The URL can be used to link to this page

Ord. 1529 2016-09-12ORDINANCE NO.1529 An appropriation ordinance adopting a budget for the fiscal year beginning October 1, 2016, and ending September 30, 2017, and pay plans for fiscal year 2017. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's proposed 2016-2017 Budget, attached hereto as Exhibit "A", be adopted in compliance with provisions of Article 8 of the Home Rule Charter of the City of Pearland, Texas which sets forth certain specific requirements as to the City of Pearland, Section 2. That City Council hereby appropriates certain sums, more specifically identified on Exhibit "A" attached hereto, for the proposed fiscal year 2016-2017 Budget. Section 3. That the City Council hereby confers upon the City Manager general authority to contract for expenditures without further approval of the Council for all budgeted items the cost of which do not exceed the constitutional and statutory requirements for competitive bidding. Section 4. That the City Council deems the Pay Plans (Exhibit "B") and Organizational Plan contained in the 2016-2017 Budget to be in the best interest of the City and is hereby adopted. Section 5. That this ordinance shall become effective from and after its passage on second and final reading. PASSED and APPROVED ON FIRST READING this the 12'hday of September, A. D., 2016. ?,L TOM REID MAYOR ORDINANCE NO.1529 ATTEST: ''',,,,,,,,k, ......`` PASSED and APPROVED ON SECOND and FINAL READING this the 19'" day of September, A. D., 2016. TOM REID MAYOR ATTEST: APPROVED AS TO FORM: �---_ &r- DARRIN M. COKER CITY ATTORNEY 2 RESPONSIVE 1 RESULTS -ORIENTED 1 TRUST -BUILDERS 1 ACCOUNTABLE Ordinance No. 1529 Exhibit "A" CITY OF PEARLAND, TEXAS FISCAL YEAR 2016-2017 PROPOSED BUDGET 2nd Reading SEPTEMBER 19, 2016 RESPONSIVE 1 RESULTS -ORIENTED 1 TRUST -BUILDERS 1 ACCOUNTABLE FY 2017 BUDGET - ALL FUNDS Total: First Reading Reductions 9/12/16 Proposed Budget $297,672,208 299,340 $297,372,868 RESPONSIVE 1 RESULTS -ORIENTED 1 TRUST -BUILDERS 1 ACCOUNTABLE 0 CITY COUNCIL APPROVED REDUCTIONS c e 2017 2017 City Manager Council Recommended Changes Approval Enterprise Fund Removed Mowing Contract Expenditure 226.740 (226.740) 0 Parks Donation Fund Removed 2nd day of Winterfest during Super Bowl Weekend Revenue Expenditure 120,000 150,000 (20,000) (30,000) Convention & Visitors' Bureau - Hotel/Motel Occupancy Tax Fund Removed 2nd day of Winterfest during Super Bowl Weekend Expenditure 144,000 (42,600) 100,000 120.000 101,400 RESPONSIVE 1 RESULTS -ORIENTED 1 TRUST -BUILDERS 1 ACCOUNTABLE FY 2016-2017 BUDGET FY 2016-17 Recommended Budget $297,372,868 Fund Description General P.E.D.C. Debt Service -General EXHIBIT A City of Pearland Fiscal Year 2016-2017 Proposed Budget REVENUES EXPENDITURES 2017 Proposed 2017 Proposed $74,249,777 $10,832,926 $34,974,788 5 76,454,035 $ 15,903,568 $ 36,107,359 Special Revenue Funds Municipal Court Security $53,050 $ 62,031 Citywide Donation $21,900 $ Court Technology $60,010 $ 73,579 Court Juvenile Management $85,100 $ 63,301 Traffic Impact Improvement $2,500 $ Hotel/Motel $1,551,500 $ 1,072,180 Parks Donations $101,100 $ 127,500 Park & Recreation Development $53,000 $ 418,250 Tree Trust $10 $ 6,000 Sidewalk $5,000 $ Police State Seizure $250 $ 35,100 Federal Police $65 $ Grant $196,955 $ 196,926 Community Development $325,431 $ 325,431 University of Houston Capital Renewal Fund $0 $ 302,171 Municipal Channel $307,800 $ 502,675 $0 $ Internal Service Fund SO $ Property/Liability Insurance $1,470,812 $ 1,370,267 Medical Self -Insurance $7,461,188 $ 7,505,354 $0 $ Proprietary Funds 50 $ Water and Sewer $44,810,025 $ 45,392,022 Solid Waste $7,150,864 $ 7,145,789 SUB TOTAL - OPERATIONS CAPITAL IMPROVEMENT PROGRAM (CIP)- Water/Sewer Capital Projects Funds Utility Impact Fee Shadow Creek Impact Fee 1999 W & S Revenue Bonds Water/Sewer Pay As You Go MUD 4 Capital Program $ 183,714,051 $ 193,063,538 522,701,410 $ 42,161,199 $860,000 $ 700,000 $13,578,620 $ 13,648,754 $552,500 $ 605,459 $150 $ Capital Projects Funds Capital Projects $102,500 $ 261,279 Capital Projects -CO 2001 $7,071,058 S 13,059,703 Capital Projects -CO 2006 $ 481,331 Capital Projects -GO Series 2009 $32,989,782 $ 33,391,605 SUB TOTAL - CIP $ 77,856,020 $ 104,309,330 GRAND TOTAL: $ 261,570,071 $ 297,372,868 6 EXHIBIT B City of Pearland FY 2017 Pay Plan Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual 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 72 589,667 $43.1092 $112,084 $53.8865 5134,501 564.6638 Assistant Police Chief 71 $87,480 $42.0577 $109,350 $52.5722 $131,220 $63.0866 70 $85,346 $41.0319 $106,683 $51.2899 $128,020 $61.5479 69 $83,265 $40.0312 $104,081 $50.0389 $124,897 $60.0467 Vice President - EDC 68 $81,234 $39.0548 $101,542 $48.8185 $121,851 $58.5822 67 $79,253 $38.1022 $99,066 $47.6278 $118,879 $57.1533 Assistant City Attorney 66 $77,320 $37.1729 $96,650 $46.4661 $115,979 $55.7594 City Secretary 65 $75,434 $36.2662 $94,292 $45.3328 $113,151 $54.3994 Assistant Fire Chief 65 Assistant Director of Engineering 65 Assistant Director, Finance 64 $73,594 $35.3817 $91,992 $44.2271 $110,391 $53.0726 Capital Projects, Assistant Director 64 City Planner 64 Assistant City Engineer 63 571,799 534.5187 $89,749 543.1484 5107,698 551.7781 Assistant Director, Public Works 63 62 $70,048 $33.6768 587,560 $42.0960 5105,072 $50.5152 Assistant Director, Parks & Recreation 61 $68,339 $32.8554 $85,424 $41.0693 $102,509 $49.2831 Budget Officer 60 $66,672 $32.0541 $83,341 $40.0676 $100,009 $48.0811 Building Official 60 Director, Marketing (EDC) 60 Manager, Information Technology 60 Manager, Facilities 60 Fire Marshal 60 Emergency Management Coordinator 60 Purchasing Officer 60 Associate City Attorney 59 565,046 531.2723 581,308 539.0903 597,569 546.9084 58 $63,460 $30.5095 $79,325 $38.1369 $95,190 $45.7643 Planner, Senior 58 Manager, Project 57 $61,912 $29.7654 $77,390 $37.2067 $92,868 $44.6481 Municipal Court Prosecutor 57 7 EXHIBIT B City of Pearland FY 2017 Pay Plan Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Accounting Supervisor Financial Analyst Manager, Animal Control 56 $60,402 $29.0394 $75,502 $36.2993 $90,603 $43.5591 56 56 Manager, GIS 55 $58,929 $28.3311 $73,661 $35.4139 $88,393 $42.4967 System Administrator 55 Municipal Court Administrator 55 Manager, Sales and Event (CVB) 55 Manager, Water Billing & Collection 55 HR Manager 55 Risk Manager 55 Superintendent 54 $57,491 $27.6401 $71,864 $34.5502 $86,237 $41.4602 Senior Budget Analyst 54 Manager, Acquisition 53 $56,089 $26.9660 $70,112 $33.7075 $84,134 $40.4490 Planner, Associate 52 $54,721 $26.3083 $68,402 $32.8853 $82,082 $39.4624 Budget Analyst 52 Senior Accountant 52 GIS Specialist 52 Management Assistant 52 Crime Analyst 52 Grants Coordinator 52 HR Business Partner 52 Manager, Traffic 52 Development Coordinator 52 Manager, Sales and Event (CVB) 51 $53,387 $25.6666 $66,733 $32.0833 $80,080 $38.4999 Deputy Fire Marshal 50 $52,084 $25.0406 $65,106 $31.3007 $78,127 $37.5609 Jail Division Supervisor 50 Police Support Services Supervisor 50 Staff Accountant 50 Construction Inspector, Chief 49 $50,814 $24.4298 $63,518 $30.5373 $76,221 $36.6448 Associate Engineer 49 Emergency Management Planner 48 $49,575 $23.8340 $61,968 $29.7925 $74,362 $35.7510 Fire Inspector/Investigator 48 Health & Environmental Services Supervisor 48 Safety & Risk Coordinator 48 Manager, Resource Development 48 Planner 48 Manager, Marketing (CVB) 48 Deputy City Secretary 47 $48,366 $23.2527 $60,457 $29.0659 $72,548 $34.8790 Executive Assistant 47 8 EXHIBIT B City of Pearland FY 2017 Pay Plan Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Assistant Manager Recruitment Coordinator Training & Development Coordinator Plans Examiner Building lnspector Police Telecommunications Coordinator Humane Officer, Senior Aquatics 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 Backflow Compliance Manager Crime Victim Liaison Multimedia Specialist Addressing Coordinator IT Support Specialist Project Coordinator Vol Fire Recruit/Retention Coordinator Buyer Payroll Specialist Chief Mechanic Therapeutic Recreation Specialist Public Works Infrastructure Liaison Telecommunications Operator, Lead Lead Jailer Urban Forester Accounts Payable Supervisor Community Outreach Coordinator Legal Secretary Office Supervisor Customer Service Supervisor Volunteer Coordinator Facility Supervisor 46 46 46 46 45 45 45 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 43 43 43 42 42 42 42 41 41 41 41 40 40 40 40 40 40 40 $47,186 $22.6855 $46,035 $22.1322 $44,912 $21.5924 $58,982 $28.3569 $57,544 $27.6653 $56,140 $26.9905 $70,779 $34.0283 $69,053 $33.1984 $67,368 $32.3886 $43,817 $21.0658 $54,771 $26.3322 $65,725 $31.5987 $42,748 $20.5520 $41,705 $20.0507 $40,688 $19.5617 $53,435 $25.6900 $52,132 $25.0634 $50,860 $24.4521 $64,122 $30.8280 $62,558 $30.0761 $61,032 $29.3425 Electrician 39 $39,696 $19.0846 $49,620 $23.8557 $59,544 $28.6268 Telecommunications Operator, Intermediate 39 9 EXHIBIT B City of Pearland FY 2017 Pay Plan 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 HR Assistant Utility Field Service Technician, Lead Videographer / Editor 38 $38,728 $18.6191 $48,410 $23.2739 $58,092 $27.9286 38 38 38 38 38 38 38 38 38 38 Code Enforcement / Health Officer 37 $37,783 $18.1650 $47,229 $22.7062 $56,675 $27.2474 Crime Victim Specialist 37 Humane Officer 37 Animal Shelter Supervisor 37 Jailer 37 Telecommunications Operator, Basic 37 Administrative Assistant 36 536,862 $17.7219 $46,077 $22.1524 $55,292 $26.5829 Chief Court Clerk 36 Juvenile Case Manager 36 Building Maintenance Technician 36 Traffic Signal Technician 36 Park Maintenance Crew Leader 35 $35,963 $17.2897 $44,953 $21.6121 $53,944 $25.9345 Police Cadet 35 Treatment Plant Operator I 34 $35,085 $16.8680 $43,857 $21.0850 $52,628 $25.3020 Utility Maintenance Technician 34 CCTV Technician 34 Pre -Treatment Technician 34 Property Room Technician 33 534,230 $16.4566 $42,787 $20.5707 $51,344 $24.6848 Quartermaster 33 Custodial Crew Leader 32 $33,395 $16.0552 $41,743 $20.0690 $50,092 $24.0828 Mechanic 32 Records and Information Coordinator 32 Traffic Signal Technician, Trainee 32 31 $32,580 $15.6636 $40,725 $19.5795 $48,870 $23.4954 Accounts Payable Clerk 30 $31,786 515.2815 $39,732 $19.1019 $47,678 $22.9223 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 10 EXHIBIT B City of Pearland FY 2017 Pay Plan Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Deputy Court Clerk, Senior ROW Inspector Humane Officer, Trainee Animal Shelter Attendant Office Assistant, Senior Court Bailiff 29 $31,010 $14.9088 $38,763 $18.6360 $46,516 $22.3632 29 29 29 28 $30,254 $14.5452 $37,818 $18.1815 $45,381 $21.8178 27 $29,516 $14.1904 $36,895 $17.7380 $44,274 $21.2857 Utility Field Service Technician 27 Equipment Operator 26 $28,796 $13.8443 $35,995 $17.3054 $43,194 $20.7665 Fleet Services Assistant 26 Facility Attendant 26 Records and Information Coordinator, Ass't 26 Senior Center Shuttle Bus Driver 26 Utility Maintenance Worker 26 Deputy Court Clerk 25 $28,094 $13.5067 $35,117 $16.8833 $42,141 $20.2600 Customer Service Representative 24 $27,409 $13.1772 $34,261 $16.4715 $41,113 $19.7658 Permit Clerk 24 Police Records Clerk 24 Sign Technician 24 23 $26,740 $12.8558 $33,425 $16.0698 $40,110 $19.2838 Building Maintenance Worker 22 $26,088 $12.5423 $32,610 $15.6778 $39,132 $18.8134 Office Assistant 22 Park Maintenance Worker 22 Receptionist 22 Custodian Water Safety Instructor 21 $25,452 $12.2364 $31,815 $15.2955 $38,177 $18.3546 20 $24,831 $11.9379 $31,039 $14.9224 $37,246 $17.9069 19 $24,225 $11.6468 $30,282 $14.5584 $36,338 $17.4701 18 $23,634 $11.3627 $29,543 $14.2034 $35,452 $17.0440 17 $23,058 $11.0855 $28,822 $13.8569 $34,587 $16.6283 16 $22,496 $10.8152 $28,119 $13.5190 $33,743 $16.2227 15 $21,947 $10.5514 $27,434 $13.1892 $32,920 $15.8271 Camp Coordinator 15 14 $21,412 $10.2940 $26,764 $12.8675 $32,117 $15.4410 13 $20,889 $10.0430 $26,112 $12.5537 $31,334 $15.0644 12 $20,380 $9.7980 $25,475 $12.2475 $30,570 $14.6970 11 EXHIBIT B City of Pearland FY 2017 Pay Plan Position Title Salary Range Minimum Annual Minimum Hourly Midpoint Annual Midpoint Hourly Maximum Annual Maximum Hourly Head Lifeguard Recycling Center Attendant Lifeguard W/WSI 11 $19,883 $9.5590 $24,853 $11.9488 $29,824 $14.3385 10 $19,398 $9.3259 $24,247 $11.6574 $29,097 $13.9888 9 $18,925 $9.0984 $23,656 $11.3730 $28,387 $13.6476 8 $18,463 $8.8765 $23,079 $11.0956 $27,695 $13.3148 Ballfield Attendant 7 $18,013 $8.6600 $22,516 $10.8250 $27,019 $12.9900 Fitness Attendant 7 Lifeguard 7 Camp Counselor 7 Recreation Attendant 7 6 $17,573 $8.4488 $21,967 $10.5610 $27,459 $13.2012 5 517,145 $8.2427 $21,431 $10.3034 $26,789 $12.8793 4 $16,727 $8.0417 $20,908 $10.0521 $26,135 $12.5651 3 $16,319 $7.8455 $20,398 $9.8069 $25,498 $12.2587 2 $15,921 $7.6542 $19,901 $9.5677 $24,876 $11.9597 1 $15,532 $7.4675 $19,416 $9.3344 $24,269 $11.6680 12 EXHIBIT B CITY OF PEARLAND FIRE PAY PLAN FY 2017 Fire Certified Personnel (48/96) Salary Range Job Title Rank MINIMUM MIDPOINT MAXIMUM 2756 annual hours 2756 annual hours 2756 annual hours Annual Hourly Annual Hourly Annual Hourly F-1 Firefighter Firefighter 547,277 517.1542 559.096 521.4428 $70,916 525.7313 F 2 Driver/Operator Field Training Officer Driver/Operator 2nd Lieutenant $52.185 $18.9351 S65,231 $23.6688 $78,278 $28.4026 F-3 Lieutenant Lieutenant $57,603 $20.9009 572.004 $26.1262 $86,405 531.3514 F-4 Captain Captain $65.137 523.6346 S81.421 $29.5433 $97,706 535.4519 F-5 Battalion Chief Battalion Chief $73,542 526.6843 591,928 $33.3554 $110,313 540.0265 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-5 Paramedic Paramedic $32.079 $15.42261 $40,099 $19.27821 $48,119 523.1339 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 lire 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 Clinical Manager Training Captain Captain 565.137 $31.3159 581.421 539.1448 597,706 546.9738 F-7 Logistics Battalion Chief Battalion Chief $73.542 $35.3567 591,928 544.1959 $110,313 $53.0351 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 59,525.00 VF -2 Driver/Operator Driver/Operator 58.0026 59.525.00 VF -3 Lieutenant Lieutenant 58.8333 59.525.00 VF -4 Captain Captain 59.9888 59,525.00 VF -5 Battalion Chief Battalion Chief $11.2776 59,525.00 Maximum annual salary will not exceed the hourly rate times 999 hours or the Maximum annual amount shown, whichever comes first. 13 EXHIBIT B CITY OF PEARLAND CIVIL SERVICE PAY PLAN FY 2017 `indicates number of authorized position in each classification. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032. When Classified Employee is eligible. shift differential pay is $86.00 bi-weekly. Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief, will receive $100.00/bi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. 14 0 1 2 3 4 5 6 7 8 9 10 11 Police 525.9085 $26.6858 S27.4863 $28.3109 529.1603 530.0351 530.9361 $31.8642 532.8201 $33.8047 534.8189 535.8634 Officer 54,490.81 54.625.53 54.764.30 54,907.23 $5.054.45 55.206.08 $5.362.26 55,523.13 55.688.82 $5,859.49 56,035.27 56,216.33 137' $53 889.71 $55 506.40 557 171.59 558,886 74 560,653.34 $62,472.94 564 347 13 $66.277.55 $68,265.87 S70 313.85 $72.423.26 574,595.96 `indicates number of authorized position in each classification. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032. When Classified Employee is eligible. shift differential pay is $86.00 bi-weekly. Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief, will receive $100.00/bi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. 14 1st year 2nd year 3rd year 4th year 5th year 6th year Sergeant 536.9393 $6.402.82 538.0475 56.594.90 539.1890 56.792.75 540.3646 56,996.53 S41.5756 57.206.43 542.8228 57.422.62 19' 576,833.84 579.138.86 581 513.02 583.958.41 , 586,477.16 589.071.48 1st year 2nd year 3rd year 4th year 544.1075 545.4307 546.7937 $48.1975 Lieutenant 57,645.30 57,874.66 58,110.90 58.354.23 6" $91.743.62 $94,495.93 597,330.81 5100,250.73. 1st year 2nd year 3rd year 549.6434 551.1327 552.6667 Captain 58.604.85 58,863.00 59.128.89 3' 5103 258.26 5106.356.00 5109.546.68 `indicates number of authorized position in each classification. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032. When Classified Employee is eligible. shift differential pay is $86.00 bi-weekly. Those Police Officers and Sergeants assigned to the Criminal Investigation Divison as Detective, such assignments at the discretion of the Chief, will receive $100.00/bi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. 14 REVENUES ATTACHMENT 1 FY 2017 CHANGES TO BUDGET SEPTEMBER 19, 2016 2015. 2016 2017 2017 Actual Amended City Manager Council Amount Budget Recommended Changes Approval Comments PARKS DONATION FUND Special Events EXPENDITURES GENERAL FUND 1111 09,", 100.000 120,000 (20.000) 100.000 Remove 2nd day of Winterfest Department 150 - Other Requirements J 1 Other Contingencies - : 250 000 425.000 675.000 5225 000 earmarked for future Pobce Fleet Replacements in the Internal Service Motor Pod Fund $200 000 to move to Community Development for positions. Department 305 - Public Works Division 310 - Streets & Drainage 5200.02 Buildings & Grounds Pavement 5600 01, Capital Outlay Sidewalk - New Division 330 - Facilities Management 620.1 22 Bu.dings & Crcunj, 393.199 1.532 512 515,512 585.000 1.100.512 Added 5435.000 from .6812 O&M rate: 5150,000 added from the Medicare reimbursement for ambulance fees 1464.5 12 537,114 328.760 300.000 628,760 Added 5200,000 from .6812 O&M rate: 5100.000 added from the Medicare reimbursement for ambulance fees 383 027 294 805 179220 200.000 379.220 Facilities Repairs and Maintenance Program Fund 100 - General Fund Totals 2,240.758 2.381.698 1,273.492 1.510.000 2,783.492 ENTERPRISE - WATER/SEWER FUND 5400.09 Department 305 - Public Works Division 305 - Grounds Maintenance Buildings & Grounds 221, 740 ??2 740, 0 Remove Moving Contract DEBT SERVICE FUND Defeasance '.500.002 Fund balance from 2016 used for defeasance of debt HOTEUMOTEL OCCUPANCY TAX - CONVENTION & VISITORS' BUREAU Programs 11;i 13' 50.146 113.130 (42,600) 70.536 Remove 2nd day of Winterfest PARKS DONATION FUND Special Events '10 571 90 000 120 000 (30.000) 90.000 Remove 2nd day of Winterfest 15 DEBT SERVICE FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 PROPOSED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Proposed Actual Budget Amended Budget OPERATING REVENUES Property Taxes S 28.757,970 S 30,293,599 $ 31,045,687 $ 33,532,286 Miscellaneous 816,491 786,039 1,220,866 888,736 Transfers 613,411 607,997 797,199 553,766 Bond Proceeds 54,773,103 29,325,323 TOTAL 84,960,975 31,687,635 62,389,075 34,974,788 OPERATING EXPENDITURES Rebates & Miscellaneous Bond Payment Short -Term Note 4,824,335 78.442, 789 1,196,172 6,198,194 24,400,373 929,640 5,497,146 54,585,454 929,640 6,687,537 27,508,322 1,911,500 TOTAL 84,463,296 31,528,207 61,012.240 36,107,359 REVENUES OVER (UNDER) EXPENDITURES 497,679 159,428 1,376,835 (1,132,571) FUND BALANCE - BEGINNING 4,535,937 4,988,996 5,033,616 6,410,451 FUND BALANCE - ENDING $ 5,033,616 $ 5,148,424 $ 6,410,451 $ 5,277,880 Reserve 10% Over Policy 2,968,885 2,064,732 3,152,821 1,995,603 3,085,662 3,324,788 3,610,736 1,667,144 16 GENERAL FUND - 100 SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 PROPOSED BUDGET OVERVIEW The General Fund provides the financing for all of the City of Pearland's basic services except water, sewer and solid waste, which is accounted for through the Water & Sewer and Solid Waste Funds. The principal sources of revenue include property taxes, sales, 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 54.8% 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 547 full-time employees and 151 part-time employees including paid volunteers, utilities, fuel, park and right-of-way maintenance, and street lighting. just to name a few. FY2016 FY2016 FY 2017 FY2015 ORIGINAL YEAR END PROPOSED ACTUAL BUDGET AMENDED BUDGET REVENUES Property Taxes 13,261,422 14,190,297 14,292,773 18,502,590 Sales and Use Taxes 19,073,940 20,594,329 19,746.556 20,526,818 Franchise Fees 6,663,788 7,003,454 6,770,450 6,930,000 Licenses & Permits 4.550,094 3,967,489 4,913,295 5,183,830 Fines & Forfeitures 2,968,634 2,919,450 2,899,950 2,902,500 Charges for Service 13,442,538 15,108,928 14,649,885 15,250,614 Miscellaneous 1,824,774 1,659,083 3,032,855 1,590,153 Transfers in 3,580,712 3,448,391 3,167,622 3,263,272 Other Financing Sources 574,049 900,000 1,800,000 100,000 TOTAL REVENUES 65,939,951 69,791,421 71,273,386 74.249,777 EXPENDITURES General Government Public Safety Community Services Public Works Parks & Recreation Total Operating Expenditures Transfers Out TOTAL EXPENDITURES Revenues Over/(Under) Expenses 9,552,291 11,430,573 12,359, 756 12,255,286 33,692,260 38,631,959 40,099,528 40,300,860 3,163,999 3,304,003 3,517,534 3,577,288 10,592,610 11,806,888 12,976,333 12,912, 065 5,706,921 6,744,751 6,711,925 6,205,747 62,708,081 71,918,174 75,665,076 75,251,246 1.332,134 1,354,768 2,554,768 1,202.789 64,040,215 73,272,942 78,219,844 76,454,035 1,899,736 (3,481,521) (6,946,458) (2,204,258) Beginning Fund Balance 19,454,501 15,559,633 21,354,237 14,407,779 Ending Fund Balance 521,354,237 $12,078,112 $14,407,779 $12,203,521 Policy - 2 months Recurring Oper. Fund Balance over Policy 11,168, 568 909,544 11,199.984 3,207,795 11.582.786 620.735 17 WATER AND SEWER FUND FY 2017 PROPOSED BUDGET OVERVIEW The Water & Sewer Fund is an enterprise fund that includes water and sewer system operations. The fund is operated in a manner similar to private business enterprises, where costs of providing the services to the public are financed primarily through user charges. The City provides water and sewer service to approximately 36,000 residential and commercial customers. Water & Sewer revenues provide 90% 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 2017, a water and sewer revenue increase of 20.5% is required to meet the needs of the system, which consists of $982,522 from growth and $6,965,907 from rate adjustments. FY 2016 FY 2016 FY 2017 FY 2015 ORIGINAL YEAR END PROPOSED ACTUAL BUDGET AMENDED BUDGET REVENUES SALE OF WATER $15,581,945 $17,846,715 $18,500,000 $19,793,158 SEWER REVENUES 12,862,796 16,181,749 15,600,000 20,442,367 OTHER SERVICE CHARGES 1,756,051 1,617,554 1,618,750 1,604,000 INVESTMENT EARNINGS 232,170 105,000 123,500 125,000 OTHER MISCELLANEOUS INCOME 219,422 232,557 175,557 195,500 TRANSFERS IN 3,368,959 2,582,700 2,582,700 2,650,000 OTHER FINANCING SOURCES 5,718,964 423,293 TOTAL 39,740,307 38,566,275 39,023,800 44,810,025 EXPENSES UTILITY CUSTOMER SERVICES 961,043 1,173,683 1,140,963 1,283,371 INFORMATION TECHNOLOGY/GIS 119,676 175,429 226,264 466,890 OTHER REQUIREMENTS 18,221,353 17,730,759 15,060,822 19,867,217 PUBLIC WORKS PUBLIC WORKS OPERATIONS ADMINISTRATION 640,717 568,079 614,636 762,221 WATER/SEWER GROUNDS 416,856 439,456 431,033 408,705 LIFT STATIONS 987,956 1,398,412 1,975,104 1,626,262 WASTEWATER TREATMENT 4,842,682 4,614,742 5,826,496 6,039,220 WATER PRODUCTION 7,496,149 7,982,126 10,169,713 9,907,878 DISTRIBUTION & COLLECTION 1,799,878 2,023,112 2,595,181 2,479,306 CONSTRUCTION 559,835 733,434 827,452 789,777 WATER METER SERVICES 1,240,439 1,583,527 1,524,287 1,761,175 TOTAL 37,286,585 38,422,759 40.391,951 45,392,022 REVENUES OVER/(UNDER) EXPENSES 2.453,721 143,516 (1.368,151) (581,997) Beginning Cash Equivalents 15,373,775 11,940,401 15,624,805 14,256,654 Reserve for Debt Service 1,929,503 2,623,222 2,623,222 2,688,411 Ending Cash Equivalents $15,897,993 59.460,695 511,633,432 $10,986,246 Bond Coverage - 1.4 0.65 1.50 1.65 Cash Reserve Ratio - 25% 43% 29% 25% 18 HOTEL/MOTEL OCCUPANCY TAX FUND CONVENTION & VISITORS' BUREAU SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Hotel/Motel Occupancy Tax Fund is used to account for revenues realized from hotel occupancy taxes. Local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the administrative expenses for registering convention delegates, pay for tourism -related advertising and promotions, fund programs that enhance the arts or pay for historic preservation or restoration projects, and pay for sports related expenses pursuant to state law that will enhance tourism. By law, cities with populations of less than 125,000 must spend at least 1% of hotel tax receipts on advertising, no more than 15% on art programs and a maximum of 50% on historic preservation. In fiscal year 2016, the City funded $30,000 for a Pear Arts Trail through the 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. Fiscal year 2017 revenue is anticipated to be $1,551,500 with occupancy tax revenue at $1,550,000, and total expenditures of $1,114,780. 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 one part-time receptionist in the Visitors' Center. The budget also continues familiarization trips for hosting planners and press to network for future business and showcasing Pearland workshops for hotels. In fiscal year 2017, Houston will host the NFL Superbowl. With the close proximity to Pearland, the City anticipates a high occupancy rate in the hotels for this event and has budgeted a total of $101,400 to provide trolley car and shuttle bus service to/from Pearland hotels to city restaurants and attractions and a super concert event on the Saturday before Superbowl. Fund balance at September 30, 2017 is estimated to be $4,714,823 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES HOTEL/MOTEL OCCUPANCY TAX $ 1,492,169 $ 1,525,233 $ 1,525,233 $ 1,550,000 INVESTMENT EARNINGS 11,348 10,000 2,000 1,500 MISCELLANEOUS 7,506 TOTAL 1,511,022 1,535,233 1,527,233 1,551,500 EXPENDITURES SALARIES & WAGES 254,978 271,868 280,536 286,567 MATERIALS & SUPPLIES 52,183 108,000 115,336 90,736 MAINTENANCE BUILDINGS & GROUNDS 80 MAINTENANCE EQUIPMENT 241 MISCELLANEOUS SERVICES* 273,788 276,969 295,966 431,826 REBATE TO HILTON HOTEL 216,275 224,995 224,995 216,276 TRANSFERS 1,316 772 772 772 INVENTORY 3,155 1,003 1,003 ARTS PROMOTION 16,596 30,000 30,000 30,000 HISTORIC PRESERVATION 15,000 15,000 CAPITAL OUTLAY 34,000 TOTAL 818,612 927,604 982,608 1,072,180 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 692,410 607,629 544,625 479,320 2,998,468 3,601,621 3,690,878 4,235.503 $ 3,690.878 $ 4,209,249 $ 4,235,503 $ 4,714.823 19 PARK DONATIONS FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Park Donations Fund was created to account for donations and sponsorships made in support of Parks and Recreation Department events and programs. In accordance with the established Ordinance. the fund is also used to account for the receipt and use of donation collections through water bill statements, which beginning fiscal year 2015, are used to fund the Parks Forever Foundation. Sponsorship funds are allocated to specific events/programs/facilities as identified with the sponsorship agreement. In fiscal year 2016 the City paid the intial payment of the fund balance of $13,833 to the Parks Forever Foundation from past years' water bill donations. Future payments to the Foundation are processed quarterly. During fiscal year 2016, sponsorship funds will be used to continue to help fund recreational programs and special events, including the July 4th celebration, Winterfest, etc. For fiscal year 2017, in addtion to funding special events, S6,500 is budgeted for event supplies for the Senior Center. Fund Balance at September 30, 2017 is estimated to be S66,840. FY 2016 FY 2016 FY 2017 FY2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 111 $ 50 $ 100 $ 100 DONATIONS 655 1,000 1,000 1,000 SPONSORSHIPS 131,099 100,000 100,000 100,000 TOTAL 131,865 101,050 101,100 101,100 EXPENDITURES PARKS FOUNDATION 14,081 636 1,000 1,000 PROGRAMS 28,104 15,000 15.000 SENIOR CENTER EVENTS 6,500 PARKS SPECIAL EVENTS 90,571 90,000 90.000 120,000 TOTAL 132,756 105,636 106,000 127,500 REVENUES OVER (UNDER) EXPENDITURES (891) (4,586) (4,900) (26,400) FUND BALANCE - BEGINNING 99,031 14,132 98,140 93,240 FUND BALANCE - ENDING $ 98,140 $ 9,546 $ 93,240 $ 66,840 20 RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE Memo To: Clay Pearson, City Manager From: Trent Epperson, Assistant City Manager CC: Jon Branson, Deputy City Manager Cynthia Pearson, Director of Finance Eric Wilson, Director of Public Works Date: September 15, 2016 Re: Water & Sewer Grounds Maintenance Contract The purpose of this memo is to respond to questions from the September 12, 2016 City Council meeting regarding the supplemental budget request for the Water & Sewer Grounds Maintenance Contract. Provided in this memo is a summary of the budget changes on the General Fund and the Water/Sewer Fund that would be necessary to include the supplemental request. The attached September 1, 2016 memo provides the bulk of the background information and justification for the budget request. Budget Impacts The General Fund impact is $119,049, which constitutes reallocating 76.5% of the three existing employee's salaries and benefits from the Water/Sewer Fund. The additional cost to the General Fund will be taken from fund balance, if approved. The Water/Sewer Fund impact is to add $226,740 for the contracted grounds maintenance and deduct $119,049 in personnel costs that will be reallocated to the General Fund, if approved. Exhibit A2 shows the overall impact to the General Fund and Water Sewer Fund. Contract Management Also attached to this memo is a recent letter to our contracted mowing and grounds maintenance contractor regarding service deficiencies. While the contractor has responded positively to correct the issues, this situation could be avoided if we were able to pro -actively manage and inspect the contractors work. When scheduled applications of fertilizer and herbicide are missed, we do not pay for them but we RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE also do not see the aesthetic benefits they bring to our right-of-ways and facilities. These applications are seasonally based and once the germination or growing season is missed there is no ability to retroactively apply to improve the quality of our turf or landscaping. One of the aspects of this budget request will provide an additional inspector for this work to ensure these services are provided per the contract. With current staffing levels, we cannot adequately monitor or inspect their work. Right -of -Way Management Work Orders The final attachment summarizes the completed and open work orders assigned to the ROW Division of Public Works over the past two years, excluding street sweeping. The closed work orders total 339 and include such items as tree limb removal, graffiti removal, ruts in the ROW, intersection sight triangle mowing, etc. These are currently managed by the Superintendent and Inspector. Issues are directly addressed by those personnel, through contracts, or through coordination with other departments. While life/safety issues are immediately addressed, there are currently 52 open work orders. With the additional inspector position and the "hot shot" crew, we will significantly improve our responsiveness to these issue, resulting in fewer open work orders and improved ROW aesthetics. RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE Memo To: Clay Pearson, City Manager 9/1/2016 To: Mayor and City Council From: Eric Hammond, ROW Superintendent members Update on questions from the Budget Discussion on CC: Jon Branson. Deputy City Manager 8/29/2016 regarding Water & Sewer Grounds Maintenance Trent Epperson, Assistant City Manag r -Trent Cynthia Pearson, Finance Director Eric Wilson. Director of Public Wor s Date: September 1. 2016 Re: Water & Sewer Fund - Grounds Maintenance Contract The City currently contracts out 528 acres (247 properties) of mowing. which includes all of the City's mowing responsibilities except for water and sewer grounds and parks. As previously presented. the City has undergone a four year process to contract out all mowing except for parks. The contracts for this work are managed by the ROW Superintendent and one inspector. The final piece to be converted to contract is the water and sewer grounds maintenance, which includes all water wells. treatment plants. and lift station sites (112 sites total) for a total of 70 acres. Currently, a crew of three in the ROW Division of Public Works is responsible for mowing these facilities. The proposed Water & Sewer Fund — Grounds Maintenance Contract will contract out the maintenance of those facilities. The crew leader will be converted to an additional inspector and the two crew members to a 'hot shot' ROW Maintenance crew. Currently, the management and inspection of the existing contracts is difficult based on the volume of work and having only one inspector to ensure contractual obligations are met. Specifically. we are having issues ensuring the contractor meets the fertilization. herbicide. mulching. and mowing schedules within the contract. When the City made the decision to move to contracted mowing, we knew that some level of supervision would need to be put in place to oversee the contracts. Now that the transition is nearing completion, we have been able to quantify the contract management needs and the recommendation is to add an additional inspector. This can be accomplished by converting the existing crew leader to an inspector instead of on -boarding a new employee. In addition. when the City had multiple in-house mowing crews we had multiple options for dispatching crews to take care of 'hot shot' issues such as ROW debris clean-up, mowing for sight distance issues at intersections, roadway obstruction removal, fallen trees, emergency irrigation cut-off/repairs, inspection of tree clearance height over rights -of -ways for large vehicles (fire, garbage, etc.), tree management, and other life safety or cosmetic issues within the right-of-way. Without in-house crews we cannot RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE quickly respond to these types of critical issues. Therefore, the recommendation also includes re -allocating the two mowing crew members to a 'hot shot' ROW Maintenance crew. As with many employees that provide services to both the general fund operations and water & sewer fund operations, it is proposed that the funding for these employees will be split between the two funds. 23.5% or $38,217 from the Water & Sewer Fund and 76.5% or $124,410 from the General Fund. Fund Description General P.E.D.C. Debt Service -General EXHIBIT A2 City of Pearland Fiscal Year 2016-2017 Proposed Budget REVENUES EXPENDITURES 2017 Proposed 2017 Proposed $74,249,777 $10,832,926 $34,974,788 Special Revenue Funds Municipal Court Security $53,050 Citywide Donation $21,900 Court Technology $60,010 Court Juvenile Management $85,100 Traffic Impact Improvement $2,500 Hotel/Motel $1,551,500 Parks Donations $101,100 Park & Recreation Development $53,000 Tree Trust $10 Sidewalk $5,000 Police State Seizure $250 Federal Police $65 Grant $196,955 Community Development $325,431 University of Houston Capital Renewal Fund $0 Municipal Channel $307,800 $0 Internal Service Fund $0 Property/Liability Insurance $1,470,812 Medical Self -Insurance $7,461,188 $0 Proprietary Funds $0 Water and Sewer $44,810,025 Solid Waste $7,150,864 SUB TOTAL - OPERATIONS $ 183,714,051 CAPITAL IMPROVEMENT PROGRAM (CIP)- Water/Sewer Capital Projects Funds Utility Impact Fee $22,701,410 Shadow Creek Impact Fee $860,000 1999 W & S Revenue Bonds $13,578,620 Water/Sewer Pay As You Go $552,500 MUD 4 Capital Program $150 Capital Projects Funds Capital Projects $102,500 Capital Projects -CO 2001 $7,071,058 Capital Projects -CO 2006 Capital Projects -GO Series 2009 $32,989,782 SUB TOTAL - CIP $ 77,856,020 GRAND TOTAL: $ 261,570,071 $ 76,573,084 $ 15,903,568 $ 36,107,359 $ 62,031 $ 73,579 $ 63,301 $ 1,072,180 $ 127,500 $ 418,250 $ 6,000 $ 35,100 $ 196,926 $ 325,431 $ 302,171 $ 502,675 $ 1,370,267 $ 7,505,354 $ 45,499,713 $ 7,145,789 $ 193,290,278 $ 42,161,199 $ 700,000 $ 13,648,754 $ 605,459 $ - $ 261,279 $ 13, 059, 703 $ 481,331 $ 33,391,605 $ 104,309,330 $ 297,599,608 25 RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE August 30, 2016 City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Tel: 281.652.1668 pearlandtx.gov Thaddeaus Goettsch Maldonado Nursery & Landscaping, Inc. 16348 Nacogdoches San Antonio, TX 78247 RE: Service Deficiencies — Contracts: 0214-20 Landscape Maintenance of Right of Ways and Medians 0214-21 Landscape Maintenance of City Facilities 0415-39 Landscape Maintenance of Right of Ways and Medians II (21 Medians) Dear Mr. Goettsch: This notice is to inform you that due to a continued lack of service, Maldonado Nursery & Landscape, Inc. is currently in breach of contract. With the exception of mulch installation to the roadways, each of the services shown in the attached schedule chart were agreed to by Maldonado during the bidding process (the exclusion of mulch applications to right of ways included within contract 0214-20 were due to Maldonado's submission of a price per yard amount rather than price per service amount as they did for all other locations). However, several key services have either not been provided, required multiple request to be provided or where provided well after the required date. Again, each of these services was agreed upon by Maldonado based upon Line Item pricing submitted during the proposal process. An example of the most recent default to this contract can be seen in the provision of "mulch" to the City Facilities. Multiple requests were made to Maldonado employees for this service and it was not until the Vice President of Maintenance, Thaddeaus Goettsch, was asked to meet with City staff and discuss the concerns that improvement occurred. That meeting occurred on July 12, 2016 (the first time Thaddeaus was asked to meet with the City and discuss maintenance concerns was January 5, 2016). It was not until August 10th that a commitment to begin the mulch installation was made, with Maldonado's sub- contractor communicating on August 15th that they had completed the mulching of RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE facilities. As identified in the attached chart, the application of mulch should have been completed in June. Furthermore, the mulching service prior was completed in December of 2015, extremely behind schedule from the required application in October and completely omissive of the service scheduled for March. Per the contract specifications, three (3) mulch applications were requested, bid, agreed upon and budgeted for in the contract year. 0214-20 Landscape Maintenance of Right of Ways and Medians Contract Schedule Chart: 27 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Mowing and edging Class A areas 3 3 4 5 4 4 5 4 5 4 4 3 Mowing and edging Class B areas 3 3 4 5 4 4 5 4 5 4 4 3 Trash removal from roadway 3 3 4 5 4 4 5 4 5 4 4 3 Fertilize Turf - Class A areas 1 1 1 Fertilize Turf - Class B areas 1 1 1 Summer Fertilize Turf - Class A areas 1 Broadleaf herbicide application 1 1 Monthly irrigation inspection 1 1 1 1 1 1 1 1 1 1 1 1 Quarterly irrigation inspection 1 1 1 1 Prune shrubs and trim groundcovers 1 1 1 1 Complete weeding of planting/shrub beds 1 1 2 2 2 2 2 2 2 2 1 1 Pre -emergent weed control * Dead heading of annuals/perennials 1 1 1 1 1 1 1 1 1 1 1 1 Prune/thin of ground cover 1 1 1 Fertilize planting/shrub beds 1 1 Cultivate planting/shrub beds 1 1 Change out seasonal color 1 1 Mulching of planting/shrub beds 1 1 1 Weed control in hardscape 1 1 1 1 1 1 1 1 1 1 1 1 Fire ant spot treatment 1 1 1 1 1 1 1 1 1 1 1 1 Removal of sucker growth from trees 1 1 1 1 1 1 1 1 1 1 1 1 Annual tree pruning ** Cultivate tree rings and tree areas 1 1 Mulching of tree rings and tree areas 1 1 1 27 RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE Likewise the application of fertilizer has not been provided since Anthony Zertuche of Maldonado applied in November of 2014. At that time, the facilities grounds were fertilized while the medians only received a partial application. The concerns surrounding Maldonado's staff only partially applying product ultimately led to Maldonado's voiding of application invoices. Per the contract schedule, Fertilize Turf Class A and B, should have been applied on three (3) separate occasions this year. Rather, it was requested by Maldonado that an additional broadleaf herbicide application occur in lieu of fertilizing. Bill Frere of Maldonado provided the change order request for that service on May 17, 2016, based on professional opinion and received approval from the City on May 18, 2016. As of August 10, 2016 this service had not been provided and was not responded too again until August 25, 2016. At which time the response was inclement weather has not allowed the service to be provided. Per the attached service chart, the second application of broadleaf herbicide is scheduled for October. The prolonged lack of service has once again caused the City of Pearland to miss a predetermined step within its maintenance program and Maldonado to miss the revenue generated by the provision of agreed upon services (Ex: fertilizer, broadleaf herbicide, pre -emergent weed control). The circumstances surrounding contract 0415-39 Landscape Maintenance of Right of Ways and Medians II mirror the lack of services identified under 0214-20 Landscape Maintenance of Right of Ways and Medians. It was communicated from Maldonado to the City that while a contractor was selected to install the mulch at the locations under 0214-20 Landscape Maintenance of Right of Ways and Medians, Maldonado staff where scheduled to begin the same day (August 13, 2016) applying mulch to the second contract 0415-39 Landscape Maintenance of Right of Ways and Medians II locations. This was coordinated with the expectation that the two groups (Maldonado sub -contractor and Maldonado in- house) would work toward one another. The mulching of the 21 medians was not completed as of August 24th and on the last inquiry, an update was not able to be provided until the morning of August 25th. The commitment to provide that update was ultimately fulfilled at 3:10 p.m. with the confirmation that the task of mulching the medians within the contract had not been completed. Please be advised that the last application of mulch within this contract occurred in December 2015 as well. This not only represents a lack of fulfilling ones commitments but also missed revenue to Maldonado. The lack of application of fertilizer for the second ROW and Medians contract is also similar to the first ROW and Medians contract. No fertilizer was applied during the first contract year. When requested, the plan proposed by Maldonado management has not been rendered in the three months since approval was granted. As identified in the chart below, the next routine application of broadleaf weed control is scheduled for October. Thus the requested exchange of a service and delay it its provision for three months has once again led to a missed opportunity, contract wide. Yes, the City has received inclement weather like the rest of the state. However, to state that weather has affected the ability for an organization the caliber of Maldonado to provide these routine services over the course of an entire year would be a poor representation of capability. 28 RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE 0415-39 Landscape Maintenance of Right of Ways and Medians II (21 Medians) Contract Schedule Chart: Resolution Multiple representatives of Maldonado have previously been made aware of these concerns by the City of Pearland. A list of the notified employees include: Cody Cimino, Bill Frere, Thaddeaus Goettsch and Frank Sprout, all of which represent Maldonado from a professional or management capacity. The continued lack of services, delay of services and incomplete maintenance practices must be rectified immediately. It was communicated previously that the change of Maldonado's leadership over the City of Pearland's contract would resolve the issues of the past. However, we are concerned that those same issues are still present today and are affecting our ability to remain committed partners with 29 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Mowing and edging Class A areas - 48 Visits 3 3 4 5 4 4 5 4 5 4 4 3 Mowing and edging Class B areas - 24 Visits 1 1 2 3 2 2 3 2 3 2 2 1 Trash removal from roadway 3 3 4 5 4 4 5 4 5 4 4 3 Fertilize Turf - Class A areas 1 1 1 Fertilize Turf - Class B areas 1 1 1 Summer Fertilize Turf - Class A areas 1 Broadleaf herbicide application 1 1 Monthly irrigation inspection 1 1 1 1 1 1 1 1 1 1 1 1 Quarterly irrigation inspection 1 1 1 1 Prune shrubs and trim groundcovers 1 1 1 1 Complete weeding of planting/shrub beds 1 1 2 2 2 2 2 2 2 2 1 1 Pre -emergent weed control* Dead heading of annuals/perennials 1 1 1 1 1 1 1 1 1 1 1 1 Prune/thin of ground cover 1 1 1 Fertilize planting/shrub beds 1 1 Cultivate planting/shrub beds 1 1 Change -out seasonal color 1 1 Mulching of planting/shrub beds 1 1 1 Weed control in hardscape 1 1 1 1 1 1 1 1 1 1 1 1 Fire ant spot treatment 1 1 1 1 1 1 1 1 1 1 1 1 Removal of sucker growth from trees 1 1 1 1 1 1 1 1 1 1 1 1 Annual tree pruning** Cultivate tree rings and tree areas 1 1 Mulching of tree rings and tree areas 1 1 1 Resolution Multiple representatives of Maldonado have previously been made aware of these concerns by the City of Pearland. A list of the notified employees include: Cody Cimino, Bill Frere, Thaddeaus Goettsch and Frank Sprout, all of which represent Maldonado from a professional or management capacity. The continued lack of services, delay of services and incomplete maintenance practices must be rectified immediately. It was communicated previously that the change of Maldonado's leadership over the City of Pearland's contract would resolve the issues of the past. However, we are concerned that those same issues are still present today and are affecting our ability to remain committed partners with 29 RESPONSIVE RESULTS -ORIENTED TRUST -BUILDERS ACCOUNTABLE Maldonado. Attached to each Maldonado correspondence is a mission statement that states "To provide unparalleled customer service and a superior product at a fair price. Never compromising God's principles or our strong work ethics in the process. Striving to maintain a workplace where all employees obtain their full potential and are content doing so." Because of the belief that Maldonado would be a reputable partner in managing the many landscapes within the City, multiple contracts have been made between the two organizations. Those contracts include the professional and timely provision of quality services, as listed in the contract specifications, in exchange for the monetary values requested by Maldonado during the bidding process. It is incumbent on Maldonado to uphold its commitments and immediately correct these actions. Pursuant to bid specifications #0214-20, 0214-21, and 0415-39, continued infractions against one or more of the contracts will result in corrective action up to and including the termination of all existing contracts between the City of Pearland and Maldonado Nursery & Landscape Inc. Please contact Eric Hammond upon your receipt of this letter to discuss a mitigation plan to address the deficiencies described herein. Eric may be reached at 281-652-1944 or via email at ehanimui d@pearlandtx.gov. Regards, Bob Pearce Purchasing Officer City of Pearland cc: Cody Cimino Bill Frere Eric Hammond Roy Maldonado Frank Sprout 30 09/17/16 17209/41 argwIt AsvL n.d Request ACLWL Tris Dw.e 11411dmimewt 0t6tue e0490 GAXM wee t'i60E4 RDAS ORDER P&PO*T ORP P4 PA90 I Choat d4uceription Revisit F*f-tl2ty number 111 14/10/21 4000 CL 114/10/29 2409 STRWIT CLEANING - DIXIE YAWN Y ► tt WV454'271 DUXXXFRMS 14/12/23 CL 114/22/12 M/SC!LLAweOVS-1)00 8LX FE:AR.LA1$I• PINY W7051429/ PEASJAKNE 12/01/02 CL 119/01101 NISCRLLANt•Jt1N1F.rEARLAMD PINY w?0575552 PEARPRENY IS/01/20 CL 119/01/19 MISCELLARECCS-RYOADYAY 1 SOUTH /KAY 1POS76760 1000AMMATS 15/01/12 CL 10/01/22 N:SCALLA11100a-MAIM DT wP087746t MAI/ARTA 12/01/77 CL 115/01/33 RIBMIILLAMf7G1TR-2553 CULLER PENT w,0517467 CULLEN 24/07!05 CL 115/02/05 MI3CELLAME006-I201 E ORAN=¢ Sr WFOS70396 ORAMK 6TC 14/02/05 CL 113/02/05 MISCELLANEOUS -)SSI X22112 OR 'LIFT STAT/0 WP0519297 Morn, Ie/07/11 CG 10/07/10 NI3CEx4.AsE0 -2200 ;MARLA:to PYNY to of w wv0S00131 PIARPRxwv 1.5/02/16 CL 116/02/1$ CLEAN OUAADAAIL - 01%IE PM$ AD MtO5eu644 DEXILTWAN 15/0Z/16 CT. 112/07/16 $TGCXLLAMBOU5-DT)CIB FARM 121 (GUARDRAIL) WF0500560 DYf<ISTPJ1M 15/01/11 et. 119/02/10 MISCELLANEOUS -1123 t"IUIR R1l'v' (Pse WIG MPOSE010 f1 UER 15/03/11 CL 118/09/14 MIOC1L2.MP51OS-2703 VETERANS on (FIRE ADt wPOS61512 VWT'SJ[AN0 13/0!/16 CT. ALS/Os/1, MIOCTILLANEoli3-2525 CULLEN PKWY 'PO1 BUIL IF0507974 CULLEN 13/01/19 (L 11)/0]/16 M76C}TI.I.ANE0O6-VETERANS DR YFf1504474 VETERANS 15/03/27 CU 114/01/26 M1sC-V1P7F AN9 715t VFOS4341% VETIERA 0/02/11 CL 119/03/77 MI6CV.LANEoDB-BROADWAY a WSIMEBS CxwTFR w90S80132 SROAOMAYw 14/09/23 .... 119/01/.)0 m76CPLLALt>r17fi3-PRA21LAND PRMY #7,0501679 PSAASEANx 1S/04/03 Cu ILS/01/01 MI3C-MAIN ST • MATINOLIA W?0316044 NAZNInir 19/06/20 CL 115104/7: RISC -CLEAN uP Iw ROW !A`3TTArATT•19i:. OAR P ',Mom,. *WOES 15/04/22 CL 115/04/29 MTBC•BTAtP TR]i!8-JX 1Y DR w►0504980 MOTOR 15/02/05 CL 111/02/02 NI-lc/TAU TRIM -WITS KO 0 NICRAS RIVER w?0699M72 !TTL 15/05/26 CL 11.5/05/21 NTSC•REMDVAL OY TRE! LUIS a OLD D!2'OT NP0592297 LIBERTY 0/05/24 Cu 1Is/09/16 NT1TC-RlalppAL or TRO.• -2393 CULLEN PKMT (P wpasl134e rsa 12/04/+21 C1. 115105/20 NS&C-TU* Lintas CVT DOw0-540) VETERANS o WY0215091 POLICE 25/06/04 CL 113/86/09 NTSC-TARAS-P:1Ra1: DR 1P0291710 11R8YDY. 15/64/04 Cl. 215/06/04 MSiC-TRT<!S•D1AI1 FARM RD w?02I1711 WIEIS MAN 15/09/09 CL 415/09/00 RUTS - 1111 BROADWAY 37 wv0607261 WROACiAYK 13/1?/00 M. 115/17/02 05746?196 IMiP- ErpAIR 8rwrn l SAM AMT wr0619091 COON! 2, 29 15/00/;0 CL 115/00/11 7410 GRAYYITL /WV - PP>1R1.MR1 PINY .(8TYXT2(1M P W1,0070466i ?MARPSIMY 15/00/75 Cu 1tS/00/25 8RAFt1TI IMV - 2500 8LX STACY 0T IY0602144 STACY 24/10/31 C1, 114/11/11 3501 TREK TRTMITPK2 - 2101 WCOOs '7 W 0566575 WOoOSCT 14/10/11 CL 1:4/11/111 TRIM 111 - YOST wr02661176 YOST 15/01/13 1 :I9/0:/IS INSTALLED TTN 613 BROADWAY / MAMMY W70576S11 SROADKAYW 15/01/25 CI. 116/06/X9 RBPL &ZONE - CIO AR 87, k5. PLUM 8'T VF0607426 C'RDA4 15/09/01 CL 115/09/04 TAMED 0811WY-MAX RD w70407O19 NAXAD 31/09/39 CL 115/09/10 TOILET - *MAPA • wt0609G64 111APP&R 19/09/71 Ci. 625/10/11 TRIM TRIMS - OLEO BMW M1ATVTw2.0 / D2x1 14,0402727 w0:6TFIrU. 16/02102 CL 214/0)/25 7*IM TRYEE/BLOCKINO SSONS-3603 Plwl STAR WV0421046 PINxaIRM 16/07/05 CL 2i6/06/21) TUN 281696/BLOCK:NAT SIGN -:207 WA0HI$Q70N NY0637047 NASHINOIR 16/05/11 CL 116/06/0, TEM UMW - 2101 SLEEPY NOLTow / YOB? EV0661692 SLKEPYNOL 16/06/04 DL 116/86/11 TREE OV*R3XN02'No - N OXLvENToN / PLUA w70642473 /TALVAVEw 01}(111T 11 11 31 ,.rrr 1414 ,•~1414..- # M .... 414 14 14 V N M N~ V .w +/ M M d 4 4 J. N d1 1 14 14 om• 14 14 14 14 0 14 1n Cm :001.00000000 5 O 0 O Q O O Q O O O O Q O O Q O O O OO 0 b O o c.. r a b 0 o 4 o m O '� N ow.614 • wiper...8144./'J!.K m +4 •+.0000.. ....04s414.0QK111Nw►/ V W 14 OdM N • # 41 4 4. 14 14 .. 14 J .. 0. 14 14 4 4 4 4.-3 _4 3 0 0 h. .4 0 0 0 0 0 0 ..4 14 4 14 14 0 4 411 44 1/ 1. q l` O. I 0 I +°. J q . n is n PrPPrrPRPBPPPAAPPAPAPAPPPCIPAPPPP@PAPPPP PPPPPPPP 1 • 40. ..$ i '...'0 01,41... .......... MF 0........ ' r w,. h r . . Y.s.OM, V y ..M N..+.1.•14MN NyyM..1.1•.•14 MMM 14..14 H••!"�N'M1• 1+ .N Mr.p. M N..1.14 141.14..1• t7 14.14 M N4W4M1/441RiA 1 Y11A. O111!1►.4 11114. N W MJ.14 J,,.4,A4 N♦ 1414.11.40 V 14 Vi A 141+14 4'000000000000000000 00014040 00000 0 00 0.. 00 M 0000 0 a .4.4..11411141.4 *40-1,204. 4.• 1)141)01404 1411 M14µ11414 ls.O q..1♦ 4www1w/ w.yr . v V 4+►.O ww 1' *4.1.44c►40.. .7 .1}+1.411*{ 44 NM114Qgua.,.4.....aCSo..14.. emir. Mu MM1/4141w =,F M N 14 14 54 66 49 watriXZ N q 4014 «1x11 :ti ..1 ►+14 an ......... x.axs" x i resasss ■i : : 436;g:44;111.6 1111 " 0 41111 1Airir 1111®11 i1a 1 1�r�Gt �yxC y 146Z!L No9 C:JA191 p`}y�ptA4+/d .Oa3 LL1u•i-!HQinNa ..zs W nn.0.0Qif ��sY,,j(O O Z ' ' o r, F I ' • '4' 14 274 4 ' ! p .14.«.M7p x< r xmw1.40 1)1�t pp) 144 .� 1JH.1 ..7 o .. r14 am .� .a 144y76 ASPC�.176wovw8, L.nn�4NEty• n' �y i$Ra881 ?;,Eg a g 61 __M.'S ��"�x"��bba� Y a y I7 A [7 v J 114 .{ p` '4 '7 • . v' 44 114 1 . ar 1 . '.1 A i tc 0 Z �. io .. 5E 114.4 4... la p 1K s1 .. +t .t Y 1a r. lex www116n14 ..141414 14-1 Va8y��yy rr �• 014.L.414. ,.1 Na'c C KYY V"D4 14]40 7 3.140.. • . ,, 40 14 4115 1 4 r " 2ft4 .. n inset.t '0 y4 4* two tt.1 �1HM+ ][ X .4 > a r 0 0 Z S !o Me i 1414* Xs * 141414XX***14*i 14X12 i14Si*i4*1476 *t i 144 Xt •I 4 1 *4 i 14 Ni -1 N1 t 'd 'K 'M .4 +6 '9 44 *0 '4 tl 4 q '4 '4 '4 •4 4 '4 *4 4 '4 D o 0 0 0 Q o 0 0 0 0 0 0 o o o 0 o o 0 c o p O a O o 0 0 0 0 O o 0 0 14 a aO.P O.P a 14 4+tt A 41.141.4 440 gAO141 ww. wI.NN 1414 W MN4 V11A144 1400141,414.00400 00000140000 0 00. 0 V 44.444444444.1414.614 0 4./14141414114.4111-4.114..1414 441.111441444144. u'. 14.0 O V 10 •• J 44,4041 J. O 1Q 14 w 4 -4,1 4 O a• 0001, 114th J V 1.0004 Q w 0, 1.1.04.140 11 1 +.4 414 14141414 J..14014,.14#m4.-*J 4 4 w14M14W a 4444U4 0414 W PM44 o4 V . WM a.s.w ma.. 1. n... ma.11.00 ..... mF) 0.14. .041 W N» WN444 •�3$ Or$S�4 40xc1 „i Rna1Icreq O0 < { 14 11 51 425 .14. a�ypyy0 5 5�1 CN xx0,2 w N 1 1 uoTadfaoasp uog5 lXi YtiYi 1174 14,141614'4 vee *0000000 0.1114 14/1141 J *440440.4• -e14 V w .0.4 * .4 14 R 1111 y,AutitoM3,,JM r, R M N 4. 14 0 F O Cp160;Lt 44 3 E11012410 G: MwS " y'�►, .c 14_ 9184 N *41:1114 t7.04,41 2441aee1 Atm/3w Regt.Mv 44t.441 7466 Dote tlepettaent tutus romp dote Cod* 1S/0!/73 4040 1s/09115 1S/011/15 15/09/15 40/011/1$ 16/03/Is 15/09/15 17/0!/15 3A/09/14 13/0!/:2 2'5/09/14 1!/09/01 1910!/13 10/0!/1? 31/10/09 13/11./03 10/30/00 11/10/04 10/10/04 2S/A0/06 35/10/04 13/10/00 15/10/06 Ss/40/00 15/12110 40/09/14 15/[0/1! 19/11/12 15/00/10 10/1]/10 16/06/]0 16/03/24 13/10/13 19/11/14 19/12/10 10/12/10 15/071324 16/01/06 10/70/10 15/03/01 16/04/2! 14/02/7) 14/04/19 16/00/)1 16/04/04 :0/06/21 16/07/1) 44/0T/11 13/06/3'1 14]06/1T PPPPRPPPPPPPrrP2PPPRPPPPPPPPPPKIPPPPPPPPPPPPPPPPPR 113/10/-30 790! 216/10/31 115/10/41 115/20/21 110/10/31 115/10/23 115/10/31 115/10/73 115/10/22 115/10/22 111/10/32 115/10/27 119/10/77 luh04, 115/10/30 115/11/01 11!/13/04 111/11/04 131/12/04 113/13/04 110/23/06 m/13/04 111/42/04 t111/12/04 016/01/04 116/01/04 116/01/i7. 116/01/21 114/01/i) 116/01/33 tit/01/42 113/04/04 116/04/Z1. 116/04/13 114/04/1 114/04/13 114/0417) 126/04/21 136/04/23 114/04/26 114/01/01 216/01/33 116/05/32 116/06/0.1 116/06/011 tic/04/10 114/07/1a 116/07/13 314/07/14 116/07/t4 CLOS= MORE O>rONA REPORT 3hoct Amxc:.pttan TR6ME/gVRRfmmar`CC TRCII`S /OVSRNAI 1 00 ?Mk /Ov4RJtAMOIHO TRERl1/OVR8Hfi338INO TREES/OVER Amouto 54443 /OVK RJ,AL k7I LM TRF.BS/ovsRNAH®IM2 OYtr: 44 - 711! OXPOOD 114 - 1122 11AROA7i 04 - )001 N 0E14RAv1A OR - 1035) NORW1CN 6T - 3014 swam ST - 3303 E MAR MOLLMIM 3603 CHAT4000 TRE=E/OVURAAMGXP0 - 1676 SXZL00M DR ?AtICI/OVZRJtANO11W3 - 1611 a/ATWOOD TRIM Tf;ii/OVERMAN61M0 ROAD -2400 ALF 4REP T111M Tr)Rt$ - 1114 MAROA:I DR TUX 71211 - P2GLAND 42 t MAOO 2 ?WALL RD TRiiiAWE R10NG12w>+3 - ALi1O111DSR 4 LIR C1! TR Y/0v222IAN01J1G - CoLOOMM6:L / MATY:xt. LAROM BOSS - 264S WLLiR RAKE R11 TREK LIMBS 4001 4 4007 LER Lit TAME TRIM - A7.011AJMOR LAMDINo 1 AL/MASON TRE! TRIM AUSTIN XVI / PAY 10 tots :'RIM - AVANTI DO TRUN TRIM - CAMPBELL. OR / *CL.W RD TREK TRIM - EL3BORY / MAL.BRANY TR34i TRIM =maim / RRtgR.iTQWt! TREK TRIM - XVTORIM3 6 CHLSAPSAXlG C: TRIM TRIM - ARRSAILLi BFTNGBN DUESSABCRO LIMOS - 2516 it TEAS AVE TIMIS - PITE Inman AMA MUMS T11Mt3 - OCMTVo 344.1 BROADWAY NOW . Timms - HUTCISINB RD TRIM TRIM TRIM TUN TRIM TIMM TRIM 7RIN TRIM Task TRIM TIUM TRES TRIM 1.3134 ram TRIM TRIM TRIM TR214 734131 ?REM TI2M 74214 TRAM TRIM LOW - 2010 M MORAVIA rums - 34u'CM2k8 is 6'174 or Ra) T8148 • 1700 SLR 9R0m411711 (SRAM SOU t4I75-4333 14[51034 GR maw MTA44* TAM* - RROADWAY / WALNUT 173U - 3114 4. 3110 P116R23S MOIST TRIMS - 2210 1121.3.034 OLIO TRUE - 1111 P1LaRsm3 401141 1.34 TARES OVINWARBI$G ROAD-MC01N310 . C1 TRUE ONEAMAMOIWG 00140-1607 MORE1CI TOHss/OvUORA,o1No ROAD -421114 SM0 POT TREES - 8 TUNS AVR T422SS-OVMMANOLNG ROAD -35.2 t 5404034 TRIX3-OVR*IIAMOINO ROAD -L110411000 8 8 773147/OVXRRANCIM3O ROAD -$34::11 RANCH TRIES.ovESttA1*G274B ROAD -S CORRIGAN 1 TRUE OvRRRANSIRO ROAD -1703 HOLLY 8 BRANCH - 3410 1NOHitRI3q! UR TRUE - gyms RIVER / 427! Ro CDIJ1 TRR88.O411411A1402 341 ROAD -4274 RD r NE TRZtIS • 2400 TAYLSIR LN TRRES Mi'CSKx1T What t4que..1 Ptl4.i4y .ttaSbet 10 Mro6o7961 0*3*20 14t04o9941 MAO ATECR 010607940 BE1AP.AV0M W00407944 NORWICH 00440/313 oErr1T 000607544 CROAK/MLR 249607149 CFtA74000! 070007540 SNELCOR WP060)4)' CIUA2400D 070404461 ORLERTrt *10431349 MAWt ATE0R 10Y042334) PSOLAJ4D 84040755[ ALESLY w40101005 LWLMJtbxL 1040611704 MILLXAMCN WP0414414 t.4R1.N 070411060 ALEXLAND 040611161 AVO0035 3440411167 AVANTID* 0404//169 eMIPtiLL 040411164 31.8304? 06'0611163 tiLSHIL1.0R 3440611165 HUTCHINS 0F05111641 v2150.ILL4 040619701 MAUVES NE0622173 PTT* 840613955 0R0ADMAYE 870616403 MOTCHIM6 *P0625062 BOLORAVIM *70619147 HUTCNIRS 144'0490041 B1OMPTOHE MF043)704 FIRM 1040617954 BROADMANI *440616438 011.0821191' 1070619302 4:41.014 *20419299 PILOR014PT 070344259 MCOSM3t9 1040422542 MORRHCi 1440434165 41Ld*RI7-r 4P0637i12 TE3U38AVK8 430611779 DROAOIMAYw 870419631 [13(211000 3470414193 231443(41R4 2 x40441422 904100710333 470443417 NOLLY3PR: 3440644021 LAMOHCAN 1010647431 NICHESRIV 040647790 4204 1010444071 TAYLOR VR04440 T 1 4tct12 3[420 33 07/13/16 1* 00.42 CLOS1D *ORM` URDU R-UMAT peri 44 PAM 4 1.quasa. A4A1ansd k1quaar Artu&l TiaZ 8bort description aaquest Paeility Data Dsput nt stitul Camp data 004* newer :D 14(00/I1 4040 CL 116/00/17 2301 TRIM TRESS-OV7RHANOIN1 311 WOAD-MCDONALD WY063261P MCDONALD 16/03/71 CG 116/08/19 TRU TRKS9/OVEUHAMOINO ROAD-950ADWA7 4 R xr0441743 BROADWAY6 14/05/10 434 116/08/20 TWIN TkEI3-ov*34AMu/Na ROAD-SROADWAY & K 320640:4!: BRcADWAYW 16/03/07 ;Q. 116/09/07 370635295 SZO5P2LR COUNT 93 91 24/11/04 CL 144/11/11 ASO4 TP1311 OVSRMANfilfl fi1DOMALA - BUf.iXNS9& C3 WP0S88470 BUSINCTAD 14/11/04 C1 114/11/11 TREES OVAAHA11GINC SIDKWALK - DISCOVERY B VP0346471 DIBC*AYDR 15/97/21 a. 114/07/42 rime TWEE - 3504 P1IEAAAET 3.W 1100129941 P11.83A1ITL11 13/01/02 CL 116/09/4) TRIM TEARS OVURI3ANOI$G e1DBMALK-PILOa1k8 YP0000463 P1L011I14P: 15/01/29 CL 115/10/03 TREE TR11139I19G - l3.D ALVIN / GLAlS7oNS4RY 1100601017 OLDALVTN 14/04/13 CL 1.14/04/26 TRIO TREWS - 2732 1 2714 WEST OAKS BLVD 770634 120 WOAEBBLVC 1.4/04/3.1 t`L 110/04/24 TAXA TRESS - 2740 1 'MST OAR C:R %306)6327 WUAKSCIAi 16/04/11 CL 116/05(11 TRIM TARES -• SA AT MAST OARS 0LVD i 21Wf *?0636319 WOAISALV4 26/04/19 rL 114/09/11 TRIO TR$A9 - 210: MAPLE 471 W78416714 KAP9.R 16/04/17 CL 126/0f/11 TAMS TRESS 2601 NIST OARS 0LVD *30831)15 W0A11ALVD 14/04/19 CL 114/05/11 TRIM TREES - 2814 i Mt WRIT% OAR LN 3,30036314 SAI1!!9 AA COUNT 11 2 i 14/10/24 CL 114)20/�i17 3401 MAW- Missy / ek1WA 0A1Y 310167:06 C$III(Y 14/10 27 CL 114/11/04 T3i*aS - RIRDY, SPTWCRN SHADOW 49EE1 / 86 370567639 R231DYI,9 15/02/17 CL .115/071`77 1090907047 PA33Pss11v 19/02/17 CL 115/03/11 TAU YELL O11 400126 - ?122 M GRAM ULVD 1130544106 =Aims 15/05/33 Ci 1114/0S/t3 UPI *MOM 19.01113 - 1817 CRIPPLA C7t210 L W70532091 Cp00KBDCR ;6/30/30 CL 134/0x/24 63018 TRUNMIMG - TRANCES DR 1130517172 Y*ATICff859 131/07/03 CL 114/07/04 Teti T/12161M0 - 1502 PINS CRASH DR W7054771/ PINECeAUE 13/07/24 CL 119/07/21 6011-11AI3►.9 3114723200 01, 111143-Itor1SC 1.31/0R 1116600410 19181101.3 13/00/18 CL 114/03/312 T3:M TIM - 3104 OLASTOWEUNY D3 - CITY 370608660 01.A3:0837 46/06/22 114 111/00313 P/11 MUCK - 3120 DIS390P3031 DR 3306446/9 BIS)lOPDR 14/06/3.3 Ci 118/06/83 0RIJNNTIIG - 2211 *AZ* ST 000644409 NAIicTN 00007 11 11 14/12/17 CL 134/32/17 3006 706* R0710VA3.-2800 UL* PEARS.AIID PKWY 1130573434 MUMMY 414/22/11 CL 114/13/11 TRU E1190VA4 - 12110 BROADWAY *30574880 DPAADMAYM 11/02/10 CL 1)5/03/91 I610V11 TRE* - 240) *IP VAN 991*71.0 DR 670561/80 RT7VANWI!1 23/02/31 CL 124/03/12 TAWS TO KAPLANT MORA9D 01183011 CULL=* 1190513767 9CHAND033 Is/04110 CL 113/04/30 *SNOW TAS1 RAM RD / LAZY 09.EER W#0886905 LA3102013 13/04/10 CL 11'5/04/30 7616 TO mists - *ANN RA / LAST Mtn *90987031 HANNRI7 15/04/12 CL 125/04/13 me MUCH 3000701. - 3403 APPLE 33E11109 1190517007 3931.12911 15/01/20 [`L 125/04/20 TAM ldOVAL - 3927 A14161 33610. 00 *30587923 3A35191.0 15/04/17 CL 135104/27 766EE 101111 - 13000 RLR 33122 011 - 130101120 IY0989373 KIREYDR 12/04/24 Cl. 134/04/04 7362 a6110V3L - 1101 2131102303 DR 1190300011 612110003 11/05/11 CL ::5/05/31 :RES YELL 2212 APPIAN WAY 770591730 APP1A011AY 15/05/19 CL :)2/05/111 TRES aVMOVAL-3501 E ORANGE ST ISPOIVICE C 1130591421 ORAMG312 43/05/20 CL 236/91/21 42168 REMOVAL 7140 0 6'332L3101 3216 190591051 PPARLAN06 33/05/26 C3. 315/05/05 REiIOVP TRE! - 2206 LAND ST 1305037/4 LANDS: 14/07/00 YL 335/07/94 rens n000rR 11102 E1499 09.399' 1/90494204 R4114YAc7rR 34 0 f A010oo :1MIJ0_r.. ...1.►- p r • 0000000000000000000000000000 . 0 0 0 0 O O 1 r r O N .. . 0 0 0 0 0 A Y 40000444 .1 . J J 0 ..4.1 v 0 0 0 0 0 0 A 0 0 0. 0 • U .4 0 14 0 0 0 1' 13 .. 0 4 0 .0 0 0 O O ^,J Y 4 ...+Y..o Y..v O.•OOM•• 00 000 M OK N MM 141.1 O Y44v OO .0i N N .40.44. 0..100.....0...1. ooi 0.p.001JO 1.0000 .100..141.. 0 0 0 o 4 $`Y J 0 PPCIAAANFAPAPPPPPP4.1'^.07^rPr^.'clPP?PR r'cf`a!'at2P`r;PPPPPPPPPP' 14 r 14 M .-z....1' 1 14 4 ........... ........ V V V1414M14N01441414014i0014V1 D O O O O O O O O O O O O 0 O O E O O 0 O O b O 0 0 0 0 r 5111 51 0 71 0!.014 N W y 1\\\\\\..\\\\\ \\\'-\\\i \\_ -.-% 1.Y ..014114 U I4.0O1L0 Y M Y 1 1. 1 4 1.• 1. n= C 1 00 1. A NagogO000000..••.•►0000 �.. • .......... 011IJ1..N.+1'N1' J:MO J 0.. 1JO.�CO.4iY GLI-. * 4, ` M .. 4 i r M • 0 a • J 0 x iiiilliffillifililliliMilli i. y. .1 ffi s x 4 . ��Oyj yCy • .: .44. 1'T.•10 M ■ t C4. �OOY00 0 tl 14 3t�Gf1114111111101 4 n • oY O N V r v Y M M X tgr, r r r, o �n . . r iia3 J 0 M Yfl Ox (• YQQQCC` ......1,e.':, s 1 •+3 ! 1'«00t r C 77�710jjjfD p.4v 1 0,14.0.-° r • 2_ w i C Z��' 71• 2ta'2§41,c; 1 . Y O w� K..O 710x.00N rO,i .~.14 .O Ov 0 .Ot 11tt oo CeQRllac 7a VC71* *»YytwW��y •.111�� ga .* -... ccx Q>r1 MP yy i Vp7 �J 1+4 NY7r [• a■q 4 7tl GOA SSS` :~\t'y IIO:".5.. ~tYt~S��lM5M. 3 wiic L g. 01 K g i3w ;MB1:u1' cw�iir u "`°00;rel '4 44'4 `� ?Sit 1 ihdi 3 ?. s''-:-.5 o p F.11.45 9/244Z 4 ra} MOC7.1 �J •Y. e� v KI pti'9 j T< 1pP oFHE •i -p C H FY• b z ; .i M S LS >1 a Y; l+ ]0 71 90 IOC Q� t J2O 4Cpm ��!!l �+ Y o 666b :III at y� 7774 XX, 0 •j N MI y p� MR NOw 14 Y O' O iL7 •0 Or 0■ a t a! f i t s i 0x x x 0000 0 •00 00000000000000000000 .014141.01, .-JINNA .4000W000 . 11 ....... 0. ........ 1411 14 0 0 ..... 000...U0000 .......... .4.4 . 0 1' .... 4;6 ...... U 0 0 U 01 '4 4.1409404..414000p. ..... ..O0000m11 0 s 7 n f O O x x i w< gle ii Magni r'4 • P v 1614 tit Y Jt 7 o 0 • . . 2g a0400OQ0ID 1'Z 11 0 0 0.0 .. 3000 1 w i xeT IMPI 1111111,11111114 i. 01/13/16 11 04.42 CLOSED NOR1t ORDER REPORT DEPT 44 MOE 6 1404111441 AAt1911iod kegNabt Act -.a:, ran* Short d•ICrlptZou Rrgl►!at ravIllty Date :leparu elft status cosy Oats Cod4 Dumber ID 44/00/71 1000 CL 315/06/78 2807 MOw:NC • KCLKAN. MAAS rmv 7AXX 1 NAOMOLT $P0664777 MCLKAM LS/00/31 CL 115/09/01 AGw-M0W1J*G/ 1ARRY X556 1atTNUH /EARLAI/ M10i06000 MUMS* 15/08/70 CL 114/09/17 sowtNG - RSL.zY RD / 11t10EKA / ALMspia 0CNO wro o 909 RILE! RD 11/00/10 CL 111/09/21 SON MOWZ110-2706 LONaWCcr 6 i.ORT7VIEN V10602431 ICMGNOGD 16/01/21 CL 114/04/22 MAwING-ORADOE ST • MYXAWA WY0600446 OOIAMOSTW 14/04/17 CL 113/09/26 Mi7wZN0-Y05T I SL1;EPY NOLLow W7'0600223 MOT 14/09/17 CL 114/09/24 6f7w-11GWT112-PEARI.ANL VERY • Nt1CltElS !D 10r0604179 PEARPRX1Y 24/09/24 CL 115/09/06 Tall ?11111 - ICa11CiIS BE'MH1N U._T.ZIA FARM WY0611S6S MCGINNIS 15/09/25 C* 114/09/15 Ton TRIM - w GRAND, o8Twoyn TN518 - PLO VT8611441 GRAM M 13/09/10 CL 125/09/30 mom/17A3 - Cic44 / FM22.14 NF0619012 5fOwCRRPIf 13/10/06 CL 115/10/0+ MOWING, STOPS RD FROM BROORSIDU TO SR091: 0113640625 STOKE [3/09/10 CL 114/19!00 mOINI1i0 5711 1tAG11CLIA RA walS07345 MAGNOLIA 1S/00/21 CL 115/10/08 som -PRARLA11D POWY W PILOR7144 PGrnn 1110600443 PRARTRENT 11/10/0! CL 435/10/06 RUM/00111310-IARAY Ras! s PRARI1110 P?1IT WP0640470 IAKRYXO4E 15/10/09 CL 313/30/0? Wr0611383 4D90EXTR 15/013/10 CL 119/10/12 TRIM TRIM - V RAmoTo ' Da / 1X,0 w?061.1940 MAMPTONK Ls/64/26 CL Vi10/10/11 TRIM TREES 1I0RTAPORA CT. PROM Moo GO: Wro413961 NORTNPOUt 0/10/09 CL 113/10/13 MCWIDIG. GRASSY KNOLL BETwENN THE VTW i Wr00111I4 ywnstAss 15/10/01 CL 115/10/18 MORINO - 1 WALNUT / PARK NV0611304 WALNt2TSTE 14/10/09 GL 114/10/te MOWING - 24 01 CHAMrxoN DR WV061134J CMAMPSLNI 15/10/09 CL 113/20/18 MORINO - 8102 SILVSA LM wr061:159 SILVE0iN 14/67/71 CL 115/10/10 MC3wzN0-N MALN BT Kr0sos974 MINIM 1S/10/11 CL 119/10/73 MIN TRK! - 1175 tILK11DA / MP/ WY0613191 CIt. IDA 13/10/21 'CL i3S/4Z/04 ?RIR TREES • 3907.1010 NAL11ORAL LD W70613144 BALMORAL 14/10/60 tL 174/02/1S NOWIND -- LONewoOD / BROADWAY ♦ ACROSS RR Mr0611161 I.01101/000 15/10/19 CL *111/03/7S MONti11O - SCLKAN. Y OP MADMOLIA - CITY as 1/Y0612476 MCLLAN ' 14/20/30 r. 116/02/3S MOWTNtl-RRGADWAY 6 LYNN DR x00614056 XROADWAYV 19/07/17 CL 316/07/.75 ND10I10-3411 HARDEN RD, NV0109551 GARAAN 13/07/17 CL 114/02/35 NONZ110-2411 GARDEN RD. wr0595353 0A.DEM 14/09/21 CL 126/07/25 PONT 0-2951 1ATR1 11LLOW LN 1170600444 WATEXNt.t.Y. 16/:0/15 CL 11S/02/2s MOWING/DITCH - 1714 XXX KD wr036622/ MAUD 13/30/14 CL 116/02/7S ROM/NOWTMO-1401 WINCIUL2' C: x10611740 wDOCRSTC: 19/10/73 CL 116/01/76 NOMI*! -DLO ALVIN tORTIEON GRAMME 1 NCNAR WrOO;)967 ULDALV2N 15/11/10 CL 116/02/11 NUNSNO-7524 0'0AY RD W10613772 00AY 16/01/17 CL 116/03/1' ROWKON180.340) RIP VAN wINKLE INZXT 1303(1 No0633S34 RIM:011N 16/0//21 CL 111/04/27 Mow/NO - 1804 NI411140 tants DP N70624461 WSItOT11CCk 16/04/27 CL 114/06/01 14711/*4113111-)621 /V80=T 80100119 DA 14)0417139 SU$S117114A 36/06/01 [.'L 416/06/01 MowiMG - 3704 SHAD/CREST DR x00611041 SHAD/MOT 16/06/11 CL 116/0x/27 140WING - ALL Or WAGON TRAIL Ar0644610 1AOOMT*L 46/06/31 r1. 116/06/31 1401430 - 110/ YIO1OPTON DR M444130 Bla80PDx 14/06/20 CL 116/06/11 14014714( • 20031 MAX 80 wr0644227 111711[0 16/06/24 I% 116/06/28 :MASS TOO HIM -STOW RD 6 BACOXSIDL RD 1100644940 STOWS 16/07/14 CL 226/01/20 mOSIN0 - OI)/1 /ARM 913 / SCASLAN1! OXWN - 11.064111363 DIYIIIRMS 14/07/30 CL 116/07/25 1tOMIMO - 4000 BROADWAY C" 900648402 lif4ADNAYW 14/07/01 C4 116/07/2' SIDWSNO - wIL1011 131X* 5 TATt-4 EMTRA1JCt 1170646169 1ND0157CC 16/07/22 CL 116/07/17 RON MORINO-BARRY ROSE * V0ARLAt4D PAMY Yr064I920 BARRYR05E 16/06/77 CL 116/08/27 14003140 - 2426 COUNTRY MAN T1* x10645234 COO1TRYCL COUNT 16 16 36 A4/11/14 17.09.41 CLOSED WORK ORb1 REPORT DEP'? 44 PAGE 'T R4qurtat Assiguod Request Actusl Tisk Short desoripe.t n Ragvatc EsciLit'y Sate PipsytmeM sts1us romp /late rev* number TD 64/1'/24 4460 CL 114/10/04 2.604 BRIMS R1MOVAL - 1300 PLA PKWY (PAR WFOS6720T POARVRKWY t4/10/a4 CL 114/10/17 'REMOVE ORPP - MAGNOLIA / MAIN 37 41POS67208 MAGNOLIA 14/19'25 Las 114/12/tS DEBRIS - DIXIE FARM RD t?OS71121 OLRIIP7001 14,/34/3 CL Ile/11'13 OKRA'S - MOW L1YC1t / OLD ALVIN VR0571314 JOHSLXLCSt 24/17/11 CL 114/33/10 ORRRIS - PtARLAND•PRSrY / TH510 WFOSI 310 FIARPRKwY 14/10/17 CL 129/02/10 TRIM PEARIJ - RARRY ROSS MART MFaS775S6 IARRYROt,}t 15/03/11 Z11 115/03/17 CROAI9 LM NOW - MIME3S CTR 1 DISCOVER MFOS94034 EUBLNCTRD 1S/04/0/ CY. 11S/04/01 NLDOIEATIMII•MATM ST 0 MAGNOLIA WM'0586140 MA:NSTW 35/O4/PK CL Its/05/02 HERRIN - 3140 8LX PEAIIdWD pYWV c'0WWEC W2'0500901 PRARPRaWY 10/05/27 LL 113/06/24 P/U LIMEB - 340t MUMS OR WF0513449 PARK52DEW 13/10/13 CL 12S/10/23 ULBRLS MAIM / MIAOADWAY W70611090 (MAIMS* 16/03/24 CL 114/9)/24 rmssis - TITXTM •ARM / rv. E AAT PIMP WFO413397 tTXTEFU4T1 CgnN7 It 1J lir'OS/19 Cy. i16/0S/VO 21.09 L94A0Y ASiTM -- Brattla/ 2642 8A4 ST OY0901S41 ILAYST 16/04/12 CL 1/6/04/15 PEST C'7NTROL RANDALL OR NF0635504 a-A1fnA1.4. COVET 2 J 15/11/10 CL (IS/11/40 7510 HIABLCLDB APPLICATION -WASE ST IPAVERB) 0!0616978 MAIN{1"N 1-4/04/0/ CL 114/04/0$ HIREICIDS - BROADWAY I RAILROAD CROSS:WO 0F0$.5212 BROACMAYM 16/00/04 CL 116/00/07 MSx-HRMb7CIL! APPLIUr7DN-MAIN ST ISIS T Wr064Ot9S MATMLTM /SOON/ 3 J 14/10/0] CL 114/10/01 2511 tre REPAIR - MtHAMD RD IF0S64710 MCHARDRD 14/12/0$ CL :15/01/20 IRRIGATION REVAIA-1411 RUST DK 21F05721)S EIRBYDR 15/02/09 CL 215/02/20 1RRI0 RAP BROADWAY / BIRBY Rr0377763 aR13DWAYM LS 1"02/25 CL 115/03/05 REPAIR SPR1N0L A - S900 PLC OF BRGALTMAY WF0S02071 BROADWAYW IS/06/23 CL 11S/09/43 IRRIGATION RIPATR-PRAR1.AND ORMY WP0S9$171 VEARPBRWY 1x/07/25 CL 11S/0,/14 IK ?ORA 099 - otom tam 5rr1W¢N Nn18Arw x'0594275 JOHNL.TSCA 11/07/07 Cu 115/07/21 REPAIR 114 MTR PVARLAND PKWY 0E1WORN BA WV0597955 15/07/15 CL 115/07/23 IM REPAIR-JUMN LIBER tIE771EYN OLA ALVIN oE0599311 JOHNI.23IR. 15/07/20 CL 115/05/04 IM LI - 1500 MLR aF PRARLAND PKWY WF0600$43 PIARPRAI7 LS/OV/28 CL Mi1/08/05 IM LR 13725 SHADOW CRIER PINY / Almost. 0P0400e44 9MD0C.RRLMt 13/00/05 CL 215/05/09 R:aW-SRR70ATI0e 1RTATR-4141 BAT'.0Y Ro INA W!06021$0 IATATOPTC 13/01/0) CL 113/0i/01 ROM/IRRIGATION REPAIR-RIRMY DR WY0603140 RIRIYDIR 13/0$/10 CL 115/00/10 SM QtYAZR - risis PLOWBR REDS MP0603925 $YOArJWAYW la/eOJle et s19/0$/so 534 *SPAM - PRARtAMtt PXWY WF0603930 PIARPRXWY 30/01/1) CL 111/00/13 IIRMOVK) VALVE - MALMO PM, MF0403935 MAMMY 10/03/01 CL 115/09/03 ROM -IRRIGATION REPAIR-PZMLAM4 PRM/ W1,040;417 PIARFRKMY 19/0x/00 -TL &LS/09/0$ IRRIGATION REPAIR-RIRMT 4A 0P0407030 KIRLIYTIR 10/01/0$ CL 118/01/01 IM MMPASR-5404 BROADWAY BY MPO$,B36i BROADWAYF 15/09/21 rt 1.16/01/11 ROW-IRRI0ATION REPAIR-MCMARD 41 NATO ET 070605574 MCHARORD 11/01/26 CL 116/01/20 IM LUX - IIOADWAY / 010.L99 WY043S506 BROADWAY* 14/03/17 CL 116/03/11 ROW-IRRIOATZOM REPAIR-FKARLA3u PKWY WFOi73sil PEARPRRWY 15/03/17 CL 116/01/1? ROW•IRRIOJITION REPAIR -ORAE J41O PKWY 0F06)3534 PSAOP2RWY 15/03/28 CL 316/04/07 IRRIGAT:OM 11611 BRAAOWAY A7 Wr06)3012 BROATIWAYW 10/03/71 •CL; 118/04/07 :*IIOAT:ON - 13s67 OAOADWAY OT WP06118L1 BAGAD:IAY7I 37 01/10/14 17e09t42 Irquesc Alr$9nwd Roque/Or AltmAl Task Dat. Deparlmant Status carp dAts Cod* C1O3 1 MORA OWWCR REPORT DEPT 44 MAN e Short Joocrlptloa Re66.60I Pit&7.11 number 10 16/000a 1068 CL 7:6/09/02 1911 REAL NTLI Lid - 614% EATLLY N2 WPV437998 RAILEY 38/05/10 CL 118/01/10 Ro01/1RR[GA:Iml REPAtl-151• LIaaA?Y DA fC lFD416991 LIe$RuY 10/06/01 CG 114/00/01 TUDJ1 ory IP - RAIN 0T WP0650595 MAINSTN Co4RT al 7 14/11/31 CD 1t4/11/31 ?314 RUt 4110 2:40 Pr.A0LAICD PMW4 :00574679 011MP011WY 10/01/14 ':L 114/oths Now/WUmsC4r7w;-sROAQMAY is DLO CWOCBtp,p *24'0693,44 BROAD AYW 1810//73 CL 110/0S/24 IMAIRAMBIAN 2050 OMR RV 14/063112, OARRD 16/0)/24 CL 110/01/14 K2= NAT*D - y.NGNOLIA / 7175 Nrtl4)334* MAGNOLIA COVIIT 4 • 15/02/09 CL 11S/02/01 2129 REPAIRED ROTE - MAIN / INiAPP Nr0971742 ?40:`00:71 15/02/1a C1. 115/00/03 PRONE SHRUBS - 85111 NATER WELL. N TO Yl 0Y0600024 kROALINAYE COUNT 2 36/06/31 CL 114/07/06 1516 G1UA?TTT1 LINkICR / EAGLES NAY W1'0146446 LTNOICI 16/07/06 CL 114/07/17 C1NAr74T1 - 2417 RACLX3 WAY Wr0640404 IAC1.Rl1NAY es/47/56 CL 116/07/30 GRAPY/TS - 2115 LIMRICY. DR W7906441215 L,IMR:CX OMMT 1 1 16/06/27 C1. 1100001 3311 REPAIR TIMM- to 49 6 JASPER r)0 *21,0644732 CR40 cO+trr i 14/12/04 CL 114/12/04 3420 NOWZ)r0/111P0 = 1915 ORti10W DD Dk 010541102 O31a6NI/00C 15/03/14 CL 115/03/17 HOLE - 3410 112Cx00Y MI6 DR Nr.0504018 HICK.OIYCP l5/04/71 C1. 110/00/23 NIS'Chtsissum WARN -1011307 PARR LANE WY0696Iis roNesTPPt %4/01/20 el. 1t3/09/a0 RAT PSC10 - 5109 PMI RD W►0609671 1:0I 15/11/06 CL 1»/11/06 CITY 00104'6 - 15I5113W 9002 GANNONA 1.10 WT0615341 cANNIINA 16/01/12 L7. 114/01/12 IIISC i4XD4WALRi - 1406 PINELAND DR W70623271 PXMPLA OD 14/00/1• C'L 114/01!14 SOUND GAMBLER - HARRY ROSE WP0604071 UARRYRODC 14/04/06 CL 114/02/09 MARS - MADAM/AY ST WP043,202 EAOADWAYW 70/04/13 C1. 114/0.4/14 Es1W-0016C-TIOM 1. WARM PAVERS-NNY !1 Nrof157a3 NAiI/STN 16/06/17 CL 114/06/11 (ENCS - N HAMPTON SBPH1NI' 3602 93401»1 D Wr0644076 NAMPTQlw 16104/2/ tL 1!0/07/17 POST SIMS rrNA LOTS ON SLIMY WOLLOW Wr0638696 SL[EPYNOL Mon: it 11 14/11/18 CL 124/10/24 2x27 CLEAN STREET - 2308 RASDALL LR YVO570310 RA31UALL 14/12/01 CL 114/12/06 STRAWS 0111132 - 1011.1.010004 RD 44,05'11707 111110104490 14/12/06 CL I24/12/1t .STREET CLEAN - 5305 WOODVILLE IA Nr0377449 WPOD,r1039 13/01/041 CL 114/01/11 :T131? C7.LANIIA7 - 3410 1 PZACR *2004131 CI W70375572 'COMM 13/01/13 CL 115/01/72 CL31AN STREET - 2:09 MAR ST 1110576101 CLU1l* 09/02/30 CL 115/01/12 STRUT CLBA (100 CEDAR 3T. W70311073 CO 14/11/19 Cr. 315/01/23 STRUT CLRAWIWO - 1000 Or SCIVTNDON:0I WYob71114 :NCIIITORz LS/01/10 CL 111/02/30 CLEAN STRICT - RAIN GT / TRIAD S: wv0500346 104341411 38 03/13/10 17,09/43 CLOSED $ORK ORM REPORT DEPT 44 Ohl* 3 KiNpeae Assigned xsquaat Actual Task snort dascripttoa mmusst Pa61/rlty 11114 Department status rpm Sus Cosa nUstsm :0 16/0$/1* 4010 GL 1.15/QI/10 2514 STRzET Ct.E.N - JS01 R OVM E 3T NV061'0144 ORANONTV :5/0)/3) CL 225/04/01 STRUT CLEANING - 7204 )(ALBERT Da 1140514777 MADAIIITS! tstos/14 CL 115/o01t STREET CZ.EANINmt- SRAUMTYS. 6 ALL oV SUR'D U►0663,46 smaySTEL 15/07/31 CL Lis/06/It STUlT CLYANI1ES-7105. i1RAKR rALL+S =moo WP0401916 muumitnit iS/00!76 CL 115/11/14 0.0)(/STAKK2 C A MINO-SIQ7 ROCKLAND DR WtO$09542 ROCKLAND 1S/SO/76 CL )t5/11/14 STAINS :rwasPER-s PLUS 8T 180613316 PWWSTT 13/10/76 CL 115/11/1! STREET RWLKPINLr-2906 SAXTON C: 180611371 SAXTON 13/11/19 C2. 11_111/23 STURM CLCA112110-ARFLECT10N HAY: 01P0616991 KEPI NYDf. 1S/12/16 CL 116/1)/16 ^-E.iA1! SMUT - RASTINOS F14I:71D5VGOir 1111,0620117 XAS:YRXD 14/12/26 d. 115/12/10 STOUR? cLBAJ11$0.1609 ILIVCR61'DE DR *Y0621332 RITISRS DC 13/11/14 CL its/12/!i STREET TGENSO - 2209 CCDAR ST 000620412 =DAS 15/12/15 IR. 115/12/11 STRUT Ct'KAN!711i-)902 Gil Gni WP06191142 LSELN 16/12/59 C1. 116/O./l3 mg= torW1* - EMMY .PLAc 806'D NP0421507 =RIM 16/01/12 CL 116/01/11 s!9k T c1Jt11N-- Si'ATOM 9T Mro622301 SAX)(* 24/01/30 CL 116/01/21 STREET CGJAI4IND-8PRIVOT1'i&D SIIbDIVtSIOs 64,0624445 SE•RIismo 14/09/04 CL 114/07/92 STREIT et,EaStwo-rimalt B? WY0476141 MAX 16/01/21 CL 116/04/0TRU * CLKANING - 01RZ LAMS ON 01XIY PA MP0611044 DIRISYRNS 16/04/06 CL 116104/17 STRUT CLEANZAO-DIXIE PAWN IW 'DIU LARK MF06)499* D2AZYFRIGY t0/04/0! 1'1 110/04/12 STRUT CLEAININNG-PEARLAN4' PENY MIK LANZ WY0616191 P?AMPRMVT COUNT 27 y1` COUNT 366 /360 FINAL TOTALS COUNT 366 36G ••• SRO OY t E P a I T ••• Closed Work Orders for ROW Division less Street Sweeping Work Orders 39 0I/13/46 i7.3ti:S6 CLONED NORX ORDER R31PORT L%?T 44 PAG$ 1 Mwqueat A*Atgned Re0.1I ActWl TAI( H31ort dasoripetoti RAQue6t retiUUty Olt. wpartasat status coMp Oats Caw number YD :5/04/22 4040 OP 2401 MSEC-STAR1: TRSB9-wiR1Y nit WFOS11107 KLRHYDR 34/03/04 OP KISC/KAMDHOLX-JHA Ow CRSEV Po Y M WLEC WPOG33064 PHONCRRPK COURT J 2 14/00/07 OP 2502 TRIM TREES-OLOCJCIMO' GIANS•160: SLSYPY HO WY44$52I7 SLERPYHOL 16/96/04 OP TM TRIES -REGAL OARS 1 fRROADNAY 090655078 WALOAY. rout r 2 2 .)6/06/13 01' 4601 oVEBMAN91/10 TREE -1601 *ASHIMOt0W 3$VIMO Mr0662660 0Astamora 16/06/15 01' ME LTREZ OVERHANGING - 4406 f,ARN0WIJ. Ti( 14913641441 CARMOrr1A 16/0$/25 OP TRILL T'RIRfl /770 - E PBACH HDLI.ow CIA 0F0653*81 PCHHDLCla 16100/26 OP TRst THI M1I$O - LAM WOE MO0954009 W1631 001 16/00/26 AP Mt TAMING - LoWGARAAIDOS N110664014 LOOM= 16/04/24 OP TRU TR2/042123 - KADLR BYRO * 611,06S3l04 KAPLY1PLS 16/06/25 OP rum TRIMMING t. PEACH HOLLOW C# 090653679 PCfgtoLCI11 16/06/74 OP TRIOS ?PUNNING - mos R1A68064 660661406 PSACKB1,05 16/O6/2: OP TRU TRIMMING - RYPLtCT30Y DAT DR. MR Ott WP06S4566 RtFLCBTDR 16/04/25 OT TOTH TRIMMING - t PRACR HOLLOW CIA WP0651615 PCT00tt"ILE 16/06,/31 OP TRIM To/74/IN- 0 PCH NOI.1A* CIA W606S366I 6.041671.01.5 11/06/75 OP 283E TRUIR100 - S POACH HOLD CT Mr0653676 PCHHOLtid 13/04/26 or TRSR TDI%1I1I10 - 6MADYCA$5T 0!0654011 1I1111AYCRST 16/04/2, OP rieut T'RII 2NOI - Tt*tWOOD IA 6606%36J1 ±.N01RWOOO 16/0$/26 OP TRW TRUMPS N MARY'S CUB1 470654010 14ARYCaiw 16/06/73 OP TUX 26SIINrso 11 MACK 00LL014 C26 41P0613907 PCjW OL I1I 56/0$/75 01' rut :RIIN21Ki - *o orgy* OLLA 1.N Nr0653I62 R00p11{NO:. 16/06/25 OP TRIM TYIIMLINO 9619 S FtAC31 /OLIO* C1R 0P0651874 YCNOOLCio 26/06/35 OF TRYR: TR/IMMO - 3719 6RR.SZY PtwRO LY WP0651927 MRSEEYPTN 16/06/25 OP rats TRSIUUNI4 - 2107 POPLAR CRUX LR WP0661910 POPLARCRX 16/04/12 DP TRfIL 'MINIUM 3:01 TOOT RD OAT Pint AT 1170 6 34 6 7 0 YOST 16/06/3% op TRY= 11776MIN0 604 POR6ST OAR -4 LM WPOlS3414 ►OROARSLN 16/04/25 OP tats 2R11r(fN0 402 COLrIITRY PLACE LVD Kr0653e73 COUNTPLRV 16/06/07 OP TRIMS WERRA/031PG NIST OAKS S.vv / PIT Mr0650577 *OA1<B84Vp 56/06/01 OP TRIM 41149S - 2 DAN ANTL010 WP0447039 SAYARTS 16/06/14 OP :RTN TREES RD ACR039 PROM 5406 CAR 111,0641514 MIMOSA :6/06/02 Or Ta37i TREES - N WMNINOTGO MT0643040 mA,SHINGS 16/06/:6 OP mg TN0rd-MANAY ROSZ P7DI6 SCHLTDRR TO r 14,0452205 IAR YMOpIK S6/06/15 Or TRIM Txsss-LZHIE PAPA r1i0N RAMAN TO NC MP0152447 DIXILY?JUI :6/04/14 OD TRIM TRW-MCNAt0 PROM 03CHTPY PLRCH !LV WP0662101 MCRARGRD 31/06/:0 010 TRIM Volo-0Y31RKAIK33N0 KOAD-M CLItNX IJ1KR Nr0639046 CLRI.RRI.PH :6/04/25 D7 TRS* TRIXIIt)OC • 404 W PO:HR031 MtN)0w2 C WY066JI74 PRt$Iw7«9 COUNT 12 37 21/47/17 DP 2504 ;RIM RR RCKE,-r'T1 RD 6 II014T06 0666S DR 090644493 F:TE 26/07/27 OP TRIM TREY% OVERHANGING 61DYNALR-WHET 0Ak W2'044,540 NOAXa6LVL 40 08/13/28 41:96:59 CLOG= SORP. OADER REPORT DEPT 44 PAZ R•QNeaz ARSISRad Mequess Aat001 U.S$1 tOort desksiptlon Requsse .ablate bete D•partih.Ot status comp date Cote nusbek lb LS/OS/711 4080 OP YSOO KEMOVC TRte 2701 _J UR)$ R031 :.11 NVOS97608 I.AMMIOSL CYAlI1T i !S/49/32 06 2006 TRUSS RI:NOVAS. 71X1E FARM RD IRZDQ1 WP0600437 1IXIEtRNS 16/60/01 OP ■EM:)w! TREE !MAMMY / MIMS FEIN CAA NP045047_ SROADNAYW 11/01/23 OP TRtt RVNOVAL . PtARLAIID PXWY / MUTT CiLt Nr0lS3198 PRARPRINY 16/00/08 OP TRIC 1;M7VAL-2+24 5uaSNkDE C4 0,0651205 SUNSMADSC 14f88/711 OP VPOSTATTON ■XMOVAL - N SACRAMENTO / t PL 10,04S4221 $ACRAAVVM COUNT : 3 1R/ow/2a or 2501 MOWING - 1514 SC017*AL0 III - C2T7 03 C 3 WP0612477 PICCOMALD 10/09/07 OP MON5110 - 3909-4115 MAW RD - erre UAW W70455171 masa 14/07/111 OP NOWt110 - 7033 ROB1W GOIp@ V?06.18377 RO8TY400ti 16/08/07 OP ROYINO-MVtAWA • RRooa71D8 PD Vr0650521 MY[AMA 84/00/08 DP ROM MOMLMO-2304 At7GSJ5TA OR 1x0631462 AUGUSTA 1e/0•/os 0 /14011117-It18G.81ST 1 aauTlamtM rousts 1►0S5S011 81BGlit. 1P 18/10/04 OP ROM/MOMZW0-O'DAT RD 0 RPAAMAY $?0610112 WAY 18/04/001 OP ROW/WOWflIG-610: RIC! OSTER OD *T0688144. RTCiDeltS COtnrr 4 d If/OV/0/ OP 16/89/01 Of 10/80/31 Or 16/04/21 0! 16/02/1! OP t4/114/10 01 16/04/27 OP 16/06/10 OP 14/03/78 OP if/07/06 OP 14/0)129 OP 16/67/01 OP 14/03/98 oP COUNT 23 0000' 6S FINAL TOTALS NOWT 6S ••• t N b OF R 4 P 0 e : 7527 DoW R?RtlT Cz.CAR1No-PSI PRAM RLAR00S DR WPOSS50a7 PtACNPL08 STRUT C3.1 L110 • ROSTRWO0D C1R 1r06S4036 RObI11N000 OTRtIT CLMAMING 7704 ROED1f100D cTR 1?OGS460I ROMIMN000 STRt7•T CLZAMI110 • 1270 TNR3TR: RUMS C1R WV0643287 TN7IZU11 STRUT CLI WIM0-CIDER ST Wr0625345 MAR 57RRiT C1.1 cusgusp.ours FARM ?RON NVY 35 r rr01141113 D WWWNW STRICT CU auMO-DORROAL • COMM CLUB b Rr06452S7 DORDOAL STRUT CLtAlR18Q-PUA A30 PARKWAY PROM 01 Wr0643112 PIARPRIIW7 IT0;ET CLRAMING-SAXTON GT Wvc633$41 4AX'1091 STRUT SOUP - NARICIT / Nii111XLL 090448401 MAXIM STRUT SURF 2505 5A3TON C: Wr013)939 SAZ30A1 STRUT MINING - DIXIX FRS FROM MAIN ST WY014f232 SIMS19RMS STRtir-' 9WEltPIN0 - YR2234 1190441078 SMOWt*K ? Total of 52 Open Work Orders after removing Street Sweeping Work Orders 41 v * tr r --.444114N BRINGING RESOURCES TO THE PEARLAND COMMUNITY CITY OF PEARLAND, TEXAS 228 I 67 . , .. ,ot "4,0 oits.b.; : . • Fiscal Year Adopted ,.. BUDGET ../ ., : .. . pearlandtx.gov 4 ; � zoo „ QRA LA i . aril . 1. ,10 ODE �R! � .. ._ , 1 ifs. - 4 j c, mow, C i. a r 5 - • _. fS7" 1 S9N CITY OF PEARLAND, TEXAS ANNUAL BUDGET AND TAX RATE OCTOBER 1, 2016 — SEPTEMBER 30, 2017 In accordance with SB 656 This budget is estimated to raise more revenue from property taxes than last year's budget by $7, 190,998 which is a 12.2% increase from last year's budget. Of that amount, $2,582,869 is estimated property tax revenue to be raised from new property added to the tax roll this year. Property Tax Comparison: FY 2016 FY 2017 Adopted and Proposed Tax Rate 0.7053 0.6812 Effective Tax Rate 0.66037 0.6391 Effective Maximum Operating Rate 0.2026029 0.1992 Maximum Operating Rate 0.222511 0.2166 Debt Tax Rate 0.4828 0.4400 Rollback Tax Rate 0.705311 0.6566 Vote on Budget: For: Councilmembers Moore, Ordeneaux, Hill and Perez Against: Councilmembers Carbone and Reed Present and Not Voting: None Absent: None Vote on Tax Rate: For: Councilmembers Reed, Moore, Ordeneaux, Hill and Perez Against: Councilmember Carbone Present and Not Voting: None Absent: None Total amount of outstanding municipal debt obligations secured by property taxes for fiscal year 2017 is $29,667,556. a GOVERNMENT FINANCE OFFICERS ASSOCIATION D is tin gu ished B u dge t P resentation A w ard PRESENTED TO City of Pearland Texas For the Fiscal Year Beginning October 1, 2015 • Executive Director 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 2015. In order to receive this award,a governmental unit must publish a budget document that meets program criteria as a policy document,as a financial plan,as an operations guide,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. • RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE CITY OF PEARLAND ao� �° rt1ge ADOPTED BUDGET ` o FISCAL YEAR OCTOBER 1, 2016 - SEPTEMBER 30, 2017111 !S7 'sq% iti ,,. ,,,i. . Tom Reid Mayor SI , . CITY COUNCIL Clay Pearson City Manager 7t i. ii: 1 fts. ...: st:iiall., . A Aro* 7 A - .r Tony Carbone Derek Reed Gary Moore Position 1 Position 2 Position 3 Jon Branson Mayor Pro Tern City Manager o g it a" , - r 4 • v . • ........ r/ I '7 / 9Keith Ordeneaux Gre Hill Trent Perez Position 4 Position 5 Position 6 Trent Epperson Assistant City Manager City of Pearland , 3519 Liberty Drive , Pearland TX 77581 ( 281 )652 - 1600 www . pearlandtx . gov .. a k { yc R r :*. 3w yc .y' THIS PAGE INTENTIONALLY BLANK CITY OF PEARLAND ADOPTED BUDGET FY 2017 TABLE OF CONTENTS TRANSMITTAL LETTER City Manager's Budget Message INTRODUCTION Introduction to Pearland, Demographics Area Map 1 City Organization Chart 5 City Management 6 City Council Strategic Priorities 7 Reader's Guide to the Budget— Fund Structure, Department Relationships to Funds 10 New Positions 17 Staffing Levels 18 Department Supplemental Requests Funded by Strategic Priority 20 Budget Calendar 22 FINANCIAL POLICY 27 FINANCIAL SUMMARIES Summary All Funds Revenues and Expenditures 43 Analysis of Fund Balances and Cash Equivalents 45 Trends General Fund Revenues 47 General Fund Expenditures 48 General Fund, Fund Balance 49 Water and Sewer Fund Revenues 50 Water and Sewer Expenses 51 Water and Sewer Fund Cash Equivalents Fund Balance 52 MULTI-YEAR FORECAST Overview 53 Debt Service Fund 58 General Fund 60 Water/Sewer Fund 66 Pearland Economic Development Corporation 70 PROPERTY TAXES Overview 71 Tax Collections 72 Tax Rate Distribution 73 Assessed Valuation, Taxes Levied and Taxes Collected 74 Principal Taxpayers 76 DEBT SERVICE FUND Overview 77 Summary of Revenues, Expenditures and Fund Balance 78 Governmental Debt to Maturity 81 Graphs: Governmental Debt to Maturity 82 Ratio of Net Bonded Debt to Assessed Valuation 82 Net Bonded Debt per Capita 82 Debt Service Schedules 83 GENERAL FUND Overview 87 Revenue and Expenditure Summary 88 General Fund Revenues 90 General Fund Expenditure Summary By Category(All Departments) 93 General Fund Expenditures by Function/Department 94 General Government Organization Chart 96 Expenditure Summary 97 City Council 98 City Manager 99 Human Resources 100 City Secretary 101 Legal Department 102 Information Systems 103 Finance Department 105 Other Requirements 107 Library 108 Public Safety Public Safety- Police Department Organization Chart 109 Public Safety- Fire Department Organization Chart 110 Expenditure Summary 111 Police Department 112 Fire Department 113 Community Services Organization Chart 118 Expenditure Summary 119 Community Development 120 Communications 122 Municipal Court 124 Public Works Organization Chart 125 Expenditure Summary 126 Overview 127 Parks& Recreation Parks& Recreation Department Organization Chart 130 Expenditure and Staffing Summary 131 Parks& Recreation Overview 132 Overview 135 Water&Sewer Revenue & Expense Summary 136 Water&Sewer Fund Revenues 137 Expense Summary 139 Public Works Water&Sewer Organization Chart 140 Public Works Utilities 141 Finance—Utility Customer Services 143 Enterprise Fund Debt Maturity Schedule 144 Enterprise Fund Debt Service Schedule 146 Solid Waste Fund 149 CAPITAL PROJECT FUNDS Overview 151 Summary of Revenues, Expenditures and Fund Balances 154 Summary of Capital Projects by Project Type 156 SPECIAL REVENUE FUNDS Definition 167 Hotel/Motel Occupancy Tax/Convention & Visitors' Bureau Overview 168 Court Security Overview 169 Citywide Donation Overview 170 Court Technology Overview 171 Street Assessment Overview 172 Park Donations Overview 173 Tree Trust Overview 174 Police State Seizure Overview 175 Federal Police Overview 176 Park & Recreation Development Overview 177 Map of City Park Zones 178 Sidewalk Overview 179 Grant Fund 180 Community Development Block Grant (CDBG) Overview 181 Traffic Improvement Overview 182 Court Juvenile Management Overview 183 Municipal Channel (PEG) Overview 184 University of Houston, Clearlake, Pearland Campus Overview 185 University of Houston Capital Renewal Overview 186 Regional Detention Overview 187 Lower Kirby Urban Center Overview 188 INTERNAL SERVICE FUNDS Definition 189 Property/Liability Insurance 190 Medical Self-Insurance 192 COMPONENT UNITS Definition 195 PEDC Organization Chart 196 PEDC Overview 197 Expenditure and Staffing Summary by Department 199 Debt to Maturity 201 Debt Service Schedule 202 APPENDIX A City Charter Article 8, Municipal Finance 203 Property Tax Ordinance No. 1530 207 Budget Ordinance No. 1529, including Pay Plans 209 Usage and Service Fees Ordinance No. 1358-14, including Fee Schedule 219 GLOSSARY Glossary 231 Acronyms 238 e ';;L' ,1 ;v-a . C.`e s fit 1i T .t ff F i•, c*.. 1' i• THIS PAGE INTENTIONALLY BLANK July 29, 2016 September 29, 2016 updated NOTE: To avoid confusion and provide consistency with the balance of this document, the transmittal letter has been updated to reflect certified taxable value; corresponding updates to reflect budget decisions and new totals with the adopted tax rate and subsequent adopted revenues and expenditures. Honorable Mayor Reid and City Council members, The value that Pearland brings Matt Buchanan, President of the Pearland Economic Development Corporation (PEDC) and Executive Manager of Development Services for the City was one of our presenters during our second year of organization-wide 'Road Shows.' Road Shows are employee-presented information sessions to fellow City of Pearland colleagues. Matt shared the importance of economic development to a community along with the strategic priorities and recent accomplishments of the PEDC. All of which were related back to a simple formula that is so important to the vitality of our Community: v * tr = r The property and sales value (v)of the community multiplied by the tax rate (tr) brings financial resources (r). The proposition is that, as far as financial resources to the City are concerned, our tax rates will not change much (more on that later). What we can affect through our efforts every day increases the value. Communities that are strategically focused on increasing value create a place where demand for quality real estate and services drives up values. Year-over-year those communities are successful in generating the financial resources to provide essential public services. This is a simple concept but one that powers the City of Pearland and local governmental entities' ability r`•-:c to provide quality services to our residents. There are many things outside of the direct control of City 815. � z281N.It Sold government that drive value in our community. The overall 330K 3°^� •; regional and global economy -- the price of oil, health care _ _ _ 435K' • ' 30K 280K costs, and interest rates are a few that come to mind — 'Y 289K',280K K, ~ �13397`�: 460K 380326K move value trends up or down. Closer to home, quality !+ 7Ky�'� ^. C/4 -yK public education is likely the single-most important factor in �, i=258K /'445KUK 2A6K! .K the home buying decisions. Long term, the quality of our 11 .259K �, 345KK K 4K'. schools will be a major determining factor of value that will i•., ,® 374K 2250K . '1a6K - » M• , `. ...I�1 ) 410K „ sustain our City. Other factors are an available workforce 1L I. 2.4.051 that's flexible and trained, and a superior quality of life along y 280K with access to markets/customers. p i.0,1.265K. >r, 950K �,z ;) So, what can be done by the City of Pearland to -, am r:')= 2�• 285K)20K enhance sustainable growing value? We do have i6" .. ~'' •1 ^. 1 21250K p K options within City responsibilities for decision-making to ,, e,,4 enhance value. Mobility and infrastructure improvements iyi' 'AI 3,� Y ""°ys, moare most often recognized. We have an aggressive and ++--taL 2 275 55M 0, . '.• successful capital improvements plan for roads such as I. : , - ,�,,. ` McHard and are building a surface water treatment plant, , 385K both of which are among the $545 million in projects within 316K .2-. P.'—! }�,1• lll''' �� 400 K the 2017 - 2021 Capital Improvements Program. ,. • %\ Elgi 1324K .� )r!!! �� 1 3M):,e,,,, F v Additionally, investment in corridor development and entryway enhancement make Pearland more attractive to both new businesses and new residents. The City of Pearland tax base remains dominated by residential uses, nearly 3/ of the total. The screen shot at left from a Houston Association of Realtors application shows areas of new construction and houses for sale. The snapshot in time also shows established residential neighborhoods that are stable and continue to invite newcomers, move-ups and downsizers. Values do not always rise. After the national financial crisis, from 2010 through 2013, the values remained relatively flat for three years. However, the extraordinary jump from revaluations in a quality community and new growth have brought the taxable roll (excluding the Shadow Creek Ranch TIRZ)to $7.62 billion, an 18.6% jump from the prior year. There is definitely positive momentum. There is past precedent for high velocity growth, excluding value from annexation, for the three years from 2005 through 2008 of compounding 20% growth, but the last year's community attainment is notable. Of course, cities in Texas are mandated to have a process for operating revenue growth to be capped at 8°/0 (excluding new valuation) before an additional process is required for the adopted rate. The implications and opportunity from this are described later in this document. As we navigate through the inevitable development cycle every city experiences, our paradigm will continue to shift away from relying on new development and move toward cultivating value in our existing assets. This can be a difficult transition for cities to make but one that can and should be planned for by making sound financial decisions and strategic investments in our community. Commitments made today in infrastructure, mobility, public safety, technology, exceptional services and sustainable, high quality development will pay dividends in the future as Pearland continues to be a growing city; less in terms of population and more in terms of growing value. TIRZ and TAXABLE Valuation $10 $9 $8 $7 (r) $6 7.6 o $5 6.4 m $4 5.4 5.9 4 7 5.0 5.1 5.1 5.2 $3 .4 . 3.8 $2 Oro O'1' Og 0 ,\ N N(1 N '��' NO N qO ,LO IO 1O �O rt, 1O qO qO ri3O IO •TIRZ ❑TAXABLE ROLL (Net-TIRZ) Big picture When our budget team met over the last several months to review department requests and rationale and make funding decisions, the chart template below through many iterations drove much of the subsequent discussions. Page ii City of Pearland Budget FY 2016/17 FY 2015/16 FY 2016/17 General Fund Overview FY 2014/15 At Rollback w/ 2.4 cents (dollars in millions) Actual Amended Property Tax Additional to Budget Rate O&M Beginning Fund Balance $19.5 $21.4 $14.4 $ 14.4 Revenue $65.9 $71.3 $ 72.1 $ 74.3 Expenditures (including $64.0 $78.2 $74.9 $ 76.5 nsfers) Operating Net $1.9 $(6.9) $ (2.8) $(2.2) Ending Fund Balance $21.4 $14.4 $ 11.6 12.2 Targeted minimum fund balance (2 months of recurring operating $11.2 $11.5 $11.6 expenditures Totals may not add due to rounding. Amended FY 2015/16 Budget through July 2016 amendments. 2.4 cents additional to O&M shown in green reflects $2.2 million additional revenue from property tax and spending $1.6 million; targeted fund balance of 15.1% estimated on new expenditure total. When the budget was presented to Council on August 8, 2016, the Rollback Tax Rate was believed to be $0.6612. The certified Rollback tax rate of$0.6566 was received after that date from the Brazoria County Tax Assessor-Collector. Net revenues are less than expenditures for FY 2016/17 by $2.2 million. Though some of that is attributable to the recommended supplemental requests for non-recurring items, most of that negative net for the upcoming fiscal year results from ongoing expenditures exceeding revenues. The operating deficit remains a manageable concern for the next fiscal year ending September 30, 2017. However, without continued substantial value and sales tax revenue growth, it will continue to hamper our ability to serve community needs. A significant portion of this imbalance is driven by the increases seen in last year's budget. The City undertook major service expansions with Police and Fire (two new stations opening with associated 24- hour operations and eight additional police officers, in fiscal year 2016) that are being absorbed financially. Continued growth and revenue expansion are planned to provide us with structural balance in future years. The notation for the big picture above is that with property tax at the rollback rate, the ending fund balance at end of FY 2016/17 is only at the targeted minimum fund balance. Moreover, to get the expenditures down to a level to even achieve that minimum balance, the streets and sidewalks maintenance expenditures had to be cut below the last two years' amount. Revenue -- Sales Tax While property tax is the sole resource for debt service, the largest operating revenue to the General Fund is sales and use tax, which is based upon the value of goods and services sold within the community. The Pearland Economic Development Corporation (PEDC), an extension of the City with specific outcomes, relies almost entirely on sales tax revenue. Page iii City of Pearland Budget FY 2016/17 City operations have benefitted from the symbiotic growth in the number of retail establishments and rooftops. With energy, a big driver of the metro economy, having a cooling effect on the economies of many Texas cities, Pearland's sales growth remains robust as shown in a rolling last 12-month (from May 2016) average for Pearland and selected other Texas cities: 12.0% 10.1% 10.0% -- 8.0% -- 6.7% 6.1% o 5.6/o 6.0% 3.7 4.0% T 1.6% .0% I % 1■ ■.7% 1� - 0= 0.0% -3.0% -3.0% -3.8% -2.0% — 0.0% II I F -4.0% --- -6.0% o G� ea�ac . ,<• ado caeca 5`��oc a G�� `�aca aQoo� J G�� `\yoo CO' �oc' Q c° 5 �a �eaA Q �`° 0 Qa G°\\ee fie+ SoAa Jc `S`y5o e oo r Keeping in mind the uncertainty surrounding the price of oil and the relative volatility of sales tax, this budget is presented with a projected 4% sales tax growth for FY2016/17 in the General Fund. Sales and Use revenues are budgeted for $20.5 million (sales tax is $20.3m and use tax is $240,000) in FY 2016/17, 28% of the total revenue. The Pearland Economic Development Corporation is budgeted for another$10.2 million. We believe this to be an appropriate estimate with our current retail and population growth. Revenue — Property Tax: Our Two Cent, or more, opportunity Values of the City's tax base have grown such that the City's required tax rate for debt service requirement will decline for FY 2016/17 by 41/4 cents, from $0.4828 to $0.4400 per$100 valuation. The growth in taxable value is complemented by interest rate savings through the City's successful refinancing of existing debt, using the same debt structure. When we made future estimates during budget preparation in 2015, the forecast showed the anticipated 2017 General Fund Levy at $0.2394 and Debt Service at $0.4900 for a $0.7294 total, increasing to $0.7494 total projected out to FY 2017/18 at the time. The adopted rates came down slightly less through the budget process for 2016 than initially shown during the budget presentation. Regardless, looking at the available information from last year to now, the rates are about seven cents less — the power of momentum on the tax base value has significant effects. The value power is also felt for the school districts, which have twice the total rate as the City's rate. For instance, Alvin ISD had a total rate going up just three pennies following a large voter-approved capital bond program. Projections from the new bond issue for additional school buildings in that growing district were described to voters as an eight penny increase when it went to the voters. In essence, AISD will fund their bond program next year using less than half of the planned tax rate increase. Likewise, Brazoria County Drainage District #4 is planning a flat 15.5 cents/$100 rate; Pearland ISD is planning a rate no higher than current (although they have a bond issue likely to come for voter consideration in the next year). For the upcoming FY 2016/17 annual budget, the lowered debt service rate presents O&M rate options for the City. The effective tax rate brings in the same operating revenue as last year, excluding new properties. A tax rate at the State rollback rate decreases the overall rate by over four cents due to the reduction in the debt service component of the tax rate. Two additional options are shown below. If the overall rate is kept constant, the General Fund operations would be able to move up to 0.2653. However, Page iv City of Pearland Budget FY 2016/17 the opportunity is that given the increase in valuations, the ongoing needs of current operations and the need to put more resources into preventative maintenance and pay-as-you-go work, the City adopt a property tax rate of at least 0.6812. That would mean a 2.4 cent reduction from the FY 2015/16 rate, while simultaneously increasing operating revenue. FY 2016/17*_ _ Reduce General Fund and FY 2015/16 Rollback Total Rate 2 Debt Service Actual Effective Tax Rate (8% cents and Keep Total property Tax Rates Rates Rate revenue Improve Rate cap) O&M rate Constant with two cents O&M 0.2225 0.1992 0.2166 0.2412 0.2655 Debt service 0.4828 0.4400 0.4400 0.4400 0.4400 Total 0.7053 0.6392 0.6566 0.6812 0.7053 G.F. Property Tax Revenue + TIRZ $13.8 + $9.2 $15.0+ $ 8.6 $ 16.4+ 8.8 $ 18.2+ $ 9.1 $ 20.1+ $ 9.4 Administrative Fee = $23.1 = $ 23.6 = $ 25.2 = $ 27.3 = $ 29.5 (in millions) *For FY 2016/17, the estimated rollback rate of $0.6612 was used in the recommended budget revenue as originally presented to Council. The certified rollback rate of$0.6566 is shown in purple. The additional revenue by reducing the current total City property tax levy by two cents, yet still add two cents to operations and maintenance is shown in green. FY 2016/17 estimated rollback rate is an estimate and relies upon best information before getting final numbers from County Assessor offices in August. Apart from the positive revenue implications, providing a new total of at least 2.4 cents per 100 valuation to City operations begins to better balance the operating tax rate versus debt service. The ratio has been discussed at early input sessions on the budget as Pearland works to become long- term sustainable for the city we are becoming. In FY 2015/16, 68% of the total tax rate was allocated to debt service and 32% allocated to operations. The debt service is fixed, but by using an additional two cents to fund operations as opposed to a total four-cent cut, the percentage would be 65% and 35% respectively, a slight move to a better long-term ratio as we mature. Comparisons are difficult based on varying values, tax bases, and sales taxes; taking that into mind, the comparison city demographics table in this document show operations tax rates of 0.4100, 0.1703, and 0.4010, 0.4500, for McKinney, Sugar Land, League City, and Baytown respectively. From a City property tax revenue perspective, using an additional pennies in our operations rate annually is significant. With our tax base, the resulting $1.5 million to City operations, we would recommend looking among a combination of areas: 1. Additional streets and sidewalk maintenance and replacement. 2. Additional fund balance in excess of minimum for emergencies and economic contingency; narrow the operating net deficit. 3. Future capital improvements and capital outlay pay-as-you-go as opposed to debt issuance or other financing. 4. Accelerate fleet upgrades 5. Add additional staff- Community Development Page v City of Pearland Budget FY 2016/17 Please note that there is nothing magical about the whole numbers of two cents; 2.5 or some other agreed numbers accomplishes much. More detail is shown below for additional two cents operating revenue to the General Fund from the rollback rate: Outline of Potential Additional Items Item Running (.2166) Item Description Rollback Amount Total Rate Contribution to Allocating additional funding to the Police Department Fleet Replacement Program will allow 1 Police Fleet for needed additional replacement vehicles in future years. 225,000 225,000 Replacement Fund 2 Additional Mowing This amount will cover additional Facilities Maintenance for HVAC repairs. 200,000 425,000 Maintain Streets& In order to remain within policy for required minimum fund balance,funding for Streets& 3 Sidewalks Funding Sidewalks was reduced in the recommended budget.This amount would re-establish the 635,000 1,060,000 reduction and allocate an additional$135,000 to the Streets and Sidewalks program. Community The City continues to be among the fastest growing in the country.This funding would be used 4 Development to hire additional positions to facilitate that continued development.This additional Planner 200,000 1,260,000 Staffing will help alleviate workload of existing staff and provide a more expedient experience for applicants. This additional funding would bring the General Fund up from 1,728 over minimum fund balance to 420,000 over minimum fund balance.With the price of oil remaining low,it will be (.2412) 5 Fund Balance 310,669 1,570,669 important to maintain an adequate amount of fund balance in case revenue is impacted.This Additional would also reduce our functional operating deficit from$2.9 million to$2.3 million. 2.5Q to O&M This funding would be split between the Streets and Sidewalks Recapitalization programs.This 6 Additional Street& funding,in addition to the funding outlined above in item#3,would bring the total combined 200,000 1,770,669 Sidewalks budget for the Streets and Sidewalks Recapitalization programs to$1,729272. 7 Sidewalk Gap The Sidewalk Gap program provides funding to connect existing segments of sidewalks.This 300,000 2,070,669 Program funding would allow the program to expand in FY17. Pay-as-you-go Future (.2512) This expansion of facility maintenance funding would allow the Facilities Division to extend 8 Equipment/Capitalize 400,000 2,470,669 Additional the life of existing City facilities by increasing investment in the short term. 3.SQ to O&M tion of City Facilities This additional funding,along with item#6,would bring the General Fund up from 1,728 over minimum fund balance to 2.8 million over minimum fund balance.With the price of oil (.2655) 9 Fund Balance remaining low,it will be important to maintain an adequate amount of fund balance in case 1,729,331 4,200,000 Current Rate revenue is impacted.This would also reduce our functional operating deficit from$2.9 million Additional to$800,000. 4.9Q to O&M In Texas budget law, the property tax revenue can simply be raised up to 8% from the prior year, excluding revenue from new construction. Beyond the 8% threshold, City Council can raise that rate based on the local situation and local decision, but there are provisions for citizens to petition for a vote on the additional revenue. According to information from the Texas Municipal League, that happens each year with about 10% of cities, some smaller places, but others higher growth (Frisco, Plano, North Richland Hills, Rowlett) similar to Pearland working to meet public service needs that the straight math of a revenue limit does not address. In 2014, according to TML, there were 67 of 704 cities adopting a rate bringing in revenue over 8%. The budget that's formally presented originally in the filed budget for the City Council's consideration did not include the additional revenue or expenditures associated with the two, three and four cents outlined above. All of the above scenarios exceed the estimated rollback tax rate; all but the last provides a lower overall City property tax rate from the adopted FY 2015/16 amount. If the policy decision is to exceed the rollback rate, then qualified voters, by petition, may require an election to be held to reduce the adopted tax rate to the rollback rate. The petition must be signed by 7% of the number of registered voters based on the most official list and must be submitted by or before the 90th day after the date on which the tax rate is adopted. For the June 18, Runoff Election we had 64,896 registered voters and 7% is 4,543. If the election passes, the adopted tax rate is reduced to the rollback rate and correct tax bills are mailed. If the election fails, the adopted property tax rate stands. Given the option for an election, additional expenses associated with the amount over the roll back rate would need to be clearly identified so they could be removed if reduced by the voters. Page vi City of Pearland Budget FY 2016/17 For future years beyond the FY 2016/17 Budget, the multi-year budget estimate with available information is that future debt service requirements can be held at $0.4400 for at least one additional year, shown in the multi-year forecast. Those projections make estimates of future taxable value, which continue to perform strongly through calendar year 2016, but cannot be projected with certainty for out years. A City taxable value of $187,000 in tax year 2015, payable in 2016 is a fair average. If the overall City tax rate goes down by 2.4 cents (still giving two more cents to operations), and the value of that same house goes up 10%, to $205,700, the City tax bill goes up $40 from that two cent rate difference, $1,327 to $1,367. Expenditures for investment and services The adopted FY 2016/17 budget has total General Fund expenditures of $76.5 million. That's a 2.3% decrease from the estimated current FY 2015/16 expenditures which includes the roll-overs and amendments recognized during the fiscal year. The $76.5 million for FY 2016/17 is 4.3% more than the $73.3 million in the original FY 2015/2016 adopted budget. General Fund Expenditures (in FY 2014/15 FY 2015/16 FY 2016/17 millions) Actual Salaries and Wages $ 42.8 $ 47.8 _ $ 51.2 Materials and Supplies 1.8 2.7 _ 2.4 Building and Grounds 1.5 3.1 2.8 Repair and Maintenance 2.4 3.2 _- 2.8 Misc. Service 10.0 13.9 12.0 - - --------------- ---- Inventory items - .3 _5 _ .4 Capital Outlay 3.9 4.5 3.7 Transfers out 1.3 2.6 1.2 Total $ 64.0 $ 78.2 $ 76.5 Totals may not equal due to rounding. FY 2016/17 in purple uses base expenditures, with addition available from additional property tax rate to O&M beyond rollback rate. The table illustrates clearly that City government is a people business, so far as the General Fund resources are committed. A full 67% of total General Fund expenditures are dedicated to staff wages and benefits. For FY 2016/17, our projected employee health care plan (assuming 611 full-time employees on the plan) with the City-funding 68% of dependent coverage and 100% of the Kelsey Care 80/20 employee-only, totals $ 7.5 million. The City contribution is $6.1 million of that total, or 82% while employees contribute in aggregate $1.4 million, the remaining 18%. For half of our staff team this year, those in the employee-only coverages, there is zero cost for their health care, as long as they are in the base Kelsey 80/20 program and have completed a wellness visit in FY 2015/16. For the other half, the City still bears the vast majority of costs at 83%. While employees' contributions for FY 2016/17 rose moderately, the increase is far less than prior years. That reigning-in of costs has been jointly achieved with plan changes, reduced major claims, and keeping current with the health care industry generally in regularly amending the program. Public safety investment Around our country, there have been too many instances of loss in law enforcement. Nearby Dallas lives were senselessly ripped forever. Now Baton Rouge. The ceremonies that followed were close to home as just weeks before, the City of Pearland lost one of our own. Police Officer Endy Ekpanya was killed in a car crash on duty, Endy's life of service and family continues to be recognized, his accomplishments and commitments now known for what he quietly achieved. Our Chief Chris Doyle summarized things Page vii City of Pearland Budget FY 2016/17 well, noting Endy as a "man of value" and challenging us all to emulate that characteristic. Not an economic value as this budget is necessarily focused, but value in public service, the kind of value that all of our City staff should strive to exemplify. The City of Pearland public safety efforts are headlined by our organization's Police and Fire departments, supported by the entire City organization and our community's residents, businesses and other governmental agencies. In Pearland, we have grown the staff resources, training, and technology to be even more modern and professional, a long-standing Pearland commitment. Expenditures for Police and Fire in FY 2016/17 represent 53% of our $76.5 million in General Fund expenditures at $40.3 million, about equal to the FY 2015/16 estimate. However, the $40 million level for police and fire is $6.6 million, 20%, more than the FY 2014/15 actual amount. The additional personnel for improving service levels with additional police and fire represent a continuing commitment to this highest priority. The table illustrates the number of employees for the last several years in a snapshot of each year, showing the success from Human Resources, Police and Fire administrations and the Communications Department with their marketing efforts - in recruiting quality candidates to join us. Not willing to rest on our laurels, recognizing the realities of a large geography, and a complex community of residents and business, a Police staffing and utilization study was budgeted for FY 2015/16. That study was awarded to the Berkshire group in January 2016 with results received in August 2016. The report 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 July 2016* Police Peace Officers 141 144 155 161 • Fire (reflects Fire and EMS) 42 53 73 81 228 Total and Change from prior year 183 +14 +31 197 242 +14 July is shown for 2016 and includes the three new officers sworn in the TCOLE certification, plus also includes eight officers coming out of police academy in August. As of July 2016, there are 163 positions used in budgeting and awaiting two slots to fill. details a growing, professional department rapidly transitioning to a complex environment. In this budget, we have included funds, $100,000, to begin implementation of the Berkshire study. There is also funding for four additional officers and additional vehicles. This budget includes fleet replacements in police with 22 replacement police vehicles and three motorcycles. There is a replacement ambulance ($160,000) and two replacement vehicles in the Fire Department. The Fire Department continues to grow and evolve rapidly as an all-hazards organization and is making great strides at catching up with City growth. Recent reorganization created a Community Risk Reduction Division with strong emphasis on community risk reduction to prevent illness, injury, property damage and use of code enforcement to improve value as mentioned in the economic formula above. Problem property abatement work is beginning to see more success. A full-time emergency manager will provide someone dedicated to developing the contingency plans and resources, partnerships, and paperwork that's necessary before, during, and after an emergency. Adding two Fire Stations and attending personnel to the Operations Division for incidents that occur beyond prevention is improving response times. A Training Division has been created to maintain and improve proficiency of all personnel across all Divisions and Administration. Groundbreaking for a new relocated Fire Station 1 at McHard and Old Alvin will occur in FY 2016/17. There will not be additional Page viii City of Pearland Budget FY 2016/17 personnel necessary for this station move, nor are there additional firefighter positions over what we have added recently, but we do look forward to improved fire station facilities and better response times with Station 1 located on those arterial roads. PFD continues its reputation of bringing nationally-renowned public safety speakers to our facilities for regional participation. Our citywide commitment to quality training and development builds and builds. The results of a Standards of Cover and Staffing Utilization Study, awarded to Citygate Associates, should be available by February of 2017 in time to prepare for the FY2018 budget, if not before. In addition, we have the Medicare payment of $558,188 budgeted) additional revenue from contribution by Brazoria County ($100,000) towards City-provided Fire services into the unincorporated portion of Brazoria County that is our ETJ. Discussions are ongoing with the County as the City provides an estimated additional $1 million in service outside our City limits. Parks, recreation and events Parks improve the local tax base and increase property values. It is proven that private property values increase closer to parks. (National Recreation Parks Association, 2015). Likewise, a Texas A&M review of 25 studies, investigating whether parks and open space contributed positively to the property values of surrounding properties, found in 20 of the 25 studies that property values were higher. "The real estate market consistently demonstrates that many people are willing to pay a larger amount for property located close to parks and open space areas than for a home that does not offer this amenity," (Crompton, 2010). The increase in private property value due to the proximity to parks increases property tax revenues and improves local economies. You can see real estate advertisements touting adjacency or proximity to any number of parks, playgrounds, pathways or open waters. With a current 5-year Capital Improvement Program of$24.6 million, our Parks & Recreation Department is gaining status and appropriate momentum as a premiere agency among peer communities. This program includes the addition or enhancement of 13 Park or Recreation amenities ranging from additional phases to completed projects, increased mileage to a multi-modal trail system, a systematic recapitalization and the addition of our City's new Delores Fenwick Nature Center. These projects will close out the remaining Parks & Recreation components of the 2007 Bond Referendum and pave the way to identifying the new opportunities to serve our residents through this departmental vehicle. Our Recreation Center & Natatorium is entering the sixth year of operation with a membership constituency that exceeds the retention curve typically considered of similar facilities. With a current membership base that has varied less than 3%, the facility continues to operate in a dynamic fashion meeting the changing needs of a growing community. Special Events are positioned with a unique perspective to provide an outlet for leisure as well as a revenue stream to municipalities. This coming year our citizens, along with the nation, will celebrate Super Bowl XLI, as collaboration with Pearland Convention and Visitors Bureau provides expansive opportunities to participate in Super Bowl XLI, hosted in Houston. Pearland has become synonymous with several hallmark events; Winterfest and the Celebration of Freedom on July 4th, to name a couple. Most recently, with a new ability to track off-site viewing, we were able to quantify over 40,000 individuals enjoying events over the course of the year presented by our City. With celebrated special events and continually increasing attendance, it is important to recognize the community impact of these events. Staff is broadening in this budget to capitalize on the value of the Super Bowl XLI in Houston at the NRG Stadium, just five miles north of the Pearland city limits. Even more important than the February 2017 Super Bowl for us are those Pearland community events and the 40,000 that our Parks and Recreation Department brings together. We are determined to make our events and gathering opportunities to be even more inviting for our diverse and vibrant community. Page ix City of Pearland Budget FY 2016/17 Parks are a tangible reflection of the quality of life in a community. They provide identity for citizens and are a major factor in the perception of quality of life in a given community. Parks and recreation services are often cited as one of the most important factors in surveys of how livable communities are. Trails and pathways have been improved in FY 2015/16 with completion of the 1.3 mile loop around the detention area and environmental center. The City transitioned and enhanced our partnership with Keep Pearland Beautiful that now operates the recycling center on Magnolia Road, giving them office space and a ready- made platform for their programs while relieving City direct day-to-day stewardship. The John Hargrove Environmental Center is set to finally see progress in 2017 on the construction of a new Delores Fenwick Nature Center on the City property for additional City and partner classes such as schools and KPB. Valuing our staff talent —PP 1 In a recent column advocating that Chief Human Resource Officers need i to lead private businesses talent . agenda, Korn-Ferry's CEO Alan Guarino wrote that, "Building a high- functioning leadership team is a 4, 7.. st people business. It will make or break successful execution of the business r strategy." Over the last two years, we have made a concerted effort to bring together, inform, support, and ,tiiiPWo land Public p ha professionalize our large talent bank i Woa i City employees. With the - -- , kS1- ofj implementation of an online learning t '~ management system, improving the use of technology in process and procedures and engaging employees through surveys and participation • opportunities, we are making strides to show the employees of the city they, and their time, are of value to the organization. At the end of the day, these employees will be the ones who move ahead our Strategic Priorities and embody our Core Values. In this budget, we have built in 3% wage increases for full- and part-time employees, a $1.1 million expense. Moreover, we have initiated a city-wide classification and compensation study that will look at complete compensation definitively and independently. That report, once received, will give us a framework for current and future decisions; we have $200,000 in this budget for phase I of implementation, to begin addressing any positions that are most out of sync with the market. The Human Resources Department continues to be the leader in strategically developing, implementing and supporting programs and process that add value to the organization related to recruitment, retention and risk management. In FY 2016/17 the emphasis will be on the development of a fully functioning safety and risk program, the beginning implementation of the compensation and classification study as well as altering the service delivery model of the department to better improve the environment for our employees. Capital improvements As mentioned, our Capital Improvements Plan has $545 million of projects within the next Five-Years. The vast majority, $311 million, is for needed water and wastewater improvements. Those needs are repaid by users of the systems, from the City's Enterprise Fund that operates as a business, charging rates to ensure the fund is self-supporting. We are being as cost-conscious as possible, including on the financing of these multi-million dollar investments. The Texas Water Development Board has been a Page x City of Pearland Budget FY 2016/17 great resource in providing financing with extremely low interest. As has been written in some national publications, now is a great time to be completing infrastructure work from a financing perspective. Pearland is doing that. For the remaining $234 million, $169 million SH288 Master Improvements Plan is for new street widening or extensions across Pearland. The capital improvement that will have the most impact is the SH288 Toll Lanes project that starts in earnest in fall 2016; the agreement between the concessionaire and TxDOT, in their public-private partnership (P3), allows 1,000 days for the completion of -- : w ' i ;� + ti •• "wr the toll lanes. That P3 work provides a new __ =""�= - tollway alongside the free lanes from " Pearland to/from the world-famous life- saving, research and teaching intensive, ?'t.= huge economic engine that is the Texas --- "'� Medical Center. The TMC-Pearland express t " project also involves maintaining and improving the adjoining free lanes, including reconstructing the SH288/IH610 interchange and providing direct connects from SH288 Toll Lanes to the Sam Houston Tollway. Regarding the streets, facilities, drainage, and parks(all outside of utility enterprise funds)the good news for City residents and coffers is that $112 million of the $234 million is identified as "other funding sources," primarily other entities' money. City officials from Pearland have been active with the Houston- Galveston Area Council, our regional metropolitan planning organization, to recognize Pearland projects in the long-range Regional Transportation Plan (RTP) and ultimately the Transportation Improvement Plan (TIP), which allocates transportation funds across the region. Projects funded through the TIP gains Pearland access to State and Federal funds for up to 80% of the project cost. Infrastructure Asset Recapitalization efforts While initial capital construction costs can be shared with other entities, the maintenance for those completed works remain substantially on us locally. Continued investment in recapitalization is critical to maintaining value in future years. We traditionally work with Brazoria County to perform City road overlay. For FY 2015/16, the work totals 4.9 miles of overlay and is scheduled to begin in mid-August, 2016. Public Works Crews have been performing sub base repairs in these areas since June in anticipation of this work. To balance the FY 2016/17 budget, the amount for paving rehabilitation stands at$515,000, below prior years and far below the targeted recapitalization range targeted. The FY 2016/17 paving program as cited in the March 2016 Five-Year Pavement Rehabilitation Plan includes two subdivisions as well as a few additional streets. The total length of paving in the two subdivisions totals approximately 8 miles. It can be expected that the County will agree to pave less than that, most likely in the 5 mile range as is scheduled to be done in FY 2015/16. However, staff will submit the entire FY 2016/17 list of streets to the County for consideration. Staff has prepared a document for FY 2016/17 locations that includes the Sleepy Hollow Subdivision, Zapalac Street, Regal Oaks plus several streets in the Old Townsite area. Page xi City of Pearland Budget FY 2016/17 As of this writing, the FY 2015/16 budget has approximately$200,000 remaining for sidewalk repair. The FY 17 budget includes approximately $628,760 for sidewalk work, below what's needed for substantive progress on open work order back order, let alone the targeted recapitalization amount. Maintaining quality infrastructure requires constant reinvestment in (or recapitalization of) that infrastructure. Quality infrastructure, whether it be newly paved roads, great drainage systems, or reliable water and sewer capacity, contributes to the economic value of our City by enhancing property values and providing a place new and existing business want to invest. A 40%of infrastructure life In 2014 Public Works initiated a right of Excellent way (ROW) assessment. That has a 15%drop in quality assessment showed that overall the Very Good 15%of infrastructure life City's ROW was in good shape with a Pavement Condition Index (PCI) of 76. O Good $1 spent now J has a ao°A°drop in quality The City owns and maintains in excess of 430 centerline miles of roadway Fair consisting of asphalt and concrete, with approximately 100 miles being asphalt Poor Costs$8 if delayed and 330 miles being concrete. This is in fri'resr.0 large part due to the relative youth of the �rote Very Poor Curkeeno,,7„ce j infrastructure within the ROW. Approximately 70% of the Pearland's infrastructure is less than thirty years of Time age, with the other 30% being in general greater than forty years of age. The assessment concluded that in order to maintain the current PCI level the City should spend about $3.7 million dollars (2014 dollars) in maintenance/recapitalization on streets alone. In challenging budgetary conditions it is difficult to raise the funding levels to this amount, but moving forward continued diligence must be shown in increasing the expenditures to this level. Sidewalks are another integral part of the City's overall infrastructure wellness. Over recent years the City has shown a higher level of effort in restoring the sidewalks to a better overall condition. The current inventory of sidewalks is at approximately 547 miles. To date the City has repaired approximately seven miles of sidewalks. As work continues throughout the City, residents realize that progress is being made so an increased level of awareness has morphed into a higher number of service requests. Thus, making it appear that only small, incremental progress is being made in this effort. The ROW assessment of the sidewalks recommended an annual expenditure of $1.5 million dollars per year (2014 dollars) to bring the sidewalks to the same level of service as the roadways. Continuing to provide a better level of service for the residents, the Public Works team has also embarked on some programs in the areas of water distribution and sanitary sewer collections. During the drought of 2011 there were over 750 distribution system breaks. Of those, greater than 90% took place on a piping material known as Transite -this piping was popular from the 1950s through the mid to late 1970s. The City currently has 62 miles of Transite waterline, which is 12% of the potable water distribution system. As this replacement continues, the City's required expenditures for maintenance of these waterlines will continue to decrease. The Public Works team has also begun a sanitary sewer inspection program which will result in early phase of an Inflow and Infiltration (I&I) mitigation program. The culmination of this program will result in a reduction of wet weather flows at the various water reclamation facilities. In turn, this will result in a better Clean Water Act compliance rate and reduced operating costs for the reclamation facilities. Right of way Enhancements As the Right of way Division of Public Works approaches its second anniversary, the work in progress is very noticeable. It started primarily as the oversight of maintenance contracts (mulch, irrigation, fertilizer, trimming, mowing, pruning, trash pickup etc.) of the public ROW. Page xii City of Pearland Budget FY 2016/17 The responsibilities have grown and evolved with the team now developing a more advanced and comprehensive ROW Landscaping and Maintenance program, including the development of ROW policies, standards, GIS resources and programmatic recommendations that could impact our governing Ordinances. Further, the ROW divisions have partnered with the PEDC to manage the construction and maintenance of the new entry features at Cullen Boulevard, Pearland Parkway and Dixie Farm Road. The ROW Division works closely with the other, nonpublic, utilities that are located within the City's ROW and easements, assisting residents with any issues or concerns they are having within the ROW. This division is a the major driver in the recent aesthetic improvements to our public space within the rights- of-ways adding to the overall value of the community, which in turn attracts residents, businesses, and visitors further enhancing our taxable value. Conclusion The budget material here is my responsibility and recommendation as your city manager. The product here reflects the work of many great dedicated people in our organization. Pearland is transitioning and beginning to reap more and more of the benefits of the seeds planted by elected leaders and staff over the years. We are dedicated and working diligently to bring value by implementing the City Council's adopted strategic priorities, plans, and aspirations. The FY 2016/17 Budget represents a set of priorities to do just that. We emphasize in communications that Pearland is not growing simply for the sake of growing. We grow because we are vibrant, diverse, and attractive. The US Census Bureau released the fastest growing FASTEST GROWING AND SHRINKING CITIES and shrinking cities across the United States. Pearland is among the fastest. That growth is stretching, challenging, and invigorating us in 4ve" �. Pearland, Texas USA. We are building the systems and teams of people to welcome all these new .;", r•-� ,� r,.„ n.�� residents who have chosen Pearland as their home praw along with us. '--" Our work is fixated on ensuring that Pearland remains a competitive and attractive city with increasing value so that we do not become one of the shrinking cities that were once "the" place, but now are on a ame,.o,,,,,,,,,„,,,,,orraiorre ® downward turn of value. Pearland stays strong with all our great valuable people and places. Respectfully submitted, Clay J. Pearson City Manager Page xiii City of Pearland Budget FY 2016/17 d ' 01 41% lillo 144(11C) . , OW, . • . If' 1 til , THIS PAGE INTENTIONALLY BLANK 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 6 other members with an election to be held in FY 2017 to elect a 7th member of Council. 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 implementation of Council priorities and day-to-day management of all City operations. The City provides a full range of municipal services, including public safety,wastewater treatment, street maintenance and repairs, road construction and improvements, and two libraries through a cooperative effort between the City of Pearland and Brazoria County. Located across the northern end of Brazoria County, and sharing a common border with Houston, Texas to the north, Pearland is the fastest growing City in Brazoria County. From 2000 to 2016, based on U.S. Census population and the City of Pearland Planning Department statistics, Pearland's population increased from 46,058 to 114,000, making it consistently one of the fastest growing cities in Texas each year. The total area of the City is 68.93 square miles, 48.31 within City limits, and 20.62 in the Extra-Territorial Jurisdiction (ETJ). Pearland's location, coupled with its expressed goals of long-term planned growth, is propelling the City's rapid economic growth and development, from $6.3 billion net taxable property valuation in 2010 to $8.5 billion in 2016, a 35.2% increase. Based on economic data from the U.S. Bureau of Labor Statistics, Pearland ranked 7th in the nation for fastest growing cities. Pearland Population Growth 120,000 100,000 80,000 60,000 40,000 20,000 0 2000 2005 2010 2015 Source: U.S. Census Bureau 1 CITY OF PEARLAND DEMOGRAPHICS INCOME POPULATION 63 ¶3t OF HOUSEHOLDS 117, 100 HAVE INCOMES ESTIMATED FY 2017 PEARLAND OVER $75,000 POPULATION AGE DISTRIBUTION UNEMPLOYMENT RATE 0-14 15-24 25-44 45-64 65+ 25% 12% 31% 23% 9% 3 . 6 0 MEDIAN AGE: 34.8 UNEMPLOYMENT EDUCATION INCOME 45% BACHELOR'S DEGREE $94653 OR HIGHER MEDIAN HOUSEHOLD INCOME HOMEOWNERS HOME VALUE 78.5% OF RESIDENTS ARE $ 179600 HOMEOWNERS MEDIAN HOME VALUE TOP EMPLOYERS WORKFORCE PEARLAND INDEPENDENT SCHOOL DISTRICT EDUCATION, HEALTHCARE WALMART 29% KELSEY-SEYBOLD & SOCIAL ASSISTANCE CITY OF PEARLAND KEMLON PROFESSIONAL, SCIENTIFIC HEB 12% DAVIS LYNCH & ADMINISTRATIVE PACKAGING SERVICE COMPANY BASS PRO SHOP HOME DEPOT Source:U.S.Census Bureau,Bureau of Labor Statistics,City of Pearland Planning Department and Pearland Economic Development 2 City of Pearland Comparison City Demographics for Benchmarking Dallas-Fort Worth MSA Houston MSA Austin MSA c , Statistical Category c c ° a) 3 `O .. 0 -0 O Y c °' >- D u '=' U a) D v 0 0 0 a. w � U m CC IX. City Size(square miles) 61.80 62.21 48.31 32.38 51.29 35.45 34.1 1 1 Population Density 2,498 2,619 2,253 2,723 1,917 2,153 3,401 POPULATION(US CENSUS) 2015 Estimate 154,407 162.898 108,821 88,156 98,312 76,335 115,997 ,%Change(10-13) 32.0% 24.2% 19.3% 17.7% 16.1% 2010 Census 1 16,989 17 91,252 78,817 83,560 71,802 99,887 %Change(00-10) 246.0% 140.5% 99.8% 83.6%- 62.5% 2000 Census 33,808 54,518 45,681 65,697 45,517 65,332 61,484 FINANCIAL CHARACTERISTICS(FY15 CAFR,UNLESS OTHERWISE NOTED) Credit Rating(Moody's) Aal Aal Aa2 Aal Aa2 Aa2 Aal Credit Rating(S&P) AA AAA AA- AAA AA AA AA+ Total Net Position(in thousands) $ 1,264,143 $ 825,698 $ 694,561 $ 619,489 $ 424,387 $ 272,424 $ 824,455 Operating Rate 0.2867 0.4154 0.2412 0.1703 0.4002 0.4456 0.2628 Debt Tax Rate 0.1732 0.1675 0.4400 0.1456 0.1967 0.3764 0.1518 Total Property Tax Rate 0.4600 0.5830 0.6812 0.3159 0.5970 0.8220 0.4146 Total General Fund Sales Tax $ 36,003,036 $ 20,417,987 $ 20,594,329 $ 38,549,980 $ 14,923,809 $ 16,435,953 $ 50,715,636 Revenue Sales Tax Revenue Per Resident $ 233 $ 125 $ 189 $ 437 $ 152 $ 215 $ 437 DEMOGRAPHICS(2010 Census) Senior Citizens(x>65) 5.4% 7.0% 7.7% 10.4% 7.3% 10.1% 5.4% Juveniles(x<18) 33.3% 32.0% 29.5% 24.6% 28.5% 29.2% 31.1% Foreign Born Persons 14.3% 12.9% 16.0% 33.8% 9.8% 17.6% 12.8% Language Other Than English 19.6% 20.3% 26.1% 43.1% 17.1% 38.9% 25.4% Spoken at Home Race--White 75.0% 74.8% 62.0% 52.0% 79.5% 62.9% 70.8% Race-African American 8.1% 10.5% 16.4% 7.4% 7.1% 15.5% 9.8% Race--Asian 10.0% 4.1% 12.4% 35.3% 5.4% 1.5% 5.2% Race--Hispanic* 12.1% 18.6% 20.5% 10.6% 17.3% 43,4% 29.0% HOUSING AND EDUCATION(2010 Census/2012 American Community Survey) " Homeownership Rate 77.5% 71.7% 78.5% 81.0%� 76.1% 62.1% 58.7% Persons Per Household 2.95 2.96 2.91 3.06 2.73 2.96 2.89 Median Household Income $ 108,428 $ 81,894 $ 94,653 $ 107,149 $ 88,289 $ 48,782 $ 69,998 Median Home Value $ 249,000 $ 186,400 $ 179,600 $ 253,700 $ 176,300 $ 97,400 $ 168,100 %Below Poverty Rate 4.5% 9.2% 4.6% 4.4% 4.7% 19.3% 8.4% of Housing Stock Built After 96.4% 87.9% 82.1% 81.3% 83.8% 41.5% 86.7% 1980 %Housing Units in Multi-unit 14.1% 20.6% 14.1% 9.9% 17.8% 30.2% 30.1% Structures(2008-2012) %Bachelor's Degree or Higher 58.3% 46.1% 45.4% 53.8% 42.1% 14.3% 37.0% EMPLOYMENT BREAKDOWN BY INDUSTRY(2012 AMERICAN COMMUNITY SURVEY) Mean Travel lime to Work(min) 27.8 28.3 30 28.5 28.9 23.7 23.9 Agriculture,forestry,fishing and hunting,and mining 1.0% 0.7% 2.5% 5.2% 1.5% 1.1% 0.7% Construction 3.4% 5.1% 4.6% 4.4% 7.1% 15.6% 5.7% Manufacturing 9.0% 9,9% 9.1% 9.4% 15.0%, 14.8% 12.3% Wholesale trade 3.1% 3.0% 3.9% 3.7% 2.8% 3.3% 4.0% Retail trade 12.0% 13.8% 9.9% 11.5% 9.5% 12.1% 13.0% Transportation and warehousing, and utilities 3.5% 3.0% 4.4% 3.9% 6.3% 6.3% 3.3% Information 4.5% 3.8% 1.9% 1.8% 1.0% 1.1% 2.6% Finance and insurance,and real 14.6% 10.6% 5.6% 8.1% 6.3% 3.2% 7.0% estate and rental and leasing Professional,scientific,and management,and administrative 17.6% 13.5% 12.0% 18.5% 11.6% 8.8% 14.4% and waste management services Educational services,and health 17.3% 21.9% 28.9% 21.6% 25.1% 18.8% 19.4% care and social assistance Arts,entertainment,and recreation, and accommodation and food 7.1% 7.2% 5.9% 5.8% 5.3% 7.4% 7.7% services Other services,except public administration 4.3% 4.6% 4.3% 4.2% 3.8% 5.4% 4.1% Public administration 2.6% 3.0% 5.0% 1.9% 4.7% 2.0% 5.8% *"Hispanic"may be of any race,so also are included in applicable race categories 3 B ^ George Intercontinental HOUSTOf� ntercontinental , Energy Corridor �� (IAH) 59 _ 330 f Anii Minute Maid Park-k George R.BrownBBVA Compass BattleshipTexas ./4"""n."...°1 Convention Center StadiumooSh�PChannel ® Toyota CenterDowntown ,tov�: Portof Houston San Jacinto Galleria/ Monument Uptown ParkAuthority 90 g Museum :Op I Rice Universi District 8 tY� University 225 of Houston 6 Medical Center 59 NRG i Q Stadium 35 11\ METRO Light Rail 238 01) William P.Hobby Port (HOU) of Houston .,. ir ... .. 90 W ,. Ellington Field 8 (EFD) University of Houston ® Clear Lake- Main Campus Lyndon B. O �- J Spa PEARLAND00 aceCen ce Center 5 V. 3 ``V., Fr-.6." reeP of eeport 11111 Pearland Rgnl Galveston (tv3) 0 Moody Gardens IllOr / Q Kemah Boardwalk General Areas Transportation Attractions Universities Downtown:17 minutes George Bush Intercontinental(IAH):33 minutes 1. Battleship Texas:23 minutes 7. NASA Johnson Space Center:16 minutes 11. Rice University:20 minutes Energy Corridor:27 minutes Ellington Field(EFD):6 minutes 2. BBVA Compass Stadium: 14 minutes 8. NRG Stadium:9 minutes 12. University of Houston:13 minutes Galleria/Uptown Park:18 minutes Metro Light Rail:9 minutes 3. George R.Brown Convention Center:14 minutes 9. San Jacinto Monument:22 minutes 13. University of Houston Clear Lake- Galveston:32 minutes Pearland Regional(LVJ):in Pearland 4. Kemah Boardwalk:26 minutes 10. Toyota Center:13 minutes Main Campus:17 minutes e Pr Medical Center:13 minutes Port of Freeport:58 minutes 5. Minute Maid Park:14 minutes ,°` '°�, 0 Museum District:12 minutes Port of Houston Authority:20 minutes 6. Moody Gardens:37 minutes ,,„� Port of Houston:29 minutes �� William P.Hobby(HOU):11 minutes Far. 10' Citizens of Pearland 1 Municipal JudgeMayor and City p Council City Attorney 1 Office of City i Manager Deputy City Manager i D OE PF9R`9 City Secretary — V Finance & rPEARLANE1 Convention and — Visitors Bureau Purchasing TEX AS Parks& E'SA Recreation Human Resources/ Communications Organizational Development Municipal Court 1 1 I (Executive Manager of` Assistant City Development Services Information & Pearland Economic Fire Police Manager Technology Development Corp i President Capital Projects& Pearland Economic Engineering — Public Works Development Corporation Community Development CITY OF PEARLAND, TEXAS CITY MANAGEMENT Elected Officials Position Tom Reid Mayor Tony Carbone Councilmember, Position One Derrick Reed Councilmember, Position Two Gary Moore Councilmember, Position Three (Mayor Pro Tern) Keith Ordeneaux Councilmember, Position Four Greg Hill Councilmember, Position Five Trent Perez Councilmember, Position Six 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 Development Services and President, PEDC Young Lorfing City Secretary Chris Doyle Police Chief Vance Riley Fire Chief Eric Wilson Director of Public Works Cynthia Pearson Director of Finance Michelle Graham Director of Human Resources Robert Upton Director of Capital Projects & Engineering 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 Director of Communications Jennifer Huhn Municipal Court Administrator Daniel McGhinnis Chief Information Officer *Employee of Brazoria County serving in cooperation with the City of Pearland 6 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 Safe to guide organizational development, budgeting Community and performance measurement. In May 2015, the City Council voted on the City of Pearland Strategic Priorities shown to the right. The 2015 Healthy Engaged Comprehensive Plan adopted by the City Council Economy Community in September 2015 and the Pearland 20/20 Economic Development Plan developed by and adopted by the Pearland Economic Development Citizenry & Board in 2013 reflect elements of these Strategic Community Priorities as well. The 2015 Comprehensive Plan encompasses Sustainable Parks, Recreation the growth capacity of the City, infrastructure to Infrastructure & Events support the growth, mobility issues, housing and neighborhood planning, economic development, parks and tourism, and land use and character. Fiscally The Pearland 20/20 Strategic Plan includes Responsible economic development, City beautification and aesthetics, mobility, recreation and culture, and educational and work opportunities in Pearland. These six Strategic Priorities are designed to guide Pearland to the next level of success, as an economically, financially and structurally sustainable city. 1. Fiscally Responsible Government Operating a fiscally responsible government entity involves the 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. The Comprehensive Plan and 20/20 Plan encompass this Council Strategic Priority via patterns of development that support the City's long-term financial health; a commitment to sustained budget support for reinvesting in infrastructure maintenance; for public safety to maintain levels of service and responsiveness commensurate with projected growth and resident expectations; and to identify sustainable funding sources to support the landscape maintenance protocol. 2. Sustainable Infrastructure Public infrastructure provides the foundation upon which our community is built. Street overlays, sidewalk installations, ditch-cleaning, water-production and purchases and new project completions are some of the main functions provided by the City to ensure effective growth,support and maintenance of public infrastructure. These items are somewhat the unsung heroes of a community. When they are working great, they are seldom noticed. A growing city like Pearland is still strengthening its"bones"of roads and utilities and must balance the immediate maintenance needs with the importance of looking ahead. The Comprehensive Plan includes a system that safely accommodates all modes of travel including vehicular, pedestrian and bicycle. And the 20/20 Plan includes the continued planning, design and construction of priority road and highway projects. 3. Quality Parks, Recreation and Events The City of Pearland strives to be a regional destination by providing exceptional recreation and cultural programming and quality facilities for residents and visitors alike. The City is also committed to enriching the quality of life of our community by maintaining community parks, trails and green space, promoting recreational activities through creative programming for people of all ages and abilities, while protecting open space and natural resources for future generations. Priorities within the Comprehensive Plan include providing greater focus on early land acquisition to address future parkland needs in prime growth areas of the community, plus immediate developer provision of park facilities in new subdivisions versus land dedication; ongoing Trail Master Plan implementation with a particular focus on connectivity improvements around residential neighborhoods; and expanded recreation/cultural/ entertainment amenities to enhance residents' quality of life, reduce the "leakage" of such economic activity to destinations outside the City, and draw more visitors and tourism dollars to Pearland. The 20/20 Plan includes the pursuit of a multi-purpose events venue in Pearland, with related lodging and hospitality uses, as well as locating and securing parcels for development of additional athletic fields for use by residents and competitive tournaments. 4. Safe Community The City works every day to maintain a high quality of life by providing a safe and peaceful environment within the City of Pearland for all residents and visitors. Police professionals work to analyze patterns and work with residents and businesses for preventing crimes and deter behaviors that lead to vehicle crashes that injure people and cause property damage. Our growing ranks of Fire staff work to educate residents about home safety and ensure compliant workspaces that are safe. The team looks at patterns to be in the best places for response to fires and medical emergencies. Safe Community is more than Police and Fire, it also encompasses Animal Services, Health/Code Enforcement, Building Inspections—infrastructure and fire, and Public Works,with the maintenance of streets, sidewalks,water quality, etc. The Comprehensive Plan addresses development of a mobility system with adequate connectivity to provide multiple travel options, accommodate cross-town trips, and ensure effective emergency response; sidewalk network upgrades; and pedestrian/bicycle accommodation on commercial sites. The 20/20 plan prioritizes the development of congestion management strategies. 5. Engaged Community The City is committed to keeping its citizens informed by various means. The City website posts the latest news, City Council and Boards and Commissions meetings, financial and other reports of interest, methods of payment for City services, the ability to sign up for Parks Recreation classes, the ability to volunteer at the Animal Shelter or apply for adoption, and report issues, such as street light outages, etc. In addition, the City distributes publications annually and posts information and live and taped Council meetings via a City public educational government (PEG)television station, as well as on the website. Supporting events and outreach to bring Pearland citizens together as one community is one of the priorities of the Comprehensive Plan. The 20/20 Plan includes identifying the optimal location for a multi-use events center for performing arts, civic gatherings, special events, and touring acts; and organizing task forces of citizens and businesses to create a unified arts organization as well as providing advice on City services and City gateway identifying markers. 8 6. Healthy Local Economy The local and regional economies have been the driving forces behind much of the growth in Pearland over the last decade. The City continuously strives to build and support the local economy. Revenues from property taxes and that result from development incentives and sales and hotel occupancy tax revenue are some of the items that are considered in determining the health and vibrancy of our local economy. Economic growth and quality development are critical aspects of our City's ability to serve citizens with the quality of life, mobility and access to services they require. The Comprehensive Plan priorities include a system that supports local economic development and tax base growth through the City's own investments in transportation infrastructure, plus those it gains through advocacy with other agencies and levels of government that administer transportation funding. The 20/20 Plan includes developing a method to ensure that relocation prospects are efficiently and effectively supported and managed; enhancing efforts to attract key segments of the health care sector to Pearland; optimizing a program to retain and expand existing Pearland employers; and ensuring Pearland's retail sector remains vibrant. The Pearland Economic Development Corporation (PEDC) has adopted a multi-year plan to enhance the main entrances to the City. 9 FY 2017 ADOPTED BUDGET READER'S GUIDE TO THE BUDGET The Fiscal Year 2016-2017 budget document has been prepared and presented in an effort to comply with the guidelines and recommendations of the Government Finance Officers Association of the United States and Canada (GFOA) Distinguished Budget Presentation Awards Program. In order to be considered for the budget award, the following four areas must be included in the budget presentation: (1) the budget as a policy document, (2) the budget as a financial plan, (3) the budget as an operations guide, and (4) the budget as a communications device. A brief explanation of these criteria is presented below. The budget as a policy document. This involves including a statement (or statements) of budgetary policies, goals, objectives, and strategies for the year and also an explanation of the budgeting process to the reader. Goals, objectives, and strategies are an integral part of this document, which we believe satisfy this requirement. The budget as a financial plan. This criterion involves including an explanation of the financial structure and operations of the City. The City's major revenue sources and fund structures are defined and amplified. The budget contains an all-inclusive financial plan for all funds and resources of the City, and also includes a multi-year financial forecast. Included are projections of financial condition at the end of the fiscal year, projections of financial activity, and historical comparisons. The budget also presents a consolidated picture of all operations and financing activities in a condensed format. An explanation of the budgetary accounting basis (cash basis, modified accrual basis, or other acceptable method) was employed in the development of the budget. The budget summary section, as well as the various fund and department summaries, satisfies this requirement. The budget as an operations guide. This criterion involves explaining the relationship between organizational units (departments) and programs. An organizational chart, description of the departmental organizational structure, services, and staffing levels, with historical comparisons, are also included. Explanations of how capital-spending decisions will affect operations are offered. These issues are addressed throughout the document. The budget as a communications device. The budget document is available to the public at the City Secretary's Office in City Hall and at the Pearland Branch Libraries, as well as on the City's website. As much as possible, we have avoided the use of complex technical language and terminology, and included charts, graphs, and glossary for understandability and usability. Efforts are made to explain the basic units of the budget, including funds, departments or activities, and disclosing sources of revenues and explanations of revenue estimates and assumptions. This information is contained in the transmittal letter and budget summary sections. In summary, each of the above four criteria is recognized by the GFOA as an integral part of any budget document in order to convey to the reader the goals and objectives the City will address during the year and how those goals and objectives will be met and measured. We have attempted to present these goals and objectives to the reader in such a manner that any reader, regardless of the reader's financial background or knowledge, will be able to gain a basic understanding of them. Organization of the Budget Document Transmittal Letter includes the City Manager's budget message to City Council. Introduction includes an introduction to Pearland, City demographics and statistics, an area map, the City's Organization Chart, list of City Management, City Council Strategic Priorities, a Reader's Guide to the Budget, Fund Structure, a matrix of department relationships to funds, budget objectives and philosophy, new positions and staffing levels, funded supplemental requests, and the fiscal year 2017 Budget Calendar. 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. 10 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 2017. 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. Component Units Section includes a description of Component Units, an organization chart, an overview of the Pearland Economic Development Corporation (PEDC), a revenue and expenditure summary with fund balance with staffing summary, 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. Glossary Section includes the glossary and acronyms. City of Pearland Fund Structure The City accounts for revenues and expenditures based on the Fund, an accounting system used by nonprofit organizations and agencies, particularly governments. Because there is no profit motive, accountability is measured. The main purpose of the Fund system is stewardship of financial resources to ensure funds are received and expended in compliance with legal requirements and restrictions. The budget is adopted and recorded in the accounts of the related fund. Total Budget All Funds ♦ ♦ T T • • General Fund Debt Service Fund Special Revenue Funds Capital Project Funds Enterprise Funds Internal Services Funds 100 200 500 Series 600 Series 700 Series Hotel Motel Ta CVB Parks Development, Property/Liability / Donations,Tree Trust Water&Sewer 305 330,331,340 600 Insurance 700 Municipal Court,Court `" Technology&Juvenile Grants-CDBG&Others H Solid Waste Employee Medical Mgt. 350-351 610 Insurance 310,320,365 702 • Police Seizure&Federal ,__,_♦ Traffic Impact Component Units Police Improvement 335-336 360 900 Series Regional Detention / ► Sidewalk 380 345 PEDC [I- 900 UofH&UofH Capital 4 O. Municipal Channel PEG Renewal 370 375-376 TIRZ* 930 City Wide Donations 4 ► Lower Kirby 315 510 Development Authority* H 920 Street Assessment 325 * Not budgeted DEPARTMENT AND FUND RELATIONSHIP Public Parks& Community Community General Police Fire Works Recreation Development Services Finance Government General Fund X X X X X X X Enterprise Funds Public Works Administration X Water/Sewer Grounds X Lift Stations X Water Reclamation X Water Production X Distribution&Collection X Construction X Water Meter Services X Utility Customer Service (Billing) X Information Technology X Other Requirements/City- Wide X Solid Waste X Special Revenue Funds Hotel/Motel Occupancy Tax X Court Security X City-Wide Donations X X X Court Technology X Park Donations X Tree Trust X Police State Seizure X Police Federal X Parks Development X Sidewalk X Grants X Community Development Block Grant X Court Juvenile Management X Municipal Channel X 13 BUDGET OBJECTIVES AND PHILOSOPHY BUDGET OBJECTIVES The FY 2017 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 2017 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. 14 BASIS OF BUDGETING AND ACCOUNTING • Revenues are budgeted in the period they are earned and measurable, • Expenses are budgeted in the period in which the liability was incurred, • Depreciation of assets is not budgeted, • Capital outlay is budgeted as an expense in the year purchased, • Principal payments are budgeted as an expense rather than a reduction to the liability, • Proceeds from bond sales are budgeted as revenue, and • Transfer of bond proceeds to the Capital Projects Fund is budgeted as an expense. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and fiduciary funds are accounted for using the modified accrual basis. Revenues are recognized in the accounting period when they are measurable and available. Revenues subject to accrual include interest income and charges for services. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable. Capital outlays are recorded as additions to fixed assets at fiscal year-end and the cost of those assets are depreciated over their estimated useful lives for the government-wide financial statements. All proprietary funds are accounted for on an accrual basis. Revenues are recognized in the period in which they are earned and become measurable and expenses in the period in which they are incurred and measurable. Proprietary funds also record depreciation and amortization. Payment of principal is recorded as a reduction to the long-term liability. GOVERNMENT-WIDE FINANCIAL STATEMENTS (GASB 34) The City of Pearland fully implemented government-wide financial statements with the year ended September 30, 2007. The government-wide statements present information about the City in a manner similar to those used by private sector companies. These statements, which can be found in the City's Annual Comprehensive Finance Report, include all assets and liabilities on an accrual basis of accounting, which is similar to the basis of accounting used by most private sector entities. The City has realized no impact to the annual budget based on the new reporting model. BUDGET PROCEDURES The budget process begins with the distribution of budget instructions to the department heads. Each department receives instructions for its respective operations, personnel requirements, and capital outlay. The budget worksheets used in the budgeting process contain: 2-prior year actuals, current year original budget, current year amended budget, current year actuals to date, current year projected expenditures, next fiscal year base budget, and next fiscal year supplemental request, for a next year total request. This financial information is to be used by the department heads as a guide to complete the proposed budget. It is assumed that the prior year's financial needs are responsible indicators of future base financial needs and the budget is projected on this basis. For FY 2017, departments' base operating budgets were calculated by the Budget Office and were based off of FY 2015 actual expenditures, less non-recurring expenditures, plus known impacts, such as operating costs from completed capital projects. Departments then allocated their base budget amount to their individual line items. Supplemental requests for capital, annexation, growth and development or other items that do not fit within normal operating budgets are requested and justified separately. Upon completion of the proposed budget, department heads submit their budget request to the Budget Office for review, after which the budget is submitted to the City Manager for review and approval. The City Manager meets with his direct reports to discuss and make adjustments where needed. The Budget Office prepares the revenue budget, with review by appropriate departments, Director of Finance and City Manager. Property tax revenue is budgeted using data provided in the preliminary or certified tax rolls received from the Brazoria, Fort Bend and Harris County Appraisal Districts. All other revenues are budgeted with the use of comparative financial information provided by the prior year's actual revenue, current year estimated revenue, and known factors that may affect receipt of revenue. The City Manager and Director of Finance then submit a balanced budget of expenditures and revenues to the City Council for review through a series of budget workshop sessions. 15 BUDGET PROCEDURES The following procedures are followed for formal adoption of the budget: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1, which must be adopted by the last regularly scheduled Council meeting in September. The operating budget includes proposed expenditures and the means of financing them. 2. Public notices and hearings are conducted pursuant to state law. 3. The budget is legally enacted through passage of an ordinance. 4. The legal level of control is the total approved budget for each fund. 5. All funds are included in the budget development process and submitted to the Council for adoption each year and are monitored by department administrators and budget analysts during the year. These funds include the General Fund, Capital Improvement Fund(s), Special Revenue Funds, Debt Service Funds, Water and Sewer Fund, Solid Waste Fund, Internal 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 or decrease the appropriation for any fund. 16 NEW POSITIONS FY 2017 Net FTE Fund/Department Position Change General Fund Human Resources Risk Manager 0.5 Community Development PT to FT Office Assistant 0.5 Community Development PT Inspector to FT Inspector 0.5 Community Development FT Inspector 1.0 Community Development FT Planner 1.0 Community Development FT Receptionist 1.0 Fire Emergency Management Coordinator(9 Months) 1.0 Police 4 Police Officers (6 months) 4.0 Information Systems Senior Office Assistant- FT 1.0 Engineering Assistant City Engineer(6 months- Exchange FT Office Assistant Position for Assistant City Engineer) 0.0 Engineering Addressing Coordinator(6 months) 1.0 Finance Staff Accountant 1.0 Parks and Recreation Increase PT Therapeutic Recreational Specialist to FT 0.5 Total General Fund 13.0 Enterprise Fund Utility Customer Service Customer Service Representatives - 1 FT and 2 PT to 1 FT 1.0 Public Works Backflow Compliance Program Manager 1.0 Total Enterprise Fund 2.0 Internal Service Fund - Property/Liability Insurance Human Resources Risk Manager 0.5 Total 15.5 17 STAFFING LEVELS FY 2017 ADOPTED BUDGET The number of budgeted Full-time Equivalent(FTE)positions totals 743, a net increase of 15.5 for FY 2017, a 2.3% increase in FTE: 13 are in the General Fund, 2 are in the Water/Sewer Fund and 0.5 are in the Property/Liability Insurance Fund. Of the 15.5 new FTE, 5.0 are in Public Safety and 5.0 are in Community Development. EMPLOYEES BY SERVICE AREA The charts below illustrates the number and FTE of employees by Service Area. Percent of Employees by Service Area for FY 2017 Convention/Visitors hcYo Bureau u Economic Development 1% Community Services r 6% General Government I 9% Parks & Recreation 11% Public Works 21% Public Safety 51% 0% 10% 20% 30% 40% 50% 60% Employees (FTES) by Service Area Three-Year Comparison FY 2015— FY 2017 5 4 FY 2017 378.0 70.5 153.0 85.0 47 I 5 4 FY 2016 373.0 67.0 151.0 84.5 43 5 4 FY 2015 rL 347.5 65.0 154.0 89.5 40 I i 0 Public Safety 0 General Government ❑Public Works 0 Parks & Recreation 0 Community Services 0 Economic Development ■Convention/Visitors Bureau Note: In FY 2015,the UofH Fund included 1 FTE and none in FY 2016 or FY 2017. The Property/Liability Insurance Fund has 0.5 FTE in FY 2017. 18 STAFFING LEVELS FY 2017 ADOPTED BUDGET The table and graph below show the number of FTE positions per resident. These figures exclude seasonal and temporary employees. FY 2017 population comes with an estimated moderate growth of 2.7% and the Full-time Equivalent staff of the City of Pearland increases by 2.3%, which results in a decrease of FTE per 1,000 population from 6.38 in FY 2016 to 6.35 in FY 2017. Number of FTE'S per 1,000 Population Number of Employees Fiscal Year FTE Population Per 1,000 Population 2012-13 651.5 103,800 6.28 _ 2013-14 673.0 106,500 6.32 2014-15 704.5 112,300 6.27 2015-16 727.5 114,000 6.38 2016-17 743.0 117,100 6.35 Number of Employees to Total Population 750 120,000 115,000 700 110,000 a � o 105,000 is LL 650 Q 100,000 600 - 95,000 2012-13 2013-14 2014-15 2015-16 2016-17 Employees —♦—Population 19 CITY OF PEARLAND FY 2017 FUNDED SUPPLEMENTAL REQUESTS BY STRATEGIC PRIORITY Water/ Strategic Priority/ General Sewer Other Division Supplemental Request Funded Fund Fund Funds Total Healthy Economy Community Annexation - Property Surveys and Analysis $40,000 $40,000 Development Community PT to FT Office Assistant 28,691 $28,691 Development Community PT Inspector to FT Inspector 38,692 $38,692 Development Sub-Total 107,383 107,383 Engaged Community Utility Customer Customer Service Reps- 1 new FT and 2 80,562 $80,562 Service existing PT positions converted to 1 FT Communications Bi-annual Citizen Survey 18,000 $18,000 Communications Intranet Redesign (Pearnet) 17,000 $17,000 Sub-Total 35,000 80,562 115,562 Safe Community Fire Emergency Management Coordinator(9 117,534 $117,534 Months) Fire I-pads for ambulances and chief officers (12) 17,100 $17,100 Fire Fire Station Alerting System-Stations 4 &5 144,980 $144,980 Police Staffing Utilization Study Phase I 100,000 $100,000 Implementation Police Patrol Fleet Expansion-6 vehicles 338,430 $338,430 Police Criminal Investigation Division (CID) Fleet 71,134 $71,134 Expansion-2 vehicles Police 4 Police Officers and 2 Vehicles (6 months) 349,820 $349,820 Sub-Total 1,138,998 1,138,998 Sustainable Infrastructure Information Systems Senior Office Assistant-FT 62,796 $62,796 Engineering Assistant City Engineer(6 months-Exchange 2,143 $2,143 a FT Office Assistant Position with an Assistant City Engineer) Engineering Traffic Engineering Consultant-Additional 30,000 $30,000 Hours Engineering Addressing Coordinator(6 months) 41,350 $41,350 Facilities Management Roof Management Plan 70,492 $70,492 Facilities Management Overhead Door Maintenance Contract 38,110 $38,110 Facilities Management Automatic Gate Maintenance Contract 18,460 $18,460 Facilities Management Building Automation System Service 13,800 $13,800 Agreement Facilities Management Safety Training and Equipment 3,000 $3,000 Facilities Management Facility Pressure Washing -Sidewalks & 68,450 $68,450 Windows Facilities Management Public Safety Building (PSB)Sally Port Floor 21,236 $21,236 Replacement 20 CITY OF PEARLAND FY 2017 FUNDED SUPPLEMENTAL REQUESTS BY STRATEGIC PRIORITY Water/ Strategic Priority/ General Sewer Other Division Supplemental Request Funded Fund Fund Funds Total Public Works Grounds Maintenance for Bridges and Bridge 38,800 $38,800 Decks Public Works Forklift(M104)- Replacement 50,000 $50,000 Public Works Pavement Markings and Striping 110,000 $110,000 Public Works Additional Landscape Sites 29,173 $29,173 Public Works Dump Truck (TH111)Replacement 98,050 $98,050 Custodial Services New Carpet/Floor Cleaning Equipment 13,800 $13,800 Public Works Flaggers in Work Zone Training 8,514 $8,514 Public Works Asphalt Distributor Trailer(M136) Replacement 74,869 $74,869 Public Works Backflow Compliance Program Manager 142,553 $142,553 Public Works Kubota Excavator(M138) Replacement 54,211 $54,211 Public Works Kubota Excavator(M137)Replacement 54,211 $54,211 Public Works Chemical Vacuum Feed System for Liberty& 60,000 $60,000 Magnolia Water Facilities Public Works Variable Frequency Drives for Return Activated 35,000 $35,000 Sludge Pumps at Barry Rose Water Reclamation Facility(WRF) Public Works Ultraviolet Disinfection System Replacement at 70,000 $70,000 JHEC WRF Public Works Well Point Equipment Trailer 68,080 $68,080 Public Works Wastewater Treatment Plant Building Repair 100,000 $100,000 Public Works Level indicator for Bleach and Bi-Sulfite Tanks 20,000 $20,000 at Longwood WRF Public Works Contracted Ground Maintenance for Treatment 226,740 $226,740 Plants Public Works Ditch Witch Watervalve& Hydrant Program 43,590 $43,590 Machine Replacement Public Works Sewer Line Camera Replacement 8,500 $8,500 Sub-Total 793,043 882,885 1,675,928 Fiscally Responsible Human Resources Risk Manager(split between GF and Insurance 50,574 56,374 $106,948 Fund) Finance Staff Accountant 73,483 $73,483 Capital Projects Document Scanning 21,600 $21,600 Sub-Total 145,657 56,374 202,031 Parks, Recreation & Events Parks and Increase PT Therapeutic Recreation Specialist 10,788 $10,788 Recreation to FT Convention & Super Bowl Week in Pearland 101,400 $101,400 Visitors Bureau Sub-Total 10,788 101,400 112,188 Total $2,230,869 $963,447 $157,774 $3,352,090 21 CITY OF PEARLAND DETAILED BUDGET CALENDAR FOR FY 2017 CIP SCHEDULE IS IN BOLD-ITALICS JANUARY 4-8 Budget Office sets up NWS for entering budget FY 2016-2017 4-29 Budget Office staff meets with department directors to explain process and work with departments on known FY17 financial impacts, reorganizations/changes, etc. 7 CIP Workshop -Five-Year CIP worksheets and instructions distributed to all departments 15 New project forms and updates to existing projects in the CIP are due to Engineering & Capital Projects 15- Engineering &Capital Projects to meet with sponsoring departments to review new projects. Feb 25 Project Data Sheets will be reviewed with ACM, Trent Epperson, to review needs versus funding and priorities. FEBRUARY 1 Engineering and Capital Projects begins reviewing existing projects, including timing, scope and costs 1 Budget Office sends notice of March 7 workshop for department staff 1-12 Budget Office prepares salary&benefit projections and FY17 personnel lists(updated biweekly) 1-19 Update of price estimates for computers, vehicles, phones, copiers for budget instructions 1-29 Prepare Budget Instructions Manual and presentation for Workshop 15-29 Budget Office prepares base budgets; projected and estimated revenues for current and next fiscal year 20 Council Retreat — Goals/Objectives, priorities, discussion and direction — build results into budget instructions and base budget if applicable 22-29 Receipt of replacement vehicle and computer lists 26 Updates to existing projects due to Finance — Engineering and Capital Projects to have had initial review of all projects(scope, timing, costs)prior to submittal to Finance 29 Budget Office distributes to Directors/Department Heads Budget Instructions Manual. The FY 2017 base budget entered in NWS MARCH 1-31 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, replacements if not on recommended list • Facility repairs or refurbishing • New computer and computer-related software and equipment 7 Budget Workshop(Kick-off)—Afternoon 8 Review projects with Assistant City Manager 8-10 NWS budget training for end users 22 DETAILED BUDGET CALENDAR FOR FY 2017 CIP SCHEDULE IS IN BOLD-ITALICS 8-31 Departments enter their department base and appeals into NWS 18 JAT forms due to HR; facility repair requests due to Facilities Department 21 Budget Office prepares pre-preliminary Income Statements on major funds (General Fund, Debt Service, Water&Sewer) 21-23 Meet with ACM, DCM and City Manager for review of projects APRIL 1 FY17 Department base budgets and FY16 projections along with supporting documents entered into NWS 1 Vehicle requests due to Public Works 1-15 Departments prepare packet of supplemental requests and submit prioritized list with justifications to the Budget Office by April 15 4-29 Budget Office reviews all department budgets and appeals. Changes made by Budget Office will be based on review and department feedback 6 Make changes to CIP, compile list for P&Z review 18 Present Five-Year CIP to Planning&Zoning Board—first review 29 Budget Office updates revenue projections/estimates for current and next fiscal year MAY 2-13 Management and Finance review department budgets and base appeals; review for potential consideration/changes; begin preparing roll-ups 16-27 Budget Office finalizes in NWS base budget and approved budget appeals 2-31 Budget Office revises preliminary GF and W&S roll-up 2 P&Z second review and recommendation to the City Manager 5 CIP Summit 11 Final changes made to CIP 14 City Elections 19 Finance to finalize project funding sources and impacts to the annual budget 23 Swearing in of new Council Member(s) 23 Management and Finance review department supplemental requests; review for potential consideration/changes 23-31 Budget Office updates major funds (revenues and expenditures); gets current salary schedules from HR; gets any available benefit rates 26 PEDC Board review and approval of budget 23 31 Preliminary property tax rolls received; update property tax revenue 31 Budget Office finalizes in NWS small funds and inter-fund transfers JUNE 1-10 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 1-24 Budget Office reviews and updates revenues, payroll/salaries, benefits and meets weekly with CM, CDM/ACM 1-24 Budget Office prepares and finalizes multi-year forecast and w&s rate model 9-12 TCMA—Padre Island 13 FY 2016 projections to City Manager 27 FY2016 projections to Council 27- Finance Office finalizes budget for all funds and forecasts and submits to City Manager July 1 JULY 1-22 Budget Office finalizes FY 2017 budget & CIP for Council: budget document (books 1 and 2) and PowerPoint for City Manager's signature/approval and Council presentation 11 First Reading of Ordinance to amend current year budget to reflect projections 25 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 26 Budget Office sends proposed budget document to Communications Office to post to City website AUGUST 6 Budget Discussion #1: Overview and Highlights, Property Tax, Debt Service Fund, General Fund, General Fund Fee Increases, General Fund Five-Year Forecast, and Other Funds 9-31 Budget Office begins to finalize adopted budget document for printing, website and GFOA award application 12 Goals/Accomplishments/Objectives/Performance Measures due to Budget Office for inclusion in FY17 Budget document 15 Budget Discussion #2: Effective Tax Rate Information, Five-Year CIP for General Government, Debt Service Fund Five-Year Forecast 15 Council Special Meeting: Record vote on proposed tax rate, schedule public hearings on tax rate and schedule public hearing on budget Finance Office sends Notice of Tax Rate Increase to newspaper, City website and municipal channel Finance Office sends Budget Public Notice to newspaper, City website and municipal channel 24 22 Budget Discussion #3: Five-Year CIP for water/sewer, Water/Sewer Fund, Water/Sewer Five-Year Forecast and water/sewer rates and other water/sewer fees 29 Public Hearings and Budget Discussion #4: first public hearing on tax rate, public hearing on budget and follow-up budget discussion SEPTEMBER 6 Public Hearing and Budget Discussion #5: second public hearing on tax rate and follow-up budget discussion 12 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 19 Second and final reading of Ordinance to adopt tax rate, second and final reading of Ordinance to adopt FY 2017 budget, pay plans, second and final reading to adopt fee changes and resolution to adopt Five-Year CIP 25-28 ICMA OCTOBER 3-14 Budget Office continues to finalize adopted budget document for printing, website and GFOA award application Oct 7 CIP book distributed to departments and posted on City's website Oct 31 Budget book distributed to departments and posted on City website NOVEMBER Nov 14 Budget Office prepares and submits application to GFOA for Distinguished Budget Presentation award 25 . .7« © ~ . 6 \ « » • < . . . £ . . - t§ • .a: y THIS PAGE INTENTIONALLY BLANK 26 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. 27 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. 28 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. 29 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 30 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.) 31 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. 32 D. Debt Service Fund Unrestricted Fund Balance The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater. E. Property/Liability Insurance Fund Unrestricted Fund Balance The Property/Liability Insurance Fund accounts for uninsured and deductible claims for the City's property and liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore the fund will maintain a balance that approximates the prior average annual expense for the last three years, excluding extra-ordinary expenses in the fund. F. Employee Benefits Fund Unrestricted Fund Balance The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund. G. Economic Development Corporation As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a fund balance of no less than 10% of budgeted sales tax revenues. H. Water/Sewer Revenue Debt Coverage Reserves Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is not issuing additional debt and 1.4 times coverage in a year where debt is anticipated to be issued. I. Bond Issuance Reserves Debt service reserves should be maintained for each bond issue as required by bond covenants. J. Contingency Fund Pursuant to the City Charter, a provisions shall be made within the annual budget for a contingency fund in an amount not more than seven percent of the total budget (General Fund)to be used in case of unforeseen items of expenditure. K. Fund Balance Classification The governmental fund financial statements will present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor certain constraints on the use of the financial resources within the governmental funds. The classifications used will be as follows: • Nonspendable: Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples include Inventories, prepaid items, and long-term receivables. • Restricted: Amounts for which constraints have been placed on the use of resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Restricted fund balances include but may not be limited to: Debt Service Reserves, Special Court Funds created by State Statute, Debt Service Funds, Hotel Occupancy Tax, State and Federal Forfeitures/Seizures, Parkland, Detention, Sidewalk, Tree Trust, and Park and City-Wide Donation revenues, University of Houston Fund, Unspent bond proceeds, Unspent grant funds, Unspent Capital Lease proceeds, and Unspent funds received pursuant to funding, developer, and/or TxDOT agreements. • Committed: Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. • Assigned: Amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed. In governmental funds other than the general fund, assigned fund balances represents the amount that is not restricted or committed. This indicates that those resources are, at a minimum, intended to be used for the purpose of that fund. Examples include: residual funds in all governmental funds except the General Fund and outstanding encumbrances at year-end. • Unassigned: Is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. 33 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 34 be re-appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. 7. Appropriations for capital projects are for the life of the project; therefore re-appropriation of capital funding for each fiscal year for budgeted projects is not necessary. C. Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well being of the City. As a result, the City's CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the City's investment, to minimize future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth. 1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purpose. 2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which alternative is most cost-effective, which would include life-cycle costing, and provides the best value to the City. D. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High-Tech) The City shall annually prepare a schedule for the replacement of its fleet, fire trucks, and high technology capital assets. Funding for the replacement of these assets will be accomplished through the annual budget process, within the resources available each fiscal year. A variety of funding options will be explored, including but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best interest of the City. E. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements. F. Pay-As-You-Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Pearland citizens. 2. The City will seek out and use intergovernmental funding sources for capital improvements in order to leverage City funding and to minimize property and utility rate impacts. G. Capital Improvements/Project Reporting A summary/status report on the City's various capital projects will be prepared monthly and available to the City Manager and to City Council. Income statements on the City's CIP funds will be prepared monthly and include budget-to-actual for each project as well as list of major contracts, expense to date, and % contract completion. VII. DEBT Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues. A. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance and to fund infrastructure improvements and additions. Debt will not be used to fund current operating expenditures. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital expenditures and capital improvements, which shall include, but not be limited to, sales tax, utility system revenues, developer fees, inter-local agreements, and state and federal grants. 35 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 36 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. 37 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. 38 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. 39 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 40 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. 41 • • ,t, • • • • • • • • THIS PAGE INTENTIONALLY BLANK 42 CITY OF PEARLAND FY 2017 ADOPTED BUDGET SUMMARY ALL FUNDS REVENUES AND EXPENDITURES FY2016 FY2016 FY2017 FY2015 ORIGINAL YEAR END ADOPTED REVENUES ACTUAL BUDGET AMENDED BUDGET Property Taxes $42,019,392 $44,483,896 $45,338,460 $52,034,876 Sales Taxes $28,477,542 $30,753,978 $29,499,819 $30,767,744 Franchise Fees $6,971,005 $7,317,454 $7,077,450 $7,237,000 Licenses and Permits $4,550,094 $3,961,789 $4,913,195 $5,183,830 Fines and Forfeitures $3,108,232 $3,069,250 $3,031,050 $3,100,500 Charges For Services $51,023,310 $58,498,959 $57,103,258 $64,235,928 Interest Income $587,228 $330,994 $519,323 $492,579 Hotel/Motel Occupancy Tax $1,492,168 $1,525,233 $1,525,233 $1,550,000 Bond/Lease Proceeds $54,773,103 $85,077,939 $104,340,846 $59,716,415 Grant Revenue $405,084 $496,919 $1,884,039 $522,357 Miscellaneous $9,617,481 $11,659,772 $17,008,857 $13,285,509 Other Revenue Sources $7,574,590 $50,248,336 $79,045,067 $12,948,934 TOTAL REVENUES $210,599,229 $297,424,519 $351,286,597 $251,075,672 Transfers from Other Funds $37,930,636 $12,374,868 $21,034,236 $10,494,399 TOTAL AVAILABLE RESOURCES $248,529,865 $309,799,387 $372,320,833 $261,570,071 EXPENDITURES General Government $9.671,967 $11,606,002 $12,586,020 $12,722,176 Public Safety $33.708,685 $38,786,756 $40,613,152 $40,505,805 Community Services $3,419,681 $3,726,753 $3,940,052 $3,812,616 Public Works $34,994,280 $38,361,137 $44,074,291 $43,932,398 Parks& Recreation $6,002,301 $6,885,387 $6,869,911 $6,404,578 Utility Billing $961,043 $1,173,683 $1,140,963 $1,283,371 Debt Service $106,358,603 $43,124,453 $70,129,072 $47,957,064 Construction' $759,732 $119,397,911 $157,233,211 $98,425,962 Insurance Coverage $7,367,114 $9,183,853 $7,207,571 $8,825,077 Economic Development Corporation $1,677,042 $10,772,230 $5,063,342 $13,895,583 Other2 $6,634,011 $7,665,436 $10,776,521 $9,113,839 TOTAL EXPENDITURES $211,554,459 $290,683,601 $359,634,106 $286,878,469 Transfers to Other Funds $37,930,636 $12,374,868 $21,034,236 $10,494,399 TOTAL EXPENDITURES AND OTHER USES $249,485,095 $303,058,469 $380,668,342 $297,372,868 Revenues Over/(Under)Expenditures (955,230) 6,740,918 (8,347,509) (35,802,797) 'Capital projects are budgeted for project length. Construction is based on annual funding and not dollars spent. 20ther includes expenditures for Special Revenue Funds, excluding transfers. 43 CITY OF PEARLAND FY 2017 ADOPTED BUDGET SUMMARY ALL FUNDS REVENUES AND EXPENDITURES Revenue Summary All Funds Adopted FY 2017 Budget Interest Income 1 0.2% Grant Revenue 0.2% Hotel/Motel Occup. Tax i 0.6% Fines and Forfeitures il 1.2% Licenses and Permits 2.0% MFranchise Fees 3.5% Transfers from Other Funds 4.0% Miscellaneous 5.1 Other Revenue Sources 5.0% Sales Taxes 11.8% Property Taxes 19.9% Bond/Lease Proceeds 22.8% Charges For Services 24.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Expenditure Summary All Funds Adopted FY 2017 Budget Utility Billing 10.5% 1 Community Services 1.3% Parks & Recreation 2.2% Insurance Coverage 1=1 3.0% Other 3.1% Transfers to Other Funds 3.5% General Government 4.3% PEDC 4.7% Public Safety 13.6% Public Works 14.8% Debt Service 1 16.1% I 33.1% Construction 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 44 CITY OF PEARLAND FY 2017 ADOPTED BUDGET ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS SUMMARY ALL FUNDS FY2017 FY2017 FY2017 FY2017 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE General Fund $ 14,407,779 $ 74,249,777 $ 76,454,035 $ 12,203,521 Debt Service Fund 6,410,451 34,974,788 36,107,359 5,277,880 Special Revenue Funds 7,425,561 2,763,671 3,185,144 7,004,088 Governmental Capital Project Funds 7,412,281 40,163,340 47,193,918 381,703 Proprietary Funds 11,564,652 51,960,889 52,537,811 10,987,730 Proprietary Capital Project Funds 28,086,789 37,692,680 57,115,412 8,664,057 * Internal Service Funds 2,368,369 8,932,000 8,875,621 2,424,748 PEDC Fund 18,565,440 10,832,926 15,903,568 13,494,798 TOTAL $ 96,241,322 $261,570,071 $ 297,372,868 $ 60,438,525 *Exclusive of$2,688,411 reserved for debt service pursuant to bond covenants. SPECIAL REVENUE FUNDS FY2017 FY2017 FY2017 FY2017 ADOPTED ADOPTED ADOPTED ADOPTED FUND BEG BALANCE REVENUES EXPENDITURES END BALANCE 305 Hotel/Motel Occupancy Tax $ 4,235,503 $ 1,551,500 $ 1,072,180 $ 4,714,823 310 Court Building Security 16,203 53,050 62,031 7,222 315 Citywide Donation 34,046 21,900 55,946 320 Court Technology 15,975 60,010 73,579 2,406 325 Street Assessment* 330 Park Donations 93,240 101,100 127,500 66,840 331 Tree Trust 6,751 10 6,000 761 335 Police State Seizure 204,495 250 35,100 169,645 336 Federal Police 6,767 65 6,832 340 Park Development 1,092,136 53,000 418,250 726,886 345 Sidewalk 17,509 5,000 22,509 350 Grant Fund 10,063 196,955 196,926 10,092 351 Community Development Block Grant 325,431 325,431 360 Traffic Improvement 527,829 2,500 530,329 365 Court Juvenile Management 10,293 85,100 63,301 32,092 370 Municipal Channel 852,580 307,800 502,675 657,705 375 U of H Operating* 376 U of H Capital Renewal 302,171 302,171 380 Regional Detention 510 Lower Kirby* TOTAL $ 7,425,561 $ 2,763,671 $ 3,185,144 $ 7,004,088 *These Funds have no budgeted activity for FY2017 45 CITY OF PEARLAND FY 2017 ADOPTED BUDGET ANALYSIS OF FUND BALANCE AND CASH EQUIVALENTS GOVERNMENTAL CAPITAL PROJECT FUNDS FY 2017 FY 2017 FY 2017 FY 2017 ADOPTED ADOPTED ADOPTED ADOPTED BEG END FUND BALANCE REVENUES EXPENDITURES BALANCE 500 Capital Projects General $ 481,669 $ 102,500 $ 261,279 $ 322,890 501 Capital Projects-CO 6,040,015 7,071,058 13,059,703 51,370 502 Mobility Bonds 51 51 503 Certificates of Obligation Series 2006 481,331 481,331 0 505 GO Series 2007A 2,496 2,496 506 Capital Projects-GO 406,719 32,989,782 33,391,605 4,896 TOTAL $ 7,412,281 $ 40,163,340 $ 47,193,918 $ 381,703 PROPRIETARY FUNDS FY 2017 FY 2017 FY 2017 FY 2017* ADOPTED ADOPTED ADOPTED ADOPTED BEG END FUND BALANCE REVENUES EXPENDITURES BALANCE 600 Water& Sewer Fund $ 11,568,243 $ 44,810,025 $ 45,392,022 $ 10,986,246 * 610 Solid Waste Fund (3,591) 7,150,864 7,145,789 1,484 TOTAL $ 11,564,652 $ 51,960,889 $ 52,537,811 $ 10,987,730 *Net of any reserve requirements. PROPRIETARY CAPITAL PROJECT FUNDS FY 2017 FY 2017 FY 2017 FY 2017 ADOPTED ADOPTED ADOPTED ADOPTED BEG END FUND BALANCE REVENUES EXPENDITURES BALANCE 550 Utility Impact Fee Fund $ 26,068,199 $ 22,701,410 $ 42,161,199 $ 6,608,410 555 Shadow Creek Impact Fee 1,439,382 860,000 700,000 1,599,382 560 Certificates of Obligation 1998 27,602 27,602 565 W&S Revenue Bonds 172,209 13,578,620 13,648,754 102,075 570 Water/Sewer Pay As You Go CIP 379,530 552,500 605,459 326,571 575 MUD 4 Capital Program (133) 150 17 TOTAL $ 28,086,789 $ 37,692,680 $ 57,115,412 $ 8,664,057 INTERNAL SERVICE FUND FY 2017 FY 2017 FY 2017 FY 2017 ADOPTED ADOPTED ADOPTED ADOPTED BEG END FUND BALANCE REVENUES EXPENDITURES BALANCE 700 Property Liability Insurance $ 309,420 $ 1,470,812 $ 1,370,267 $ 409,965 702 Medical Self-Insurance 2,058,949 7,461,188 7,505,354 2,014,783 TOTAL $ 2,368,369 $ 8,932,000 $ 8,875,621 $ 2,424,748 PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC) FY 2017 FY 2017 FY 2017 FY 2017 ADOPTED ADOPTED ADOPTED ADOPTED BEG END FUND BALANCE REVENUES EXPENDITURES BALANCE 900 Economic Development Fund $ 18,565,440 $ 10,832,926 $ 15,903,568 $ 13,494,798 TOTAL $ 18,565,440 $ 10,832,926 $ 15,903,568 $ 13,494,798 46 GENERAL FUND AND WATER & SEWER FUND TRENDS THROUGH FISCAL YEAR 2017 GENERAL FUND REVENUES General Fund revenues have increased by 29%from FY 2013 through FY 2017. Five Year Revenue Trend $74.25 $80 $63.29 $65.94 $71.27 $70 $57.41 111 $60 0 $50 c g F $40 $30III ta $20 $10 $- i FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Year End Adopted Amended Five Year General Fund Revenues by Type Other r71 Miscellaneous Fines & Forfeitures Transfers In 1 1 1 Licenses & Permits Franchise Fees Charges for Service Property Taxes Sales and Use Taxes 0`)/0 5% 10% 15% 20% 25% 30% ■FY 2013 ❑FY 2014 ■FY 2015 ❑FY 2016 ■FY 2017 47 GENERAL FUND EXPENDITURES General Fund expenditures have increased by 38% from FY 2013 to FY 2017. Five Year Expenditure Trend $80 $75.67 $75.25 $70 $60 $54.38 $59.67 $62.71 111 o $50 c $40 i II ta $30 I! lir $20 $10 $- I— 1 - 1 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Year End Amended Adopted Five Year General Fund Operating Expenditure Trend by Function I 100% 90% _ 80% 70% 60% 50% 40% 30% 20% 10% - 0% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 ■Public Safety ❑Public Works ■General Government ❑Parks & Recreation •Community Services I 48 GENERAL FUND—FUND BALANCE The General Fund balance has decreased 50.4% from FY 2013 through FY 2017. General Fund Balance Five-Year History $30 $25 $24.58 $21.35 $19.45 Co $20 $15 $14.41 $12.20 EC $10 $5 $0 - FY 2013 FY 2014 FY 2015 FY 2016 Year End FY 2017 Actual Actual Actual Amended Adopted 49 WATER AND SEWER FUND REVENUES Water and Sewer Fund revenues have increased by 39% from FY 2013 to FY 2017. Five Year Revenue Trend $50 $44.81 $40 $39.74 $39.02 $32.23 $31.77 .2 $30 E c $20 $10 $0 FY2013 FY2014 FY2015 FY2016 Year End FY 2017 Actual Actual Actual Amended Adopted Five-Year Water and Sewer Revenue Comparison by Source $25 - $20 - _ —s co •2 $15 • E $10 $5 • • ♦ ♦ ♦ $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Year End Adopted Amended Sale of Water Sewer Revenues -Other Service Charges —+—Transfers In Other* *Other includes Interest, Grants, Bond Lease Proceeds, Miscellaneous 50 WATER AND SEWER FUND EXPENSES Water and Sewer Fund expenses have increased by 48% from FY 2013 to FY 2017. Five Year Expenditure Trend $50 $45.39 $40.39 Mr- $40 . $37.30 — w 1 $30.76 $29.94 C I "0 uz) $20 • $10 FY 2013 FY 2014 FY 2015 FY 2016 Year End FY 2017 Actual Actual Actual Amended Adopted Five Year Water and Sewer Fund Expenses by Function 100% .1 ■Information Tech 90% ommi ■Lift Stations 80% ❑PW Grounds Mtce 70% ❑Administration 60% - ■ ❑Water Meter Services 5 0% ■ - - ■ ❑Utility Customer Svcs 1 40% ■ ■Construction 30% 0 Distribution&Collection 20% ■Water Production ' 10% ❑Wastewater Treatment 0% ■Other Requirements FY 2013 FY 2014 FY 2015 FY 2016 Year FY 2017 Actual Actual Actual End Amended Adopted 51 WATER AND SEWER FUND BALANCE - CASH EQUIVALENTS Water and Sewer Fund Balance Cash Equivalents $18.00 $16.00 illi $15.90 $14.00 $13.44 $12.00 $11.83 $11.63 $10.99 (I) o $10.00 ._ i A c $8.00 $6.00 $4.00 $2.00 $0.00 FY 2013 FY 2014 FY 2015 FY 2016 Year FY 2017 Actual Actual Actual End Amended Adopted* *Exclusive of$2,688,411 reserve for debt service pursuant to bond covenants. 52 CITY OF PEARLAND MULTI-YEAR FORECAST FISCAL YEARS 2017 - 2019 EXECUTIVE SUMMARY The Financial Forecast for the City of Pearland over a three-year timeframe includes the City's Debt Service (DS) Fund, General (GF) Fund, Water and Sewer (W&S) Fund, and Pearland Economic Development Corporation (PEDC). This is an update to the City's annual comprehensive and integrated forecast of these funds based on a set of assumptions and is intended to: • Provide insight into the long-term financial implications of current policies, programs, and priorities; • Provide an understanding of available funding, financial risk, assess the likelihood that services can be sustained, assess the level at which capital investment can be made, identify future commitments and resource demands, and identify variables that may cause changes in the level of revenues; • Provide an early warning system for potential problem areas to watch where alternative strategies may need to be developed or where issues can be proactively addressed and planned for; • Assist in strategic decision-making and long-range planning efforts by allowing City Council, management, and departments to see how programs fit within the overall context of City finances; and • Provide City Council and City management a meaningful tool in establishing priorities, allocating resources, and providing direction and strategies in the administration of City government. The forecast provides a solid planning tool by building upon the proposed 2016-2017 budget and then projects future resources and expenditures based upon known reasonable trends and continuing the City's current services and service levels. The forecast for each fund also incorporates the debt and operating costs associated with capital improvement projects in the City's Five-Year Capital Improvement Program (CIP), thus, these forecasts provide City Council and management the opportunity to "gaze" into the future based on today's and past decisions and apply strategies and sound fiscal management to maintain the strong financial health of the City. This forecast is not intended as a budget. Rather, the multi-year forecast is a valuable tool, based on a set of well-reasoned assumptions, upon which policy and strategy may be formulated. The forecast is a vital component of the City's financial management strategy. OVERVIEW The Debt Service, General Fund,Water&Sewer Fund and PEDC forecasts form the"core"of this document. The DS Fund accounts for the issuance of debt and provides for the payment of debt principal, interest and tax rebates to in-city municipal utility districts. In this fund, an ad valorem (property) tax rate and tax levy are required to be computed and levied, which will be sufficient to produce the money to satisfy annual debt service requirements. The GF is the general operating fund of the City and is used to account for all financial activity not reflected in other funds. The fund consists of the following major departments: General Government, Public Safety, Parks & Recreation, Public Works,and Community Services. The W&S Fund includes water and sewer system operations and is operated in a manner similar to private business enterprises, where services to the public are financed primarily through user charges. This fund consists of the following major functions: Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection, Construction, Meter Services, and Billing and Collections. The PEDC, established in 1995 by the voters under the Texas Development Corporation Act of 1979, provides guidance and funding for the operations of the City's economic development program and provides business incentives to support and promote the growth and diversification of the City's economic base. It is important to note that the numbers in these multi-year forecasts are estimates based on various assumptions and are not representation of fact. The picture reflected in this forecast portrays a scenario if all assumptions hold true. Therefore, the importance of the forecasts lies not in the numbers, but in the discussion it encourages on the policy issues and strategies that can be implemented in the event these scenarios become reality. 53 Based upon these assumptions,the forecast shows that the City will be able to accomplish the following: • Fund existing services at current service levels • Meet current and future anticipated debt service obligations • Fund a Multi-Year Capital Improvement Program and associated operating expenditures • Meet cash reserve and bond coverage requirements • Meet a 10% reserve policy in the DS Fund • Operate and maintain new and existing City facilities • Maintain business incentives to attract capital investments to the City However, in order to do so, • The overall FY 2016/17 tax rate decreased from $0.7053 to $0.6812 per $100 valuation; a $0.0187 increase in the O&M tax rate and a decrease in the debt service portion of $0.0428. The total tax rate is anticipated to increase in fiscal year 2017/18 by$0.01, all in the O&M rate, and in FY 2018/19 by$0.0295; $0.017 in the O&M rate and $0.0125 in the Debt Service rate. • For the debt service requirements, there is $0.0125 in the debt service portion for planned capital improvements approved by voters in 2007 and the 2017-2021 CIP. The tax impact analysis done for the 2007 bond referendum showed an impact of $0.0750 and an additional $0.055 to complete projects from the 2001 referendum, for a total tax rate increase of$0.13. By FY 2018/2019, the total tax rate is expected to increase $0.0988 from 2007. • Revenue increases of 15.6% are needed in fiscal year 2017 in the water/sewer fund. Additional increases are needed in fiscal years 2018 and 2019 of 19.1% and 6.5%, respectively, in order to meet cash reserve and bond coverage requirements. FORECAST METHODOLOGY As part of the formulation of these forecasts, the forecast methodology includes estimating the future values of revenues and expenditures. The forecast provides an estimate of how much revenue will be needed/required in order to meet expenditures and reserve and bond coverage requirements over the forecast period. The value of forecasts is in estimating whether, given assumptions about financial policies and economic trends, the City will have sufficient resources to meet the resource requirements of ongoing, planned or mandated programs. In the City's forecasts, there are a mixture of methodologies, including historical and factual information, knowledge of anticipated events, and judgment. The methodologies incorporate information gathered on anticipated population growth and building permits. Anticipated sales tax from retail sales, anticipated valuations, and other variables were identified to try to minimize the risk of overstating or understating revenue. Much like revenue, the expenditure projections for the General Fund and Water Sewer Fund are based on historical trends, anticipated events, assumptions about the future, and other judgments staff deemed appropriate. Salary projections are based on anticipated merit and salary adjustments, and benefits were broken out separately to account for the aberrant behavior of certain benefits, such as TMRS and health care benefits. The City may attempt to enact some controls to prevent the anticipated growth of operating expenses, but such controls are assumed in the plan. The Debt Service Fund expenditure forecast is based upon current debt service payments, as well as anticipated debt from new debt issuances based on the City's Five-Year CIP and MUD rebates. General Fund and Debt Service revenues are dependent on the net assessed property valuation assumptions which are derived from anticipated residential and commercial development, revaluation of existing property, and the scheduled roll-off of tax abatements. The forecast assumes the following property valuation growth. FY 2017 FY 2018 FY 2019 _ Property Valuation $7,623,677,993 $8,047,054,679 $8,595,065,814 Growth 18.6% 5.6% 6.8% 54 INDIVIDUAL FUND OVERVIEWS Tax Rate In fiscal year 2016/17, the adopted tax rate of $0.6812, a decrease of $0.0241, allocates $0.2412, or 35.4% to the General Fund and $0.4400 or 64.6% to the Debt Service Fund. The chart below presents the total tax rate required to meet obligations and the allocation between Debt Service and O&M. The General Fund O&M effective tax rate plus 8% establishes the rollback rate. City Council determines the actual tax rate each year. Going above the rollback tax rate is subject to petition for a vote by the citizens. As shown on the table below, by fiscal year 2018/19, the total tax rate is $0.7207; 37.2% to the General Fund and 62.8% to the Debt Service Fund, which represents an increase of$0.0457 to the General Fund and a decrease of $0.0303 to the Debt Service Fund from the fiscal year 2015/16 adopted tax rate. The Debt Service Fund tax rate for fiscal year 2016/17 decreased from $0.4828 in fiscal year 2016 to $0.4400 and the General Fund tax rate increased from $0.2225 to $0.2412. As compared to last year's multi-year forecast, the FY 2016/17 tax rate is $0.0341 lower than anticipated and the FY 2017/18 tax rate is $0.0218 lower as property valuations increased and influenced the rate. Tax Rate ■General Fund ❑Debt Service Fund 0.7053 0.7207 0.6812 0.6912 $0.4828 $0.4400 $0.4400 $0.4525 $0.2225 $0.2412 $0.2512 $0.2682 2016 Actual 2017 Adopted 2018 Forecasted 2019 Forecasted Debt Service Fund The Debt Service Fund can meet all current and future obligations based on the City's Multi-Year Forecast and Five-Year CIP. The issuance of debt is factored in based on the Five-Year CIP. All new debt issued is assumed to be issued with a 20-year maturity level principal payment. In order to fund obligations and implement the fiscal year CIP, the Debt Service tax rate will need to increase by $0.0125 from the adopted fiscal year 2016/17 tax rate of $0.4400 to the fiscal year 2018/9 tax rate of $0.4525. From fiscal year 2016/17 to fiscal year 2018/19, total revenues are anticipated to increase 16.8%. General Fund The General Fund meets revenue requirements for fiscal years 2017 through 2019, however, the fund is structurally balanced for FY 2017/18 whereby expenses are greater than revenues. The policy reserve requirement of 2 months recurring operating expenditures increases from $11,199,984 in fiscal year 2015/16 to $12,526,832 in fiscal year 2018/19. In order to fund services and meet fund balance policy requirements, the O&M tax rate will increase from $0.2412 in FY 2016/17 to $0.2682 in 2019, though limited by truth-in-taxation laws. 55 Full-time equivalents in the General Fund will increase from 611 in fiscal year 2017 to 621 for fiscal year 2018 and 638 by fiscal year 2019, an increase of 27 positions over the three-year period. Population is expected to increase annually, not including the day-time or weekend populations from continued retail development. An increase of 27 positions from 2017 - 2019 are associated with completed CIP projects for base services and growth. The CIP staff additions include 1 for Independence Park Phase I and 3 for the Delores Fenwick Nature Center in fiscal year 2018 and 10 for Fire Station #8 in fiscal year 2019. The remaining 13 positions are built in for base growth which includes 4 scheduled police officers per year. Property and Sales Tax are a major revenue component funding these expenditures. Revenues from property tax, as a percent to total revenues, are 24.9% in fiscal year 2016/17. General Fund property tax revenues as a percentage of total increases to 26% in fiscal year 2017/18 and increases to 27.7% in 2018/19. Sale tax receipts, remain relatively stable. The City is projected to maintain a modest increase in sales tax in fiscal year 2016/17 through 2019; a 4% increase is projected for 2017/18 and 2018/19, mainly due to continued, but moderate development. 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 2016/17 of 15.6% to meet cash reserve ratios as the City is issuing debt of $64.87 million for expansion of the Surface Water Plant, water meter change-out, and other water and sewer line replacements. Revenue increases are also needed of 19.1% and 6.5% for 2017/18 and 2018/19 due to additional plant expansions and resulting debt service. Revenue bonds sold over the three-year period 2017 - 2019, total $189.8 million. The utility system users generate the revenues that support the system. Annual water and sewer charges by 2018/19 total $53.51 million, an increase of $13.28 million from fiscal year 2016/17, 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 $55.50 million in fiscal year 2019, up from $45.39 million in fiscal year 2017. Debt service increases over the forecast period, from $15.9 million in fiscal year 2017 to $23.2 million in fiscal year 2019. Revenues generate about$2.3 million in pay-as-you go funding for capital projects. With the implementation of the revenue increases included in the forecast, the system can continue to be self- supporting and financially sound. Pearland Economic Development Corporation (PEDC) The Corporation can fund its current operations and provide funding for the strategic priorities of the Pearland 20/20 Community Strategic Plan, including business recruitment, Lower Kirby, SH 35 and FM 518 corridors, SH 288 corridor enhancements and beautification. Through the 2019 forecast period, the ending fund balance is projected to be $10.1 million in FY 2018, a decrease of $3.4 million, and $3.1 million in fiscal year 2019 due to the above listed strategic priorities of the Pearland 20/20 Community Strategic Plan. Sales tax revenue is a major component of funding for the Corporation. Revenues from sales taxes increased by 10.3% through the forecast period, from $10.2 million in fiscal year 2017 to $11.3 million in fiscal year 2019. The sales tax revenues are 94.5% of the total revenues in 2017 and 90.8% in 2019. 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. 56 • Continue marketing efforts in order to expand the tax base—property and sales tax. • Continue to review capital projects timing in order to build when needed and not before. • Continue to look at other funding sources for capital improvements to leverage City dollars such as grants, developer agreements, inter-local agreements, etc. • Identify strategies to increase pay-as-you-go funding for maintenance of existing infrastructure. CONCLUSION The proposed forecast is conservative and only includes developments that are anticipated based on current knowledge. If certain economic development projects are successful and come to fruition, or if new developments not currently known take place, then this forecast will substantially change. This forecast will be updated annually as any new developments that will impact revenue or expenditures are identified as"concrete,"or likely to happen. 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. 57 MULTI-YEAR BUDGET 2017-19 DEBT SERVICE Actual Amended Adopted Projected DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Revenues Property Taxes Property Taxes 28,435,441 30,670,687 33,242,286 35,901,669 38,773,802 Delinquent Taxes 128,725 180,000 150,000 163,067 174,187 Penalty& Interest 193,804 195,000 140,000 194,426 207,685 28,757,970 31,045,687 33,532,286 36,259,162 39,155,674 Miscellaneous Revenue Lease Income - UofH 768,714 859,398 838,736 838,710 815,232 Interest Income 47,777 55,106 50,000 50,000 50,000 Miscellaneous 546,090 816,491 1,460,594 888,736 888,710 865,232 Bond Proceeds Bond Proceeds on Refunding 54,773,103 29,274,797 54,773,103 29,274,797 Transfers Transfers from Fund 600 277,127 277,127 277,127 277,127 277,127 Transfers from Fund 600 for MUD 4 179,440 176,710 173,850 170,860 167,480 Transfers in from Fund 100 156,844 154,160 102,789 100,145 97,646 613,411 607,997 553,766 548,132 542,253 Total Revenues 84,960,974 62,389,075 34,974,788 37,696,004 40,563,159 58 MULTI-YEAR BUDGET 2017-19 DEBT SERVICE Actual Amended Adopted Projected DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Expenditures Miscellaneous Services Arbitrage Services 31,960 36,385 42,385 45,385 48,385 31,960 36,385 42,385 45,385 48,385 MUD Rebates MUD Rebates 4,792,375 5,460,761 6,645,152 6,919,814 7,129,544 4,792,375 5,460,761 6,645,152 6,919,814 7,129,544 Bond Payment Current Debt Service Principal 11,275,000 12,535,000 13,410,000 14,015,000 16,690,000 Current Debt Service Interest 12,382,763 11,882,835 12,577,322 11,678,817 11,142,849 Future Debt Issuances General Obligation 2017 2,160,167 1,941,750 General Obligation 2018 970,971 CO's Series 2017 630,625 566,875 CO's Series 2018 360,933 Fiscal Fees 10,575 12,000 21,000 22,500 24,000 Bond Issuance Costs 471,161 315,619 Escrow Agent/Issuance 54,303,290 29,840,000 78,442,789 54,585,454 26,008,322 28,507,109 31,697,378 Short-Term Note Current Lease/Purchase (P&I) 1,196,172 929,640 1,911,500 Future Lease/Purchase 1,196,172 929,640 1,911,500 Future Defeasance of Debt Defeasance of Debt 1,500,000 2,000,000 2,000,000 1,500,000 2,000,000 2,000,000 Total Expenditures 84,463,296 61,012,239 36,107,359 37,472,308 40,875,307 Revenues Over(Under) 497,678 1,376,836 (1,132,572) 223,696 (312,148) Expenditures Beginning Fund Balance 4,535,937 5,033,616 6,410,451 5,277,880 5,501,575 Ending Fund Balance 5,033,616 6,410,452 5,277,880 5,501,575 5,189,428 10% Reserve Requirement 2,867,615 3,085,662 3,610,736 3,747,231 4,087,531 Amount over 10% Reserve 2,166,001 3,324,790 1,667,144 1,754,344 1,101,897 DS Tax Rate 0.4900 0.4828 0.4400 0.4400 0.4525 DS Tax Rate Change (0.0428) 0.0125 59 MULTI-YEAR BUDGET 2017-19 GENERAL FUND OVERVIEW Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Revenues Property Taxes 13,261,422 14,292,773 18,502,590 20,370,206 23,201,184 Sales Taxes 19,073,940 19,746,556 20,526,818 21,352,691 22,317,378 Franchise Fees 6,663,788 6,770,450 6,930,000 7,193,200 7,466,468 Licenses & Permits 4,550,094 4,913,295 5,183,830 5,641,970 5,813,946 Fines & Forfeitures 2,968,634 2,899,950 2,902,500 3,003,130 3,107,253 Charges for Service 13,442,538 14,649,885 15,250,614 15,632,008 16,607,020 Miscellaneous 1,824,774 3,032,855 1,590,153 1,657,133 1,744,356 Transfers in 3,580,712 3,167,622 3,263,272 3,361,170 3,462,005 Other Financing Sources __ 574,049 1,800,000 100,000 - - Total Revenues 65,939,951 71,273,386 74,249,777 78,211,507 83,719,609 Expenditures General Government 9,552,291 12,359,756 12,255,286 11,862,892 12,167,660 Public Safety 33,692,260 40,099,528 40,300,860 42,091,094 43,581,349 Community Services 3,163,999 3,517,534 3,577,288 3,714,539 3,788,830 Public Works 10,592,610 12,976,333 12,912,065 12,129,311 12,439,611 Parks & Recreation 5,706,921 6,711,925 6,205,747 6,409,016 6,537,183 O&M for CIP 735,815 1,997,052 Total Operating Expenditures 62,708,081 75,665,076 75,251,246 76,942,667 80,511,685 Transfers Out 1,332,134 2,554,768 1,202,789 1,455,789 2,173,677 Total Expenditures 64,040,215 78,219,844 76,454,035 78,398,456 82,685,362 Revenues Over/(Under) Expenses 1,899,736 (6,946,458) ( 2,204,258) (186,949) 1,034,247 Beginning Fund Balance $19,454,501 $21,354,237 $14,407,779 $12,203,521 $12,016,572 Ending Fund Balance $21,354,237 $14,407,779 $12,203,521 $12,016,572 $13,050,819 Calculation of Fund Balance Policy: Ending Fund Balance 14,407,779 12,203,521 12,016,572 13,050,819 Less Policy Requirement 11,199,984 11,582,786 11,877,366 12,526,832 Excess funds available over policy 3,207,795 620,734 139,206 523,987 Tax Rate Variable: General Fund $ 0.2225 $ 0.2412 $ 0.2512 $ 0.2682 Debt Service Fund $ 0.4828 $ 0.4400 $ 0.4400 $ 0.4525 Total Tax Rate $ 0.7053 $ 0.6812 $ 0.6912 $ 0.7207 60 MULTI-YEAR BUDGET 2017-19 GENERAL FUND REVENUE DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Property Taxes Current Taxes 12,888,645 14,000,000 18,222,817 20,030,844 22,842,154 Delinquent Taxes 58,350 87,000 72,000 79,200 87,120 Penalty& Interest 101,072 73,000 75,000 78,750 82,688 In Lieu of Property Taxes 213,355 132,773 132,773 139,412 146,382 Annexation Areas 1 and 2 42,000 42,840 Total Property Taxes 13,261,422 14,292,773 18,502,590 20,370,206 23,201,184 Sales Taxes Sales Taxes 18,825,884 19,506,556 20,286,818 21,098,291 22,047,714 Mix Drink Taxes 248,056 240,000 240,000 254,400 269,664 Total Sales Taxes 19,073,940 19,746,556 20,526,818 21,352,691 22,317,378 Franchise Fees Gas 324,993 290,450 300,000 309,000 318,270 Electric 3,006,312 3,000,000 3,100,000 3,224,000 3,352,960 Telephone 276,454 280,000 290,000 298,700 307,661 Cable 1,538,673 1,600,000 1,620,000 1,684,800 1,752,192 Sanitation 1,517,356 1,600,000 1,620,000 1,676,700 1,735,385 Total Franchise Fees 6,663,788 6,770,450 6,930,000 7,193,200 7,466,468 Licenses & Permits Building Permit 298,170 500,000 525,000 543,375 562,393 BP Plan &Zone Adjustment 5,000 5,000 5,150 5,305 Platting Fees 107,301 150,480 150,500 155,015 159,665 Beer Permits 17,120 21,000 21,000 21,630 22,279 Moving Permits 5,380 5,500 5,500 5,665 5,835 Peddlers & Solicitors 4,655 4,500 4,500 4,635 4,774 Health Certificate Fees 93,892 130,000 130,000 133,900 137,917 Wrecker Permits 8,857 5,200 5,200 5,356 5,517 Building Plan Check Fee 1,167,332 1,200,000 1,200,000 1,236,000 1,273,080 Occupancy Permits 11,340 12,000 12,000 12,360 12,731 Demolition Permits 2,230 1,500 1,500 1,545 1,591 Bldg. Site Work Permit 104,834 100,000 100,000 103,000 106,090 BP -Alarm Permits 42,185 35,000 35,000 36,050 37,132 Health-Registration 1 Yr. 450 Sign Permits 18,521 16,500 18,500 19,055 19,627 Ambulance Permit 17,200 17,000 17,000 17,510 18,035 Taxi Cab Permit 3,518 2,000 2,000 2,060 2,122 Temporary Structures 2,330 2,500 2,500 2,575 2,652 Recordation & Courier Fee 5,493 4,000 4,000 4,120 4,244 Miscellaneous 6,000 6,000 6,180 6,365 Electrical 12,000 34,000 35,020 36,071 Plumbing & gas 15,000 22,000 22,660 23,340 Mechanical 10,000 31,000 31,930 32,888 Processing Fee 100 100 103 106 Metal Dealer 200 200 206 212 NB - Building Permit 1,628,271 1,474,335 1,525,000 1,570,750 1,617,873 61 MULTI-YEAR BUDGET 2017-19 GENERAL FUND REVENUE DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 NB BP Plan &Zone Adjustment 28,820 28,000 28,000 28,840 29,705 Garage Sale Permits 33,525 33,000 33,000 33,990 35,010 Culvert Permits 500 500 515 530 Animal Licenses 37,465 37,000 37,000 38,110 39,253 Foster Home Inspection 2,100 2,100 2,100 2,163 2,228 Mowing Lien (6,505) 500 500 515 530 Electrical Permits 253,981 300,000 318,000 357,540 368,266 Plumbing & Gas Permits 239,973 300,000 268,000 306,040 315,221 Mechanical Permits 279,941 280,000 324,000 363,720 374,632 Processing Fee 50,000 180,000 215,400 221,862 Reinspection Fee/Inspection 20,940 37,000 20,000 50,600 52,118 Fire Alarm 11,375 9,000 9,000 9,270 9,548 Fire Protection 3,880 5,600 5,600 5,768 5,941 Fire Sprinkler 25,743 14,000 14,000 14,420 14,853 Fire Sprinkler-Alteration 17 250 100 103 106 Fireworks 50 150 150 30,155 31,059 Irrigation 27,491 30,000 30,000 60,900 62,727 Swimming Pool 46,021 49,180 49,180 80,655 83,075 Dirt Grading Permit 500 1,500 1,500 31,545 32,491 Misc. Ambulance Permit 5,700 5,700 5,700 35,871 36,947 Total Licenses & Permits 4,550,094 4,913,295 5,183,830 5,641,970 5,813,946 Fines & Forfeiture Fines & Forfeitures 2,757,624 2,711,000 2,711,000 2,805,885 2,904,091 Child Safety 30,272 44,000 45,000 46,350 47,741 Child Safety-Harris Co. 5,886 5,000 5,000 5,150 5,305 Commercial Carrier Fines 78,139 50,000 50,000 51,500 53,045 Time Efficiency (10,940) (10,800) (10,800) (11,124) (11,458) Animal Cruelty (550) 350 350 361 371 Omnibase 13,392 12,000 12,000 12,360 12,731 State/Service Fee Recoup 75,008 78,450 80,000 82,400 84,872 Code Enforcement Fines 220 150 150 155 159 Bond Forfeitures 19,365 8,700 8,700 8,961 9,230 Teen Court 220 1,100 1,100 1,133 1,167 Total Fines & Forfeitures 2,968,634 2,899,950 2,902,500 3,003,130 3,107,253 Service Charges Ambulance Service Fee 2,756,044 2,500,000 2,500,000 2,575,000 2,652,250 Mud/Ems/Fire Collections 78,846 130,000 140,000 144,200 148,526 Strategic Ptr Agrmt/Fire,Ems 366,464 456,606 436,000 462,160 489,890 Medicare Reimbursement 558,188 False Alarm Fee 95,418 80,000 80,000 82,400 84,872 Arrest Fees 6,877 3,000 3,000 3,090 3,183 Clear. Letter Fee 430 350 350 361 371 Subpoena 91 50 50 52 53 Offense Report Copies 46 50 50 52 53 Accident Report Copies 6,002 6,000 6,000 6,180 6,365 Other Copies 2,500 50 52 53 62 MULTI-YEAR BUDGET 2017-19 GENERAL FUND REVENUE DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Non-Emergency EMS Transport 1,648 Non-Emergency EMS Service 1,100 1,200 1,236 1,273 TCLEOSE Funds 11,229 Training Tuition 2,498 5,000 5,000 5,150 5,305 Training Recycling Animal Shelter Fees 36,688 40,000 40,000 41,200 42,436 Facility Rentals 132,898 133,000 133,000 136,990 141,100 Swimming Pool Fees 20,783 18,000 Natatorium 131,754 83,000 80,000 82,400 84,872 Recreation Center Rentals 30,839 45,000 45,000 46,350 47,741 Hickory Slough Sports Complex Recreation Center Memberships 1,448,507 1,500,000 1,500,000 1,545,000 1,591,350 Discounts (130,229) Facility Rental - U of H 2,405 Special Event Permit Fee 50 150 150 155 159 Events & Programs 520,120 483,427 695,000 715,850 737,326 Engineering Inspect Fee 270,034 150,000 150,000 184,500 190,035 TIRZ Administration Fee 7,623,794 9,244,652 9,114,576 9,843,742 10,631,241 Permits Inspection Fee 22,505 10,000 10,000 10,300 10,609 Traffic Impact Analysis 6,800 23,000 10,000 10,300 10,609 Total Service Charges 13,442,538 14,649,885 15,250,614 15,632,008 16,607,020 Interest Interest Income 109,257 100,000 105,000 108,150 111,395 Unrealized Capital Gain(Loss) 14,051 Total Interest 123,308 100,000 105,000 108,150 111,395 Intergovernmental TX Dept of Transportation 11,211 1,372,143 Total Intergovernmental 11,211 1,372,143 Miscellaneous Building Rent 18,322 14,153 14,153 14,578 15,015 Phone & Fax Reimbursement 8,035 8,590 8,400 8,652 8,912 Street Light Charges 115,682 80,000 80,000 80,000 80,000 Other Xerox Copies 6,511 30,000 5,000 5,150 5,305 SRO Equipment 88,760 96,848 100,000 103,000 106,090 SRO Personnel 707,257 823,144 825,000 886,875 953,391 Sale Of Property 155,686 45,000 50,000 36,050 37,132 Insurance Reimbursement 102,843 55,820 Miscellaneous 392,717 350,000 365,000 375,950 387,229 Storm Sewer Outfall Parkside 10,000 10,000 10,300 10,609 Cash Short/Over 68 N.S.F. Fees 5,210 1,000 850 876 902 Public Safety 7,700 Court Bonds 6,000 6,000 6,180 6,365 Waiver Of Encroachment 250 250 250 258 265 63 MULTI-YEAR BUDGET 2017-19 GENERAL FUND REVENUE DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Suspense Revenue (74) 350 Sign Revenue 36,715 10,000 20,000 20,600 21,218 Misc. Recycle 51,373 21,357 Misc. Parks 900 500 500 515 530 Total Miscellaneous 1,690,255 1,560,712 1,485,153 1,548,983 1,632,961 Grant, Issuance, Transfers Victims Program 5,020 1,000 1,000 1,030 1,061 Transfers In 3,575,692 3,166,622 3,262,271 3,360,140 3,460,944 Total Grant, Issuance, Transfers 3,580,712 3,167,622 3,263,271 3,361,170 3,462,005 Other Financing Sources Capital Lease Proceeds 574,049 1,800,000 100,000 Total Other Financing Sources 574,049 1,800,000 100,000 Total Revenues 65,939,951 71,273,386 74,249,777 78,211,507 83,719,609 64 MULTI-YEAR BUDGET 2017-19 GENERAL FUND EXPENDITURES DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 General Government City Council 101,377 100,346 116,008 118,328 120,695 City Manager 764,822 847,911 1,005,766 1,025,881 1,046,399 Human Resources 880,196 1,106,334 1,028,653 1,049,226 1,070,211 City Secretary 380,825 396,373 377,842 385,399 393,107 Legal 813,467 754,865 768,633 784,006 799,686 Information Systems 2,949,548 4,830,207 3,001,235 3,061,260 3,122,485 Finance 1,908,971 2,285,801 2,370,292 2,417,698 2,466,052 Other Requirements 1,029,352 1,668,331 3,217,106 2,643,948 2,696,827 Library 723,733 369,588 369,751 377,146 384,689 NEW POSITIONS 67,509 New Lease/Purchases Total General Government 9,552,291 12,359,756 12,255,286 11,862,892 12,167,660 Public Safety Police Administration 1,387,166 1,463,801 1,556,194 1,587,318 1,622,008 Patrol 12,484,295 14,460,335 14,823,995 15,438,873 16,386,256 Investigations 2,670,163 2,953,824 3,237,782 3,705,534 3,786,529 Community Sery 683,706 846,005 777,403 792,951 808,810 Communications & Records 1,797,938 2,024,897 2,125,270 2,167,775 2,211,131 Jail 1,048,056 1,099,274 1,154,587 1,177,679 1,201,232 Commercial Vehicle Enfcmt 226,033 266,846 234,291 238,977 243,756 SRO 1,158,883 1,319,860 1,285,831 1,311,548 1,337,779 Training 98,505 312,836 312,155 318,398 324,766 Animal Control 774,747 987,270 984,345 1,004,032 1,024,113 Police (Total) 22,329,492 25,734,948 26,491,853 27,743,085 28,946,380 Fire Administration 938,092 1,146,854 1,049,894 1,070,892 1,092,310 Fire 9,283,302 11,647,793 11,136,810 11,359,546 11,586,737 Fire Marshal 686,434 930,941 917,255 935,600 954,312 Emergency Management 34,509 35,836 148,347 151,314 154,340 Health/Code Enforcement 420,431 603,156 556,701 567,835 579,192 NEW POSITIONS 262,822 268,078 Total Public Safety 33,692,260 40,099,528 40,300,860 42,091,094 43,581,349 Community Services Community Development Admin. 432,537 368,689 379,306 386,892 394,630 Planning 407,325 563,161 519,701 530,095 540,697 Permits & Inspections 1,177,799 1,389,409 1,390,036 1,417,837 1,446,193 Communications 474,456 474,651 508,936 519,115 529,497 Municipal Court 671,881 721,624 779,309 794,895 810,793 NEW POSITIONS 65,705 67,020 Total Community Services 3,163,999 3,517,534 3,577,288 3,714,539 3,788,830 Public Works Engineering & Capital Projects 259,117 269,417 Engineering 986,341 1,309,037 1,342,684 1,369,538 1,396,928 Capital Projects 843,783 884,252 970,533 989,944 1,009,743 Public Works Operations Admin. 219,339 176,879 185,738 189,453 193,242 65 MULTI-YEAR BUDGET 2017-19 GENERAL FUND EXPENDITURES DETAIL Actual Amended Adopted Forecasted DESCRIPTION 2014-15 2015-16 2016-17 2017-18 2018-19 Facilities Maintenance 747,644 1,286,517 1,508,260 1,334,425 1,361,114 Custodial Services 252,637 443,464 470,568 479,979 489,579 Fleet Maintenance 486,236 389,975 390,956 398,775 406,751 Traffic Operations & Maintenance 1,351,981 1,353,565 1,103,149 1,125,212 1,147,716 Streets & Drainage 4,829,976 5,401,125 5,345,357 4,549,564 4,640,555 Right-of-Way Maintenance 615,557 1,462,102 1,594,820 1,626,716 1,659,251 NEW POSITIONS 65,705 134,733 Total Public Works 10,592,610 12,976,333 12,912,065 12,129,311 12,439,611 Parks & Recreation Administration 837,997 766,279 609,133 621,316 633,742 Recreation Center/Natatorium 2,111,380 2,396,551 2,102,125 2,144,168 2,187,051 Athletics 269,528 280,119 306,571 312,702 318,956 Special Events 252,477 337,339 328,866 335,443 342,152 Senior Programs 218,721 273,796 289,634 295,439 301,335 Aquatics 93,367 108,487 30,829 110,587 112,799 Parks 1,717,029 2,369,948 2,212,958 2,257,217 2,302,362 Natural Resources 325,631 Recycling 206,422 100,918 NEW POSITIONS Total Parks & Recreation 5,706,921 6,711,925 6,205,747 6,409,016 6,537,183 O&M FOR CIP 514,790 886,165 Personnel Services 221,025 1,110,887 Total CIP O&M 735,815 1,997,052 SUBTOTAL 62,708,081 75,665,076 75,251,246 76,942,667 80,511,685 Transfers 1,332,134 2,554,768 1,202,789 1,455,789 2,173,677 Total Transfers 1,332,134 2,554,768 1,202,789 1,455,789 2,173,677 TOTAL EXPENDITURE 64,040,215 78,219,844 76,454,035 78,398,456 82,685,362 66 MULTI-YEAR BUDGET 2017-19 GENERAL FUND 0 & M / NEW PERSONNEL FORECASTED DESCRIPTION FY 2018 FY 2019 Southeast Quadrant of Old Townsite Drainage 21,000 21,000 Independence Park Ph 1 6,460 6,783 Delores Fenwick Nature Center 62,907 106,332 Green Tee Terrace Trail 4,463 9,371 Tom Reid Library Expansion 90,382 90,382 Orange Street Service Center Phase I 92,856 92,856 Fire Station #1 78,085 86,815 Fire Station #8 132,235 Bailey Road Extension (Veterans to FM 1128) 80,611 84,642 Old Alvin Rd Widening (Plum to McHard) 19,226 19,226 Fite Road 16,786 17,625 Max Road 38,731 40,667 McHard Road Extension (Mykawa to Cullen) 158,971 Smith Ranch Road Expansion (CR 94) 15,813 Industrial Drive Realignment 3,283 3,447 Total $514,790 $886,165 CIP Personnel Services PROJECTED PROJECTED FY 2018 FY 2019 Independence Park Ph 1 $49,319 $50,799 Number of FTE 1 Delores Fenwick Nature Center $171,706 $176,857 Number of FTE 3 Fire Station #8 $883,231 Number of FTE 10 Total $221,025 $1,110,887 Number of FTE 4 10 Base Personnel General Government 0 1 Public Safety 4 4 Community Services 1 1 Public Works 1 1 Parks 0 0 Base Personnel Increase $ $403,705 $897,158 Number of FTE 6 7 Total Personnel Increase $ $624,730 $2,008,045 Number of Total FTE 10 17 Streets and Sidewalks Streets $915,512 $2,100,000 Sidewalks $537,000 $537,000 67 MULTI-YEAR BUDGET 2016-19 WATER & SEWER FUND DETAIL Projected Adopted Forecasted DESCRIPTION 2016 2017 2018 2019 Charges for Service Water/Sewer Charges 34,100,000 40,235,525 49,079,996 53,514,546 Sanitation Billing Fee 330,000 330,000 333,300 336,633 Connection Fee 175,000 175,000 176,750 178,518 Water/Sewer Tap Fee 455,000 455,000 455,000 459,550 Late Payment Fee 565,000 550,000 555,500 561,055 Meter Set Fee 2,500 2,500 2,525 2,550 Curb Stop Replacement Fee 500 500 505 510 Grease Trap Fee 50,000 50,000 50,000 50,500 Reconnect Fee 40,000 40,400 40,400 40,804 Miscellaneous 750 1,010 1,010 1,020 Total Charges For Service 35,718,750 41,839,935 50,694,986 55,145,686 Miscellaneous Revenue NSF Fees 8,000 8,000 8,080 8,161 Reimbursements 3,557 3,500 3,535 3,570 Miscellaneous 60,000 75,000 75,750 76,508 Total Miscellaneous 71,557 86,500 87,365 88,239 Interest Interest 123,500 125,000 126,250 127,513 Total Interest 123,500 125,000 126,250 127,513 Transfers in Transfers in 2,582,700 2,650,000 3,050,000 3,050,000 Total Interfund Transfers 2,582,700 2,650,000 3,050,000 3,050,000 Other Financing Sources Sale of Property 9,000 9,000 9,090 9,181 Miscellaneous 95,000 100,000 101,000 102,010 Capital Lease Proceeds 423,293 - 425,000 429,250 Total Other Financing Sources 527,293 109,000 535,090 540,441 Total Revenues 39,023,800 44,810,435 54,493,691 58,951,878 68 MULTI-YEAR BUDGET 2016-19 WATER & SEWER FUND DETAIL Projected Adopted Forecasted DESCRIPTION 2016 2017 2018 2019 EXPENDITURES Public Works Administration 614,636 762,221 791,115 821,359 Lift Stations 1,975,104 1,628,002 1,670,359 1,714,118 Wastewater Treatment Plant 5,826,496 6,039,220 6,182,924 6,330,810 Water Production 10,169,713 9,907,878 10,128,618 10,355,063 Distribution and Sewer Collection 2,595,181 2,479,306 2,562,204 2,648,685 Construction 827,452 789,777 817,707 846,906 Water Meter Services 1,524,287 1,761,175 1,805,457 1,851,159 ROW Mowing 431,033 406,965 428,300 450,566 Information Technology Administration 47,200 287,845 294,058 300,420 Information Technology-GIS 179,064 179,045 186,270 193,850 Utility Billing 1,140,963 1,225,000 1,268,377 1,313,721 Other Requirements 15,060,822 19,925,588 25,169,883 28,674,047 Total Expenditures 40,391,951 45,392,022 51,305,272 55,500,704 Revenues Over(Under) (1,368,151) (581,587) 3,188,419 3,451,174 Expenditures Beginning Cash Equivalents $15,624,805 $14,256,654 $13,447,917 $ 16,414,646 Reserve for Debt Service $ 2,623,222 $ 2,688,411 $ 4,160,119 $ 6,034,664 Ending Cash Equivalents 11,633,432 10,986,656 12,476,217 13,831,156 Bond Coverage - 1.4 1.50 1.65 2.19 1.73 Cash Reserve Ratio - 25% 29% 26% 25% 25% Number of Connections 35,204 36,067 36,952 37,859 % Revenue Increase Needed 16.0% 15.6% 19.1% 6.5% Revenue Bonds to be Issued $38,093,000 $40,842,000 $110,880,000 CASH EQUIVALENTS MULTI-YEAR HISTORY - FORECAST $18 $15.9 $15 $13.8 $ $11.6 12.5 ,-, $12 $11.0 c o $9 . $6 $3 Actual Projected Adopted Forecasted Forecasted 2015 2016 2017 2018 2019 69 MULTI-YEAR BUDGET 2017-19 PEARLAND ECONOMIC DEVELOPMENT CORPORATION Actual Year End Adopted Forecasted DESCRIPTION 2014-15 Amended 2016-17 2017-18 2018-19 2015-16 Revenues Sales Tax $9,403,602 $9,753,263 $10,240,926 $10,752,972 $11,290,621 Interest Income 151,990 85,000 110,000 110,000 112,365 Intergovernmental 775,504 4,217,857 12,000 163,620 565,324 Miscellaneous 442,234 552,000 470,000 470,000 470,000 Total Operating Revenues $10,773,329 $14,608,120 $10,832,926 $11,496,592 $12,438,310 Expenditures Operating $1,358,173 $1,764,999 $2,233,068 $2,377,603 $2,506,701 Bond Payments 8,498,288 $1,420,456 $1,426,256 $1,423,669 $1,425,575 Inventory 1,544 $5,000 $5,000 $5,000 $5,000 Capital Outlay 317,325 $1,490,000 $2,365,000 $4,100,000 $10,134,000 Total Operating Expenditures $10,175,330 $4,680,455 $6,029,324 $7,906,272 $14,071,276 Revenues Over/(Under) Expenses 597,999 9,927,665 4,803,602 3,590,320 (1,632,966) Other Financing Sources (Uses) Transfers Out (1,180,332) (8,724,243) (8,531,729) (4,520,000) (3,350,000) Incentives (393,221) (817,918) (1,342,515) (2,500,000) (2,000,000) Total Other Financing Sources ($1,573,553) ($9,542,161) ($9,874,244) ($7,020,000) ($5,350,000) Net Change in Fund Balance (975,554) 385,504 (5,070,642) (3,429,680) (6,982,966) Beginning Fund Balance $19,155,487 $18,179,933 $18,565,437 $13,494,795 $10,065,116 Ending Fund Balance $18,179,933 $18,565,437 $13,494,795 $10,065,116 $3,082,150 70 FY 2017 ADOPTED BUDGET PROPERTY TAX COLLECTIONS OVERVIEW The City's property tax is levied each October 1 on the certified assessed value as of January 1 for all real and personal property. The appraisal of property is the responsibility of the Brazoria, Fort Bend and Harris County Central Appraisal Districts, as the City lies in all three Districts. Appraisals may be challenged through various appeals and, if necessary, legal action. The City is permitted by the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general government services including the payment of principal and interest on general obligation long-term debt. In tax year 1998, TIRZ #2 was formed, which is the Shadow Creek Ranch development. Taxes assessed and collected by the participating entities over and above the base value of the property upon creation of the TIRZ are deposited to the benefit of the TIRZ to support improvements within the TIRZ. The City contracts with Brazoria County for the billing and collection of property taxes. The budget, as filed, is based on certified 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 totals $9,733,317,309, a 14.8% or $1.3 billion increase over the current adjusted tax roll. New value added to the roll totals $379,164,552. In 1998, when the TIRZ was formed, the base property value for the City was $7.1 million. Today, sitting at $2.1 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 $2,109,639,316, a 3% or $61,607,556 increase over the current adjusted roll. 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 FY 2017, the administrative fee totals $9.1 million, shown as Charges for Services versus Property Taxes in the City's General Fund. The tax rate for the adopted budget totals $0.6812 per $100 of valuation, a $0.0241 cent total decrease from the fiscal year 2016 tax rate of $0.7053. This decrease represents a reduction of $0.0428 to the rate dedicated for debt service, from the current $0.4828 to $0.4400, and an increase to General Fund operations, from $0.2225 to $0.2412. The adopted fiscal year 2017 tax rate takes the City's property tax rate above the rollback rate of $0.6566. 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 2.85 cents since 2007. Based on these assumptions and overall collection rate of 99.1%, a tax levy of $14,241,525 will be conveyed to the TIRZ and $51,465,103 will remain with the City. 71 CITY OF PEARLAND TAX COLLECTIONS FY 2016 FY 2016 FY 2016 FY 2017 BUDGETED ADJUSTED YEAR END CERTIFIED LEVY LEVY PROJECTION ROLL REVENUES City Levy-100% 44,447,621 45,845,503 44,670,687 51,932,495 TIRZ- 100% 14,664,739 14,444,768 14,314,961 14,370,863 TOTAL at 100% 59,112,360 60,290,271 58,985,648 66,303,358 City Collection Rate 99.1% ALLOCATION: General Fund 14,020,110 14,464,255 14,000,000 18,222,817 Debt Service Fund 30,427,511 31,381,248 30,670,687 33,242,286 TIRZ 14,664,739 14,444,768 14,314,961 14,241,525 TOTAL ALLOCATION 59,1 12,360 60,290,271 58,985,648 65,706,628 Budgeted Adjusted Certified Tax Year 2016 2016 2017 Total Taxable Value 8,307,943,896 8,477,707,706 9,733,317,309 Less:TIRZ Added Value 1,901,830,936 2,048,031,760 2,109,639,316 Taxable Value to City 6,406,112,960 6,429,675,946 7,623,677,993 Tax Rate per$100 _ General Fund 0.2225 0.2412 Debt Service Fund 0.4828 0.4400 Total Tax Rate 0.7053 0.6812 Tax Rate Split General Fund 31.55% 35.41% Debt Service Fund 68.45% 64.59% Total 100.00% 100.00% 72 TAX RATE DISTRIBUTION CURRENT FOR FISCAL YEAR 2015-2016 PROPOSED FOR FISCAL YEAR 2016-2017 FISCAL YEAR GENERAL FUND DEBT SERVICE TOTAL TAX RATE 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 2017 0.2412 0.4400 0.6812 Notes: 1. The maximum tax rate for the City of Pearland is $2.50 per$100 assessed valuation. Within this $2.50 maximum there is no legal limit upon the amount of taxes,which maybe levied for debt. 2. The City does not have legal debt margin as the law does not mandate any debt limit on the City. Tax Rate Distribution 0.80 070 i 0.60 I I I • ' I 1 1 II 0.50 uI ! I 0.40 - 0.30 - -- in in 0 0 0 0 0 0 N M M et el '2.. 0 0.20 - M O v - - G -. _ © -. . O - O ___. . O --- -- N v. O O O O M O O 0.10 - -- . - _ - - -- ---- 0.00 - , , 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ❑DEBT SERVICE ■GENERAL FUND 73 ASSESSED VALUATION, TAX LEVIED AND TAXES COLLECTED TEN YEAR SUMMARY OF ASSESSED VALUATION WITH PROJECTED FOR FISCAL YEAR 2015-2016 AND PROPOSED FOR FISCAL YEAR 2016-2017 %OF NET CURRENT CURRENT DELINQUENT FISCAL YEAR TAX YEAR ASSESSED TAX TOTAL TAX TAXES TAX VALUATION RATE TAX LEVY COLLECTIONS COLLECTED COLLECTION 2006-2007 2006 $4,412,821,949 0.6527 $28,819,229 $ 28,235,276 97.97% $ 276,124 2007-2008 2007 $5,389,790,165 0.6526 $35,035,569 $ 34,461,652 98.36% $ 310,112 2008-2009 2008 $5,904,826,560 0.6526 $38,368,354 $ 37,820,603 98.57% $ 592,199 2009-2010 2009 $6,269,047,937 0.6526 $41,081,407 $ 40,590,543 98.81% $ 274,230 2010-2011 2010 $6,331,723,029 0.6651 $41,968,046 $ 41,594,389 99.11% $ 318,250 2011-2012 2011 $6,369,626,981 0.6851 $43,441,792 $ 43,110,373 99.24% $ 201,453 2012-2013 2012 $6,537,976,038 0.7051 $45,850,625 $ 45,509,522 99.26% $ 362,129 2013-2014 2013 $7,001,455,019 0.7051 $49,096,473 $ 48,802,720 99.40% $ 262,967 2014-2015 2014 $7,582,387,082 0.7121 $53,463,919 $ 52,744,990 98.66% $ 187,075 2015-2016(I) 2015 $8,477,707,706 0.7053 $60,290,271 $ 58,985,648 97.84% $ 267,000 2016-2017(2) 2016 $9,733,317,309 0.6812 $61,129,847 $ 60,579,679 99.10% $ 222,000 (1) Projected collections (2) Projected levy and collections Commercial vs. Residential Tax Net Assessed Value as % of Total $10 $9 $8 $7 29% 29% 29% $6 30% co = 31% 30% 28% 28% $5 28% 30% $4 31% $3 $2 $1 $0 ,yo ,o do ,19 (y ,yo •Residential o Commercial 74 NET ASSESSED VALUATION $10.00 •.7 $9.00 - S848 $8.00 $7 58 57.00 $7.00 - $6.54 $627 $633 $637 cn $6.00 $5.90 c —.0 0 $5.39 m c Pr $5.00 $4.41 $4.00 - $3.00 $2.00 $1.00 i , $0.00 . , . • 001 0� 000 0^O ON' ON 9. 0,�3 '`R ^� �_ ��y1 O Co ON ON 1) Net assessed valuation 2) Certified Value for tax year 2016 --.. 75 _3 PRINCIPAL TAXPAYERS FISCAL YEAR 2015-2016 %OF ASSESSED VALUE ASSESSED TAXPAYERS BUSINESS OF PROPERTY VALUE 1 Pearland Town Center LP Retail Center Management $ 81,224,456 0.83% 2 HCA Healthcare Corp. Hospital $ 69,698,780 0.72% 3 Weatherford US LP Oil Field Service, Rental &Fishing $ 60,419,650 0.62% 4 Centerpoint Energy Inc. Utility Company $ 59,511,450 0.61% 5 AmREIT SPF Shadow Creek LP Retail Center Management $ 54,172,342 0.56% 6 MAR Shadow Creek LP Multi-Family Residential $ 53,984,940 0.55% 7 MHICompressor Manufacturing $ 40,124,109 0.41% 8 12400 Shadow Creek Parkway LLC Multi-Family Residential $ 35,701,460 0.37% 9 Discovery Shadow Creek Owner Multi-Family Residential $ 34,401,370 0.35% 10 Shadow Kirby LTD PTRN Retail Center Management $ 33,000,000 0.34% TOTAL PRINCIPAL TAXPAYERS $ 522,238,557 5.37% ALL OTHERS $ 9,211,078,752 94.63% TOTAL $ 9,733,317,309 100.00% SOURCES:Brazoria and Harris Counties Tax Assessor Collector TOP TEN TAXPAYERS $90,000,000 $80,000,000 - $70,000,000 - $60,000,000 - $50,000,000 - $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- , R e co Q ` � c`\, \ \ � �, �e G° J5 °`°\ e `�e � G �� rah G` Gccs i e ,S0 °a so 44' Qea�\�c �GP cf act $- aa�G e5 re 5r ao < 5r ,4° P boo o\ 76 DEBT SERVICE FUND SUMMARY FY 2017 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 $0.4400 per $100 assessed valuation, a $0.0428 decrease from the FY 2016 debt service tax rate, to meet fiscal year 2017 obligations. In fiscal year 2016, the City refunded $17.8 million in existing bonds, comprised of four different issues, to take advantage of lower interest rates in order to achieve interest cost savings. The refunding saved $2.67 million in interest over 17 years or savings of $156,000 annually. The net present value savings of the refunding totaled $2.07 million or 11.668%, 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 $33,242,286 in current property taxes at a 99.1% collection rate. Revenues include $838,710 from the University of Houston-Clear Lake System for debt service associated with the construction of the University of Houston-Clear Lake Pearland Campus, which they occupy. Revenues also include transfers from the Water-Sewer Fund in the amount of $450,977 for some of the debt associated with water/sewer activities. Expenditures total $36,107,359 for fiscal year 2017 and include $27,508,322 in bond principal and interest payments. Debt (General Obligation and Certificates of Obligation) anticipated to be issued includes $27.023 million in fiscal year 2017 pursuant to the City's capital improvement program. After the General Obligation issuances in 2017, there will remain $26.64 million in bonds yet to be issued at September 30, 2017 out of the $162.0 million voted in 2007. Total principal outstanding paid from property taxes at September 30, 2017 is anticipated to be $313 million (this includes new debt but excludes property tax backed debt paid by the water/sewer fund). Net debt per capita is $2,617 at September 30, 2017, down from $2,744 in fiscal year 2016, 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 21%, while population has grown 47.6% during the same time period, from 79,322 to projected 117,100 in fiscal year 2017. 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 $313 million at September 30, 2017, an 82% 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 $6,645,152, an increase of $1,852,777 from fiscal year 2015 actuals, as newer districts continue to develop as well as increase in valuations. With the FY 2016 bond refunding, the FY 2016 Debt Service ending fund balance at September 30, 2016 is projected to be $6,410,451 and is $3,324,788 over the reserve policy of $3,085,662, or 10% of expenditures. The City will pay off short-term notes in FY 2017 for an estimated ending fund balance of$5,277,880 and an over policy amount of $1,667,144. The City plans to continue a draw down of fund balance in FY 2018 and 2019 by using reserves on hand in order to minimize the impact to the taxpayer. A tax rate increase may be needed in fiscal years 2019 and 2020 due to the continued issuance of voter approved bonds to complete capital projects as well as a potential 2019 new bond referendum of approximately $70 million currently incorporated into the forecast with the first issuance in 2019. 77 DEBT SERVICE FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 Original Year End Adopted Actual Budget Amended Budget OPERATING REVENUES Property Taxes $ 28,757,970 $ 30,293,599 $ 31,045,687 $ 33,532,286 Miscellaneous 816,491 786,039 1,220,866 888,470 Transfers 613,411 607,997 797,199 554,032 Bond Proceeds 54,773,103 29,325,323 TOTAL 84,960,975 31,687,635 62,389,075 34,974,788 OPERATING EXPENDITURES Rebates &Miscellaneous 4,824,335 6,198,194 5,497,146 6,687,537 Bond Payment 78,442,789 24,400,373 54,585,454 27,508,322 Short-Term Note 1,196,172 929,640 929,640 1,911,500 TOTAL 84,463,296 31,528,207 61,012,240 36,107,359 REVENUES OVER(UNDER)EXPENDITURES 497,679 159,428 1,376,835 (1,132,571) FUND BALANCE-BEGINNING 4,535,937 4,988,996 5,033,616 6,410,451 FUND BALANCE-ENDING $ 5,033,616 $ 5,148,424 $ 6,410,451 $ 5,277,880 Reserve 10% 2,968,885 3,152,821 3,085,662 3,610,736 Over Policy 2,064,732 1,995,603 3,324,788 1,667,144 78 DEBT SERVICE FUND REVENUES FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 Original Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Amended Budget 200-000-000-3000.010 CURRENT TAXES 28,435,441 29,971,099 30,670,687 33,242,286 200-000-000-3000.020 DELINQUENT TAXES 128,725 147,000 180,000 150,000 200-000-000-3000.030 PENALTY&INTEREST 193,804 175,500 195,000 140,000 *TAXES 28,757,970 30,293,599 31,045,687 33,532,286 200-000-000-3600.010 INTEREST INCOME 55,841 36,000 49,000 49,760 200-000-000-3600-040 UNREALIZED CAP GAIN (LOSS) (8,064) 6,106 200-000-000-3800.270 MISCELLANEOUS 768,715 750,039 1,165,760 838,710 *MISCELLANEOUS 816,491 786,039 1,220,866 888,470 200-000-000-3900 FROM FUND 600 456,567 453,837 453,837 450,977 200-000-000-3900 FROM FUND 100 156,844 154,160 171,849 103,055 200-000-000-3900 FROM FUND 380 171,513 *GRANT,ISSUANCE,TRANSFER 613,411 607,997 797,199 554,032 200-000-000-4000.010 BOND PROCEEDS 47,165,000 27,080,000 200-000-000-4000.020 PREM/DISCT ON BONDS 7,608,103 2,245,323 *BOND PROCEEDS 54,773,103 29,325,323 TOTAL 84,960,975 31,687,635 62,389,075 34,974,788 79 DEBT SERVICE FUND EXPENDITURES FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 Original Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Amended Budget 200-150-900-5890.010 ARBITRAGE FEES 31,960 36,385 36,385 42,385 *MISCELLANEOUS SERVICES 31,960 36,385 36,385 42,385 200-150-900-5500.020 MUD 17 578,965 641,841 580,704 724,838 200-150-900-5500.030 MUD 18 561,580 649,423 649,423 711,420 200-150-900-5500.040 MUD 19 650,040 733,309 694,613 814,070 200-150-900-5500.050 MUD 23 304,439 324,135 307,591 360,226 200-150-900-5500.060 MUD 26 935,389 928,439 987,176 1,089,585 200-150-900-5500.070 MUD 28 302,277 467,647 440,244 687,550 200-150-900-5500.080 MUD 34 378,202 486,649 455,833 633,905 200-150-900-5500.010 BRAZ/FT BEND MUD 1 980,502 1,766,189 1,213,164 1,365,830 200-150-900-5500.090 MUD 35 92,315 126,559 94,395 174,778 200-150-900-5500.095 MUD 509 8,666 37,618 37,618 82,950 - *MUD REBATES 4,792,375 6,161,809 5,460,761 6,645,152 200-150-900-5800.010 PRINCIPAL 11,275,000 12,375,000 12,535,000 13,410,000 200-150-900-5850.010 INTEREST 12,382,763 12,009,798 11,882,835 12,577,322 200-150-900-5890.020 FISCAL AGENT FEES 10,575 15,575 12,000 21,000 200-150-900-5875.010 ISSUANCE COSTS 471,161 315,619 200-150-900-5809.040 PAYMENT TO ESCROW AGENT 54,303,290 29,840,000 200-150-900.5890.050 DEFEASANCE 1,500,000 *BOND PAYMENT 78,442,789 24,400,373 54,585,454 27,508,322 200-150-900-5800.020 PRINCIPAL 102,032 200-150-900-5850.130 INTEREST 2,846 200-150-900-5800.030 PRINCIPAL-OSSI/FY2009 308,188 319,320 319,320 163,960 200-150-900-5850.140 INTEREST 25,601 14,469 14,469 2,935 200-150-900-5800.040 PRINCIPAL-FY2010 60,423 61,896 61,896 63,404 200-150-900-5850.150 INTEREST 4,135 2,662 2,662 1,155 200-150-900-5800.050 PRINCIPAL-FY2011 124,069 126,772 126,772 261,825 200-150-900-5850.160 INTEREST 10,308 7,677 7,677 7,074 200-150-900-5800.060 PRINCIPAL-FY2012 267,626 108,842 108,842 271,610 200-150-900-5850.170 INTEREST 7,500 4,558 4,558 5,760 200-150-900-5800.070 PRINCIPAL-FY2013 252,274 257,438 257,438 1,083,539 200-150-900-5850.180 INTEREST 31,170 26,006 26,006 50,238 *SHORT TERM NOTE 1,196,172 929,640 929,640 1,911,500 TOTAL 84,463,296 31,528,207 61,012,240 36,107,359 80 GOVERNMENTAL DEBT MATURITY SCHEDULE AS OF 9/30/2016 GENERAL LONG-TERM DEBT* Fiscal Year Principal Interest Total 2016-2017 13,410,000 12,577,322 25,987,322 2017-2018 14,015,000 11,678,816 25,693,816 2018-2019 16,690,000 11,142,849 27,832,849 2019-2020 17,190,000 10,539,774 27,729,774 2020-2021 17,780,000 9,881,023 27,661,023 2021-2022 18,340,000 9,186,163 27,526,163 2022-2023 18,980,000 8,437,295 27,417,295 2023-2024 19,580,000 7,613,925 27,193,925 2024-2025 20,370,000 6,766,181 27,136,181 2025-2026 20,970,000 5,909,693 26,879,693 2026-2027 21,740,000 5,008,678 26,748,678 2027-2028 22,495,000 4,126,593 26,621,593 2028-2029 23,245,000 3,262,210 26,507,210 2029-2030 15,435,000 2,510,127 17,945,127 2030-2031 15,960,000 1,868,308 17,828,308 2031-2032 16,565,000 1,180,515 17,745,515 2032-2033 6,235,000 702,275 6,937,275 2033-2034 6,380,000 444,384 6,824,384 2034-2035 3,840,000 226,597 4,066,597 2035-2036 2,455,000 105,672 2,560,672 2036-2037 620,000 43,938 663,938 2037-2038 640,000 14,800 654,800 TOTAL 312,935,000 113,227,138 426,162,138 Series Name Principal Amount Permanent Improvement and Refunding Bonds Series 2007 36,180,000 Certificates of Obligation Series 2007 7,810,000 Permanent Improvement Bonds Series 2008 10,595,000 Certificates of Obligation Series 2008 510,000 Permanent Improvement and Refunding Bonds Series 2009" 14,160,000 Certificates of Obligation Series 2009 7,130,000 Certificates of Obligation Series 2009-A 8,305,000 Permanent Improvement Bonds Series 2010A 10,245,000 Permanent Improvement and Refunding Series 2010E 330,000 Permanent Improvement Bonds Series 2011 4,750,000 Certificates of Obligation Series 2011 1,045,000 BC MUD 4 Series 2011 520,000 Permanent Improvement Refunding Bonds Series 2012" 40,935,000 Permanent Improvement Bonds Series 2013 8,450,000 Certificates of Obligation Series 2013 2,500,000 Permanent Improvement and Refunding Bonds Series 2014 38,140,000 Certificates of Obligation Series 2014 4,160,000 Permanent Improvement and Refunding Bonds Series 2015 47,165,000 Permanent Improvement Bonds Series 2015 8,070,000 Certificates of Obligation Series 2015 4,615,000 Permanent Improvement and Refunding Bonds Series 2015A 10,050,000 Permanent Improvement and Refunding Bonds Series 2016A 33,275,000 Certificates of Obligation Series 2016 13,995,000 TOTAL 312,935,000 Does not include new debt anticipated to be issued in 2017 and in future years. *Excludes refunding portion associated with Water/Sewer. 81 GOVERNMENTAL DEBT TO MATURITY AS OF 9130/2016 $30,000,000 - $25,000 000 - $201000,000 - 1or p r r— $15.000,000 - $10,000,000 - ir $5,000,000 - $0 , , , - .r—,L--., - �,� '(‘ oa o^g oti o`> oti� otio o`IY` o`L,<' o`19 oti o`ti� oti o`�° `b' 0`J0' o� 0`bt' 0`)4' 5 0`5� 05� ti `1 ti ti 9 ' ti 9 ti ' ti ti ti '1 ti ti ti ti ' ti ' ti PnncipaI ❑Interest Ratio of Net Bonded Debt to Assessed Net Bonded Debt per Capita Valuation 3,100 0.0500 0.0450 3,000 0.0400 2,900 0.0350 0.0300 2,800 0.0250 2,700 0.0200 0.0150 2,600 0.0100 2,500 0.0050 0.0000 2,400 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 82 GENERAL DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/17 3/1/2017 Series 2007 Permanent Improvement 69,640,000 2,460,000 840,428 3,300,428 9/1/2017 and Refunding Bonds 778,928 778,928 Fiscal Year Total 2,460,000 1,619,356 4,079,356 33,720,000 3/1/2017 Series 2007 Certificates of 23,250,000 280,000 139,763 419,763 9/1/2017 Obligation 132,413 132,413 Fiscal Year Total 280,000 272,175 552,175 7,530,000 3/1/2017 Series 2008 Permanent Improvement 22,835,000 340,000 247,081 587,081 9/1/2017 Bonds 238,581 238,581 Fiscal Year Total 340,000 485,663 825,663 10,255,000 3/1/2017 Series 2008 Certificates of 9,000,000 160,000 10,200 170,200 9/1/2017 Obligation 7,000 7,000 Fiscal Year Total 160,000 17,200 177,200 350,000 3/1/2017 Series 2009 Permanent Improvement 14,580,000 435,000 305,071 740,071 9/1/2017 and Refunding Bonds* 294,196 294,196 Fiscal Year Total 435,000 599,268 1,034,268 13,725,000 3/1/2017 Series 2009 Certificates of 8,520,000 162,851 162,851 9/1/2017 Obligation 245,000 162,851 407,851 Fiscal Year Total 245,000 325,703 570,703 6,885,000 3/1/2017 Series 2009A Certificates of 12,145,000 640,000 158,083 798,083 9/1/2017 Obligation 143,683 143,683 Fiscal Year Total 640,000 301,765 941,765 7,665,000 3/1/2017 Series 2010A Permanent Improvement 12,415,000 390,000 192,276 582,276 9/1/2017 Bonds 186,426 186,426 Fiscal Year Total 390,000 378,703 768,703 9,855,000 3/1/2017 Series 2010B Permanent Improvement 1,630,000 240,000 4,950 244,950 9/1/2017 Refunding Bonds 1,350 1,350 Fiscal Year Total 240,000 6,300 246,300 90,000 3/1/2017 Series 2011 Permanent Improvement 5,400,000 165,000 90,466 255,466 9/1/2017 Bonds 87,166 87,166 Fiscal Year Total 165,000 177,631 342,631 4,585,000 3/1/2017 Series 2011 Certificates of 2,095,000 205,000 10,920 215,920 9/1/2017 Obligation 8,778 8,778 Fiscal Year Total 205,000 19,698 224,698 840,000 3/1/2017 Series 2011 BC MUD 2,640,000 130,000 8,288 138,288 9/1/2017 Refunding Bonds* 6,500 6,500 Fiscal Year Total 130,000 14,788 144,788 390,000 3/1/2017 Series 2012 Permanent Improvement 43,575,000 2,625,000 720,550 3,345,550 9/1/2017 Refunding Bonds* 668,050 668,050 Fiscal Year Total 2,625,000 1,388,600 4,013,600 38,310,000 3/1/2017 Series 2013 Permanent 9,315,000 305,000 178,834 483,834 9/1/2017 Improvement Bonds 172,734 172,734 Fiscal Year Total 305,000 351,568 656,568 8,145,000 83 GENERAL DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/17 3/1/2017 Series 2013 Certificates 2,745,000 85,000 54,394 139,394 9/1/2017 of Obligation 53,119 53,119 Fiscal Year Total 85,000 107,513 192,513 2,415,000 3/1/2017 Series 2014 Permanent Improvement 40,410,000 1,020,000 822,741 1,842,741 9/1/2017 Refunding Bonds* 807,441 807,441 Fiscal Year Total 1,020,000 1,630,181 2,650,181 37,120,000 3/1/2017 Series 2014 Certificates 4,625,000 230,000 60,709 290,709 9/1/2017 of Obligation 58,409 58,409 Fiscal Year Total 230,000 119,119 349,119 3,930,000 3/1/2017 Series 2015 Permanent Improvement 47,165,000 320,000 1,048,459 1,368,459 9/1/2017 Refunding Bonds 1,045,259 1,045,259 Fiscal Year Total 320,000 2,093,719 2,413,719 46,845,000 3/1/2017 Series 2015 Permanent Improvement 8,495,000 425,000 116,163 541,163 9/1/2017 Bonds 111,913 111,913 Fiscal Year Total 425,000 228,075 653,075 7,645,000 3/1/2017 Series 2015 Certificates 4,860,000 245,000 66,950 311,950 9/1/2017 of Obligation 64,500 64,500 Fiscal Year Total 245,000 131,450 376,450 4,370,000 3/1/2017 Series 2015A Permanent Improvement 10,210,000 945,000 141,938 1,086,938 9/1/2017 Refunding Bonds 132,488 132,488 Fiscal Year Total 945,000 274,425 1,219,425 9,105,000 3/1/2017 Series 2016A Permanent Improvement 33,275,000 820,000 967,388 1,787,388 9/1/2017 Refunding Bonds _ - 636,725 636,725 Fiscal Year Total 820,000 1,604,113 2,424,113 32,455,000 3/1/2017 Series 2016 Certificates 13,995,000 700,000 262,388 962,388 9/1/2017 of Obligation 167,925 167,925 Fiscal Year Total 700,000 430,313 1,130,313 13,295,000 TOTAL 402,820,000 13,410,000 12,577,322 25,987,322 299,525,000 *Excludes Water/Sewer Component Does not include new debt anticipated to be issued. 84 GENERAL DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET Date Amount Issued Amount Outstanding Description Rate Maturity Issued As of 9/30/17 Annual Requirements Permanent Imp.and 4%,4.375%,4.5%,4.75%, 2007 69,640,000 33,720,000 3/1/2017 2,460,000 Principal Refunding Bonds 5%,5.5%,4.6% 2034 3/1/2017 840,428 Interest Series 2007 9/1/2017 778,928 Interest Certificates of 3.25%,4.25%,5%,5.25% 2007 23,250,000 7,530,000 3/1/2017 280,000 Principal Obligation 4.30% 2034 3/1/2017 139,763 Interest Series 2007 9/1/2017 132,413 Interest Permanent Imp.Bonds 4%,4.5%,4.625%,5% 2008 22,835,000 10,255,000 3/1/2017 340,000 Principal Series 2008 5.25%,5.5%,4.78% 2034 3/1/2017 247,081 Interest 9/1/2017 238,581 Interest Certificates of 3.75%,3.875%,4%,4.125% 2008 9,000,000 350,000 3/1/2017 160,000 Principal Obligation 4.25%,4.3%,4.375%,4.4% 2034 3/1/2017 10,200 Interest Series 2008 4.5%,5%,4.9% 9/1/2017 7,000 Interest Permanent Imp.and 2.0%,2.50%,2.75%,3.25%,3.4 2015 14,580,000 13,725,000 3/1/2017 435,000 Principal Refunding Bonds 3.6%, 3.7%,3.75%,3.85%,4.0°i 2034 3/1/2017 305,071 Interest Series 2009* 4.1%,4.2%,4.5%,5.0% 9/1/2017 294,196 Interest Certificates of 4.5%,4.65%,4%,5%, 2009 8,520,000 6,885,000 3/1/2017 162,851 Interest Obligation 5.25%,5.5%,2.25%,2.5%, 2034 3/1/2017 245,000 Principal Series 2009 3%,3.5%,3.75%,4.1%, 9/1/2017 162,851 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 7,665,000 3/1/2017 640,000 Principal Obligation 3.85%,3.75%,3.7%,3.6% 2029 3/1/2017 158,083 Interest Series 2009A 3.25%,3.4%,2.75%,2.5% 9/1/2017 143,683 Interest 2.25%,2.0%,3.78%,4.5% Permanent Imp.Bonds 2.0%,3.0%,3.25%,3.50% 2011 12,415,000 9,855,000 3/1/2017 390,000 Principal Series 2010A 3.625%,3.75%,3.90%,4.0% 2035 3/1/2017 192,276 Interest 4.25%,3.89% 9/1/2017 186,426 Interest Permanent Imp.Bonds 2.0%, 3.0%,3.25%,3.50% 2011 1,630,000 90,000 3/1/2017 240,000 Principal Refunding Series 3.625%,3.75%,3.90%,4.0% 2018 3/1/2017 4,950 Interest 2010E 4.25%,3.05% 9/1/2017 1,350 Interest General Obligation 2.125%,3.0%,3.25%,3.5% 2011 5,400,000 4,585,000 3/1/2017 165,000 Principal Series 2011 4.0%,4.125%,3.84% 2036 3/1/2017 90,466 Interest 9/1/2017 87,166 Interest Certificates of 2.09% 2011 2,095,000 840,000 3/1/2017 205,000 Principal Obligation 2021 3/1/2017 10,920 Interest Series 2011 9/1/2017 8,778 Interest BC MUD4 2.5%,2.75%, 3.0%,3.5% 2011 2,640,000 390,000 3/1/2017 130,000 Principal Series 2011 4.0%,4.125%,4.5%,4.7% 2032 3/1/2017 8,288 Interest 4.8%,5.0%,4.42% 9/1/2017 6,500 Interest Permanent Imp.Bonds 3.0%,4.0%,5.0%,3.44% 2012 43,575,000 38,310,000 3/1/2017 2,625,000 Principal Refunding Series 2029 3/1/2017 720,550 Interest 2012* 9/1/2017 668,050 Interest 85 GENERAL DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET Date Amount Issued Amount Outstanding Description Rate Maturity Issued As of 9/30/17 Annual Requirements Permanent Imp.Bonds 3.0%,4.0%,4.125%,4.25%, 2013 9,315,000 8,145,000 3/1/2017 305,000 Principal Series 2013 4.375%,4.4%,4.5%,4.625% 2038 3/1/2017 178,834 Interest 4.29% 9/1/2017 172,734 Interest Certificates of 3.0%,4.0%,4.25%,4.375%, 2013 2,745,000 2,415,000 3/1/2017 85,000 Principal Obligation Series 2013 4.5%,4.625%,5.0%,4.05% 2038 3/1/2017 54,394 Interest 9/1/2017 53,119 Interest Permanent Imp.Bonds 3.25%,3.5%,3.625%,3.75%, 2015 40,410,000 37,120,000 3/1/2017 1,020,000 Principal Series 2014 3.875%,4.0%,4.1%,4.125% 2034 3/1/2017 822,741 Interest 4.2%,4.25%,4.3%,4.5%, 5.0% 9/1/2017 807,441 Interest Certificates of 2.0%,3.0%,3.125%,3.25%, 2014 4,625,000 3,930,000 3/1/2017 230,000 Principal Obligation Series 2014 3.375%,4.0% 2038 3/1/2017 60,709 Interest 9/1/2017 58,409 Interest Permanent Imp.Bonds 2.0%,3.0%,3.125%,3.25%,4.0%, 2015 47,165,000 46,845,000 3/1/2017 320,000 Principal Refunding Series 5.0% 2034 3/1/2017 1,048,459 Interest 2015 9/1/2017 1,045,259 Interest Permanent Imp.Bonds 2.0%,2.5%,3.0%,3.2%, 3.25%, 2016 8,495,000 7,645,000 3/1/2017 425,000 Principal Series 2015 4.00% 2035 3/1/2017 116,163 Interest 9/1/2017 111,913 Interest Certificates of 2.0%,2.5%,3.0%,3.125%, 2016 4,860,000 4,370,000 3/1/2017 245,000 Principal Obligation Series 2015 3.25%,3.375%,4.0% 2035 3/1/2017 66,950 Interest 9/1/2017 64,500 Interest Permanent Imp.Bonds 2015 10,210,000 9,105,000 3/1/2017 945,000 Principal Refunding Series 2029 3/1/2017 141,938 Interest 2015A 9/1/2017 132,488 Interest Permanent Imp.Bonds 2016 33,275,000 32,455,000 3/1/2017 820,000 Principal Refunding Series 2036 3/1/2017 967,388 Interest 2016A 9/1/2017 636,725 Interest Certificates of 2016 13,995,000 13,295,000 3/1/2017 700,000 Principal Obligation Series 2016 2036 3/1/2017 262,388 Interest 9/1/2017 167,925 Interest TOTAL 402,820,000 299,525,000 25,987,322 *Excludes Water/Sewer Component Does not include new debt anticipated to be issued in 2017 and in future years. 86 GENERAL FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The General Fund provides the financing for all of the City of Pearland's basic services except water, sewer and solid waste, which is accounted for through the Water& Sewer and Solid Waste Funds. The principal sources of revenue include property taxes, sales taxes, franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures are comprised of five major functional areas: Public Works, Public Safety, General Government, Community Services, and Parks and Recreation. Public Safety provides all emergency services to the citizens of Pearland and accounts for 53.6% 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 547 full-time employees and 151 part-time employees including paid volunteers, utilities, fuel, park and right-of-way maintenance, and street lighting,just to name a few. FY2016 FY2016 FY 2017 FY2015 ORIGINAL YEAR END ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES Property Taxes 13,261,422 14,190,297 14,292,773 18,502,590 Sales and Use Taxes 19,073,940 20,594,329 19,746,556 20,526,818 Franchise Fees 6,663,788 7,003,454 6,770,450 6,930,000 Licenses& Permits 4,550,094 3,967,489 4,913,295 5,183,830 Fines& Forfeitures 2,968,634 2,919,450 2,899,950 2,902,500 Charges for Service 13,442,538 15,108,928 14,649,885 15,250,614 Miscellaneous 1,824,774 1,659,083 3,032,855 1,590,153 Transfers in 3,580,712 3,448,391 3,167,622 3,263,272 Other Financing Sources 574,049 900,000 1,800,000 100,000 TOTAL REVENUES 65,939,951 69,791,421 71,273,386 74,249,777 EXPENDITURES General Government 9,552,291 11,430,573 12,359,756 12,255,286 Public Safety 33,692,260 38,631,959 40,099,528 40,300,860 Community Services 3,163,999 3,304,003 3,517,534 3,577,288 Public Works 10,592,610 11,806,888 12,976,333 12,912,065 Parks & Recreation 5,706,921 6,744,751 6,711,925 6,205,747 Total Operating Expenditures 62,708,081 71,918,174 75,665,076 75,251,246 Transfers Out 1,332,134 1,354,768 2,554,768 1,202,789 TOTAL EXPENDITURES 64,040,215 73,272,942 78,219,844 76,454,035 Revenues Over/(Under) Expenses 1,899,736 (3,481,521) (6,946,458) (2,204,258) Beginning Fund Balance 19,454,501 15,559,633 21,354,237 14,407,779 Ending Fund Balance $21,354,237 $12,078,112 $14,407,779 $12,203,521 Policy-2 months Recurring Oper. 11,168,568 11,199,984 11,582,786 Fund Balance over Policy 909,544 3,207,795 620,735 87 GENERAL FUND REVENUE AND EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET Overview— Fund Balance The City is anticipated to end fiscal year (FY) 2016 on September 30, 2016, with a fund balance of $14,407,779, $3,207,795 over fund balance policy. The proposed FY 2017 fund balance over policy is reduced to $620,735, with the proposed ending fund balance of$12,203,521 for FY 2017. Revenues Revenues in FY 2017 are anticipated to exceed those in 2016 in all categories except one-time revenues in miscellaneous and other financing sources. Overall, the increase in total revenues from FY 2016 is 4.2%. Property tax, sales tax and charges for services are the three major revenue sources for the City. The preliminary average property values increased in 2015 by 15.75%, resulting in an increase in property tax revenues as a percent of total revenues, from 20% in FY 2016 to 25% in FY 2017, and a decrease in the property tax rate. The FY 2016 sales tax was increased by 4%, as current sales tax through July is 4% higher than the previous year, and the City continues to experience commercial and industrial growth. Charges for include TIRZ administration fees, which are increasing by$818,658 as a result of property values increasing. Miscellaneous and Other Financial Resources are decreasing as the City received a payment from the Texas Department of Transportation for reimbursement for Cullen and Dixie Farm Road in FY 2016. The City received $1.8 million in capital lease proceeds that will be reduced to $100,000 in FY 2017. All other revenue sources have minor changes. Total Revenues FY 2017 Adopted $74,249,777 FY 2016 Amended $71,273,286 Change/Increase $ 2,976,491 4.1% increase Expenditures Fiscal year 2017 operating expenditures are $76,454,035, 2.3% higher than FY 2016. This is mainly due to funding one-time expenditures this fiscal year from the 2015 fund-balance-over-policy, which increased the expenditures for FY 2016 by$3,700,644. Salaries and benefits are the major expenditure for FY 2017, at 68% of the total. Major changes in the General Fund are described in the Highlights section. Public Safety is increasing with the addition of four new Police Officers and two shared vehicles. And an Emergency Management Coordinator is added in the Fire Department to ensure the City is prepared for emergency response. General Government is decreasing with the major purchases and implementation for the replacement of the major financial data system occurring in FY 2015 and FY 2016. A Risk Manager has been added in Human Resources to manage and monitor the property/liability and workers' compensation for the City. Community Services is increasing with the conversion of two part-time positions to full-time and three new full-time positions. Public Works is decreasing due to a reduction in the streets rehabilitation program. Parks & Recreation is decreasing as the management of the Recycling Center was transferred to Keep Pearland Beautiful (KPB), and re-organization. A 3% increase in salary is included for all personnel, to support recruitment and retention efforts. This is in addition to the annual 3% step increases for Certified Police Officers. The employee medical insurance and premiums did not change from FY 2016 to FY 2017; however, a portion of the City's medical premium payments, $60,008, is being passed on to the employee for FY 2017 as a result of changing dependent coverage from 70%to 68%. Total Expenditures FY 2017 Adopted $76,454,035 FY 2016 Amended $78,219,844 Change (Decrease) $ 1,765,774 -4.2% decrease 88 GENERAL FUND SUMMARY FY 2017 ADOPTED BUDGET TOTAL REVENUES -$74.3 M Other Sources 0% Miscellaneous 2% Transfers 4% Fines & Forfeitures 4% License & Permits 7% Franchise Fees 10% Charges for Service 21% Property Taxes 25% Sales Taxes 27% • 0% 5% 10% 15% 20% 25% 30% I I I TOTAL EXPENDITURES - $76.5M BY FUNCTION/DEPARTMENT Transfers Out I 2% Community Services III 4% Parks & Recreation 8% General Government 16% Public Works 17% Public Safety 53% 0% 10% 20% 30% 40% 50% 60% 89 GENERAL FUND REVENUES FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 ORIGINAL YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET AMENDED BUDGET 100-000-000.3000.010 CURRENT TAXES $12,888,645 $13,809,807 $14,000,000 $18,222,817 100-000-000.3000.020 DELINQUENT TAXES 58,350 65,000 87,000 72,000 100-000-000.3000.030 PENALTY&INTEREST 101,072 100,000 73,000 75,000 100-000-000.3000.040 IN LIEU OF PROPERTY TAXES 213,355 215,489 132,773 132,773 *PROPERTY TAXES 13,261,422 14,190,297 14,292,773 18,502,590 100-000-000.3100.010 SALES TAXES 18,825,885 20,319,329 19,506,556 20,286,818 100-000-000.3100.030 MIX DRINK TAXES 248,055 275,000 240,000 240,000 *SALES&USE TAXES 19,073,940 20,594,329 19,746,556 20,526,818 100-000-000.3200.010 GAS COMPANY 324,993 364,993 290,450 300,000 100-000-000.3200.020 ELECTRIC COMPANY 3,006,312 3,128,368 3,000,000 3,100,000 100-000-000.3200.030 TELEPHONE COMPANY 276,454 275,300 280,000 290,000 100-000-000.3200.040 CABLENIDEO TELEVISION 1,538,673 1,619,820 1,600,000 1,620,000 100-000-000.3200.050 SANITATION RESIDENTIAL 1,517,356 1,614,973 1,600,000 1,620,000 *FRANCHISE FEES 6,663,788 7,003,454 6,770,450 6,930,000 100-410-415.3300.010 BUSINESS BUILDING PERMIT 298,170 400,000 500,000 525,000 100-410-415.3300.020 BUSINESS BP PLAN&ZONE ADJUSTMENT 5,000 5,000 100-410-415.3300.030 PLATTING FEES 107,301 150,480 150,480 150,500 100-410-415.3300.040 BEER PERMITS 17,120 21,000 21,000 21,000 100-410-415.3300.050 MOVING PERMITS 5,380 4,500 5,500 5,500 100-410-415.3300.060 PEDDLERS&SOLICITORS 4,655 4,500 4,500 4,500 100-410-415.3300.070 HEALTH CERTIFICATE FEES 93,892 134,125 130,000 130,000 100-410-415.3300.080 WRECKER PERMITS 8,857 5,200 5,200 5,200 100-410-415.3300.090 BLDG PLAN CHECK FEE 1,167,332 905,856 1,200,000 1,200,000 100-410-415.3300.100 OCCUPANCY PERMIT 11,340 11,200 12,000 12,000 100-410-415.3300.110 DEMOLITION PERMIT 2,230 1,500 1,500 1,500 100-410-415.3300.120 BUILDING SITE WORK PERMIT 104,834 80,000 100,000 100,000 100-410-415.3300.140 FOOD HANDLERS 1 YEAR 450 100-410-415.3300.160 SIGN PERMIT 18,521 22,820 16,500 18,500 100-410-415.3300.170 AMBULANCE PERMIT 17,200 18,000 17,000 17,000 100-410-415.3300.180 TAXI CAB PERMIT 3,518 4,020 2,000 2,000 100-410-415.3300.190 TEMPORARY STRUCTURES 2,330 2.500 2,500 2,500 100-410-415.3300.200 RECORDATION&COURIER FEE 5,493 8,000 4,000 4,000 100-410-415.3300.210 BUSINESS PERMITS MISCELLANEOUS 6,000 6,000 100-410-415.3300.220 BUSINESS ELECTRICAL PERMIT 12,000 34,000 100-410-415.3300.230 BUSINESS PLUMBING&GAS PERMIT 15,000 22,000 100-410-415.3300.240 BUSINESS MECHANICAL PERMIT 10,000 31,000 100-410-415-3300-250 BUSINESS PROCESSING FEE 100 100 100-410-415.3300.260 PRECIOUS METAL DEALER 200 200 100-410-415.3325.010 NON BUSINESS/BUILDING PERMIT 1,628,271 1,217,600 1,474,335 1,525,000 100-410-415.3325.020 NON-BUS BP PLAN&ZONE ADJUSTMENT 28,820 40,000 28,000 28,000 100-410-415.3325.030 GARAGE SALE PERMIT 33,525 36,000 33,000 33,000 100-410-415.3325.040 CULVERT PERMIT 500 500 500 100-410-415.3325.070 FOSTER HOME INSPECTION 2,100 2,590 2,100 2,100 100-410-415.3325.080 MOWING LIEN (6,505) 500 500 100-410-415.3325.220 NON-BUSINESS ELECTRICAL PERMIT 253,981 267,425 300,000 318,000 100-410-415.3325.230 NON-BUSINESS PLUMBING&GAS PERMIT 239,973 259,493 300,000 268,000 100-410-415.3325.240 NON-BUSINESS MECHANICAL PERMIT 279,941 203,660 280,000 324,000 90 GENERAL FUND REVENUES FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 ORIGINAL YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET AMENDED BUDGET 100-410-415.3325.250 PERMITS PROCESSING FEE 50,000 180,000 100-410-415.3350.040 OCCUP REINSPECT/INSPECT LICENSE 20,940 18,000 37,000 20,000 100-410-415.3375.050 FIREWORKS 50 150 150 150 100-410-415.3375.060 IRRIGATION 27,491 26,540 30,000 30,000 100-410-415.3375.070 SWIMMING POOL 46,021 49,180 49,180 49,180 100-410-415.3375.080 DIRT GRADING PERMIT 500 1,500 1,500 1,500 100-410-415.3375.090 AMBULANCE PERMIT APP. FEE 5,700 5,700 5,700 5,700 100-205-260.3375.010 FIRE ALARM 11,375 9,000 9,000 9,000 100-205-260.3375.020 FIRE PROTECTION 3,880 2,200 5,600 5,600 100-205-260.3375.030 FIRE SPRINKLER 25,743 17,000 14,000 14,000 100-205-260.3375.040 FIRE SPRINKLER-ALTERATION 17 250 250 100 100-200-225.3300.130 ALARM PERMIT 42,185 35,000 35,000 100-200-250.3325.050 ANIMAL LICENSE 37,465 37,000 37,000 37,000 *LICENSES&PERMITS 4,550,094 3,967,489 4,913,295 5,183,830 100-405-100.3400.010 FINES&FORFEITURES 2,757,624 2,711,000 2,711,000 2,711,000 100-405-100.3400.020 CHILD SAFETY 30,272 27,500 44,000 45,000 100-405-100.3400.030 CHILD SAFETY-HARRIS CO. 5,886 6,000 5,000 5,000 100-405-100.3400.040 COMMERCIAL CARRIER FINES 78,139 83,000 50,000 50,000 100-405-100.3400.070 TIME EFFICIENCY (10,940) (10,800) (10,800) (10,800) 100-405-100.3400.080 ANIMAL CRUELTY (550) 350 350 350 100-405-100.3400.090 OMNIBASE 13,392 14,100 12,000 12,000 100-405-100.3400.100 SERVICE FEE RECOUP 75,008 78,450 78,450 80,000 100-405-100.3400.120 CODE ENFORCEMENT FINES 220 350 150 150 100-405-100.3400.130 BOND FORFEITURES 19,365 9,500 8,700 8,700 100-405-100.3400.140 TEEN COURT 220 1,100 1,100 *FINES&FORFEITURES 2,968,634 2,919,450 2,899,950 2,902,500 100-205-260.3500.140 AMBULANCE SERVICE FEE 2,756,044 2,775,000 2,500,000 2,500,000 100-205-260.3500.150 MUD FIRE/EMS COLLECTIONS 78,846 116,328 130,000 140,000 100-205-260.3500.160 SPA-FIRE/EMS 366,464 456,606 456,606 436,000 100-205-260.3500 MEDICARE AMBULANCE REIMBURSEMENT 558,188 100-205-260.3500.170 FALSE ALARM FEE 95,418 100-205-260.3500.260 NON EMERG AMBULANCE TRANSPORT 1,648 2,000 1,000 1,000 100-205-260.3500.270 NON-EMERGENCY EMS SERVICE 1,100 1,200 100-410-415.3500.070 PERMITS INSPECTION FEE 22,505 25,000 10,000 10,000 100-200-225.3300.130 FALSE ALARM FEE 80,000 80,000 80,000 100-200-200.3500.180 ARREST FEES 6,877 6,000 3,000 3,000 100-200-200.3500.190 CLEARANCE LETTER FEE 430 500 350 350 100-200-200.3500.200 SUBPOENA 91 150 50 50 100-200-200.3500.210 OFFENSE REPORT COPIES 46 100 50 50 100-200-200.3500.220 ACCIDENT REPORT COPIES 6,002 5,500 6,000 6,000 100-200-200.3500.530 TCLEOSE FUNDS 11,229 100-200-230.3500.280 POLICE TRAINING TUITION 2,498 2,200 5,000 5,000 100-200-230.3500.290 POLICE TRAINING RECYCLING 2,500 100-200-250.3500.010 ANIMAL SHELTER 36,688 44,000 40,000 40,000 100-300-340.3500.300 ENGINEERING INSPECT FEE 270,034 150,000 150,000 150,000 100-305-305.3500.080 TRAFFIC IMPACT ANALYSIS 6,800 10,500 23,000 10,000 100-500-510.3500.100 SWIMMING POOL 20,783 18,000 18,000 91 GENERAL FUND REVENUES FY 2017 ADOPTED BUDGET FY2016 FY2016 FY 2017 FY2015 ORIGINAL YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET AMENDED BUDGET 100-500-510.3500.120 RECREATION CENTER 30,839 45,000 45,000 100-500-510.3500.125 HICKORY SLOUGH SPORTS COMPLEX 19,000 27,000 100-500-525.3500.060 SPECIAL EVENT PERMIT FEES 50 150 150 150 100-500-525.3500.090 EVENTS&PROGRAMS 520,120 488,392 483,427 695,000 100-500-535.3500.110 NATATORIUM 131,754 173,800 83,000 80,000 100-500-510.3500.130 MEMBERSHIPS 1,448,507 1,417,000 1,500,000 1,500,000 100-500-510.3500.135 DISCOUNTS (130,229) (285,000) (285,000) 100-500-100.3500.020 FACILITY RENTALS 132,898 89,850 133,000 133,000 100-500-100.3500.030 FACILITY RENTAL-UH 2,405 700 100-410-420.3500.230 OTHER COPIES 2,500 50 100-130-100.3500.050 TIRZ ADMINISTRATION FEES 7,623,794 9,244,652 9,244,652 9,114,576 *CHARGES FOR SERVICES 13,442,538 15,108,928 14,649,885 15,250,614 100-000-000.3600.010 INTEREST EARNINGS 109,257 108,000 100,000 105,000 100-000-000.3600.040 UNREALIZED CAPITAL GAIN(LOSS) 14,051 *INVESTMENT EARNINGS 123,308 108,000 100,000 105,000 100-000-000.3800.125 TEXAS DEPT OF TRANSPORTATION 11,211 1,372,143 *INTERGOVERNMENTAL 11,211 1,372,143 100-200-200.3800.320 PUBLIC SAFETY 7,700 100-000-000.3800.060 BUILDING RENT 18,322 18,650 14,153 14,153 100-000-000.3800.080 PHONE&FAX REIMBURSEMENT 8,035 7,728 8,590 8,400 100-000-000.3800.090 STREET LIGHT 115,682 75,000 80,000 80,000 100-000-000.3800.130 OTHER XEROX COPIES 6,511 5,300 30,000 5,000 100-200-235.3500.240 SRO EQUIPMENT 88,760 100,925 96,848 100,000 100-200-235.3500.250 SRO PERSONNEL 707,257 823,144 823,144 825,000 100-000-000.3800.140 SALE OF PROPERTY 155,686 154,500 45,000 50,000 100-000-000.3800.240 INSURANCE REIMBURSEMENTS 102,843 55,820 100-000-000.3800.270 MISCELLANEOUS 392,717 308,036 350,000 365,000 100-000-000.3800.330 STORM SEWER OUTFALL PARKSIDE 10,000 10,000 100-405-100.3800.155 COURT BONDS 6,000 6,000 100-410-415.3800.110 WAIVER OF ENCROACHMENT 250 1,000 250 250 100-410-415.3800.220 SUSPENSE REVENUE 350 100-410-415.3800.230 SIGN REVENUE 36,715 33,000 10,000 20,000 100-500-100.3800.100 RECYCLE 51,373 15,000 21,357 100-500-100.3800.340 PARKS MISC. 900 1,800 500 500 100-500-540.3800.220 SUSPENSE REVENUE (74) 100-130-100.3800.150 MISCELLANEOUS CASH OVER/SHORT 68 100-130-100.3800.160 MISCELLANEOUS NSF FEES 5,210 7,000 1,000 850 *MISCELLANEOUS 1,690,256 1,551,083 1,560,712 1,485,153 100-200-225.3500.170 OTHER VICTIMS PROGRAM 5,020 7,000 1,000 1,000 100-000-000.3900 TRANSFERS IN 3,575,692 3,441,391 3,166,622 3,262,272 *GRANT, ISSUANCE,TRANSFER 3,580,712 3,448,391 3,167,622 3,263,272 100-000-000.4000.040 CAPITAL LEASE PROCEEDS 574,049 900,000 1,800,000 100,000 *OTHER FINANCING SOURCES 574,049 900,000 1,800,000 100,000 TOTAL $65,939,951 $69,791,421 $71,273,386 $74,249,777 92 GENERAL FUND EXPENDITURE SUMMARY (All Departments) FY 2017 ADOPTED BUDGET GENERAL FUND EXPENDITURES BY TYPE Inventory 0% Sundry Charges o% Transfers a 2% Materials & Supplies p 3% Equipment Maintenance n 4% Building Maintenance a 4% Capital Outlay II 5% Miscellaneous Services 16% Salaries & Wages _i;_ 67% 0% 20% 40% 60% 80% FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted BY CATEGORY Actual Budget Amended Budget Salaries &Wages $42,793,257 $48,090,405 $47,808,203 $51,236,275 Materials&Supplies $1,782,498 $2,408,109 $2,701,131 $2,374,649 Buildings&Grounds $1,514,376 $2,002,854 $3,075,712 $2,823,425 Equipment Maintenance $2,363,792 $2,859,011 $3,178,461 $2,795,102 Miscellaneous Services $10,037,807 $12,618,986 $13,862,296 $11,960,449 Sundry Charges $4,718 $11,103 $7,348 $6,529 Inventory $331,716 $371,903 $514,855 $356,060 Capital Outlay $3,879,918 $3,555,803 $4,517,070 $3,698,757 SUB-TOTAL 62,708,081 71,918,174 75,665,076 75,251,246 Transfers 1,332,134 1,354,768 2,554,768 1,202,789 TOTAL $64,040,215 $73,272,942 $78,219,844 $76,454,035 93 GENERAL FUND EXPENDITURES BY FUNCTION/DEPARTMENT FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted FUNCTION/DEPARTMENT Actual Budget Amended Budget GENERAL GOVERNMENT City Council 101,377 110,418 100,346 116,008 City Manager 764,822 792,964 847,911 1,005,766 Human Resources 880,196 890,482 1,106,334 1,028,653 City Secretary 380,825 362,797 396,373 377,842 Legal 813,467 741,751 754,865 768,633 Information Technology/GIS 2,949,548 3,170,367 4,830,207 3,001,235 Finance 1,908,971 2,188,539 2,285,801 2,370,292 Other Requirements' 1,029,352 2,758,636 1,668,331 3,217,106 Library2 723,733 414,619 369,588 369,751 GENERAL GOVERNMENT TOTAL 9,552,291 11,430,573 12,359,756 12,255,286 PUBLIC SAFETY Police 22,329,492 24,995,985 25,734,948 26,491,853 Police Administration 1,387,166 1,516,888 1,463,801 1,556,194 Patrol 12,484,295 13,937,619 14,460,335 14,823,995 Investigations 2,670,163 2,903,185 2,953,824 3,237,782 Community Service 683,706 715,416 846,005 777,403 Communications&Records 1,797,938 2,038,923 2,024,897 2,125,270 Jail 1,048,056 1,142,777 1,099,274 1,154,587 Commercial Vehicle Enforcement 226,033 240,825 266,846 234,291 School Resource Officers(SRO) 1,158,883 1,206,006 1,319,860 1,285,831 Training 98,505 300,829 312,836 312,155 Animal Services 774,747 993,517 987,270 984,345 Fire 11,362,768 13,635,974 14,364,580 13,809,007 Fire Administration 938,092 1,048,927 1,146,854 1,049,894 Fire Operations 9,283,302 11,054,327 11,647,793 11,136,810 Fire Marshal 686,434 921,194 930,941 917,255 Emergency Management 34,509 38,561 35,836 148,347 Health/Code Enforcement 420,431 572,965 603,156 556,701 PUBLIC SAFETY TOTAL 33,692,260 38,631,959 40,099,528 40,300,860 COMMUNITY SERVICES Community Development Community Development Administration 432,537 364,389 368,689 379,306 Planning 407,325 417,793 563,161 519,701 Permits&Inspections 1,177,799 1,313,438 1,389,409 1,390,036 Communications 474,457 470,466 474,651 508,936 Municipal Court 671,881 737,917 721,624 779,309 COMMUNITY SERVICES TOTAL 3,163,999 3,304,003 3,517,534 3,577,288 PUBLIC WORKS Public Works and Engineering Administration 259,117 261,040 269,417 Public Works Operations Administration 219,339 158,901 176,879 185,738 Traffic Operations and Maintenance 747,644 1,150,196 1,353,565 1,103,149 Custodial Services 252,637 355,016 443,464 470,568 Fleet Management 486,236 354,290 389,975 390,956 Streets&Drainage 4,829,976 4,964,212 5,401,125 5,345,357 Right-of-Way Maintenance 615,557 1,453,099 1,462,102 1,594,820 Facilities Management 1,351,981 1,035,605 1,286,517 1,508,260 Engineering&Capital Projects: Capital Projects 843,783 911,715 884,252 970,533 Engineering 986,341 1,162,814 1,309,037 1,342,684 PUBLIC WORKS TOTAL 10,592,610 11,806,888 12,976,333 12,912,065 94 GENERAL FUND EXPENDITURES BY FUNCTION/DEPARTMENT FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted FUNCTION/DEPARTMENT Actual Budget Amended Budget PARKS&RECREATION Administration 837,997 618,155 766,279 609,133 Recreation Center/Natatorium 2,111,380 2,371,334 2,396,551 2,102,125 Athletics 269,528 329,357 280,119 306,571 Special Events 252,477 319,682 337,339 328,866 Senior Program 218,721 283,592 273,796 289,634 Aquatics 93,367 148,398 108,487 30,829 Parks 1,717,029 2,616,758 2,369,948 2,212,958 Natural Resources 78,488 325,631 Recycling 206,422 57,475 100,918 PARKS&RECREATION TOTAL 5,706,921 6,744,751 6,711,925 6,205,747 TOTAL OPERATING EXPENDITURES 62,708,081 71,918,174 75,665,076 75,251,246 TRANSFERS 1,332,134 1,354,768 2,554,768 1,202,789 GENERAL FUND TOTAL 64,040,215 73,272,942 78,219,844 76,454,035 Other Requirements excludes transfers,which are listed after Total Operating Expenditures. `Library employees'salaries are funded by the County; the City pays all operating expenses. General Fund Expenditures by Function/Department FY 2017 Adopted Operating Budget* '01. 1 Community Services 4,8% Parks&Rec 8.1% General Government 16.3% Public Works 17.2% i Public Safety 53.6% Li 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% *Excludes Transfers 95 City Council General Government City Attorney City Manager Information Systems Deputy City Manager rn GIS Information Technology Finance Human Resources City Secretary TV Accounting Budget T V Accounts Payable Purchasing Utility Billing GENERAL GOVERNMENT EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget City Council 101,377 110,418 100,346 116,008 City Manager 764,822 792,964 847,911 1,005,766 Human Resources 880,196 890,482 1,106,334 1,028,653 City Secretary 380,825 362,797 396,373 377,842 Legal 813,467 741,751 754,865 768,633 Information Technology/GIS 2,949,548 3,170,367 4,830,207 3,001,235 Finance 1,908,971 2,188,539 2,285,801 2,370,292 Other Requirements* 1,029,352 2,758,636 1,668,331 3,217,106 Library 723,733 414,619 369,588 369,751 GENERAL GOVERNMENT TOTAL 9,552,291 11,430,573 12,359,756 12,255,286 *Expenditures listed here for Other Requirements do not include transfers. FY 2016 Original Budget Other Requirements include annual cost-of-living for all General Fund departments of$737,079. FY 2017 Other Requirements include annual cost-of-living for all General Fund departments totaling $951,563. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 4,511,842 5,539,266 4,882,940 6,428,757 Materials&Supplies 117,244 72,427 291,027 145,892 Repair& Equipment Maintenance 888,241 1,174,064 1,527,844 1,302,756 Miscellaneous Services 3,328,811 4,126,691 5,073,381 3,831,222 Sundry 3,094 9,958 5,148 4,329 Inventory 161,316 268,075 352,075 310,700 Capital Outlay 541,743 240,092 227,341 231,630 GENERAL GOVERNMENT TOTAL 9,552,291 11,430,573 12,359,756 12,255,286 General Government Expenditures FY 2017 - 16.3% of the $75.3 million Operating Budget City Council 0.2% Library 0.5% City Secretary 0.5% Legal 1.0% City Manager 1.3% Human Resources 1.4% Finance 3.1% Information Technology 4.0% Other Requirements 4.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 97 CITY COUNCIL 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. • Work with the Chamber of Commerce to develop a 2017 Legislative Agenda. • Work closely with Brazoria County regarding Fire Services Plan and ETJ cooperative responsibilities. FISCAL YEAR 2016 ACCOMPLISHMENTS • Awarded various Capital Improvements projects including Bailey Road construction project, Industrial Drive Realignment Project, Independence Park Phase 1 Design Contract, Nature Center Design Contract, Mykawa Design Contract, Fire Station #1 Design Contract, Linwood-Orange-Old Alvin Design Contract, Corrigan Sub- Basin Design Contract, Service Center Design Contract. • Reduced Total Tax Rate. • Reduced Debt Service Tax Rate. • Finalized agreement with Keep Pearland Beautiful to take over the operations of the Stella Roberts Recycling Center. • Inaugurated the addition of a sixth member of the Pearland City Council. FISCAL YEAR 2017 OBJECTIVES • Provide leadership and direction over the issuance of all bonds and refinancing. • Provide leadership and direction over all contracts for professional services and construction for all capital projects. • Conduct Early Budget Input Session in accordance with the City's Strategic Priorities. • Develop annual budget that will insure sustainability for the City over the next 15 to 20 years. • Provide leadership in accordance with the Governance Model. • Inauguration of the addition of a seventh member of the Pearland City Council. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Target Ordinances Considered 60 65 90 71 Resolutions Considered 170 175 250 198 Citizen Survey Ratings* Citizen Survey Ratings* Good to Excellent Good to Excellent Ratings of Overall Quality of Life Quality of Services Received for the in Pearland Tax Dollar 95% 80% �- 79% 78% 83% 90% 92% 92% 7 91% 0% 85% 60% 85% 54% 80" 50% 2009 2011 2013 2015 2009 2011 2013 2015 *Pearland Citizen Surveys are completed every other year, therefore these results are representative of the 2015 Survey. 98 CITY MANAGER OVERVIEW The City Manager is appointed by the City Council to administer the daily operations of the City and implement policies established by City Council. The City Manager is responsible for preparation, filing and management of the annual budget to meet the organization goals, and reports to the City Council on the City's financial position. The City Manager also attends Council meetings, special meetings, and public hearings. Professionals in the Office of the City Manager assists the City Manager in those duties. The Deputy City Manager has overall portfolio responsibilities to help guide the City and leads the General Government departments that includes Finance and Utility Billing, Human Resources, Parks and Recreation, Municipal Court, Communications, City Secretary and the Pearland Convention and Visitors Bureau. The Assistant City Manager has leadership responsibilities over Capital Projects and Engineering, Public Works, Traffic Management, Facility Maintenance and oversees the 5 Year Capital Improvement Plan. There is a 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. Key Budget Items for FY 2017 Include: • Early Budget Input meeting scheduled for February 2017. GOALS • Keep City Council informed on pressing business of the City. • Provide quarterly financial and capital project progress reports to City Council. • Develop an annual operating budget that meets the needs of a growing and dynamic City. • Expand cooperative relationships with Pearland ISD, Alvin ISD, Brazoria County, Harris County, Houston Galveston Area Council, etc. • Continue to advocate for added traffic safety/transportation capacity and traffic relief city-wide. FISCAL YEAR 2016 ACCOMPLISHMENTS • Held City Council Early Budget Input Session in February of 2016. • Began implementation of the City's new Enterprise Resource Planning (ERP) System. • Submitted annual operating budget recommending a total tax rate decrease. FISCAL YEAR 2017 OBJECTIVES • Finalize the City's transition into a new Enterprise Resource Planning (ERP) System. • Present funding issuance and refunding opportunities to maintain or reduce the City's overall tax rate. • Further develop plan for City's next bond election. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2016 Actual Actual Target Actual Number of authorized FTE1 employees per 1,000 population 6.28 6.26 6.38 6.35 GF Operating Budget$per capita $587.26 $619.26 660.88 644.35 'The number of authorized FTE employees is based on the budgeted amount of full-time equivalent positions, including approved changes. 99 HUMAN RESOURCES 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 2017 Include: • Risk Manager(funding split between General Fund and Property Insurance Fund) - $106,948. 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 2016 ACCOMPLISHMENTS • Launched on-line Learning Management System (LMS)for compliance training and professional development. • Created and began publishing quarterly Employee Newsletter. • Created various committees/task forces to encourage involvement in policy development, wellness initiatives, employee recognition and improve internal communication. • Began development of a safety/inspection program. • Initiated a City-wide compensation and classification study with Management Advisory Group. • Organized inaugural City Wellness Fair in concert with open enrollment sessions. • Began work with New World, Administration, and Finance on ERP to create new payroll/HR system. FISCAL YEAR 2017 OBJECTIVES • Complete City-wide compensation and classification study with Management Advisory Group. • Full implementation of the Human Resource and Payroll modules of the New World Systems. • Transition internal service methodology to provide departments with a dedicated, full-service Business Partner, to develop closer working relationships with supervisors, better assist with employee development, recruitment and selection and training. • Research and determine feasibility of new services: safety initiatives, safety committee(s), certified interviewer program, employee referral program, succession planning, etc. • Review and improve processes such as exit interview, volunteer intake, intern program, orientation, etc. • Determine and develop service level expectations and data to track, report and rate HR functions/services. • Host trainings on recruitment, safety manual, process/policy changes/updates and software. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Number of vacated or new positions posted 155 175 140 100 Number of employment applications received 8,507 7,500 10,420 8,000 Annualized Citywide turnover rate (FT employees) 15.6% 10% 13.4% 10% Number of training hours to new and existing employees 100 50 68 80 Percent of positions filled within 30 days of posting 65% 85% 84% 85% 100 CITY SECRETARY OVERVIEW The City Secretary's Office is the custodian of records for the City. This department administers open records requests from citizens and assists other departments with research. The office creates the Agenda packets for City Council meetings, maintains records and minutes of the meetings, coordinates administration of City elections with Brazoria County, maintains historical records and archives, and provides the public with information in accordance with the Texas Public Information Act. STRATEGIC COUNCIL PRIORITY: The City Secretary's office ensures citizens have access to agenda information and have the opportunity to participate in the local decision-making process, vote in elections, speak at public hearings, and request and receive official records, in ways that promote an Engaged Community. Key Budget Items for FY 2017 Include: • No significant items. 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 2016 ACCOMPLISHMENTS • Completed phase one of the implementation of the Meeting Management Solution automated agenda system. • Implemented Alcohol Permits as part of the CRW, Inc., software program. • Successfully conducted the May General Election and a Special Runoff Election using vote centers. FISCAL YEAR 2017 OBJECTIVES • Complete the implementation of the automated agenda system. • Conduct bi-monthly Records Management Meetings with Department's Records Coordinators. • Enter current Alcohol Permits into TRAKIT software program for full implementation of the software. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target PUBLIC RECORDS Open Records Requests processed (Freedom of Information Act) 1,004 1,252 1,294 1,400 ELECTIONS Number of registered voters(average) 58,563 59,909 64,240 66,120 Number of votes cast(average) 3,382 3,564 2,569 3,967 Average%of voter turnout 5.8% 5.95% 4.0% 6.0% 101 LEGAL DEPARTMENT 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 to promote a Fiscally Responsible Government and a Safe Community. Key Budget Items for FY 2017 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 2016 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 2017 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. 102 INFORMATION TECHNOLOGY 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 2017 include: • Addition of a Full Time Senior Office Assistant - $62,796. GOALS • Provide citywide innovation and leadership in the utilization and deployment of information technology services and applications. • Ensure high-quality, effective and efficient production and support services for our employees. • Maintain a secure information technology environment, ensuring the confidentiality, integrity and availability of critical information and systems. • Continue to educate City staff 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 2016 ACCOMPLISHMENTS • Supported technological configurations for the FY 2016 Enterprise Resource Planning (ERP) "go live" conversion. • Assisted with Networking/Audio Visual solutions of Community Center renovation. • Supported GIS needs for TRAKiT "Community Development" software and "New World Systems" integration. • Upgraded ArcSDE SQL Server to ArcGIS 10.4 software version. • Upgraded ArcGIS Desktop end users to ArcGIS 10.4 software version. • Upgraded GIS Home page functionality—online map services for mobile devices. • Updated the water, storm and centerline, sanitary and lane mile inventory in the City's GPS system. • Initiated a trackable management program for field and office. • Updated the inventory of water meters in the City recorded in the GPS system. • Updated the inventory of street lights in the City. • Trained field personnel to perform basic data entry into ArcMap. • Provided more advanced training for GIS Specialist on interpreting Engineering plans. • GIS Specialist performed more on-site training for field personnel. 103 INFORMATION TECHNOLOGY FISCAL YEAR 2017 OBJECTIVES • Continue technological configurations for the FY 2016 Enterprise Resource Planning (ERP) "go live" conversion. • Assisting with Networking/Audio Visual solutions of City Hall. • Support GIS needs for TRAKiT "Community Development" software and "New World Systems" integration. • Upgrade ArcSDE SQL Server to ArcGIS 10.5 software version. • Upgrade ArcGIS Desktop end users to ArcGIS 10.5 software version. • Migrate GIS system to new platform to improve performance. • 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. • Major consolidation of city network, SCADA network, and traffic network. • Expansion of city fiber to improve backhaul of City network. • Initiate a trackable management program for field and office. • Update the inventory of water meters in the City recorded in the GPS system. • Update the inventory of street lights in the City. • Train field personnel to perform basic data entry into ArcMap. • Continue to provide more advanced training for GIS Specialist on interpreting Engineering plans. • Continue to provide GIS Specialist more on-site training for field personnel. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Number of PC's supported 575 576 680 700 Number of new software programs installed 1 2 2 1 Average Number of GIS layers maintained 103 104 120 125 Number of Maps Requested/Prepared 217 237 235 235 104 FINANCE DEPARTMENT 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 2017 Include: • Addition of a Staff Accountant- $73,483 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 2016 ACCOMPLISHMENTS • Completed implementation of the financial modules with "go-live" of the financials and budget. • Began to implement the 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. • Compiled and presented to City Council debt maturity options for the City's water/sewer fund; lowering interest costs, through changing the rate structure. • Bid, awarded and replaced the City's 7 year old water/sewer rate model which the City uses to forecast rate changes. • Awarded the Government Finance Officers Association's annual Distinguished Budget Award and its Certificate of Achievement for Excellence in Financial Reporting. 105 FINANCE DEPARTMENT FISCAL YEAR 2017 OBJECTIVES • Complete implementation of the payroll module with "go-live" of April 2017. • 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. • Potentially implement a new budget process and timeline based off the functionalities and capabilities of a new budget system. • Update Comprehensive Financial Management Policies. • Implement Fixed Assets module in New World Financial Systems. • Implement GASB reporting module. • Update module for multi-year plan. • Complete physical inventory in fiscal year 2017. • 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 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Investments in compliance with policy and PFIA 100% 100% 100% 100% Number of audit comments 0 0 0 0 Tax Backed Bond Rating Moody's Aa2 Aa2 Aa2 Aa2 S&P AA AA AA AA Fitch AA AA AA AA Revenue Bond Rating Moody's Aa3 Aa3 Aa3 Aa3 S&P AA- AA- AA- AA- Fitch AA- AA- AA- AA- 106 OTHER REQUIREMENTS OVERVIEW Historically, this department has been used to account for General Fund-wide expenditures including telephone, radio repairs, credit card and banking fees, contingency funding, sales tax incentive rebates, and capital lease payments. Transfers account for operating transfers to other funds for reimbursement of services and include Property and Liability insurance allocation and reserve for self-funded Medical Fund. Key Budget Items for FY 2017 Include: • 3% cost of living increase for all personnel($1,129,798 total for all funds; $951,563 budgeted in General Fund) • $200,000 for Phase I implementation of Compensation and Classification Study • $225,000 earmarked for future Police Vehicle Replacement Fund • $200,000 for Community Development staffing based on Staffing Assessment study. • Radio maintenance agreement with City of Houston- $225,000 • KPB franchise fee- $230,700 • Sales tax incentives (Kelsey Seybold and Costco) - $230,000 • Capital leases - Seimens energy lease ($114,486), lease on fire truck ($87,471), ERP lease ($166,809) and lease on ladder truck and Parks and Recreation equipment ($222,833). 107 LIBRARY OVERVIEW Library services are provided through a cooperative effort between the City of Pearland and Brazoria County that support two facilities —the Tom Reid Library on the east side of the City, and the Business Center Drive Library on the west.The City provides the buildings and takes responsibility for their maintenance and other operating expenses. Brazoria County supplies the libraries' materials, computers, network access, and employees. As part of the voter- approved bond referendum in 2007, funding was approved to expand the current building. 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 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 Services, and the City is responsible for providing the facilities. Pearland's efforts provide the citizens with access to multiple activities and programs, encouraging an Engaged Community. Key Budget Items for FY 2017 Include: • No significant items. 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 meeting spaces, public Internet access, and educational programs for children, and assistive services for all ages. FISCAL YEAR 2016 ACCOMPLISHMENTS • Completed design of the Tom Reid Building expansion and renovation project. • Began implementation of the Brazoria County Library System long range plan for 2016-2020. • Enrolled 1,635 children and 137 teens in the summer reading club and summer reading club attendance included 3,808 children and 216 teens. • Held computer classes at the Melvin Knapp Activity Center and ESL (English as a Second Language) classes at the Pearland Westside Library. FISCAL YEAR 2017 OBJECTIVES • Begin construction on the expansion and renovation of the Tom Reid Library building. • Maintain current service levels at the Tom Reid Library during the expansion. • Initiate a design-input proposal for a Westside Library facility. PERFORMANCE MEASURES* FY 2014 FY 2015 FY 2016 FY 2017* Actual Actual Projection Target Tom Reid Library Number of volumes 103,514 104,000 130,000 84,000 Number of items checked out-circulation 340,293 370,188 400,000 440,000 Business Center Drive Library Number of volumes 38,173 40,923 42,000 60,000 Number of items checked out-circulation 322,600 362,652 370,000 503,000 *Volumes and circulation targets for FY 2017 have been adjusted due to construction activities scheduled to take place at the Tom Reid Library during the fiscal year. 108 Police Chief Public Safety Police Department Assistant Police Chief + + + + Patrol Operations Criminal Investigations Support Services Administrative Services 1 1 0 co l i CMV Enforcement ♦I Patrol Persons Crime Records ♦ Professional Development DDACTS 4-10. Traffic Enforcement Property Crimes Communications/Dispatch School Resource Officers Warrants/Courts Security Detail ♦► K-9 CSI/Support * Jail Professional Standards Lobb Detail f÷ Community Outreach/PIO/ y Quartermaster Animal Services Recruiting Public Safety FreChief Fire Department i i i i Training Administration Operations Community Risk Reduction --► ► Logistics Fire Marshal 0 —10 Volunteer Recruitment ► Code Enforcement ► Community Outreach _♦ Emergency Management PUBLIC SAFETY EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget Police Administration 1,387,166 1,516,888 1,463,801 1,556,194 Patrol Operations 12,484,295 13,937,619 14,460,335 14,823,995 Commercial Vehicle Enforcement 226,033 240,825 266,846 234,291 Investigations 2,670,163 2,903,185 2,953,824 3,237,782 Police Community Services 683,706 715,416 846,005 777,403 Police Training 98,505 300,829 312,836 312,155 School Resource Officer 1,158,883 1,206,006 1,319,860 1,285,831 Police Communications/Records 1,797,938 2,038,923 2,024,897 2,125,270 Jail 1,048,056 1,142,777 1,099,274 1,154,587 Animal Services 774,747 993,517 987,270 984,345 POLICE TOTAL 22,329,492 24,995,985 25,734,948 26,491,853 Fire Administration 938,092 1,048,927 1,146,854 1,049,894 Fire Operations 9,283,302 11,054,327 11,647,793 11,136,810 Fire Marshal 686,434 921,194 930,941 917,255 Emergency Management 34,509 38,561 35,836 148,347 Health/Code Enforcement 420,431 572,965 603,156 556,701 FIRE TOTAL 11,362,768 13,635,974 14,364,580 13,809,007 PUBLIC SAFETY TOTAL 33,692,260 38,631,959 40,099,528 40,300,860 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 28,189,147 31,299,063 31,964,020 33,586,540 Materials&Supplies 799,801 1,271,024 1,310,175 1,248,188 Buildings&Grounds 34,995 11,340 16,110 15,540 Repair&Equipment Maintenance 1,089,093 1,288,953 1,270,365 1,156,931 Miscellaneous Services 1,721,665 2,025,424 2,041,986 1,850,223 Inventory 115,697 101,628 132,405 45,360 Capital Outlay 1,741,861 2,634,527 3,364,467 2,398,078 PUBLIC SAFETY TOTAL 33,692,260 38,631,959 40,099,528 40,300,860 Public Safety Expenditures FY 2017 - 53.6% of the $75.3 million Operating Budget FirePRIM. , 18.4% 1 1 Police 35.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 111 POLICE DEPARTMENT 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, the Citizens' Police Academy, homeowner's association meetings, neighborhood watch programs, security surveys and home safety inspections, Christmas Toys for Tots, as well as other programs. The department operates out of the Public Safety Building on Cullen 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 2017 include: • Addition of four new Police Officers and two vehicles for 6 months. - $349,820. • Six new vehicles for the Patrol Division; three of which would serve the DDACTS unit, one for the Traffic Unit and two for Patrol Fleet spare units. - $338,430. • Two new vehicles for the Criminal Investigations Division; two for newly assigned investigators and one for a spare unit. - $71,134. • Implementation of phase I of the Police Utilization Study- $100,000. 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. 112 POLICE DEPARTMENT FISCAL YEAR 2016 ACCOMPLISHMENTS • Conducted department-wide mandatory training to ensure that all officers meet State-mandated training requirements for the new TCOLE training cycle for 2015-2017. • Continued 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. • Continued recruiting efforts through proven effective means to attract a large and diverse applicant pool. Worked with Human Resources to promote employment opportunities within all areas of the Department. • Implemented a Teen Citizen's Police Academy, based upon the popular adult Citizen's Police Academy (CPA) course as an outreach program to Pearland youth regarding the role of police in society. • Added a School Resource Officer to the program to more effectively meet the needs of our partnership with PISD. • Implemented a proactive unit that will use the Data Driven Approaches to Crime and Traffic Safety (DDACTS) program guidelines addressing crime and traffic problems with more efficiency. • Certified two additional Animal Control Officers to conduct animal cruelty investigations. • Commercial Vehicle Enforcement officers continued to host safety meetings with Pearland businesses involved in the commercial vehicle industry. • Trained 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. • Tested and evaluated body cameras for officers to determine suitability for the Department. • Updated the patrol vehicle video system to current specifications. • Staffed, planed, and trained personnel for the return of Alarm Billing and Permitting to this Department from the private contractor. • Assigned an investigator to a Federally-designated High Intensity Drug Trafficking Area (HIDTA) task force. • Purchased a 3D plotting laser scanner to use during crime scene and advanced accident investigation renderings. • Increased the level of communication and training with Alvin ISD officers due to the number of their schools within the City of Pearland. • Completed a Police Utilization Study in order to assess staffing and utilization. FISCAL YEAR 2017 OBJECTIVES • Fill an opening in Dispatch created by the retirement of a Telecommunications Operator. • Obtain Basic Telecommunications Operator certification for two recently hired Dispatch employees. • Increase the availability of the department's main Public Information Officer through the assignment of an iPad for use in transmitting real-time public information releases to news and social media outlets. • Increase youth outreach efforts through the reactivation of a Law Enforcement Exploring post and the creation of a Youth Leadership Academy. • Increase communication with minorities through the creation of a 'Unidos' (United) program focused on building positive relations with Pearland's Hispanic community. • Form a retail business cooperative with police, retail businesses, hotels and convenience stores for increased communication and coordination of crime preventions efforts. • Create a faith-based outreach program intended to enhance communication with area houses of worship. • Increase proactive investigative efforts focused on targeting child predators. • Increase the investigative capability of the Criminal Investigations Division by creating a new detective position. • Better focus Fraud investigative efforts by using a solvability matrix to identify cases with the greatest probability of closure. • Obtain an RFID (Radio Frequency Identification Device) system to track and monitor cell and security checks in the jail for increased accountability and prisoner safety. • Increase jail staffing from 3 jailers per squad to 4 jailers per squad to ensure adequate staffing for jail and prisoner security. • Create an interface between the Jail and Dispatch that will immediately notify Dispatch personnel when a jail duress alarm is activated so police personnel can be dispatched to assist. • Add an additional Records Clerk to replace a clerk reassigned from report management duties to alarm compliance duties. 113 POLICE DEPARTMENT • Increase productivity for Receptionist staff by adding a printer to the front office workstation. • Expand K9 training to include a solidified cadre of local K9 handlers as a support mechanism and expand training tools to include some synthetic training aids, which provide a more stable and consistent scent marker. • Evaluate crime and traffic statistics and adjust zones pursuant to the department's Data Driven Approaches to Crime and Traffic Safety policing model. • Assign a Traffic Division officer specifically to perform crash investigations in addition to existing Traffic functions to decrease call volume on Patrol officers which will lead to increased crash investigation efficiency due to the specialized nature of the position. • Obtain E-ticket writers/mobile tablets with report management system connectivity for Patrol and the Motorcycle unit in order to more accurately track activity and to increase efficiency during traffic stops. • Expand existing Commercial Vehicle Enforcement education efforts for owners and operators of commercial vehicles regarding safe operation, equipment requirements, and state/federal laws. • Add two more officers to the proactive Data Driven Approach to Crime and Traffic Safety (DDACTS) unit and expand proactive operations. • Review current district/beat assignments for reconfiguration to maximize geographic response capabilities. • Review and consider reconfiguring patrol shift start times to reflect calls for service manpower needs. • Work with Information Technology, the Fire Department and city hall partners to configure locations for remote patrol car/body worn camera upload access and office space. • Initiate a "Bike Rodeo" program in conjunction with Parks and Recreation and the Fire Department. Average Response Time per Car from Receipt of Call to Arrival on Scene 6 5.5 5 min 6sec 5 min 10sec 5 minutes 5 minutes 5 4.5 4 2014 2015 2016 Projection 2017 Target Total Number of Crime Reports Percent of Crimes Cleared 5,600 5,463 Based on Assigned Cases 5,316 84% 82% 5,400 5,253 79% 77% 5,200 73% 5,000 4,800 74% 4,800 69% 67% 4,600 64% FY 2014 FY 2015 FY 2016 FY 2017 2014 2015 2016 2017 Target Projection Target Projection 114 POLICE DEPARTMENT Number of Animals Received at the Animal Shelter 2,200 2,176 2,150 2,126 2,100 2,115 2,100 2,050 2,000 FY 2014 FY 2015 FY 2016 FY 2017 Target Projection PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Violent and non-violent person crimes reported 759 796 777 811 Property and society crimes reported 4,494 4,520 4,023 4,097 Training hours completed, Pearland Officers 19,485 11,994 15,444 16,000 Number of 911 calls received by dispatch 36,279 35,526 33,050 34,834 Average time-citizen call to unit dispatched (in seconds) 61 63 57 60 Average number of 911 calls per Telecommunication Operator 230 260 240 230 Number of offense reports 13,962 12,793 10,845 11,158 Total arrests made by police 7,081 6,115 5,100 5,191 Dispatched calls per Patrol Officer 595 679 780 545 Average response time per car 5min Osec 5min Osec 5min 6sec 5min 1 Osec Number of animals received at animal shelter 2,176 2,126 2,100 2,140 Percent of animals adopted 48% 55% 64% 65% Citizen Survey Results* Citizen Survey Results* Good to Excellent Good to Excellent Safety in Neighborhood Traffic Enforcement 92% 94% 96% 98% 100% 0% 20% 40% 60% 80% 100% 2015 95% 2015 65% 2013 99% 2013 72% 2011 98% 2011 76% 2009 100% 2009 73% *Pearland Citizen Surveys are completed every other year, therefore these results are representative of the 2015 Survey. 115 FIRE DEPARTMENT OVERVIEW The Fire Administration Division provides logistical, administrative and financial support services to the entire Fire Department. The Operations Division provides fire suppression, rescue, and emergency medical services to the City and surrounding areas, serving an area comprised of the Pearland City Limits and its Extra-Territorial Jurisdiction (ETJ). 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. The Community Risk Reduction Division is composed of Code Enforcement, Fire Marshal's Office, Emergency Management and public safety education. The Fire Marshal's Office provides fire inspections, public fire prevention education, and fire investigations. Code Enforcement provides health inspections of food establishments, including restaurants, schools, and group homes for compliance to City ordinances. Emergency Management prepares and manages comprehensive plans for community disaster response and preparation. STRATEGIC COUNCIL PRIORITY: The Fire Department places heavy emphasis on making Pearland a Safe Community. The department conducts educational activities such as fire prevention and protection that create an Engaged Community. The department code enforcement officers conduct inspections of buildings, food and other business establishments, as well as environmental clean-up of structures and grounds to support a Healthy Economy for the City. Key Budget Items for FY 2017 include: • Addition of an Emergency Management Coordinator(9 months) - $117,534. • Purchase 12 IPads for ambulances and chief officers -$17,100. • Implement a Fire Station alerting system at Stations 4 & 5 - $144,980. 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 2016 ACCOMPLISHMENTS • Opened and staffed the new Fire Station #2. • Purchased a new ladder truck. • Completed a volunteer Fire and EMS Academy. • Implemented new medical protocols in partnership with the City's new Medical Director. • Completed the Fire Department Strategic Plan. • Started designing a new Fire Station#1 to replace the old Fire Station #1. • Decreased response times. • Worked toward a program of increased funding from Brazoria County for ETJ incidents. 116 FIRE DEPARTMENT Citizen Survey Ratings Citizen Survey Ratings Good to Excellent Good to Excellent Ratings of Fire Services Ratings of Ambulance/EMS Services 100% 95% 95% 93% 92% 95% 92% 93% 91% 91% 89% 88% 88% 90% 90% / 87% 85% 85% 2009 2011 2013 2015 2009 2011 2013 2015 Pearland Citizen Surveys are completed every other year,therefore these results are representative of the 2015 Survey. FISCAL YEAR 2017 OBJECTIVES • Equip and place in service the new ladder truck ordered in FY2016. • Complete 1 volunteer Fire and EMS Academy. • Continue Implementation of Fire Department Strategic Plan. • Complete Fire Department Standards of Cover and Staffing Utilization Study. • Decrease response times. • Obtain increased funding from Brazoria County for ETJ incidents PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2016 Actual Actual Projection Target Average Response Time: Percent 5 minutes or less 47% 20% 25% 40% Percent 9 minutes or less 83% 67% 74% 80% Total Estimated Fire Loss $1,800,000 $1,700,000 $4,421,186 $2,000,000 Number of Code Enforcement Cases Opened 2,070 4,596 2,560 2,700 Number of Annual Inspections 1,600 1,946 1,244 2,000 Emergency Medical Transports 4,499 4,700 4,616 4,800 Public Safety Education Hours 279 300 306 400 Firefighter Average Response Time 100 80 60 40 20 III II 0 FY 2014 FY 2015 Actual FY 2016 Projection FY 2017 Target •Percent 5 Minutes or Less 0 Percent 9 Minutes or Less 117 Community Services City Council • Deputy City Manager Executive Manager of ___ Development Services&PEDC Presiding Court Judge President Municipal Court • Community Development Juvenile Case Management Communications Bailiffs Planning Building Official Inspections ► Permits COMMUNITY SERVICES EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget Community Development Community Development Administration 432,537 364,389 368,689 379,306 Permits&Inspections 1,177,799 1,313,438 1,389,409 1,390,036 Planning 407,325 417,793 563,161 519,701 Communications 474,457 470,466 474,651 508,936 Municipal Court 671,881 737,917 721,624 779,309 COMMUNITY SERVICES TOTAL 3,163,999 3,304,003 3,517,534 3,577,288 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 2,432,722 2,739,042 2,757,362 3,045,164 Materials&Supplies 143,452 142,656 127,112 134,622 Buildings&Grounds 328 Repair&Equipment Maintenance 24,750 17,644 17,534 15,600 Miscellaneous Services 549,804 358,476 568,449 379,702 Sundry Charges 1,624 1,145 2,200 2,200 Inventory 11,319 2,200 Capital Outlay 42,840 44,877 COMMUNITY SERVICES TOTAL 3,163,999 3,304,003 3,517,534 3,577,288 Community Services Expenditures FY 2017-4.8% of the $75.3 Million Operating Budget Community Development _ .....immiii Administration 0.5% Communications 0.7% i Planning 0.7% t Municipal Court 1.0% 1. Permits&Inspections 1.9% s i 0.0% 0.5% 1.0% 1.5% 2.0% s 119 COMMUNITY DEVELOPMENT OVERVIEW The Community Development Department is a part of the Community Services area and consists of Community Development Administration, Planning, and Permit & Inspection Services. Community Development Administration oversees, assists and guides the divisions within the department. Community Development Department also provides support to developers and citizens proposing development in Pearland. The Planning Division is responsible for all long range and short term plans for the growth of the City, in order to create and maintain a desirable land use pattern for an enhanced quality of life for our citizens. This Division administers the City's Unified Development Code and the Comprehensive Plan. The Division processes all land use related requests including zone changes, variance and special exception requests, and subdivision plats. This division also reviews all development related permits to ensure conformance with the Unified Development Code. 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 2017 Include: • Annexation — property surveys, analysis - $40,000. • Reclassify one part Time Office Assistant to a full time Office Assistant- $28,691. • Reclassify one part time Inspector to full time Inspector-$38,692. • Add one additional full time building inspector- 70,000. • Add one full time Receptionist position—$44,200. • Add one full time Planner position—$70,000. • Professional Services for 3rd party inspection and plan review-$90,000. 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, businesses, and visitors to our City. FISCAL YEAR 2016 ACCOMPLISHMENTS • Completed Bailey Avenue annexations. • Implemented Enterprise Resource Planning (ERP)—TRAKiT software. • Adopted 2015 International Building Codes ("I-Codes"). • Implemented satellite garage sale permit issuance at the City's Public Safety Building. • Continued to implement action Steps listed in the 2015 Comprehensive Plan. • Completed "paper lite" initiative for Planning including paperless plan reviews. • Continued "paper lite" initiative for Permits and Inspections. Transitioned from paper inspection tickets to real time inspection results via iPads. • Conducted annual Pearland Development Forum. • Continued professional training for staff, Planning and Zoning Commission, and Zoning Board of Adjustment. • Continued to provide population updates and special studies. • Continued to publish annual and quarterly Community Development newsletter. • Revised pre-development information to include all new adopted codes and ordinances. 120 COMMUNITY DEVELOPMENT FISCAL YEAR 2017 OBJECTIVES • Complete annexations of areas located at the intersection of CR 59 & CR 48 and south of Tom Bass Park. • Ongoing improvements to the Enterprise Resource Planning (ERP)—TRAKiT software. • Continue with implementation of Action Steps listed in the 2015 Comprehensive Plan. • Permits and Inspections to complete scanning and archiving of all records for paper document reduction. • Implement online permitting credit card payment for citizens and contractors. • Implement TRAKiT E-portal for citizens permit access. • Relocate to renovated offices. Citizen Survey Ratings Total Number of Building Inspections Good to Excellent 40,000 -Overall Appearance of the City Land Use,Planning and Zoning , 38,000 35,000 / 36,497 37,206 90% 86% 0 82% 82% 85/o 80% 30,000 74% 75% 70% 28,434 65% 62% 25,000 59% 59% 60% 55% 0 47% 20,000 50% 45% 40% 15,000 2009 2011 2013 2015 2014 2015 2016 2017 Target Projection Peartand Citizen Surveys are completed every other year,therefore these results are representative of the 2015 Survey. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Zone Change Cases 19 25 61 60 Total Plat Approvals 143 115 168 160 Site plans reviewed 111 100 125 150 Total plans reviewed 1,185 1,584 1,349 1,425 Total building inspections 28,434 36,497 37,206 38,200 Total permits issued 13,972 18,186 14,612 16,000 Average Value Single Family Home Permitted $231,173 $225,366 $293,425 $293,500 121 COMMUNICATIONS OVERVIEW Pearland's Communications Department serves as the City's Public Information Office, keeping residents and employees informed of events and activities occurring throughout Pearland. The department disseminates information about the City of Pearland, its services, projects, events and programs and produces and distributes the City's biannual printed newsletter - Pearland In-Motion, and the City's monthly electronic newsletter — Pearland Connect. Communications also maintains the City's 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 2017 include: • Redesign of the City's Pearnet Intranet- $17,000. • Completion of the City's bi-annual Citizen Survey- $18,000. 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 2016 ACCOMPLISHMENTS • Developed a 5-year comprehensive Communications Plan to drive marketing and communications for the City. • Provided marketing/communications support for the most successful pet adoption event in the history of the City where more than 50 adoption applications were received. • Completed a social media audit in an effort to improve strategy and engagement regarding social media pages. • Increased transportation/mobility-related communications by 15 percent. • Filmed, edited and produced a Pearland TV I Remember segment highlighting one of the oldest City businesses resulting in a nearly 26,000 reach on Facebook. • Received 3 awards in communications excellence from various state and national city/county marketing/communications associations. • Redesigned 2 electronic newsletters— Pearland Connect &the Rec Report. • Improved mobile website functionality by modifying more than 100 city website pages. PERFORMANCE MEASURES Total Number of Website Visits Total Number of News Releases www.pearlandtx.gov 190 2700000 170 150 170 2500000 2,333,160 130 159 2300000 2,500,000 1,973,716 110 2100000 90 1900000 2,056,270 70 1700000 50 1500000 30 50 58 2014 2015 2016 2017 2014 2015 2016 2017 Projection Target Projection Target 122 COMMUNICATIONS FISCAL YEAR 2017 OBJECTIVES • Develop and implement a plan to increase social media followers/fans to YouTube (650), Twitter (4,575), Facebook (14,500) and Instagram (1,500). • Complete the redesign of the City's website (pearlandtx.gov). • Complete the redesign of Pearnet*—the City's intranet portal. • Develop and implement a plan to market the City's app—Connect2Pearland in an effort to increase use. • Follow the guiding principles outline in the Department Strategic Plan which include: serving as brand ambassadors, being inclusive, proactive, transparent, consistent and responsive. • Build out of and purchase of equipment for Pearland TV studio. • Complete the FY 2017 Citizen Survey. 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% *Pearland Citizen Surveys are completed every other year, therefore these results are representative of the 2015 Survey. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Facebook fans/friends 5,499 8,589 11,800 14,500 Twitter followers 1,289 2,254 3,290 4,575 YouTube subscribers 147 264 350 650 Instagram fans/followers N/A 436 1,235 1,500 Percent of news releases published 96% 95% 93% 75% 123 MUNICIPAL COURT OVERVIEW The Municipal Court has original jurisdiction over Class C misdemeanors and City Code violations which occur within the corporate City limits of Pearland and are punishable by fine only. It is the function of the Municipal Court to provide accessible, efficient and well-reasoned resolution of all the court's cases. The staff maintains a modern computerized record and money management system for approximately 25,000 charges processed by the Court each year. The Court office maintains standing judicial orders that may allow disposal of a case without appearing at an official arraignment. Additionally, the court is responsible for collecting fines, as well as numerous other court costs, that must be accounted for and sent to the Texas Comptroller's Office on a quarterly basis. STRATEGIC COUNCIL GOAL: Adjudication of misdemeanor crimes and local code violations provides Pearland residents and visitors with a Safe Community. Key Budget Items for FY 2017 include: • No significant items. GOALS • Uphold the Constitution, laws and legal regulations of the United States, the State of Texas and all governments therein. • Set high standards to maintain and preserve the integrity of all cases filed in the Pearland Municipal Court of Record. • Abide by the standards set out in the Texas Code of Judicial Conduct. • Protect the confidentiality of all records filed. • Remain cognizant of the needs of customers and citizens of the Pearland Municipal Court to reinforce the positive perception of the judiciary. • Provide access and encourage education of staff to increase the level of expertise and proficiency in the affairs of the Municipal Court. FISCAL YEAR 2016 ACCOMPLISHMENTS • Procurement of a full-time Bailiff allowing better security for citizens, Judge and court staff. • Accomplished the "paper lite" initiative by the scanning of all documents filed with the court. • Continued the prosecution and adjudication of court cases in accordance with the Constitution, laws and legal regulations of the United States, the State of Texas, and all applicable governments therein. FISCAL YEAR 2017 OBJECTIVES • Secure grant funds for a portable walk-through metal detector to improve security for administrative and judicial staff. • Beginning the process of utilizing ticket writers with our Police Department. • 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 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Number of Judge trials prepared 217 346 143 225 Number of Jury trials prepared 622 510 300 450 Number of warrants issued 9,438 8,195 6,390 7,500 Total number of charges brought in 23,182 19,233 17,611 18,500 Percent Guilty Charge 68% 61% 57% 60% Percent Charges Dismissed 12% 21% 17% 18% Outstanding warrants 17,644 17,480 16,236 16,800 Value of outstanding warrants $8,395,229 $8,580,728 $8,275,346 $8,400,000 124 Public Works and Engineering/Capital Assistant City Manager Projects V V Public Works Director Director of Engineering&Capital Projects • Assistant Director Water&Sewer Operations Engineering Capital Projects N 0 V V Facilities Rights of Way ♦ T Fleet Streets&Drainage Traffic PUBLIC WORKS EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget Capital Projects 843,783 911,715 884,252 970,533 Engineering 986,341 1,162,814 1,309,037 1,342,684 Public Works Operations Administration 219,339 158,901 176,879 185,738 Traffic Operations and Maintenance 747,644 1,150,196 1,353,565 1,103,149 Custodial Services 252,637 355,016 443,464 470,568 Fleet Management 486,236 354,290 389,975 390,956 Streets&Drainage 4,829,976 4,964,212 5,401,125 5,345,357 ROW Mowing 615,557 1,453,099 1,462,102 1,594,820 Engineering and Capital Projects Administration 259,117 261,040 269,417 Facilities Management 1,351,981 1,035,605 1,286,517 1,508,260 PUBLIC WORKS TOTAL 10,592,610 11,806,888 12,976,333 12,912,065 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 4,102,444 4,525,407 4,279,865 4,482,334 Materials&Supplies 357,698 415,486 445,672 400,156 Buildings&Grounds 1,209,663 1,363,811 2,291,811 2,161,193 Repair&Equipment Maintenance 231,930 263,249 253,317 235,558 Miscellaneous Services 3,084,683 4,651,611 4,935,947 4,710,145 Inventory 38,132 24,860 Capital Outlay 1,568,059 587,324 744,861 922,679 PUBLIC WORKS TOTAL 10,592,610 11,806,888 12,976,333 12,912,065 Public Works Expenditures FY 2017 - 17.1% of the $75.3 million Operating Budget PW Operations Admin. III 0.2% Fleet Management - 0.5% Custodial Services 0.6% Capital Projects 1.3%© Traffic Oper. & Maint. 1.5% Engineering 1.8% Facilities Management 2.0% ROW Mowing 2.1% Streets& Drainage 7.1% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 126 PUBLIC WORKS 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 Division oversees Facilities Maintenance, Custodial Services, Fleet Maintenance, Traffic Operations and Maintenance, Streets & Drainage, Right-of-Way Maintenance & landscape 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, landscapes, 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 2017 include: • Roof management plan - $70,492. • Overhead door maintenance contract- $38,110. • Automatic gate maintenance contract- $18,460. • Building automation system service agreement- $13,800. • Safety training and equipment- $3,000. • Facility pressure washing — sidewalks and windows -$68,450. • Public Safety building sally port floor replacement- $21,236. • Grounds maintenance for bridges and bridge decks -$38,800. • Forklift replacement- $50,000. • Pavement markings and striping - $110,000. • Additional landscape sites - $29,173. • Replace dump truck - $99,425. • New carpet/floor cleaning equipment- $13,800. • Flaggers in work zone training - $8,514. • Replace asphalt distributor trailer- $65,595. 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. 127 PUBLIC WORKS • Develop and maintain the City's Design Criteria Manual, Specifications, Standard Details, and Infrastructure Master Plans. • Develop a strategic department growth plan that efficiently provides support to our Capital Improvement Program, the Public Works Department, Parks & Recreation Department, and other City departments. FISCAL YEAR 2016 ACCOMPLISHMENTS • Began the development of a facility condition rating system that identifies the condition of major infrastructure at City facilities and identifies the remaining useful life of each. • Managed rehabilitation of roadways identified through ROW assessment. • Selected a work order system vendor and began integration with ERP system as well as ROW Assessment and GIS. • Continued work on City-wide ITS traffic signal project upgrades. • Implemented new signal timing plans along key corridors. • Identified water and sanitary collection system infrastructure that has outlived its expected life and replace or repair those lines as resources allow. • Installed/replaced 644 linear feet of culvert pipe via City crews and contractor. • Installed/replaced 16,311 linear feet of sidewalk via sidewalk contract. • Swabbed 26,810 linear feet of ditches via City crews and contractor. • Flushed 25,458 linear feet of culvert pipe. • Filled 4,021 potholes in asphalt pavement streets. • Improved the effectiveness of our services by maintaining projects budget, scope, schedule and communication with the community, internal department partners, external partners and sponsors. • Built quality into project management processes in order to ensure the community's expectations are met and satisfaction with services are achieved. • Began the development of a Right-of-way Policy that governs the design and maintenance of all City's ROWs. • Developed a transparent mowing program and street sweeping program, which are available online via a City GIS mapping layer. • Completed the process of transitioning all right-of-way maintenance from Parks to Public Works and successfully placed all properties within a maintenance contract. FISCAL YEAR 2017 OBJECTIVES • Continue 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. • Continue rehabilitation of roadways identified through ROW assessment and funded through budget process. • Complete and adopt the Right-of-Way Policy. • Complete, adopt and implement the Open Ditch Right-of-Way Mowing Policy. • Implement a bridge & bridge deck grounds maintenance program. • 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 18,500 linear feet of sidewalk via sidewalk contract. • Swab 30,000 linear feet of ditches via City crews and contractor. • Flush 25,000 linear feet of culvert pipe. • Fill 3,000 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. 128 PUBLIC WORKS 2015 Citizen Survey 2015 Citizen Survey Results Quality Rating for Good to Excellent Public Works Services Overall Ease of Travel 50% 63% 62% 61% 111.. IlIlu 11111 ball 61% 0% 59% 57% Excellent Good Fair Poor 57% 6% •Street Repair •Street Cleaning 55% •Street Lighting •Sidewalk Maintenance 53% •Traffic Signal Timing 2009 2011 2013 2015 Pearland Citizen Survey completed every other year,therefore these results are representative of the 2015 Survey. Sidewalk Installed (Linear Feet) 35,000 32,292 30,000 25,000 20,000 18,757 15,000 14,000 16,311 10,000 5,000 0 2014 2015 2016 Projection 2017 Target PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Percent of water plants mowed within the 2-week schedule 96% 79% 66% 100% Street Sweeping in Miles 950 804 1,160 1,250 Ditch/Culvert Cleaning (in feet) 54,879 20,452 36,810 30,000 Percent of lane miles in need of repair(asphalt) 37% 37% 37% 37% Number of open sidewalk repair work orders 405 522 637 600 Number of Potholes Repaired 3,886 3,500 4,769 3,500 Culvert Pipe Installed/Replaced (Feet) 313 300 222 300 Total value of current active projects (millions) $199 $259 $305 $300* Percent of Change Orders to Total Contract Value <5% <5% <5% <5% Average number of active projects being administered 30 35 28 30 Percent of active projects started on schedule"* 81% 88% 80% 75% Percent of active projects completed on schedule** 67% 63% 75% 70% *FY17 targets do not include FY16 budgeted projects that began in FY17, or carry over into FYI 7. Based on CIP. **Based on the active number of projects being administered. 129 Director Parks and Recreation • Assistant Director t Recreation Resource Development Parks Natural Resources J T W Senior Center 41-1.• Recreation Programs Volunteer Coordinator Maintenance Outdoor Recreation Aquatics ♦O. Athletics Athletic Fields Urban Forester Special Events PARKS & RECREATION EXPENDITURE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget Administration 837,997 618,155 766,279 609,133 Recreation Center/Natatorium 2,111,380 2,371,334 2,396,551 2,102,125 Athletics 269,528 329,357 280,119 306,571 Special Events 252,477 319,682 337,339 328,866 Senior Program 218,721 283,592 273,796 289,634 Parks 1,717,029 2,616,758 2,369,948 2,212,958 Natural Resources 78,488 325,631 Aquatics 93,367 148,398 108,487 30,829 Recycling 206,422 57,475 100,918 PARKS&RECREATION TOTAL 5,706,921 6,744,751 6,711,925 6,205,747 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 3,557,102 3,987,627 3,924,016 3,693,480 Materials&Supplies 364,303 506,516 527,145 445,791 Buildings&Grounds 269,390 627,703 767,791 646,692 Repair&Equipment Maintenance 129,777 115,101 109,401 84,257 Miscellaneous Services 1,352,843 1,456,784 1,242,533 1,189,157 Inventory 5,252 0 5,515 Capital Outlay 28,254 51,020 135,524 146,370 PARKS&RECREATION TOTAL 5,706,921 6,744,751 6,711,925 6,205,747 Parks & Recreation Expenditures FY 2017 - 8.2% of the $75.3 million Operating Budget Aquatics . 0.1% Athletics 0.3% ' Natural Resources 0.3% Special Events 0.4% Senior Program 0.4% Administration 0.8% Recreation... 2.8% Parks 3.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 131 PARKS & RECREATION 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 and the Melvin Knapp Senior Center. STRATEGIC COUNCIL PRIORITY: The City aims to provide its citizens with Quality Parks, Recreation and Events. Key Budget Items for FY 2017 include: • Reclassify a Part Time Recreation Specialist to a Full Time Recreation Specialist - $10,788. 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 2016 ACCOMPLISHMENTS • Developed and implemented new youth recreational programs. • Developed and implemented active adult and senior recreational programs. • Provided inclusive transportation opportunities for those with ADA needs by collaborating with local providers and other organizations. • Hosted 2016 AAU Jr. Olympic Games for Swimming. • Implemented organic fertilization program to complement increased over-seeding efforts. • Updated park signs in accordance with adopted standards. • Reviewed & updated Parkland Dedication Ordinance. • Opened Hickory Slough Sportsplex. • Awarded host city for the 2018 and 2019 Texas Amateur Athletic Federation Winter Games of Texas. • Renovated interpretive signage at Shadow Creek Ranch Nature Trail. FISCAL YEAR 2017 OBJECTIVES • Develop a volunteer based "Park Watch" to patrol parks. • Build a GIS inventory for trails &trail amenities. • Build a GIS system for recording and tracking park and trail projects. • Create a Cultural Event Plan. • Incorporate technology into events and programs. 132 PARKS & RECREATION PERFORMANCE MEASURES Average Number of Monthly Visitors Recreation Center & Natatorium 18,000 16,180 16,000 14,740 15,190 13,160 14,000 12,506 12,500 12,500 12,361 12,0i0I 0 2014 2015 2016 Projected 2017 Target •Recreation Center 0 Natatorium Recreation Center Classes Participant Ratings Good to Excellent 100% 98% 99% 98% 96% 95% 94% 94% 92% 90% 2014 2015 2016 Projection 2017 Target Average Senior Program Participants Citizen Survey Results per Month Good to Excellent 3,500 Paths and Walking Trails 3,400 85% 3,200 2,974 3,264 ° 74% 3,000 2,719 75/0 �6=% 69% 2,800 65% 2,600 2,400 55% 2,200 45% 2,000 39% 2014 2015 2016 2017 Target 35% Projection 2009 2011 2013 2015 Pearland Citizen Survey are completed other year,therefore these results are representative of the2015 Survey. 133 • THIS PAGE INTENTIONALLY BLANK 134 WATER AND SEWER FUND FY 2017 ADOPTED BUDGET OVERVIEW The Water & Sewer Fund is an enterprise fund that includes water and sewer system operations. The fund is operated in a manner similar to private business enterprises, where costs of providing the services to the public are financed primarily through user charges. The City provides water and sewer service to approximately 36,000 residential and commercial customers. Water & Sewer revenues provide 90% 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 2017, a water and sewer revenue increase of 15.6% is required to meet the needs of the system, which consists of $946,517 from growth and $5,293,470 from rate adjustments. FY 2016 FY 2016 FY 2017 FY 2015 ORIGINAL YEAR END ADOPTED ACTUAL BUDGET AMENDED BUDGET REVENUES SALE OF WATER $15,581,945 $17,846,715 $18,500,000 $19,793,158 SEWER REVENUES 12,862,796 16,181,749 15,600,000 20,442,367 OTHER SERVICE CHARGES 1,756,051 1,617,554 1,618,750 1,604,000 INVESTMENT EARNINGS 232,170 105,000 123,500 125,000 OTHER MISCELLANEOUS INCOME 219,422 232,557 175,557 195,500 TRANSFERS IN 3,368,959 2,582,700 2,582,700 2,650,000 OTHER FINANCING SOURCES 5,718,964 423,293 TOTAL 39,740,307 38,566,275 39,023,800 44,810,025 EXPENSES UTILITY CUSTOMER SERVICES 961,043 1,173,683 1,140,963 1,283,371 INFORMATION TECHNOLOGY/GIS 119,676 175,429 226,264 466,890 OTHER REQUIREMENTS 18,221,353 17,730,759 15,060,822 19,867,217 PUBLIC WORKS OPERATIONS ADMINISTRATION 640,717 568,079 614,636 762,221 WATER/SEWER GROUNDS 416,856 439,456 431,033 406,965 LIFT STATIONS 987,956 1,398,412 1,975,104 1,628,002 WASTEWATER TREATMENT 4,842,682 4,614,742 5,826,496 6,039,220 WATER PRODUCTION 7,496,149 7,982,126 10,169,713 9,907,878 DISTRIBUTION &COLLECTION 1,799,878 2,023,112 2,595,181 2,479,306 CONSTRUCTION 559,835 733,434 827,452 789,777 WATER METER SERVICES 1,240,439 1,583,527 1,524,287 1,761,175 TOTAL 37,286,585 38,422,759 40,391,951 45,392,022 REVENUES OVER/(UNDER) EXPENSES 2,453,721 143,516 (1,368,151) (581,997) Beginning Cash Equivalents 15,373,775 11,940,401 15,624,805 14,256,654 Reserve for Debt Service 1,929,503 2,623,222 2,623,222 2,688,411 Ending Cash Equivalents $15,897,993 $9,460,695 $11,633,432 $10,986,246 Bond Coverage- 1.4 0.65 1.50 1.65 Cash Reserve Ratio-25% 43% 29% 26% 135 WATER AND SEWER FUND REVENUE & EXPENSE SUMMARY FY 2017 ADOPTED BUDGET FISCAL YEAR 2015-2016 Projected revenues of$39,023,800 are $457,525, or 1.2%, more than the original budget and $716,507, or 1.8%, less than the fiscal year 2015 actual of $39,740,307. The fiscal year 2016 projected revenue is higher than the original budget due to the increase in water usage. Revenues from the sale of water and sewer services are projected to be $71,536 or 0.2% higher than budgeted. Other service charges are projected to come in slightly more than the original budget amount. Fiscal Year 2016 expenses are anticipated to be $40,391,951. This is $1,969,192 more than the original budget of$38,422,759, as water purchases have increased. Expenses are $3,105,366 higher than the fiscal year 2015 actual. Projected expenses in water production were higher than the previous year due to an increase in water purchases for residential and commercial use. The ending balance at September 30, 2016 is estimated to be $11,633,432 with a 29% cash reserve ratio and a bond coverage of 1.5. FISCAL YEAR 2016-2017 Fiscal Year 2017 revenues total $44,810,025 , an $5,786,225 increase from the fiscal year 2016 projections and a $6,243,750 increase from fiscal year 2016 original budget. Water and sewer charges increased by $6,135,525, or 15.7%, over the 2016 projections. This is mainly due to an anticipated revenue increase of 15.6%, or$5,293,470, and an increase in customer growth of 2.5% or$946,517. Fiscal year 2017 expenses total $45,392,022 and include annual debt service payments of $15,638,601 million, an increase of$4.56 million from fiscal year 2016. Expenses are $5,000,071 or 12.4%, higher than the fiscal year 2016 projections and are $6,969,263, or 18.1%, higher than the original budget. Enhancements to the budget total $736,707, $185,126 recurring and $551,581 non-recurring. Enhancements include additional funding for a backflow compliance program ($142,553), replacing two Kubota excavators ($108,422), a chemical vacuum feed system ($60,000), variable frequency drives for return activated sludge pumps at Barry Rose WRF ($35,000), UV system for JHEC WRF ($70,000), well point equipment trailer ($68,080), water reclamation facility building repairs ($100,000), level indicator for bleach and bi-sulfite tanks at Longwood WRF ($20,000), a ditch witch water valve and hydrant program machine replacement ($43,590) and sewer line camera replacement ($8,500). The budget anticipates two water/sewer bond sales; one totaling $47.37 million to fund infrastructure improvements in the capital improvement program. The second is TWDB financing in the amount of$17.5 million for Surface Water Plant Phase 1 and Water Meter Change-out. Available ending balance at September 30, 2017 is expected to be $10,986,246. Even with the 15.6% revenue increase, expenditures exceed revenues by $581,997. Bond coverage is 1.65 and cash reserves are 26%. Based on a 15.6% revenue increase and changes to the overall rate structure, monthly bills based on consumption scenarios are as follows: RESIDENTIAL 5/8" or 3/4" METER WITH SEWER CAP OF 6,000 GALLONS Consumption Current 2017 Amount Bill Bill Changed Base (0-2,000) $31.22 $34.64 $ 3.42 6,000 $61.02 $67.20 $ 6.18 8,000 $69.72 $76.08 $ 6.36 10,000 $78.42 $84.96 $ 6.54 • 15,000 $100.17 $107.16 $ 6.99 136 WATER AND SEWER REVENUES FY 2017 Interest Income 0.3% Other Misc. Income ' 0.5% Other Service 3.6% Charges Transfers In 5.9% Sale of Water 44.1% Sewer Revenues 45.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% WATER AND SEWER EXPENSES FY 2017 Lift Stations ] 0.9% IT 1.0% Water Meter Services I 1.7% Administration 1.7% Utility Customer Services 2.8% Wastewater Treatment J 3.6% ROW Mowing 3 9% Construction 5.5% Water Production 13.3% Distribution &Collection lir 21 8% Other Requirements 43.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 137 WATER AND SEWER FUND REVENUES FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 ORIGINAL YEAR END ADOPTED ACCOUNT NUMBER REVENUE CATEGORY ACTUAL BUDGET AMENDED BUDGET 600-000-000.3600.010 Interest Earnings 140,069 105,000 123,500 125,000 600-000-000.3600.040 Unrealized Gain/Loss 92,101 *INVESTMENT EARNINGS 232,170 105,000 123,500 125,000 600-000-000.3800.080 Phone& Fax Reimbursement 3,488 3,557 3,557 3,500 600-000-000.3800.140 Sale of Property 9,000 9,000 9,000 *MISCELLANEOUS 3,488 12,557 12,557 12,500 600-000-000.4000.040 Capital Lease Proceeds 423,293 600-000-000.4000.050 Contributed Capital 5,718,964 *OTHER FINANCING SOURCES 5,718,964 423,293 600-000-000.3900 Transfers In 3,368,959 2,582,700 2,582,700 2,650,000 *TRANSFERS IN 3,368,959 2,582,700 2,582,700 2,650,000 600-130-390.3500.330 Water Sales 15,581,945 17,846,715 18,500,000 19,793,158 600-130-390.3500.340 Sewer Charges 12,862,796 16,181,749 15,600,000 20,442,367 600-130-390.3500.350 Sanitation Billing Fee 379,432 390,054 330,000 330,000 600-130-390.3500.360 Connection Fee 183,256 170,200 175,000 175,000 600-130-390.3500.370 Water Tap Fee 578,628 450,000 450,000 450,000 600-130-390.3500.380 Sewer Tap Fee 8,862 5,000 5,000 5,000 600-130-390.3500.390 Late Payment Fee 529,284 510,000 565,000 550,000 600-130-390.3500.400 Meter Set Fee 3,950 2,700 2,500 2,500 600-130-390.3500.410 Curb Stop Replacement Fee 482 500 500 500 600-130-390.3500.420 Reconnect Fee 32,175 45,400 40,000 40,000 600-130-390.3500.430 Grease Trap Fee 39,408 40,500 50,000 50,000 600-130-390.3500.440 Miscellaneous 575 3,200 750 1,000 *CHARGES FOR SERVICE 30,200,792 35,646,018 35,718,750 41,839,525 600-130-390.3800.160 NSF Fees 6,868 9,000 8,000 8,000 *MISCELLANEOUS 6,868 9,000 8,000 8,000 600-305-100.3800.100 Recycle 94,988 106,000 95,000 100,000 600-305-100.3800.270 Miscellaneous 114,078 105,000 60,000 75,000 *MISCELLANEOUS 209,066 211,000 155,000 175,000 TOTAL 39,740,307 38,566,275 39,023,800 44,810,025 138 WATER AND SEWER FUND EXPENSE SUMMARY FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENSES BY DEPT/DIVISION Actual Budget Amended Budget Utility Customer Service 961,043 1,173,683 1,140,963 1,283,371 Information Technology/GIS 119,676 175,429 226,264 466,890 Other Requirements 18,221,353 17,730,759 15,060,822 19,867,217 Public Works Public Works Administration 640,717 568,079 614,636 762,221 Water/Sewer Grounds 416,856 439,456 431,033 406,965 Lift Stations 987,956 1,398,412 1,975,104 1,628,002 Water Reclamation 4,842,682 4,614,742 5,826,496 6,039,220 Water Production 7,496,149 7,982,126 10,169,713 9,907,878 Distribution &Collection 1,799,878 2,023,112 2,595,181 2,479,306 Construction 559,835 733,434 827,452 789,777 Water Meter Services 1,240,439 1,583,527 1,524,287 1,761,175 Sub-Total Public Works 17,984,513 19,342,888 23,963,902 23,774,544 WATER&SEWER FUND TOTAL 37,286,585 38,422,759 40,391,951 45,392,022 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENSES BY CATEGORY Actual Budget Amended Budget Salaries&Wages 5,810,737 6,451,789 6,494,280 6,946,836 Materials&Supplies 6,437,414 6,645,763 8,216,422 8,938,479 Building &Grounds 61,619 90,621 121,640 110,340 Repair&Maintenance 1,867,263 1,726,494 3,026,597 2,800,746 Miscellaneous Services 4,525,724 5,154,855 5,767,363 5,822,094 Inventory 78,911 24,200 29,200 25,000 Transfers/Other Charges 17,890,850 17,491,037 14,765,347 19,585,935 Capital Outlay 614,066 838,000 1,971,102 1,162,592 WATER&SEWER FUND TOTAL 37,286,585 38,422,759 40,391,951 45,392,022 139 Director Public Works Water & Sewer ♦ i ♦ � Assistant Director Water&Sewer Water Production Waste Water 110 Distribution&Collection Treatment Construction ♦ Maintenance Utility Meter Service PUBLIC WORKS - UTILITIES OVERVIEW Within the Water and Sewer Fund, the Public Works Administration Department oversees Lift Stations, Wastewater Treatment, Water Production, Distribution and Collection, Construction, Water Meter Services and Public Works Water and Sewer Right of Way Mowing. These divisions manage all water facilities, including, but not limited to 80 lift stations and 5 treatment plants. In addition to managing the above, the Lift Station division oversees the odor control operation and provides troubleshooting and programming to the SCADA system for this division. The Wastewater Treatment division provides sludge disposal services, laboratory testing, compliance documentation and reporting to maintain compliance with TCEQ regulations, and general plant maintenance and repairs. Water Production 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 2017 Include: • Addition of Backflow Compliance Manager- • Well point Equipment Trailer- $68,080 $142,553 • Wastewater Treatment Plant building repair - • Replace two Kubota Excavators- $108,422 $100,000. • Chemical Vacuum Feed System for Liberty and • Level indicator for bleach and bi-sulfite tanks at Magnolia Water Facilities- $60,000 Longwood WRF - $20,000. • Variable frequency drives for return activated • Contracted ground maintenance for treatment sludge pumps at Barry Rose Water Reclamation plants- $226,740 Facility (WRF)- $35,000 • Ditch Witch water valve & hydrant program • Ultraviolet Disinfection System Replacement at machine replacement-$43,590. JHEC WRF - $70,000 • Sewer line camera replacement- $8,500 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 to minimize cost of water loss while maintaining a high level of service. • Identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace or repair those lines as resources allow. • Maintain 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 wastewater treatment facilities to reduce unplanned excursions 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. • Maintain sanitary collection system in a manner to reduce unplanned overflows. FISCAL YEAR 2016 ACCOMPLISHMENTS • Continued to identify water and sanitary lines that have outlived their expected life or are likely to fail, and replace or repair those lines as resources allow. • Installed vacuum chemical feeder at 521 water production facility. • Water line cleaning, pigging at various locations. • Demolish old Fire Stations 3 &4. 141 PUBLIC WORKS - UTILITIES • Sanitary Sewer Project on Mclean Road. • Orange Street and Linwood water line Improvement. • Interconnect Meter installed with Clear Brook MUD. FISCAL YEAR 2017 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. • Build new compliant containment walls for chemical tanks at all water facilities. • Internally rehab one bolted ground water storage tank at the Garden Road water facility. • Internally rehab two welded ground water storage tanks - Kirby Drive water facility, Magnolia water facility. • Install new water lines on North Washington Ave., North Sam Antoine Ave., and North Pearland Ave. • Repair sewer main lines for Tranquility Lakes lift stations. Water Produced and Water Purchased 3,000 2,470 2,484 2,484 , 2,500 2,200 c 2,133 2,107 o I E2,000 1,692 1,855 ■Water Produced 1,500 O Water Purchased I 1,000 500 2014 2015 2016 Projection 2017 Target Citizen Survey Ratings Citizen Survey Ratings Good to Excellent Good to Excellent Ratings of Drinking Water Ratings of Sewer Services 80% 90'io 86% 75% 73% 84% 69% 85% 83% 68% 70% 80% 64% 80% 65% 60% 75% 2009 2011 2013 2015 2009 2011 2013 2015 Pearland Citizen Surveys are completed every other year,therefore these results are representative of the 2015 Survey. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Wastewater gallons treated in billion gallons 2.493 3.331 3.513 3.724 Cost per gallon to treat wastewater $0.0015 $0.0014 $0.0017 $0.0016 Water main installation (feet) 1,615 4,650 10,000 15,000 Sewer main installation (feet) 0 350 200 400 Cost per gallon of water purchased $0.0023 $0.0019 $0.0020 $0.0020 Percent of time Waste Water Treatment Plant over capacity 61% 71% 20% 0% 142 FINANCE UTILITY CUSTOMER SERVICES OVERVIEW Utility Customer Services (Utility Billing) reports to the Director of Finance 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 2017 Include: • Added 1 FT Customer Service Representative and moved 2 PT to 1 FT- $80,562. 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 collections. FISCAL YEAR 2016 ACCOMPLISHMENTS • Implemented 16% revenue increase through newly adopted utility rate. • Worked with waste service contractor to improve consistent service performance for residents and customers. • Increased messaging to customers relating to services and topics of interest provided by Water Billing & Collections Department. • Refreshed staff training of customer service through introduction and reinforcement of"The Pearland Way." • Transitioned 1 part-time staffer to full time employee. FISCAL YEAR 2017 OBJECTIVES • Complete implementation of New World ERP Utility Management Software. • Prepare process documentation and system account clean-up for ERP Implementation in March 2016, with plans for full "go live" conversion to New World Systems by January 30, 2017. • Continue staff development customer service and Excel pivot table training. • Improve customer engagement through all contact channels. • Produce call center data analytics for continuous process improvements. PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Projection Target Annual meter reads 414,449 428,265 445,154 457,154 Percent of payments processed on-line 45% 50% 60% 66% Number of cut-offs 1,061 1,284 1,217 1,250 143 ENTERPRISE FUND DEBT MATURITY SCHEDULE FY 2017 ADOPTED BUDGET ENTERPRISE FUND DEBT GENERAL OBLIGATION REVENUE BONDS & REFUNDING SERIES Year Principal Interest Total Year Principal Interest Total 2016-2017 7,630,000 5,129,557 12,759,557 2016-2017 2,415,000 344,000 2,759,000 2017-2018 7,785,000 4,872,383 12,657,383 2017-2018 2,515,000 232,188 2,747,188 2018-2019 7,960,000 4,692,911 12,652,911 2018-2019 365,000 171,700 536,700 2019-2020 8,150,000 4,505,839 12,655,839 2019-2020 370,000 157,000 527,000 2020-2021 8,405,000 4,303,479 12,708,479 2020-2021 370,000 142,200 512,200 2021-2022 8,460,000 4,086,641 12,546,641 2021-2022 385,000 127,100 512,100 2022-2023 8,680,000 3,861,141 12,541,141 2022-2023 395,000 111,500 506,500 2023-2024 7,860,000 3,622,448 11,482,448 2023-2024 1,480,000 74,000 1,554,000 2024-2025 8,130,000 3,400,993 11,530,993 2024-2025 1,480,000 22,200 1,502,200 2025-2026 8,625,000 3,158,976 11,783,976 2025-2026 2026-2027 8,940,000 2,824,604 11,764,604 2026-2027 2027-2028 9,275,000 2,472,912 11,747,912 2027-2028 2028-2029 9,610,000 2,127,407 11,737,407 2028-2029 2029-2030 9,925,000 1,795,640 11,720,640 2029-2030 2030-2031 10,245,000 1,448,009 11,693,009 2030-2031 2031-2032 6,300,000 1,085,239 7,385,239 2031-2032 2032-2033 6,510,000 862,255 7,372,255 2032-2033 2033-2034 6,715,000 637,977 7,352,977 2033-2034 2034-2035 3,840,000 403,087 4,243,087 2034-2035 2035-2036 3,040,000 305,199 3,345,199 2035-2036 2036-2037 2,635,000 243,092 2,878,092 2036-2037 2037-2038 2,305,000 192,577 2,497,577 2037-2038 2038-2039 2,340,000 152,966 2,492,966 2038-2039 2039-2040 1,700,000 111,746 1,811,746 2039-2040 2040-2041 1,700,000 93,556 1,793,556 2040-2041 2041-2042 1,700,000 75,196 1,775,196 2041-2042 2042-2043 1,700,000 56,666 1,756,666 2042-2043 2043-2044 1,700,000 37,966 1,737,966 2043-2044 2044-2045 1,705,000 19,096 1,724,096 2044-2045 TOTAL 173,570,000 56,579,557 230,149,557 TOTAL 9,775,000 1,381,888 11,156,888 Series Name Outstanding General Obligation Improvement and Refunding Bonds 2009* 4,220,000 Water&Sewer Revenue Bonds Series 1999 2,300,000 Water&Sewer Revenue Bonds Series 2006 8,715,000 Water&Sewer Revenue Bonds Series 2007 33,730,000 Water&Sewer Revenue Bonds Series 2008 13,125,000 Water&Sewer Revenue Bonds Series 2009 10,555,000 Water&Sewer Revenue Bonds Series 2010A 11,690,000 Water&Sewer Refunding Bonds Series 2010B 7,150,000 Permanent Improvement Refunding Bonds Series 2012* 5,555,000 Water&Sewer Revenue Bonds Series 2012 7,360,000 Water&Sewer Revenue Bonds Series 2014 8,865,000 Water&Sewer Revenue Bonds Series 2016 8,880,000 Water&Sewer Revenue Bonds Series 2016E(TWDB) 11,100,000 Water&Sewer Revenue Bonds Series 2016C(TWDB) 50,100,000 TOTAL 183,345,000 *Excluding portion associated with General Fund. **Does not include new debt anticipated to be issued in fiscal year 2017 or in the future. 144 ENTERPRISE FUND DEBT TO MATURITY FY 2017 ADOPTED BUDGET REVENUE BONDS $14,000,000 $12,000,000 - $10,000,000 - — — $8,000,000 - — — _ _ _ — $6,000,000 - $4,000,000 - = $2,000,000 - o<1 o<lb o,,c5 o`1°oti�oti�oti°otib'o(to oI)oti�o'ti°ocfb o`°o'b''o'bri"o'br o'b°`orbb o050 o4 o'b°o`rizb cp°cP�cP�ob� o°�' ti et et et ti et ti ti ti ti ti e ti ti ti et <1 et ti et ti ti ti ti ti et, et, ti eV ■Principal o Interest GENERAL OBLIGATION* $3,000,000 $2.500,000 $2,000,000 $1.500.000 $1,000,000 $500,000 SO 2017 2018 2019 2020 2021 2022 2023 2024 2025 o Principal ❑Interest * Issued as General Obligation, but paid for by water and sewer rates. 145 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET AMOUNT AMOUNT PAYMENT OUTSTANDING DATE DESCRIPTION ISSUED PRINCIPAL INTEREST TOTAL AS OF 9/30/17 3/1/2017 Series 1999 Revenue Bond 4,000,000 52,900 52,900 9/1/2017 540,000 52,900 592,900 Fiscal Year Total 540,000 105,800 645,800 1,760,000 3/1/2017 Series 2006 Revenue Bond 13,845,000 217,022 217,022 9/1/2017 100,000 217,022 317,022 Fiscal Year Total 100,000 434,044 534,044 8,615,000 3/1/2017 Series 2007 Revenue Bond 40,135,000 755,394 755,394 9/1/2017 950,000 755,394 1,705,394 Fiscal Year Total 950,000 1,510,788 2,460,788 32,780,000 3/1/2017 Series 2008 Revenue Bond 14,950,000 307,895 307,895 9/1/2017 315,000 307,895 622,895 Fiscal Year Total 315,000 615,790 930,790 12,810,000 3/1/2017 Series 2009 Permanent Improvement 11,660,000 2,065,000 97,613 2,162,613 9/1/2017 and Refunding Bonds* 45,988 45,988 Fiscal Year Total 2,065,000 143,600 2,208,600 2,155,000 3/1/2017 Series 2009 Revenue Bond 13,130,000 261,406 261,406 9/1/2017 410,000 261,406 671,406 Fiscal Year Total 410,000 522,813 932,813 10,145,000 3/1/2017 Series 2010A Revenue Bond 14,040,000 240,116 240,116 9/1/2017 425,000 240,116 665,116 Fiscal Year Total 425,000 480,231 905,231 11,265,000 3/1/2017 Series 2010B Refunding Bond 8,970,000 136,597 136,597 9/1/2017 385,000 136,597 521,597 Fiscal Year Total 385,000 273,194 658,194 6,765,000 3/1/2017 Permanent Improvement and 6,230,000 350,000 103,700 453,700 9/1/2017 Refunding Bond Series 2012* 96,700 96,700 Fiscal Year Total 350,000 200,400 550,400 5,205,000 3/1/2017 Series 2012 Revenue Bond 8,670,000 105,578 105,578 9/1/2017 755,000 105,578 860,578 Fiscal Year Total 755,000 211,155 966,155 6,605,000 3/1/2017 Series 2014 Revenue Bond 9,210,000 158,409 158,409 9/1/2017 210,000 158,409 368,409 Fiscal Year Total 210,000 316,819 526,819 8,655,000 3/1/2017 Series 2016 Revenue Bond 8,880,000 187,284 187,284 9/1/2017 445,000 124,856 569,856 Fiscal Year Total 445,000 312,141 757,141 8,435,000 3/1/2017 Series 2016B Revenue Bond(TWDB) 11,100,000 4,326 4,326 9/1/2017 1,235,000 3,762 1,238,762 1,235,000 8,088 1,243,088 9,865,000 3/1/2017 Series 2016C Revenue Bond(TWDB) 50,100,000 181,163 181,163 9/1/2017 1,860,000 157,533 2,017,533 1,860,000 338,696 2,198,696 48,240,000 TOTAL 214,920,000 10,045,000 5,473,558 15,518,558 173,300,000 *Excludes General Fund Component. Does not include new debt anticipated to be issued. 146 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET Date Amount Issued Amount Outstanding Description Rate Maturity Issued As Of 9/30/17 Annual Requirements Water&Sewer 4.60% 1999 4,000,000 1,760,000 3/1/2017 52,900 Interest Revenue Bond 2020 9/1/2017 52,900 Interest Series 1999 9/1/2017 540,000 Principal Water&Sewer 4.5%,4.3%,4.375%,4.625% 2006 13,845,000 8,615,000 3/1/2017 217,022 Interest Revenue Bond 4.75%, 5.0%,5.125%,4.88%, 2031 9/1/2017 217,022 Interest Series 2006 9/1/2017 100,000 Principal Water&Sewer 5.5%, 5.25%,5%,4.5% 2007 40,135,000 32,780,000 3/1/2017 755,394 Interest Revenue Bond 3.5%,4.48% 2031 9/1/2017 755,394 Interest Series 2007 9/1/2017 950,000 Principal Permanent Imp 2.0%,2.50%,2.75%,5.0%, 2009 11,660,000 2,155,000 3/1/2017 97,613 Interest and Refunding 4.0% 2018 3/1/2017 2,065,000 Principal Bonds 2009* 9/1/2017 45,988 Interest Water&Sewer 3.25%,4.125%,4.2%,4.5% 2008 14,950,000 12,810,000 3/1/2017 307,895 Interest Revenue Bond 4.3%, 5.0%,4.67% 2034 9/1/2017 307,895 Interest Series 2008 9/1/2017 315,000 Principal Water&Sewer 1.6%, 2.05%,2.13%,2.45% 2009 13,130,000 10,145,000 3/1/2017 261,406 Interest Revenue Bond 2.64%,2.86%,3.08%,3.35% 2034 9/1/2017 261,406 Interest Series 2009 3.60%, 3.85%,4.10%,4.45% 9/1/2017 410,000 Principal 4.65%,4.81%,5.0%,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 11,265,000 3/1/2017 240,116 Interest Revenue Bond 3.13%, 3.25%,3.50,4.0%,4.25% 2035 9/1/2017 240,116 Interest Series 2010A 4.375%,4.50%,4.08% 9/1/2017 425,000 Principal Water&Sewer 1.75%,2.0%,2.50%,3.0% 2011 8,970,000 6,765,000 3/1/2017 136,597 Interest Refunding Bond 3.13%,3.25%,3.50%,4.0% 2023 9/1/2017 136,597 Interest Series 2010B 4.13%,4.25%,4.38%,4.50% 9/1/2017 385,000 Principal 3.69% Per. Improv.& 3.0%,4.0%, 5.0%, 3.72% 2012 6,230,000 5,205,000 3/1/2017 103,700 Interest Refunding Bond 2025 9/1/2017 96,700 Interest Series 2012* 9/1/2017 350,000 Principal Water&Sewer 2.0%, 3.0%,3.10%,3.25%, 2012 8,670,000 6,605,000 3/1/2017 105,578 Interest Revenue Bond 3.375%,3.5%, 3.625%, 3.07% 2037 9/1/2017 105,578 Interest Series 2012 9/1/2017 755,000 Principal Water&Sewer 2.0%, 3.0%, 3.125%, 3.25% 2014 9,210,000 8,655,000 3/1/2017 158,409 Interest Revenue Bond 3.375%, 3.50%,3.625%,4.0% 2039 9/1/2017 158,409 Interest Series 2014 9/1/2017 210,000 Principal Water&Sewer 2016 8,880,000 8,435,000 3/1/2017 187,284 Interest Revenue Bond 2036 9/1/2017 124,856 Interest Series 2016 9/1/2017 445,000 Principal Water&Sewer 0.09%,0.20%,0.32% 2016 11,100,000 9,865,000 3/1/2017 4,326 Interest Revenue Bond 2025 9/1/2017 3,762 Interest Series 2016B 9/1/2017 1,235,000 Principal 147 ENTERPRISE FUND DEBT SERVICE SCHEDULE FY 2017 ADOPTED BUDGET Date Amount Issued Amount Outstanding Description Rate Maturity Issued As Of 9/30/17 Annual Requirements Water& Sewer 0.09%,0.20%,0.32%,0.43% 2016 50,100,000 48,240,000 3/1/2017 181,163 Interest Revenue Bond 0.54%,0.59%,0.640%,0.70% 2045 9/1/2017 157,533 Interest Series 2016C 0.76%,0.82%,0.87%,0.92% 9/1/2017 1,860,000 Principal 0.96%, 1.0%, 1.02%, 1.04% 1.06%, 1.07%, 1.08%, 1.09% 1.10%, 1.110%, 1.120% TOTAL 214,920,000 173,300,000 15,518,558 *Excludes General Fund Component. Does not include new debt anticipated to be issued. 148 SOLID WASTE FUND SUMMARY OF REVENUES, EXPENSES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Solid Waste Enterprise Fund is used to account for residential and commercial solid waste. Governmental Accounting Standards state that the enterprise fund type may be used to account for operations that are financed and operated in a manner similar to private business, where the intent is that the costs of providing goods and services be financed or recovered through user charges. Services include the pick-up of residential solid waste twice a week, curbside recycling once a week and green waste pick-up. Residential curbside HHW pick-up is also provided by appointment, free of charge. Exclusive commercial solid waste pick-up is provided for in the contract, however the contractor directly bills and collects from the commercial customers. Commercial service ranges from once a week to daily with a variety of container sizes available, based on individual customer needs. The City's contract with Waste Management, awarded in 2006 was renewed in 2011, with an amendment in December 2013, and 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 2016 projection is based on a current rate of $17.48 per household per month from October through December, $17.52 from January through September pursuant to quarterly fuel adjustments provided for in the Waste Management contract. The fiscal year 2017 budget assumes no change to the base rate effective October 2016, based on CPI in April 2016, and includes growth in the customer base of 75 to 95 new units per month. No rate adjustments for fuel are included. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget OPERATING REVENUES Sales Tax Discount $2,734 $2,758 $2,758 $2,700 Charges for Services 6,601,742 6,818,144 6,731,865 7,145,789 Miscellaneous 32,668 8,200 100 1,000 Interest Income 1,379 1,895 1,375 1,375 TOTAL 6,638,524 6,830,997 6,736,098 7,150,864 OPERATING EXPENSES Miscellaneous Services 6,412,262 6,818,144 6,833,455 7,145,789 Other Expenses 4,896 13,320 Inter-fund Transfers 340,000 TOTAL 6,757,158 6,831,464 6,833,455 7,145,789 REVENUES OVER(UNDER) EXPENSES (118,635) (467) (97,357) 5,075 BEGINNING CASH EQUIVALENTS 212,401 68,515 93,766 (3,591) ENDING CASH EQUIVALENTS $93,766 $68,048 ($3,591) $1,484 149 SOLID WASTE 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 2016 ACCOMPLISHMENTS • Improved communication protocols to ensure completion of routes by deadlines. • Discontinued service to customers with payment and account delinquencies. • Outsourced recycling management and activities to the Keep Pearland Beautiful non-profit organization. FISCAL YEAR 2017 OBJECTIVES • Improve customer service performance through the implementation of dedicated measures to direct accountholders to the proper point of contact for complaints, service adjustments and dispute resolution. • Expand local recycling capabilities to include the ability to accept textile products at the Stella Roberts Recycle Center, as operated by Keep Pearland Beautiful (KPB). • Support contract provider efforts to improve trash and curbside recycling activities through increased automation and apparatus innovations. Tons of Curbside Tons of Solid Waste Land-Filled Green Waste Recycled 76000 74,750 3200 74000 3,000 70,680 3000 2,914 72000 70,757 2800 70000 68,164 2,590 68000 2600 66000 2400 64000 2200 62000 60000 2000 2013 2014 2015 2016 Target 2014 2015 2016 Projection Projection 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% *Pearland Citizen Surveys are completed every other year, so no update is available for these measures at this time. 150 CAPITAL PROJECT FUNDS The Capital Projects Funds are used to account for specific revenues that are legally restricted for particular purposes. A description of the individual Capital Projects Funds follows and the budget schedules can be found following this document. Fund 500 Pay-As-You-Go (formerly Fund 050) —A fund to pay for non-water and sewer projects in a pay-as-you-go (cash) basis. Fund 501 Certificates of Obligation (formerly Fund_068) —A fund created to pay for non-water and sewer projects being funded by Certificates of Obligation. Fund 502 Mobility Bonds (formerly Fund 070)—A fund used to account for mobility projects. Fund 503 Certificates of Obligation Series 2006 (formerly Fund 200)—A fund set up to pay for non-water and sewer projects being funded by 2006 Series Certificates of Obligation. Fund 504 Certificates of Obligation Series 2007 (formerly Fund 201)—A fund set up to pay for non-water and sewer projects being funded by 2007 Series Certificates of Obligation. Fund 505 General Obligation Series 2007A (formerly Fund 202) — A fund set up to pay for non-water and sewer projects being funded by 2007A Series General Obligation bonds. Fund 506 General Obligation Series 2009, 2010, 2011, 2014 (formerly Fund 203) — A fund set up to pay for non- water and sewer projects being funded by 2009, 2010, 2011, 2014 and future Series General Obligation bonds. Fund 550 Utility Impact Fee (formerly Fund 042)—A fund created to account for impact fees collected and water and sewer projects from the development of property based on the impact to the water and sewer system. Fund 555 Shadow Creek Ranch Impact Fee (formerly Fund 044) — A fund created to account for those fees collected and water and sewer projects from the development of property in the Shadow Creek Ranch area based on the impact to the water and sewer system. Fund 560 Certificates of Obligation Series 1998 (formerly Fund 064)—A fund set up to pay for those projects being funded by 1998 Series Certificates of Obligation. Fund 565 Water & Sewer Revenue Bonds (formerly Fund 067) —A fund set up to pay for water and sewer projects being funded by Revenue Bonds. Fund 570 Water& Sewer Pay-As-You-Go(formerly Fund 301)—A fund set up to pay for water and sewer projects in a pay-as-you-go (cash) basis. Fund 575 MUD 4 Capital Program (formerly Fund 302)—A fund created to pay for projects in the old MUD 4 area. 151 CAPITAL PROJECT FUNDS FY 2017 ADOPTED BUDGET Capital Project Funds are created to account for the acquisition or construction of major capital activities. Funding is provided through the issuance of debt, developer fees, state and federal funding, user fees, general fund and utility revenues, and interest income. The City maximizes every source of funding available and is constantly looking at leveraging funding through the use of federal, state and county dollars. Currently the City is working on several street improvement and trail projects that have received H-GAC TIP State and Federal funds in the amount of $155 million. These projects are in various phases and will be completed over the next several years. Pearland places significant importance on infrastructure improvement and rehabilitation, as evidenced by a $162 million bond referendum that passed in May 2007, as well as a Five-Year CIP (2017 - 2021) totaling $545.4 million. The Five-Year CIP completes the 2007 bond referendum in 2021, due to the letting of TIP projects. New/proposed capital needs in the amount of $114,709,239 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 $69,680,555, which is used in the Five-Year CIP and forecast. The target for the next bond referendum is when the City reaches approximately $8 billion in taxable property valuation so as to not have an increase in the debt service tax rate. The first year of the Five-Year Capital Improvement Program is incorporated into the annual budget to appropriate funds. Capital projects for fiscal year 2016 - 2017 total $100,225,962, excluding transfers and bond issuance costs. ( Fiscal Year 2016-2017 CIP Uses by Project Type ($in millions) Parks 7 $4.37 Facilities $5.90 Drainage $8.22 Streets $28.36 Water/Sewer $53.38 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 Fiscal Year 2016-2017 CIP Funding Sources($in millions) General Revenue-Cash l $0.05 PEDC Q $0.45 i System Revenues-Cash p $0.80 Certificates of Obligation 111111111.1 $5.88 Impact Fees- Debt $9.11 Other Funding Sources $12.05 General Obligation... $21.15 W/S Revenue Bonds $28.99 $0.00 $10.00 $20.00 $30.00 $40.00} 152 Water/Sewer projects total $53.38 million, or 53.3%, of the capital improvement program for FY 2017. Major projects include the installation of approximately 7,500 feet of 16" waterline along Almeda Road from Broadway to Mooring Point, installation of a waterline extension along McHard Road from Cullen Parkway to Mykawa Road, installation of approximately 3,000 LF of 12" waterline along Hughes Ranch Road from CR 94 to Cullen Parkway, replacement 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, design of a third ground storage tank and related piping and controls to work in conjunction with the McHard Road water transmission line, the first half of the water meter change out program, 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 WRF, design for the expansion of the Barry Rose WRF from 3.1 MGD to 4.5 MGD, the retirement of Orange Mykawa Lift Station, and the relocation of the Mykawa Scott Lift Station. Street projects total $28.36 million, or 28.3%, of the total FY 2017 capital improvement program and include funding for the right-of-way and construction of a 3.5 mile extension of McHard Road from Mykawa Road to Cullen Parkway, design of approximately 3 miles of 4-lane concrete curb and gutter divided Mykawa Road Widening from Beltway 8 to FM 518, and the right-of-way purchase to extend Smith Ranch Road from Hughes Ranch Road to Broadway. Also included is the widening of Max Road from the future Hughes Ranch alignment and connecting with Reid Boulevard and the design of SH 288 Northbound Frontage Road from CR 59 to FM 518. 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 and East Orange Street reconstruction from Main Street to Shlieder Drive. Mykawa, Max, McHard, Smith Ranch Road and SH 288 Northbound Frontage Road are 80% funded by HGAC TIP funds. Facilities total $5.9 million, or 5.9%, and include 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 construction of the relocation of Fire Station #1 will begin. Drainage projects total $8.22 million, or 8.2%, of the total and include $3,795,406 for the construction of a sub- regional detention pond and conveyance system for the Southeast Quadrant of Old Townsite Drainage and $2,770,232 for the construction of the Corrigan Ditch Sub-Basin of Mary's Creek Drainage improvements. Funding for the improvements of the drainage system from Linwood to Old Alvin along Orange Street is also included this year. Parks projects total $4.4 million, or 4.4%, of the total. 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. The construction of Independence Park Phase I, which will include the re- orientation 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 $20.59 million to fund infrastructure improvements in the capital improvement program, and the second is TWDB financing in the amount of $17.5 million for the preliminary engineering report for the Surface Water Plant Phase I and Water Meter Change-out. For the remaining $45.88 million, the City anticipates selling $21.15 million in GO Bonds approved by the voters in 2007 and selling Certificates of Obligation in the amount of$5.88 million mainly for facility projects not anticipated with the 2007 bond referendum but needed for Public Safety (Fire Station #1), Library, Park improvements (Independence and Green Tee Trail) and Street enhancements (SH 288 Northbound Frontage Road). A total of $8.17 million will come from HGAC Transportation Improvement Program funds and developer contributions, mainly for street projects. Cash and future bonds proceeds make up the remaining sources. 153 CAPITAL PROJECT FUNDS SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES FY 2017 ADOPTED BUDGET Governmental Fund Fund Fund Fund Fund Fund 500 Fund 501 502 503 504 505 Fund 506 Total Revenues: Interest Income 2,500 4,500 35,000 42,000 Bond Proceeds 5,370,300 21,653,085 27,023,385 Impact Fees Miscellaneous 2,770,232 2,770,232 Intergovernmental 400,000 8,050,134 8,450,134 Transfers In 100,000 1,296,258 481,331 1,877,589 Total Revenues 102,500 7,071,058 32,989,782 40,163,340 Expenditures: Drainage 7,065,638 7,065,638 Parks 500,000 3,866,557 4,366,557 Facilities 100,000 5,801,170 5,901,170 Streets 6,300,000 22,058,947 28,358,947 Water Sewer Total Projects 100,000 12,601,170 32,991,142 45,692,312 Issuance Costs 100,000 100,000 Other Non-Operating Transfers Out 161,279 358,533 481,331 400,463 1,401,606 Total Non-Operating 161,279 458,533 481,331 400,463 1,501,606 Total Expenditures 261,279 13,059,703 481,331 33,391,605 47,193,918 Revenues Over/ (Under)Expenditures (158,779) (5,988,645) (481,331) (401,823) (7,030,578) BEGINNING BALANCE 481,669 6,040,015 51 481,331 2,496 406,719 7,412,281 ENDING BALANCE $322,890 $ 51,370 $ 51 $ 0 $ 0 $ 2,496 $ 4,896 $ 381,703 Note- Each fund may have different restrictions or assignments based on funding source, therefore ending balances may not be available for other purposes. 154 CAPITAL PROJECT FUNDS SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES FY 2017 ADOPTED BUDGET Enterprise Fund Fund Fund Fund GRAND Fund 550 Fund 555 560 Fund 565 570 575 Total TOTAL Revenues: Interest Income 75,000 10,000 12,000 2,500 150 99,650 141,650 Bond Proceeds 19,226,410 13,366,620 32,593,030 59,616,415 Impact Fees 3,400,000 850,000 4,250,000 4,250,000 Miscellaneous 2,770,232 Intergovernmental 8,450,134 Transfers In 200,000 550,000 750,000 2,627,589 Total Revenues 22,701,410 860,000 13,578,620 552,500 150 37,692,680 77,856,020 Expenditures: Drainage 7,065,638 Parks 4,366,557 Facilities 5,901,170 Streets - 28,358,947 Water 13,967,530 6,550,000 550,000 21,067,530 21,067,530 Sewer 25,319,500 6,996,620 32,316,120 32,316,120 Total Projects 39,287,030 13,546,620 550,000 53,383,650 99,075,962 Issuance Costs 1,000,000 1,000,000 1,100,000 Other Non-Operating Transfers Out 1,874,169 700,000 102,134 55,459 2,731,762 4,133,368 Total Non-Operating 2,874,169 700,000 102,134 55,459 3,731,762 5,233,368 Total Expenditures 42,161,199 700,000 13,648,754 605,459 57,115,412 104,309,330 Revenues Over/ (Under)Expenditures (19,459,789) 160,000 (70,134) (52,959) 150 (19,422,732) (26,453,310) BEGINNING BALANCE 26,068,199 1,439,382 27,602 172,209 379,530 (133) 28,086,787 35,499,068 ENDING BALANCE $6,608,410 $1,599,382 $27,602 $102,075 $326,571 $ 17 $8,664,055 $ 9,045,758 Note-Each fund may have different restrictions or assignments based on funding source, therefore ending balances may not be available for other purposes. 155 SUMMARY OF CAPITAL PROJECT FUNDS FY 2017 ADOPTED BUDGET Project# Project Project Description Name Drainage Projects DR 1302 Southeast Quadrant of Old The 71.4-acre service area boundary is approximately 150 ft. south of Townsite Drainage FM 518 on the north side, Old Alvin Rd on the east, Beechcraft St. on the south and S. Houston Ave. on the west and is within the southeast quadrant of the Old Townsite. The scope of the project is the development of a sub-regional drainage and detention plan to serve the 71.4 acre area. The project will develop a Preliminary Engineering Report utilizing the 8 acre feet of volume in the Baker's Landing pond and develop plans for a proposed detention pond location along Old Alvin utilizing a collection and conveyance system along Walnut and Old Alvin streets. The proposed pond will provide detention for both development and street improvements within the area and will also provide a detention buy-in strategy for re-development within the 71 acre Old Town Site area. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $4,740,308 $3,795,406 $0 $21,000 $21,000 $21,000 $21,000 DR 1602 Corrigan Ditch Sub-Basin of The project site is located along Wagon Trail Road between FM 518 Mary's Creek Drainage and Bardet Road. The project includes the reconstruction of Wagon Improvements Trail (FM 518 to Bardet Road), Cantu Rd, and Ochoa Rd in order to improve the drainage and roadway infrastructure. This project will require purchase of drainage easement in order to extend the drainage system along Ochoa Rd to outfall into Corrigan Ditch. Project 2017 0&M Impact Budget Budget 2017 2018 2019 2020 2021 $3,350,232 $2,770,232 $0 $0 $0 $0 $0 DR1701 PER for Future Bond Provide funding for preliminary engineering on future projects yet to be Referendum identified from the Drainage Master Plan to be conducted in FY 2016. Preliminary engineering would tighten down scopes and provide for estimated construction dollars that would be needed to take a proposition to the voters. Project 2017 0&M Impact Budget Budget 2017 2018 2019 2020 2021 $500,000 $500,000 $0 $0 $0 $0 $0 Drainage Total 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $8,590,540 $7,065,638 $0 $21,000 $21,000 $21,000 $21,000 156 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description Parks Projects P20001 Independence Park Ph I 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, upgrade electrical and water around the park for vendor access, pedestrian lighting, re-stripe basketball court, the construction of additional parking, additional 4-6 restrooms, a small stage and sloped earthen berm type amphitheater for special events and landscaping. Add Wi-Fi to the park at the time fiber is extended along John Lizer. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $3,976,050 $1,770,000 $0 $55,779 $57,582 $59,445 $61,371 P20004 Delores Fenwick Nature The project will include a building to demonstrate/program Center environmental educational displays, demonstration gardens, interpretive exhibits, offices, restrooms, and a classroom with a 50 seat capacity,400 sq.ft.of storage and pervious parking areas. Project 2017 O &M Impact Budget Budget 2017 2018 2019 2020 2021 $2,308,653 $2,096,557 $0 $276,760 $283,189 $284,116 $294,679 PK1402 Green Tee Terrace Trail Extension of approximately 8,000' long 10-foot wide hike and bike trail along the Clear Creek Corridor from Broadway through Province Village to Clear Creek over the creek to Hughes Road in conjunction with Gehan Homes. Project includes benches, bike racks, trail signage, trash receptacles, water fountains, shade structures, and a pedestrian bridge over Clear Creek. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $4,173,936 $500,000 $0 $4,463 $9,371 $9,840 $10,332 Parks Total 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $10,458,639 $4,366,557 $0 $337,002 $350,142 $353,401 $366,382 157 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description Facility Projects FA0904 City Hall Complex The existing Community Center was constructed in 1983 and City Renovations Hall in 1986. Departmental Space Programming was completed in 2014. This program incorporates the remodel of approximately 23,110 square feet of the former Community Center for Community Development and Finance & UB departments, renovations to the HVAC, Electrical and Plumbing systems and the installation of a sprinkler system for that building. It includes the remodel of 27,800 square feet in City Hall, the replacement of HVAC systems, including modifications to the Council Chambers, Administration, City Secretary, Legal, HR and Receptionist spaces and will include security and safety (exterior lighting) improvements for both buildings. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $6,594,245 $255,770 $0 $0 $0 $0 $0 FA1404 Orange Street Service Center Phase 1Aconsists of Step 1:the remodel of the former EMS building Phase 1 into the Field Operations Support building with parking improvements and Step 2 &3:the demolition of the existing two story operations support building and Step 3, the construction of a new 12,000 square foot Administration Building and new parking area to house approximately 50 staff including the Assistant City Manager, Public Works Administration and the Engineering and Projects Department. Both buildings will be constructed to meet the City's windstorm criteria of 140mph/3 second gusts.The Field Operations Support building will also be upgraded to this standard and will provide lunch room & kitchen, men's and women's locker facilities/ restrooms/showers for approximately 100 employees. Project 2017 0& M Impact Budget Budget 2017 2018 2019 2020 2021 $5,068,100 $1,225,100 $92,856 $92,856 $92,856 $92,856 $92,856 FA1601 Fire Station#1 Construction of approximately 9,500 sq. ft. station to house one 4- person Engine Crew and one 2-person EMS Ambulance Crew, and 2 possible trainees. Station will include 8 sleeping rooms, 3 restrooms with showers, and a kitchen dining area, a dayroom, a Lieutenant office,a station command office,and exercise room. Equipment area will consist of 3-60 foot deep drive-thru apparatus bays, a bunker gear storage area, medical supply storage, and an EMS decontamination area. Also the station will support a separation of dirty/clean areas for firefighter health, which will include 2 showers and 1 restroom shower for decontamination. The facility will be located on McHard Road near Pearland Parkway on City owned land. The building will be designed to add 2 60-foot deep apparatus bays in the future. Project 2017 0& M Impact Budget Budget 2017 2018 2019 2020 2021 $4,785,300 $4,320,300 $0 $78,085 $86,815 $90,461 $101,670 158 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description FA1701 Fiber Backbone To extend and build out the fiber network to reach all city facilities (buildings, lift stations, parks, traffic signals, and water facilities). Funds in 2017 would get fiber from Broadway at Dixie Farm Road to the Longwood treatment plant and interconnect the water towers to buildings that are in close proximity to them. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $500,000 $100,000 $0 $0 $0 $0 $0 Facility Total 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $16,947,645 $5,901,170 $92,856 $170,941 $179,671 $183,317 $194,526 159 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description Streets Projects T20002 Old Alvin Road Widening- Reconstruction of approximately 5,700 feet of Old Alvin Rd from Plum Plum Street to McHard Road St to McHard Rd from a 2-lane asphalt to a major collector 44 wide BC-BC 4-lane undivided curb and gutter roadway. Project includes underground drainage with 6'sidewalks along the east side and will tie into the existing bridge across town ditch. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $11,201,862 $8,729,957 $4,807 $19,226 $19,226 $19,226 $19,226 TR0601 Mykawa Road Widening - Construct approximately 3 miles of 4-lane concrete curb and gutter BW8 to FM 518 divided boulevard section roadway, including storm sewers, outfalls and detention, traffic signals and related items. A Drainage Study, Environmental Assessment, and 95% Construction Plans were created for the segment between BW8 and McHard Rd from a previous design effort. Will require full environmental assessment and ROW takings along alignment. Run approximately 11,000' of fiber from FM 518 to Brookside. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $43,045,723 $1,044,000 $0 $0 $0 $0 $7,169 TR1205 Max Road Expansion - Widen 3,700 LF of Max Road from the future Hughes Ranch Hughes Ranch to Reid Blvd. alignment and connecting with Reid Boulevard,just west of the Food Town shopping center. The roadway will be four lanes, divided,with concrete curb and gutter, including storm sewers, outfalls and detention. A traffic signal will be installed at the intersection of Hughes Ranch Road and Max Road, and a new bridge will be constructed over Hickory Slough. A 10-ft multi-use path will be incorporated on the west side of the roadway from Hughes Ranch to Broadway per the Trail Master Plan. Run approximately 4,500' of fiber from FM 518 to Hughes Ranch Road west of lift station. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $9,921,836 $2,840,000 $4,097 $38,731 $40,667 $42,701 $44,836 TR1405 McHard Road Extension The extension of approximately 3.5 miles of McHard Road, from (Mykawa Road to Cullen Cullen Parkway to Mykawa Road, consisting of a 4-lane, concrete, Parkway) curb and gutter, divided roadway with raised medians and underground drainage. Includes storm sewers, outfalls and detention, five traffic signals at secondary thoroughfares and major collectors, sidewalks, street lighting and landscaping. This project will be coordinated with the McHard Road Trunk Sewer extension and McHard Road Water Line Extension. Run approximately 39,000' of fiber from Alice Water Plant to Shadow Creek Parkway. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $43,460,289 $8,628,187 $0 $0 $158,971 $190,765 $190,765 160 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description TR1501 Smith Ranch Road Extension Expansion of Smith Ranch Road from 2-lanes of asphalt into 4- (CR 94)-Hughes Ranch lanes, divided, with raised medians, concrete curb and gutter, storm Road to Broadway 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. Run approximately 7,000'of fiber from FM 518 to Westside Event Center. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $6,857,103 $816,803 $0 $0 $15,813 $33,208 $34,869 TR1701 SH 288 Northbound Frontage Construct a three lane concrete curb and gutter"urban"cross-section Road -CR 59 to FM 518 frontage road from County Road 59 to FM 518 (Broadway), (Broadway) northbound only,to include a U-Turn lane under the CR59 Overpass, to include access lane to SH 288 main lanes. Project includes right of way acquisition for detention pond. This project will include extension of City utilities under a separate project to be defined at a later date. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $9,943,543 $900,000 $0 $0 $0 $0 $0 TR1703 East Orange Street Reconstruct approximately 4,830 feet of East Orange Street from Reconstruction-Main St.to Main Street to Schlieder Drive within existing 60 foot Right of Way. Schlieder Dr. Reconstruct as a concrete curb and gutter cross section to match West Orange with underground drainage and sidewalks. Incorporate corridor drainage improvements including Park Street and Old Alvin outfalls to Town Ditch to ensure positive drainage for the north end of the Old Town area. Repair or replace damaged sanitary manholes within the work zone. Project will include the construction of the mixed use trail along the top bank of Town Ditch corridor from Main Street (SH35) to Old Alvin Road, Phase Ill of the Trail Connectivity plan. A segment of the trail will be installed on City owned property north of Orange Street between Grand and Park Streets in conjunction with drainage work through this area. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $6,000,000 $5,400,000 $0 $0 $0 $0 $0 Streets Total 2017 0& M Impact Budget Budget 2017 2018 2019 2020 2021 $130,430,356 $28,358,947 $8,904 $57,957 $234,677 $285,900 $296,865 161 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description Water Projects WA1001 General Engineering/CIP This project provides services necessary for the entire CIP and not Administration project specific but is specific to the water and wastewater projects. The Water and Wastewater Master Plans will be updated and any special studies will be completed as necessary. Project 1 2017 0& M Impact Budget l Budget 2017 2018 r 2019 I 2020 2021 $1,016,078 $550,000 $0 $0 $0 $0 $0 WA1505 FM521 Waterline (Broadway 8,000 feet of 16" water line along Almeda Rd from Broadway to to Mooring Pointer) Mooring Pointe. Project 2017 E O&M Impact Budget Budget 2017 { 2018 _ 2019 2020 2021 $2,473,000 ' $420,000 $0 $0 f $0 $0 $0 WA1601 McHard Rd. 16"Waterline Phase II extends from Cullen Parkway to Mykawa a total of 17,340 Phase II linear feet. This portion of the project is timed to coincide with Right of Way approval and acquisition for the McHard Road project. Project I 2017 ' O&M Impact Budget 1 Budget 2017 2018 2019 2020 2021 $5,936,480 $5,836,480 $0 $0 ($375,000) ($750,000) ($750,000) WA1602 Hughes Ranch Road West Installation of approximately 3,000 LF of 12"water line along Hughes 12"Water Line 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. Project 2017 0& M Impact Budget Budget 1 2017 2018 2019 I 2020 2021 $1,491,000 $906,000 $0 $0 $0 $0 $0 WA1605 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.Afuture 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 by2022/2023. Installation of fiber to serve the Citys SCADA system. Project 2017 ! __ O&M Impact Budget Budget ' 2017 2018 —7 2019 2020 2021 $112,325,000 $6,500,000 $0 $0 $0 $0 $0 WA1701 FM 521 Ground Storage Tank Installation of a third ground storage tank and related piping and Expansion controls to work in conjunction with the McHard Road water transmission line. Includes a 3,600' run of conduit and fiber to connect the plant to the fiber located on Shadow Creek Parkway. Project 2017 0& M Impact Budget Budget 2017 2018 2019 2020 2021 $2,683,950 $305,050 $0 $60,086 $120,172 $120,172 $120,172 162 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description WA1702 Water Meter Changeout Changeout of approximately 36,500 water meters and drive-by reading system with a wireless remote read and addition of Customer Portal Technology. The changeout will include remote antennae, meters, external antennae on meter lids, installation, hardware and software,and vaults as needed. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $11,300,000 $5,800,000 $0 $0 $0 $0 $0 WA1703 Underground Piping This program will replace significant portions of the aging large Infrastructure at Water diameter water conveyance pipe located at water production facilities. Production Facilities This program will inspect each of the 10 facilities and make recommendations for the design and replacement of failing piping within each facility. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $1,250,000 $250,000 $0 $0 $0 $0 $0 WA1704 Transite Pipe Water Line Replace approximately 63 miles of failing Transite pipe water lines Replacement Program (over 30 years old)in the City with PVC water lines. The program will replace the water line infrastructure in the following locations over a period of years - Corrigan, Old Town Site, Sommersetshire, Country Place, Green Tee,Westminster, Brookside Acres, Shadycrest,Creek View, Parkview, Wood Creek, Heritage Green, Clear Creek Estates, and Southdown subdivisions. Project 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $5,500,000 $500,000 $0 $0 $0 $0 $0 Water Total 2017 O&M Impact Budget Budget 2017 2018 2019 2020 2021 $143,975,508 $21,067,530 $0 $60,086 ($254,828) ($629,828) ($629,828) 163 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project# Project Name Project Description Waste Water Projects WW1405 Reflection Bay Water Growth rates within the service area have increased both average Reclamation dailyflows 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, headwork's, 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 fora total plant capacity of 6 MGD. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $55,441,905 $20,200,000 $0 $180,258 $240,344 $240,344 $240,344 WW1406 McHard Rd Trunk Sewer Install,along McHard Rd,approximately 4,500 feet of 24"trunk sewer (Garden to Southdown WWTP) from Cullen to Southdown WRF; 5,800 feet of 18" trunk sewer from Cullen to Max Road; and approximately 4,000 LF of 15" trunk sewer from Max Road to Garden Road.The first 4,500'will be constructed in the Developer Agreement with Lake Park Subdivision. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $6,116,261 $2,129,500 $0 $0 $0 $0 $0 WW1502 Barry Rose WRF Expansion In 2016 a Preliminary Engineering Report was conducted 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 facility to ensure plant effluent remains within permit during the construction schedule. Disassembly and recommissioning is covered in the Reflection Bay project. In 2020 construction of approximately 2 MGD of treatment capacity will begin which will be a separate plant to be run in parallel with the existing plant, for a total capacity of 5 MGD. Run approximately 7,000' of fiber from FM 518 to Plant. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $32,560,000 $2,940,000 $0 $0 $0 $42,060 $168,241 WW1601 Mykawa Lift Stations Orange Mykawa Lift Station Retirement: Abandonment of lift station and installation of new 12-inch gravity sewer line along Mykawa from Orange to Walnut for approximately 3,386 LF. To be completed in coordination with Mykawa Road construction. Relocation Mykawa Scott Lift Station: 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. Potentially to include abandonment of Shank Lift Station. 164 SUMMARY OF CAPITAL PROJECTS FY 2017 ADOPTED BUDGET Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $6,002,920 $5,381,620 $0 ($4,100) ($8,200) ($8,200) ($8,200) WW1604 Green Tee 1 to Riverstone Work includes running the remaining 780 equivalent connections Wastewater Diversion from Green Tee basin and redirecting these flows through (Longwood Service Area Riverstone Ranch to Barry Rose plant by running approximately2600' Phase 1) of 8-10"line from lift station on Golf Crest& Country Club to receiving manhole in Riverstone Ranch and diverting flows from Lift Station #34 via force main across the golf course on Country Club Drive into the Riverstone collection system. This project works in conjunction with the Riverstone Ranch Oversizing agreement. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $1,013,580 $840,000 $0 $0 $0 $0 $0 WW1605 Roy/Max/Garden Roads Basin This project proposes approximately 4,940 LF of 18" trunk sewer Sewage System 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 and Max Rd from Broadway to Hickory Slough. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $2,845,000 $50,000 $0 $0 $0 ($10,933) ($16,400) WW1701 Lift Station Program Convert 30 year Veterans I lift station to a manhole and re-route sanitary sewer to existing gravity sewer. Design of the Mary's Creek lift station rehabilitation with construction to follow in FY18. The lift station which currently has below ground centrifugal pumps and control, will be relocated as a conventional submersible pump lift station. Project 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $2,705,000 $275,000 ($8,200) ($8,200) ($8,200) ($8,200) WW1702 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 Townsite, Sommersetshire,Country Place, Green Tee, Westminster, Brookside Acres, Shadycrest, Creek View, Parkview, Wood Creek, Heritage Green, Clear Creek Estates, and Twin Creek Woods. Project 2017 0& M Impact Budget Budget 2017 2018 2019 2020 2021 $5,500,000 $500,000 $0 $0 $0 $0 $0 WW Total 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $112,184,666 $32,316,120 $0 $167,958 $223,944 $255,071 $375,785 Grand Total 2017 O& M Impact Budget Budget 2017 2018 2019 2020 2021 $422,587,354 $99,075,962 $101,760 $814,944 $754,606 $468,861 $624,730 165 K ti .s g • THIS PAGE INTENTIONALLY BLANK 166 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for specific revenues that are legally restricted for particular purposes. A description of the individual Special Revenue Funds follows and the budget schedules can be found following this document. Hotel/Motel Occupancy Tax—A fund created to account for hotel/motel occupancy tax revenue. Court Building Security — Article 102.017 of the Code of Criminal Procedures allows a city to collect a $3 fee when a defendant is found guilty of a misdemeanor. 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 a $4 fee when a defendant is found guilty of a misdemeanor. A fund designated by this article is created to account for this collection, which may be used only to finance technological enhancements of the municipal court. Street Assessment — Chapter 313 of the Texas Transportation Code allows the City to levy assessments against various persons and their property for the payment of a part of the cost of a portion of public improvements. This fund was created to account for this collection, which is used for designated street improvements. Park Donations — A fund used to account for donations and sponsorships made in support of Parks and Recreation Department events and programs. Tree Trust—A fund created to account for tree trust donations from developers. 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 and forfeitures. Park Development—A fund created to account for the development of parks with parkland dedication fees. Sidewalk—A fund created to account for payments received in lieu of installation of sidewalks. Grant Fund — To account for all revenues and expenditures associated with federal, state and local grants, except CDBG. Community Development Block Grant (CDBG) — A fund used to account for revenues and expenditures associated with the Federal Community Development Block Grant. Traffic Improvement—A fund that accounts for resources to be used for traffic improvements based on traffic analysis for new development. Court Juvenile Management — Article 102.0174 of the Code of Criminal Procedures allows a city to collect up to a $5.00 fee from each Class C misdemeanor conviction related to salaries and benefits for a Juvenile Case Manager. The City charges a $4.00 fee for Class C misdemeanor convictions as well as a $2 Truancy fee, pursuant to Article 45.056 for the same. Municipal Channel (PEG)— Fund created to account for the revenues and expenditures associated with equipment for public-access television broadcasting under rules set forth by the Federal Communications Commission (FCC). 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 capital improvements pursuant to the lease agreement. Regional Detention—A fund created to account for regional detention development. Lower Kirby Urban Center— Fund created to account for the revenues and expenditures associated with the financing agreements for infrastructure for the Lower Kirby management district. 167 HOTEL/MOTEL OCCUPANCY TAX FUND CONVENTION & VISITORS' BUREAU SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Hotel/Motel Occupancy Tax Fund is used to account for revenues realized from hotel occupancy taxes. Local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the administrative expenses for registering convention delegates, pay for tourism-related advertising and promotions, fund programs that enhance the arts or pay for historic preservation or restoration projects, and pay for sports related expenses pursuant to state law that will enhance tourism. By law, cities with populations of less than 125,000 must spend at least 1% of hotel tax receipts on advertising, no more than 15% on art programs and a maximum of 50% on historic preservation. In fiscal year 2016, the City funded $30,000 for a Pear Arts Trail through the 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. Fiscal year 2017 revenue is anticipated to be $1,551,500 with occupancy tax revenue at $1,550,000, and total expenditures of $1,072,180. 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 one part-time receptionist in the Visitors' Center. The budget also continues familiarization trips for hosting planners and press to network for future business and showcasing workshops for Pearland hotels. In fiscal year 2017, Houston will host the NFL Superbowl. With the close proximity to Pearland, the City anticipates a high occupancy rate in the hotels for this event and has budgeted a total of $101,400 to provide trolley car and shuttle bus service to/from Pearland hotels to City restaurants and attractions and a super concert event on the Saturday before Superbowl. Fund balance at September 30, 2017 is estimated to be $4,714,823. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES HOTEL/MOTEL OCCUPANCY TAX $ 1,492,169 $ 1,525,233 $ 1,525,233 $ 1,550,000 INVESTMENT EARNINGS 11,348 10,000 2,000 1,500 MISCELLANEOUS 7,506 TOTAL 1,511,022 1,535,233 1,527,233 1,551,500 EXPENDITURES SALARIES &WAGES 254,978 271,868 280,536 286,567 MATERIALS &SUPPLIES 52,183 108,000 115,336 133,336 MAINTENANCE BUILDINGS &GROUNDS 80 MAINTENANCE EQUIPMENT 241 MISCELLANEOUS SERVICES REBATE 273,788 276,969 295,966 389,226 TO HILTON HOTEL TRANSFERS 216,275 224,995 224,995 216,276 INVENTORY 1,316 772 772 772 ARTS PROMOTION 3,155 1,003 1,003 HISTORIC PRESERVATION 16,596 30,000 30,000 30,000 CAPITAL OUTLAY 15,000 15,000 34,000 TOTAL 818,612 927,604 982,608 1,072,180 REVENUES OVER(UNDER) EXPENDITURES 692,410 607,629 544,625 479,320 FUND BALANCE-BEGINNING 2,998,468 3,601,621 3,690,878 4,235,503 FUND BALANCE-ENDING $ 3,690,878 $ 4,209,249 $ 4,235,503 $ 4,714,823 168 COURT BUILDING SECURITY FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW City Council adopted ordinance 812 on August 11, 1997 authorizing Municipal Court to collect a $3 fee from each defendant found guilty of a misdemeanor. Pursuant to the Texas Code of Criminal Procedure, revenues generated from this fee must be deposited into a special fund. The money collected may be used only to fund court security and includes such items as metal detectors, surveillance equipment, security personnel, security hardware, personnel security training, or other security measures. The revenues generated from this fee partially cover the cost of a full-time Court Bailiff and one part-time Court Bailiff, in addition to operating costs. In FY 2016, the second part-time bailiff was increased to full-time and partially funded by both this fund and the General Fund. Beginning in fiscal year 2017, a larger portion of the costs are needed to be funded by the General Fund as the Court Security Fund is currently drawing down fund balance for annual expenditures. Court Efficiency (10% of time pay fees) is also part of this fund. The fund balance at September 30, 2017 is estimated to be $7,222. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES FINES & FORFEITURES $ 53,104 $ 52,800 $ 53,000 $ 53,000 INVESTMENT EARNINGS 110 120 62 50 TOTAL 53,214 52,920 53,062 53,050 EXPENDITURES SALARY&WAGES 78,164 90,218 81,675 38,565 MATERIALS &SUPPLIES 1,436 5,000 REPAIR & MAINTENANCE 18,004 17,266 17,266 17,266 MISCELLANEOUS SERVICES 3,020 1,200 INVENTORY 1,100 6,866 6,866 TOTAL 101,725 114,350 105,807 62,031 REVENUES OVER(UNDER) EXPENDITURES (48,511) (61,430) (52,745) (8,981) FUND BALANCE -BEGINNING 117,459 66,054 68,948 16,203 FUND BALANCE -ENDING $ 68,948 $ 4,624 $ 16,203 $ 7,222 169 CITYWIDE DONATION FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Citywide Donation Fund is used to account for miscellaneous donations for all City Departments, except the Parks and Recreation Department. Donations received for specific reasons or for specific departments shall be spent for those purposes. The fiscal year 2016 expenditures budget totaled $50,477, including $478 for the Police Chaplain Program, $15,000 for a LUCAS device (chest compression system) for the Fire Department, and $35,000 for a first phase renovation of the existing Animal Services facility. 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; future donations will be held to offset some of the cost of the vehicle. No expenditures are anticipated for fiscal year 2017. The total fund balance estimated is $55,946 on September 30, 2017. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 58 $ 50 $ 60 $ 100 MISCELLANEOUS DONATIONS 30,796 20,300 22,300 21,800 TOTAL 30,854 20,350 22,360 21,900 EXPENDITURES MATERIALS &SUPPLIES 17,897 MISCELLANEOUS SERVICES 477 478 INVENTORY 1,998 BUILDING &GROUNDS 35,000 35,000 CAPITAL OUTLAY 500 15,000 12,960 TOTAL 20,396 50,477 48,438 REVENUES OVER(UNDER) EXPENDITURES 10,458 (30,127) (26,078) 21,900 FUND BALANCE -BEGINNING 49,667 57,180 60,124 34,046 FUND BALANCE -ENDING $ 60,124 $ 27,053 $ 34,046 $ 55,946 170 COURT TECHNOLOGY FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW City Council adopted ordinance 989-1 on September 10, 2001 pursuant to the Texas Code of Criminal Procedure, authorizing Municipal Court to collect a $4 fee from each defendant found guilty of a misdemeanor. The revenues generated from this fee may only be used to fund court technology and includes such items as computer equipment, imaging systems, electronic kiosks, docket management systems, and electronic ticket writers. Expenditures include the annual fee to access law enforcement warrant data, court software annual maintenance and internet service. Fund Balance at September 30, 2017 is estimated to be $2,406, drawing down fund balance by $13,569. Based on future fine activity, a portion of the expenditures are anticipated to shift to the General Fund in FY 2018. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES FINES & FORFEITURES $ 56,174 $ 60,000 $ 60,500 $ 60,000 INVESTMENT EARNINGS 26 20 13 10 TOTAL 56,200 60,020 60,513 60,010 EXPENDITURES MATERIALS&SUPPLIES 1,612 4,287 3,942 4,948 REPAIR&MAINTENANCE 60,034 54,778 56,153 55,992 MISCELLANEOUS SERVICES 8,793 10,800 16,299 10,300 INVENTORY _ 2,338 2,339 TOTAL 72,777 69,865 76,394 73,579 REVENUES OVER(UNDER) EXPENDITURES (16,576) (9,845) (15,881) (13,569) FUND BALANCE-BEGINNING 48,433 22,601 31,856 15,975 FUND BALANCE-ENDING $ 31,856 $ 12,756 $ 15,975 $ 2,406 171 STREET ASSESSMENT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW City Council adopted an Ordinance pursuant to Chapter 313 of the Texas Transportation Code, authorizing the City to levy assessments against various persons and their property for the payment of a portion of the cost of public improvements. In fiscal year 2012, the City ordered improvements and levied assessments for Business Center Drive, from Broadway south to County Road 59. Landowner assessments total $2,484,917, excluding interest. Assessments mature and become due and payable upon the earlier of: within thirty days of a sale of all or portion of the property or upon the filing of any plat or application for a permit with the City for the development of the property. The Pearland Economic Development Corporation (PEDC)funded a portion of the construction of the roadway improvements and the City entered into a reimbursement agreement with PEDC to reimburse with the road assessments collected plus the interest collected by the City up to the amount PEDC paid towards the construction. As the funds are received, the City then transfers them to PEDC. Since 2012, the City has collected $1,240,138 in assessments, leaving a balance at September 30, 2017 of $1,244,779 due, excluding interest. Since the City does not know when the sale or the development of the property might occur, the FY 2017 budget reflects no activity. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 57,545 $ $ 40,157 $ STREET ASSESSMENTS 702,187 475,757 TOTAL 759,732 515,914 EXPENDITURES INTERFUND TRANSFER 759,732 515,914 TOTAL 759,732 515,914 REVENUES OVER(UNDER) EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING $ $ $ $ 172 PARK DONATIONS FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Park Donations Fund was created to account for donations and sponsorships made in support of Parks and Recreation Department events and programs. In accordance with the established Ordinance, the fund is also used to account for the receipt and use of donation collections through water bill statements, which beginning fiscal year 2015, are used to fund the Parks Forever Foundation. Sponsorship funds are allocated to specific events/programs/facilities as identified with the sponsorship agreement. In fiscal year 2016 the City paid the initial payment of the fund balance of $13,833 to the Parks Forever Foundation from past years' water bill donations. Future payments to the Foundation are processed quarterly. During fiscal year 2016, sponsorship funds will be used to continue to help fund recreational programs and special events, including the July 4th celebration and Winterfest. For fiscal year 2017, in addition to funding special events, $6,500 is budgeted for event supplies for the Senior Center. Fund Balance at September 30, 2017 is estimated to be $66,840. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 111 $ 50 $ 100 $ 100 DONATIONS 655 1,000 1,000 1,000 SPONSORSHIPS 131,099 100,000 100,000 100,000 TOTAL 131,865 101,050 101,100 101,100 EXPENDITURES PARKS FOUNDATION 14,081 636 1,000 1,000 PROGRAMS 28,104 15,000 15,000 SENIOR CENTER EVENTS 6,500 PARKS SPECIAL EVENTS 90,571 90,000 90,000 120,000 TOTAL 132,756 105,636 106,000 127,500 REVENUES OVER(UNDER) EXPENDITURES (891) (4,586) (4,900) (26,400) FUND BALANCE-BEGINNING 99,031 14,132 98,140 93,240 FUND BALANCE -ENDING $ 98,140 $ 9,546 $ 93,240 $ 66,840 173 TREE TRUST FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Tree Trust Fund was created for the purpose of purchasing, growing, and/or maintaining trees and associated plants within the City limits. Funds for tree trust donations are from developers who cannot mitigate for trees they have taken down for development. The fee is determined by a tree survey and how many caliper inches they have to mitigate. Funds can be used to plant and replace trees in City right-of- ways and in City parks. Fiscal year 2015 included funds for trees at Shadow Creek Ranch Park and a woodchipper. $6,000 has been budgeted for fiscal year 2017 for new development and/or the replacement of damaged trees. Fund Balance at September 30, 2017 is estimated to be$761. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 59 $ 8 $ 8 $ 10 MISCELLANEOUS TOTAL 59 8 8 10 EXPENDITURES BUILDINGS&GROUNDS 432 TRANSFERS 31,100 CAPITAL OUTLAY 31,092 6,000 TOTAL 62,624 0 0 6,000 REVENUES OVER(UNDER) EXPENDITURES (62,565) 8 8 (5,990) FUND BALANCE -BEGINNING 69,308 6,225 6,743 6,751 FUND BALANCE -ENDING $ 6,743 $ 6,233 $ 6,751 $ 761 174 POLICE STATE SEIZURE FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Police State Seizure Fund is used to account for state seizure funds, which are acquired through the sale of seized property that is used in the commission of a crime. State seizure funds are to be deposited into a special fund and used solely for law enforcement purposes, such as salaries and overtime pay for officers, officer training, specialized investigative equipment and supplies, and items used by officers in direct law enforcement duties. The fiscal years 2016 and 2017 budgets include the cost for undercover vehicles and informants. The estimated ending balance September 30, 2017 is $169,645. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INVESTMENT EARNINGS $ 221 $ 200 $ 225 $ 250 SEIZURE FUNDS 8,350 48,434 MISCELLANEOUS 73 30 TOTAL 8,645 200 48,689 250 EXPENDITURES MATERIALS&SUPPLIES 1,200 1,320 1,200 MISCELLANEOUS 15,225 35,000 33,800 35,100 TOTAL 16,425 36,320 35,000 35,100 REVENUES OVER(UNDER) EXPENDITURES (7,780) (36,120) 13,689 (34,850) FUND BALANCE-BEGINNING 198,586 184,328 190,806 204,495 FUND BALANCE -ENDING $190,806 $148,208 $204,495 $169,645 175 FEDERAL POLICE FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Federal Police Fund is used to account for seizure funds received from the U.S. Attorney General's Office. Federal seizure funds are used to support community policing activities, training, and law enforcement operations calculated to result in further seizures and forfeitures. These include activities to enhance future investigations, including payments to informants, reward money, law enforcement training, and the purchase of equipment such as body armor and firearms. In fiscal year 2016, a Pano-Metric Scanner was purchased for$68,000 for use at crime scenes and major auto accidents. There are no expenditures budgeted for fiscal year 2017. Projected fund balance at September 30, 2017 is $6,832. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES POLICE DRUG REVENUE $ 31,445 $ $ $ INVESTMENT EARNINGS 65 55 100 65 TOTAL 31,510 55 100 65 EXPENDITURES WEARING APPAREL CAPITAL OUTLAY 68,000 68,000 TOTAL 68,000 68,000 REVENUES OVER(UNDER) EXPENDITURES 31,510 (67,945) (67,900) 65 FUND BALANCE -BEGINNING 43,157 72,053 74,667 6,767 FUND BALANCE -ENDING $ 74,667 $ 4,108 $ 6,767 $ 6,832 176 PARK DEVELOPMENT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW Pursuant to the Unified Development Code, new development either must dedicate parkland or pay the City a fee in lieu of parkland. The City had thirteen parkland areas or zones, which were pared down to three zones upon Council approval in May 2016. Fees, when paid, are identified by zone and use of the funds must be spent within that zone. Included is a map of the three parkland zones. Expenditures for fiscal year 2016 included $20,000 toward the resurfacing of the Southdown playground, $15,000 to replat Woodcreek Park, $86,000 towards $3.6 million 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. Fiscal year 2017 major expenditures include $190,000 each for the John Hargrove Environmental Center (JHEC) and Green Tee Trails in Zones 1 and 2. Estimated fund balance as of September 30, 2017 is $726,886. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES PARKLAND FEES/DONATIONS $ 344,274 $ 100,000 $ 100,932 $ 50,000 INTEREST INCOME _ 3,216 3,000 3,550 3,000 TOTAL 347,490 103,000 104,482 53,000 EXPENDITURES REIMBURSEMENT TO DEVELOPER PROFESSIONAL/CONTRACT SERVICES PARK IMPROVEMENT 100,000 231,000 247,986 418,250 TOTAL 100,000 231,000 247,986 418,250 REVENUES OVER(UNDER) EXPENDITURES 247,490 (128,000) (143,504) (365,250) FUND BALANCE -BEGINNING 988,150 1,045,391 1,235,640 1,092,136 FUND BALANCE -ENDING $ 1,235,640 $ 917,391 $ 1,092,136 $ 726,886 177 ---- ---- .—_--._..r-----/_----' fh I 1 4 - - I 1 .i HOUSTON - - \ 1 10 l —��_ =- LTWAV-- _ SAM HOUSTON TOLLWAV E B' i I-� 1 SAIHOUSTON TOLLWAYIBELTWAY 9_-_ •- --�1.- I-- Y =- 1 F.IF , rnlee 'tiJ� S�f f,. iI 11i�� - -' - .�sss'_, " :�HarrlsCa �; 4•i ...0. • f ._1- 'A' - _Christa 1 L o 4 / ' / 1 1 t 1 Tom Bass Regional Park Adair Park I VI L G c - 0 1 Clear Creek 0.rl F .r , Ir _ BR KSIDE RD I e �` • r-7j ,\ hl 1 ( --"� Public.Golf 6 — -._--• e` c• l f �. : _� MCHARD RD \ �, , `, i-------. CHARD RD ~� �� II IS �``\ -_1�-- s r'menfry Place T.y m -- ,,s hgoOwcREEK_ PKWYIFM zzaa Westside PrivaleGolj m w -�-7X �o p ,'Do tm ➢ - �z `�.* /-'\. P " Event Course < o fr ,, e LL o o o o Center o E S J° Coheres! ' f a I HUGHES RANCH RD Hickory o `ORANGE ST ;4,Q' y, Country rim\t ° w o d .Slough F 1_. POJ Y Club .�oP •N.ti ) 1 w i uC i w tA`Sportsplex IOWPvsrrFMera Pie- o 5�P Dixie lrm• t Pr j z < j I 4 1 G oP : . m Private Rog,Part,0P1 o a u WALNUT S- Mel+n Knapp HQ,,./ Gal( 0�° t ✓� yam" 5 _ Achwty CTR .• -. PDWAV ST FM s11a I (horse D5< m I '. MU / S a i� Jr "1 02 FITE RD N,S °P� F'l"153' D 1 �s I e°p� (1 e ♦ f l 1 `" SQ:Q- %I i` �SOLIl 1 °RTHF.p0.K D0. l RI JOHN LIZER RD / _�-_ sR\.o Hv-_ RKW�Y 4 5 1 � �uA.r aD —Veterans It f'` .DU 0 r) ✓VCK 1 I MAGN 1 I. Rmrtir nrrl; I I �- ll�.•• Sports , IL- - 1'ublir(:alf iaKDR �,i'- '3 1 ,, Complex �P°f •lII4l - _ nu,er'- SOJt,�'F1O' (~--_---_ • IFm > .gLEROP ` QPPrI_ I �I 7" _ �� /•' I - �^ z ?TRec Center& ,./ ___\ _- . r 09 114 -_ r �, I °j ti` l� 0 0 Io A Natatorium i ♦ �f \♦ 1 C h-__'- 1 '•till "-_ l �, t 1-- BAILEY RD S I L Z OA p 1 • _ -__..- - ^-'- - Pearland r---- --- t 1 II �� { Ny i , Regional ; co 41 I _ {per----�t .ii. _ .Y �� ,, I __ 1--�-_ _. s `� A'rport I I. i. _ ,,, ir, ,, 1 h— , 03 �__- i1' . III r L, t /, i. it -T.Y.------- __ r . 1 I ~_ , I_ I II s — 1 1 A ,. �" 1, I _ _ _ r� 5__— {I _.I �'YS. —t- - _ __ _ _ __ r z ,l rT f y i J �} ' --- MANVEL N V E L ,71 .� ., . Ai _—�. ' ' c O�O N' I 1 ' -Nf �� hr-•_- Lei--_---IS ri I ( N. ,, -_I r� I Li--r---_`-_'_i 4 ' I CITY OF PEARLAND ' L= ! A Centennial Park K Aaron Pasternak Memorial Park `ao �e> -t-- 1 1 I --._. Y Public Park Zones B Independence Park L Zychlinski Park E 1 ?r', _ C Southdown Park M Sonny Tobias Park `_, " tr 1 il S r ----, County Parks Park Zones D Woodcreek Park N Shadow Creek Ranch Trail tin=1 miles -- --1 4 : j Public Parks 01 E Woody Street Park 0 Southgate Park °a ' t �- 'J _J 02 F Cypress Village Park P Clear Brook City Park Tnia product ia for;nforme[ionalpurposes and ma,' - - ». _ _ Golf Cource G Corrigan Park Q Heritage Plaza not have beer.preparedfrorbeeuitablefrlegal. l �I 1'1 --, 03 H Hyde Park R Dads Park(Private-Little League) n,e, ,,aneo,-tne-groy�a a7Rey%,a re;.%.a �{ - 1 j �__I Pearland City Limits I Pine Hollow Park S Hunter Park n relate a property only the approximate relative location of -- 'I 1_-1 Pearland ETJ J Creekside Park T Old Settlers Cemetery l MAP PREPARED:MAY 2016 I'1. I'IT,"OF PEARLAND GIS DEPARTMENT J ti- SIDEWALK FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW Per City Ordinance, sidewalks are to be installed when development occurs. However, in certain instances when the City knows that future streets and roadways will be constructed, the City accepts payment in lieu of installation of sidewalks. Thus,the Sidewalk Fund is used to account for revenues and expenditures associated with the installation of these sidewalks. The cost per square foot is $6.00 and changes to reflect the City's current contract price at any given time. The City then uses these monies to install the sidewalks once the roadway is complete. Specific sidewalk locations identified with the original payments will be constructed out of the City's General Fund annual sidewalk program, when identified for construction. Fund balance at September 30, 2017 is estimated to be$22,509. There is$4,220 identified in the fund balance for future Mykawa Road construction. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INTEREST INCOME $ 236 $ 34 $ 18 $ SIDEWALK REVENUE 5,000 5,000 TOTAL 236 5,034 18 5,000 EXPENDITURES INTERFUND TRANSFERS 217,224 OTHER EXPENSES 8,520 TOTAL 225,744 REVENUES OVER(UNDER) EXPENDITURES (225,508) 5,034 18 5,000 FUND BALANCE -BEGINNING 242,999 17,495 17,491 17,509 FUND BALANCE -ENDING $ 17,491 $ 22,529 $ 17,509 $ 22,509 179 GRANT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Grant Fund is used to account for revenues and expenditures associated with federal,state and local grants. Fiscal year 2016 grant revenues totaled $951,434 and were based on $650,667 in federal funds, $281,017 from the State of Texas, $19,565 from private sources, and interest income of$185. Expenditures for fiscal year 2016 included federally-funded programs that provided $142,775 in salaries, overtime and benefits for police patrol and investigations officers, $10,044 for police equipment from the U.S. Department of Justice, and $463,250 in pass-thru funding from Brazoria County's allocation of a grant from the U.S. Fish and Wildlife Service. The State of Texas awarded the City$41,387 from the Office of the Attorney General for Crime Victim Assistance, $11,062 for public safety training from the Texas Commission on Law Enforcement and the Texas Intra-Fire Mutual Aid Service, and $110,250 for body-worn surveillance cameras from the Office of the Governor - Criminal Justice Division. In addition to government-funding, private foundations and associations provided the City's Fire Department with $19,565 for fire prevention education and programs aimed at improving teen driver safety. The fiscal year 2017 Grant Fund revenues total $196,955, including Interest Income of $29. Expenditures for FY 2017 include $128,920 in federal funds and $68,006 from the State of Texas. The Office of the Governor has issued $70,509 in grant funding to cover the cost of salaries and benefits for portions of two Crime Victim Liaisons in the Police Department, with the majority of the remaining costs of these personnel covered by a grant from the Office of the Attorney General in the amount of $40,925. The State has also funded recycling bins for a number of City-wide parks with $27,081 from the Texas Commission on Environmental Quality, as a pass-thru grant issued by the Houston - Galveston Area Council. The Texas Division of Emergency Management (TDEM) funds are anticipated at $46,741 for Emergency Management personnel, and $11,670 from the U.S. Department of Justice will fund nine (9) body-worn surveillance cameras for local law enforcement officers. Expenditures for FY 2017 total $196,926, leaving a fund balance of $10,092 at the end of the fiscal year. 2016 2016 2017 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES GRANT REVENUE $ 249,168 $ 177,834 $ 951,249 $ 196,926 INTEREST INCOME 37 185 29 INTERGOVERNMENTAL TOTAL 249,205 177,834 951,434 196,955 EXPENDITURES SALARY&WAGES 182,077 157,175 MATERIALS &SUPPLIES 30,286 1,822 9,615 27,081 MISCELLANEOUS SERVICES 1,200 16,187 TRANSFERS 156,592 165,968 647,438 1,000 CAPITAL OUTLAY 56,013 10,044 155,307 11,670 TOTAL 244,091 177,834 1,010,624 196,926 REVENUES OVER(UNDER) EXPENDITURES 5,114 (59,190) 29 FUND BALANCE -BEGINNING 64,139 64,154 69,253 10,063 FUND BALANCE -ENDING $ 69,253 $ 64,154 $ 10,063 $ 10,092 180 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Community Development Block Grant Fund is funded through annual allocations of Entitlement Jurisdiction disbursements from the U.S. Department of Housing and Urban Development (HUD). Also known as CDBG, these funds are restricted for use in providing programs, services and local infrastructure improvements that benefit low and moderate income families. Revenues for 2016 totaled $732,790, matched expenditures, and were comprised of a combination of the fiscal year 2016 HUD allocation of $319,085, and $413,705 in unspent funds from prior years. Of the available balance of$732,790, $310,574 was programmed for use in replacing approximately 4,400 linear feet of Transite waterlines in the City's Old Townsite area, $183,582 was available for eligible home repairs for low-moderate income Pearland owner-occupied homes, and $113,447 was allocated for personnel to administer code enforcement activities, the housing rehabilitation program, as well as staff needed to provide management and oversight for the CDBG program in its entirety. The remaining $40,326 provides the Pearland Neighborhood Center with $16,500 for emergency assistance to eligible families facing evictions or utility shut-offs, and $23,826 for consultants, advertising, postage, and training. Un-programmed funding in the amount of $84,861 was available for reallocation to undetermined projects in the community. The 2016 HUD Program Year (FY 2017) provides the City with $325,431 for distribution to community-based organizations, housing rehabilitation and repair activities, code enforcement, and program administration expenditures. Community-based organizations may receive up to 15% of the total annual allocation ($48,814) for programs and services, and the City will be allowed to utilize 20% of the allocation each year for staffing, program oversights and administration, and fair housing compliance activities. None of the entire allocation is subject to a cap on expenditures, so facility and infrastructure improvements can be funded without limitation, except for that they cannot exceed the entire annual allocation of Community Development Block Grant funds unless they are supported with prior year un-programmed funds as well. In FY 2017 (program year 2016), the City will disperse $9,997 for mental health services, $12,000 for youth fitness and health activities, $11,205 for local "meals on wheels" program, and $15,612 to provide emergency assistance to renters facing evictions or those scheduled to have electricity, gas or water service shut off. A total of$118,150 will be used to construct a vocational training facility for high-functioning mentally-disabled adults, $30,000 for code enforcement in the CDBG Target Area, and $63,381 for housing rehabilitation and repair for low-moderate income owner- occupants of single-family residents within the City limits. 2016 2016 2017 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES GRANT REVENUE $ 155,915 $ 319,085 $732,790 $ 325,431 INTEREST INCOME INTERGOVERNMENTAL TOTAL 155,915 319,085 732,790 325,431 EXPENDITURES SALARY&WAGES 113,447 81,641 MATERIALS &SUPPLIES 1,007 600 MISCELLANEOUS SERVICES 93,294 40,326 223,908 124,040 TRANSFERS 113,447 1,000 CAPITAL OUTLAY 66,977 165,312 395,435 118,150 TOTAL 161,278 319,085 732,790 325,431 REVENUES OVER(UNDER) EXPENDITURES (5,363) FUND BALANCE -BEGINNING 5,363 FUND BALANCE-ENDING $ $ $ $ 181 TRAFFIC IMPROVEMENT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Traffic Improvement Fund accounts for resources for traffic improvements. Funds are collected as a result of a traffic analysis performed for new developments. Traffic engineers analyze the proposed traffic patterns and trips generated by the development and then estimate the costs of the improvements needed to mitigate the impact the development has on the transportation system. For those improvements that cannot be constructed at the time of development, the funds are received from the developer and held until the projects can be incorporated into a City project. Fiscal year 2016 revenues total $5,700. Projected expenditures total $93,548 carried over from FY 2015 for CR 48 per inter-local agreement with Brazoria County, $50,000 towards the intersection of Discovery Bay and Business Center Drive, and $44,800 transferred to the CIP fund for Pearland Parkway and FM 518. Anticipated fiscal year 2017 revenues total $2,500 with no anticipated expenditures. The fund balance at September 30, 2017 is estimated to be $530,329. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES MISCELLANEOUS $ 34,188 $ $ 3,200 $ INTEREST INCOME 3,770 3,000 2,500 2,500 TOTAL 37,958 3,000 5,700 2,500 EXPENDITURES MISCELLANEOUS SERVICES 46,800 143,548 INTERFUND TRANSFERS 91 44,800 TOTAL 91 46,800 188,348 REVENUES OVER(UNDER) EXPENDITURES 37,867 (43,800) (182,648) 2,500 FUND BALANCE -BEGINNING 672,609 590,662 710,477 527,829 FUND BALANCE -ENDING $ 710,477 $ 546,862 $ 527,829 $ 530,329 182 COURT JUVENILE MANAGEMENT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The State of Texas has authorized the governing body of a municipality to collect a fee up to $5 from each Class C misdemeanor conviction for the expenditures related to the employment of a Juvenile Case Manager. Pursuant to the Texas Code of Criminal Procedure, Article 102.0174, revenues generated from this fee must be deposited into a special fund. This new fund began with the 2010 fiscal year. An increase in the fee from $1 to $4 for each Class C misdemeanor conviction was approved via Ordinance 1404-2 on September 19, 2016, in order to cover the costs related to the Juvenile Case Manager. There is also a $2 per conviction Truancy fee pursuant to Article 45.056. The fund balance at September 30, 2017, is estimated to be $32,092. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES FINES & FORFEITURES $ 30,320 $ 37,000 $ 17,600 $ 85,000 INVESTMENT EARNINGS 55 60 38 100 TOTAL 30,375 37,060 17,638 85,100 EXPENDITURES SALARY&WAGES 42,818 42,835 45,542 60,051 MATERIALS &SUPPLIES 950 1,650 MISCELLANEOUS SERVICES 1,421 1,600 500 1,600 TOTAL 44,239 44,435 46,992 63,301 REVENUES OVER(UNDER) EXPENDITURES (13,865) (7,375) (29,354) 21,799 FUND BALANCE-BEGINNING 53,512 46,005 39,647 10,293 FUND BALANCE -ENDING $ 39,647 $ 38,630 $ 10,293 $ 32,092 183 MUNICIPAL CHANNEL (PEG) FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Municipal Channel Fund was established in fiscal year 2012 to account for revenues and expenditures associated with the City's Public, Education and Government (PEG) channel. The State legislature approved a legislative bill (S.B. 1087)during the 2011 82nd legislative session that allows for municipalities to receive 1% of gross revenues, labeled "State Franchise Fee," on customer bills to fund capital expenditures associated with public, education and government programming for the City's PEG channel. The funds can only be used for capital purchases such as cameras, monitors, cables, microphones, software programs or upgrades, computers, etc. Funds from the PEG fee are received quarterly. Expenditures 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 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. Fiscal year 2017 expenditures include $25,646 for arri lights, camera housing, lenses, photography and video cameras, recorder, steadicam and slider. Expenditures also include an additional $466,258 for the build-out of the studio and council chambers. Fund balance at September 30, 2017 is anticipated to be $657,705. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES FRANCHISE FEES $ 307,217 $ 314,000 $ 307,000 $ 307,000 INVESTMENT EARNINGS 653 700 800 800 TOTAL 307,870 314,700 307,800 307,800 EXPENDITURES TRANSFERS OUT 20,250 20,250 466,258 MATERIALS &SUPPLIES 4,101 9,650 14,960 5,462 REPAIR & MAINTENANCE 2,988 10,500 3,829 MISCELLANEOUS SERVICES 1,479 53,000 1,480 INVENTORY 21,526 169,650 100,365 25,646 CAPITAL OUTLAY 6,846 14,800 14,500 TOTAL 36,941 214,350 213,575 502,675 REVENUES OVER(UNDER) EXPENDITURES 270,930 100,350 94,225 (194,875) FUND BALANCE -BEGINNING 487,425 746,177 758,355 852,580 FUND BALANCE -ENDING $ 758,355 $ 846,527 $ 852,580 $ 657,705 184 UNIVERSITY OF HOUSTON FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW 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 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. 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. UofH Clear Lake began using the entire building, an additional 7,933 square feet, on August 11, 2016. As such, UofH Clear Lake is picking up 100% of the operating costs via direct expense and the City is no longer managing and operating the facility, resulting in discontinuance of this fund. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES MISCELLANEOUS $ 255,032 $ 238,966 $ 238,966 $ INTEREST INCOME 24 TRANSFERS IN 85,489 80,294 80,294 TOTAL 340,545 319,260 319,260 EXPENDITURES PERSONNEL 49,851 53,389 55,041 MATERIALS &SUPPLIES 7,562 350 50 MAINTENANCE OF BUILDINGS& GROUNDS 33,223 26,300 47,089 MISCELLANEOUS SERVICES 249,909 234,221 231,631 TOTAL 340,546 314,260 333,811 REVENUES OVER(UNDER) EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE -ENDING $ $ $ $ 185 UNIVERSITY OF HOUSTON CAPITAL RENEWAL FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW 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. The lease agreement established 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 began 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. As of May 1, 2016, UofH increased their occupation of the building by 4,652 square feet (conference center/meeting area)and as of August 11, 2016, UofH occupied the building in its entirety. Per the provisions of the lease agreement, UofH will receive the balance of the funds left in the Capital Renewal Fund for future capital improvements to the building with no further contributions to the fund by either the City, PEDC or UofH. Fiscal year 2017 shows the close out of the fund, with a payment to UofH for the balance of the fund. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES MISCELLANEOUS $ $ 10,488 $ 10,488 $ INTEREST 280 350 350 TRANSFERS IN 8,041 44,651 42,885 TOTAL 8,321 55,489 53,723 EXPENDITURES MISCELLANEOUS 302,171 TOTAL 302,171 REVENUES OVER(UNDER) EXPENDITURES 8,321 55,489 53,723 (302,171) FUND BALANCE -BEGINNING 240,127 248,469 248,448 302,171 FUND BALANCE -ENDING $ 248,448 $ 303,958 $ 302,171 $ 186 REGIONAL DETENTION FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Regional Detention Fund accounts for regional detention development. A certain amount of capacity in a regional detention facility is allocated to the watershed and a certain amount of capacity is reserved for future detention needs based on new development. Developers can buy into the regional detention based on capacity needs versus capacity available. The current regional detention pond program is based on five regional detention ponds throughout the City. The City completed a regional detention study in September 2010, which proposed various sub-regional detention ponds. Capacity from the pond would be purchased at a per acre feet fee based on construction cost of the pond. The fee structure will help recover the cost to purchase the property, design and construct the pond. A total of$171,513 was transferred in fiscal year 2016 to the Debt Service Fund toward payment of debt for East Mary's Creek. Since the City does not know when a developer may buy into the program, the budget reflects no activity for FY 2017. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES CHARGES FOR SERVICES $ $ 171,425 $ 171,425 $ INVESTMENT EARNINGS 88 88 TOTAL 171,513 171,513 EXPENDITURES TRANSFERS OUT 171,513 171,513 TOTAL 171,513 171,513 REVENUES OVER(UNDER) EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING $ $ $ $ 187 LOWER KIRBY URBAN CENTER FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW One of the City's priorities is the development of the Lower Kirby Urban Area that will encourage employment, commerce, recreation, arts, entertainment and overall economic development. The Lower Kirby Pearland Management District (LKPMD) was created as Spectrum Management District, a political subdivision of the State of Texas, by a special act of the 80th Texas Legislature, effective June 2007. The name was changed March 2012 to Lower Kirby Pearland Management District. The District operates in accordance with Chapter 3840 of the Texas Special District Local Code and Chapter 375 of the Local Government Code. The Pearland Management District No. 1 was created as a political subdivision of the State of Texas under Chapter 3838 of the Texas Special District Local Laws Code. In 2014 the City entered into Master Financing Agreements (R2014-117) with the Lower Kirby Pearland Management District (LKPMD) and the Pearland Municipal Management District No. 1. The City and District would come together to finance $48 million in infrastructure in the district. The City and Districts agree, on a case by case basis, which infrastructure the City would advance funds in order to facilitate development. The Districts, based on valuation on the ground, would reimburse the City through the sale of bonds when economically feasible; therefore, activity is not expected annually. The City also has reimbursement agreements with the Pearland Economic Development Corporation for the projects. In 2014 the City entered into a financing agreement (R2014-119) in association with the Hooper Road Reconstruction Project and Financing Agreement (R2014-25) associated with Regional Detention Facilities. In 2015, financing agreements for Kirby Ditch Improvements (R2015-136 & R2015-203) and preliminary engineering for South Spectrum Blvd. (R2015-147) and North Spectrum Traffic Signal (R2015-204) were approved. Financing agreements for Lower Kirby TxDOT Ditch Acquisition (R2016-51) and an amendment to Hooper Road (R2016-40)were approved in 2016. Financing by District is as follows: LKMD PMMD Regional Detention (R2014-25) 1,598,149 612,292 Hooper Road (R2014-119) 1,500,000 Kirby Ditch (R2015-136 & R2015-203) 1,919,796 South Spectrum (R2015-147) 119,462 94,676 North Spectrum (R2015-204) 250,000 $5,387,407 $ 706,968 FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget REVENUES INTEREST EARNINGS $ $ $ 19,006 $ INTERGOVERNMENTAL 2,764,300 1,780,439 TOTAL 2,764,300 1,799,445 EXPENDITURES INTERGOVERNMENTAL 1,686,743 TRANSFERS OUT 2,764,300 112,702 TOTAL 2,764,300 1,799,445 REVENUES OVER(UNDER) EXPENDITURES FUND BALANCE-BEGINNING FUND BALANCE—ENDING $ $ $ $ 188 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. 189 PROPERTY/LIABILITY INSURANCE FUND SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2017 ADOPTED BUDGET OVERVIEW The Property/Liability Insurance Fund has been created to account for the activities of the City's property and casualty insurance. Coverage includes general liability, law enforcement, public official and employees' liability, auto liability, physical damage and multi-peril, mobile equipment, real and personal property, and windstorm coverage. The fund not only accounts for the annual premiums but also accounts for uninsured and deductible claims and insurance recovery funds on those claims. The rates for premiums for fiscal year 2016 were budgeted at $1,094,506, and uninsured and deductible claims total $92,599. Premiums for fiscal year 2017 total $1,218,893, which includes a 52% increase in property insurance as new properties have been added and values have been updated. The FY 2017 premiums also include a 20% increase in auto liability, 17% in auto damage and 17% in law enforcement liability. Increases in FY 2017 premiums include the cost of new facilities added, such as the Orange Street Service Center Field Operations Support building and upgrades to City Hall and Annex. 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. In FY 2017, a Risk Manager is being added to create a centralized system for claims processing and to manage and monitor the City's risk and liability. The expense of this position will be shared between the General Fund and the Property/Liability Insurance Fund. Fund balance at September 30, 2017 is estimated to be $409,965, which approximates the amount needed for uninsured or deductible claims. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget OPERATING REVENUES TRANSFERS $1,017,396 $1,245,477 $1,245,477 $ 1,400,772 INSURANCE RECOVERY 166,817 70,000 70,000 70,000 INTEREST 109 30 40 40 TOTAL 1,184,322 1,315,507 1,315,517 1,470,812 OPERATING EXPENSES SALARIES& BENEFITS 50,574 MATERIALS&SUPPLIES 5,800 INSURANCE PREMIUMS 1,083,611 1,221,977 1,094,506 1,218,893 CLAIMS _ 77,668 90,000 92,599 95,000 TOTAL 1,161,279 1,311,977 1,187,105 1,370,267 REVENUES OVER(UNDER) EXPENSES 23,043 3,530 128,412 100,545 BEGINNING NET ASSETS 157,965 181,008 181,008 309,420 ENDING NET ASSETS $ 181,008 $ 184,538 $ 309,420 $ 409,965 190 PROPERTY/LIABILITY INSURANCE FUND REVENUES AND EXPENSES FY 2017 ADOPTED BUDGET REVENUES FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Amended Budget 700-150-100-3900 TRANSFERS 1,017,396 1,245,477 1,245,477 1,400,772 *TRANSFERS 1,017,396 1,245,477 1,245,477 1,400,772 700-150-100.3800.240 INSURANCE REIMBURSEMENTS 165,501 70,000 70,000 70,000 700-150-100.3750 MISCELLANEOUS 1,316 *INSURANCE RECOVERY/MISC. 166,817 70,000 70,000 70,000 700-150-100.3600.010 INTEREST EARNINGS 109 30 40 40 *INTEREST 109 30 40 40 TOTAL 1,184,322 1,315,507 1,315,517 1,470,812 EXPENSES FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted ACCOUNT NUMBER ACCOUNT DESCRIPTION Actual Budget Amended Budget 700-120-100.5000.010 SALARY AND WAGES 37,440 700-120-100.5005.010 MEDICAL INSURANCE 5,000 700-120-100.5005.015 OTHER GROUP INSURANCE 72 700-120-100.5005.020 FICA TAX 2,864 700-120-120.5005.030 RETIREMENT 5,064 700-120-100.5005.060 WORKERS'COMPENSATION 30 700-120-100.5005.050 STATE UNEMPLOYMENT 104 *SALARIES&WAGES 50,574 700-120-100.5100.010 OFFICE SUPPLIES 50 700-120-100.5115.010 COMPUTER HARDWARE &SOFTWARE 1,350 700-120-100.5145.020 WEARING APPAREL 50 700-120-100.5420.030 MILEAGE 1,000 700-120-100.5430.020 CONFERENCES &SEMINARS 2,000 700-123-100.5430.030 MEMBERSHIP& DUES 350 700-120-100.5445.020 CELLULAR COMMUNICATIONS 1,000 *MATERIALS&SUPPLIES 5,800 700-150-100.5410.010 GENERAL LIABILITY INSURANCE 48,758 49,348 45,541 49,531 700-150-100.5410.020 ERRORS AND OMISSIONS INSURANCE 77,480 79,804 71,963 73,688 700-150-100.5410.030 PUBLIC EMPLOYEE DISHONESTY INS 2,953 2,953 2,954 1,789 700-150-100.5410.040 ANIMAL MORTALITY INSURANCE 2,450 2,450 2,450 2,500 700-150-100.5410.050 LAW ENFORCEMENT LIABILITY 74,577 79,211 62,957 73,921 700-150-100.5410.070 PROPERTY INSURANCE 77,215 86,177 83,393 126,980 700-150-100.5410.080 WINDSTORM DAMAGE INS 570,287 635,510 604,034 631,050 700-150-100.5410.090 AUTOMOBILE LIABILITY 106,043 136,036 95,598 114,360 700-150-100.5410.100 AUTO DAMAGE 92,621 118,540 94,435 110,616 700-150-100.5410.120 MOBILE EQUIPMENT 13,291 13,291 13,291 14,240 700-150-100.5410.210 SEWAGE BACK-UP 16,340 17,157 16,340 18,590 700-150-100.5410.230 RAIN-OUT INSURANCE (PARKS) 1,597 1,500 1,550 1,628 *MISCELLANEOUS SERVICES 1,083,611 1,221,977 1,094,506 1,218,893 700-150-100.5500 CLAIMS 77,668 90,000 92,599 95,000 *CLAIMS 77,668 90,000 92,599 95,000 TOTAL 1,161,279 1,311,977 1,187,105 1,370,267 191 MEDICAL SELF INSURANCE FUND SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2017 ADOPTED BUDGET OVERVIEW The Medical Self Insurance Fund was created to account for the activities of the City's employee insurance. The fund accounts for retiree and COBRA contributions, claims and coverage. In a self-insurance fund, the employer is ultimately responsible for all health care costs, and pays for those costs plus administrative fees. For FY17 the City is budgeting for an increase in claims, as well as budgeting contributions based on the total number of full-time eligible employees, including vacant positions, to maintain the fund balance in the event future years' claims continue to grow. $25,000 has been budgeted for the Wellness Program. The estimated fund balance as of September 30, 2017 is $2,014,783, exceeding the fund balance target of $1,784,731 which is based on 25% of the plan's advisor projected total cost. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget OPERATING REVENUES INTEREST INCOME $ 415 $ 750 $ 1,000 $ 1,000 CONTRIBUTIONS-CITY 5,040,888 7,049,946 6,460,000 6,110,000 RETIREE AND COBRA CONTRIBUTIONS 32,660 49,920 66,000 50,000 CONTRIBUTIONS-EMPLOYEE 942,468 942,468 956,785 1,300,188 MISCELLANEOUS 25,000 TOTAL 6,016,431 8,068,084 7,483,785 7,461,188 OPERATING EXPENSES ADMINISTRATIVE FEES 810,106 927,129 924,966 969,666 CLAIMS 5,313,568 6,854,997 5,000,000 6,410,188 CONSULTING SERVICES/HEALTH PORTABILITY ACT 82,161 89,750 95,500 125,500 TOTAL 6,205,835 7,871,876 6,020,466 7,505,354 REVENUES OVER(UNDER) EXPENSES (189,404) 196,208 1,463,319 (44,166) BEGINNING NET ASSETS 785,033 136,106 595,630 2,058,949 ENDING NET ASSETS $ 595,630 $ 332,314 $ 2,058,949 $ 2,014,783 CLAIMS PAID PER EMPLOYEE FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget Number of Employees on Medical Insurance: 529 591 591 611 City-Paid Contributions per Employee: $9,529 $11,929 $10,931 $10,000 Employee-Paid Contributions: $1,782 $1,595 $1,619 $2,128 Total Contributions per Employee: $11,311 $13,524 $12,550 $12,128 Claims Paid per Employee: $10,045 $11,599 $8,460 $10,491 192 MEDICAL SELF INSURANCE FUND SUMMARY OF REVENUES, EXPENSES, AND NET ASSETS FY 2017 ADOPTED BUDGET Medical Self-Insurance Fund $9,000,000 - $8,000,000 - $7,000,000 $6,000,000$5,000,000 - $4,000,000$3,000,000$2,000,000$1,000,000 .111 $0 Actual Actual Original Amended Adopted FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 •Revenues ■Expenses Contributions vs Claims Per Employee $16,000 $14,000 $12,000 - $10,000 $8,000$6,000 $4,000 = $2 000 $p Actual Actual Original Amended Adopted FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 ■Total Contributions per Employee ■Claims Paid per Employee 193 MEDICAL SELF INSURANCE FUND REVENUES AND EXPENSES FY 2017 ADOPTED BUDGET REVENUES FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted ACCOUNT DESCRIPTION Actual Budget Amended Budget INTEREST INCOME 415 750 1,000 1,000 *INTEREST 415 750 1,000 1,000 CITY CONTRIBUTIONS 5,040,888 7,049,946 6,460,000 6,110,000 RETIREE AND COBRA CONTRIBUTIONS 32,660 49,920 66,000 50,000 EMPLOYEE CONTRIBUTIONS 942,468 942,468 956,785 1,300,188 MISCELLANEOUS 25,000 *CONTRIBUTIONS 6,016,016 8,067,334 7,482,785 7,460,188 TOTAL 6,016,431 8,068,084 7,483,785 7,461,188 EXPENSES ADMINISTRATIVE FEE 810,106 927,129 924,966 969,666 CONSULTING SERVICES 30,000 HEALTH PORTABILITY ACT 74,716 64,750 70,500 70,500 MEDICAL INSURANCE CLAIMS 5,313,568 6,854,997 5,000,000 6,410,188 *CLAIMS 6,198,390 7,846,876 5,995,466 7,480,354 WELLNESS PROGRAM 7,445 25,000 25,000 25,000 *MISCELLANEOUS SERVICES 7,445 25,000 25,000 25,000 TOTAL 6,205,835 7,871,876 6,020,466 7,505,354 194 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. 195 Pearland Economic Development Corporation President, PEDC rn Office Supervisor Director of Marketing Vice-President, PEDC Development Manager PEARLAND ECONOMIC DEVELOPMENT FUND SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE FY 2017 ADOPTED BUDGET OVERVIEW The Pearland Economic Development Corporation (PEDC) was created in 1995 by the voters under the Texas Development Corporation Act of 1979. The Corporation is financed by sales tax of a half-cent. State law allows the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the City. The Board of Directors are appointed by and serve at the discretion of the City Council. City Council approval is required for annual budgets and bonded debt issuance. The role of the Corporation is to provide guidance and funding for the operations of the City's economic development program and provide business incentives to support and promote the growth and diversification of the City's economic base. Fund balance at September 30, 2017 is estimated to be $13,494,797. FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted Actual Budget Amended Budget OPERATING REVENUES Sales Tax $ 9,403,602 $ 10,159,649 $ 9,753,263 $ 10,240,926 Interest Income 151,991 85,000 85,000 110,000 Intergovernmental 775,504 1,611,300 4,217,857 12,000 Miscellaneous 442,234 460,000 552,000 470,000 TOTAL 10,773,331 12,315,949 14,608,120 10,832,926 OPERATING EXPENDITURES Operating 1,358,173 2,020,888 1,764,999 2,233,068 Bond Payments 8,498,288 1,420,458 1,420,456 1,426,256 Inventory 1,544 5,000 5,000 5,000 Capital Outlay 317,325 5,155,000 1,490,000 2,365,000 TOTAL 10,175,330 8,601,346 4,680,455 6,029,324 REVENUES OVER/(UNDER) EXPENDITURES 598,000 3,714,603 9,927,665 4,803,602 OTHER FINANCING SOURCES (USES): Transfers Out (1,180,332) (8,724,243) (8,531,729) Incentives (393,221) (3,591,342) (817,918) (1,342,515) Bond Proceeds TOTAL (1,573,553) (3,591,342) (9,542,161) (9,874,244) NET CHANGE IN FUND BALANCE (975,552) 123,261 385,504 (5,070,642) BEGINNING FUND BALANCE 19,155,487 13,117,177 18,179,935 18,565,439 ENDING FUND BALANCE 18,179,935 13,240,438 18,565,439 13,494,797 197 Fiscal Year 2015-16 Operating revenues are projected to be $14.6 million. Sales tax revenue for the year is projected at$9,753,263 which is lower than the initial budget of$10,159,649 for a decrease of$406,386 and up$349,661 or 3.7%greater than FY 2014-15. In addition, PEDC received higher than projected reimbursement revenue from Business Center Drive street assessments and Lower Kirby reimbursements. Total expenditures are projected at$14.2 million or$3.1 million under the amended budget of$17.3 million. This decrease is attributed to lower business incentive payments than projected, cost savings on the Cullen, Pearland Parkway and Dixie Farm Road gateway improvements and the delay of implementation for the SH 35 Gateway and Corridor enhancements plan. The beginning fund balance is $18,179,935 and projected ending fund balance with accumulated set-aside is $18,565,439. Fiscal Year 2016-17 Operating revenues are projected to be $10.8 million. This includes sales tax revenue of $10.2 million, an increase over the FY 2015-16 projections. Total expenditures are projected at $15.9 million, which includes $1.4 million in bond payments. $8.5 million is allocated for reimbursements to the City, including $131,729 for administrative services, $150,000 for TxDOT ditch acquisition, $5.4 million for SH288 Corridor enhancements, $1.8 million for Lower Kirby corridor enhancements, $450,000 for SH288 Frontage Road design and engineering and $600,000 for PEDC's office buildout at City Hall. Capital outlay expenditures of$2.4 million include $110,000 for design work for the SH288 Corridor enhancements, $150,000 for two additional gateway entry features, and $2.0 million for implementation of the SH 35 Gateways and Corridor Enhancements plan. Business incentive expenditures are budgeted at $1.3 million. This includes agreements already in place with Base Pair Biotechnologies, Brask-Neela, FloWorks International, Tool-Flo, Kelsey Seybold, and M&S Logistics, as well as $402,500 for future projects. The remaining expenditures cover staff and economic development, retention and development programs. Total expenditures are projected at $5.1 million over projected revenue. The projected FY 2016-17 beginning fund balance of $18,565,439 will end FY 2016-17 with a fund balance of $13,494,797. PEDC offices and staff previously resided in the University of Houston Clearlake—Pearland Campus, occupying 3,281 of 23,621 total square feet. In 2015, the Texas Legislature approved $24.5 million for the building of a Health Science building at the Pearland Campus, expected to open in the fall 2018. As part of those expansion plans, PEDC relocated its offices to the Shadow Creek Business Center in August 2016 to allow UHCL-Pearland to take over PEDC's existing offices. The offices at the Shadow Creek Business Center will serve as an interim office for approximately one year while permanent offices for PEDC are completed at City Hall as part of the City Hall and Annex renovation and systems upgrade. 198 PEARLAND ECONOMIC DEVELOPMENT FUND EXPENDITURE SUMMARY BY DEPARTMENT FY 2017 ADOPTED BUDGET FY 2016 FY 2016 FY 2017 FY 2015 Original Year End Adopted EXPENDITURES BY DEPT/DIVISION Actual Budget Amended Budget Salaries&Wages 582,368 635,242 677,847 669,732 Materials & Supplies 7,217 8,750 9,250 9,500 Maintenance Buildings &Grounds 2,620 2,870 3,550 6,000 Maintenance of Equipment 5,073 8,800 5,000 8,300 Services 760,895 1,365,226 1,069,352 1,539,536 Incentives 393,221 3,591,342 817,918 1,342,515 Transfers Out 1,180,332 8,724,243 8,531,729 Bond Payments 8,498,288 1,420,458 1,420,456 1,426,256 Inventory 1,544 5,000 5,000 5,000 Capital 317,325 5,155,000 1,490,000 2,365,000 TOTAL 11,748,883 12,192,688 14,222,616 15,903,568 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 2016 ACCOMPLISHMENTS • Opened 31 business attraction projects and conducted 60 visits with potential primary employers. Major announcements included Lonza's 100,000 square-foot clinical manufacturing and R&D facility in the Lower Kirby District. The company will initially employ 100, but anticipates the hiring up to several hundred scientists, engineers and biotech professionals in the next year. In addition, Lonza announced in September the addition of 150,000 square-feet to the facility currently under construction to accommodate the growth in demand for its personalized viral gene and cell therapies. Both phases combined, this project is expected to bring approximately $64 million in investment to the community. • Opened 5 business retention and expansion projects and conducted 74 visits with existing employers. Announcements included Bredero Shaw's construction of a new building at its facility and Lighting Etc.'s relocation to a new building on Magnolia Road. • Opened 6 new development/redevelopment projects, including the expansion of Stream Realty's Center at Pearland Parkway, the Pearland Marketplace development on Barry Rose and Grand Cornerstone's redevelopment plans for the former Alvin Community College campus. • Continued the implementation of two beautification plans for the community: the 288 Master Plan and a City Gateway plan. PEDC worked with the City and KPB to complete the construction of the first entry feature on Cullen Boulevard. In addition, construction was started on two additional entry features on Pearland Parkway and Dixie Farm Road. 199 FISCAL YEAR 2016 ACCOMPLISHMENTS (continued) • Continued implementation of the 288 Corridor Master Improvements Plan, including working with the City, TxDOT and BCTRA on construction documents for incorporating hardscaping improvements at the McHard, Hughes Ranch Road, FM 518 and Beltway 8 interchanges. Also completed an interlocal agreement between the City, County and PMMD#2 on the construction and maintenance of the improvements. • Continued to work with the City and Management Districts on the development of regional detention for the eastern portion of the Lower Kirby District, including acquisition of the TxDOT draining ditch and completion of the construction of the Phase I drainage improvements. • Continued implementation of the Pearland 20/20 Community Strategic Plan, including completing a mid-course update to the Plan that was approved by the steering committee in October, the PEDC Board in November, and City Council in January 2016. FISCAL YEAR 2017 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 continue efforts to ensure that the SH 288 bridge over Broadway is widened by TxDOT to facilitate additional lanes on FM 518 as part of the toll road project. • Continue to work with the City and Management District on the development of regional detention, underground electrical,the reconstruction of Hooper Road, the design and construction of North Spectrum, as well as formalize a consistent identity for the area with the development of a Lower Kirby branding strategy. • Begin implementation of the identified catalyst projects in the SH 35 Corridor Redevelopment Strategy to address infrastructure needs, redevelopment potential, underdeveloped sites and market opportunities. • Complete construction of landscape/streetscape/entry feature and improvements on Pearland Parkway and Dixie Farm Road and begin preliminary design for two additional entry features. • Continue implementation efforts for the Pearland 20/20 Strategic Plan. PEDC Number of New Projects by Industry 0 5 10 15 20 25 I Life Science Business/Professional Services ' Energy Manufacturing/Warehouse Developments Other 2016 Target ■2016 Actual PERFORMANCE MEASURES FY 2014 FY 2015 FY 2016 FY 2017 Actual Actual Actual Target Number of announced projects 16 9 14 13 Number of new projects 55 57 42 50 Number of visits 157 163 183 170 200 PEARLAND ECONOMIC DEVELOPMENT CORPORATION DEBT TO MATURITY Year Principal Interest Total 2016-2017 890,000 338,786 1,228,786 2017-2018 905,000 324,500 1,229,500 2018-2019 930,000 303,142 1,233,142 2019-2020 955,000 281,194 1,236,194 2020-2021 975,000 258,656 1,233,656 2021-2022 1,000,000 235,646 1,235,646 2022-2023 1,025,000 212,046 1,237,046 2023-2024 1,055,000 187,856 1,242,856 2024-2025 1,080,000 162,958 1,242,958 2025-2026 1,105,000 137,470 1,242,470 2026-2027 1,130,000 111,392 1,241,392 2027-2028 1,165,000 84,724 1,249,724 2028-2029 1,195,000 57,230 1,252,230 2029-2030 1,230,000 29,028 1,259,028 TOTAL $14,640,000 $2,724,628 $17,364,628 Principal Amount Series Outstanding Series 2016 14,640,000 TOTAL $14,640,000 As of 9/30/2017 principal outstanding will be$13,750,000 and interest outstanding will be $2,385,842 for total debt to maturity at 9/30/2017 totaling $16,135,842. $1,400,000 $1.200.000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 _ _ 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 •Principal ❑Interest 201 PEARLAND ECONOMIC DEVELOPMENT CORPORATION FY 2017 ADOPTED BUDGET DEBT SERVICE SCHEDULE Principal Amount Payment Outstanding Due Date Description Issued Principal Interest Total 9/30/2017 3/1/2017 Series 2016 14,640,000 166,034 166,034 13,750,000 9/1/2017 890,000 172,752 1,062,752 Fiscal Year Total 890,000 338,786 1,228,786 13,750,000 TOTAL 890,000 338,786 1,228,786 13,750,000 Date Principal Issued Amount Outstanding Description Rate Maturity Issued As of 9/30/16 Annual Requirements Bond Series 2.36% 2016 14,640,000 14,640,000 3/1/2017 166,034 2016 2030 9/1/2017 172,752 9/1/2017 890,000 TOTAL 14,640,000 14,640,000 1,228,786 202 AUTHORITY The City of Pearland's Operating Budget is proposed and approved in accordance with State Law, the City Charter and the City Code of Ordinances PEARLAND CITY CHARTER ARTICLE 8 MUNICIPAL FINANCE SECTION 8.01 - Fiscal Year: The fiscal year of the City of Pearland shall begin at the first day of October and shall end on the last day of September of each calendar year. Such fiscal year shall constitute the budget and accounting year. SECTION 8.02 - Preparation and Submission of Budget: The City Manager, between sixty(60) and ninety (90) days prior to the beginning of each fiscal year, shall submit to the Council a proposed budget, which budget shall provide a complete financial plan for the fiscal year and shall contain the following: (a) A budget message, explanatory of the budget, which shall contain an outline of the proposed financial policies of the City for the fiscal year, shall set forth the reasons for salient changes from the previous fiscal year in expenditures and revenue items, and shall explain any major changes in financial policy. (b) A consolidated statement of anticipated receipts and proposed expenditures for all funds. (c) An analysis of property valuations. (d) An analysis of tax rates. (e) Tax levies and tax collections by years for at least the immediate past five (5) years. (f) General funds resources in detail. (g) Special funds resources in detail. (h) Summary of proposed expenditures by function, department and activity. (i) Detailed estimates of expenditures shown separately for each activity to support the summary (h) above. (j) A revenue and expense statement for all types of bonds, time warrants and other indebtedness. (k) A description of all bond issues, time warrants and other indebtedness outstanding, showing rate of interest, date of issue, maturity date, and amount authorized, amount issued and amount outstanding. (I) A schedule of requirements for the principal and interest of each issue of bonds, time warrants and other indebtedness. (m) The appropriation ordinance. (n) The tax-levying ordinance. SECTION 8.03 - Anticipated Revenues Compared With Other Years in Budget: In preparing the budget, the City Manager shall place in parallel columns opposite the several items of revenue, the actual amount of each item for the last completed fiscal year, the estimated amount for the current fiscal year, and the proposed amount for the ensuing fiscal year. SECTION 8.04 - Proposed Expenditures Compared With Other Years: The City Manager, in the preparation of the budget shall place in parallel columns opposite the various items of expenditures the actual amount of such items of expenditures for the last completed fiscal year, the estimated amount for the current fiscal year, and the proposed amount for the ensuing fiscal year. SECTION 8.05 - Budget a Public Record: The budget and all supporting schedules shall be filed with the person performing the duties of City Secretary, submitted to the Council and shall be a public record. SECTION 8.06 - Notice of Public Hearing on Budget (Amended 5/19/2014): In accordance with state law, the City Council shall cause to be published in the official newspaper of the City of Pearland a notice of the hearing setting forth the date time and place of the public hearing on the submitted budget. 203 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. 204 JA Ili 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. 205 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. 206 ORDINANCE NO.1530 An Ordinance adopting a tax rate of $0.6812 and levying taxes for the use and support of the Municipal Government of the City of Pearland, Texas, and providing for the interest and sinking fund of the taxable year 2016. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That there is hereby levied and there shall be collected for the use and support of the Municipal Government of the City of Pearland, Texas, and to provide Interest and Sinking Fund for the Year Two Thousand Thirteen upon all property, real, personal, and mixed within the corporate limits of said City subject to taxation, a tax of $0.6812 on each One Hundred Dollars ($100.00) valuation of property, said tax being so levied and apportioned for the specific purpose herein set forth: (1) For the maintenance and support of the General Government (General Fund), the sum of$0.2412 on each $100 valuation of property. and (2) For the Interest and Sinking Fund. the sum of$0.44. Section 2. All monies collected under this ordinance for the specific items therein named, be and the same are hereby appropriated and set apart for the specific purpose indicated in each item and that the Assessor and Collector of Taxes, the Director of Finance, and the City Manager shall so keep these accounts as to readily and distinctly show the amount collected, the amounts expended, and the amount on hand at any time belonging to such funds. It is hereby made the duty of the Tax Assessor and Collector of Taxes and every person collecting money for the City of Pearland to deliver to the Director of Finance and the City Manager, at the time of depositing of any monies, a statement showing to what fund such deposit should be made, and from what source received. All receipts for the City not specifically apportioned by this ordinance are hereby made payable to the General Fund of the City. 207 ORDINANCE NO.1530 PASSED and APPROVED ON FIRST READING this the120h day of September, A.D., 2016. �1:- i az,) TOM REID MAYOR ATTEST: `�NN�Q�p 94,4 o ; Y NG L FING, T C �U'; " :�` Y SE TARP 1. PASSED and APPROVED ON SECOND and FINAL READING this the 19th day of September, A. D., 2016. ( ---) �cyYf 4) 4j TOM REID MAYOR ATTEST: `` ,0 1 1 1►►►,,'' Is NG I G, RM = �`� Y S ETAR • APPROVED AS TO FORM: (---) % ate_ 61------ DARRIN M. COKER CITY ATTORNEY 2 208 ORDINANCE NO.1529 An appropriation ordinance adopting a budget for the fiscal year beginning October 1, 2016, and ending September 30, 2017, and pay plans for fiscal year 2017. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Manager's proposed 2016-2017 Budget, attached hereto as Exhibit "A", be adopted in compliance with provisions of Article 8 of the Home Rule Charter of the City of Pearland, Texas which sets forth certain specific requirements as to the City of Pearland, Section 2. That City Council hereby appropriates certain sums, more specifically identified on Exhibit "A" attached hereto, for the proposed fiscal year 2016-2017 Budget. Section 3. That the City Council hereby confers upon the City Manager general authority to contract for expenditures without further approval of the Council for all budgeted items the cost of which do not exceed the constitutional and statutory requirements for competitive bidding. Section 4. That the City Council deems the Pay Plans (Exhibit "B") and Organizational Plan contained in the 2016-2017 Budget to be in the best interest of the City and is hereby adopted. Section 5. That this ordinance shall become effective from and after its passage on second and final reading. PASSED and APPROVED ON FIRST READING this the 12"'day of September, A. D., 2016. {,• TOM REID MAYOR 209 ORDINANCE NO.1529 ATTEST: Y U GLO I G, C —• j SEC ARY PASSED and APPROVED ON SECOND and FINAL READING this the 19th day of September, A. D., 2016. r\77 La TOM REID MAYOR ATTEST: \ti NG ING, T MC sok „or\ Y SE ETARY e toe APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY 2 210 EXHIBIT A City of Pearland Fiscal Year 2016-2017 Adopted Budget REVENUES EXPENDITURES Fund Description 2017 Adopted 2017 Adopted General $74,249,777 $76,454,035 P.E.D.C. $10,832,926 $15,903,568 Debt Service-General $34,974,788 $36,107,359 Special Revenue Funds Municipal Court Security $53,050 $62,031 Citywide Donation $21,900 $0 Court Technology $60,010 $73,579 Court Juvenile Management $85,100 $63,301 Traffic Impact Improvement $2,500 $0 Hotel/Motel $1,551,500 $1,072,180 Parks Donations $101,100 $127,500 Park& Recreation Development $53,000 $418,250 Tree Trust $10 $6,000 Sidewalk $5,000 $0 Police State Seizure $250 $35,100 Federal Police $65 $0 Grant $196,955 $196,926 Community Development $325,431 $325,431 University of Houston Capital Renewal Fund $0 $302,171 Municipal Channel $307,800 $502,675 Internal Service Fund Property/Liability Insurance $1,470,812 $1,370,267 Medical Self-Insurance $7,461,188 $7,505,354 Proprietary Funds Water and Sewer $44,810,025 $45,392,022 Solid Waste $7,150,864 $7,145,789 SUB TOTAL-OPERATIONS $183,714,051 $193,063,538 CAPITAL IMPROVEMENT PROGRAM(CIP)- Water/Sewer Capital Projects Funds Utility Impact Fee $22,701,410 $42,161,199 Shadow Creek Impact Fee $860,000 $700,000 1999 W&S Revenue Bonds $13,578,620 $13,648,754 Water/Sewer Pay As You Go $552,500 $605,459 MUD 4 Capital Program $150 $0 Capital Projects Funds Capital Projects $102,500 $261,279 Capital Projects-CO 2001 $7,071,058 $13,059,703 Capital Projects-CO 2006 $481,331 Capital Projects-GO Series 2009 $32,989,782 $33,391,605 SUB TOTAL-CIP $77,856,020 $104,309,330 GRAND TOTAL: $261,570,071 $297,372,868 210-A e Pt A 4' c�4111L ,9C PEA AND TEX AS Sr . Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly City Manager,City Attorney and Determined by City Council Municipal Court Judge Assistant City Manager, Deputy City Determined by City Manager Manager,and Department Heads Deputy City Attorney 72 $89,667 $43.1092 $112,084 $53.8865 $134,501 $64.6638 Assistant Police Chief 71 $87,480 $42.0577 $109,350 $52.5722 $131,220 $63.0866 70 $85,346 $41.0319 $106,683 $51.2899 $128,020 $61.5479 69 $83,265 $40.0312 $104,081 $50.0389 $124,897 $60.0467 Vice President-EDC 68 $81,234 $39.0548 $101,542 $48.8185 $121,851 $58.5822 67 $79,253 $38.1022 $99,066 $47.6278 $118,879 $57.1533 Assistant City Attorney 66 $77,320 $37.1729 $96,650 $46.4661 $115,979 $55.7594 City Secretary 65 $75,434 $36.2662 $94,292 $45.3328 $113,151 $54.3994 Assistant Fire Chief 65 Assistant Director of Engineering 65 Assistant Director,Finance 64 $73,594 $35.3817 $91,992 $44.2271 $110,391 $53.0726 Capital Projects,Assistant Director 64 City Planner 64 Assistant City Engineer 63 $71,799 $34.5187 $89,749 $43.1484 $107,698 $51.7781 Assistant Director,Public Works 63 62 $70,048 $33.6768 $87,560 $42.0960 $105,072 $50.5152 Assistant Director,Parks&Recreation 61 $68,339 $32.8554 $85,424 $41.0693 $102,509 $49.2831 Budget Officer 60 $66,672 $32.0541 $83,341 $40.0676 $100,009 $48.0811 Building Official 60 Director,Marketing(EDC) 60 Manager,Information Technology 60 Manager,Facilities 60 Fire Marshal 60 Emergency Management Coordinator 60 Purchasing Officer 60 59 $65,046 $31.2723 $81,308 $39.0903 $97,569 $46.9084 Associate City Attorney 58 $63,460 $30.5095 $79,325 $38.1369 $95,190 $45.7643 Planner,Senior 58 Manager,Project 57 $61,912 $29.7654 $77,390 $37.2067 $92,868 $44.6481 Municipal Court Prosecutor 57 Accounting Supervisor 56 $60,402 $29.0394 $75,502 $36.2993 $90,603 $43.5591 Financial Analyst 56 Manager,Animal Control 56 211 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Manager,GIS 55 $58,929 $28.3311 $73,661 $35.4139 $88,393 $42.4967 System Administrator 55 Municipal Court Administrator 55 Manager,Sales and Event(CVB) 55 Manager,Water Billing&Collection 55 HR Manager 55 Risk Manager 55 Superintendent 54 $57,491 $27.6401 $71,864 $34.5502 $86,237 $41.4602 Senior Budget Analyst 54 Manager,Acquisition 53 $56,089 $26.9660 $70,112 $33.7075 $84,134 $40.4490 Planner,Associate 52 $54,721 $26.3083 $68,402 $32.8853 $82,082 $39.4624 Budget Analyst 52 Senior Accountant 52 GIS Specialist 52 Management Assistant 52 Crime Analyst 52 Grants Coordinator 52 HR Business Partner 52 Manager,Traffic 52 Development Coordinator 52 Manager,Sales and Event(CVB) 51 $53,387 $25.6666 $66,733 $32.0833 $80,080 $38.4999 Deputy Fire Marshal 50 $52,084 $25.0406 $65,106 $31.3007 $78,127 $37.5609 Jail Division Supervisor 50 Police Support Services Supervisor 50 Staff Accountant 50 Construction Inspector,Chief 49 $50,814 $24.4298 $63,518 $30.5373 $76,221 $36.6448 Associate Engineer 49 Emergency Management Planner 48 $49,575 $23.8340 $61,968 $29.7925 $74,362 $35.7510 Fire Inspector/Investigator 48 Health&Environmental Services Supervisor 48 Safety&Risk Coordinator 48 Manager,Resource Development 48 Planner 48 Manager,Marketing(CVB) 48 Deputy City Secretary 47 $48,366 $23.2527 $60,457 $29.0659 $72,548 $34.8790 Executive Assistant 47 212 i Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Position Title Range Annual Hourly Annual Hourly Annual Hourly i ■ Assistant Manager 46 $47,186 $22.6855 $58,982 $28.3569 $70,779 $34.0283 Recruitment Coordinator 46 Training&Development Coordinator 46 Plans Examiner 46 Building Inspector 45 $46,035 $22.1322 $57,544 $27.6653 $69,053 $33.1984 Police Telecommunications Coordinator 45 Humane Officer,Senior 45 Aquatics Supervisor 44 $44,912 $21.5924 $56,140 $26.9905 $67,368 $32.3886 Recreation Program Coordinator 44 Senior Center Supervisor 44 Special Events Coordinator 44 Communications Specialist 44 Building Maintenance Supervisor 44 Park Supervisor 44 Construction Inspector 44 Engineering Technician 44 Maintenance Supervisor 44 Treatment Plant Supervisor 44 Pre-Treatment Coordinator 44 Backflow Compliance Manager 44 Crime Victim Liaison 44 Multimedia Specialist 44 Addressing Coordinator 44 IT Support Specialist 43 $43,817 $21.0658 $54,771 $26.3322 $65,725 $31.5987 Project Coordinator 43 Vol Fire Recruit/Retention Coordinator 43 Buyer 42 $42,748 $20.5520 $53,435 $25.6900 $64,122 $30.8280 Payroll Specialist 42 Chief Mechanic 42 Therapeutic Recreation Specialist 42 Public Works Infrastructure Liaison 41 $41,705 $20.0507 $52,132 $25.0634 $62,558 $30.0761 Telecommunications Operator,Lead 41 Lead Jailer 41 Urban Forester 41 Accounts Payable Supervisor 40 $40,688 $19.5617 $50,860 $24.4521 $61,032 $29.3425 Community Outreach Coordinator 40 Legal Secretary 40 Office Supervisor 40 Customer Service Supervisor 40 Volunteer Coordinator 40 Facility Supervisor 40 Electrician 39 $39,696 $19.0846 $49,620 $23.8557 $59,544 $28.6268 Telecommunications Operator,Intermediate 39 213 Position Title Salary Minimum Minimum Midpoint Midpoint ' Maximum Maximum Range Annual , Hourly Annual Hourly Annual Hourly GIS Technician 38 $38,728 $18.6191 $48,410 $23.2739 $58,092 $27.9286 Planning Technician 38 Maintenance Crew Leader 38 Utility Maintenance Technician,Senior 38 Treatment Plant Operator II 38 Program Specialist 38 Recreation Program Coordinator,Assistant 38 Recreation Specialist 38 HR Assistant 38 Utility Field Service Technician,Lead 38 Videographer/Editor 38 Code Enforcement/Health Officer 37 $37,783 $18.1650 $47,229 $22.7062 $56,675 $27.2474 Crime Victim Specialist 37 Humane Officer 37 Animal Shelter Supervisor 37 Jailer 37 Telecommunications Operator,Basic 37 Administrative Assistant 36 $36,862 $17.7219 $46,077 $22.1524 $55,292 $26.5829 Chief Court Clerk 36 Juvenile Case Manager 36 Building Maintenance Technician 36 Traffic Signal Technician 36 Park Maintenance Crew Leader 35 $35,963 $17.2897 $44,953 $21.6121 $53,944 $25.9345 Police Cadet 35 Treatment Plant Operator I 34 $35,085 $16.8680 $43,857 $21.0850 $52,628 $25.3020 Utility Maintenance Technician 34 CCTV Technician 34 Pre-Treatment Technician 34 Property Room Technician 33 $34,230 $16.4566 $42,787 $20.5707 $51,344 $24.6848 Quartermaster 33 Custodial Crew Leader 32 $33,395 $16.0552 $41,743 $20.0690 $50,092 $24.0828 Mechanic 32 Records and Information Coordinator 32 Traffic Signal Technician,Trainee 32 31 $32,580 $15.6636 $40,725 $19.5795 $48,870 $23.4954 Accounts Payable Clerk 30 $31,786 $15.2815 $39,732 $19.1019 $47,678 $22.9223 GIS/GPS Technician 30 Heavy Equipment Operator 30 Water&Sewer Equipment Operator 30 Plans Expediter 30 Police Records Clerk,Lead 30 Utility Billing Specialist 30 214 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Deputy Court Clerk,Senior 29 $31,010 $14.9088 $38,763 $18.6360 $46,516 $22.3632 ROW Inspector 29 Humane Officer,Trainee 29 Animal Shelter Attendant 29 Office Assistant,Senior 28 $30,254 $14.5452 $37,818 $18.1815 $45,381 $21.8178 Court Bailiff 27 $29,516 $14.1904 $36,895 $17.7380 $44,274 $21.2857 Utility Field Service Technician 27 Equipment Operator 26 $28,796 $13.8443 $35,995 $17.3054 $43,194 $20.7665 Fleet Services Assistant 26 Facility Attendant 26 Records and Information Coordinator,Ass't 26 Senior Center Shuttle Bus Driver 26 Utility Maintenance Worker 26 Deputy Court Clerk 25 $28,094 $13.5067 $35,117 $16.8833 $42,141 $20.2600 Customer Service Representative 24 $27,409 $13.1772 $34,261 $16.4715 $41,113 $19.7658 Permit Clerk 24 Police Records Clerk 24 Sign Technician 24 23 $26,740 $12.8558 $33,425 $16.0698 $40,110 $19.2838 Building Maintenance Worker 22 $26,088 $12.5423 $32,610 $15.6778 $39,132 $18.8134 Office Assistant 22 Park Maintenance Worker 22 Receptionist 22 21 $25,452 $12.2364 $31,815 $15.2955 $38,177 $18.3546 20 $24,831 $11.9379 $31,039 $14.9224 $37,246 $17.9069 Custodian 19 $24,225 $11.6468 $30,282 $14.5584 $36,338 $17.4701 18 $23,634 $11.3627 $29,543 $14.2034 $35,452 $17.0440 17 $23,058 $11.0855 $28,822 $13.8569 $34,587 $16.6283 16 $22,496 $10.8152 $28,119 $13.5190 $33,743 $16.2227 Water Safety Instructor 15 $21,947 $10.5514 $27,434 $13.1892 $32,920 $15.8271 Camp Coordinator 15 14 $21,412 $10.2940 $26,764 $12.8675 $32,117 $15.4410 13 $20,889 $10.0430 $26,112 $12.5537 $31,334 $15.0644 12 $20,380 $9.7980 $25,475 $12.2475 $30,570 $14.6970 Head Lifeguard 11 $19,883 $9.5590 $24,853 $11.9488 $29,824 $14.3385 Recycling Center Attendant 10 $19,398 $9.3259 $24,247 $11.6574 $29,097 $13.9888 215 Position Title Salary Minimum Minimum Midpoint Midpoint Maximum Maximum Range Annual Hourly Annual Hourly Annual Hourly Lifeguard W/WSI 9 $18,925 $9.0984 $23,656 $11.3730 $28,387 $13.6476 8 $18,463 $8.8765 $23,079 $11.0956 $27,695 $13.3148 Balifield Attendant 7 $18,013 $8.6600 $22,516 $10.8250 $27,019 $12.9900 Fitness Attendant 7 Lifeguard 7 Camp Counselor 7 Recreation Attendant 7 6 $17,573 $8.4488 $21,967 $10.5610 $27,459 $13.2012 5 $17,145 $8.2427 $21,431 $10.3034 $26,789 $12.8793 4 $16,727 $8.0417 $20,908 $10.0521 $26,135 $12.5651 3 $16,319 $7.8455 $20,398 $9.8069 $25,498 $12.2587 2 $15,921 $7.6542 $19,901 $9.5677 $24,876 $11.9597 1 $15,532 $7.4675 $19,416 $9.3344 $24,269 $11.6680 216 CITY OF PEARLAND FIRE PAY PLAN FY 2017 Fire Certified Personnel (48/96) Salary MINIMUM MIDPOINT MAXIMUM Job Title Rank 2756 annual hours 2756 annual hours 2756 annual hours Range Annual Hourly Annual Hourly Annual Hourly F-1 Firefighter Firefighter $47,277 $17.1542 $59,096 $21.4428 $70,916 $25.7313 F 2 Driver/Operator Driver/Operator $52,185 $18.9351 $65,231 $23.6688 $78,278 $28.4026 Field Training Officer 2nd Lieutenant F-3 Lieutenant Lieutenant $57,603 $20.9009 $72,004 $26.1262 $86,405 $31.3514 F-4 Captain Captain $65,137 $23.6346 $81,421 $29.5433 $97,706 $35.4519 F-5 Battalion Chief Battalion Chief $73,542 $26.6843 $91,928 $33.3554 $110,313 $40.0265 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 MINIMUM MIDPOINT MAXIMUM Range Job Title Rank 2080 annual hours 2080 annual hours 2080 annual hours Annual Hourly Annual Hourly _ Annual Hourly E-5 Paramedic Paramedic $32,079 $15.4226 $40,099 $19.2782 $48,119 $23.1339 Hourly rate or regular rate of pay based on 2080 Regular Hours (although scheduled for 2920 in total.) Note:As the last employee in each "E"salary range is assigned to fire fighting duties or leaves the City the range will no longer exist. Uniformed Administrative Personnel (40 hour work week) Salary MINIMUM MIDPOINT MAXIMUM Range Job Title Rank 2080 annual hours 2080 annual hours 2080 annual hours Annual Hourly Annual Hourly Annual Hourly F-6 Clinical Manager Captain $65,137 $31.3159 $81,421 $39.1448 $97,706 $46.9738 Training Captain F-7 Logistics Battalion Chie Battalion Chief $73,542 $35.3567 $91,928 $44.1959 $110,313 $53.0351 Hourly rate or regular rate of pay based on 2080 Regular Hours. Paid Volunteer Fire Fighter (PVFF) Salary MINIMUM MIDPOINT MAXIMUM Range Job Title Rank 432 annual hours annual hours Annual Hourly Annual Hourly Annual Hourly VF-1 Firefighter Firefighter $7.2500 $9,525.00 VF-2 Driver/Operator Driver/Operator $8.0026 $9,525.00• VF-3 Lieutenant Lieutenant $8.8333 $9,525.00 VF-4 Captain Captain $9.9888 $9,525.00 VF-5 Battalion Chief Battalion Chief $11.2776 $9,525.00 Maximum annual salary will not exceed the hourly rate times 999 hours or the Maximum annual amount shown, whichever comes first. 217 CITY OF PEARLAND CIVIL SERVICE PAY PLAN FY 2017 0 1 2 3 4 5 6 7 8 9 10 11 Police $25.9085 $26.6858 $27.4863 $28.3109 $29.1603 $30.0351 $30.9361 $31.8642 $32.8201 $33.8047 $34.8189 $35.8634 Officer $4,490.81 $4,625.53 $4,764.30 $4,907.23 $5,054.45 $5,206.08 $5,362.26 $5,523.13 $5,688.82 $5,859.49 $6,035.27 $6,216.33 137* $53,889.71 $55,506.40 $57,171.55. $58,886.74 $60,653.34 $62,472.94 $64,347.13 $66,277.55 $68,265.87 $70,313.85 $72,423.26 $74,595.96 1st year 2nd year 3rd year 4th year 5th year 6th year $36.9393 $38.0475 $39.1890 $40.3646 $41.5756 $42.8228 Sergeant $6,402.82 $6,594.90 $6,792.75 $6,996.53 $7,206.43 $7,422.62 19* $76,833.84 $79,138.86 $81,513.0: $83,958.41 $86,477.16 $89,071.48 1st year 2nd year 3rd year 4th year $44.1075 $45.4307 $46.7937 $48.1975 Lieutenant $7,645.30 $7,874.66 $8,110.9Q $8,354.23 6* $91,743.62 $94,495.93 $97,330.81 $100,250.73 1st year 2nd year 3rd year $49.6434 $51.1327 $52.6667 Captain $8,604.85 $8,863.00 $9,128.89 3* $103,258.26 $106,356.00 $109,546.68 *Indicates number of authorized position in each classification. Monthly longevity pay is received by the Classified Employees of the City of Pearland in accordance with the Local Government Code, Chapter 141.032. When Classified Employee is eligible, shift differential pay is $86.00 bi-weekly. Those Police Officers and Sergeants assigned to the Criminal Investigation Division as Detective, such assignments at the discretion of the Chief, will receive $100.00/bi-weekly assignment pay for the duration of the assignment. All overtime for any classification shall be paid in accordance with applicable State and Federal law. 218 ORDINANCE NO. 1358-14 An Ordinance of the City Council of the City of Pearland, Texas, amending non-development usage and service fees; containing a savings clause, a severability clause, a repealer clause, declaring an emergency; providing for publication and an effective date. WHEREAS, various departments of the City charge fees for usage, permits, and other services not related to development; and WHEREAS, the organization of all such non-development fees into one ordinance enhances the efficiency of the fee amendment process and improves customer service; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the charges and fees contained in the attached Exhibit "A" are hereby adopted. Section 2. Savings. All rights and remedies which have accrued in favor of the City under this Chapter and amendments thereto shall be and are preserved for the benefit of the City. Section 3. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid, unconstitutional or otherwise unenforceable by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 4. Repealer. All ordinances and parts of ordinances in conflict herewith are hereby repealed but only to the extent of such conflict. 219 ORDINANCE NO. 1358-14 Section 5. Emergency. Declaration of Emergency. The Council finds and determines that adopting non-development fees inures to the benefit of the public and, therefore, bears directly upon the health, safety and welfare of the citizenry; and that this ordinance shall be adopted as an emergency measure, and that the rule requiring this ordinance to be read on two (2) separate occasions be, and the same is hereby waived. Section 6. Publication and Effective Date. The City Secretary shall cause this Ordinance, or its caption, to be published in the official newspaper of the City of Pearland, upon passage of such Ordinance. The Ordinance shall then become effective ten (10) days from and after its publication, or the publication of its caption, in the official City newspaper. PASSED and APPROVED on FIRST AND ONLY READING this the 19th day of September, A. D., 2016. TOM REID MAYOR TTEST: VOTING RECORD FIRST AND ONLY READING Y1 NG L M September 19.2015 Y SE ETARY '' and Perez. Voting "Aye" - Councilmembers Moore, Carbone, Reed, Ordeneaux, Hill ' 'itriiitt ``��`` �t Voting"No"-O. Motion passes 6 to 0. PUBLICATION DATE September 28,2016 EFFECTIVE DATE: October 7,2016 APPROVED AS TO FORM PUBLISHED AS REQUIRED BY SECTION 3.10 OF r� l THE CHARTER OF THE CITY OF PEARLAND,TEXAS DARRIN M. COKER CITY ATTORNEY 2 220 1 FEE SCHEDULE EMS Ambulance Application Fee $250.00 Ambulance Permit Fee $100.00 FIRE Re-inspection Fees Initial and 1' Re-inspection $ 0.00 2nd Re-inspection $ 75.00 3rd Re-inspection and thereafter, each $200.00 After hours Inspection $200.00 (After 5:00pm Monday-Thursday; after 4:00pm on Friday, and on weekends) POLICE Accident Report $ 6.00 (As may be amended from time to time by State Statute) Notarized Accident Report $ 8.00 (As may be amended from time to time by State Statute) Clearance Letter $ 5.00 (As may be amended from time to time by State Statute) Copies $ 0.10 per page Crafted Precious Metal Dealer License fee $100.00 annually Alarm Permit: Residential Rates provided in Commercial Ordinance No 569-3 False Alarm Fee: Police Department (per occurrence after 5 per yr) Rates provided in Fire Department (per occurrence after 5 per yr) Ordinance No 569-3 UTILITY BILLING Delinquent Fees: First Time Reconnect $ 30.00 Subsequent Reconnect Charges $ 50.00 "Red Flag" Identity Report $ 3.00 Connect Fee $ 30.00 Deposits: Commercial $200.00+ 2 mo. garbage Residential Owner $100.00 221 Residential Renter-low risk rating $150.00 Renter-medium/high risk rating $225.00 Residential Garbage Only $ 50.00 Commercial Garbage Only 2 mo. garbage Additional deposit for services terminated twice within six months Residential $ 75.00 Commercial S 150.00+ I mo. garbage Meter Cost: New/Replacement 5/8" $271.00 1" $328.00 2" Displacement $633.00 2" Compound $1,528.00 3" $8,555.00 4" $10,005.00 6" $13,402.00 8" (6 x 8) $14,605.00 10" $28,515.00 12" $29,693.00 (subject to change based on contract pricing) New meters would also require deposit and connection fee Register Replacement $240.00 Antenna Replacement Based on cost Meter Testing: 5/8—3/4" Meter $ 60.00 1" Meter $ 85.00 1 1/2" Meter $100.00 2"-8" Meters $150.00 8" and above Meters $200.00 Same Day New Service Connections $100.00 Containment Traps $100.00/year Including but not limited to grease, grit, grass, oil, lint and other contaminants. Meter Inspection: Initial $ 35.00 Re-inspection $ 35.00 Temporary Fire Hydrant Meter $1,500.00 ($75.00 non-refundable) Temporary Fire Hydrant Location Change $ 50.00 222 Additional Recycling Cart $ 60.00 Temporary Connect/Disconnect Fee $ 10.00 Temporary Water/Sewer Service for $50 for ten days, up to Residential Landlords/Property Managers 2,000 gallons and connection Water Base Charges Single Unit (by Meter Size) 5/8" $ 12.63 3/4" $ 18.95 1" $ 31.58 1 1/2" $ 63.16 2" $ 101.06 3" $ 189.48 4" $ 315.80 6" $ 631.60 8" (6 x 8) $1,010.56 10" $1,452.68 Multi-Unit $11.48 Water Volume Residential 0- 2,000 gallons in base 2,001 - 6,000 $ 3.57 6,001-15,000 $ 4.46 15,001—25,000 $ 5.36 25,001+ $ 7.14 Commercial/Multi-Unit 0—2,000 in base 2,001+ $ 4.46 Landscape 0—2,000 in base 2,001+ $ 5.36 Sewer Base Charges Inside City (by Meter Size) 5/8" $ 19.60 3/4" $ 29.39 1" $ 48.99 1 1/2" $ 97.98 2" $ 156.76 3" $ 293.93 4" $ 489.88 223 6" $ 979.75 8" (6 x 8) $1,567.61 10" $2,253.44 Sewer Volume 0-2,000 in base All Users $ 4.59 Residential Wastewater Cap Standardized monthly billing amount (gallons) to be based on the average consumption of the months of December, January, February, which are typically billed in Jan, Feb, Mar, not to exceed 12,000 gallons. Wastewater Cap would b adjusted each April. New Residents Default billing amount (gallons) of 6.000 gallons Billing Adjustments Water adjustments may be given for leaks, excluding irrigation leaks for all customers. Residential customer sewer rates are adjusted as set by the Winter Quarter Average. See Ordinance 870-6 Customer without metered water Default billing amount (gallons) of 10,000. Customer outside City Limits All charges for water and sewer service are at a rate of 1 %2 times that existing in the City. Sewer Use Credit Program Application Fee $500.00 Monthly Administrative Charge $ 50.00 Annual Testing Fee See Above If repairs are needed, in addition to the testing fee,there will be charges for labor and parts, plus retesting fee of$75.00 Accounts opened for the purpose of the sewer use credit for sub-metering will not be required to put down a deposit nor billed water or sewer rates. FINANCE NSF or Returned Check/Credit Card Fee $ 25.00 ENGINEERING Grading Permit $125.00 PUBLIC WORKS Water/Sewer Tap Actual Cost, not less than $250 224 CITY SECRETARY Copy Charge: (pursuant to State law, including but not limited to and as may be amended from time to time by StatE Statute) Paper $ 0.10 Oversize Paper $ 0.50 Diskette $ 1.00 Magnetic tape Actual Cost Data Cartridge Actual Cost Tape Cartridge Actual Cost Rewritable CD (CD-RW) $ 1.00 Non-rewritable CD (CD-R) $ 1.00 Digital video disc (DVD) $ 3.00 JAZ Drive Actual Cost Other electronic media Actual Cost VHS cassette $ 2.50 Audio cassette $ 1.00 Oversize paper copy $ 0.50 Specialty paper Actual Cost Labor charge $ 15.00 Overhead 20% of labor Alcohol Beverage Permit: BE -On Premise $150.00 BQ-Wine & Beer Off-Premise $ 60.00 BF -Off Premise $ 60.00 BG-Wine&Beer On-Premise that hold a Food/Bev. Permit $175.00 BL- Late Hours On-Premise $250.00 PE -Charge $ 20.00 LB -Late Hours Mixed Beverage $150.00 RM - Mixed Beverage Restaurant $750.00 Peddlers Permit Primary Permit Holder $ 75.00 max of 3 mo. Assistant working under primary $ 5.00/mo. per assistant Surety Bond (required) $1,000.00 ANIMAL CONTROL 1st impound $ 30.00 2nd impound $ 40.00 3rd impound $ 50.00 Adoption unaltered $ 35.00 Transportation $ 5.00 Adoption altered with Rabies $ 90.00 225 Adoption altered w/out Rabies $ 75.00 Livestock impound per head $125.00 2"d impound $150.00 3`d impound $200.00 Quarantine impound $ 60.00 Daily board domestic $ 10.00 per day Daily board livestock $ 30.00 per day City License Altered one year $ 10.00 3 year $ 30.00 Un-altered one year $ 30.00 3 year $ 80.00 Replacement tag $ 5.00 Dangerous Dog registration $100.00 Disposal Domestic Animals Up to 25 lbs $ 30.00 26 lbs to 60 lbs $ 60.00 61 lbs and over $ 90.00 Large animal contract $200.00 and up Euthanasia on demand $ 60.00 Surrender of owned pet $ 50.00 Cat carrier $ 5.00 Collars $ 3.00 Micro-chip implant included pet registration $ 25.00 Includes pet registration T-shirts $ 7.00 Hats $ 7.00 PARKS & RECREATION Non-resident fees for Household & Hazardous Waste $80 per 100 pounds Non-resident fees for Electronic Waste $20 per 100 pounds Non-resident fees Programs and Leagues Resident Non-resident Fee fee Cost less 20% discount Program Cost *Flat rate schedule for league registration; no discounts apply. Non-resident fee for Senior Center $ 50.00 per year Resident fee for Senior Center $ 25.00 per year Transportation fees for the Melvin Knapp Senior Center (Specialty Trip) $ 2.00 round-trip Banner Installation Fee $300.00 Special Event Permit Fee $ 50.00 226 Deposits Centennial Park Pavilions $ 50.00 Southdown Park Pavilion $ 50.00 Independence Park Large Pavilion $200.00 Independence Park Barbeque Shelter $100.00 Independence Park Swimming Pool $100.00 Gazebo at City Hall $ 50 .00 Westside Event Center Meeting Room $140.00 Westside Event Center Banquet Hall $140.00 Community Center $140.00 Banner Installation $ 50.00 Indoor rental cleaning Fee $180.00 Administrative fee for rental cancellations $ 25.00 Rental Fees Outdoor 1/2 Day Full Day Facility Resident Non-Resident Resident Non-Resident Centennial Park Pavilion $60.00 $90.00 $120.00 $180.00 Southdown Park Pavilion $60.00 $90.00 $120.00 $180.00 Independence Park Large Pavilion $180.00 $270.00 $360.00 $540.00 Independence Park BBQShelter $90.00 $135.00 $180.00 $270.00 Gazebo at City Hall $30.00 $60.00 Indoor Facility Non-profit Resident Non-Resident Westside Event Center Meeting Room $50.00/hr $60.00/hr $70.00/hr Westside Event Center Banquet Hall $60.00/hr $85.00/hr $95.00/hr Community Center $37.50/hr $65.00/hr $85.00/hr Athletic Field Usage Fees Recognized Sports Associations Deposit Player Fee Utility Fee $500.00 per Season $10.00 Res/$20.00 Non-Res $150.00 per Month Hourly Usage Resident Non-Resident Field Fee $15.00 $30.00 Utility Fee $15.00 $15.00 227 Recreation Center and Natatorium Initiation Fee, for all $ 32.00 Annual Membership with Contract Category Resident Non-Resident* Adult $330.00 $495.00 Additional Person $165.00 $247.50 Active Adult $231.00 $346.50 Additional Active Adult $110.00 $165.00 Household $660.00 $990.00 Natatorium Only Individual $220.00 $330.00 Household $440.00 $660.00 * Non-Resident Fee=resident rate+50% Monthly Membership without Contract Category Resident Non-Resident* Adult $35.20 $52.80 Additional Person $17.60 $26.40 Active Adult $24.20 $36.50 Additional Active Adult $12.10 $18.70 Household $69.30 $104.50 Natatorium Only Individual $23.10 $35.20 Household $46.20 $69.30 * Non-Resident Fee=resident rate+50% **Monthly Fee=annual divided by 12+50% Recreation Center and Natatorium Membership includes facilities,drop in child care,basic health and fitness classes. Natatorium Only membership includes access to the natatorium only. Trial Membership (one time per individual) $ 30.00 for 30 days Locker Rentals (maximum rentals- 10 lockers in each locker room) Annual $100.00 Monthly $ 10.00 Group Exercise Punch Card (20 punches) $ 50.00 Daily Fees 18+years of age $ 8.00 12-17 years ofage $ 5.00 3- 11 years of age $ 3.00 Family $ 12.00 Child Care $ 5.00 228 Definitions Individual 12-59 years old Active Adult 60+years old Household Up to 5 people residing in the same home Additional Person addition to an existing membership/fee. Must reside in the same house as primary Child 3-11 years old Family Limit of 5 people and maximum 2 adults Recreation Center Rental Rates Resident Non-Resident Minimum Non-Profit Member Non-Member Non-Member Hours Entire Facility $225.00/hour $450.00/hour $675.00/hour $900.00/hour 5 hours One Full Court Hourly $40.00/hour $80.00/hour $120.00/hour $160.00/hour 3 hours Daily $400.00/day $800.00/day $1,200.00/day $1,600.00/day 5 hours Entire Gym Hourly $80.00/hour $160.00/hour $240.00/hour $320.00/hour 5 hours Daily $800.00/day $1,600.00/day $2,400.00/day $3,200.00/day 5 hours One Multipurpose/ Activity Room $33.00/hour $65.00/hour $98.00/hour $130.00/hour 3 hours Entire Multipurpose/ Activity Room $65.00/hour $130.00/hour $195.00/hour $260.00/hour 3 hours Kidz Korner, The Zone, Gymnasium, Multipurpose Room,Track, Activity Room, Racquetball Courts, 2nd floor café are . *Day = 12 hours **Non-athletic events in the gymnasium will result in the following fees: Floor covering $100.00/court per day Security COP Security Fee Number (paid directly to officer at Participants beginning of event) COP Custodial Fee Event Staff <75 1 @$30.00/hour when admission charged $100.00/day $50.00 75-200 1 @$30.00/hour when admission charged $200.00/day $50.00 251-500 2 @$30.00/hour $350.00/day $100.00 501- 1,000 2 @$30.00/hour $450.00/day $150.00 >1,000 2 @$30.00/hour $600.00/day $200.00 COP P&R Aquatics Supervision (CPO/AFO) Fee (500+events only) $100.00 or$250.00/d ay Day Timing System (one system) (If operator is included then additional staff charges will apply) $200.00/day Events Requiring 50-meter configuration will require an additional set-up fee $150.00 Special Note: 2 parking lot attendants are required for all events with an anticipated 500+ total attendance. Attendants are paid directly at $15 per hour. * Custodial fee includes the additional cleaning supplies and inventory to support the rental as well as any staff needed to manage the cleaning of restrooms, trash, stands, etc. **For large rental/meets (over 500+) an additional "Extra Heavy Cleanup/Restoration Fee" of $250.00 will be assessed. 229 Health Fees for Health Certificates and Re-inspection on Food Related Establishments Full Service Limited Preparation 1- 4 employees $150.00 $125.00 5- 9 employees $200.00 $150.00 10- 25 employees $350.00 $200.00 26- 50employees $500.00 $225.00 51- 100 employees $600.00 $250.00 101 or more employees $750.00 $250.00 Foster homes $50.00 Prepackaged Only $150.00 Mobile Units $225.00 Additional units $225.00 Produce Vendor $100.00 Schools /Daycares $125.00 Temporary fees for Special Events $35.00 Pre-opening inspection fee $100.00 it Re-inspection Fee for failing initial inspection $75.00 230 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. 231 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. 232 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. 233 F FIDUCIARY FUND—A fund used to account for assets held in trust by the City for the benefit of individuals or other entities and is responsible for handling the assets placed under its control. FISCAL YEAR — A twelve-month period of time to which the annual budget applies, and at the end of which, the City determines its financial position and results of operations. FIXED ASSETS — Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment. and improvements other than land. FRANCHISE — A special privilege granted by a government, permitting the continued use of public property, such as City streets, and usually involving the elements of monopoly and regulation. FULL-TIME EQUIVALENT (FTE) — One full-time equivalent works 2,080 hours a year; a person working 1,040 hours per year is equivalent to 0.5 FTE. FUND — An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the purpose of carrying on specific activities or attaining certain objective. FUND BALANCE—The excess of an entity's assets over its liabilities. FUND BALANCE POLICY —A minimum fund balance that is required to be kept in reserve as defined in financial policy statements. Fund balances over the policy requirements may be appropriated in the budget. G GENERAL FIXED ASSETS — Capital assets that are not assets of any particular fund, but of the government unit as a whole. Most often these assets arise from the expenditure of the financial resources of governmental (as opposed to proprietary or fiduciary) funds. GENERAL FUND — The General Fund is the general operating fund of the City. It is used to account for the resources devoted to finance the services traditionally associated with local government, except those activities that are required to be accounted for in another fund. Transactions are recorded on the modified accrual basis. GENERAL OBLIGATION BONDS — When a government pledges its full faith and credit to the payment of the bonds it issues, those bonds are general obligation bonds. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) — Uniform minimum standards and guidelines for financial accounting and reporting. GOVERNMENTAL FUNDS — Funds generally used to account for tax-supported activities. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects and Debt Service). GRANTS — A contribution by one government unit to another. The contribution is usually made to aid in the support of a specific function, purpose, activity or facility. GULF COAST WATER AUTHORITY — Created by the State Legislature in 1965, its main mission is to acquire water supplies, store, transport, treat and purify, sell and deliver water, both surface and underground, for industry, agriculture and municipalities in Brazoria, Fort Bend, and Galveston Counties. IMPACT FEES — Fees charged to developers to cover in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development. INCOME —A term used in proprietary fund-type accounting to represent (1) revenues or (2) the excess of revenues over expenses. 234 INFRASTRUCTURE - Fixed assets that are immovable and have value only to the governmental unit. Common examples of infrastructure include roads, sidewalks, bridges and streetlights. INTERGOVERNMENTAL REVENUE— Revenue received from another governmental unit for a specific purpose. INTERNAL SERVICE FUND — Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. ISO RATING — The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting up the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to each fire department, which is used in the development of insurance rates for all properties within the protected area. Grading starts at 1, which is the best possible score and ends at 10, which is considered unacceptable. L LEASE/PURCHASE — A financing tool utilized to fund large capital outlays where the city may not have cash immediately available for purchase. This arrangement allows the city to use the item while payments are being made. LEDGER — A group of accounts in which are recorded the financial transactions of a governmental unit or other organization. LEVY — To impose taxes or special assessments. The total of taxes or special assessments imposed by a governmental unit. LIABILITIES — Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date. LONG-TERM DEBT— Debt with a maturity of more than one year after date of issuance. M MODIFIED ACCRUAL BASIS — The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. MUNICIPAL UTILITY DISTRICT (MUD) — A special district whose purpose is to provide water and sewer services to the residences and businesses within its boundaries. The district has ad valorem taxing power and can issue bonds to pay for construction and improvements to the district's system. Districts are typically established in unincorporated areas, but can also lie within the boundaries of one or more cities. N NOTE PAYABLE — An unconditional written promise signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time, either to the bearer or to the order of a person designated. 0 OPERATING BUDGET— Plans of current expenditures and the proposed means of financing them. ORDINANCE—A formal legislative enactment by the governing body of a municipality. ORGANIZATIONAL UNIT—A responsibility center within a government. P PERFORMANCE MEASURES — Specific quantitative measures of work performed within an activity or program. They may also measure results obtained through an activity or program. 235 PERSONNEL SERVICES — The costs associated with compensating employees for their labor (salaries, wages, insurance, payroll taxes, and retirement contributions). PROJECTION —A forecast of future trends in the operation of financial activities done through the remainder of the fiscal year to gain a better picture of the City's finances. The projections are adopted as the revised budget during the budget adoption process. PROPERTY INSURANCE FUND—Accounts for the activities of the city's property and casualty insurance. PROPERTY TAX—An annual or semi-annual tax paid to one or more governmental jurisdictions based on the real and personal property's assessed valuation and the tax rate, done in compliance with the State Property Tax Code. PROPRIETARY FUND — A governmental accounting fund having profit and loss aspects; therefore, it uses the accrual rather than modified accrual accounting method. The two types of proprietary funds are the Enterprise Fund and the Internal Service Fund. PURCHASE ORDER — A document issued to authorize a vendor or vendors to deliver specified merchandise or render a specified service for a stated estimated price. R RATINGS — Designations used by credit rating agencies to give relative indications of credit quality. Municipal bonds rated Baa or BBB and above are considered to be investment-grade. REFUNDING BONDS— Bonds issued to retire bonds already outstanding. RESERVE — An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or not available for appropriation and subsequent spending. RETAINED EARNINGS — The accumulated earnings of an enterprise or internal service fund which have been retained in the fund and which are not reserved for any specific purpose. REVENUES—The term designates an increase to a fund's assets. An item of income. REVENUE BONDS — Bond whose principal and interest are payable exclusively from earnings of an enterprise fund. ROLLBACK RATE — A taxing unit's rollback tax rate is a calculated rate that divides the overall property taxes into two categories - M&O and debt service. If a unit adopts a 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. 236 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. 237 ACRONYMS ACM —Assistant City Manager FF— Firefighter ACS—American Community Survey FF&E— Furniture, Fixtures & Equipment ADA—Americans with Disabilities Act of 1990 FIRMS— Flood Insurance Rate Maps AISD—Alvin Independent School District FLSA— Fair Labor Standards Act BCLS— Brazoria County Library System FM— Farm-to-Market Road CAFR—Comprehensive Annual Financial Report FOIA— Freedom of Information Act of 1966 CDBG —Community Development Block Grant FOG— Fats Oil Grease CH —City Hall FS— Fire Station CIP—Capital Improvement Program FT— Full-Time CM— City Manager FTE— Full-Time Equivalent CO's—Certificates of Obligation and Certificates of FY— Fiscal Year Occupancy GAAP—Generally Accepted Accounting Principles CPA—Certified Public Accountant GASB—Governmental Accounting Standards Board CPAP—Continuous Positive Airway Pressure GF—General Fund CPI —Consumer Price Index GFOA—Government Finance Officers Association of CPR— Cardiopulmonary Resuscitation the United States and Canada CR—County Road GIS—Geographical Information Systems CVB— Convention and Visitors' Bureau GO's—General Obligation Bonds DCM— Deputy City Manager GCWA—Gulf Coast Water Authority DDACTS — Date Driven Approaches to Crime and GPS—Global Positioning System Traffic Safety HERO— Housing Enforcement& Rehab Opportunity DS— Debt Service HGAC — Houston-Galveston Area Council DWI/DUI — Driving While Intoxicated/Driving Under the Influence HHW— Household Hazardous Waste EDC — Economic Development Corporation HIDTA— High Intensity Drug Trafficking Area EMPG — Emergency Management Program Grant HR— Human Resources EMS— Emergency Medical Services HTE — Harward Technology Enterprise (The City's previous ERP, by Sungard) EMT— Emergency Medical Technician HUD— Housing and Urban Development ERP— Enterprise Resource Planning HVAC— Heating, Venting &Air Conditioning ESL— English as a Second Language ICC — International Code Council ETJ — Extra Territorial Jurisdiction 238 I&I — Inflow and Infiltration IS— Information Systems PGSA— Pearland Girls Softball Association ISO— Insurance Service Office Phs— Phase (as in construction phase I, II) IT— Information Technology PHS— Pearland High School ITS— Intelligent Traffic System PISD— Pearland Independent School District JAT—Job Assessment Tool PMMD— Pearland Municipal Management District JHEC—John Hargrove Environmental Complex PSB— Public Safety Building KPB— Keep Pearland Beautiful PT — Part-time LF— Linear Feet PTC— Pearland Town Center LKMD— Lower Kirby Management District QA/QI —Quality Assurance/Quality Improvement LS— Lift Station RC/N — Recreation Center/Natatorium LTD— Limited RD— Radio Detection LUCAS— Lund University Cardiac Arrest System ROW— Right-of-Way M—Millions ROWs— Right-of-Ways MDT— Mobile Data Terminal RSA— Recognized Sports Association MGD—Million Gallons per Day S&P—Standard & Poor's MHI —Median Household Income/Mitsubishi Heavy SAN —Storage Area Network Industries SCADA—Supervisory Control and Data Acquisition MSA—Metropolitan Statistical Area SCBA— Self Contained Breathing Apparatus MUD—Municipal Utility District SCR— Shadow Creek Ranch NIC — Net Interest Costs SEC—Securities and Exchange Commission NWS — New World Systems (The City's new ERP) SF—Square Feet/Foot O&M —Operations & Maintenance SH288—State Highway 288 P&Z— Planning &Zoning SNAP—Safe Neighborhoods Around Pearland PC - Personal Computer SPA— Strategic Partnership Agreement PCI — Pavement Condition Index SQ. FT. - Square Foot/Feet PD— Police Department SRO—School Resource Officer PEDC — Pearland Economic Development Corporation SUI —State Unemployment Insurance PEG — Public, Educational and Government Channel SUV—Sports Utility Vehicle (television) TAAF—Texas Amateur Athletic Foundation PER— Preliminary Engineering Report TCEQ—Texas Commission on Environmental PFIA— Public Funds Investment Act Quality 239 TCLEOSE—Texas Commission on Law Enforcement Officers Standards and Education TCO—Telecommunications Operator TCOLE —Texas Commission on Law Enforcement Officers Standards and Education TIC—True Interest Costs TIP—Transportation Improvement Plan TML—Texas Municipal League TMRS—Texas Municipal Retirement System TIRZ—Tax Increment Reinvestment Zone TxDOT—Texas Department of Transportation TWDB—Texas Water Development Board UCR— Uniform Crime Reporting UDC— Unified Development Code UHCL— University of Houston-Clear Lake UofH— University of Houston W&S—Water& Sewer W/S—Water& Sewer WEC —Westside Events Center WRF —Water Reclamation Facility WWM—Waste Water Management ZBA—Zoning Board of Adjustment 240