athletics 266,017 366,480 339,893 329,357 Special Events 230,942 339,356 319,916 319,682 Senior Program 241,118 215,161 233,685 283,592 Youth Development 181,379 Aquatics 103,166 141,223 141,226 148,398 Recycling 214,606 229,527 221,635 57,475 PARKS & RECREATION TOTAL 6,331,074 6,771,599 6,458,722 6,744,751 EXPENDITURES BY CATEGORY Salaries & Wages 3,838,667 4,005,987 3,770,958 3,987,627 Materials & Supplies 384,336 467,755 461,234 506,516 Building Maintenance 308,261 370,938 510,085 627,703 Equipment Maintenance 162,042 147,829 139,725 115,101 Miscellaneous Services 1,471,816 1,680,137 1,475,990 1,456,453 Sundry Charges 800 800 331 Inventory 17,032 1,777 Capital Outlay 148,920 98,153 98,153 51,020 PARKS & RECREATION TOTAL 6,331,074 6,771,599 6,458,722 6,744,751 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget Projection Budget Administration 7 8 8 8 Resource Development 2 2 2 2 Recreation Center/Natatorium (RC/N)61 64 64 63 Westside Events Center (WEC)3 Parks Maintenance West 15 Parks Maintenance (former Parks Mtce East)15 27 27 27 Athletics 6 6 6 6 Special Events 2 2 2 2 Senior Program 5 6 6 6 Youth Development Aquatics 4 4 4 4 Recycling 6 6 6 6 PARKS & RECREATION TOTAL 126 125 125 124 PARKS & RECREATION EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET 157 PARKS & RECREATION EXPENDITURE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET Resource Dev, 0.1% Aquatics, 0.1% Recycling, 0.1% Senior Program, 0.4% Special Events, 0.4% Athletics, 0.4% Administration, 0.9% Parks Maintenance, 3.7% Recreation Center/ Natatorium, 3.1% 9.2% Parks & Recreation Expenditures as % of General Operating Expenditures FY 2016 Special Events, 0.3% Resource Dev., 0.3% Aquatics, 0.6% Athletics, 0.9% Senior Prog., 0.9% Recycling, 0.9% Administration, 1.2% Parks Maintenance, 3.9% Recreation Center/ Natatorium, 9.0% 18% Parks & Recreation Personnel as % of General Fund Personnel FY 2016 158 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, senior citizens programs, and parks maintenance, the department maintains 10 neighborhood parks and 3 larger community parks, a Recreation Center/Natatorium, the Westside Events Center, the Melvin Knapp Senior Center, and the Recycling Center. STRATEGIC COUNCIL PRIORITY: The City aims to provide its citizens with Quality Parks, Recreation and Events. Key Budget Items for FY 2016 include: ♦ Replacement/lease of weight and cardio equipment for the Pearland Recreation Center - $103,000. ♦ Replacement of safety surface (Fall Zone) at Southdown Park Playground - $71,020. ♦ Transition of Stella Roberts Recycle Center operations to Keep Pearland Beautiful. 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 2015 ACCOMPLISHMENTS ♦ Athletic staff attended the TAAF Summer Games as liaison for youth basketball, track and field. ♦ Launched the first Recognized Sports Association (RSA) designation with Pearland Girls Softball Association (PGSA). ♦ Rentals at Veterans Sports Complex increased by 25% over 187 days. ♦ Knapp Senior Center memberships have increased by 48.9% from 2013 to 2015. ♦ Birthday Bash membership sales saw a $9,000 increase at the event compared to FY 14 numbers. ♦ The City of Pearland, via the office of the Urban Forester, achieved yet another year of Tree City USA recognition along with this year achieving a Growth Award and Tree Campus USA (UHCL-Pearland) distinction. ♦ Installed first municipal floating wetlands in Texas at John Hargrove Environmental Complex. FISCAL YEAR 2016 OBJECTIVES ♦ Develop and implement new youth recreational programs such as youth kickball, soccer tots and 7 on 7 youth football. ♦ Develop partnership to introduce youth and adult tournaments at Shadow Creek Sports Complex. ♦ Develop and implement adult and senior recreational programs. ♦ Provide inclusive transportation opportunities for those with ADA needs by collaborating with local providers and other organizations. ♦ Hosting 2016 Jr. Swimming/Diving Special Olympics. ♦ Implement organic fertilization program to complement increased over-seeding efforts. ♦ Update park signs in accordance with adopted standards. ♦ Comprehensive review of Parkland Dedication Ordinance. 159 2,646 2,719 2,974 3,000 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 2013 2014 2015 Projection 2016 Target Average Senior Program Participants per Month 74% 69% 69% 39% 35% 45% 55% 65% 75% 85% 2009 2011 2013 2015 Citizen Survey Results Good to Excellent Paths and Walking Trails 91% 98% 99% 99% 90% 92% 94% 96% 98% 100% 2013 2014 2015 Projection 2016 Target Recreation Center Classes Participant Ratings Good to Excellent PARKS & RECREATION – 3340-3397 PERFORMANCE MEASURES 15,366 16,180 15,000 21,000 12,941 14,740 15,500 15,500 0 5,000 10,000 15,000 20,000 25,000 2013 2014 2015 Projection 2016 Target Average Number of Monthly Visitors Recreation Center & Natatorium Recreation Center Natatorium 160 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 AMENDED YEAR END ADOPTED ACTUAL BUDGET PROJECTION BUDGET REVENUES SALE OF WATER $14,937,971 $16,909,444 $14,348,930 $17,846,715 SEWER REVENUES 12,528,663 13,801,224 12,832,871 16,181,749 OTHER SERVICE CHARGES 1,462,140 1,539,728 1,590,509 1,617,554 INTEREST INCOME 79,854 48,700 139,650 105,000 OTHER MISCELLANEOUS INCOME 274,466 257,800 224,040 232,557 TRANSFERS IN 2,483,836 2,568,222 2,568,222 2,582,700 CAPITAL LEASE PROCEEDS 458,000 458,000 TOTAL 31,766,930 35,583,118 32,162,222 38,566,275 EXPENSES PUBLIC WORKS ADMINISTRATION 558,545 553,840 568,079 LIFT STATIONS 1,106,723 1,648,469 1,627,853 1,398,412 WASTEWATER TREATMENT 4,712,630 4,443,956 4,609,472 4,614,742 WATER PRODUCTION 7,004,756 9,274,610 8,417,459 7,982,126 DISTRIBUTION & COLLECTION 2,100,910 2,676,461 2,459,381 2,023,112 CONSTRUCTION 934,080 982,718 875,280 733,434 WATER METER SERVICES 1,443,783 1,406,761 1,583,527 ROW MOWING 486,625 378,567 439,456 UTILITY CUSTOMER SERVICES 1,779,110 1,353,777 1,090,447 1,173,683 INFORMATION SYSTEMS - GIS 234,138 171,416 128,755 175,429 OTHER REQUIREMENTS 12,069,952 14,797,134 14,047,781 17,730,759 TOTAL 29,942,299 37,837,494 35,595,596 38,422,759 REVENUES OVER/(UNDER) EXPENSES 1,824,631 (2,254,376)(3,433,374)143,516 Beginning Cash Equivalents 13,549,144 15,373,775 15,373,775 11,940,401 Reserve for Debt Service 1,929,503 2,278,256 2,278,256 2,623,222 Ending Cash Equivalents $13,444,272 $10,841,143 $9,662,145 $9,460,694 Bond Coverage - 1.4 1.55 1.30 1.71 Cash Reserve Ratio - 25%45%27%25% WATER AND SEWER FUND - 30 FY 2016 ADOPTED BUDGET 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 36,000 residential and commercial customers. Water &Sewer revenues provide 88% 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 2016,a water and sewer revenue increase of 16%is required to meet the needs of the system. 161 WATER & SEWER FUND REVENUE & EXPENSE SUMMARY FY 2016 ADOPT ED BUDGET FISCAL YEAR 2014-2015 Projected revenues of $32,162,222 are $3,420,896, or 9.6%, less than planned and $395,292, or 1.2%, greater than the fiscal year 2014 actual of $31,766,930 despite a 4.63% revenue increase, approved effective October 2014, and a 2.3% growth in residential connections. The fiscal year 2015 projected revenue is lower than the amended budget due to the increase in rainfall the City has been experiencing this fiscal year (63 inches October through August versus 39 inches last year October through August), thus reducing water usage for sprinklers, etc. Revenues from the sale of water and sewer services are projected to be $3,528,867 or 11.5% lower than budgeted. Other service charges are projected to come in slightly over the amended budget amount. Fiscal Year 2015 expenses are anticipated to be $35,595,596. This is $2,241,898 less than the amended budget of $37,837,494, as some programs were reduced given the known shortfall in revenues. Expenses are $5,653,297 higher than the fiscal year 2014 actual. Although less than the amended budget, projected expenses in water production were higher than the previous year due to high levels of manganese and iron at one of the water plants, requiring the purchase of surface water for residential and commercial use. This was offset by the renegotiation of the GCWA water purchase contract which freed up a $233,000 reserve. The ending balance at 9/30/15 is estimated to be $9,662,145 with a 27% cash reserve ratio and a bond coverage of 1.30. FISCAL YEAR 2015-2016 Fiscal Year 2016 revenues total $38,566,275, an $6,404,053 increase from the fiscal year 2015 projections and a $2,983,157 increase from fiscal year 2015 amended budget. Water and sewer charges increased by $6,846,663, or 25.2%, over the 2015 projections. This is mainly due to an anticipated revenue increase of 16%, or $4,700,343, and an increase in customer growth of 2.5%. Fiscal year 2016 expenses total $38,422,759 and include annual debt service payments of $14.4 million, an increase of $3.9 million from fiscal year 2015. Expenses are $2,827,163 or 7.9%, higher than the fiscal year 2015 projections and are $585,265, or 1.5%, higher than the amended budget. Enhancements to the budget total $892,613, $74,433 recurring and $818,180 non-recurring. Enhancements include additional funding for large meter testing ($41,656), 2″ meter testing ($8,700), 6″ meter in vault replacement ($13,777), 6″ combination meter ($10,300), chemical feeder ($25,000), a restroom at the 518 water facility ($15,000), RD 7000 line locator ($8,000), replacement of chemical containment walls at 11 water plants ($350,000), and the second year pro-rata share of ERP ($350,180). The budget anticipates two water/sewer bond sales; one totaling $4.84 million to fund infrastructure improvements in the capital improvement program with the first debt service payment in fiscal year 2017. The second is TWDB financing in the amount of $55 million for Reflection Bay Reclamation Facility Expansion. The budget includes $3.8 million for an annual debt service payment associated with the Texas Water Development Board Loan. Available ending balance at 9/30/2016 is expected to be $9,460,694. With the 16% revenue increase, revenues exceed expenditures by $143,516. Bond coverage is 1.71 and cash reserves are 25%. Based on a 16% revenue increase and rate increases allocated to the base and volume charges monthly bills based on consumption scenarios are as follows: RESIDENTIAL WITH SEWER CAP OF 6,000 GALLONS Consumption Current Bill 2016 Bill Amount Changed Base (0-2,000) $26.39 $31.22 $4.83 6,000 $52.15 $61.02 $8.87 10,000 $67.99 $78.42 $10.43 15,000 $87.79 $100.17 $12.38 162 Sale of Water, 46.2% Other Service Charges, 4.2% Interest Income, 0.3% Sewer Revenues, 42.0% Other Misc. Income, 0.6% Transfers In, 6.7% WATER AND SEWER REVENUES FY 2016 Administration, 1.5% Lift Stations, 3.6% Water Production, 20.8% Distribution & Collection, 5.3% Construction, 1.9% Water Meter Services, 4.1% Wastewater Treatment, 12.0% Row Mowing, 1.1% Utility Customer Services, 3.1% GIS, 0.5% Other Requirements, 46.1% WATER & SEWER FUND EXPENSES FY 2016 163 FY 2015 FY 2015 FY 2016 FY 2014 AMENDED YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET PROJECTION BUDGET 030-0000-353.04-02 Water Sales 14,937,971 16,909,444 14,348,930 17,846,715 030-0000-353.04-03 Sewer Charges 12,528,663 13,801,224 12,832,871 16,181,749 030-0000-353.04-04 Sanitation Billing Fee 366,322 376,752 377,407 390,054 030-0000-353.04-07 Connection Fee 169,917 162,740 168,000 170,200 030-0000-353.04-09 Water Tap Fee 367,293 475,965 472,000 450,000 030-0000-353.04-10 Sewer Tap Fee 14,720 14,500 4,902 5,000 030-0000-353.04-11 Late Payment Fee 477,977 443,000 495,000 510,000 030-0000-353.04-12 Meter Set Fee 5,500 3,600 2,550 2,700 030-0000-353.04-13 Curb Stop Replacement Fee 161 161 500 500 030-0000-353-04-14 Reconnect Fee 25,325 27,810 30,000 45,400 030-0000-353-04-15 Grease Trap Fee 34,600 35,000 39,400 40,500 030-0000-353-04-99 Miscellaneous 325 200 750 3,200 *CHARGES FOR SERVICE 28,928,774 32,250,396 28,772,310 35,646,018 030-0000-356.00-00 Interest Income 92,519 48,700 139,650 105,000 030-0000-356.06-00 Unrealized Capital Gain (12,665) *INTEREST 79,854 48,700 139,650 105,000 030-0000-358.07-00 Phone & Fax Reimbursement 425 3,680 3,557 030-0000-358.10-00 Recycle 85,185 135,000 103,000 106,000 030-0000-358.12-00 NSF Fees 9,075 8,300 8,360 9,000 030-0000-358.15-00 Sale of Property 60,317 9,000 9,000 9,000 030-0000-358.16-00 Cash Short/Over 92 030-0000-358.98-00 Reimbursements 413 030-0000-358.99-00 Miscellaneous 118,959 105,500 100,000 105,000 *MISCELLANEOUS 274,466 257,800 224,040 232,557 030-0000-359.11-00 From Fund 42 1,568,733 1,709,713 1,709,713 1,674,203 030-0000-359.12-00 From Fund 44 624,612 623,018 623,018 670,416 030-0000-359.23-00 From Fund 67 55,000 030-0000-359.99-00 From Fund 10 235,491 235,491 235,491 238,081 *INTERFUND TRANSFERS 2,483,836 2,568,222 2,568,222 2,582,700 030-0000-360-03-00 Capital Lease Proceeds 458,000 458,000 *CAPITAL PROCEEDS 458,000 458,000 TOTAL 31,766,930 35,583,118 32,162,222 38,566,275 FY 2016 ADOPTED BUDGET WATER & SEWER FUND REVENUES 164 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENSES BY DEPT/DIVISION Actual Budget Projection Budget Public Works Operations Administration 558,545 553,840 568,079 Lift Stations 1,106,723 1,648,469 1,627,853 1,398,412 Wastewater Treatment 4,712,630 4,443,956 4,609,472 4,614,742 Water Production 7,004,756 9,274,610 8,417,459 7,982,126 Distribution & Collection 2,100,910 2,676,461 2,459,381 2,023,112 Construction 934,080 982,718 875,280 733,434 Water Meter Services 1,443,783 1,406,761 1,583,527 ROW Mowing 486,625 378,567 439,456 Sub-Total Public Works 15,859,099 21,515,167 20,328,613 19,342,888 Utility Customer Services 1,779,110 1,353,777 1,090,447 1,173,683 Information Systems - GIS 234,138 171,416 128,755 175,429 Other Requirements 12,069,952 14,797,134 14,047,781 17,730,759 WATER & SEWER FUND TOTAL 29,942,299 37,837,494 35,595,596 38,422,759 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENSES BY CATEGORY Actual Budget Projection Budget Salaries & Wages 5,515,437 6,228,377 5,821,966 6,451,789 Materials & Supplies 5,676,476 6,831,180 6,383,973 6,645,763 Building Maintenance 122,972 82,350 86,787 94,621 Equipment Maintenance 1,895,121 2,281,661 2,258,175 1,722,494 Miscellaneous Services 4,404,470 5,565,464 5,183,078 5,167,230 Inventory 124,597 71,445 62,345 24,200 Transfers/Other Charges 11,815,247 13,705,706 13,838,630 17,478,662 Capital Outlay 387,979 3,071,311 1,960,642 838,000 WATER & SEWER FUND TOTAL 29,942,299 37,837,494 35,595,596 38,422,759 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted STAFFING BY DEPT/DIVISION Actual Budget*Projection Budget Public Works Operations Administration 7.33 7.33 7.33 Lift Stations 10.0 7.0 7.0 7.0 Wastewater Treatment 14.75 15.0 15.0 15.0 Water Production 15.0 15.0 15.0 15.0 Distribution & Collection 27.5 23.0 23.0 23.0 Construction 13.0 9.0 9.0 9.0 Water Meter Services 7.0 7.0 7.0 ROW Mowing 7.0 7.0 7.0 Sub-Total Public Works 80.25 90.33 90.33 90.33 Information Systems - GIS 4.0 3.0 3.0 3.0 Utility Customer Services 22.0 15.0 15.0 15.0 WATER & SEWER FUND TOTAL 106.25 108.33 108.33 108.33 *Same as adopted budget, unless where noted. ENTERPRISE (WATER & SEWER) FUND - 30 EXPENSE AND STAFFING SUMMARY FY 2016 ADOPTED BUDGET 165 *Director of Public Works reports to the Assistant City Manager Positions are budgeted at 75% in the Water & Sewer Fund Utility Customer Service organization is shown in General Government, Finance Department Information Systems-GIS organization is shown in General Government, Information Systems PUBLIC WORKS WATER & SEWER ORGANIZATION MaintenanceSupervisor (2)Distribution &CollectionHeavy EquipmentOperatorCCTV TechnicianMaintenanceCrew Leader (6)Utility MaintenanceWorker (12)MaintenanceSupervisorW&S ConstructionMaintenanceCrew LeaderUtility MaintenanceWorker (7)Heavy EquipmentOperatorUtility MeterField ServiceTechnician LeadSuperintendentTreatment PlantWater ProductionUtility MaintenanceWorker (2)SuperintendentTreatment PlantLift Stations &WastewaterTreatmentTreatment PlantSupervisorTreatment PlantOperator (11)SuperintendentWater & SewerDistribution &Collection,W&S Construction,Utility Meter ServiceUtility InspectorMaintenanceSupervisorUtility MaintenanceTechnician (2)Utility MaintenanceWorker (3)Utility MeterField ServiceTechnician (6)Directorof Public Works*Assistant Directorof Public Works*Customer ServiceRepresentative*(3)AdministrativeAssistant*OfficeSupervisor*Treatment PlantSupervisorW&S ProductionTreatment PlantOperator (10)W&S Production166 PUBLIC WORKS - UTILITIES – 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 W orks Water and Sewer Right of Way Mowing. These divisions manage all water facilities, including, but not limited to 73 lift stations and 5 treatment plants. In addition to managing the above, the Lift Station division oversees the odor control operation and provides troubleshooting and programming to the SCADA system for this division. The Wastewater Treatment division provides sludge disposal services, laboratory testing, compliance documentation and reporting to maintain compliance with TCEQ regulations, and general plant maintenance and repairs. Water Production 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. STRATEGIC COUNCIL PRIORITIES: The Water-Sewer Fund provides additional support for Public Works functions of government for the City, and are designed to support the installation, maintenance and improvement of drainage, water production and treatment, and other similar public goods in ways that deliver citizens Sustainable Infrastructure. Key Budget Items for FY 2016 Include: ♦ Replace seven F150 pickups - $175,000 ♦ Replace two Ford Rangers with two F150 pickups- $50,000 ♦ Chemical feeder - $25,000 ♦ Water facility restroom at 518 water facility- $15,000 ♦ Chemical containment walls (13) - $350,000 ♦ Reduced pigging of water lines in FY 2016 - ($240,000) ♦ Reduced interior lining in FY 2016 - ($200,000) ♦ Meter testing - $50,356 ♦ Two 6" meters - $24,077 ♦ RD 7000 plus line locator - $8,000 ♦ Rate Model Update - $70,000 ♦ ERP – W/S Prorata share, year 2 - $350,180 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. ♦ 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 2015 ACCOMPLISHMENTS ♦ Integrated Meter Services divisions into Public Works Department. ♦ Installed 350 feet of sewer gravity main and two manholes on McLean Road. ♦ Completed installation of 3,500 feet of new 6 inch water line, 7 fire hydrants, and 74 services in Linwood Oaks subdivision. ♦ Installed 350 feet of 16 inch water line offset on Dixie Farm Road and Pearland Parkway. ♦ Completed rehabilitation of Walnut lift station. 167 69% 68% 73% 64% 60% 65% 70% 75% 80% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Ratings of Drinking Water 83% 84% 86% 80% 75% 80% 85% 90% 2009 2011 2013 2015 Citizen Survey Ratings Good to Excellent Ratings of Sewer Services PUBLIC WORKS - UTILITIES – 4020-4080 FISCAL YEAR 2016 OBJECTIVES ♦ Continue to identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace or repair those lines as resources allow. ♦ Install vacuum chemical feeder at 521 water production facility. ♦ Build new compliant containment walls for chemical tanks at all water facilities. ♦ Internally rehab a bolted ground water storage tanks at the Garden Road water facility. ♦ Internally rehab two welded ground water storage tanks, one at Kirby Drive water facility, and the other at the Magnolia water facility. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Wastewater gallons treated in billion gallons 2.530 2.493 3.331 3.925 Cost per gallon to treat wastewater $0.0015 $0.0015 $0.0014 $0.0015 Water main installation (feet) 5,328 1,615 4,650 8,600 Sewer main installation (feet) 0 0 350 0 Cost per gallon of water purchased $0.0043 $0.0023 $0.0019 $0.0020 Percent of time Waste Water Treatment Plant over capacity 58% 61% 71% 63% 2,858 2,470 2,107 2,100 1,805 2,133 2,484 2,400 0 500 1000 1500 2000 2500 3000 3500 2013 2014 2015 Projection 2016 Targetgallons in millions Water Produced and Water Purchased Water Produced Water Purchased 168 FINANCE UTILITY CUSTOMER SERVICES – 4145 OVERVIEW Utility Customer Services (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. STRATEGIC COUNCIL PRIORITY: The collection and management of payments from residential and business customers that receive utility services from the City are handled in ways that meet the City’s general principles of financial accountability and transparency, for a Fiscally Responsible Government. Key Budget Items for FY 2016 Include: ♦ Increase of utility rate based on rate model calculations for fiscal year 2016. GOALS ♦ Collaborate with other City departments to ensure 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 low delinquency rate through service disconnection and collection policies. ♦ Provide excellent customer service to internal and external customers. ♦ Update and maintain City of Pearland Utility Billing web information. ♦ Identify missing waste accounts for customers receiving services for the purpose of creating necessary billing accounts and initiating proper billing mechanisms. ♦ Collaborate with commercial customers and contract waste management partner to prevent contaminants from entering local recycling efforts. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Full transition of Field Service Technicians to Public Works Department according to the City’s 2014-15 departmental restructuring plan. ♦ Increased customer E-payments by 31% percent over 2013. ♦ Increased paperless records management practices through electronic conversion of H.T.E. reports. ♦ Collaboratively developed and implemented with waste contractor a City-wide waste services reroute plan. ♦ Audited and corrected all MUD 18 accounts to ensure correct billing of MUD fees. ♦ Recovered approximately $11K of $48K of outstanding delinquent garbage debt owed to the City ♦ Lowered number of service disconnections for delinquent accounts. FISCAL YEAR 2016 OBJECTIVES ♦ Implement 16% revenue increase through newly adopted utility rate. ♦ Work with waste service contractor to improve consistent service performance for residents and customers. ♦ Increase messaging to customers relating to services and topics of interest provided by W ater Billing & Collections Department. ♦ Refresh staff training of customer service through introduction and reinforcement of “The Pearland Way.” ♦ Prepare process documentation and system account clean-up for ERP Implementation on January 1, 2016, with plans for full “go live” conversion to New World Systems by October 1, 2016. PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Projection FY 2016 Target Annual meter reads 403,220 414,449 430,000 454,000 Percent of payments processed on-line 43% 45% 50% 55% Number of cut-offs 1,906 1,061 1,000 900 169 Year Principal Interest Total Year Principal Interest Total 2015-2016 3,920,000 4,626,828 8,546,828 2015-2016 1,560,000 427,900 1,987,900 2016-2017 4,090,000 4,470,633 8,560,633 2016-2017 2,415,000 344,000 2,759,000 2017-2018 4,250,000 4,313,430 8,563,430 2017-2018 2,515,000 232,188 2,747,188 2018-2019 4,425,000 4,147,309 8,572,309 2018-2019 365,000 171,700 536,700 2019-2020 4,610,000 3,973,586 8,583,586 2019-2020 370,000 157,000 527,000 2020-2021 4,870,000 3,784,576 8,654,576 2020-2021 370,000 142,200 512,200 2021-2022 5,080,000 3,576,639 8,656,639 2021-2022 385,000 127,100 512,100 2022-2023 5,305,000 3,360,039 8,665,039 2022-2023 395,000 111,500 506,500 2023-2024 4,485,000 3,132,788 7,617,788 2023-2024 1,480,000 74,000 1,554,000 2024-2025 4,750,000 2,926,093 7,676,093 2024-2025 1,480,000 22,200 1,502,200 2025-2026 6,485,000 2,702,368 9,187,368 2025-2026 - 2026-2027 6,795,000 2,392,905 9,187,905 2026-2027 2027-2028 7,130,000 2,068,194 9,198,194 2027-2028 2028-2029 7,465,000 1,742,731 9,207,731 2028-2029 2029-2030 7,780,000 1,435,194 9,215,194 2029-2030 2030-2031 8,105,000 1,112,813 9,217,813 2030-2031 2031-2032 4,155,000 776,163 4,931,163 2031-2032 2032-2033 4,365,000 580,469 4,945,469 2032-2033 2033-2034 4,570,000 384,331 4,954,331 2033-2034 2034-2035 1,700,000 178,431 1,878,431 2034-2035 2035-2036 895,000 110,063 1,005,063 2035-2036 2036-2037 935,000 78,306 1,013,306 2036-2037 2037-2038 605,000 45,131 650,131 2037-2038 2038-2039 640,000 23,200 663,200 2038-2039 TOTAL 107,410,000 51,942,217 159,352,217 TOTAL 11,335,000 1,809,788 13,144,788 Principal Amount Series Name Outstanding General Obligation Improvement and Refunding Bonds 2009* 5,440,000 Water & Sewer Revenue Bonds Series 1999 2,445,000 Water & Sewer Revenue Bonds Series 2006 9,460,000 Water & Sewer Revenue Bonds Series 2007 34,740,000 Water & Sewer Revenue Bonds Series 2008 13,415,000 Water & Sewer Revenue Bonds Series 2009 10,955,000 Water & Sewer Revenue Bonds Series 2010A 12,100,000 Water & Sewer Refunding Bonds Series 2010B 7,520,000 Permanent Improvement Refunding Bonds Series 2012*5,895,000 Water & Sewer Revenue Bonds Series 2012 7,715,000 Water & Sewer Revenue Bonds Series 2014 9,060,000 TOTAL 118,745,000 **Does not include new debt anticipated to be issued in fiscal year 2016 or in the future. Fiscal year 2016 anticipates a Texas Water Development Board financing of $55 million and a Water & Sewer Revenue Bond in the amount of $4.8 million. ENTERPRISE FUND DEBT MATURITY SCHEDULE FY 2016 ADOPTED BUDGET ENTERPRISE FUND DEBT REVENUE BONDS GENERAL OBLIGATION & REFUNDING SERIES * Excluding portion associated with General Fund 170 Note: Does not include new debt anticipated to be issued. ENTERPRISE FUND DEBT TO MATURITY FY 2016 ADOPTED BUDGET $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 REVENUE BONDS Principal Interest $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GENERAL OBLIGATION Principal Interest 171 AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/16 3/1/2016 Series 1999 Revenue Bond 4,000,000 0 56,235 56,235 9/1/2016 145,000 56,235 201,235 Fiscal Year Total 145,000 112,470 257,470 2,300,000 3/1/2016 Series 2006 Revenue Bond 13,845,000 0 233,784 233,784 9/1/2016 745,000 233,785 978,785 Fiscal Year Total 745,000 467,569 1,212,569 8,715,000 3/1/2016 Series 2007 Revenue Bond 40,135,000 783,168 783,168 9/1/2016 1,010,000 783,169 1,793,169 Fiscal Year Total 1,010,000 1,566,337 2,576,337 33,730,000 3/1/2016 Series 2008 Revenue Bond 14,950,000 314,420 314,420 9/1/2016 290,000 314,420 604,420 Fiscal Year Total 290,000 628,840 918,840 13,125,000 3/1/2016 Series 2009 Permanent Improvement 11,660,000 1,220,000 114,388 1,334,388 9/1/2016 and Refunding Bonds*97,613 97,613 Fiscal Year Total 1,220,000 212,000 1,432,000 4,220,000 3/1/2016 Series 2009 Revenue Bond 13,130,000 267,906 267,906 9/1/2016 400,000 267,906 667,906 Fiscal Year Total 400,000 535,813 935,813 10,555,000 3/1/2016 Series 2010A Revenue Bond 14,040,000 245,241 245,241 9/1/2016 410,000 245,241 655,241 Fiscal Year Total 410,000 490,481 900,481 11,690,000 3/1/2016 Series 2010B Refunding Bond 8,970,000 141,222 141,222 9/1/2016 370,000 141,222 511,222 Fiscal Year Total 370,000 282,444 652,444 7,150,000 3/1/2016 Permanent Improvement and 6,230,000 340,000 112,200 452,200 9/1/2016 Refunding Bond Series 2012*103,700 103,700 Fiscal Year Total 340,000 215,900 555,900 5,555,000 3/1/2016 Series 2012 Revenue Bond 8,670,000 109,128 109,128 9/1/2016 355,000 109,128 464,128 Fiscal Year Total 355,000 218,255 573,255 7,360,000 3/1/2016 Series 2014 Revenue Bond 9,210,000 162,309 162,309 9/1/2016 195,000 162,309 357,309 Fiscal Year Total 195,000 324,619 519,619 8,865,000 TOTAL 144,840,000 5,480,000 5,054,728 10,534,728 113,265,000 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET *Excludes General Fund Component Does not include new debt anticipated to be issued. 172 Description Rate Date Issued Maturity Amount Issued Amount Outstanding As Of 9/30/16 Annual Requirements Water & Sewer 4.60%1999 4,000,000 2,300,000 3/1/2016 56,235 Interest Revenue Bond 2020 9/1/2016 56,235 Interest Series 1999 9/1/2016 145,000 Principal Water & Sewer 4.5%,4.3%,4.375%,4.625%2006 13,845,000 8,715,000 3/1/2016 233,784 Interest Revenue Bond 4.75%,5.00%,5.125%2031 9/1/2016 233,785 Interest Series 2006 4.88%9/1/2016 745,000 Principal Water & Sewer 5.5%, 5.25%, 5%, 4.5%2007 40,135,000 33,730,000 3/1/2016 783,168 Interest Revenue Bond 3.5%,4.48%2031 9/1/2016 783,169 Interest Series 2007 9/1/2016 1,010,000 Principal Permanent Imp 2.00%, 2.50%, 2.75%2009 11,660,000 4,220,000 3/1/2016 114,388 Interest and Refunding 5.%,4.%2018 3/1/2016 1,220,000 Principal Bonds 2009*9/1/2016 97,613 Interest Water & Sewer 3.25%,4.125%,4.2%, 4.5%2008 14,950,000 13,125,000 3/1/2016 314,420 Interest Revenue Bond 4.3%,5%,4.67%2034 9/1/2016 314,420 Interest Series 2008 9/1/2016 290,000 Principal Water & Sewer 1.6%,2.05%,2.13%,2.45%2009 13,130,000 10,555,000 3/1/2016 267,906 Interest Revenue Bond 2.64%,2.86%,3.08%,3.35%2034 9/1/2016 267,906 Interest Series 2009 3.60%,3.85%,4.10%,4.45%9/1/2016 400,000 Principal 4.65%,4.81%,5.00% 5.07%,5.23%,5.27%,5.39% 5.45%,5.60%,5.64%,4.9% Water & Sewer 1.75%,2.0%,2.50%,3.0%2010 14,040,000 11,690,000 3/1/2016 245,241 Interest Revenue Bond 3.13%,3.25%,3.50,4.00%2035 9/1/2016 245,241 Interest Series 2010A 4.250%, 4.375%, 4.500%9/1/2016 410,000 Principal 4.08% Water & Sewer 1.75%,2.00%,2.50%,3.00%2011 8,970,000 7,150,000 3/1/2016 141,222 Interest Refunding Bond 3.13%,3.25%,3.50,4.00%2023 9/1/2016 141,222 Interest Series 2010B 4.13%,4.25%,4.38%,4.50%9/1/2016 370,000 Principal 3.69% Per. Improv. &3.0%,4.0%,5.0%,3.72%2012 6,230,000 5,555,000 3/1/2016 112,200 Interest Refunding Bond 2025 9/1/2016 103,700 Interest Series 2012*9/1/2016 340,000 Principal Water & Sewer 2.00%, 3.00%, 3.10%2012 8,670,000 7,360,000 3/1/2016 109,128 Interest Revenue Bond 3.25%, 3.375%, 3.5%,2037 9/1/2016 109,128 Interest Series 2012 3.625%,3.07%9/1/2016 355,000 Principal Water & Sewer 2.0%, 3.0%, 3.125%, 2014 9,210,000 3/1/2016 162,309 Interest Revenue Bond 3.250%, 3.375%, 3.50%, 2039 9/1/2016 162,309 Interest Series 2014 3.625%, 4.0%9/1/2016 195,000 Principal TOTAL 144,840,000 104,400,000 10,534,728 *Excludes General Fund Component Does not include new debt anticipated to be issued. ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2016 ADOPTED BUDGET 173 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES Charges for Services $6,974,338 $6,603,258 $6,675,565 $6,818,144 Miscellaneous 34,135 12,731 35,376 10,958 Interest Income 1,235 660 1,895 1,895 TOTAL 7,009,708 6,616,649 6,712,836 6,830,997 OPERATING EXPENSES Miscellaneous Services 6,648,745 6,603,258 6,702,753 6,818,144 Other Expenses 14,818 13,320 13,320 Infer-fund Transfers 146,794 340,000 TOTAL 6,810,357 6,603,258 7,056,073 6,831,464 199,351 13,391 (343,237)(467) BEGINNING CASH EQUIVALENTS 212,401 411,752 411,752 68,515 ENDING CASH EQUIVALENTS $411,752 $425,143 $68,515 $68,048 REVENUES OVER (UNDER) EXPENSES 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,with an amendment in December 2013, and expiring September 30, 2021.The contract allows for service rates to adjust annually to the reported Consumer Price Index for the Houston MSA and allows for quarterly rate adjustments based on diesel fuel prices, up or down. The fiscal year 2015 projection is based on a current rate of $17.64 per household per month from October through December, $17.48 from January through March, $17.32 from April through June and back up to $17.48 from July through September pursuant to quarterly fuel adjustments provided for in the Waste Management contract. The fiscal year 2016 budget assumes no change to the base rate effective October 2015, based on CPI in April 2015, and includes growth in the customer base of 75 to 95 new units per month. No rate adjustments for fuel are included. SOLID WASTE FUND - 31 SUMMARY OF REVENUES, EXPENSES AND FUND BALANCE FY 2016 ADOPTED BUDGET 174 3,382 2,914 2,590 3,000 2000 2200 2400 2600 2800 3000 3200 3400 3600 2013 2014 2015 Projection 2016 Target Tons of Curbside Green Waste Recycled 68,164 70,757 70,680 74,750 60000 62000 64000 66000 68000 70000 72000 74000 76000 2013 2014 2015 Projection 2016 Target Tons of Solid Waste Land-Filled SOLID WASTE - FUND 31 GOALS ♦ Provide consistent, high-quality solid and green waste collection and disposal services to residents and commercial businesses within the City of Pearland. ♦ Provide public education and awareness to residents and businesses as necessary. ♦ Provide proactive client notification of changes that affect customer services to City designee. ♦ Continuously improve customer service by promoting a customer-focused culture that is directly responsive to the residents of the City of Pearland. ♦ Ensure the City’s contractor has corporate resources and equipment are in proper working order and are in sufficient quantity to manage daily operational deliverables. FISCAL YEAR 2015 ACCOMPLISHMENTS ♦ Developed collaborative plan to reroute the collection of residential and commercial recycling, as well as solid and green waste to improve overall performance in the City. ♦ Updated and replaced commercial recycling containers for local businesses with those that have external descriptions of proper use to avoid contamination with solid and/or green waste. FISCAL YEAR 2016 OBJECTIVES ♦ Improve communication protocols to ensure completion of routes by deadlines. ♦ Discontinue service to customers with payment and account delinquencies. ♦ Field recycling services out to the Keep Pearland Beautiful non-profit organization. Citizen Survey Results Good to Excellent Rating – Garbage Collection and Recycling 2009 2011 2013 2015 Garbage Collection 88% 88% 89% 89% Recycling 89% 88% 87% 85% 175 THIS PAGE INTENTIONALLY BLANK 176 *$13.44 million is in reserves. Capital Project Funds are created to account for the acquisition or construction of major capital activities. Funding is provided through the issuance of debt, developer fees,state and federal funding, user fees, general fund and utility revenues, and interest income. The City maximizes every source of funding available and is constantly looking at leveraging funding through the use of federal,state and county dollars. The City has received HGAC TIP funding in the amount of $69 million for improvements to several streets over the next few years and has submitted projects for consideration and funding in the amount of $60,522,356 for the 2015 to 2019 call for projects. 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 (2016-2020) totaling $481 million.The Five- Year CIP completes the 2007 bond referendum in 2019. New/proposed capital needs in the amount of $100,659,864 have been identified, excluding potential projects that would arise from the completion of master plans,such as the parks master plan, the drainage master plan, the facilities assessment study or potential transportation improvement plan opportunities. Keeping with Council's direction to have a manageable program that can be reasonably completed within a three to five year time period, the City has prioritized projects and has capped the next bond referendum at $70,378,613,which is used in the Five-Year CIP and forecast. The first year of the Five-Year Capital Improvement Program is incorporated into the annual budget to appropriate funds. Capital projects for fiscal year 2015-2016 total $117,284,938, excluding transfers and bond issuance costs. CAPITAL PROJECT FUNDS FY 2016 ADOPTED BUDGET General Revenue - Cash, $12.62 Certificates of Obligation, $21.82 General Obligation Bonds, $27.44 W/S Revenue Bonds, $0.50 System Revenues - Cash, $0.29 Impact Fees - Cash, $20.92 Impact Fees - Debt, $47.13 Fiscal Year 2015-2016 CIP Funding Sources ($ in millions) Water/Sewer, $40.30 Facilities, $13.79 Drainage, $1.30 Streets, $52.11 Parks, $9.78 Fiscal Year 2015-2016 CIP* Uses by Project Type ($ in millions) 177 Water/Sewer projects total $40.3 million, or 34.4%, of the capital improvement program. Major projects include the relocation of utilities to allow for the construction of SH 288 Toll Lanes, installation of approximately 7,500 feet of 16″ waterline along Almeda Rd from Broadway to Mooring Point, design of a waterline extension along McHard Road, installation of approximately 3,000 LF of 12″ waterline along Hughes Ranch Road from CR 94 to Cullen Parkway, design of underground piping infrastructure at water production facilities, replacement of transite waterline pipe throughout the city, preliminary engineering report for the construction of a 10 MGD surface water treatment plant, oversizing of the Riverstone Ranch development’s sewer infrastructure, expansion of the Reflection Bay Water Reclamation facility by 4 MGD, installation of the McHard Road Trunk Sewer from Garden to Southdown WWTP, and preliminary engineering for the expansion of the Barry Rose WWTP from 3.1 MGD to 4.5 MGD. Street projects total $52.1 million, or 44.4%, of the total and include funding for the right-of-way and design of a 3.5 mile extension of McHard Road from Mykawa Road to Cullen Parkway, improvements to Bailey Road to a 4- 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 widening of Max Road from the future Hughes Ranch alignment and connecting with Reid Boulevard and the reconstruction of Hughes Ranch Road (CR 403) from Cullen to Smith Ranch Road from a 2-lane asphalt open ditch roadway to a 4-lane concrete curb and gutter boulevard. Fite Road will be extended approximately 2,500 feet east of McLean, running adjacent to Centennial Park and Old Alvin Road will be designed for widening from Plum Street to McHard Road from a 2-lane asphalt to a 4-lane undivided curb and gutter roadway. McHard, Fite, Max and Bailey are 80% funded by HGAC TIP funds and Hughes Ranch Road has been submitted for consideration of HGAC TIP funds. Facilities total $13.8 million, or 11.8%, and include $5,245,081 for the remodel of approximately 50,910 square feet of space in the City Hall Complex. Funding will support the renovation to better accommodate departmental staff at City Hall and in the Community Center for growth, efficiencies and safety. In addition, construction for a new 10,000 – 12,000 square foot office facility at the Orange Street Service Center and the expansion of the Tom Reid Library by approximately 8,174 square feet are also included. Also, the City will begin design of the relocation of Fire Station 1. Drainage projects to be $1.3 million, or 1.1%, of the total and include $600,800 for design and land acquisition 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 the land acquisition and engineering for Cullen/FM 518 detention pond is also included this year. Parks projects total $9.8 million, or 8.3%, 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 2 new lighted softball fields, the installation of a new picnic pavilion, and additional parking. Funding is included for the construction of 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 the extension of the Shadow Creek Ranch Trail from east of Kirby Drive to Shadow Creek Ranch Park. The construction 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 construction on a building to demonstrate/program environmental educational displays, demonstration gardens, interpretive exhibits, restrooms, a classroom with a 50 seat capacity, 400 sq. ft. of storage and pervious parking areas. For the Water/Sewer component, the City anticipates two bond sales, one totaling $4.84 million to fund infrastructure improvements in the capital improvement program, and the second is TWDB financing in the amount of $55 million for the Reflection Bay Reclamation Facility Expansion for 2016 and 2017 construction expense. For the remaining $77.0 million, the City anticipates selling $21.8 million in GO Bonds approved by the voters in 2007 and selling Certificates of Obligation in the amount of $12.6 million mainly for facility projects not anticipated with the 2007 bond referendum but needed for Public Safety (Fire Station #1), Public Works, Library and City Hall. A total of $22.4 million will come from HGAC Transportation Improvement Program funds and developer contributions, mainly for street projects, and an additional $14.6 was submitted for consideration of HGAC Transportation Improvement funds. Cash and future bonds proceeds make up the remaining sources. 178 CAPITAL PROJECT FUNDS SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES FY 2016 ADOPTED BUDGET Fund 050 Fund 068 Fund 203 Total Revenues: Interest Income 4,000 4,500 40,000 48,500 Bond Proceeds 12,303,760 22,825,864 35,129,624 Impact Fees Miscellaneous Intergovernmental 2,743,963 5,244,788 34,796,437 42,785,188 Transfers In 402,014 1,251,000 1,653,014 Total Revenues 2,747,963 17,955,062 58,913,301 79,616,326 Expenditures: Drainage 1,300,800 1,300,800 Parks 5,257,571 4,524,925 9,782,496 Facilities 10,685,256 3,108,225 13,793,481 Streets 375,000 1,477,952 49,887,050 51,740,002 Water Sewer Total Projects 375,000 17,420,779 58,821,000 76,616,779 Issuance Costs 258,000 430,000 688,000 Other Non-Operating 2,112,973 2,112,973 Transfers Out 302,995 320,558 616,055 1,239,608 Total Non-Operating 2,415,968 578,558 1,046,055 4,040,581 Total Expenditures 2,790,968 17,999,337 59,867,055 80,657,360 Revenues Over/ (Under) Expenditures (43,005)(44,275)(953,754)(1,041,034) BEGINNING BALANCE 375,626 92,458 1,450,521 1,918,605 Reserved ENDING BALANCE 332,621$ 48,183$ 496,767$ 877,571$ Governmental Fund Note- Each fund may have different restrictions or assignments based on funding source, therefore ending balances may not be available for other purposes. 179 CAPITAL PROJECT FUNDS SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES FY 2016 ADOPTED BUDGET Fund 042 Fund 044 Fund 067 Fund 301 Fund 302 Total GRAND TOTAL Revenues: Interest Income 45,000 8,000 14,872 3,300 1,000 71,172 119,672 Bond Proceeds 48,758,055 1,190,260 49,948,315 85,077,939 Impact Fees 3,508,278 882,270 4,390,548 4,390,548 Miscellaneous Intergovernmental 42,785,188 Transfers In 827,560 500,000 1,327,560 2,980,574 Total Revenues 52,311,333 890,270 2,032,692 503,300 1,000 55,738,595 135,354,921 Expenditures: Drainage 1,300,800 Parks 9,782,496 Facilities 13,793,481 Streets 371,037 371,037 52,111,039 Water 2,331,110 749,460 550,000 3,630,570 3,630,570 Sewer 34,614,000 1,802,552 250,000 36,666,552 36,666,552 Total Projects 36,945,110 2,552,012 800,000 371,037 40,668,159 117,284,938 Issuance Costs 1,107,500 1,107,500 1,795,500 Other Non-Operating 2,112,973 Transfers Out 1,968,242 670,416 196,863 468,700 400,000 3,704,221 4,943,829 Total Non-Operating 3,075,742 670,416 196,863 468,700 400,000 4,811,721 8,852,302 Total Expenditures 40,020,852 670,416 2,748,875 1,268,700 771,037 45,479,880 126,137,240 Revenues Over/ (Under) Expenditures 12,290,481 219,854 (716,183)(765,400)(770,037)10,258,715 9,217,681 BEGINNING BALANCE 7,385,443 923,912 859,207 1,114,453 770,037 11,053,052 12,971,657 Reserved 13,700,000 13,700,000 13,700,000 ENDING BALANCE 5,975,924$ 1,143,766$ 143,024$ 349,053$ -$ 7,611,767$ 8,489,338$ Enterprise Fund Note- Each fund may have different restrictions or assignments based on funding source, therefore ending balances may not be available for other purposes. 180 Project #Project Name Project Description Drainage Projects DR 1103 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,808,000 $700,000 $0 $0 $0 $0 $0 DR 1302 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $3,795,434 $600,800 $0 $0 $0 $0 $0 Drainage Total 2016 Budget Budget 2016 2017 2018 2019 2020 $8,603,434 $1,300,800 $0 $0 $0 $0 $0 O & M Impact O & M Impact The City's Sub-Regional Detention Master Plan identified the southwest quadrant of FM 518/ Cullen Parkway as a potential location for a sub- regional detention pond.The pond would be constructed in phases with developer contributing land or excavation.This 1st phase includes minor ROW acquisition, existing ditch improvements and possible underground storm sewer improvements.Ultimate service area is approximately 265 acres. SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET O & M Impact Old Townsite Drainage 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. Cullen/FM 518 Detention Pond 181 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET Parks Projects P20001 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $3,638,510 $1,906,803 $0 $27,890 $57,582 $59,445 $61,371 P20004 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $2,308,653 $790,122 $0 $0 $185,849 $284,116 $294,679 P50071 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $2,766,295 $1,828,000 $56,966 $76,045 $76,118 $76,118 $76,118 PK1401 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,935,458 $1,624,755 $0 $4,379 $6,130 $6,436 $6,758 PK1402 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,173,936 $3,632,816 $0 $3,077 $6,461 $6,784 $7,123 Parks Total 2016 Budget Budget 2016 2017 2018 2019 2020 $14,822,852 $9,782,496 $56,966 $111,391 $332,140 $432,899 $446,049 Green Tee Terrace Trail Extension of a 10-foot hike and bike trail 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. O & M Impact O & M Impact Centennial Park Ph II 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. O & M Impact Shadow Creek Ranch Trail Construction of a 10 ft.wide hike and bike trail along the southern bank of Clear Creek beginning on the east side of Kingsley Drive and extending east approximately 1,300 ft.terminating at Kirby Drive.Project will include shaded seating areas, bike facilities,educational and/or themed signage and may include improvements to the existing trail head parking area. O & M Impact Phase I improvements include a reorientation of the entry into the park, relocation and replacement of the existing playground, improvements to electrical &lighting along with minor architectural details in the existing pavilion, blast and repaint basketball court,the construction of additional parking,a small stage and sloped earthen berm type amphitheater for special events and landscaping. Independence Park Ph I O & M Impact Delores Fenwick Nature Center The project will include a building to demonstrate/program environmental educational displays, demonstration gardens, interpretive exhibits,offices, restrooms,a classroom with a 50 seat capacity, 400 sq.ft.of storage and pervious parking areas. O & M Impact 182 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET Facility Projects F20002 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,695,335 $4,343,300 $0 $90,382 $90,382 $90,382 $90,382 FA0904 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $5,885,477 $5,245,081 $0 $0 $0 $0 $0 FA1404 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,229,000 $3,800,100 $0 $0 $0 $0 $0 FA1602 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,183,000 $405,000 $0 $0 $78,284 $81,504 $92,264 Facility Total 2016 Budget Budget 2016 2017 2018 2019 2020 $18,992,812 $13,793,481 $0 $90,382 $168,666 $171,886 $182,646 O & M Impact Fire Station #1 Construction of approximately 8,500 sq.ft. station to house one 4-person Engine Crew and one 2-person EMS Ambulance Crew.Station will include 6 dorm rooms,2 restrooms with showers,a kitchen dining area,a dayroom, a station command office,and exercise room. Equipment area will consist of 2-80 ft.deep drive-thru apparatus bays, bunker gear and medical supply storage areas, and an EMS decontamination area.Facility will be located on McHard Road near Pearland Parkway on City owned land.The building will be designed to add a third 80-ft. deep apparatus bay in the future. O & M Impact O & M Impact O & M Impact City Hall Complex Renovations The existing Community Center was constructed in 1983 and City Hall in 1986. Departmental Space Programming was completed in 2014.This program incorporates the remodel of approximately 23,110 sq.ft.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 sq.ft.in City Hall,the replacement of HVAC systems, modifications to the Council Chambers, Administration,City Secretary, Legal,HR and Receptionist spaces, and includes security and safety (exterior lighting) improvements for both buildings. O & M Impact Orange Street Service Center Phase 1 of the project will consist of a new 10-12,000 sq.ft. office facility to house an estimated 150 staff to include the Assistant City Manager, Public Works Administration, Engineering and Projects Department.This building will replace the existing office area that was built before windstorm requirements and no longer can meet many of the current life safety and ADA codes.This phase will also structurally upgrade and remodel one or more of the existing out-buildings to provide a new lunch room/kitchen/training, area locker rooms and showers, and crew support facility. Tom Reid Library Expansion The library expansion will increase the now 20,584 sf building by 8,174 sf for an overall floor plan area of 28,758 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. Additional scope includes replacement of three existing HVAC units and replacement of the entire roof. 183 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET Streets Projects T08002 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $33,311,733 $18,244,345 $0 $80,611 $84,642 $88,874 $93,318 T20002 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $12,196,089 $1,514,800 $0 $0 $0 $8,057 $32,226 TR1201 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $27,469,536 $17,344,591 $0 $14,447 $57,786 $57,786 $57,786 TR1202 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,951,662 $3,631,172 $8,240 $16,786 $17,625 $18,506 $19,432 TR1205 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $6,462,617 $1,550,000 $4,097 $28,231 $29,642 $31,124 $32,681 O & M Impact O & M Impact Fite Road Extension - Veterans to McLean An extension of Fite Road approximately 2,500 ft.east of McLean, running adjacent to Centennial Park,tying into Veterans Drive.The project includes 4 lanes, undivided, of concrete curb and gutter including storm sewers, outfalls and detention,a traffic signal at McLean Road and includes approximately 800 ft. of sound wall. O & M Impact Max Road Expansion - Hughes Ranch to Reid Blvd. Widen 3,700 LF of 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 4 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. O & M Impact Old Alvin Road Widening - Plum Street to McHard Road Reconstruction of approximately 1 mile of Old Alvin Rd from Plum St to McHard Rd from a 2-lane asphalt to a 4-lane undivided curb and gutter roadway. East side from McHard to Knapp to have 6 ft. sidewalks. O & M Impact Hughes Ranch Road (CR 403) - Cullen to Smith Ranch Road Reconstruction of CR403 from Cullen to Smith Ranch Road from a 2-lane asphalt open ditch roadway to a 4-lane concrete curb and gutter boulevard for a distance of 2 miles.Brown and Gay Engineering is currently completing construction plans. Environmental clearance issued 2011, currently acquiring right of way.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. Bailey Road - Veterans to FM1128 The extension of approximately 2.76 miles of 4-lane concrete curb and gutter divided boulevard with raised medians,curb and gutter, underground drainage, street lighting and landscaping from approximately 1,300 ft.west of FM 1128 to Veterans Drive.The project includes the full build out of the Bailey Intersection at FM1128. Detention has been provided in the Cowart's Creek Diversion project. 184 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET TR1402 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $3,501,904 $1,240,790 $0 $0 $0 $0 $0 TR1404 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $3,314,107 $1,066,260 $18,170 $25,438 $26,710 $28,045 $29,447 TR1405 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $42,708,789 $4,378,289 $0 $0 $0 $86,277 $103,533 TR1501 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $5,966,034 $916,803 $0 $0 $15,813 $33,208 $34,869 TR1601 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,787,000 $375,000 $0 $0 $0 $0 $0 O & M Impact Intersection Improvements With the continuous development driven evolution of traffic patterns and counts, intersections encounter increasing traffic flows than they were originally constructed to handle, increasing congestion and raising safety concerns. Intersections will be modified in design or signalization to address the rapidly changing traffic patterns as and where they occur, beginning with the Pearland Parkway-Boroadway intersection in 2016. O & M Impact O & M Impact McHard Road Extension (Mykawa Road to Cullen Parkway) The extension of approximately 3.5 miles of McHard Road,from Cullen Parkway to Mykawa Road, consisting of a 4-lane, concrete,curb and gutter, divided roadway with raised medians and underground drainage. Includes storm sewers, outfalls and detention,five traffic signals at secondary thoroughfares and major collectors, sidewalks, street lighting and landscaping.This project will be coordinated with the McHard Road Trunk Sewer extension and McHard Road Water Line Extension. O & M Impact Smith Ranch Road Extension (CR 94) - Hughes Ranch Road to Broadway Expansion of Smith Ranch Road from 2-lanes of asphalt into 4-lanes, divided,with raised medians, concrete curb and gutter,storm sewer, and landscaping.Project will include planning and construction of provisions for utility services along both sides of the right of way.Limits are from Hughes Ranch Road, south approximately 3,250 LF to 2,040 LF north of Broadway. 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. O & M Impact Kirby Drive Expansion - Boradway to CR 59 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 2 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 main will be extended approximately 800 ft. south to County Road 59. 185 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET TR1602 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $2,738,503 $1,477,952 $0 $0 $0 $0 $0 TR1603 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $371,037 $371,037 $0 $0 $0 $0 $0 Facility Total 2016 Budget Budget 2016 2017 2018 2019 2020 $144,779,011 $52,111,039 $30,507 $165,513 $232,218 $351,877 $403,292 O & M Impact West McHard Pedestrian Path Design and construction of an 8-ft.wide concrete pedestrian path along the north right of way from the Country Place Boulevard/McHard Road intersection approximately 3,250 ft. to the intersection of McHard Road and Country Place Parkway.This configuration will tie into existing pedestrian features at the traffic signals on both east and west ends. O & M Impact O & M Impact Safe Routes to School Improvements As identified in the Safe Routes to School Plan,sites may include the installation of sidewalks, drainage improvements, roadway widening, crosswalk enhancements/improvements and other traffic improvements. City staff has prioritized and produced cost estimates that include detailed scopes of work required and a project schedule. Improvements planned for Challenger Elementary,HC Carleston Elementary and Barbara Cockrell Elementary will be done with Hughes Ranch Rd project, if funded. 186 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET Water Projects WA1001 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,166,078 $50,000 $0 $0 $0 $0 $0 WA1501 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $789,460 $749,460 $0 $0 $0 $0 $0 WA1505 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,758,000 $1,546,110 $0 $0 $0 $0 $0 WA1601 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $5,936,480 $100,000 $0 $0 ($375,000)($750,000)($750,000) WA1602 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,201,000 $585,000 $0 $0 $0 $0 $0 WA1603 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,250,000 $250,000 $0 $0 $0 $0 $0 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. O & M Impact Toll Road Utility Relocations The project consists of relocating 600 LF of 16" water main by directional drill beneath the northern embankment for the FM518 overpass on SH288. At Smith Ranch approximately 1,330 ft.of 12"PVC water line will be relocated and placed in 18" steel casing.At this same location, approximately 970 ft.of 4"Force Main will be relocated by open cut and another 130 ft.by directional drill and placed in steel casing to allow for the installation of the T-Ramp. O & M Impact FM521 Waterline (Broadway to Mooring Pointer) 7,500 ft.of 16" water line along Almeda Rd from Broadway to Mooring Pointer. O & M Impact McHard Rd. 16" Waterline Phase II Phase II extends from Cullen Parkway to Mykawa a total of 17,340 LF.This portion of the project is timed to coincide with Right of Way approval and acquisition for the McHard Road project. O & M Impact Hughes Ranch Road West 12" Water Line Installation of approximately 3,000 LF of 12" water line along Hughes Ranch Road from CR 94 to Cullen Parkway.This water line connection will be done in coordination with the Hughes Ranch Road Expansion from CR 94 to Cullen Parkway.Infill of existing system 1,550 LF North Hampton to Brookney and 1,450 LF Smith to May Court. O & M Impact Underground Piping Infrastructure at Water Production Facilities This project will replace significant portions of the aging large diameter water conveyance pipe located at water production facilities.This project will inspect each facility and make recommendations for the design and replacement of failing piping within each facility. O & M Impact 187 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET WA1604 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $14,110,000 $250,000 $0 $0 $0 $0 $0 WA1605 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $88,915,000 $100,000 $0 $0 $0 $0 $0 Water Total 2016 Budget Budget 2016 2017 2018 2019 2020 $115,126,018 $3,630,570 $0 $0 ($375,000)($750,000)($750,000) Transite Pipe Water Line Replacement Replace approximately 50 miles of failing transite pipe water lines (over 30 years old)in the City with PVC water lines.The project will replace the water line infrastructure in the following locations over a period of years - Corrigan Subdivision,Old Towne, Summerset/Shrine, Country Place, Green Tee, Westminster, Brookside Acres,Shadycrest, Creek View,Parkview, Wood Creek, Heritage Green, Clear Creek Estates, Twin Creek Woods. O & M Impact Surface Water Plant Pilot testing, design, and construction of a 10 MGD Surface Water Treatment Plant that will treat raw water from the Gulf Coast Water Authority (GCWA)canal for distribution throughout the City’s water system. In addition,the project will include 24"transmission lines.A future phase will include an additional 10 MGD of capacity.The plant will be located on City property on CR48 south of CR59,which is adjacent to the GCWA canal.Pilot testing will begin in FY2017 followed by design and construction.The project is scheduled to be completed over a five-year period with new capacity available by 2022. O & M Impact O & M Impact 188 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET WasteWater Projects WW0901 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $713,609 $163,452 $0 ($12,300)($16,400)($16,400)($16,400) WW1201 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,582,776 $850,000 $0 $0 $0 $0 $0 WW1405 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $48,822,000 $29,814,000 $0 $0 $180,258 $240,344 $240,344 WW1406 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $5,641,161 $1,155,000 $0 $0 $0 $0 $0 WW1502 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $32,560,000 $300,000 $0 $0 $0 $42,060 $168,241 Riverstone Ranch Oversizing Oversizing of the Riverstone Ranch development's sewer infrastructure in order to incorporate into the City's larger system. O & M Impact Southdown (North Central) WWTP Rehabilitation - WWM Project 31A 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. O & M Impact Reflection Bay Water Reclamation Growth rates within the service area have increased both average daily flows and the biological loading contained in the plant’s influent requiring construction of a 4 MGD treatment capacity expansion.The project includes the design, permitting and construction upgrades of the lift station, headworks, addition of four continuous flow 1 MGD basins modifications to the existing basins to create two additional 1 MGD continuous flow basins, new filtration and UV disinfectant systems,expansion of the sludge holding tanks, addition of two belt press dewatering systems,a new non-potable water system and new SCADA control for a total plant capacity of 6 MGD. O & M Impact McHard Rd Trunk Sewer (Garden to Southdown WWTP) Install,along McHard Rd,approximately 4,500 ft.of 24" trunk sewer from Cullen to Southdown WWTP;5,800 ft.of 18" trunk sewer from Cullen to Max Road; and approximately 4,000 LF of 15" trunk sewer from Max Road to Garden Road. O & M Impact Barry Rose WWTP Expansion In 2015,staff will conduct a Preliminary Engineering Report to determine the specific design parameters required for the plant expansion, including volume and biological loading.In 2017, capacity expansion design will begin.In 2018,the package plant will be relocated to Barry Rose plant to ensure plant effluent remains within permit during the construction schedule.In 2020, construction of approximately a 2 MGD sequencing batch reactor plant will begin which will be a separate plant to be run in parallel with the existing plant, for a total capacity of 5 MGD. O & M Impact 189 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET WW1506 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $3,016,650 $440,800 $0 ($8,200)($8,200)($8,200)($8,200) WW1507 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $15,100,000 $250,000 $0 $0 $0 $0 $0 WW1601 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $1,175,200 $166,300 $0 ($4,100)($8,200)($8,200)($8,200) WW1602 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $4,487,720 $335,000 $0 ($2,050)($8,200)($8,200)($8,200) WW1603 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $36,718,300 $2,960,000 $0 $0 $80,115 $240,344 $240,344 WW1604 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $923,000 $182,000 $0 $0 $0 $0 $0 Lift Station Program FY16 -Convert the Springfield lift station into a manhole and gravity flow all wastewater 1,300 ft.south to the Park Village Lift station on the east side of McLean.FY17 -Convert the Pearland Heights Lift Station into a manhole and gravity flow the wastewater to the lift station located at 1630 Rice Road. FY18 -Demolish and reconstruct the 30 year old Mary’s Creek Lift Station in the area adjacent to the current location. O & M Impact Sanitary Sewer Rehabilitation Inflow and infiltration program to replace failing waste water lines over thirty years of age in the following areas over a period of years -Corrigan Subdivision,Old Towne, Summerset/Shrine, Country Place, Green Tee, Westminster, Brookside Acres,Shadycrest, Creek View,Parkview,Wood Creek, Heritage Green, Clear Creek Estates, Twin Creek Woods. O & M Impact Orange Mykawa Lift Station Retirement - WWM Project 33 Abandonment of lift station and installation of new 12" gravity sewer line along Mykawa from Orange to Walnut for approximately 3,386 LF.To be completed in coordination with Mykawa Road construction. O & M Impact Relocation Mykawa Scott LS - WWM Projects 5 Replacement of the existing lift station,a new 12"force main, approximately 2,500 LF,from Mykawa to SH35 and a new 8-12" gravity line, approximately 3,430 LF along Mykawa from Scott Street to Shank.Project will be coordinated with Mykawa Rd. construction. O & M Impact JHEC WWTP Expansion - WWM Project 29A A 2 MGD expansion to the existing 4 MGD wastewater treatment plant that will increase the wastewater treatment capacity to 6 MGD facility at the John Hargrove Environmental Center. O & M Impact Green Tee 1 to Riverstone Wastewater Diversion (Longwood Service Area Phs 1) Install 5,100 LF of 8"force main from Lift Station #34 on Green Tee Drive through the golf course by directional drill to the Riverstone Ranch Collection system receiving manhole at Donegal Street and Country Club Drive.This project works in conjunction with the Riverstone Ranch Oversizing agreement. O & M Impact 190 Project #Project Name Project Description SUMMARY OF CAPITAL PROJECTS FY 2016 ADOPTED BUDGET WW1605 Project 2016 Budget Budget 2016 2017 2018 2019 2020 $2,845,000 $50,000 $0 $0 $0 ($10,933)($16,400) WWTP Total 2016 Budget Budget 2016 2017 2018 2019 2020 $153,585,416 $36,666,552 $0 ($26,650)$219,373 $470,815 $591,529 Grand Total 2016 Budget Budget 2016 2017 2018 2019 2020 $455,909,543 $117,284,938 $87,473 $340,636 $577,397 $677,477 $873,516 O & M Impact O & M Impact O & M Impact Roy/Max/Garden Roads Basin Sewage System - WWM Project 12 This project proposes approximately 4,940 LF of 18" trunk sewer along Broadway St. from Food Town's Lift Station to O'Day Rd,approximately 1,300 LF of 15" trunk sewer along Garden Rd from Broadway to the lift station and 1,200 LF of 12" sewer line along Roy/Max Rd from Broadway to Hickory Slough. 191 THIS PAGE INTENTIONALLY BLANK 192 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 to pay 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). Lower Kirby Urban Center – Fund created to account for the revenues and expenditures associated with the financing agreements for infrastructure for the Lower Kirby management districts. 193 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES 53,213$ 57,008$ 52,802$ 52,800$ INTEREST INCOME 180 200 130 120 TOTAL 53,393 57,208 52,932 52,920 EXPENDITURES SALARY & WAGES 62,942 82,203 78,595 90,218 MATERIALS & SUPPLIES 480 1,350 1,150 4,850 MISCELLANEOUS SERVICES 2,120 24,444 23,164 19,282 INVENTORY 1,500 1,428 TOTAL 65,542 109,497 104,337 114,350 REVENUES OVER (UNDER) EXPENDITURES (12,149)(52,289)(51,405)(61,430) FUND BALANCE - BEGINNING 129,608 117,459 117,459 66,054 FUND BALANCE - ENDING 117,459$ 65,170$ 66,054$ 4,624$ COURT SECURITY FUND - 17 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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 FY 2016, the second part-time bailiff was increased to full-time and partially funded in both this fund and the General Fund. Beginning in fiscal year 2017, more 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 9/30/2016 is estimated to be $4,624. 194 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME 104$ 120$ 53$ 50$ MISCELLANEOUS DONATIONS 40,775 23,130 27,856 20,300 TOTAL 40,880 23,250 27,909 20,350 EXPENDITURES MATERIALS & SUPPLIES 440 28,025 17,897 MISCELLANEOUS SERVICES 477 INVENTORY 16,993 4,650 1,998 TRANSFER TO FUND 10 21,000 35,000 CAPITAL OUTLAY 44,117 9,869 500 15,000 TOTAL 82,550 42,544 20,395 50,477 REVENUES OVER (UNDER) EXPENDITURES (41,670) (19,294) 7,514 (30,127) FUND BALANCE - BEGINNING 91,337 49,667 49,667 57,180 FUND BALANCE - ENDING 49,667$ 30,373$ 57,180$ 27,053$ The fiscal year 2016 budget totals $50,477 and includes $477 for the Police Chaplain Program and $15,000 for a LUCAS device (chest compression system)for the Fire Department.In fiscal year 2014 Pearland PETS presented Animal Services with a $25,968 commitment toward the future purchase of a mobile adoption/disaster recovery vehicle. Animal Services currently has $48,233 available, $35,000 of which will be used for a first phase renovation of the existing facility in fiscal year 2016, leaving a balance of $10,690. The balance will be held to fund a portion of the mobile vehicle at a future time.The balance available also includes $2,197 for EMS/Fire,$6,093 for Fire Operations, $3,787 for Police,and $1,910 for the two libraries.The fund balance estimated is $27,053 on 9/30/16. CITYWIDE DONATION FUND - 18 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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. The fiscal year 2015 expenditures include $1,998 for a laptop for a Humane Officer;$15,924 for the replacement of gear racks with storage lockers for the Fire Department and $1,973 for the purchase of a range for Fire Station #1 and table and chairs for Fire Station #5. 195 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES 60,846$ 65,500$ 60,000$ 60,000$ INTEREST INCOME 202 10 25 20 TOTAL 61,048 65,510 60,025 60,020 EXPENDITURES MATERIALS & SUPPLIES 1,011 1,671 1,639 4,287 MISCELLANEOUS SERVICES 23,252 9,362 9,685 10,800 MAINTENANCE OF EQUIPMENT 13,682 55,632 58,582 54,778 INVENTORY CAPITAL OUTLAY 258,106 15,951 15,951 TOTAL 296,051 82,616 85,857 69,865 REVENUES OVER (UNDER) EXPENDITURES (235,002) (17,106) (25,832) (9,845) FUND BALANCE - BEGINNING 283,435 48,433 48,433 22,601 FUND BALANCE - ENDING 48,433$ 31,327$ 22,601$ 12,756$ COURT TECHNOLOGY FUND - 19 FY 2016 ADOPTED BUDGET SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE 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.Expenditures include the annual fee to access law enforcement warrant data, court software annual maintenance and internet service. Fund Balance at 9/30/2016 is estimated to be $12,756, drawing down fund balance by $9,845. Based on future fine activity,a portion of the expenditures may need to shift to the General Fund. 196 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES FINES & FORFEITURES 36,066$ 38,250$ 37,000$ 37,000$ INTEREST INCOME 86 72 65 60 TOTAL 36,152 38,322 37,065 37,060 EXPENDITURES SALARY & WAGES 42,345 42,629 42,972 42,835 MISCELLANEOUS SERVICES 794 1,600 1,600 1,600 TOTAL 43,139 44,229 44,572 44,435 REVENUES OVER (UNDER) EXPENDITURES (6,988) (5,907) (7,507) (7,375) FUND BALANCE - BEGINNING 60,499 53,512 53,512 46,005 FUND BALANCE - ENDING 53,512$ 47,605$ 46,005$ 38,630$ The State of Texas has authorized the governing body of a municipality to collect a fee up to $5 from each Class C misdemeanor conviction for the expenditures related to the employment of a Juvenile Case Manager. Pursuant to the Texas Code of Criminal Procedure,Article 102.0174, revenues generated from this fee must be deposited into a special fund.This new fund began with the 2010 fiscal year,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 do not cover the full cost of the Juvenile Case Manager. The difference is made up by a draw down of fund balance.In two or three years, the fee will need to be increased in order to cover the cost. Fund Balance at 9/30/2016 is estimated to be $38,630. COURT JUVENILE MANAGEMENT FUND - 23 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 197 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES STREET ASSESSMENT 62,588$ $ 756,643$ $ TOTAL 62,588 756,643 EXPENDITURES INTERFUND TRANSFER 62,588 756,643 TOTAL 62,588 756,643 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ $ $ $ STREET ASSESSMENT FUND - 33 FY 2016 ADOPTED BUDGET SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE City Council adopted an Ordinance pursuant to Chapter 313 of the Texas Transportation Code, authorizing the City to levy assessments against various persons and their property for the payment of a portion of the cost of public improvements.In fiscal year 2012, the City ordered improvements and levied assessments for Business Center Drive,from Broadway south to County Road 59. 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 2012, the City has collected $764,381 in assessments,leaving a balance at 9/30/15 of $1,720,535 due, excluding interest. Since the City does not know when the sale or the development of the property might occur, the budget reflects no activity. 198 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS 40,850$ $ 8,781$ $ INTEREST INCOME 2,488 1,800 2,911 3,000 TOTAL 43,338 1,800 11,692 3,000 EXPENDITURES MISCELLANEOUS SERVICES 93,548 46,800 INTERFUND TRANSFERS 10,625 91 91 TOTAL 10,625 91 93,639 46,800 REVENUES OVER (UNDER) EXPENDITURES 32,713 1,709 (81,947) (43,800) FUND BALANCE - BEGINNING 639,896 672,609 672,609 590,662 FUND BALANCE - ENDING 672,609$ 674,318$ 590,662$ 546,862$ TRAFFIC IMPROVEMENT FUND - 35 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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 2015 revenues total $11,692. Projected expenditures include $91 towards County Road 94 and $93,548 towards CR 48 per inter-local agreement with Brazoria County.Fiscal year 2016 revenues total $3,000 and expenditures total $46,800 towards the intersection of Discovery Bay and Business Center Drive. The fund balance at 9/30/2016 is estimated to be $546,862. 199 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS $0 $0 $0 $0 REGIONAL DETENTION FEES 0 0 0 0 TOTAL 0 0 0 0 EXPENDITURES TRANSFER TO FUND 20 0 0 0 0 TOTAL 0 0 0 0 REVENUES OVER (UNDER) EXPENDITURES 0 0 0 0 FUND BALANCE - BEGINNING 0 0 FUND BALANCE - ENDING $0 $0 $0 The Regional Detention Fund accounts for regional detention development.A certain amount of capacity in a regional detention facility is allocated to the watershed and a certain amount of capacity is reserved for future detention needs based on new development. Developers can buy into the regional detention based on capacity needs versus capacity available. The current regional detention pond program is based on five regional detention ponds throughout the City.The City completed a regional detention study in September 2010,which proposed various sub-regional detention ponds. Capacity from the pond would be purchased at a per acre feet fee based on construction cost of the pond. The fee structure will help recover the cost to purchase the property, design and construct the pond. REGIONAL DETENTION FUND - 43 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET There has been no activity as developers are detaining on-site via amenity ponds, vegetation,etc.,versus conveying to a regional pond. 200 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES HOTEL/MOTEL OCCUPANCY TAX 1,404,306$ 1,383,078$ 1,507,942$ 1,525,233$ INTEREST INCOME 4,079 5,000 10,092 10,000 MISCELLANEOUS 80,990 7,478 3,066 TOTAL 1,489,375 1,395,556 1,521,100 1,535,233 EXPENDITURES SALARIES & WAGES 193,850 263,565 266,086 271,868 MATERIALS & SUPPLIES 62,160 78,000 77,945 108,000 MAINTENANCE BUILDINGS & GROUNDS 568 34,000 MAINTENANCE EQUIPMENT 4,657 241 MISCELLANEOUS SERVICES 439,881 494,132 535,204 546,964 TRANSFERS 1,316 1,316 772 INVENTORY 7,642 3,155 CAPITAL OUTLAY 53,304 TOTAL 762,062 837,013 917,947 927,604 REVENUES OVER (UNDER) EXPENDITURES 727,315 558,543 603,153 607,629 FUND BALANCE - BEGINNING 2,271,153 2,998,468 2,998,468 3,601,621 FUND BALANCE - ENDING 2,998,468$ 3,557,011$ 3,601,621$ 4,209,249$ Fund balance 9/30/16 is estimated to be $4,209,249. 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. 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. For fiscal year 2015, Hotel Occupancy Tax revenue is projected to be $1,507,942. Expenditures for fiscal year 2015 are estimated to be $917,947. Expenditures include a co-sponsorship of the annual Pearland Crawfish Festival,International Festival,Winefest, and the Arts &Crafts Show, as well as funds to bring fiber to the offices. $17,800 was carried over from fiscal year 2014 for the final invoices on the Convention & Visitors' Bureau (CVB) Website "Visitpearland.com" and the Taste of Pearland event. HOTEL/MOTEL OCCUPANCY TAX FUND - 45 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET Fiscal year 2016 revenue is anticipated to be $1,535,233 with occupancy tax revenue at $1,525,233, and total expenditures of $927,604. The budget includes continued co-sponsorship of annual events,such as, International Festival,the Arts &Crafts Show, and the Winefest, as well as office space rental at the Pearland Town Center (PTC),and two part-time receptionists to staff weekends. The budget also continues familiarization trips for hosting planners and press to network for future business and showcasing Pearland workshops for hotels. Included for fiscal year 2016 is an increase of $15,000 to the Arts Grant and $30,000 for a Pear Art Trail Project, and the rebate to Hilton Garden Inn toward the construction of its conference center. 201 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME 155$ 140$ 100$ 50$ DONATIONS 1,230 1,000 1,000 1,000 SPONSORSHIPS 109,549 80,000 100,000 100,000 TOTAL 110,934 81,140 101,100 101,050 EXPENDITURES PARKS FOUNDATION 14,346 636 PROGRAMS 127,661 96,653 171,653 105,000 TOTAL 127,661 96,653 185,999 105,636 REVENUES OVER (UNDER) EXPENDITURES (16,727)(15,513)(84,899)(4,586) FUND BALANCE - BEGINNING 115,758 99,031 99,031 14,132 FUND BALANCE - ENDING 99,031$ 83,518$ 14,132$ 9,546$ During fiscal year 2016, funds will be used to continue to help fund recreational programs and special events, including July 4th Celebration, Winterfest, etc. Fund Balance at 9/30/2016 is estimated to be $9,546. The Park Donations Fund was created to account for donations and sponsorships made in support of Parks and Recreation Department events and programs. The fund is also used to account for the receipt and use of citizen donations through their water bills.Use of the sponsorship funds are allocated to specific events/programs/facilities as identified with the sponsorship agreement. General donations are used in accordance with the established Ordinance. Funds are budgeted to supplement programs based upon the donations received. PARK DONATIONS FUND - 46 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET In fiscal year 2012,the PEDC Strategic Plan included an action item with reference to a 'Best Practice,' the exploration of creating a Parks Foundation, the purpose of which is to accept sustainable charitable and planned donations for park facilities in Pearland. Contributions to the Foundation will support acquisition, ownership, construction, development, improvement, operation or maintenance of land and facilities owned or controlled by the City for activities that include recreation, entertainment, sports, the arts, and similar activities that might benefit the citizens of the City of Pearland.In fiscal year 2013, the City Council adopted the creation of the Foundation as one of its goals.In fiscal year 2015,a contract was created.In March of 2015 said contract was presented to the City Council and in April the City Council created,via Resolution R2015-55, the Forever Parks Foundation. The City provided funding to the Foundation with an initial amount of $13,833 received from water bill donations,with subsequent quarterly donations from funds received through the water bill donations. 202 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES PARKLAND FEES/DONATIONS 292,379$ 50,000$ 292,308$ 100,000$ INTEREST INCOME 1,942 1,100 2,150 3,000 TOTAL 294,321 51,100 294,458 103,000 EXPENDITURES REIMBURSEMENT TO DEVELOPER 38,250 INTERFUND TRANSFERS 66,500 CAPITAL OUTLAY 35,590 199,167 198,967 231,000 TOTAL 102,090 199,167 237,217 231,000 REVENUES OVER (UNDER) EXPENDITURES 192,231 (148,067)57,241 (128,000) FUND BALANCE - BEGINNING 795,919 988,150 988,150 1,045,391 FUND BALANCE - ENDING 988,150$ 840,083$ 1,045,391$ 917,391$ Included is a map of the thirteen parkland zones. Estimated Fund Balance at 9/30/16 is $917,391. Expenditures for fiscal year 2016 include $20,000 toward the resurfacing of the Southdown playground, $15,000 to replat Woodcreek Park,$86,000 towards $3.6 milion of improvements at Independence Park and $110,000 towards a $4.2 million extension of a hike and bike trail along the Clear Creek Corridor. Pursuant to the Unified Development Code, new development either must dedicate parkland or pay the City a fee in lieu of parkland. 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. PARK & RECREATION DEVELOPMENT FUND - 47 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET Expenditures for fiscal year 2015 include $100,000 towards Centennial Park,$2.8 million in improvements, $17,480 for 2 pet water fountains at Southdown, $9,552 for signage at Shadow Creek Trail.The total cost for the sign is $10,000 with $448 funded in the General Fund, and $48,700 carried over from fiscal year 2014 for signs at the remaining parks. 203 HATFIELDRDMYKAWARDNORTHF O R K D R BROADWAYST/FM518ALMEDARD/FM521VETERANSDROLDALVINRDFITE RD JOHN LIZER RD SHADOWCREEK PKW Y /F M 2 2 3 4 STONERDSH6 HARKEYRDBAILEY RD YOSTBLVDODAYRDKINGSLEYDRM C H A R D R D KIRBYDRDIXIEFARMRDSH 6 BARRYROSERDSCARSDALEBLVDROYRDO IL E R DRSAVANNAHPKWYALMEDARD/FM 521MCLEANRDSH288SH288SH288CR90MAXRDMASTERS/FM1128SAM HOUSTON TOLLWAY/BELTWAY 8 SAM HOUSTON TOLLWAY/BELTWAY 8 ORANGE ST LIBERTY DRWALNUT ST SH288CULLEN PKWY / FM 865GARDEN RDM A I N S T / S H 3 5 MANVEL RD / FM 1128BRO A D W AY S T /FM 518 BUSINESSCENTERDRSOU THERNCR 94 / SMITH RANCH RDPEARLANDPKWYM C H A R D R D MAINST/SH35B R OOKSIDE R D M A GNOLIA RD PEARLANDPKWYBROAD W A Y S T /FM518 M A I N S T / S H 3 5 S O U THWY CK PKWY MORG A NRDHUG HES RANC H R D MILLER RANCH RDSMITH RANCH RDCLEARLAKELOOPTRA ILSDRS O U T H F O R K D R M A N V E L B R O O K S I D E V I L L A G E I O W A C O L O N Y A R C O L A A L V I N H O U S T O N F R I E N D S W O O D Tom Bass Regional ParkTom Bass Regional Park MustangMustangCommunity CenterCommunity Center Melvin Knapp Activity CTR Country Place Country Place Private GolfPrivate GolfCourseCourse Christa Christa Adair Park Adair Park Harris Co.Harris Co. El Franco Lee ParkEl Franco Lee ParkHarris Co. Harris Co. Private Private GolfGolfCourseCourse Golfcrest Golfcrest Country Country ClubClub Dixie FarmDixie FarmRoad ParkRoad Park Clear CreekClear CreekPublic GolfPublic GolfCourseCourse 01 06 12 07 04 02 10 13 03 11 09 05 08 Westside Event Center Veterans Sports Complex Rec Center & Natatorium Hickory Slough Sportsplex Pearland Regional AirportPearland Regional Airport ¡0 0.5 1 Miles This product is for informational purposes and maynot have been prepared for or be suitable for legal,engineering, or surveying purposes. It does notrepresent an on-the-ground survey and representsonly the approximate relative location of propertyboundaries 1 in = 1 milesCounty ParksPublic Parks Golf Cource Pearland City Limits Pearland ETJ 01020304 05060708 0910111213 CITY OF PEARLANDPublic Park Zones 1 - 13 MAP PREPARED: NOVEMBER 2015CITY OF PEARLAND GIS DEPARTMENT O N A Centennial ParkB Independence ParkC Southdown ParkD Woodcreek ParkE Woody Street ParkF Cypress Village ParkG Corrigan ParkH Hyde ParkI Pine Hollow ParkJ Creekside Park K Aaron Pasternak Memorial ParkL Zychlinski ParkM Sonny Tobias ParkN Shadow Creek Ranch TrailO Southgate ParkP Clear Brook City ParkQ Heritage PlazaR Dad's Park (Private- Little League)S Hunter Park T Old Settlers Cemetery SouthwyckSouthwyckPublic GolfPublic GolfCourseCourse C R A B M K Q H J L S T G E P D IF 204 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME 102$ 45$ 65$ 8$ MISCELLANEOUS 751 TOTAL 853 45 65 8 EXPENDITURES BUILDINGS & GROUNDS 5,391 432 INVENTORY INTERFUND TRANSFERS 31,100 31,100 CAPITAL OUTLAY 38,000 31,616 TOTAL 5,391 69,100 63,148 REVENUES OVER (UNDER) EXPENDITURES (4,538) (69,055) (63,083) 8 FUND BALANCE - BEGINNING 73,846 69,308 69,308 6,225 FUND BALANCE - ENDING 69,308$ 253$ 6,225$ 6,233$ TREE TRUST FUND - 49 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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. Fiscal year 2015 included funds for trees at Shadow Creek Ranch Park and a woodchipper. There are no expenditures budgeted for fiscal year 2016. Fund Balance at 9/30/16 is estimated to be $6,233. 205 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME 351$ 240$ 240$ 34$ SIDEWALK REVENUE 33,390 5,000 5,000 TOTAL 33,741 5,240 240 5,034 EXPENDITURES INTERFUND TRANSFERS 14,652 67,224 217,224 OTHER EXPENSES 1,890 8,520 TOTAL 16,542 67,224 225,744 REVENUES OVER (UNDER) EXPENDITURES 17,199 (61,984)(225,504)5,034 FUND BALANCE - BEGINNING 225,800 242,999 242,999 17,495 FUND BALANCE - ENDING 242,999$ 181,015$ 17,495$ 22,529$ SIDEWALK FUND - 55 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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 $5.23 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 2015 interfund transfers out include $67,224 towards Bailey Road Extension from Veterans to FM 1128 and $150,000 towards an overall gap sidewalk program.Specific sidewalk locations identified with the original payments will be constructed out of the City's General Fund annual sidewalk program, when identified for construction. Fund balance at 9/30/2016 is estimated to be $22,529. There is $4,220 identified in the fund balance for future Mykawa construction. 206 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTEREST INCOME 273$ 100$ 210$ 200$ SEIZURE FUNDS 92,599 20,000 3,682 TOTAL 92,872 20,100 3,892 200 EXPENDITURES MATERIALS & SUPPLIES 17,637 1,200 1,320 EQUIPMENT MAINTENANCE MISCELLANEOUS 22,861 50,800 16,950 35,000 INVENTORY 1,100 CAPITAL OUTLAY 46,000 2,200 TOTAL 86,498 54,100 18,150 36,320 REVENUES OVER (UNDER) EXPENDITURES 6,374 (34,000)(14,258)(36,120) FUND BALANCE - BEGINNING 192,213 198,586 198,586 184,328 FUND BALANCE - ENDING 198,586$ 164,586$ 184,328$ 148,208$ The 2016 budget includes monies for undercover vehicles and informant monies, as needed. Projected fund balance at 9/30/16 is projectd to be $148,208. These funds will be held to fund a planned mobile command post. The Police State Seizure Fund is used to account for state seizure funds.State seizure funds are to be deposited into a special fund and used solely for law enforcement purposes,such as salaries and overtime pay for officers, officer training, specialized investigative equipment and supplies, and items used by officers in direct law enforcement duties. Seizure funds are acquired through the sale of seized property, property used in commission of a crime. Expenditures in fiscal year 2015 include the cost for undercover vehicles. POLICE STATE SEIZURE FUND - 60 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 207 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES POLICE DRUG REVENUE 25,634$ 28,846$ INTEREST INCOME 79 15 50 55 TOTAL 25,713 15 28,896 55 EXPENDITURES WEARING APPAREL 31,842 CAPITAL OUTLAY 68,000 TOTAL 31,842 68,000 REVENUES OVER (UNDER) EXPENDITURES (6,129)15 28,896 (67,945) FUND BALANCE - BEGINNING 49,286 43,157 43,157 72,053 FUND BALANCE - ENDING 43,157$ 43,172$ 72,053$ 4,108$ 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 included $31,842 for 14 replacement tactical vests for SWAT. FEDERAL POLICE FUND - 62 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET $68,000 is budgeted for fiscal year 2016 for the purchase of a Pano-Metric Scanner for use at crime scenes and major auto accidents. Projected fund balance at 9/30/16 is $4,108. 208 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES GRANT REVENUE 402,156$ 490,860$ 937,607$ 177,834$ INTEREST INCOME 14 INTERGOVERNMENTAL 11,860 TOTAL 414,016 490,860 937,621 177,834 EXPENDITURES SALARY & WAGES 9,159 MATERIALS & SUPPLIES 25,312 48,957 30,657 1,822 MAINTENANCE OF EQUIPMENT 4,640 MISCELLANEOUS SERVICES 5,906 50,679 12,486 TRANSFERS 242,139 391,107 829,468 165,968 CAPITAL OUTLAY 113,621 28,615 60,356 10,044 TOTAL 396,137 519,358 937,607 177,834 REVENUES OVER (UNDER) EXPENDITURES 17,879 (28,498)14 FUND BALANCE - BEGINNING 46,261 64,140 64,140 64,154 FUND BALANCE - ENDING 64,140$ 35,642$ 64,154$ 64,154$ Fiscal year 2016 grant revenues total $177,834. The City's Crime Victim Liaison grants will continue, providing $70,509 from the Criminal Justice Division -Office of the Governor and $41,387 from the Office of the Attorney General. The Houston-Galveston Area Council (HGAC)will provide an anticipated $11,844 for the Police Department's DWI/DUI task force, and the Texas Division of Emergency Management (EMPG)will provide the City with $42,228 in support of staffing costs in the Fire Marshal's Office.The Bureau of Justice Assistance is allocating $10,044 to Pearland through the Justice Assistance Grant for police equipment. Expenditures for fiscal year 2016 equal revenues for the year. Fund balance at 9/30/16 is $64,154. The Grant Fund is used to account for revenues and expenditures associated with federal,state and local grants. Fiscal year 2015 grant revenues, including interest income, total $937,621. Expenditures for fiscal year 2015 include $40,863 for Emergency Management activities,supported with Emergency Management Performance Grant funds from the Texas Division of Emergency Management; $200,000 from the Texas Parks &Wildlife Department for Recreational Trails;$7,114 for firefighter training; $10,428 for Gang-Tracking and Accident Scene Reconstruction Software; $18,719 for the DWI/DUI task force; and $18,157 towards matching costs for bulletproof vests.The City also received $18,187 from HGAC for tilt-hoppers at the Stella Roberts Recycling Center and illegal dumping enforcement equipment in the Fire Marshal's Office.Two grants provided fiscal support for the Pearland Police Department's Crime Victim Liaisons -$64,687 from the Criminal Justice Division of the Office of the Governor and $41,849 from the Office of the Attorney General.In addition,State Farm Insurance Company awarded the Fire Department $12,500 for the purpose of conducting teen driver safety education activities in Pearland,mainly designed to reduce drinking and/or texting while driving.A grant from the local volunteer firefighters in the amount of $36,381 was used to install a security fence at the Pearland Fire Department and the Police Department obtained $5,372 in the form of a training grant for TCLEOSE activities.Through Brazoria County, the City received $463,350 for the construction of interpretive birding trails at the pending John Hargrove Environmental Center.Fiscal year 2015 expenditures total $937,607, including funds carried over from previous years. GRANT FUND - 101 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 209 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES GRANT REVENUE 434,324$ 632,564$ 569,621$ 319,085$ TOTAL 434,324 632,564 569,621 319,085 EXPENDITURES MISCELLANEOUS SERVICES 20,982 46,026 51,441 40,326 TRANSFERS 389,371 107,787 185,295 113,447 OTHER EXPENSES 18,651 478,751 338,248 165,312 TOTAL 429,004 632,564 574,984 319,085 REVENUES OVER (UNDER) EXPENDITURES 5,320 (5,363) FUND BALANCE - BEGINNING 43 5,363 5,363 FUND BALANCE - ENDING 5,363$ 5,363$ $ $ COMMUNITY DEVELOPMENT GRANT FUND - 113 Fiscal year 2016 CDBG allocation totals $319,085.A total of $16,500 is budgeted for public services and $63,817 for planning and administration.A total of $73,456 will be used for code enforcement and single family housing rehabilitation program activities for limited-income,eligible Pearland households, and the remaining $165,312 will go towards the replacement of 4,941 linear feet of transite waterlines in the City's Old Townsite area during the program year. SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 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 2015 expenditures of $574,984 include $25,415 for Pearland Neighborhood Center’s Emergency Rent/Utility Assistance Program,which has helped over 350 Pearland residents avoid evictions or utilities being disconnected since 2007.A total of $62,758 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 4-way traffic signal installation that began in 2014,was completed in 2015 with $83,028 in fiscal year 2015 expenditures remaining from the project's prior year allocation of $225,559. A total of $231,036 was allocated for activities associated with Code Enforcement in the City's CDBG Target Area, and Single Family Housing Rehabilitation Program expenditures for low-moderate income families in Pearland. With the completion of exterior improvements at Forgotten Angels in the amount of $25,738, $147,009 in unallocated funds are available to complete other eligible infrastructure improvements in the future. Revenues for fiscal year 2015 total $569,621. 210 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS 237,721$ 254,426$ 254,427$ 238,966$ INTEREST INCOME 20 40 TRANSFERS IN 85,602 85,489 85,489 80,294 TOTAL 323,343 339,955 339,916 319,260 EXPENDITURES PERSONNEL 51,960 48,580 50,582 53,389 MATERIALS & SUPPLIES 6,194 5,600 5,350 5,350 MAINTENANCE OF BUILDINGS & GROUNDS 35,863 23,800 69,741 26,300 MISCELLANEOUS SERVICES 229,325 261,935 214,243 234,221 TRANSFERS OUT TOTAL 323,343 339,915 339,916 319,260 REVENUES OVER (UNDER) EXPENDITURES 40 FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ 40$ $ $ UNIVERSITY OF HOUSTON FUND - 140 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET In fiscal year 2009, the City and the University of Houston, Clearlake (UofH)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. In 2015, the Texas State Legislature approved $24.5 million for UofH Clear Lake to build a Health Science Building at the Pearland Campus. The City of Pearland will donate the land for the facility.It is anticipated that the building will be open for classes fall 2018.As such, UofH Clear Lake has been in contact with the City regarding the use of the entire current building, an additional 7,933 square feet.If that were the case,this would mean that UofH Clear Lake would pick up 100% of the operating costs via direct expense and the City would no longer manage and operate the facility, resulting in discontinuance of this fund. Per the agreement, UofH 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. UofH's share is 74.85% and PEDC is 25.15%. Expenditures include custodial services, lawn maintenance, utilities, repair and maintenance, and insurance. Revenues and expenditures are a pass-through. 211 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES MISCELLANEOUS $ $ $ 10,488$ INTEREST 349 335 300 350 TRANSFERS IN 8,041 8,041 44,651 TOTAL 349 8,376 8,341 55,489 EXPENDITURES TRANSFER TO FUND 140 TOTAL REVENUES OVER (UNDER) EXPENDITURES 349 8,376 8,341 55,489 FUND BALANCE - BEGINNING 239,779 240,128 240,128 248,469 FUND BALANCE - ENDING 240,128$ 248,504$ 248,469$ 303,958$ 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. The fiscal year 2015 includes a transfer in from the City of Pearland of $8,041 for the full contribution needed for fiscal year 2015. Fiscal year 2016 includes revenues from UofH of $10,488,PEDC of $1,766, and the City of $42,885, as contributions are based on 2% of the replacement value.As use of the initial deposit into the fund is complete in 2016,full annual contribution of $193,700 will occur in fiscal year 2017. The fund balance ending 9/30/16 is projected to be $303,958. UNIVERSITY OF HOUSTON SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET In fiscal year 2009 the City and the University of Houston (UofH)entered into a development lease agreement where the City would construct a 31,554 square foot building on City land, and UofH would lease 23,621 square feet with the Pearland Economic Development Corporation (PEDC)occupying 3,281 square feet and 4,652 square feet would be used as a conference center/meeting area. The facility was completed in July 2010. CAPITAL RENEWAL FUND - 141 212 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES FRANCHISE FEES 269,915$ 270,000$ 300,000$ 314,000$ INTEREST INCOME 473 500 660 700 TOTAL 270,387 270,500 300,660 314,700 EXPENDITURES MATERIALS & SUPPLIES 7,615 8,000 3,241 9,650 BUILDINGS & GROUNDS 665 MAINTENANCE OF EQUIPMENT 10,000 5,000 MISCELLANEOUS SERVICES 1,909 1,000 1,000 INVENTORY 27,688 24,700 25,822 169,650 CAPITAL OUTLAY 5,599 40,000 6,846 14,800 INTERFUND TRANSFER 20,250 TOTAL 43,476 83,700 41,909 214,350 REVENUES OVER (UNDER) EXPENDITURES 226,911 186,800 258,751 100,350 FUND BALANCE - BEGINNING 260,515 487,426 487,426 746,177 FUND BALANCE - ENDING 487,426$ 674,226$ 746,177$ 846,527$ Fiscal year 2015 expenditures include upgraded storage system with more memory, camera shoulder mount kit, external recorder camera monitor,LED light kit,Canon camera, expanding the dais, and potentially improving cameras in the council chambers. Expenditures in fiscal year 2016 include $29,650 for photo and video camera, teleprompter, lenses, steadicam, cam housing, and lights and fixtures for in-house studio as well as $20,000 towards the actual build-out of the studio. $140,000 is included for audio visual,public announcement system and other PEG channel capital needs associated with the renovation and expansion of the Council Chamber dais and chamber. Fund balance at 9/30/2016 is anticipated to be $846,527. 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. MUNICIPAL CHANNEL (PEG) FUND - 145 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET 213 OVERVIEW LKMD PMMD Regional Detention 1,598,149 612,292 Hooper Road 1,500,000 Kirby Ditch 1,784,796 South Spectrum 119,462 94,676 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget REVENUES INTERGOVERNMENTAL $ $ $ 2,764,300$ TOTAL 2,764,300 EXPENDITURES INTERFUND TRANSFER 2,764,300 TOTAL 2,764,300 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ $ $ $ LOWER KIRBY URBAN CENTER FUND - 199 FY 2016 ADOPTED BUDGET SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE One of the City's priorities is the development of the Lower Kirby Urban Area that will encourage employment, commerce, recreation, arts, entertainment and overall economic development. The City is anticipating approximately a 73% reimbursement on the Regional Detention from the Lower Kirby District and 100% reimbursement on Hooper Road in fiscal year 2016. These monies will be transferred to the City's Capital Projects Fund to fund drainage related infrastructure. In 2014 the City entered into Master Financing Agreements (R2014-117)with the Lower Kirby Pearland Management District and the Pearland Municipal Management District No.1 by which the City and Districts would work together to finance $48 million in infrastructure in the districts.The City and Districts would agree, on a case by case basis,which infrastructure the City would advance funds in order to facilitate development. The Districts, based on valuation on the ground, would reimburse the City through the sale of bonds when economically feasible. In 2014 the City entered into a financing agreement (R2014-119)in association with the Hooper Road Reconstruction Project and Financing Agreement (R2014-25) associated with Regional Detention Facilities.In 2015, financing agreements for Kirby Ditch Improvements (R2015-136) and preliminary engineering for South Spectrum Blvd. (R2015-147) were approved. In 2015, financing agreements for Kirby Ditch improvements (R2015-136) and preliminary engineering for South Spectrum Blvd. (R2015-147) were approved. Financing by District is as follows: 214 INTERNAL SERVICE FUNDS The Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. The City of Pearland has two Internal Service Funds. Property/Liability Insurance Fund Accounts for the activities of the City’s property and casualty insurance. Medical Self Insurance Fund Accounts for the accumulation of monies for the payment of medical claims. 215 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES INTERFUND TRANSFERS 1,120,668$ 1,284,375$ 1,018,712$ 1,245,477$ INSURANCE RECOVERY 138,441 100,000 70,000 70,000 INTEREST INCOME 144 60 30 TOTAL 1,259,253 1,384,375 1,088,772 1,315,507 OPERATING EXPENSES INSURANCE PREMIUMS 1,173,288 1,284,360 1,074,208 1,221,977 CLAIMS 74,152 90,000 90,000 90,000 TOTAL 1,247,440 1,374,360 1,164,208 1,311,977 REVENUES OVER (UNDER) EXPENSES 11,813 10,015 (75,436)3,530 BEGINNING NET ASSETS 146,152 157,965 157,965 82,529 ENDING NET ASSETS 157,965$ 167,980$ 82,529$ 86,059$ 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. PROPERTY/LIABILITY INSURANCE FUND - 95 SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2016 ADOPTED BUDGET The rates for premiums for fiscal year 2015 total $1,074,208, and uninsured and deductible claims for fiscal year 2015 total $90,000. Premiums for fiscal year 2016 include a 15% increase in police auto coverage,with remaining auto coverage seeing a 7% increase, effective October 1, 2015. There is no change to law enforcement liability. General liability rates decrease by 15% and an inflation factor of 1.25%is applied to buildings under real and personal property liability.The budget includes a 5% increase in windstorm insurance. Increase in premiums also include the cost of new facilities added,such as Fire Stations #2 and #3 and Shadow Creek Ranch Park.Based on the type of insurance and values of property, the General Fund, Water &Sewer Fund, and Convention &Visitors' Bureau reimburse the Property Insurance Fund. Fund balance at 9/30/2016 is estimated to be $86,059,which approximates the amount needed for uninsured or deductible claims. 216 REVENUES FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 095-0000-359.09-00 TRANSFER FROM FUND 030 301,030 236,691 185,638 325,063 095-0000-359.99-00 TRANSFER FROM FUND 010 819,638 1,046,368 831,758 919,642 095-0000-357-04-10 TRANSFER FROM FUND 045 1,316 1,316 772 1,120,668 1,284,375 1,018,712 1,245,477 095-0000-358.45-00 INSURANCE REIMBURSEMENTS 121,200 100,000 70,000 70,000 095-0000-358.99-00 MISCELLANEOUS 17,241 *INSURANCE RECOVERY/MISC.138,441 100,000 70,000 70,000 095-0000-356.00-00 INTEREST INCOME 144 60 30 144 60 30 TOTAL 1,259,253 1,384,375 1,088,772 1,315,507 EXPENSES FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 095-0000-555.01-01 GENERAL LIABILITY INSURANCE 50,549 48,813 48,000 49,348 095-0000-555.01-02 ERRORS AND OMISSIONS INSURANCE 74,140 76,364 77,480 79,804 095-0000-555.01-03 PUBLIC EMPLOYEE DISHONESTY INS 3,210 3,210 2,953 2,953 095-0000-555.01-04 ANIMAL MORTALITY INSURANCE 2,971 2,924 2,450 2,450 095-0000-555.01-05 LAW ENFORCEMENT LIABILITY 73,580 78,152 74,577 79,211 095-0000-555.03-01 PROPERTY INSURANCE 71,152 93,292 77,365 86,177 095-0000-555.03-02 WINDSTORM DAMAGE INS 632,738 727,204 561,695 635,510 095-0000-555.03-03 AUTOMOBILE LIABILITY 102,867 121,462 105,964 136,036 095-0000-555.03-04 AUTO DAMAGE 87,957 103,847 92,593 118,540 095-0000-555.03-05 PROPERTY XS WIND 37,077 095-0000-555.03-06 MOBILE EQUIPMENT 12,480 12,480 13,291 13,291 095-0000-555.03-07 COASTAL WIND 8,746 095-0000-555.03-09 RAIN-OUT INSURANCE (PARKS)1,500 1,500 095-0000-555.03-08 SEWAGE BACK-UP 15,821 16,612 16,340 17,157 1,173,288 1,284,360 1,074,208 1,221,977 095-1270-556.03-00 CLAIMS 65,837 90,000 90,000 90,000 *CLAIMS 65,837 90,000 90,000 90,000 095-1270-564.01-00 $1,000 - $4,999 2,550 *INVENTORY 2,550 095-3389-553.01-00 BUILDINGS & GROUNDS 5,765 *BUILDINGS & GROUNDS 5,765 TOTAL 1,247,440 1,374,360 1,164,208 1,311,977 *MISCELLANEOUS SERVICES *TRANSFERS *INTEREST PROPERTY/LIABILITY INSURANCE FUND - 95 REVENUES AND EXPENSES FY 2016 ADOPTED BUDGET 217 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES INTEREST INCOME 407$ 856$ 396$ 750$ CONTRIBUTIONS 5,487,273 6,821,032 5,539,705 8,067,334 TRANSFERS 1,369,510 454,008 TOTAL 6,857,190 6,821,888 5,994,110 8,068,084 OPERATING EXPENSES CLAIMS AND FEES 6,514,241 6,801,888 6,623,038 7,846,876 MISCELLANEOUS 34,009 20,000 20,000 25,000 TOTAL 6,548,250 6,821,888 6,643,038 7,871,876 REVENUES OVER (UNDER) EXPENSES 308,940 (648,928)196,208 BEGINNING NET ASSETS 476,094 785,034 785,034 136,106 ENDING NET ASSETS 785,034$ 785,034$ 136,106$ 332,314$ MEDICAL SELF INSURANCE FUND - 99 SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2016 ADOPTED BUDGET 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 $7.6 million effective October 1, 2015.If claims exceed the aggregate stop loss, the plan will provide for an additional $1.0 million, with no reimbursement required by the City. The City will continue to provide three options for employees - a Health Savings Account and two Kelsey Seybold options -and will continue to pay 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. Contributions for fiscal year 2016 total $8.0 million and total expenses,claims and administrative fee total $7.8 million,resulting in an increase in reserves of $196,208. Estimated net assets on 9/30/2016 are $332,314, up from fiscal year 2015, but still below an $880,000 reserve needed.Building of the reserve will be a multi-year plan. In fiscal year 2015,it is anticipated that medical claims will total $5,741,430. Total expenses, including stop loss and administrative fees,is $6.64 million.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; however, the claim cost per employee is running $12,567 based on 527 employees on the plan, versus $11,186 for 608 budgeted positions, resulting in a drawdown of assets by $648,928 leaving an ending balance of $136,106 at 9/30/2015,well below an $880,000 reserve that is needed for claim fluctuations. For fiscal year 2016, given the historical number and size of claims,the City's medical renewal resulted in an 11.42% increase based on the provider's expected claims. Since the actual claims have exceeded expected claims over the past few years and use of net assets,the City is budgeting higher claims at $6.855 million,and needing to replenish a reserve, resulting in an overall 24.8% increase to the City's funding structure. 218 REVENUES FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 099-0000-356.00-00 INTEREST INCOME 407 856 396 750 407 856 396 750 099-0000-358.50-01 CITY AND EMPLOYEE CONTRIBUTIONS 5,142,359 6,715,268 5,484,840 7,992,414 099-0000-358.50-02 RETIREE AND COBRA CONTRIBUTIONS 111,807 105,764 54,865 49,920 099-0000-358.99-00 MISCELLANEOUS 233,107 25,000 5,487,273 6,821,032 5,539,705 8,067,334 099-0000-359.09-00 TRANSFER FROM FUND 030 79,805 099-0000-359.99-00 TRANSFER FROM FUND 010 1,369,510 371,106 099-0000-359.01-00 TRANSFER FROM FUND 15 3,098 1,369,510 454,008 TOTAL 6,857,190 6,821,888 5,994,110 8,068,084 EXPENSES FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Projection Budget 099-1040-555.10-01 ADMINISTRATIVE FEE 808,029 870,832 809,158 927,129 099-1040-555.10-08 HEALTH PORTABILITY ACT 1,131 89,493 72,450 64,750 099-1040-555.10-02 MEDICAL INSURANCE CLAIMS 5,705,081 5,841,563 5,741,430 6,854,997 6,514,241 6,801,888 6,623,038 7,846,876 099-1040-556.28-00 WELLNESS PROGRAM 34,009 20,000 20,000 25,000 34,009 20,000 20,000 25,000 TOTAL 6,548,250 6,821,888 6,643,038 7,871,876 *MISCELLANEOUS SERVICES *TRANSFERS *INTEREST MEDICAL SELF INSURANCE FUND - 99 REVENUES AND EXPENSES FY 2016 ADOPTED BUDGET *CONTRIBUTIONS *CLAIMS 219 THIS PAGE INTENTIONALLY BLANK 220 COMPONENT UNITS The City of Pearland has three entities that are considered component units of the City. They are the Pearland Economic Development Corporation (PEDC), Pearland Tax Increment Reinvestment Zone #2 (TIRZ), and the Development Authority of Pearland. The PEDC is the only entity that requires budget approval by the City. Thus, it is the only component unit included in the Citywide summary. A component unit is defined as a legally separate organization for which elected officials of the primary government (the City) are financially accountable. 221 PEARLAND ECONOMIC DEVELOPMENT CORPORATION *The President of PEDC reports to the PEDC Board. This position also serves as the Executive Manager of Development Services, overseeing the Community Development Department and, in that capacity, reports to the City Manager. Director ofMarketingVice-Presidentof EDCOfficeSupervisorDevelopmentManagerPresidentof PEDC*222 OVERVIEW FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted Actual Budget Projection Budget OPERATING REVENUES Sales Tax 8,563,736$ 8,921,768$ 9,337,463$ 10,159,649$ Interest Income 76,217 45,000 103,183 85,000 Intergovernmental 79,060 12,000 768,643 1,611,300 Miscellaneous 434,108 436,998 440,749 460,000 TOTAL 9,153,121 9,415,766 10,650,038 12,315,949 OPERATING EXPENDITURES Operating 1,727,502 2,235,030 1,872,800 2,020,888 Bond Payments 2,029,810 8,602,270 8,494,287 1,420,458 Inventory 5,000 5,000 5,000 Capital Outlay 42,320 455,000 1,226,744 5,155,000 TOTAL 3,799,636 11,297,300 11,598,831 8,601,346 REVENUES OVER/(UNDER) EXPENDITURES 5,353,485 (1,881,534)(948,793)3,714,603 OTHER FINANCING SOURCES (USES): Transfers in Capital Transfers Out (2,792,596)(4,408,788) Incentives (1,564,503)(1,264,014)(680,731)(3,591,342) Bond Proceeds TOTAL (1,564,503)(4,056,610)(5,089,519)(3,591,342) NET CHANGE IN FUND BALANCE 3,788,982 (5,938,144)(6,038,312)123,261 FUND BALANCE - BEGINNING (Before Reserves)15,366,504 19,155,489 19,155,489 13,117,177 DEBT SERVICE RESERVES (665,254) DEBT PAY-OFF (Cumulative)(4,793,794) FUND BALANCE - ENDING 13,696,439$ 13,217,345$ 13,117,177$ 13,240,438$ PEARLAND ECONOMIC DEVELOPMENT FUND - 15 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2016 ADOPTED BUDGET The Pearland Economic Development Corporation (PEDC)was created in 1995 by the voters under the Texas Development Corporation Act of 1979. The Corporation is financed by 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 9/30/16 is estimated to be $13,240,438. 223 Fiscal Year 2014-2015 – Operating Revenues are estimated to be $10,650,038, $1,234,272 above the amended budget. The increase is due to both higher than anticipated sales tax revenue, projected at $9,337,463, $415,695 higher than the amended budget, and to reimbursements of $768,643 from the City’s Street Assessment Fund for Business Center Drive. Operating Expenditures and Other Financial Uses are projected to be $16,688,350, $1,334,440 more than the fiscal year 2014-2015 amended budget of $15,353,910, mainly due to Lower Kirby Ditch improvements, to be reimbursed by the Lower Kirby and Pearland Management Districts in the future. Business Incentives are lower than anticipated by $583,283, which is due to performance agreements not yet met and contingency funding budgeted for unidentified potential projects that will not be used in fiscal year 2014-2015. Series 2010 debt was called in August 2015, at $6,460,000. Fiscal Year 2015-2016 operating revenues are budgeted at $12,315,949, $1,665,911 greater than 2015 projections. Sales tax revenues of $10,159,649 are $822,186, or 8.8%, greater than 2015 projections due to continued growth and the opening of Costco. The corporation is also expecting to be reimbursed $1,599,300 from the Lower Kirby Management District for contributions towards the construction of Hooper Road in 2015. Fiscal Year 2015-2016 operating expenditures of $8,601,346 include $1.4 million for bond payments and $207,351 in reimbursements to the City, which include operating costs for office space in the University of Houston-Clear Lake, Pearland Campus. Lease cost for the office space is also included in the budget. Capital Outlay of $5,155,000 include $1,450,000 for enhancements to entryways and corridors (Pearland Parkway, Dixie Farm Rd, SH288), including landscaping improvements and entryway signs, in keeping with the Pearland 20/20 Plan of a comprehensive beautification strategy, $1,800,000 for installation of underground electrical lines in the Lower Kirby area, and $1,900,000 for SH35 streetscape improvements. The remaining expenditures cover staff and economic development, retention and development programs. Other Financing Uses of $3,591,342 are for business incentives for agreements already in place for Merit Medical, Kelsey-Seybold, Base-Pair, Keystone, FloWorks, Tool- flo and Costco, as well as $1.2 million for future projects. Total revenues are over expenditures by $123,261. Available fund balance at 9/30/16 is estimated to be $13,240,438. Staff and the offices of Economic Development currently reside in the University of Houston Clearlake (UHCL), Pearland Campus, occupying 3,281 square feet out of 23,621. In 2015 the Texas Legislature approved $24.5 million for the building of a Health Science building at the Pearland Campus, expected to open Fall 2018. UHCL has communicated the potential need and use for educational space, pursuant to the lease agreement. As such, in a year or two, staff and the office of Economic Development will need to find new office space. 224 FY 2015 FY 2015 FY 2016 FY 2014 Amended Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Projection Budget Salaries & Wages 573,740 636,935 591,160 635,242 Materials & Supplies 6,948 8,250 8,250 8,750 Maintenance, Buildings & Grounds 1,540 2,000 2,050 2,870 Equipment Maintenance 5,196 6,800 9,800 8,800 Services 1,140,078 1,581,045 1,261,540 1,365,226 Incentives 1,564,503 1,264,014 680,731 3,591,342 Transfers 2,792,596 4,408,788 Bond Payments 2,029,810 8,602,270 8,494,287 1,420,458 Inventory 5,000 5,000 5,000 Capital 42,320 455,000 1,226,744 5,155,000 TOTAL 5,364,135 15,353,910 16,688,350 12,192,688 FY 2015 FY 2015 FY 2016 FY 2014 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 PEARLAND ECONOMIC DEVELOPMENT FUND - 15 EXPENDITURE AND STAFFING SUMMARY BY DEPARTMENT FY 2016 ADOPTED BUDGET *Same as Adopted Budget, unless where noted 225 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 2015 ACCOMPLISHMENTS ♦ Opened 28 business attraction projects and held 96 visits with potential primary employers. Major announcements included FloWorks 205,000 square-foot warehouse and distribution facility on SH 35 that will bring over $21M in investment, $80M in inventory and over 80 jobs to the community. Tool-Flo announced an 80,000 square-foot manufacturing and service facility in Pearland’s Lower Kirby District that will bring over $37M in investment and over 188 jobs to the community. Zapp Precision Wire began construction of its 22,000 square-foot manufacturing facility on Industrial Drive that will bring over $4M in investments and 17 jobs to the community. ♦ Opened 7 business retention and expansion projects, working closely with existing employers. Announcements included expansion of M&S Logistics to a new office at Sunrise Lake office building, and expansion of Brask/Neelia facilities, both scheduled to grow an additional 20 employees. ♦ Opened 20 new development projects, including Costco’s 145,000 square-foot store at Business Center Drive. ♦ Initiated multiple landscape design contracts to begin implementing two beautification plans for the community: the 288 Master Plan and a City Gateway plan. PEDC worked with the City and KPB to design and advertise for bid the first entry feature on Cullen Boulevard. ♦ Continued to make progress towards improving the appearance of the 288 corridor. The PMMD#2 management district board of directors utilized their maintenance and operations tax to hire Bio Landscape to perform an initial corridor-wide trash clean up, remove brush and debris from a large drainage ditch, power wash the Broadway and McHard interchanges, and perform regular mowing, weed spraying, and litter pickup. ♦ Completion of the first phase of the Lower Kirby Regional Detention Plan, which included partial excavation of the regional detention pond, utilization of the TxDOT drainage ditch as a regional detention solution, and work towards subsequent phases in anticipation of future demand. ♦ Continued implementation of the Pearland 20/20 Community Strategic Plan, with emphasis on conducting a mid-course update to the Plan designed to evaluate progress, key successes, challenges, and to develop strategic recommendations for the final two and a half years of the plan’s implementation. FISCAL YEAR 2016 OBJECTIVES ♦ Recruit new primary employers to the community. ♦ Reach out to existing targeted primary employers to offer assistance, including expansion assistance. ♦ Assist developers looking to make investments in our community. ♦ Work with TxDOT on their planning process for the reconstruction of Broadway/FM 518 from Main to SH 288 and to improve the SH 288 bridge span over Broadway. ♦ Continue to work with the City and Management District on the development of regional detention, underground electrical, Preliminary Engineering Report for South Spectrum Boulevard and reconstruction of Hooper Road. ♦ Complete and begin implementation of the SH 35 Corridor Redevelopment Plan. ♦ Complete construction of landscape/streetscape/entry feature and improvements on Cullen Boulevard, Pearland Parkway and Dixie Farm Road. ♦ Continue implementation of the remaining two and a half year period of the Pearland 20/20 Strategic Plan. 226 0 5 10 15 20 Life Science Business/Professional Services Energy Manufacturing/Warehouse Developments PEDC Development Activities and Projects by Type FY 2015 Actual FY 2015 Target 0 20000 40000 60000 80000 100000 120000 140000 160000 Major Retail Developments by Square Footage Pearland Major Retail Developments - 5-year History Costco (2015)HEB (2014)Sam's Club (2012)Burlington Coat Factory (2011) PERFORMANCE MEASURES FY 2013 Actual FY 2014 Actual FY 2015 Actual FY 2016 Target Number of announced projects 12 9 9 7 Number of new projects 55 55 57 50 Number of Visits 110 157 163 146 227 Year Principal Interest Total 2015-2016 $720,000 $698,956 1,418,956 2016-2017 760,000 664,756 1,424,756 2017-2018 795,000 628,669 1,423,669 2018-2019 835,000 590,575 1,425,575 2019-2020 875,000 556,125 1,431,125 2020-2021 910,000 519,625 1,429,625 2021-2022 950,000 481,075 1,431,075 2022-2023 995,000 439,200 1,434,200 2023-2024 1,040,000 395,138 1,435,138 2024-2025 1,090,000 348,538 1,438,538 2025-2026 1,140,000 299,325 1,439,325 2026-2027 1,190,000 247,838 1,437,838 2027-2028 1,255,000 188,338 1,443,338 2028-2029 1,320,000 128,725 1,448,725 2029-2030 1,390,000 66,025 1,456,025 TOTAL $15,265,000 $6,252,906 $21,517,906 Principal Amount Series Outstanding Series 2005 6,635,000 Series 2006 8,630,000 TOTAL $15,265,000 As of 9/30/2016 principal outstanding will be $14,545,000 and interest outstanding will be $5,553,950 for total debt to maturity at 9/30/2016 totaling $20,098,950. PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT TO MATURITY 228 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT TO MATURITY $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Principal Interest 229 Due Date Description Amount Issued Principal Interest Payment Total Amount Outstanding 9/30/2016 3/1/2016 Series 2005 11,005,000 143,769 143,769 6,155,000 9/1/2016 480,000 143,769 623,769 Fiscal Year Total 480,000 287,538 767,538 6,155,000 3/1/2016 Series 2006 10,235,000 205,709 205,709 8,390,000 9/1/2016 240,000 205,709 445,709 Fiscal Year Total 240,000 411,419 651,419 8,390,000 TOTAL 720,000 698,956 1,418,956 14,545,000 Description Rate Date Issued Maturity Amount Issued Amount Outstanding As of 9/30/15 Annual New Money 3.5%, 4%,5%,4.1%, 2005 11,005,000 6,635,000 3/1/2016 143,769 Bond Series 4.125%,4.2%,4.25%2026 9/1/2016 143,769 2005 9/1/2016 480,000 New Money 5%,4.5%,4.25%,4.375%,2007 10,235,000 8,630,000 3/1/2016 205,709 Bond Series 4.5%,4.75%2030 9/1/2016 205,709 2006 9/1/2016 240,000 TOTAL 21,240,000 15,265,000 1,418,956 FY 2016 ADOPTED BUDGET PEARLAND ECONOMIC DEVELOPMENT CORPORATION Requirements DEBT SERVICE SCHEDULE 230 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. (l) 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. 231 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. 232 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. 233 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. 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 CITY OF PEARLAND FY 2016 ADOPTED BUDGET NEW PERSONNEL FUNDED FUND/DIVISION TITLE FULL-TIME PART -TIME GENERAL FUND - 010 Human Resources HR Generalist* 1 Police Patrol** Officers* 8 Fire Operations Firefighters*** 9 6 Fire Administration Receptionists 2 Health/Code Enforcement Health/Code Enforcement Officer* 1 Permits & Inspections Plans Examiner**** 1 Community Development Administration Small Business Coordinator* 1 Municipal Court Bailiff 0.52 Parks Recreation Center/Natatorium Recreation Specialist -1 Sub-Total General Fund 20.52 8 Municipal Court Security Fund Bailiff 0.48 -1 GRAND TOTAL 21 7 *Funded for 6 months **Police Patrol includes upgrades for 4 current Officers to Sergeant. ***Fire Operations for Fire Station #2 - 3 Lieutenants, 3 Driver/Operators, 3 Firefighters, 3 part-time Firefighters and 3 paid/Volunteer Firefighters ****Funded for 9 months Note: Municipal Court Security Fund, 017, converted a part-time Bailiff position to full-time effective 10/1/15, with partial funding from the General Fund. 279 REVENUES RECURRING NON- RECURRING TOTAL SUPPLEMENTAL Human Resources 1 Risk Manager 102,345 4,850 107,195 2 HR Analyst/Generalist 6 months (4/1/16)40,667 2,650 43,317 3 City Wide Training 66,200 66,200 Total Human Resources 209,212 7,500 216,712 Information Systems 1 Coban server hardware refresh (old to be auctioned)36,899 36,899 2 Backup Solution replacement 26,193 26,193 3 13 semi-toughbooks for remaining patrol cars 45,500 45,500 4 Replace docking stations in police vehicles 43,125 43,125 5 Laserfiche upgrade & 45 user licenses 84,000 84,000 6 Network switch replacement (old to be auctioned) PSB/Parks 8,000 101,031 109,031 7 Phone system upgrade 45,000 45,000 8 New switching for SAN at PD 33,000 33,000 9 SAN at PD 200,000 200,000 10 Dell Kace System 82,619 82,619 11 Microsoft Enterprise Agreement 200,000 200,000 12 Malwarebytes Business 7,802 7,802 Total Information Systems 299,802 613,367 913,169 Finance 1 ClearPoint Balanced Scorecard Software*6,500 6,500 2 Insurance Software (claim tracking and reporting)4,000 17,000 21,000 Total Finance 10,500 17,000 27,500 Fire 1 Convert Volunteer FF to Paid eff. 10/1/15 168,522 168,522 2 Nuisance Abatement 25,000 25,000 3 MDT's for apparatus 2,340 48,112 50,452 4 Hazardous Mitigation Plan update 50,000 50,000 5 SCBA Replacement Program (10%)60,000 60,000 6 Health/Code Enforcement Officer & vehicle (6 mo) 4/1/16 29,150 28,310 57,460 7 Deputy Emerg. Mgt. Coordinator (EMC), & vehicle 86,387 42,105 128,492 8 LUCAS Device*15,000 15,000 9 CPAP & Vent (2), cardia monitor 12,704 12,704 10 Receptionist - 2 part-time 12 months (10/1/15)30,405 30,405 14 Stryker stretcher (2), Stair Chair (2), & Backboards replcmt\ 38,636 38,636 11 Thermal Imaging Camera replacement - 2 19,000 19,000 12 EMT Intermediate incentive pay 14,478 14,478 13 Field Training Officer incentive pay 19,328 19,328 15 Replacement SUV - U141 52,175 52,175 16 Portable hand held digital radios - 5 30,021 30,021 17 Hydraulic tool, airbag, strut replacement 35,900 35,900 18 gas detector/hotsick/saw/gear hangars/bldg repairs 8,972 8,972 19 mountain bike restriping 5,500 5,500 20 Full-time Fire Inspector/Investigator & vehicle**78,239 50,669 128,908 *LUCAS Device budgeted in Donation Fund 018. **Firefighters will assist with inspections in lieu of adding a position. CITY OF PEARLAND FY 2016 ADOPTED BUDGET SUPPLEMENTAL AND CAPITAL REQUESTS GENERAL FUND **************EXPENDITURES************** Items in bold type and highlighted are funded in the budget. Items not in bold type are not funded in the FY 2015-2016 budget. PRIORITY/ DEPARTMENT DESCRIPTION 280 REVENUES RECURRING NON- RECURRING TOTAL SUPPLEMENTAL CITY OF PEARLAND FY 2016 ADOPTED BUDGET SUPPLEMENTAL AND CAPITAL REQUESTS GENERAL FUND **************EXPENDITURES************** Items in bold type and highlighted are funded in the budget. Items not in bold type are not funded in the FY 2015-2016 budget. PRIORITY/ DEPARTMENT DESCRIPTION 21 Nuisance abatement on Bailey Road - annexation 10,000 10,000 22 2 cardiac monitors - year 1 of proposed 3 year replacement program 2,342 72,394 74,736 Increase health/code enforcement inspection fees 31,200 Total Fire 31,200 611,903 423,786 1,035,689 Parks 1 Cardio & Strength equipment for Recreation Center 103,000 103,000 2 Replace playground surface at Southdown Park*71,020 71,020 3 GreenCity GIS system 3,000 47,000 50,000 4 Volunteer recognition program (fund within current allocation) 6,922 6,922 5 Tree Contract - in addition to $11,000 in base 62,685 62,685 Facility Rentals Fee Increase 26,000 Membership Fee Increases 127,000 Total Parks & Recreation 153,000 175,607 118,020 293,627 *$20,000 budgeted in Parks Development Fund 047, total of $71,020. Police 1 4 Police Sergeant upgrades - 2, 12 mos. & 2, 6 mos.& 8 Police Officers & 2 vehicles - 6 months 402,343 488,022 890,365 2 Business Manager 73,876 2,400 76,276 3 Detective assignment pay, $200/mo (10/1/15)43,200 43,200 4 Police Officer bilingual pay additional $0.50 to each level 47,269 47,269 5 Police Officer certification pay upgrade $200/month 77,418 77,418 6 Police education pay increase $600/year 47,728 47,728 7 Pano-scan Pointgun Scanner*68,000 68,000 8 3 helmet mounted night vision devices**45,000 45,000 9 3 night-ops laser targeting devices**5,100 5,100 10 2 night-ops sniper scopes 19,000 19,000 11 Contraband inspection kit for K-9 units 24,995 24,995 12 Mobile Command Post 4,000 133,110 137,110 13 Paint armored vehicle & emergency equipment 20,654 20,654 14 E-Ticket Printers - 1st year of 3 year roll-out 36,300 36,300 15 Animal License and Shelter Fees 2,000 Total Police 2,000 732,134 806,281 1,538,415 *Pano-scan Pointgun Scanner funded in Police Federal Seizure Fund 062. **10 additional devices already obtained through UASI grant and inter-local agreement with League City. Engineering & Capital Projects 1 Multi-Modal (Transportation) Master Plan - pushed to 2017 500,000 500,000 2 Atser Software Maintenance Upgrade*3,000 55,000 58,000 3 Travel 1,500 1,500 Total Engineering & Capital Projects 4,500 555,000 559,500 *$55,000 funded in CIP Communications Communications Intern (Oct 1 start)29,822 550 30,372 Total Communications 29,822 550 30,372 281 REVENUES RECURRING NON- RECURRING TOTAL SUPPLEMENTAL CITY OF PEARLAND FY 2016 ADOPTED BUDGET SUPPLEMENTAL AND CAPITAL REQUESTS GENERAL FUND **************EXPENDITURES************** Items in bold type and highlighted are funded in the budget. Items not in bold type are not funded in the FY 2015-2016 budget. PRIORITY/ DEPARTMENT DESCRIPTION Municipal Courts Increase PT Bailiff to Full-time 12 months (10/1/15)26,792 26,792 Total Municipal Courts 26,792 26,792 *$5,239 funded out of Court Security Fund Community Development 1 Reclass Office Assistant to Senior Office Assistant 3,330 3,330 2 Reclass Plans Examiner to Asst Building Official 9 mos. (1/1/16) 7,085 7,085 1 Plans Examiner 9 months (1/1/16)50,609 2,450 53,059 3 Temporary Receptionist - 1 yr 40 hrs/wk 31,200 31,200 4 Planning Services*50,000 50,000 5 Reclass Office Supervisor to Inspection Services Supervisor 7,434 7,434 6 Small Business Coordinator 6 months (4/1/16)36,500 2,450 38,950 7 Reclass 4 Permit Clerks to Permit Technicians 35,597 35,597 8 Hyperlink UDC/Development Handbook 110,000 110,000 9 Document Scanning/Archiving 65,000 65,000 Electrical Fee Increase - Residential & Commercial 60,785 Plumbing & Gas Fee Increase - Residential & Commercial 30,253 Mechanical Fee Increase - Residential only 14,520 Total Community Development 105,558 140,555 261,100 401,655 Public Works - General Fund 1 Facilities Assessment Study*50,000 50,000 2 Landscape Enhancements to contracted locations 102,000 102,000 3 Animal Services Facility Rehab**35,000 35,000 4 Rec Center Water Softener System 20,500 20,500 5 Rec Center Gymnasium Equipment Maintenance 7,722 7,722 6 Corridor Traffic Signal Timing 50,000 50,000 7 Landscape Architect 45,000 45,000 8 Dectron HVAC Training 12,000 12,000 9 Iphones for facilities 5,880 1,000 6,880 10 Replacement Tack Tank Asphalt Distributor Trailer 21,878 21,878 11 New Skid Steer 95,136 95,136 12 Replacement Dump Truck (unit TH111)150,060 150,060 13 Curb Line Maintenance Program 30,000 30,000 14 Pressure Washing of Flatwork Program 30,000 30,000 15 Broadway Landscape Enhancements (Mykawa - Smith Ranch Rd) 25,000 25,000 16 Broadway Landscape Enhancements (SH 288 - FM 521)150,000 150,000 17 Annexation - Signs, hardware, lane markings, and sign poles 34,144 34,144 *Original amount requested for Facilities Assessment Study was $250,000. **$35,000 for Animal Services Facility rehab is budgeted in Donation Fund 018. *$50,000 for Plan Review service is budgeted in the FY 2016 Planning Dept base; Dept requested an additional $50,000. 282 REVENUES RECURRING NON- RECURRING TOTAL SUPPLEMENTAL CITY OF PEARLAND FY 2016 ADOPTED BUDGET SUPPLEMENTAL AND CAPITAL REQUESTS GENERAL FUND **************EXPENDITURES************** Items in bold type and highlighted are funded in the budget. Items not in bold type are not funded in the FY 2015-2016 budget. PRIORITY/ DEPARTMENT DESCRIPTION Public Works - Water/Sewer Fund 1 Meter Testing 50,356 50,356 1 6" meter in vault replacement - PHS 13,777 13,777 1 6" combination meter - Tranquility Lakes Apt 10,300 10,300 1 Replacement Registers 93,500 93,500 2 Time Clocks - in ERP budget 13,170 13,170 3 Chemical Feeder 25,000 25,000 4 Water Facility Restroom at 518 water facility 15,000 15,000 5 RD 7000 plus Line locator 8,000 8,000 6 Chemical Containment Walls (Water Production)350,000 350,000 7 Infrastructure Management Program - deferred to 2017*30,000 250,000 280,000 Total Public Works 349,458 1,374,965 1,724,423 *Funding split General Fund and Water/Sewer Fund Utility Customer Services - Water/Sewer Fund 1 Revenues (excluding rate increase)9,750 Total Utility Billing 9,750 Other Requirements = WaterSewer Fund Rate Model 70,000 70,000 Total Other Requirements 70,000 70,000 CVB - Hotel/Motel Occupancy Tax Fund 1 Pear Trail 30,000 30,000 Arts Grants for Pear Trail creations 15,000 15,000 Total CVB 45,000 45,000 TOTAL GENERAL FUND 301,508 2,590,285 4,292,569 6,882,854 283 DEPARTMENT DESCRIPTION REVENUES RECURRING NON- RECURRING TOTAL SUPPLEMENTAL Public Works 1 Large Meter Testing 41,656 41,656 1 2" Meter Testing 8,700 8,700 1 6" meter in vault replacement - PHS 13,777 13,777 1 6" combination meter - Tranquility Lakes Apt 10,300 10,300 1 Replacement Registers 93,500 93,500 2 Time Clocks - in ERP budget 13,170 13,170 3 Chemical Feeder 25,000 25,000 4 Water Facility Restroom 15,000 15,000 5 RD 7000 plus Line locator 8,000 8,000 6 Chemical Containment Wall 350,000 350,000 7 Infrastructure Management Program - deferred to 2017*30,000 250,000 280,000 197,933 661,170 859,103 *Funding split General Fund and Water/Sewer Fund Utility Billing 1 Revenues 9,750 9,750 Other Requirements Rate Model 70,000 70,000 TOTAL WATER AND SEWER FUND 9,750 197,933 661,170 929,103 **************EXPENDITURES************** SUPPLEMENTAL AND CAPITAL REQUESTS WATER AND SEWER FUND FY 2016 ADOPTED BUDGET CITY OF PEARLAND 284 NON- DEPARTMENDESCRIPTION RECURRING RECURRING TOTAL Court Security Increase PT Bailiff to Full-time 5,239 5,239 5,239 5,239 Parks Development Fund 047 Resurface playground at Southdown Park 20,000 20,000 20,000 20,000 Police Federal Fund 062 Pano-Metric scanner - photograph equpment 68,000 68,000 68,000 68,000 TOTAL OTHER FUNDING SOURCES 5,239 88,000 93,239 CITY OF PEARLAND FY 2016 ADOPTED BUDGET OTHER FUNDING SOURCES SUPPLEMENTAL AND CAPITAL REQUESTS 285 THIS PAGE INTENTIONALLY BLANK 286 GLOSSARY A ABATEMENT – A complete or partial cancellation of a levy imposed by a government. Abatements usually apply to tax levies, special assessments and service charges. ACCOUNT – A term used to identify an individual asset, liability, expenditure control, revenue control, encumbrance control, or fund balance. ACCOUNTS PAYABLE – A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNT RECEIVABLE – An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government. ACCOUNTING SYSTEM – The total set of records and procedures, which are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL ACCOUNTING – A basis of accounting in which revenues are recognized in the period in which they are earned and become measurable, and expenses are recognized in the period incurred instead of when cash is actually received or spent. ACCRUED INTEREST – Interest that has been earned and recorded, but has not been received. AD VALOREM TAX – A tax based on value of land and improvements (property tax). AGENDA – A formal listing of items to be discussed during a public meeting. Agendas for public meetings are posted 72 hours in advance, in compliance with the open meetings act. APPROPRIATION – An authorization granted by City Council to make expenditures and to incur obligations for a specific purpose. Usually limited in amount and as to the time when it may be expended. ARBITRAGE – With respect to the issuance of municipal securities, arbitrage usually refers to the difference between the interest paid on tax-exempt bonds and the interest earned by investing the proceeds of the bonds in higher-yielding taxable securities. Federal income tax laws generally restrict the ability to earn positive arbitrage in connection with tax-exempt bonds. ASSESSED VALUATION – A valuation set upon real estate or other property by government as a basis for levying taxes. ASSETS – Property owned by a government, which has economic value, especially which could be converted to cash. AUDIT – A standardized, systematic and independent examination of data, statements, records, operations and performances of an enterprise for the purpose of examining for compliance with standardized procedures for managing cash on hand, receipts, payments, investments, and other allocations of monetary resources, capital assets or the use of personnel time and expertise. B BALANCE SHEET – A statement purporting to present the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. BALANCED BUDGET – Total recurring expenditures for any fiscal year shall not exceed total 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. 287 BOND REFERENDUM – A bond referendum is an opportunity for voters to decide if the city will be authorized to borrow funds to address specific capital project needs for which ad valorem taxes are pledged for repayment. BUDGET – A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. The term is also sometimes used to denote the officially approved expenditure ceiling under which a government and its departments operate. BUDGET CALENDAR – The schedule of key dates or milestones, which a government follows in the preparation and adoption of the budget. BUDGET DOCUMENT – The instrument used by the budget making authority to present a comprehensive financial program to the appropriating governing body. BUDGET INSTRUCTIONS – The guidance document produced by the City’s financial management unit, for use by departmentally-authorized personnel, establishing the annual practices and procedures for developing and submitting a proposed budget for approval by the City’s governing body. BUDGET MESSAGE – A general discussion of the adopted budget presented in writing as a part of or supplement to the budget document. BUDGETARY CONTROL – The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within limitations of available appropriation and available revenues. BUILT ENVIRONMENT – Human-made (vs natural) improvements such as infrastructure, buildings, parks, etc. C CAPITAL ASSETS – Long-term assets, such as buildings, equipment, and infrastructure, intended to be held or used in operations. CAPITAL PROJECTS –Acquisition or construction of major capital facilities. CAPITAL IMPROVEMENT PROGRAM – A plan for capital expenditures to be incurred each year over a fixed period of several future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount to be expended in each year, and the method of financing those expenditures. CAPITAL OUTLAY – Expenditures for the acquisition of capital assets. CAPITAL PROJECT FUNDS – Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds, special assessment funds and trust funds). CARRYOVER – Expenditures budgeted in one year for materials, equipment programs, etc., but not spent until the following fiscal year. Funding for non-recurring expenditures can carry over to the following fiscal year if approved by the City Manager and City Council. City Council formally amends the budget to approve carryover funding. Revenues can also carryover if they were anticipated in one fiscal year but not received until the following year. CASH BASIS – A method of accounting in which revenues and expenses are recognized and recorded when received, not necessarily when earned. CERTIFICATE OF DEPOSIT – A negotiable or non-negotiable receipt for monies deposited in a bank or other financial institution for a specified period for a specified rate of interest. CERTIFICATE OF OBLIGATION – A debt instrument that is issued by the City and has the same legal status as a general obligation bond. Proceeds from the issuance of the certificates may be used for the construction of public works or payment of contractual obligations for professional services. These certificates do not require voter approval. CHARTER – Written instrument setting forth principles and laws of government within boundaries of the City. CHART OF ACCOUNTS – The classification system used by the City to organize the accounting for various funds. 288 CHECK – A bill of exchange drawn on a bank and payable on demand. COMPONENT UNIT – A component unit is defined as a legally separate organization for which elected officials of the primary government (the City) are financially accountable. CONSUMER PRICE INDEX (CPI) – The monthly data on the changes in the prices paid by urban consumers for a representative basket of goods and services. CONTINGENCY – Funds set aside in a reserve account for major expenditures or for emergencies. COST – The amount of money or other consideration exchanged for property or services. Costs may be incurred even before money is paid; that is, as soon as a liability is incurred. Ultimately, however, money or other consideration must be given in exchange. CURRENT ASSETS – Cash and other assets expected to be converted to cash, sold, or consumed either in a year or in the operating cycle. CURRENT LIABILITIES – Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded within one year. DEBT SERVICE FUND – A fund used to account for the accumulation of resources for, and the payment of, general long-term debt principal interest, and related costs. Also called a Sinking Fund. DEFICIT – The excess of expenditures over revenues during an accounting period; or in the case of Enterprise and Intra-governmental Service Funds, the excess of expense over income during an accounting period. DEPARTMENT – A distinct, usually specialized division of a large organization. A principal administrative division of a government normally under the oversight of an Executive Director, Assistant City Manager or City Manager. DELINQUENT TAXES – Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. DEPRECIATION – A non-cash expense that reduces the value of an asset as a result of wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. DEVELOPER REIMBURSEMENT – Reimbursement to a developer from the City for infrastructure developed on behalf of the City. E EFFECTIVE TAX RATE – The tax rate required to generate the same amount of revenue as in the preceding year on the same properties. ENTERPRISE FUND – A fund used to account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self-supporting by user charges. The significant characteristic of Enterprise Funds is that the accounting system must make it possible to show whether the activity is operated at a profit or loss, similar to comparable private enterprises. Thus, the reports of enterprise funds self- contained and creditors, legislators or the general public can evaluate the performance of the municipal enterprise on the same basis as they can the performance of investor-owner enterprises in the same industry. EXPENDITURES – Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. EXTRATERRITORIAL JURISDICTION (ETJ) – The land bordering a City’s limits that the City has limited control over but does not furnish City services to nor collect ad valorem taxes from. This is an area outside of City limits that is subject to annexation. 289 F FIDUCIARY FUND – A fund used to account for assets held in trust by the City for the benefit of individuals or other entities and is responsible for handling the assets placed under its control. FISCAL YEAR – A twelve-month period of time to which the annual budget applies, and at the end of which, the City determines its financial position and results of operations. FIXED ASSETS – Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, and improvements other than land. FRANCHISE – A special privilege granted by a government, permitting the continued use of public property, such as City streets, and usually involving the elements of monopoly and regulation. FULL-TIME EQUIVALENT (FTE) – One full-time equivalent works 2,080 hours a year; a person working 1,040 hours per year is equivalent to 0.5 FTE. FUND – An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the purpose of carrying on specific activities or attaining certain objective. FUND BALANCE – The excess of an entity’s assets over its liabilities. FUND BALANCE POLICY – A minimum fund balance that is required to be kept in reserve as defined in financial policy statements. Fund balances over the policy requirements may be appropriated in the budget. G GENERAL FIXED ASSETS – Capital assets that are not assets of any particular fund, but of the government unit as a whole. Most often these assets arise from the expenditure of the financial resources of governmental (as opposed to proprietary or fiduciary) funds. GENERAL FUND – The General Fund is the general operating fund of the City. It is used to account for the resources devoted to finance the services traditionally associated with local government, except those activities that are required to be accounted for in another fund. Transactions are recorded on the modified accrual basis. GENERAL OBLIGATION BONDS – When a government pledges its full faith and credit to the payment of the bonds it issues, those bonds are general obligation bonds. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) – Uniform minimum standards and guidelines for financial accounting and reporting. GOVERNMENTAL FUNDS – Funds generally used to account for tax-supported activities. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects and Debt Service). GRANTS – A contribution by one government unit to another. The contribution is usually made to aid in the support of a specific function, purpose, activity or facility. GULF COAST WATER AUTHORITY – Created by the State Legislature in 1965, its main mission is to acquire water supplies, store, transport, treat and purify, sell and deliver water, both surface and underground, for industry, agriculture and municipalities in Brazoria, Fort Bend, and Galveston Counties. I 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. 290 INFRASTRUCTURE - Fixed assets that are immovable and have value only to the governmental unit. Common examples of infrastructure include roads, sidewalks, bridges and streetlights. INTERGOVERNMENTAL REVENUE – Revenue received from another governmental unit for a specific purpose. INTERNAL SERVICE FUND – Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. ISO RATING – The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting up the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to each fire department, which is used in the development of insurance rates for all properties within the protected area. Grading starts at 1, which is the best possible score and ends at 10, which is considered unacceptable. L LEASE/PURCHASE – A financing tool utilized to fund large capital outlays where the city may not have cash immediately available for purchase. This arrangement allows the city to use the item while payments are being made. LEDGER – A group of accounts in which are recorded the financial transactions of a governmental unit or other organization. LEVY - To impose taxes or special assessments. The total of taxes or special assessments imposed by a governmental unit. LIABILITIES – Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date. LONG-TERM DEBT – Debt with a maturity of more than one year after date of issuance. M MODIFIED ACCRUAL BASIS – The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MUNICIPAL UTILITY DISTRICT (MUD) – A special district whose purpose is to provide water and sewer services to the residences and businesses within its boundaries. The district has ad valorem taxing power and can issue bonds to pay for construction and improvements to the district’s system. Districts are typically established in unincorporated areas, but can also lie within the boundaries of one or more cities. N NOTE PAYABLE – An unconditional written promise signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time, either to the bearer or to the order of a person designated. O OPERATING BUDGET – Plans of current expenditures and the proposed means of financing them. ORDINANCE – A formal legislative enactment by the governing body of a municipality. ORGANIZATIONAL UNIT – A responsibility center within a government. P PERFORMANCE MEASURES – Specific quantitative measures of work performed within an activity or program. They may also measure results obtained through an activity or program. 291 PERSONNEL SERVICES – The costs associated with compensating employees for their labor (salaries, wages, insurance, payroll taxes, and retirement contributions). PROJECTION – A forecast of future trends in the operation of financial activities done through the remainder of the fiscal year to gain a better picture of the City’s finances. The projections are adopted as the revised budget during the budget adoption process. PROPERTY INSURANCE FUND – Accounts for the activities of the city’s property and casualty insurance. PROPERTY TAX – An annual or semi-annual tax paid to one or more governmental jurisdictions based on the real and personal property’s assessed valuation and the tax rate, done in compliance with the State Property Tax Code. PROPRIETARY FUND – A governmental accounting fund having profit and loss aspects; therefore, it uses the accrual rather than modified accrual accounting method. The two types of proprietary funds are the Enterprise Fund and the Internal Service Fund. PURCHASE ORDER – A document issued to authorize a vendor or vendors to deliver specified merchandise or render a specified service for a stated estimated price. R RATINGS – Designations used by credit rating agencies to give relative indications of credit quality. Municipal bonds rated Baa or BBB and above are considered to be investment-grade. REFUNDING BONDS – Bonds issued to retire bonds already outstanding. RESERVE – An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or not available for appropriation and subsequent spending. RETAINED EARNINGS – The accumulated earnings of an enterprise or internal service fund which have been retained in the fund and which are not reserved for any specific purpose. REVENUES – The term designates an increase to a fund’s assets. An item of income. REVENUE BONDS – Bond whose principal and interest are payable exclusively from earnings of an enterprise fund. ROLLBACK RATE – If a unit adopts a tax rate that is higher than the rollback rate, voters in the unit can circulate a petition calling for an election to limit the size of the tax increase. S SALARIES & WAGES – Fixed compensation paid to employees for work or services provided. SALES TAX – A state tax of 6.25% is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities and counties have the option of imposing additional local sales taxes for a combined total of state and local taxes of 8.25%. SHORT-TERM DEBT – Debt with a maturity of one year or less after the date of issuance. SPECIAL ASSESSMENT – Used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. SPECIAL REVENUE FUNDS - Fund is used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. STRUCTURAL IMBALANCE – In the budgetary process of matching ongoing expenditures with ongoing revenues, a condition that occurs when expenditures exceed revenues. 292 T TAX LEVY – The total amount to be raised by general property taxes for intentions specified in the Tax Levy Ordinance. TAX LEVY ORDINANCE – An ordinance through which taxes are levied. TAX RATE – The rate at which a municipality may levy a tax. Tax levied for each $100 of assessed valuation. The amount of tax stated in terms of a unit of the tax base. TAX ROLL – The official list showing the amount of taxes levied against each taxpayer or property. TAXES – Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. V VENDOR – The seller of merchandise or services. VOUCHER – A document, which evidences the propriety of transactions and usually indicates the accounts in which they are to be recorded. W WORK ORDER – A written order authorizing and directing the performance of a certain task and issued to the person who is to direct the work. WORKING CAPITAL – A financial metric which represents operating liquidity available to an organization or governmental entity. Net Working Capital is calculated as current assets minus current liabilities. Y YIELD – The rate earned on an investment based on the price paid for the investment, the interest earned during the period held and the selling price or redemption value of the investment. 293 ACRONYMS ACM – Assistant City Manager ACS – American Community Survey ADA – Americans with Disabilities Act of 1990 AISD – Alvin Independent School District BCLS – Brazoria County Library System CAFR – Comprehensive Annual Financial Report CDBG – Community Development Block Grant CH – City Hall CIP – Capital Improvement Program CM – City Manager CO’s – Certificates of Obligation and Certificates of Occupancy CPA – Certified Public Accountant CPAP – Continuous Positive Airway Pressure CPI – Consumer Price Index CPR – Cardiopulmonary Resuscitation CR – County Road CVB – Convention and Visitors’ Bureau DCM – Deputy City Manager DDACTS – Date Driven Approaches to Crime and Traffic Safety DS – Debt Service DWI/DUI – Driving While Intoxicated/Driving Under the Influence EDC – Economic Development Corporation EMPG – Emergency Management Program Grant EMS – Emergency Medical Services EMT – Emergency Medical Technician ERP – Enterprise Resource Planning ETJ – Extra Territorial Jurisdiction FF – Firefighter FF&E – Furniture, Fixtures & Equipment FIRMS – Flood Insurance Rate Maps FLSA – Fair Labor Standards Act FM – Farm-to-Market Road FOIA – Freedom of Information Act of 1966 FOG – Fats Oil Grease FS – Fire Station FT – Full-Time FTE – Full-Time Equivalent FY – Fiscal Year GAAP – Generally Accepted Accounting Principals GASB – Governmental Accounting Standards Board GF – General Fund 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 HERO – Housing Enforcement & Rehab Opportunity HGAC – Houston-Galveston Area Council HHW – Household Hazardous Waste HIDTA – High Intensity Drug Trafficking Area HR – Human Resources HTE – Harward Technology Enterprise (The City’s current ERP, by Sungard) HUD – Housing and Urban Development HVAC – Heating, Venting & Air Conditioning ICC – International Code Council I&I – Inflow and Infiltration IS – Information Systems 294 ISO – Insurance Service Office IT – Information Technology ITS – Intelligent Traffic System JAT – Job Assessment Tool JHEC – John Hargrove Environmental Complex KPB – Keep Pearland Beautiful LF – Linear Feet LKMD – Lower Kirby Management District LS – Lift Station LTD – Limited LUCAS – Lund University Cardiac Arrest System M – Millions MDT – Mobile Data Terminal MGD – Million Gallons per Day MHI – Median Household Income/Mitsubishi Heavy Industries MSA – Metropolitan Statistical Area MUD – Municipal Utility District NIC – Net Interest Costs O&M – Operations & Maintenance P&Z – Planning & Zoning PC - Personal Computer PCI – Pavement Condition Index PD – Police Department PEDC – Pearland Economic Development Corporation PEG – Public, Educational and Government Channel (television) PER – Preliminary Engineering Report PFIA – Public Funds Investment Act PGSA – Pearland Girls Softball Association Phs – Phase (as in construction phase I, II) PHS – Pearland High School PISD – Pearland Independent School District PMMD – Pearland Municipal Management District PSB – Public Safety Building PT – Part-time PTC – Pearland Town Center QA/QI – Quality Assurance/Quality Improvement RC/N – Recreation Center/Natatorium RD – Radio Detection ROW – Right-of-Way ROWs – Right-of-Ways RSA – Recognized Sports Association S&P – Standard & Poor’s SAN –Storage Area Network SCADA – Supervisory Control and Data Acquisition SCBA – Self Contained Breathing Apparatus SCR – Shadow Creek Ranch SEC – Securities and Exchange Commission SF – Square Feet/Foot SH288 – State Highway 288 SNAP – Safe Neighborhoods Around Pearland SPA – Strategic Partnership Agreement SQ. FT. - Square Foot/Feet SRO – School Resource Officer SUI – State Unemployment Insurance SUV – Sports Utility Vehicle TAAF – Texas Amateur Athletic Foundation TCEQ – Texas Commission on Environmental Quality TCLEOSE – Texas Commission on Law Enforcement Officers Standards and Education 295 TCO – Telecommunications Operator TCOLE - Texas Commission on Law Enforcement Officers Standards and Education TIC – True Interest Costs TIP – Transportation Improvement Plan TML – Texas Municipal League TMRS – Texas Municipal Retirement System TIRZ – Tax Increment Reinvestment Zone TxDOT – Texas Department of Transportation TWDB – Texas Water Development Board UCR – Uniform Crime Reporting UDC – Unified Development Code UHCL – University of Houston-Clear Lake UofH – University of Houston W&S – Water & Sewer W/S – Water & Sewer WEC – Westside Events Center WWM – Waste Water Management WWTP – Waste Water Treatment Plant ZBA – Zoning Board of Adjustment 296 City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Phone: 281.652.1600 Email: cityofpearland@pearlandtx.gov pearlandtx.gov Fiscal Year Adopted Budget 2015 _ 2016 pearlandtx.gov Fiscal Year Adopted Budget CITY OF PEARLAND, TEXAS