HomeMy WebLinkAbout18- Reference-pp-291-352Reference
Reference Table of Contents
Fiscal and Budgetary Policy ................................................................................................................ 293
Contingency Reserve Requirements Worksheet ................................................................................ 317
Financial Ratio Comparisons .............................................................................................................. 318
Personnel Summary by Division 2010-2013 ....................................................................................... 320
Personnel Summary 2011/12 .............................................................................................................. 321
New Positions .......................................................................................................................... 322
Frozen Positions ...................................................................................................................... 323
Service Level Improvements Funded in Current Year (by Division) ..................................................... 324
Internal Service Premiums .................................................................................................................. 326
Transfers Between Funds ................................................................................................................... 328
Five Year Projections (General Fund, Water Services Fund, Electric Fund) ...................................... 329
Utility Rate Schedule ........................................................................................................................... 332
Ordinances .......................................................................................................................................... 336
GEDCO Budget – A Component Unit of the City of Georgetown for reference only ........................ 345
GTEC Budget – A Component Unit of the City of Georgetown for reference only ........................... 347
GTEC Outstanding Debt Summary – A Component Unit for reference only) .................................. 348
GTEC Principal & Interest Requirements – A Component Unit for reference only .......................... 349
Advisory Boards & Commissions ........................................................................................................ 350
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City of Georgetown
Fiscal and Budgetary Policy
1st Reading May 10, 2011 - Second Reading May 24, 2011
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent stewardship, planning, accountability, full disclosure and communication. The broad
purpose of the Fiscal and Budgetary Policies is to enable the City to achieve and
maintain a long-term stable and positive financial condition, and provide guidelines for the day-to-day planning and operations of the City’s financial affairs.
Policy scope generally spans areas of accounting and financial reporting, internal controls, both operating and capital budgeting, revenue management, investment and
asset management, debt management and forecasting. This is done in order to:
A. Demonstrate to the citizens of Georgetown, the investment community, and the bond
rating agencies that the City is committed to a strong fiscal operation; B. Provide precedents for future policy-makers and financial managers on common
financial goals and strategies;
C. Fairly present and fully disclose the financial position of the City in conformity to
generally accepted accounting principals (GAAP); and
D. Demonstrate compliance with finance-related legal and contractual issues in
accordance with the Texas Local Government Code and other legal mandates.
These policies will be reviewed and updated annually as part of the budget preparation process.
II. FUND STRUCTURE AND BASIS OF BUDGETING
The budgeted funds for the City of Georgetown include:
Governmental Funds: General Fund which accounts for all financial resources except those required to be accounted for in another fund, and
include basic governmental services, such as Street Maintenance, Planning and Development, Police, Fire and Parks, as well as, solid waste management.
Special Revenue Funds (SRF) account for specific revenues
that are legally restricted for specified purposes. The City
currently budgets 12 SRF Funds and includes Tourism, Parkland Dedication, Library Donations, Animal Services
Donations, and Street Maintenance Sales Tax.
Debt Service Fund is used to account for the payment of
general long-term debt principal and interest.
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Capital Project Funds are used to account for the acquisition
or construction of major capital facilities other than those
financed by enterprise activities.
Proprietary Funds: Internal Service Funds account for good or services provided by one internal department to another. The City uses this system to recognize cost for fleet replacement and
maintenance, facility maintenance and computer replacement and maintenance.
Enterprise Funds include the City’s “business like” activities including all the utility funds and the airport.
Basis of Accounting and Basis of Budgeting
The City’s accounts and budgets for all Governmental Funds using the modified accrual basis of accounting. This basis means that revenue is recognized in the
accounting period in which it becomes available and measurable, while expenditures are
recognized in the accounting period in which they are incurred. Because the appropriated budget is used as the basis for control and comparison of budgeted and
actual amounts, the basis for preparing the budget is the same as the basis of accounting. Exceptions to the modified accrual basis of accounting include: • Encumbrances, which are treated as expenditures in the year they are encumbered, not when expended.
• Grants, which are considered revenue when awarded, not received.
• Principal and interest on long-term debt, which are recognized when paid.
General government funds include the general fund, special revenue funds, debt service
fund and general capital project funds.
Proprietary Funds, which include the enterprise and internal service funds are
accounted and budgeted using the full-accrual basis of accounting. Under this method,
revenues are recognized when they are earned and measurable, while expenses are recognized when they are incurred regardless of timing or related cash flows. The basis
for preparing the budget is the same as the basis of accounting except for principal
payments on long-term debt and capital outlay which are treated as budgeted expenses. Exceptions include:
• Depreciation which is not budgeted
• Non-budgeted accruals such as compensated absences
III. FUND BALANCE POLICIES
The City’s Fund Balance is the accumulated difference between assets and liabilities
within governmental funds, and it allows the City to meet its contractual obligations, fund
disaster or emergency costs, provide cash flow for timing purposes and fund non-recurring expenses appropriated by City Council. This policy establishes limitations on the
purposes for which Fund Balances can be used in accordance with Governmental Accounting Standards Board (GASB) Statement Number 54.
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The City’s Fund Balance will report up to five components:
1. Non-spendable Fund Balance – includes inherently non-spendable assets that will never convert to cash, as well as, assets that will not convert to cash soon enough to
affect the current financial period. Assets included in this category are prepaid items, inventory and non-financial assets held for resale. 2. Restricted Fund Balance – represents the portion of fund balance that is subject to
legal restrictions, such as grants or hotel/motel tax and bond proceeds. 3. Committed Fund Balance – describes the portion of fund balance that is constrained
by limitations that the City Council has imposed upon itself, and remains binding
unless the City Council removes the limitation. 4. Assigned Fund Balance – is that portion of fund balance that reflects the City’s
intended use of the resource and is established in a less formal method by the City
for that designated purpose. 5. Unassigned Fund Balance – represents funds that cannot be property classified in
one of the other four categories.
IV. OPERATING BUDGET
Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The “operating budget” is the City’s annual financial
operating plan. The annual budget includes all of the operating departments of the general fund, proprietary funds, debt service funds, special revenue funds, and capital improvement funds of the City.
A. Comprehensive Plan – The 2030 Plan is written from a perspective of some twenty
years into the future. It expresses what we envision and desire our community to be
in the year 2030, and it reflects on all that we have accomplished since we launched the revision of our Comprehensive Plan in 2006. The Plan utilizes a Vision
Statement to guide the desired outcomes for the community.
B. Preparation – The Charter (Section 6.02) requires “a proposed budget prepared by
the City Manager and submitted to the City Council at least thirty days prior to the
end of the fiscal year. The budget shall be adopted not later than the twenty-seventh day of the last month of the fiscal year. No budget will be adopted or appropriations
made unless the total estimated revenues, income and funds available shall be equal
to or in excess of such budget or appropriations, except otherwise provided”. Therefore, the budget will be presented to the City Council no later than the 1st day of
August to provide the City Council time to adopt the budget in the required time
frame.
1. Proposed Budget – A proposed budget shall be prepared by the City Manager with participation of all of the City’s Division Directors within the provision of the Charter and the Vision Statement of the 2030 Plan.
a) The budget shall include four basic segments for review and evaluation:
• Revenues
• Personnel Costs
• Operations and Maintenance
• Capital and other non project costs
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b) The budget review process will include City Council participation in the
development of each segment and allow for citizen participation in the
process, and will allow for sufficient time to address policy and fiscal issues by the City Council.
c) A copy of the proposed budget will be filed with the City Secretary when it is submitted to the City Council. A copy will also be available at the
Georgetown Public Library for citizen review.
2. Adoption – Upon finalization of the budget appropriations, the City Council will
hold a public hearing, and subsequently adopt by Ordinance the final budget as amended. The budget will be effective for the fiscal year beginning October 1st.
The Annual Budget document will be submitted annually to the Government Finance Officers Association (GFOA) for evaluation and consideration for the
Distinguished Budget Presentation Award.
C. Balanced Budget – The goal of the City is to adopt and maintain a balanced
operating budget using sustainable funding sources that are expected to continue to
be available in subsequent fiscal years. Excess balances in operating funds from previous fiscal years shall remain in the fund in which they were appropriated until
either such excess balances are proposed and adopted pursuant to Section B of the this policy; until they are used to reduce outstanding debt obligations of the City; or both.
The Charter (Section 6.04) requires that an operating deficit created in any fiscal
year shall be paid off and discharged during the following year. In practice, deficit
has been interpreted to mean City funds as a whole. The City Council may choose from time to time to allow individual funds to have a negative balance as long as
Operating Reserve requirements for the City as a whole are maintained.
D. Planning – The budget process will be coordinated so that major policy issues are
identified prior to the budget approval date. This will allow City Council adequate
time for consideration of appropriate decisions and analysis of financial impacts.
E. Reporting – Summary financial reports will be presented to the City Council
quarterly. These reports will be in a format appropriate to enable the City Council to understand the overall budget and financial status. The City Manager will also
present a mid-year report to the City Council within 60 days following the end of the
second fiscal quarter that updates the status of projects and related financial goals set forth in the budget.
F. Control and Accountability – Each Division Director, appointed by the City
Manager, will be responsible for the administration of his/her departmental budget.
This includes accomplishing the Goals and Objectives adopted as part of the budget and monitoring each department budget for compliance with spending limitations.
Division Directors may transfer funds up to $20,000 within the operations and
maintenance or capital line items within a departmental budget category without additional approval. All transfers within the Personnel line items require approval of
the Chief Financial Officer and City Manager. All other transfers of appropriation or
budget amendments require either City Council or City Manager approval as outlined in Section IV.B.
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G. Budget Amendments – The Charter (Section 6.04) provides a method to amend for
budget amendments and emergency appropriations. The City Council may authorize
with a majority plus one vote, an emergency expenditure as an amendment to the original budget. This may be done in cases of grave public necessity to meet an
unusual and unforeseen condition that was not known at the time the budget was adopted. In practice, this has been interpreted to include revenue-related expenses within the enterprise funds and timing differences on capital improvement projects.
The following criteria will be used in evaluation of budget amendments:
• Is the request necessary?
• Why was the item not budgeted in the normal budget process?
• Why can't a transfer be done within the Division to remedy the condition?
The Chief Financial Officer must certify availability of revenues or funding sources prior to adoption. The City will amend the budget at year end, if needed, for revenue based
expenditures that exceeded budgeted amounts due to increased revenue and recognize any grant funded expenditures for grants received after the budget was adopted or last amended. The City will also amend the budget if necessary as part
of the Mid-Year Review process for any capital project timing adjustments from prior year, as well as, any other known adjustments needed and approved at that time.
H. Contingency Appropriations – The budget may include contingency appropriations within designated operating department budgets. These funds are used to offset
expenditures for unexpected maintenance or other unanticipated expenses that
might occur during the year. Currently, the City maintains contingency appropriations for insurance deductibles, unexpected legal expenses and equipment
repairs.
I. Council Discretionary Account – The budget may contain appropriated funds to be
used at the discretion of the City Council. Actual expenditure of these funds is specifically approved by the City Council on an item by item basis. The Council Discretionary Account for 2011/12 is $10,000 included in the General Fund.
V. REVENUE MANAGEMENT
A. Characteristics – The City will strive for the following optimum characteristics in its
revenue system:
1. Simplicity – The City, where possible and with out sacrificing accuracy, will strive
to keep the revenue system simple in order to reduce compliance costs for the
taxpayer or service recipient.
2. Certainty – A knowledge and understanding of revenue sources increases the
reliability of the revenue system. The City will understand its revenue sources and enact consistent collection policies to provide assurances that the revenue
base will materialize according to budget.
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3. Equity – The City shall make every effort to maintain equity in its revenue
system; i.e., the City should seek to minimize or eliminate all forms of
subsidization between entities, funds, services, utilities, and customer classes, and ensure an on-going return on investment for the City.
4. Revenue Adequacy – The City should require there be a balance in the revenue system; i.e., the revenue base will have the characteristics of fairness and
neutrality as it applies to cost of service, willingness to pay, and ability to pay.
5. Realistic and Conservative Estimates - Revenues will be estimated realistically,
and conservatively, taking into account the volatile nature of various revenue streams.
6. Administration – The benefits of a revenue source should exceed the cost of levying and collecting that revenue.
7. Diversification and Stability – A diversified revenue system with a stable source of income shall be maintained. This will help avoid instabilities in two particular
revenue sources due to factors such as fluctuations in the economy and
variations in the weather.
B. Other Considerations – The following considerations and issues will guide the City in its revenue policies concerning specific sources of funds:
1. Cost/Benefit of Incentives for Economic Development – The City will use due caution in the analysis of any incentives that are used to encourage
development. A cost/benefit (fiscal impact) analysis will be performed as part of
the evaluation.
2. Non-Recurring Revenues – One-time or non-recurring revenues should not be
used to finance current ongoing operations.
3. Sustainable Revenues –‘Sustainable" means revenue that is consistently
available year after year.
4. Property Tax Revenues – All real and business personal property located within
the City will be valued at 100% of the fair market value for any given year based on the current appraisal supplied by the Williamson County Appraisal District.
Conservative budgeted revenue estimates result in a projected ninety-eight percent (98%) budgeted collection rate for current ad valorem taxes. Two
percent (2%) of the current ad valorem taxes will be projected as the budget for delinquent ad valorem tax collection. For budgeting purposes, the City will forecast the proposed property tax rate using the effective maintenance &
operations (M&O) rate plus the interest & sinking (I&S) rate needed to fund tax supported debt service. Increases to the M&O rate will be deliberated and
determined by the City Council. Proposed tax revenue will be budgeted at a 98%
collection rate.
5. Interest Income – Interest earned from investments will be distributed to the
funds in accordance with the equity balance of the fund from which the monies were provided to be invested.
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6. User-Based Fees and Service Charges – For services associated with a user fee
or charge, the direct or indirect costs of that service will be offset by a fee where
possible. The City will review fees and charges no less than once every two years to ensure that fees provide adequate coverage for the cost of services.
The City Council will determine how much of the cost of a service should be recovered by fees and charges.
7. Enterprise Fund Rates – The City will review and adopt utility rates as needed to generate revenues required to fully cover operating expenses, meet the legal
requirements of all applicable bond covenants, and provide for an adequate level
of working capital. Utility rates will be reviewed annually as part of the budget process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs.
A Rate Stabilization Account has been established in the Electric Fund to offset
and mitigate potential impacts to customer rates due to increased fuel costs or
other external factors that may negatively impact Electric Rates.
Additionally, enterprise activity rates will include transfers to and receive credits
from other funds as follows:
a) General and Administrative Charges – Administrative costs should be charged to all funds for services of general overhead, such as administration, finance, customer billing, legal and other costs as appropriate. These
charges will be determined through an indirect cost allocation following accepted practices and procedures and reviewed annually by the City’s
external auditors.
b) Payment for Return on Investment – The intent of this transfer is to provide a
benefit to the citizens for the ownership of the various utility operations they
own.
• In-Lieu-of-Franchise-Fee. This transfer, currently 3% of operating revenues, is consistent with the franchise rates charged to investor
owned utilities franchised to operate within the City.
• Return on Investment. The return on investment (ROI) transfer is
currently calculated at 7% of operating revenues for all utilities except sanitation.
8. Intergovernmental Revenues – All potential grants will be examined for matching requirements and must be approved by the City Council prior to making
application of the grant. It must be clearly understood that operational
requirements (on-going costs) set up as a result of a grant program could be discontinued once the term and conditions of the program have been completed.
9. Revenue Monitoring – Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated, and any abnormalities
will be included in the quarterly report to the City Council.
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VI. EXPENDITURE POLICIES
A. Appropriations – The point of budget control is at the department level budget for
all funds. The Charter (Section 6.03) provides that any transfer of appropriation
between funds must be approved by the City Council and that the City Manager, without City Council approval, is authorized to transfer appropriations among departments, within the same operational division and fund. The City Manager may
also authorize transfer of salary adjustment monies between funds that are budgeted in a citywide account.
B. Personnel Costs – Costs related to salaries and benefits are budgeted at 100% total costs, assuming open positions are filled throughout the fiscal year. New
positions that are added during the budget process may have staggered hire dates
with appropriate costs reflected in the budget.
1. Vacancy Factor – General Fund appropriations will include a vacancy factor
equal to 1% of total General Fund salaries and related benefits to offset salary savings within the budget. The vacancy factor will be budgeted as a negative
expense within the General Government Department of the General Fund. For
2011/12 the Vacancy Factor equals 195,000. This factor will be reduced throughout the year as vacant positions are recognized within the department
budget. 2. Benefit Payout Reserve - The City will establish a benefit payout reserve equal to
15% of the accrued benefit liability for employees who are currently meet eligible to retirement. Only terminating employee benefit expenses may be paid from this
reserve. This reserve shall be funded as an offset to the vacancy factor. For
2011/12, $55,000 is budgeted for this reserve.
3. Position Control – The annual budget includes a set number of positions within
departments when approved and adopted by City Council. Additional positions cannot be added without approval of the City Council. The City Manager may
approve the transfer of authorized positions between departments if funds are
available within the department.
4. Use of Excess Salary Savings – Departmental savings generated due to open
positions or other salary line item savings cannot be spent by the department unless previously approved by the City Manager and validated by Finance as
“excess funds”.
C. Special Purpose Funding – In order to support community assistance programs,
the City designates specific funding for special purposes, including Social Services, Children’s Programs, and Public Art. The City reserves the ability to cap this special purpose funding when necessitated by budget contingency or compliance issues,
such as revenue shortfalls, or other reasons as determined by City Council.
1. Social Service Funding and Children’s and Youth Program Funding – The City
has targeted funding for these programs to be $5.00 per capita, which may be adjusted to offset the effects of general inflation based upon CPI. If previous
funding levels are higher than the targeted amount, and to avoid significant
reductions in levels of funding, the City Council shall seek to attain this target chiefly through population growth. Funding for these programs will be split 83%
for social services and 17% for youth funding. These funds will be allocated and
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paid according to the City Council’s guidelines for Social Service and Children’s
and Youth Program Funding.
The funding level for 2011/12 is $311,331 for Social Service Funding and
$88,718 for Children’s and Youth Program Funding, both of which are the same as in the previous year.
Any given year, unallocated funds in either the social Services Fund or the Children’s and Youth Program Funds can be allocated to the other fund, in an
amount not to exceed the estimated increase for the following year in the fund
receiving the transfer.
2. Public Art Funding - The City will annually allocate funding for Public Art on a
year to year basis depending on the availability of funds in an amount to be determined at the discretion of the City Manager. Funding priority will be given to
projects that include a matching donation, including contributions from local
organizations and sponsors. Any unspent funds will accumulate and be reallocated in the following budget year. Disbursement of these funds will be
determined by the City Council at the recommendation of the City’s Arts &
Culture Advisory Board.
Every effort will be made to include public art funding in future City facilities whose primary purpose is for public use. These projects will include a reasonable allowance for public art that fits the scope and purpose of the building
so long that it does not negatively impact the project cost beyond the original budget. In the event there is cost savings in the construction of City Facilities,
the City Council may consider utilizing that savings on the purchase of public art
for the facility.
D. Purchasing – All City purchases of goods or services will be made in accordance
with the City’s current Purchasing Policy and with State law. The City’s Purchasing Policy states purchases:
Less than $1,000 can be procured with a City credit card
Up to $3,000 do not require competitive bids
Between $3,000 and $50,000 require a minimum of three (3) informal bids
o 2 of the 3 bids must be certified Texas HUB (historically underutilized
businesses) if available within Williamson County
Over $50,000 require formal bids and must be posted on the City’s e-Bid
website All purchases greater than $50,000 require City Council authorization. They may
also require previous review and recommendation by an appropriate advisory board. All purchases must be approved according to preapproved limits within each department. All purchases greater than $10,000 require City Manager approval.
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The following shows a summary of approval requirements for purchases.
E. Prompt Payment – All invoices approved for payment by the proper City authorities
shall be paid within thirty (30) calendar days of receipt of goods or services or invoice
date, whichever is later in accordance with State law. The City will take advantage of all purchase discounts, when possible.
F. Risk Management – The City will pursue every opportunity to provide for the
Public’s and City employees’ safety and to manage its risks. The goal shall be to
minimize the risk of loss of resources through liability claims with an emphasis on safety programs.
G. Retirement Benefits – Proposals to revise benefits administered and provided by the Texas Municipal Retirement System shall include a written description, and,
detailed and summary numerical assessments of the changes that would result from
the proposed benefit revision.
1. The numerical assessments shall include the following:
a) The estimated change to the TMRS contribution rate that would result
from the proposed change in benefits, expressed as a percentage of
employee pay and as an annual dollar amount to the General Fund and to each City fund.
b) The estimated change to the City’s unfunded pension liability, expressed as a dollar amount. c) The estimated change to the City’s actuarial funding ratio.
2. The description and numerical assessments must be provided to the City Council at least 72 hours prior to consideration and approval, and must be
read aloud to the Council prior to Council consideration. 3. The estimated changes to the City’s contribution rate and the unfunded
pension liability presented pursuant to the section must be based on information provided by the TMRS actuary or by professional actuary
authorized by the TMRS to provide such information.
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4. Proposals to revise TMRS benefits must be voted on individually as part of
the City Council’s legislative agenda.
5. The City has established -80% as the targeted funding goal for the City’s unfunded pension liability. The City’s unfunded pension liability is 73.1% as of December 31, 2009, as disclosed by TMRS.
6. The City may elect to make an annual 1-time payment prior to further fund
the City’s unfunded pension liability. Such payment will be approved and
authorized by the City Council prior to December 31 in order to be recognized in the following year’s TMRS employer contribution rate calculation.
VII. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls
resulting from local and national economic downturns that adversely affect the City's revenue streams.
A. Immediate Action - Once a budgetary shortfall is projected, the City Manager will take the necessary actions to offset any revenue shortfall with a reduction in current
expenses. The City Manager may:
• Freeze all new hire and vacant positions except those deemed to be a necessity.
• Review all planned capital expenditures.
• Delay all "non-essential" spending or equipment replacement purchases.
The City Manager shall report in a timely manner to the City Council the projected
shortfall and the actions taken to resolve it.
B. Further Action -. If the actions identified in subsection A are insufficient to offset the
projected revenue deficit for the current fiscal year, the City Council may approve the following actions, in the order listed:
1. Apply unspent, unobligated surplus funds from prior fiscal years to fund one-time
costs in the current fiscal year budget.
2. Notwithstanding Section XII B.1 of this policy, authorize a reduction in the
unobligated fund balance in the General Fund, pursuant to Section XII B.1 of this policy, from 90 to 75 days.
3. Direct other reductions in services, including workforce reductions.
C. Replenish Fund Balance - As soon as practicable, without placing undue strain on city services, the City Council shall increase the unobligated fund balance in the General Fund, up to the 90-day amount required in Section XII B.1 of this policy.
VIII. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
The City’s goal is to maintain City facilities and infrastructure in order to provide excellent services to the customers within the community, meet growth related needs, and comply
with all state and federal regulations.
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A. Preparation – The City annually updates and adopts a five-year Capital
Improvement Program (CIP) schedule as part of the operating budget adoption process. The plan is reviewed and adjusted annually as needed, and year one is
adopted as the current year capital budget. The capital budget will include all capital projects, capital resources, and estimated operational impacts.
• Needed capital improvements are identified through system models, repair and maintenance records and growth demands.
• Economic development projects that have capital infrastructure needs must be
reviewed and approved for funding by the City no later than March 1 to be included in the annual CIP process. Any economic development project approved for funding after March 1 will be included in the following year CIP
process unless otherwise authorized by City Council.
• A team approach will be used to prioritize CIP projects, whereby City staff from all operational areas provide input and ideas relating to each project and its effect
on operations.
• Citizen involvement and participation will be solicited in formulating the capital
budget through neighborhood meetings, public hearings and other forums.
• Capital infrastructure necessary to meet the requirements of the City’s Annexation Plan will be identified separately within the CIP plan, so that funding alternatives can be developed if needed.
• Georgetown Utility Systems (GUS) Advisory Board will review the Electric, Water
and Wastewater plans prior to Council adoption. Georgetown Transportation Advisory Board will review the Streets and Stormwater Drainage plans prior to adoption.
B. Control – All capital project expenditures must be appropriated in the capital budget.
Availability of resources must be identified and then reviewed by the Finance Division before any CIP contract is presented to the City Council for approval.
• All utility contracts and other utility expenditures greater than $50,000 are
reviewed by the Georgetown Utility Systems (GUS) Advisory Board prior to
presentation to Council.
C. Financing Programs – Where applicable, assessments, impact fees, pro rata
charges, or other fees should be used to fund capital projects which have a primary benefit to specific identifiable property owners.
Recognizing that long-term debt is usually a more expensive financing method, alternative-financing sources will be explored before debt is issued. When debt is
issued, it will be used to acquire major assets with expected lives equal or exceeding
the average life of the debt issue.
• Short-term financing including Capital Leasing and other tax-supported obligations can be used to fund vehicles, computers and other operating
equipment provided the impact to the tax rate is minimal.
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Caution should be used in replacing assets with short-term, tax-supported
obligations due to the repetitive nature of the replacements. The total amount of I & S (interest and sinking) portion of the tax rate dedicated to fund short-term debt for
equipment replacement will not exceed $0.04. The estimated short-term I & S for 2011/12 is $0.31.
IX. CAPITAL MAINTENANCE AND REPLACEMENT
The City recognizes that deferred maintenance increases future capital costs.
Therefore, a portion of all individual funds with infrastructure should be budgeted each year to maintain the quality within each system.
A. Infrastructure Maintenance - On-going maintenance and major repair costs are included as capital expense within the departmental operating budgets. These costs
are generally considered system repairs and are not capitalized for accounting
purposes. They include such items as street seal coat, water line repairs and other general system maintenance.
B. Modified Approach - Pavement Condition Index (PCI) - Governmental Accounting
Standards Board Statement # 34 provides for an alternative approach to depreciation for measuring the value of infrastructure assets and the related costs incurred to maintain their service life at a locally established minimum standard. The City has
elected to implement this modified approach in maintaining their non-enterprise fund infrastructure assets. In order to adopt this alternative method, the City has
implemented an asset management system that determines if the minimum
standards are being maintained. This measurement system will be updated at least every 3 years. The City has elected to use this alternative method for reporting its
street infrastructure assets. The City uses the CarteGraph PavementView Pavement Management
Information System to track the condition levels of each of the street sections. The condition of the pavement is based on the following factors:
• Type of Distress
• Amount of Distress
• Severity of Distress
• Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a
condition index ranging from zero for a failed pavement to 100 for pavement with perfect condition. The condition index is used to classify pavement in the following
conditions:
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI
is considered maintaining the streets in a “good” condition. Staff will prepare a street
maintenance budget that meets this target for Council’s consideration during the budget process.
C. Internal Service funds – The City currently utilizes internal service funds to maintain
and replace existing assets. Assessments are made to the using funds for the use of
equipment currently in use and to be purchased during the year. In this way, suitable funds are available for the purchase of operational assets without the issuance of
debt.
1. Fleet Maintenance and Replacement - The City has a major investment in its
fleet of cars, trucks, tractors, and other equipment. The City will anticipate
replacing existing equipment, as necessary and will establish charges that are assigned to the using departments to account for the cost of that replacement.
Vehicle maintenance is also allocated in this manner.
2. Technology – It is the policy of the City to plan and fund the maintenance and
replacement of its computer network and other technology systems. The City
currently uses a four-year replacement cycle for all desktop computers. A reserve will be established within the ISF for replacement of major systems and
will be funded over time through excess revenues within the Fund. Funding for major systems assumes that 50% of the replacement cost will be debt funded.
3. Facilities Maintenance – The City has established an on-going maintenance
program, which includes major repairs, equipment, as well as contracts for
maintaining City facilities. The City has anticipated a useful life of such equipment and established a means of charging those costs to the various
departments in order to recognize the City’s continuing costs of maintaining its
facilities. Determination for facility repairs is based on useful life of the various elements of the facilities. A proportional cost for each element is expensed
within the budget for capital replacement. An additional unscheduled repair
reserve equal to 10% value of annual internal service funding is also budgeted. The estimate reserve for 2011/12 equals $30,000.
X. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
A. Accounting – The City is solely responsible for the recording and reporting of its
financial affairs, both internally and externally. The Chief Financial Officer (CFO) is
responsible for establishing the structure for the City’s Chart of Accounts and for assuring that procedures are in place to properly record financial transactions and report the City’s financial position.
B. General Government and Finance Subcommittee (GGAF) – The City may
establish a subcommittee consisting of (3) City Council members and (2) citizens
that may meet monthly to provide additional oversight to the City’s Finance operations. This subcommittee will also review general government items that are
not reviewed by another City advisory board before being presented to City Council.
The City’s CFO will be the liaison for this subcommittee.
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C. Audit of Accounts – In accordance with the Charter, an independent audit of the
City accounts will be performed every year. The auditor is retained by and is
accountable directly to the City Council. The auditing firm will serve for up to 3 years, at which time, the City will re-bid these services, thereby changing firms at
least every 3 years.
D. External Reporting – Upon completion and acceptance of the annual audit by the
City’s auditors, the City shall prepare a written Comprehensive Annual Financial Report (CAFR) which shall be presented to the City Council within 180 calendar days
of the City’s fiscal year end. The CAFR shall be prepared in accordance with
Generally Accepted Accounting Principals (GAAP) and shall be presented annually to the Government Finance Officer Association (GFOA) for evaluation and
consideration for the Certificate of Achievement in Financial Reporting.
E. Internal Reporting – The Finance Department will prepare internal financial reports,
sufficient to plan, monitor and control the City’s financial affairs.
XI. ASSET MANAGEMENT
A. Cash Management and Investments – The City Council has formally approved a
separate Investment Policy for the City of Georgetown that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government Code. This policy is reviewed annually by the City Council and applies
to all financial assets held by the City.
1. Statement of Cash Management Philosophy - The City shall maintain a
comprehensive cash management program to include the effective collection of all accounts receivable, the prompt deposit of receipts to the City’s depository,
the payment of obligations, and the prudent investment of idle funds in
accordance with this policy.
2. Objectives – The City’s investment program will be conducted as to accomplish
the following listed in priority order:
• Safety of the principal invested
• Liquidity and availability of cash to pay obligations when due
• Ensure public trust through responsible actions as custodians of public funds.
• Receive the highest possible rate of return (yield) consistent with the City’s
investment policy.
3. Safekeeping and Custody – Investments may only be purchased through brokers/dealers who meet the criteria detailed in the investment policy, which
also addresses internal controls related to investments.
4. Standard of Care and Reporting – Investment will be made with judgment and
care, always considering the safety of principal to be invested and the probable
income to be derived. The Chief Financial Officer is responsible for the overall management of the City’s investment program and ensures all investments are
made in compliance with the investment policy. An investment report, providing
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both summary and detailed information, will be presented to the City Council
quarterly.
5. Authorized Investments – The City can currently invest in the following:
• Certificates of Deposit
• U.S. Treasury and Agency securities
• Investment Pools that meet the requirements of the PFIA
• No-load Money Market Mutual Funds
• Fully collateralized Repurchase Agreements
• Other investments as approved by City Council and not prohibited by law
B. Fixed Assets – These assets will be reasonably safeguarded and properly
accounted for, and prudently insured.
1. Capitalization Criteria - For purposes of budgeting and accounting classification,
the following criteria must be capitalized:
• The asset owned by the City.
• The expected useful life of the asset must be longer than one year, or extend the life of an identifiable existing asset by more than one year.
• The original cost of the asset must be at least $5,000.
• The asset must be tangible.
• On-going repairs and general maintenance are not capitalized.
2. New Purchases – All costs associated with bringing the asset into working order will be capitalized as part of the asset cost. This will include start up costs,
engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase.
3. Improvements and Replacement – Improvements will be capitalized when they
extend the original life of an asset or when they make the asset more valuable
than it was originally. The replacement of assets components will normally be expensed unless they are a significant nature and meet all the capitalization
criteria.
4. Contributed Capital - Infrastructure assets received from developers or as a
result of annexation will be recorded as equity contributions when they are
received.
5. Distributions Systems - All costs associated with public domain assets, such as
streets and utility distribution lines will be capitalized in accordance with the capitalization policy. Costs should include engineering, construction and other
related costs including right of way acquisition.
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6. Reporting and Inventory – The Finance Division will maintain the permanent
records of the City’s fixed assets, including description, cost, department of
responsibility, date of acquisition, depreciation and expected useful life. Periodically, random sampling at the department level will be performed to
inventory fixed assets assigned to that department. Responsibility for safeguarding the City’s fixed assets lies with the department supervisor or manager whose department has been assigned the asset.
XII. DEBT MANAGEMENT The City of Georgetown recognizes the primary purpose of capital facilities is to provide
services to the community. Using debt financing to meet the capital needs of the
community must be evaluated according to efficiency and equity. Efficiency must be evaluated to determine the highest rate of return for a given investment of resources.
Equity is resolved by determining who should pay for the cost of capital improvements.
In meeting demand for additional services, the City will strive to balance the needs between debt financing and “pay as you go” methods. The City realizes that failure to
meet the demands of growth may inhibit its continued economic viability, but also
realizes that too much debt may have detrimental effects on the City’s long-range financial condition.
The City will issue debt only for the purpose of acquiring or constructing capital assets for the general benefit of its citizens and to allow it to fulfill its various purposes as a city.
A. Usage of Debt - Long-term debt financing will be considered for non-continuous
capital improvements of which future citizens will be benefited. Alternatives for financing will be explored prior to debt issuance and include, but not limited to:
• Grants
• Use of Reserve Funds
• Use of Current Revenues
• Contributions from developers and others
• Leases
• Impact Fees
When the City utilizes long-term financing, it will ensure that the debt is soundly financed by conservatively projecting revenue sources that will be used to pay the
debt. It will not finance the improvement over a period greater than the useful life of
the improvement and it will determine that the cost benefit of the improvement, including interest costs, is positive to the community.
The City may utilize the benefits of short-term debt financing to purchasing operating equipment provided the debt doesn’t extend past the useful life of the asset and the
potential impact to the tax rate is within policy guidelines. The I & S (interest and sinking) portion of the tax rate can not exceed $0.04 for short-term debt (3-10 years).
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B. Types of Debt –
1. General Obligation Bonds (GO’s) – General obligation bonds must be authorized by a vote of the citizens of Georgetown. They are used only to fund capital
assets of the general government and are not to be used to fund operating needs of the City. The full faith and credit of the City as well as the City’s ad valorem taxing authority back general obligation bonds. Conditions for issuance of
general obligation debt include:
• When the project will have a significant impact on the tax rate;
• When the project may be controversial even through it is routine in nature; or
• When the project falls outside the normal bounds of projects the City has
typically done.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs
of any activities where the capital requirements are necessary for the
continuation or expansion of a service. The improved activity shall produce a revenue stream to fund the debt service requirements of the necessary
improvement to provide service expansion. The average life of the obligation should not exceed the useful life of the asset(s) to be funded by the bond issue, and will generally be limited to no more than twenty (20) years, An exception can
be made for plant expansions or related system expansions whose useful life is in excess of 30 years. A cost benefit analysis will be done to fully disclose the impacts of extending debt beyond 20 years.
3. Certificates of Obligation, Contract Obligations (CO’s) – Certificates of obligation or contract obligations may be used to fund capital requirements that are not
otherwise funded by general obligation or revenue bonds. Debt service for CO’s may be either from general revenues (tax-supported) or supported by a specific
revenue stream(s) or a combination of both. Typically, the City may issue CO’s
when the following conditions are met:
• When the proposed debt will have minimal impact on future effective property tax rates;
• When the projects to be funded are within the normal bounds of city capital requirements, such as for roads, parks, various infrastructure and City
facilities; and
• When the average life of the obligation does not exceed the useful life of the
asset(s) to be funded by the issue.
Certificates of obligation will be the least preferred method of financing and will
be used with prudent care and judgment by the City Council. Every effort will be made to ensure public participation in decisions relating to debt financing.
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4. Self-supporting General Obligation Debt – Refers to certificates of obligation
issued for a specific purpose and repaid through dedicated revenues other than
ad valorem taxes. The annual debt requirements are not included in the property tax calculation. Both the Airport and Stormwater Drainage funds will issue this
type of debt, In addition, the Electric and Water Services Funds can utilize this method of funding non-system capital assets. The City also issues debt on behalf of the Georgetown Transportation Enhancement Corporation (GTEC) whom then
pledges 4B sales tax revenue for the repayment of that debt.
5. Internal borrowing between City funds – The City can authorize use of existing
long-term reserves as “loans” between funds. The borrowing fund will repay the loan at a rate consistent with current market conditions. The loan will be repaid
within ten (10) years. The loan will be considered an investment of working
capital reserves by the lending fund.
6. Short-term borrowing - The City may authorize the issuance of Public Property
Finance Contractual Obligations (PPFCO) which is short-term obligations for the acquisition of personal public property, such as equipment. PPFCOs are payable
from either ad valorem taxes or another dedicated revenue stream. Each
issuance will be assessed to ensure cost effectiveness and the repayment schedule will not exceed the useful life of the asset. Multiple equipment
acquisitions can be grouped in a single PPFCO issue in order to develop economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of bonds unless conditions in the bond market or the nature of the issue warrant a
negotiated bid. In such situations, the City will publicly present the reasons for the
negotiated sale. The City will rely on the recommendation of the financial advisor in the selection of the underwriter or direct purchaser.
D. Disclosure – Full disclosure of operating costs along with capital costs will be made to the bond rating agencies and other users of financial information. The City staff,
with assistance of the financial advisor and bond counsel, will prepare the necessary
materials for presentation to the rating agencies and will aid in the production of the Preliminary Official Statements. The City will take responsibility for the accuracy of
all financial information released.
E. Federal Requirements – The City will maintain procedures to comply with arbitrage
rebate and other Federal requirements.
F. Debt Structuring – The City will issue bonds with an average life of twenty (20)
years or less, not to exceed the useful life of the asset acquired. The structure should approximate level debt service unless operational matters dictate otherwise. Market factors, such as the effects of tax-exempt designations, the cost of early
redemption options and the like, will be given consideration during the structuring of long term debt instruments. Exceptions to the 20 year average life include debt
issues for major system expansions, such as water, sewer or electric plants, in which
case the City may issue debt greater than 20 years since the average life of the asset exceeds 30 years. A cost benefit analysis indicating the impacts of extending
debt beyond 20 years will be completed.
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G. Debt Coverage Ratio – Refers to the number of times the current combined debt
service requirements or payments would be covered by the current operating
revenues net of on-going operating expenses of the City’s combined utilities (Electric, Water, and Wastewater). The City will maintain a minimum debt service
coverage ratio of 1.5 times for these utilities as a whole. The bond ordinances allow the City to forego a debt reserve fund for its utility debt if the coverage is maintained at 1.35 times or better. Debt coverage for 2011/12 is budgeted at 1.99 times
coverage. A coverage ratio of 1.5 times will also be required for all funds issuing self-supporting debt.
H. Bond Reimbursement Resolutions – The City may utilize bond reimbursements as a tool to manage its debt issues, due to arbitrage requirements and project timing.
In so doing, the City uses its capital reserve "cash" to delay bond issues until such
time when issuance is favorable and beneficial to the City.
The City Council may authorize a bond reimbursement resolution for General Capital
projects that have a direct impact on the City's ad valorem tax rate when the bonds will be issued within the term of the existing City Council. In the event of unexpected
circumstances that delay the timing of projects, or market conditions that prohibit
financially sound debt issuance, the approved project can be postponed and considered by a future council until circumstantial issues can be resolved.
The City Council may also authorize revenue bond reimbursements for approved utility and other self-supporting capital projects within legislative limits. Currently
revenue bonds must be issued within 18 months after an eligible bond funded project is begun.
The total outstanding bond reimbursements may not exceed the total amount of the City’s reserve funds.
XIII. OTHER FUNDING ALTERNATIVES:
When at all possible, the City will research alternative funding opportunities prior to issuing debt or increasing user-related fees.
A. Grants - All potential grants will be examined for any matching requirements and the
source of those requirements identified. A grant funding worksheet, reviewed by Finance, that clearly identifies funding sources, outcomes and other relevant
information will be presented and approved by the City Council prior to any grant
application being submitted. It must be clearly understood that any resulting operation requirements of the grant could be discontinued once the term and
conditions of the project have been terminated. The City Council must authorize acceptance of any grant funding.
B. Use of Reserve Funds - The City may authorize the use of reserve funds to potentially delay or eliminate a proposed bond issue. This may occur due to higher
than anticipated fund balances in prior years, thus eliminating or reducing the need
for debt proceeds, or postpone a bond issue until market conditions are more beneficial or timing of the related capital improvements does not correspond with the
planned bond issue. Reserve funds used in this manner are replenished upon
issuance of the proposed debt.
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C. Developer Contributions - The City will require developers who negatively impact
the City's utility capital plans offset those impacts. These policies are further defined
within the City's utility line extension policy and other development regulations.
D. Leases - The City may authorize the use of lease financing for certain operating equipment when it is determined that the cost benefit of such an arrangement is advantageous to the City.
E. Impact Fees - The City will impose impact fees as allowable under state law for both
water and wastewater services. These fees will be calculated in accordance with
statute and reviewed at least every three years. All fees collected will fund projects identified within the Fee study and as required by state laws.
XIV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working capital/fund balances to provide a secure, healthy financial base for the City in the event
of a natural disaster or other emergency, allow stability of City operations should
revenues fall short of budgeted projections and provide available resources to implement budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.00,
such that operating revenues will at least equal or exceed current operating
expenditures. Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques.
1. Operating Reserves – The City will maintain reserves at a minimum of seventy-five (75) days (20.83%) of net budgeted operating expenditures. Net budgeted
operating expenditure is defined as total budgeted expenditures less interfund
transfers and charges, general debt service (tax supported), direct cost for purchased power and payments from third party grant monies. Total reserves for
2011/12 are $15,341,000. General Fund – The unobligated fund balance in the
General Fund should equal at least ninety (90) days or 25% of annual budgeted General Fund operating expenditures. 2011/12 reserves are $7,000,000 million.
2. Tourism Fund – A minimum sixty days (60) or 16.67% of operating expenditures will be reserved within the fund balance.
3. Water and Wastewater Funds – Working capital reserves in these funds should be 25% or ninety (90) days.
4. Other Funds –
• Stormwater Drainage Fund - $150,000
• Airport Fund – As funds are available, up to ninety (90) days or 25% of
operating expenses (less fuel costs).
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5. Electric Fund – The remaining balance to meet the citywide requirement of
seventy-five (75) days of reserve funds will be maintained within this fund.
For all other non-enterprise funds, the fund balance is an indication of the balance of
each particular fund at a specific time. The ultimate goal of each such fund is to have expended the fund balance at the conclusion of the activity for which the fund was established.
Reserve requirements will be calculated as part of the annual budget process and
any additional required funds to be added to the reserve balances will be
appropriated within the budget. Funds in excess of the minimum reserves may be expended for City purposes at the will of the City Council once it has been
determined that use of the excess will not endanger reserve requirements in future
years.
C. Liabilities and Receivables - Procedures will be followed to maximize discounts
and reduce penalties offered by creditors. Current liabilities will be paid within 30 days of receiving the invoice. Accounts Receivable procedures will target collection
for a maximum of 30 days of service. Receivables aging past 120 days will be sent
to a collection agency. The Chief Financial Officer is authorized to write-off non-collectible, non-utility accounts that are delinquent for more than 180 days, and utility
accounts delinquent more than 1 year, provided proper delinquency procedures have been followed, and include this information in the annual report to the City Council.
D. Capital Project Funds – Every effort will be made for all monies within the Capital Project Funds to be expended within thirty-six (36) months of receipt. The fund
balance will be invested and income generated will offset increases in construction
costs or other costs associated with the project. Capital project funds are intended to be expended totally, with any unexpected excess to be transferred to the Debt
Service fund to service project-related debt service.
E. General Debt Service Funds – Revenues within this fund are stable, based on
property tax revenues. Balances are maintained to meet contingencies and to make
certain that the next year’s debt service payments may be met in a timely manner The fund balance should not fall below one month or 1/12th annual debt service
requirements, in accordance with IRS guidelines.
F. Investment of Reserve Funds – The reserve funds will be invested in accordance
with the City’s investment policy. Existing non-cash investment would be exempt
through retirement of the investment.
G. Ratios/Trend Analysis - Ratios and significant balances will be incorporated into both the mid-year and annual reports to the City Council. This information will provide users with meaningful data to identify major trends of the City's financial
condition through analytical procedures. The following ratios/balances will be used as key financial indicators:
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• Fund Balance/Equity: Assets - liabilities FB/E AL (Acceptable level) minimum reserve
requirement
• Working Capital: Current assets less current liabilities
CA - CL AL minimum reserve requirement
• Current Ratio: Current assets divided by current liabilities CA/CL AL > 1.00
• Quick Ratio: "Liquid" current assets divided by current
liabilities
Liquid CA/CL AL > 1.00
• Debt/Assessed AV Taxes Debt divided by assessed Ad Valorem value D/AV AL < 5
• Debt Ratio: Current liabilities plus long-term liabilities
divided by total assets
CL +LTL/TA AL < 1
• Enterprise Oper Coverage: Operating rev divided by operating expense OR/OE AL > 1.25
• Times Coverage Ratio: Operating revenue less operating expense
divided by annual debt service
(OR-OE)/DSV AL > 1.5
The City will be to develop minimum/maximum levels for the above ratios/balances
through analyzing of City historical trends and future projections. These ratios will also be compared to other similar or regional municipalities for further analysis.
XV. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established
and maintained by the Chief Financial Officer for all functions involving cash handling
and/or accounting throughout the City. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement.
B. Internal Audit Program - An internal audit program will be maintained by the Chief Financial Officer to ensure compliance with City policies and procedures and to prevent the potential for fraud.
1. Departmental Audits – departmental processes will be reviewed to ensure dual
control of City assets and identify the opportunity for fraud potential, as well as, to
ensure that departmental internal procedures are documented and updated as needed.
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2. Employees or Transaction Review. - Programs to be audited include Petty Cash,
City Credit Card accounts, time entry, and travel. All discrepancies will be
identified, and the employee’s Division Director will be notified. The City Manager will also be notified depending on the seriousness of the infraction.
3. Results of all internal audits will be provided to City Council on a quarterly basis.
C. Division Directors Responsibility – Each division Director is responsible for ensuring that good internal controls are followed throughout their department, that all
Finance Division directives are implemented and that all independent auditor internal
control recommendations are addressed. Departments will develop and periodically update written internal control procedures.
XVI. STAFFING
The City’s goal as an employer is to attract and retain quality employees who provide excellent, friendly services to our community in an effective and efficient manner.
A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the City to operate effectively. Workload allocation alternatives will be explored before
adding additional staff. B. Cost of Living Adjustment (COLA) - To protect city employees from the effects of
general inflation, the City may fund an annual COLA for all regular employees not included in a defined pay plan. The COLA will be based on a three-year rolling
average of the Consumer Price Index (CPI) reported by the U.S. Bureau of Labor
Statistics for Southern cities pertinent to Georgetown’s population.
C. Additional Salary Adjustment - Additional salary adjustments for employees not
included in a defined pay plan may be recommended at the discretion of the City Manager.
D. Pay for Performance – The City Council may fund a one-time bonus incentive program to aid in retaining quality employees and reward employees for productivity
and job performance. This program will be funded with one-time available resources
and paid as a lump-sum distribution for performance that exceeds expectations during the review period.
• In addition, the City may also choose to fund an on-going merit adjustment based
on performance that exceeds expectations during the review period. This is in
addition to any one-time bonus incentive that may be awarded.
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Contingency Reserve Requirements Worksheet
(per Section XII.B of Fiscal and Budgetary Policy)
-------------------- B Y F U N D --------------------
CITY WIDE General Electric Water Services
Total budgeted expenditures 178,271,253 39,698,050 65,436,829 30,224,438
Less:
Purchased Power- Electric (39,149,279)(39,149,279)
Sanitation Contract - General (4,100,000)(4,100,000)
Social Service & Contingency funding (470,049)(470,049)
Capital Improvements - Electric, WW, Water (12,380,600)(5,146,800)(7,233,800)
Capital Improvements - Other Enterprise Funds (757,500)
Capital Improvements - GCP & Streets (4,567,000)
Capital Maintenance - General/Utilities (2,935,500)(1,250,000)(1,171,000)(514,500)
Capital Improvements - Special Revenue Funds (1,582,000)
Restricted Special Revenue funds (2,085,458)
Airport Fuel Charge (2,806,000)
Debt Service - General (8,933,641)
One-Time Only Expenses (503,377)(476,877)
Interfund Transfers (8,574,501)(19,718)(4,413,349)(2,309,841)
Interfund Charges (15,977,787)(6,157,123)(4,710,254)(3,283,895)
Budgeted operating expenditures 73,448,561 27,701,160 10,369,270 16,882,402
Percentage reserve requirements:
60 days - 16.67%12,241,427 4,616,860 1,728,212 2,813,734
75 days - 20.83%15,301,784 5,771,075 2,160,265 3,517,167
90 days - 25%18,362,140 6,925,290 2,592,318 4,220,601
09/30 RESERVE BALANCES:
Minimum Minimum Current
Days Amount Amount
Fund Required Required Included
Electric Fund N/A 2,160,265 3,400,000
General Fund 90 days 6,925,290 7,000,000
Stormwater Drainage Fund N/A 150,000 150,000
Water Services Fund 90 days 4,220,601 4,566,000
Airport Fund N/A 108,190 150,000
Convention & Visitors Bureau SRF 60 days 75,000 75,000
All other City Funds expenditures N/A*1,662,438 N/A (held in other operating funds)
Totals for all expenditures 75 days 15,301,784 15,341,000
Note:The city-wide contingency reserve requirement is 75 days of operating expenses. Only the General, Stormwater Drainage,
Water Services, and Convention and Visitors Bureau SRF have a specific minimum fund reserve requirement. All excess
reserves for City expenditures in funds that do not have a specific fund requirement are held in other operating funds.
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Financial Ratio Comparisons
Georgetown has chosen to measure its financial condition against cities in the surrounding area that have similar size, location or growth issues. The acceptable levels referred to below are based on the City’s Fiscal and
Budgetary Policy. (per Section XII.G of the Fiscal and Budgetary Policy)
Fund Balance to Equity ratio is a function of fund balance to equity for governmental type funds (General Fund, Special Revenue, etc.).
Working capital is the liquid reserve available to meet uncertainties. It is a function of current assets less current liabilities.
Current ratio and quick ratio are measures of liquidity. Liquidity is an organization's ability to convert noncash
assets into cash or to obtain cash to meet impending obligations. Current ratio includes inventories and prepaid expenses, whereas the Quick ratio excludes inventories and prepaid expenditures. A ratio of 1 or greater is an
acceptable level for both ratios.
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Financial Ratio Comparisons
Georgetown has chosen to measure its financial condition against cities in the surrounding area that have similar size, location or growth issues. The acceptable levels referred to below are based on the City’s Fiscal and
Budgetary Policy. (per Section XII.G of the Fiscal and Budgetary Policy)
Debt to assessed value is a ratio of the assessed value to tax supported debt. A ratio or less than 5 is acceptable.
The ratio of current liabilities plus long term debt to total assets. A ratio of 1 or lower is acceptable.
Enterprise operational coverage is a ratio of operating revenue to operating expenses of the city's
combined enterprise funds. A ratio of 1.25 or greater is acceptable.
Number of times the utility debt service requirements would be covered by the current utility operating
revenue net of current operating expense. A ratio of 1.5 or greater is acceptable.
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Personnel Summary by Division
2010 - 2013
09/10 10/11 10/11
FINAL / ORIGINAL FINAL / 11/12 12/13
PERSONNEL SUMMARY ACTUAL BUDGET ACTUAL ADOPTED PROJECTED
COMMUNITY DEVELOPMENT
Administration 2 2 2 2 2
Code Enforcement 6 6 6 6 6
Building Inspections 13 13 13 11 11
Planning 11 11 11 11 11
GIS 0 0 0 0 0
Total (FT/PT)32 32 32 30 30
COMMUNITY SERVICESConvention & Visitor's Bureau 3 3 3 3 3
Public Library 19/2.5 19/2.5 19/2.5 20/2.5 20/2.5
Parks Admin 3 3 3 3 3
Parks 18/1.5 18/1.5 18/1.5 18/1.5 18/1.5
Recreation 18/18.5 20/18.5 20/18.5 20/18.5 20/18.5
Total (FT/PT)61/22.5 63/22.5 63/22.5 64/22.5 64/22.5
FINANCE & ADMINISTRATION
Administration 6 6 6 6 6
Accounting 8 8 8 8 8
Municipal Court 7 7 7 7 7
Purchasing and Properties 7 7 7 7 7
Facilities Maintenance 7 7 7 7 7
Vehicle Service Center 6 6 6 6/.5 6/.5
Information Technology 9/.5 8/.5 8/.5 8/.5 8/.5GIS34444Utility Office 18 18 18 18 18Total (FT/PT)71/.5 71/.5 71/.5 71/1 71/1
FIRE SERVICES
Fire Administration 6 6 6 6 6
Fire Operations 81 81 81 84 84
Total (FT/PT)87 87 87 90 90
GEORGETOWN UTILITY SYSTEMS
Administration 6 7 7 6 6
Conservation 0 0 0 2 2
Electric Admin 0 0 0 0.5 0.5
Electric 31 29 24 25 25
T&D Operations 11 12 12 14 14
AMR 5 5 8 9 9Systems Engineering 14 16 16 17 17Environmental Services 1 1 1 1 1Water Services - Administration 3 3 3 0.5 0.5
Water Services - Reuse Irrigation 0 1 1 1 1
Water Services - Wastewater 12 14 14 14 14
Water Services - Water 14 16 16 17 17
Total (FT/PT)97 104 102 107 107
MANAGEMENT SERVICES
City Council 2 2 2 2 2
City Manager's Office 5/1 5/.5 5/.5 5/.5 5/.5
Legal 3 3 3 3 3
Public Communications 2 2/.5 2 2 2
Airport 2/3.5 2/3.5 0 0 0
Economic Development 3 3 3 3 3
Main Street 1 1 1 1 1
Human Resources 6 6 6/.5 6/.5 6/.5Total (FT/PT)24/4.5 24/4.5 22/1 22/1 22/1
POLICE SERVICES
Administration 9 5 5 5 5
Operations 95 99 99 99 99
Animal Services 7/1 6/2.5 6/2.5 6/2.5 6/2.5
Total (FT/PT)111/1 110/2.5 110/2.5 110/2.5 110/2.5
TRANSPORTATION SERVICES
Transportation Admin 3 1 1 2 2
Streets 18/.75 18/.75 18/.75 18/.75 18/.75
Airport 0 0 2/3.5 2/3.5 2/3.5
Stormwater Drainage 5/.5 5/.5 5/.5 5/.5 5/.5
Total (FT/PT)26/1.25 24/1.25 26/4.75 27/4.75 27/4.75
TOTAL CITY OF GEORGETOWN (FT/PT)509/29.75 515/31.25 513/31.25 521/31.75 521/31.75
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Personnel Summary 2011/12
Base Position Summary
2011-12
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Personnel Summary 2011/12
10/11
Final /
Actual
11/12
Base
Budget
11/12
Frozen
Positions
11/12
Funded
Positions
Community Development 32.00 30.00 (5.50)24.50
Community Services 85.50 86.50 (3.00)83.50
Finance 71.50 72.00 (1.00)71.00
Fire 87.00 90.00 (1.00)89.00
GUS 102.00 107.00 (1.00)106.00
Management Services 23.00 23.00 (1.50)21.50
Police 112.50 112.50 (5.00)107.50
Transportation 30.75 31.75 (3.50)28.25
Total 544.25 552.75 (21.50)531.25
New Positions 2011/12
Division Position FTEs
Community Services
Library Bookmobile Librarian (grant funded)1
Finance
Vehicle Service Center Service Writer/Parts 0.5
Fire
Operations Firefighters 3
Georgetown Utility Systems (GUS)
Electric Crew Leader 1
AMR Technician 1
T & D Utility System Operator 1
T & D I & C Substation Technician 1
TOTAL FUNDED NEW POSITIONS 8.5
323
Frozen Positions 2011/12
Division Position Length FTEs
Community Development
Inspections Combination Building Inspectors 12 mos.2
Code Enforcement Fire Inspector 6 mos.1
Planning Director of Planning 12 mos.1
Planning Planner III 12 mos.1
Planning Development Engineer Associate 12 mos.1
Community Services
Administration Director of Community Services 12 mos.1
Library Assistant Library Director 12 mos.1
Parks Parks Maintenance Worker I 12 mos.1
Finance
Municipal Court Clerk 6 mos.1
Municipal Court Associate Judge 12 mos.
Administration Project Manager 6 mos.1
Fire Services
Fire Administration Administrative Assistant III 12 mos.1
Georgetown Utility Systems (GUS)
Systems Engineering Systems Engineering Manager 12 mos.1
Management Services
Legal City Attorney 6 mos.1
Economic Development Economic Development Program Mgr 12 mos.1
Police
Operations Police Officer 12 mos.3
Operations Warrant Officer 12 mos.1
Administration Administrative Assistant 12 mos.1
Transportation Services
Streets Heavy Equipment Operator 6 mos.1
Streets Crew Foreman 12 mos.1
Streets Light Equipment Operator 12 mos.2
TOTAL FROZEN UNFUNDED POSITIONS 6 mos.5
TOTAL FROZEN UNFUNDED POSITIONS 12 mos.19
324
Fund/Dept Description FTE Total 1X
Community Development
Code Enforcement Telephone 2,570
2,570
Community Services
Parks Increase for hazardous tree removal and pruning 15,000
Parks Skid Steer for Parks Maintenance 50,000
Parks Park/Playground Renov. (Capital Maintenance)25,000
Recreation Camp opportunities for children w/Special Needs 16,147
Recreation Additional Computer Terminal at Rec Center 1,450
Recreation Summer Camp Operating Expense (offset by revenue)2,500
Recreation Increase in Cardio Equipment Lease 7,000
Tennis Center Day Camp Payroll 116
117,213
Finance
Facility Maintenance Recreation Center Defibrillators 1,600 X
Facility Maintenance Security System Additions Citywide 380,300
Facility Maintenance Grace Heritage Center - Restroom 30,000 X
Facility Maintenance Recreation Center Gym Curtain Divider 17,000 X
IT Microsoft Exchange and related technologies 265,000
Fleet Service Writer/Parks Person PART time 0.5 18,566
Fleet Contract out Annual Fire apparatus pump testing 5,600
Fleet Fire Department Ladder testing 4,000
1 722,066
Fire
Operations Station 5 Operational Increase 39,075
Operations 3 Firefighters to complete staffing for Fire 5 3 50,220
Operations Overtime for FLSA and Staffing 24,578
Operations Subscriptions & Dues 4,350
Operations Furniture and Equipment 50,000 X
3 168,223
Service Level Improvements Funded in Current Year
(by Division)
325
Fund/Dept Description FTE Total 1X
GUS
Electric Operations Electric Operations Maint Efficiency & Asset Mgmt 1 596,335
T & D Service Changes due to System Growth 2 234,838
Technical Services System Growth, SCADA 1 67,589
Collection Station Office Expense 1,000
Collection Station Utilities 2,000
Collection Station RFP process for new Waste Mgmt Contract 40,000 X
Water Plant Management Operations 29,500
Wastewater Plant Operations increase in regulatory & historical 15,000
Irrigation Maintenance Electrical budget 15,100
Streets Telephone Expense Increase 2,200
Streets Contracting for Utility Repairs (offset by revenues)275,000 X
Streets Travel & Training 1,430
Streets Crack Sealing pickup replacement 7,289
Streets Special Services Increase 25,000
Streets Toughbooks upgrade 3,100 X
4 1,315,381
Management Services
Communications City Reporter - growth of circulation 1,380
Communications Windows Certification training for Webmaster 5,040 X
Communications Subscriptions & dues 198
- 6,618
Police
Animal Services Uniforms 1,000
Animal Services Travel & Training 1,000
Animal Services Medical Supplies (offset by revenues)12,000
Operations Subscriptions & dues (offset by revenues)1,500
Operations Ammunition Increase 25,000
Administration Airtime for laptops 30,000
- 70,500
GRAND TOTAL SERVICE LEVEL REQUESTS 7.5 2,402,571
Service Level Improvements Funded in Current Year
(by Division)
326
Internal Service Premiums
* With Programs
Department
Facilities
Maintenance Fleet
Information
Services Joint Services General
General Fund
Transportation Administration 4,028
Streets 149,918 72,496
Planning 56,050 4,199 40,276
Inspection Services 26,590 39,148
Code Enforcement 31,362 24,165
Municipal Court 19,491 29,233
Fire Services Administration 206,257 24,924
Fire Operations 97,935 336,475
Environmental Services 4,244
City Manager's Office 51,465 5,071 22,825
General Government 14,222 2,375,138
City Council 35,300 9,130
Communications 9,130
Parks 116,717 150,963 87,371
Recreation 545,393 24,317 87,371
Library 243,395 78,634
Police Administration 138,350 213,943 585,362
Animal Services 52,091 12,792 33,771
Economic Development & Tourism SRFConvention & Visitors Bureau 22,908 13,106
Facilities Maintenance FundFacilities Maintenance 34,853 29,233
Fleet Management Fund
Vehicle Service Center 2,617 38,063 25,057
Joint Services Fund
Economic Development 23,471 13,695
Main Street 4,565
GUS Administration 122,140 6,598 29,707
Systems Engineering 43,338 73,058
Finance Administration 40,723 25,057
Accounting 33,409
Purchasing 34,564 15,676 29,233
Utility Office 36,658 33,037 75,171
Human Resources 24,287 27,390
Legal 3,028 13,695
327
Department
Facilities
Maintenance Fleet
Information
Services Joint Services General
Information Services Fund
Information Resources 61,680 4,887 33,409
GIS 16,705
Electric FundElectric Administration 13,659 359,085 195,220 3,362,414 685,332
Water Services Fund
Administration 316,848 144,294 2,478,561 303,383
Stormwater Drainage Fund
Stormwater Drainage 85,857 20,141 566,634 59,246
Airport FundAirport Operations 49,796 20,822 9,130 41,592 46,588
Total 1,914,262 1,676,154 2,299,858 8,824,339 *1,094,549 **
* Excludes intergovernmental charges to GTEC of $35,258
** Excludes intergovernmental charges to GTEC of $89,194
Internal Service Fund premiums include:
Facilities Maintenance
Contracts and repairs for buildings and grounds are charged to departments based on actual usage and
charges.
Fleet
Vehicle lease fees are charged to departments based on actual replacement costs. Maintenance fees are charged based on each department’s prior year actual usage.
Information Technology
Computer and software lease fees are charged to departments based on replacement costs and estimated usage.
Joint Services and General (nondepartment)
Fees are charged to funds receiving administrative services from another fund based on a reasonable, rational basis. The following factors are used as applicable.
relative revenues
relative personnel
number of utility accounts
number of work orders
number of requisitions
328
Transfers Between Funds
T R A N S F E RS T O
General
Fund SRF Fleet Facilities
Information
Technology Water Total Out:
T
R General Fund 15,168 4,550 19,718
A
N Gen Cap Projects 1,320,000 224,000 1,544,000
S
F SRF 60,812 15,000 1,200 77,012
E
R Joint Services 0
S
Electric 3,999,441 220,500 73,000 51,300 69,108 4,413,349
F
R Water Services 2,069,311 190,500 50,030 2,309,841
F
R Airport 35,000 10,940 45,940
O Stormwater
M Drainage 164,641 164,641
Total In:6,294,205 30,168 1,540,500 298,500 342,020 69,108 8,574,501
Interfund transfers include:
Dividend to General Fund:
Per the City’s Fiscal and Budgetary Policy, utility operations transfer seven percent of its gross billings for utility services to the General Fund as a payment of the profits of the fund or a return on investment.
The total return on investment transfer to the General Fund is $5,808,393 in 2011/12.
Other Transfers:
Other transfers include grant matching, fire hydrant testing, and equipment purchases to other funds.
329
General Fund
Five Year Projections
Projected Projected Projected Projected Projected
FY12 FY13 FY14 FY15 FY16
Beginning Fund Balance 7,829,950 7,484,291 6,987,948 8,842,820 11,452,644
Revenues
Property Taxes 9,220,000 9,320,000 9,997,292 10,412,517 10,920,341
Sales Tax 8,375,000 8,444,000 9,181,641 9,594,815 10,026,582
Sanitation Revenues 4,937,000 4,964,000 5,238,962 5,343,452 5,458,460
Interest 40,000 40,000 61,092 61,092 61,092
Administrative Charges 1,174,767 1,167,719 1,150,674 1,173,688 1,197,161
All Other Revenue 9,311,419 9,698,092 9,789,877 10,099,308 10,342,704
Return on Investment 6,107,655 6,335,038 6,327,842 6,728,152 6,967,945
Transfers In 186,550 190,281 194,087 197,968 201,928
Total Revenues 39,352,391 40,159,130 41,941,467 43,610,991 45,176,212
Expenses
Transportation 3,484,079 3,504,919 3,144,320 3,207,207 3,271,351
Community Development 2,051,045 2,072,667 2,278,354 2,323,803 2,370,161
Finance and Administration 526,256 542,382 547,161 558,104 569,266
Fire Department 7,569,156 8,237,971 7,376,445 7,555,380 7,738,685
Management Services 1,786,105 1,781,051 1,787,992 1,823,752 1,860,227
Community Services 7,247,680 7,311,841 7,428,046 7,576,624 7,728,173
Police Department 10,207,265 10,303,505 10,252,914 10,499,551 10,752,191
Georgetown Utility Systems 4,431,608 4,434,103 4,741,967 4,878,762 5,019,513
Administrative Expense 2,375,138 2,441,174 2,429,396 2,477,983 2,527,543
Transfers Out 19,718 25,860 100,000 100,000 100,000
Total Expenses 39,698,050 40,655,473 40,086,595 41,001,167 41,937,110
Ending Fund Balance 7,484,291 6,987,948 8,842,820 11,452,644 14,691,747
Contingency 7,000,000 7,235,000 7,235,000 7,235,000 7,235,000
Available Fund Balance 484,291 (247,052)1,607,820 4,217,644 7,456,747
Fund Balance as a Percent of Expenses 1.22%-0.61%4.01%10.29%17.78%
Effective Tax rate
Debt Service 0.16395 0.16710 0.16156 0.15782 0.15327
Operations & Maint.0.22355 0.22112 0.21752 0.21325 0.20838
Total 0.38750 0.38821 0.37908 0.37108 0.36165
330
Water Services Fund
Five Year Projections
The projections assume no water or wastewater retail rate increases through the five year horizon.
Current projections show that City may face a deficit by 2013/14 under that assumption and with
planned capital expenditures starting in 2013/14. Rates, capital improvements and system
operations are reviewed as part of the annual budget planning process. Strategies for any identified
potential shortfalls will be implemented as needed to eliminate the deficits.
Projected Projected Projected Projected Projected
FY12 FY13 FY14 FY15 FY16
Beginning Fund Balance 7,441,746 4,674,565 4,721,199 (4,805,990)(8,564,223)
Primary Revenues
Water Services 22,873,227 24,391,880 24,688,542 25,070,087 25,458,675
Other
Water 1,366,857 1,714,627 1,977,678 2,027,109 2,078,022
Wastewater 667,023 767,453 1,073,129 1,105,323 1,138,482
Irrigation 150 150 150 150 150
Total Primary Revenue 24,907,257 26,874,110 27,739,499 28,202,668 28,675,330
Primary Expenses
Contracts 3,545,938 3,545,787 3,797,377 3,890,267 3,985,523
Water 10,229,267 10,674,352 10,075,061 10,331,165 10,605,022
Wastewater 2,459,050 2,459,050 2,467,007 2,541,017 2,617,248
Irrigation 258,709 258,705 216,893 227,737 239,124
CIP Expense 7,214,000 7,872,000 15,513,000 9,474,000 8,736,000
Total Primary Expenses 23,706,964 24,809,894 32,069,338 26,464,187 26,182,917
Other Revenue
SIP Fees 350,000 0 761,100 507,400 126,850
Other 0 0 102,120 102,120 102,120
Bond Revenue 2,200,000 4,500,000 0 0 0
Total Other Revenue 2,550,000 4,500,000 863,220 609,520 228,970
Other Expenses
Transfer Out 2,309,841 2,175,616 1,828,198 1,854,906 1,882,107
CAFR Adjustment 0 0 0 0 0
Debt Service 4,207,633 4,341,966 4,232,372 4,251,329 3,504,506
Total Other Expenses 6,517,474 6,517,582 6,060,569 6,106,235 5,386,613
Ending Fund Balance 4,674,565 4,721,199 (4,805,990)(8,564,223)(11,229,454)
Contingency 4,566,000 4,566,000 4,100,000 4,100,000 4,100,000
331
Electric Fund
Five Year Projections
The projections assume no retail electric rate increases through the fiveyear horizon. Current
projections show that City may face a deficit by 2015/16 under that scenario. Rates, purchased power
costs and system operations are reviewed as part of the annual budget planning process. Strategies for
any identified potential shortfalls will be implemented over time to mitigate the potential deficit.
Projected Projected Projected Projected Projected
FY12 FY13 FY14 FY15 FY16
Beginning Fund Balance 10,626,623 8,565,922 8,688,638 7,090,019 7,266,741
Primary Revenues
Electric Services 61,527,544 63,271,406 65,709,202 71,046,364 74,083,395
Other 1,213,584 1,213,584 1,261,547 1,278,430 1,295,819
Total Primary Revenues 62,741,128 64,484,990 66,970,749 72,324,794 75,379,214
Primary Expenses
Contracts 39,149,279 43,244,954 46,338,088 52,236,036 54,860,548
Operations 11,287,283 11,050,263 10,125,982 10,570,730 11,114,725
Franchise Fees 1,845,826 1,898,142 1,971,276 2,131,391 2,222,502
CIP Expense 5,621,893 4,127,861 2,666,000 2,048,000 1,977,000
Total Primary Expenses 57,904,281 60,321,220 61,101,345 66,986,157 70,174,775
Other Revenue
Interest 35,000 35,000 60,000 60,000 60,000
Other 600,000 600,000 600,000 600,000 600,000
Bond Revenue 0 2,900,000 0 2,700,000 0
Total Other Revenue 635,000 3,535,000 660,000 3,360,000 660,000
Other Expenses
Transfer Out 4,413,349 4,182,792 4,749,644 5,123,245 5,335,838
CAFR Adjustment 0 0 0 0 0
Debt Service 3,119,198 3,393,262 3,378,379 3,398,669 8,363,382
Total Other Expenses 7,532,547 7,576,054 8,128,023 8,521,914 13,699,220
Ending Fund Balance 8,565,922 8,688,638 7,090,019 7,266,741 (568,039)
Contingency 3,400,000 3,400,000 3,525,000 3,525,000 3,525,000
332
Utility Rate Schedule
Electric Rates (effective on billings after 01/05/08)
All Customers
Power Cost Adjustment Variable Residential Sales Tax Inside City Limits: 2.00% of total electric charges Outside City Limits: None
Commercial Sales Tax Inside City Limits: 8.25% of total electric charges Outside City Limits: 6.25% of total electric charges
Residential Service Customer Charge: $6.00 per month Energy Charge: $0.1046 per kWh
Small General Service
Customer Charge: $12.00 per month Energy Charge: $0.1020 per kWh
School Service Customer Charge: $12.00 per month
Energy Charge: $0.1146 per kWh Municipal Water & Wastewater Pumping Service
Customer Charge: $12.00 per month Energy Charge: $0.0922 per kWh
Large General Service Customer Charge: $20.00 per month
Demand Charge: $7.45 per kW, but not less than $372.50 Energy Charge: $0.0722 per kWh
Minimum Bill: $392.50 Industrial
Customer Charge: $50.00 per month Demand Charge: $6.30 per kW, but not less than $3,150.00 per month
Energy Charge: $0.0712 per kWh Minimum Bill: $3,200.00
Large Industrial Service Customer Charge: $100.00 per month
Demand Charge: $5.30 per kW, but not less than $10,600.00 Energy Charge: $0.0697 per kWh Minimum Bill: $10,700.00
Large Institutional Service
Customer Charge: $20.00 per month Energy Charge: $0.0941 per kWh Minimum Bill: $20.00
Municipal Service
Customer Charge: $12.00 per month Energy Charge: $0.0939 per kWh Minimum Bill: $12.00
333
Municipal Street Light Service
100 Watt HPL $4.75 (35 kWh)* 200 Watt HPL $8.66 (71 kWh)*
250 Watt HPL $10.36 (86 kWh)* 400 Watt HPL $16.12(137 kWh)*
Retail Street Light Service 100 Watt HPL $5.05 (35 kWh)*
200 Watt HPL $9.36 (71 kWh)* 250 Watt HPL $11.16 (86 kWh)* 400 Watt HPL $17.42 (137 kWh)*
High Pressure Sodium Lighting
100 Watt HPL $8.05 (35 kWh)* 200 Watt HPL $13.81 (71 kWh)* 250 Watt HPL $15.81 (86 kWh)*
400 Watt HPL $22.27 (137 kWh)*
*Includes applicable Power Cost Adjustment (PCA)
Water Rates (effective 01/01/11)
Customer Charge
Inside City Outside City
5/8inch meter $16.50 per month $21.80 per month
3/4 inch meter $18.50 per month $23.80 per month 1 inch meter $26.95 per month $31.37 per month 1 1/2 inch meter $45.55 per month $54.38 per month
2 inch meter $73.30 per month $87.43 per month 3 inch meter $189.45 per month $217.72 per month
4 inch meter $269.70 per month $313.87 per month 6 inch meter $481.55 per month $589.88 per month 8 inch meter $724.30 per month $865.63 per month
Cost per 1,000 gallons: $2.25 $2.60
Non-Potable Water Rates (effective 01/01/11)
Cost per 1,000 gallons $1.05
Conservation Water Rates (effective 01/01/11) Residential Only - Effective on Billings June 1 – October 31
Inside City Outside City
Per 1,000 gallons Per 1,000 gallons 0 to 18,000 gallons $2.25 $2.60
19,000 through 29,000 gallons $3.00 $3.35 30,000 through 39,000 gallons $4.50 $4.85
40,000 through 74,000 gallons $6.00 $6.35 Over 74,000 gallons $7.50 $7.85
334
Wastewater Rates (effective 4/1/07)
Residential and Small Commercial
Net Monthly Rate:
Flat Rate Inside City Limits: $29.25 per month Flat Rate Outside City Limits: $33.60 per month
Low income residential discount: 20% below current flat rate for qualifying households
Commercial
Net Monthly Rate:
a. Inside City Limits 1. Customer Charge: $ 44.25 per month
2. Volumetric Charge*: $ 2.35 per 1,000 gallons b. Outside City Limits
1. Customer Charge: $ 50.90 per month 2. Volumetric Charge*: $ 2.70 per 1,000 gallons
High Strength Commercial
Net Monthly Rate:
a. Inside City Limits 1. Customer Charge: $ 44.25 per month 2. Volumetric Charge*: $ 3.70 per 1,000 gallons
b. Outside City Limits
1. Customer Charge: $ 50.90 per month 2. Volumetric Charge*: $ 4.30 per 1,000 gallons
Large Commercial
Net Monthly Rate
a. Inside City Limits 1. Customer Charge: $ 78.60 per month 2. Volumetric Charge*: $ 2.35 per 1,000 gallons
b. Outside City Limits
1. Customer Charge: $ 90.40 per month 2. Volumetric Charge*: $ 2.70 per 1,000 gallons
Multifamily
Net Monthly Rate: a. Inside City Limits 1. Customer Charge: $105.15 per month
2. Volumetric Charge*: $ 2.35 per 1,000 gallons
b. Outside City Limits 1. Customer Charge: $120.90 per month 2. Volumetric Charge*: $ 2.70 per 1,000 gallons
*The volumetric charges are calculated using the actual water consumption billed per month.
335
Garbage Rates (effective 10/01/09)
All customers inside city limits must pay garbage. Customers outside city limits have the option to select City garbage
pickup.
Sales Tax on Garbage Service: Residential and Commercial Inside City Limits: 8.25% Outside City Limits: 6.25%
Residential Rate: Inside City Limits / Tier I: $14.35 (includes recycling)
Outside City Limits / Tier II: $17.00 (with Georgetown utilities) Outside City Limits / Tier III: $17.95 (without Georgetown Utilities)
Non-Residential Rate: Varies - Rates will be set by type, amount and frequency of service
Stormwater Drainage Fees (effective 11/15/04)
All residential customers within the city limits must pay a monthly charge of $4.25. Non-residential customers within
the city limits must pay $4.25 per unit (2,088 square feet) which is calculated on the total square footage of impervious cover on the property.
Utility Deposit Requirements and Service Charges
Residential Deposit - $150.00 (cash, check or credit card); Will be waived with qualifying 12- month letter of credit.
Non-Residential Deposit - 1/6 Estimated Annual Bill. May substitute a Letter of Credit from a bank or surety bond. Will waive with a qualifying 36-month letter of credit.
Meter Tampering Fee - $100.00 per incident
Payment Plan Administration Fee - $20.00
Late Payment - 10%
Insufficient Check Charge - $30.00
Disconnect Service Charge for Delinquent Bill or Insufficient Check - $30.00
After Hours Reconnect Fee - $50.00 (additional)
Meter Reread Charge at Customer's Request - $10.00
Temporary Service (5 days) - $60.00
New or Transfer Account Charge - $30.00 plus $50.00 during non-business hours or same day connections
Meter Test - At Cost
Credit Cards: Discover, VISA and MasterCard accepted
Online payments accepted (http://www.georgetown.org/departments/billing/payments.php)
33
6
33
7
33
8
33
9
34
0
34
1
34
2
34
3
34
4
345
A Component Unit of the City of Georgetown
Georgetown Economic Development Corporation
(GEDCO) Budget
(Adopted by GEDCO Board June 23, 2011) (Approved by City Council August 23, 2011)
GEDCO Sales Tax Revenue (1/8)989,375
Interest Income 10,000
Total Revenue 999,375
Less:
Interlocal Agreement 51,400
Supplies 500
Legal 7,500
Travel & Training 1,500
Retainer Expense 12,000
Miscellaneous Expenses 100
Loan Repayment 104,400
Economic Development Projects (Unidentified)4,216,167
Airborn 52,105
Total Operating Expense 4,445,672
Annual Excess Revenues (3,446,297)
Fund Balance:
Beginning Fund Balance 3,693,641
+/- Annual Excess Revenues (3,446,297)
Less:
Contingency Reserves (= 25% Revenue)247,344
Ending Unreserved Fund Balance -
34
6
347
A Component Unit of the City of Georgetown
Georgetown Transportation Enhancement Corporation
(GTEC) Budget
(Adopted by GTEC Board July 20, 2011)
(Approved by City Council August 23, 2011)
Beginning Fund Balance $5,477,132
Revenue:
Sales Tax Revenue $3,950,000
Interest $30,000
PID Assessments $530,000
Williams Drive Refund $200,000
Total Revenue $4,710,000
Expense:
Interlocal Agreement (Indirect Costs)$72,000
Direct Costs Allocation $124,452
Administrative Expense & Supplies $67,100
Subtotal - Operating Expense $263,552
Debt Service $2,608,617
Transportation Improvement Program
14b&c SH 29 Bypass (RR2243 to IH 35)$820,000
24.3 Design NB Frontage Rd (FM 2338 to Lakeway)$250,000
EE FM 1460 Widening (Quail Valley to CR 114)$1,500,000
Subtotal - Transportation Improvement Program $2,570,000
Economic Development Projects
Projects to be determined $987,500
Subtotal - Transportation Improvement Program $987,500
Total Expense $6,429,669
Available Fund Balance $3,757,463
Reserves:
Contingency $1,120,000
Available Working Capital $2,637,463
348
A Component Unit of the City of Georgetown
Georgetown Transportation Enhancement Corporation
Outstanding Debt Summary 2011/12
Outstanding
9/30/11
Debt
Principal
11/12
Principal
Reduction
Estimated 2012
New Debt
Estimated
9/30/12
Outstanding
Debt
Georgetown Transportation Enhancement Corporation:
Self Supported 14,939,078 (929,011) - 14,010,067
Sales Tax Supported 9,870,000 (450,000) - 9,420,000
total GTEC:24,809,078 (1,379,011) - 23,430,067
349
A Component Unit of the City of Georgetown
Georgetown Transportation Enhancement Corporation
Summary of Debt Service Charges to Maturity
Certificates of Obligation issued by the City on behalf of GTEC and Sales Tax Revenue Bonds, both repaid by sales tax collections.
Year Ending Outstanding Total
September 30 Beginning of Year Interest Principal Requirements
2012 24,809,078 1,229,606 1,379,011 2,608,617
2013 23,430,067 1,161,270 1,506,789 2,668,059
2014 21,923,278 1,102,947 1,556,167 2,659,114
2015 20,367,111 989,550 1,605,333 2,594,883
2016 18,761,778 877,824 1,586,200 2,464,024
2017 17,175,578 762,383 1,583,211 2,345,594
2018 15,592,367 691,328 1,656,200 2,347,528
2019 13,936,167 616,509 1,733,211 2,349,720
2020 12,202,956 538,272 1,815,222 2,353,494
2021 10,387,734 456,612 1,887,233 2,343,845
2022 8,500,500 370,724 1,969,244 2,339,968
2023 6,531,256 280,030 1,816,256 2,096,286
2024 4,715,000 196,456 1,855,000 2,051,456
2025 2,860,000 128,919 1,145,000 1,273,919
2026 1,715,000 77,288 885,000 962,288
2027 830,000 37,350 830,000 867,350
9,517,068 24,809,078 34,326,146
350
Advisory Boards and Commissions
In addition to the permanent advisory boards and commissions listed, the Council also appoints temporary advisory committees from time to time to address specific, short-term issues. The 2011-12 Advisory Boards & Commissions
include:
Airport Advisory Board. Studies and makes recommendations to the City Council regarding operations and facility
improvements of the municipal airport. Ensures that the municipal airport is efficiently and adequately meeting the needs of the City and the air transportation industry.
Animal Shelter Advisory Board. Ensures that the City of Georgetown Animal Shelter complies with all City and
State laws governing its operation.
Arts and Culture Board. Encourages, stimulates, promotes, and fosters programs for the cultural enrichment of the
City, thereby contributing to the quality of life in Georgetown, and develops an awareness in of the value of the arts. Seven of the members should represent a broad spectrum of citizens including artists and those with a background in
the arts, arts organizations and businesses, education, structural and landscape architecture. One member shall be an authorized representative of the Georgetown Independent School District and one member shall be an authorized
representative of Southwestern University.
Building Standards Commission. Hears appeals and renders decisions on rulings by City building inspectors or officials in regard to code interpretation, enforcement, and substandard housing or structures within the City.
Convention & Visitors Board. The mission of the Georgetown Convention & Visitors Bureau is to encourage the community's economic success through promotion of Georgetown as a tourist destination, preserve & enhance the
cultural heritage and unique character of the community, and attract conventions and group tours to maximize the financial impact of tourism on the community. Membership requires a commitment of a minimum of four to ten hours per month.
Economic Development Advisory Board (EDAB). The seven member Economic Development Advisory Board (formerly the Economic Development Commission) acts as an advisory body to the City's Economic Development
Director and the City Manager. Members shall have experience in the following areas: business retention and expansion, land and property, business recruitment, inter-business and inter-governmental relations, retail and
infrastructure.
Ethics Commission. The Ethics Review Commission is composed of a eight representatives appointed by the
Mayor and each Councilmember. It has the authority to review and investigate complaints filed involving City Officials, and may issue a written finding of the Commission's determination when appropriate. The Ethics Commission meets when necessary to carry out its responsibilities, but shall hold an annual meeting during March to elect officers and
review the Ethics Ordinance, Commission Bylaws, and Commission Hearing Procedures.
Firefighters’ and Police Officers’ Civil Service. The Civil Service Commission is responsible for adopting,
maintaining and enforcing rules governing the hiring and promotional process and serves as a disciplinary appeal board for civil service employees in the Georgetown Fire and Police Departments. The Commission is comprised of
three commissioners appointed by the City Manager and confirmed by the Georgetown City Council. The commissioners serve staggered, three-year terms.
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General Government and Finance Advisory Subcommittee (GGAF). Empowered to review and analyze the
general government and finance activities of the City, to include but not limited to the following areas: Finance administration to include debt and treasury management, as well as, City budget; Accounting to include financial
reporting; Purchasing; Municipal Court; Facilities Maintenance, including construction and renovation of City facilities;
Vehicle Services, Information Technology; Compensation and Benefits; City insurance; and other related items as recommended by the City Manager. Three members are Councilmembers, two members are citizens at-large.
Georgetown Economic Development Corporation (GEDCO). Considers requests and grants economic development funds as authorized and defined by the Internal Revenue Code of 1986, Section 4A, leading to the
creation or retention of primary jobs and/or provision of significant capital investment which benefits the community of Georgetown. Three members are Councilmembers, two members are citizens at-large.
Georgetown Housing Authority. The purpose of the Board is to ensure that the City of Georgetown has housing that is attainable for citizens at all income levels. Membership is composed of nine members. Four members must
have knowledge of specialized fields relating to home ownership and the affordability of home ownership, while the remaining five should have general knowledge of affordable housing issues.
Georgetown Transportation Advisory Board (GTAB). Advises and assists the City Council in the development of
a multi-modal transportation planning process in coordination with regional, state, county, and local transportation agencies. Two members are Councilmembers, one member is a representative from the Planning and Zoning
Commission, and one member is a representative from the Georgetown Transportation Enhancement Corporation.
Georgetown Transportation Enhancement Corporation (GTEC). The purpose of this Corporation is to promote economic and community development within the City and the State of Texas through the payment of costs for
streets, roads, drainage, and other related transportation system improvements, including the payment of maintenance and operating expenses associated with such authorized projects.
Georgetown Utility System Advisory Board (GUS). Makes recommendations to the City Council regarding staff
presentations related to capital improvement projects and priorities, utility services, resource supplies and other Council-assigned projects.
Georgetown Youth Advisory Board. Advise the City Council on youth related issues. Members, ranging in age
from thirteen to eighteen years old, work to develop future leaders, promote positive adult/youth cooperation and dialogue, and encourage youth participation in solving community concerns. This board can have up to 24 members.
Historic & Architectural Review Commission. Makes recommendations to the City Council on the designation of
historic sites or districts, acts and assists the City Council in formulating design guidelines and other supplemental materials relevant to the historic preservation or design review, approves or disapproves Certificates of Design
Compliance, renders advice and guidance, upon request of property owners or occupants on new construction or the restoration, alteration or maintenance of any historic resource or other building within the District, and performs any
other functions requested by the City Council.
Library Advisory Board. Makes recommendations regarding the development of the book collection, programming, and other services provided by the Georgetown Public Library.
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Main Street Advisory Board. The Georgetown Main Street Program is a revitalization program designed to enhance
the unique character of downtown Georgetown through historic preservation and community involvement, while at the same time promoting downtown, providing educational and technical assistance to business and property owners,
and maintaining the beauty of Georgetown. Membership requires a commitment of a minimum of four to ten hours per month.
Parks and Recreation Board. Recommends, to the City Council, uses of parkland and parks/recreational facilities
and improvements in programs, activities, and facilities to meet community recreation needs and interests. Planning & Zoning Commission. Studies and reviews plans and recommends to City Council action to be taken in
regard to City growth and development and comprehensive community planning. Also, makes recommendations and acts as a hearing board on zoning requests. Drafts new development regulations and conducts periodic review of
plans and regulations.
Williamson County & Cities Health District. Advises state, county and local elected officials on the status of public health matters in Williamson County. The five governmental entities that form the Health District appoint citizen
representatives to the Williamson County Board of Health, which has administrative authority and oversees the operation of the Health District. Each city appoints one member and the Commissioners' Court appoints two members to staggered 3-year terms. The WCCHD Director is a non-voting member.
Zoning Board of Adjustment. The Zoning Board of Adjustment is responsible for hearing and taking final action on
variances from the zoning standards of the Unified Development Code (UDC), and considers appeals from administrative decisions made related to zoning standards. Members must be registered voters and must have
resided in the city limits for at least one year. One member of the Board shall be an active member of the Planning and Zoning Commission.