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HomeMy WebLinkAbout06- Financial-Summary-pp-43-741 Financial Summary Financial Summary Table of Contents Summary City Operations and Departments by Fund .............................................................................. 45 City Operations and Departments by Fund / by Division .......................................................... 46 Budgeted Revenues ................................................................................................................. 47 Budget Expenses by Division ................................................................................................... 48 Budgeted Expenses by Program.............................................................................................. 49 Revenues Property Taxes ......................................................................................................................... 50 Sales Tax ................................................................................................................................. 53 Utility Revenues........................................................................................................................ 54 Capital Recovery Fees ............................................................................................................. 56 Other Enterprise Fund Revenues ............................................................................................ 57 Other Miscellaneous Revenues ............................................................................................... 59 Fund Summaries All Funds Summary (By Fund / By Division)............................................................................. 60 All Funds Summary (By Fund / By Personnel-Operating-Capital) ........................................... 62 General Fund ........................................................................................................................... 64 Electric Fund ............................................................................................................................ 66 Water Services Fund................................................................................................................ 68 Airport Fund .............................................................................................................................. 70 Stormwater Drainage Fund ...................................................................................................... 71 General Capital Projects Funds ............................................................................................... 72 Special Revenue Funds ........................................................................................................... 73 Internal Service Funds ............................................................................................................. 74 CAFR Adjustments on the Fund Schedules are made to the previous actual (2009/10) provided. These adjustments balance the budgeted fund balances to the City’s Comprehensive Annual Financial Report (CAFR). 45 City Operations and Departments by Fund This chart represents the City’s operational departments by fund. It is intended to help the budget user understand the City’s organizational structure and its related funding sources. 46 City Operations and Departments by Fund / by Division This matrix represents the City’s operational departments by fund / by division. It is intended to help the budget user understand the City’s organizational structure and its related funding sources. General Fund Special Revenue Funds Electric Fund Water Services Fund Other Enterprise Funds Internal Service Funds Joint Service Fund Community Development Administration Code Enforcement Building Inspections Planning Community Services Parks Recreation Library CVB Tourism Finance and Administration Municipal Court Facilities Maintenance Fleet Management Information Technology Administration Accounting Purchasing Utility Office Geographic Information Systems (GIS) Fire Administration Operations Georgetown Utility Systems (GUS) Environmental Services Electric Operations Electric T&D SCADA/AMR Water Services Wastewater Services Reuse Irrigation GUS Administration Systems Engineering Management Services City Council City Manager’s Office Governmental Contracts Communications Human Resources Economic Development Main Street Legal Police Administrative Services Support Services Field Operations Animal Services Transportation Administration Streets Stormwater Drainage Airport Operations  Electric Transmission and Distribution  Supervisory Control and Data Acquisition - Automatic Meter Reading (SCADA-AMR)  Convention and Visitor’s Bureau 47 Budgeted Revenues 2011/12 09/10 Actual 10/11 Amended Budget 10/11 Projected Actual 11/12 Proposed Budget 12/13 Estimated Budget Property Taxes 14,644,406 14,698,732 14,823,841 16,006,682 16,606,682 Sales Taxes 9,791,842 9,470,000 10,200,700 10,315,000 10,394,000 Bond Proceeds 18,065,000 21,980,500 21,650,000 6,170,000 26,544,000 Charges for Services 14,426,388 16,001,670 15,945,432 15,977,787 16,277,034 Capital Recovery Fees 1,028,109 1,130,332 1,063,899 1,099,499 1,199,899 Service Improvement Fees 693,689 791,750 487,250 470,000 470,000 Utility Revenue 86,445,352 92,146,806 85,144,206 91,670,192 95,111,239 Grants 2,947,241 472,179 3,334,330 485,373 0 Interest 354,222 380,750 309,120 288,750 287,750 Other Revenue 17,298,332 16,429,838 17,866,907 19,059,484 18,660,399 Interfund Transfers 7,888,444 8,418,505 7,732,048 8,574,501 8,229,287 TOTAL REVENUE 173,583,025 181,921,062 178,557,733 170,117,268 193,780,290 *Fund balance increase or (use)(10,692,768)27,220,995 25,868,494 8,153,985 (42,425) TOTAL BUDGET 162,890,257 209,142,057 204,426,227 178,271,253 193,737,865 48 Budgeted Expenses by Division 2011/12 09/10 Actual 10/11 Amended Budget 10/11 Projected Actual 11/12 Proposed Budget 12/13 Estimated Budget Community Development 2,360,399 2,226,353 2,220,909 2,051,045 2,072,667 Community Services 7,519,289 8,237,935 8,329,207 8,410,001 7,914,359 Finance & Administration 7,920,222 13,130,169 12,883,616 13,075,589 12,393,038 Fire Services 6,939,388 7,770,389 7,663,258 8,213,955 8,295,471 Georgetown Utility Systems (GUS)30,598,093 36,208,040 35,737,078 37,505,728 37,349,233 Purchased Power (GUS)35,340,218 37,448,760 35,018,526 39,149,279 43,244,954 Management Services 8,689,317 7,575,200 7,174,616 6,759,353 6,700,788 Police Services 9,484,821 10,261,988 9,890,256 10,342,898 10,332,405 Transportation 9,413,173 6,864,702 9,269,319 8,103,238 8,149,410 Capital Improvements 21,681,947 54,134,355 52,810,179 19,114,000 31,363,000 Debt Payments 14,684,889 16,865,661 15,697,863 16,971,666 17,693,253 Interfund Charges & Transfers 8,258,501 8,425,955 7,732,048 8,574,501 8,229,287 TOTAL BUDGET 162,890,257 209,149,507 204,426,875 178,271,253 193,737,865 49 Amended Adopted 2010/11 Budget %2011/12 Budget % Community Development 1,972,195 1.1%1,829,255 1.2% Community Services 6,527,312 3.5%6,638,589 4.3% Fire Services 7,191,974 3.9%7,548,364 4.9% Management Svc-Others 1,198,948 0.6%1,326,172 0.9% Administration 17,488,832 9.5%16,869,484 11.0% Airport 2,450,450 1.3%3,248,714 2.1% Economic Development 399,278 0.2%396,672 0.3% Police Services 9,965,430 5.4%9,907,224 6.4% Electric 45,387,530 24.5%48,631,932 31.6% Sanitation 4,245,087 2.3%4,427,364 2.9% Stormwater Drainage 461,432 0.2%470,639 0.3% Water Services 13,765,398 7.4%13,249,878 8.6% Transportation 2,880,888 1.6%3,257,637 2.1% Capital Improvements 54,134,355 29.3%19,114,000 12.4% Debt Payments 16,865,661 9.1%16,971,666 11.0% Budget Total By Program 184,934,770 100.0%153,887,590 100.0% Interfund Transfers & Premiums 24,207,287 24,383,663 TOTAL OPERATING BUDGET 209,142,057 178,271,253 Budgeted Expenses by Program 2011/12 50 Property Tax Revenue Taxable Property Values 51 Fiscal Year 06/07 07/08 08/09 09/10 10/11*11/12*12/13*13/14*14/15*15/16* Property Tax Revenues: (in thousands) General Fund 6,596 7,542 8,103 8,422 8,492 9,220 9,320 9,939 10,242 10,557 Debt Service 4,368 5,288 6,329 5,766 5,567 6,575 7,075 7,864 8,051 8,468 Property Values: (in millions) Existing Property 2,793 3,275 3,895 4,014 4,023 4,283 4,436 4,580 4,749 4,930 New & Annexed 267 336 275 156 104 93 110 100 100 100 Property Tax Rates Per $100 - taxable 0.3673 0.3566 0.3562 0.3562 0.3562 0.3875 0.3921 0.4108 0.4034 0.4017 valuation *Projected Taxes: Taxes are levied on January 1 of each year and are considered past due on February 1 of the following year. The Williamson Central Appraisal District determines the value for each property in the city. Property tax roles are certified in July and the tax rate is adopted in September, along with the budget. The City’s tax collector, currently the Williamson County Tax Collector, sends statements in October to each taxpayer. The City’s tax collection rate for 2011/12 was 99.2%. Taxable Valuations:  Over the past 5 years, new residential construction permits have ranged from 750 to 1,500. In 2011, 509 permits, valued at over $127 million were issued. The general slowdown in the local economy, which impacted the current year, is also taken into consideration for future projections.  Values on existing property where nearly flat compared to prior year. The average home value is $184,959, which increased slightly at 1.18% compared to the prior year. Overall, total assessed valuation approximately the same as the previous year due to $93 million of new or annexed property added to the roll.  2011/12 new values include $93 million in new construction and annexed property Adopted Property Tax Rate for 2011/12 is $0.3875/$100 valuation:  Represents a 5% increase over the effective rate of $0.36901/$100 valuation, which includes an adjustment for sales tax dedicated to property tax relief.  The City adopted a 1/8 cent sales tax rate for property tax relief in May 2005, with the primary intent to offset debt service related to the November 2004 voter approved general obligation bonds. All authorized 2004 bonds have been issued with a total tax impact of $0.03731.  Breakdown: 11/12 10/11 M & O Maintenance and Operations (General Fund) $0.22290 $0.21987 I & S Debt Service (payment on existing debt) $0.16460 $0.13635 *Future Projections: Assumptions for the forecasts of future years are based upon historical trends, expected build out of planned subdivisions, and utility tap requests. Assumptions include:  Continued new and annexed property growth of $100 million in 2012/13, then $125 to $150 million in the out years as new retail properties are added to the tax role, a 1% increase in 2012/13 and then 1.25 – 1.5% in the later years.  Reflects impact of 1/8% sales tax for property tax relief.  Reflects an annual increase of 2.5 %– 5% in the properties that have their taxes frozen due to the over 65 provision, adopted by voter referendum in May 2004. 52 This page intentionally left blank. 53 Sales Tax Revenue – 1% General Operating The City receives 2% of the 8.25% sales and use taxes that are remitted by retailers within the City limits: 1.000% is used for general operating purposes 0.500% is used for transportation improvements through the Georgetown Transportation Enhancement Corporation (GTEC), the City’s 4B Economic Development Corporation, authorized in May 2001 0.125% is for Georgetown Economic Development Corporation (GEDCO), the City’s 4A Economic Development Corporation, approved in May 2005 0.125% is for property tax relief, approved in May 2005 0.250% is used for street maintenance; sunset revision approved November 2010, expires in March 2015 2.000% City portion 6.250% is collected and retained by the State of Texas 8.250% Total sales tax rate The City’s sales tax base is diverse, with revenues being generated by national retailers, building materials and utilities, etc. The heavy residential growth over the past few years has also created a demand for more restaurants and other retailers that have also expanded the City’s tax base. Sales tax has increased over the past few years due to an increase in new retail developments within the City. Future projections are based on the following assumptions:  2011/12 includes a 2.5 increase in overall sales tax projections from the prior year. Sales Tax revenue for FY11 is estimated to end at $7.8 million, right in line with original projections and about 6.8% higher than in FY10. The growth has mostly been attributed to large growth in the information sector of the local economy, as well as very moderate growth in other areas.  Long term projections assume modest growth based on population projections and lower unemployment rates, as well as a return to rising per capita disposable income locally in 2014. Otherwise, a general dormancy in economic conditions is assumed for the near term. 54 Electric Revenue Water Services Revenue – Water 55 Water Services Revenue - Wastewater Utility Revenues: The revenue shown includes tap or hookup fees. Developer contributions, such as capital recovery or impact fees and interest are presented elsewhere. Generally, utility revenue projections are based on five-year forecasting models for each utility. The City prepares a financial model of each utility, forecasting revenues, expected infrastructure needs and other expected expenses. The models are prepared based upon assumptions regarding customer growth, the City’s five and ten year capital improvements plans, forecasted increases in costs, including personnel, and historical data. The models serve as a planning tool to forecast the ability to pay cash for infrastructure, anticipate debt needs for the upcoming five to ten year period, as well as, predict rate increases for customers. Electric and Water Revenues:  Calculated on a five-year rolling average of per capita consumption in order to hedge against variations in weather conditions.  Growth estimates are based upon building permits, expected build out of subdivisions and other planning and development activity.  Assumes a 3% peak load growth for Electric through the next five years, as the City’s southern electric service area continues to develop.  Assumes a 1-2% customer growth for Water for the next five years.  The City will conduct an electric rate review during 2011/12 to ensure the various rates adequately cover the costs of the system components. The City continues to be proactive in planning for regional water needs. The City has signed additional agreements with Brazos River Authority to ensure future water needs are met. Major treatment and system expansions will be made as growth occurs and are included in the 5-year capital improvement schedule. Wastewater Revenues:  Assumes a 1-2% customer growth over the next five years. (historical average is 5-6%)  Flat rates allocate cost equitability between all system users, and thus eliminates any cross-class subsidies. 56 Capital Recovery Fee Revenue Fiscal Year 06/07 07/08 08/09 09/10 10/11*11/12*12/13*13/14*14/15*15/16* Service Improvement Fees: Water 2,200 1,155 899 338 265 381 457 457 304 76 Wastewater 564 757 986 203 254 254 304 304 203 51 Total (thousands)2,764 1,912 1,886 541 519 634 761 761 507 127 Impact Fees: Water 883 806 882 738 487 891 992 1,098 1,131 1,165 Wastewater 585 333 412 290 233 213 214 221 227 234 Total (thousands)1,468 1,139 1,294 1,028 720 1,104 1,207 1,319 1,359 1,400 Service Improvement Fees: These fees are collected from Del Webb and Escalera Ranch on a per unit basis to offset costs of infrastructure improvements to serve the developments. The fees, similar to impact fees, are collected for water and wastewater improvements as part of these development agreements. The large increase (over normal growth) in 2006/07 is due to a one-time payment to reimburse the City for stranded costs associated with the Escalera water line. Impact Fees: In 1996, the City adopted water and wastewater impact fees under Chapter 395 of the Texas Local Government Code. These revenues are used as partial funding for qualifying water and wastewater infrastructure projects for increased system capacity. The fees were updated in 2003 and again in 2005, through a study prepared by an Impact Fee Advisory Committee, to reflect changes in the City’s five and ten year Capital Improvements Plans, the Future Land Use Plan, and updated construction costs. The fee is $5,204 per unit for water and wastewater. These fees were reviewed in 2010 but no charges are expected through 2012. *Projected 57 Other Enterprise Fund Revenues Fiscal Year (in thousands)06/07 07/08 08/09 09/10 10/11*11/12*12/13*13/14*14/15*15/16* Stormwater Drainage 1,773 1,816 1,883 1,945 1,956 2,332 2,484 2,520 2,557 2,594 Airport 2,458 3,293 2,221 2,422 2,660 3,660 3,660 3,660 3,756 3,856 Airport Revenue: Airport revenue consists primarily of fuel sales, T-hangar rentals and tie-down fees. The increase in 2007/08 was due to the higher cost of fuel for that time frame compared to other years. The Airport continues to be self-supporting and is projected to be able to sustain operations at the current level of service into the foreseeable future. Stormwater Drainage Revenue: Revenue for stormwater drainage is collected on a per unit basis to pay for maintenance of drainage, detention and filtration infrastructure and to pay for the debt service on bonds issued for major capital drainage improvements. The rate of $4.25 per unit also provides $300,000 annually for capital maintenance to correct drainage problems in the City. A rate analysis was conducted in 2011 to evaluate the current commercial and residential calculations for impervious cover, which had not been reviewed since the fee was established in 1995. As of budget adoption, a $0.50 per residential billing unit increase is expected to be presented to Council for adoption in early 2012 and implemented in March 2012. The stormwater drainage fee has not been adjusted since November 2004. The cost of maintenance of detention ponds continues to increase, and other environmental mandates are expected to be forthcoming, which may impact rates. 58 This page intentionally left blank. 59 Miscellaneous Revenues Interest Income: Interest income continues to decrease due to the existing economic conditions that have resulted in lower yields for all investments. Projections are based on anticipated cash balances from contingency reserves, bond proceeds invested through the life of construction projects and fund balances, as well as, continued existing market conditions. Grant Revenue: The City receives grants for a variety of purposes. Council approves all grant applications prior to submission. The City budgets for grants that have been approved and awarded by the granting agency. The City received a grant in 2009/10 from U.S. Department of Homeland Security to fund nine additional firefighters. Miscellaneous Revenue: Revenues not falling into another category are classified as miscellaneous revenue. This source of funding is expected to rise due to fee increases, including building permits, fines, parks fees, recreation charges and other user fees, as well as, revenue for services from the Williamson County Emergency Service District (ESD) #8 which began in 2006/07. Surplus property sales and donations are also included in this category. Franchise Fee Revenue: The City receives revenue from franchise fees. These fees are paid to the City’s General Fund by both City and outside utilities for use of right of ways and public properties and are collected to offset the cost of street maintenance. The City elected to change the City franchise fee rate to 3% from 2% in 2010/11. This change was made due to anticipated legislation impacting deregulation of the electric industry. Environmental Services Revenue: Environmental Services revenue includes fees collected for curbside garbage pick-up, including recycling and special pick-ups. In 2009, the Sanitation rates were increased by $0.30 for inside the City residential customers and $0.45 for outside the City customers and an average of 3.7% increase for non-residential accounts to reflect increased cost of service. The City will begin the process to bid and negotiate the contract for solid waste and recycling services in 2011/12. Final selection and implementation of the new contract is set for July 2012. Fiscal Year (in thousands)06/07 07/08 08/09 09/10 10/11*11/12*12/13* Interest Income 2,982 2,408 1,369 354 309 289 288 Grant Revenue 1,024 157 1,880 2,942 3,334 458 - Miscellaneous Revenue 10,184 9,708 8,452 9,524 8,507 8,127 8,743 Franchise Fees 2,083 2,740 2,802 2,603 3,637 3,758 3,877 Environmental Svcs 3,689 4,320 4,583 4,809 4,866 4,937 4,964 60 General General Special Capital Debt Total General Revenue Projects Service Budget Fund Funds Funds Fund Beginning Fund Balances /34,040,245 7,829,950 2,453,325 1,401,057 1,807,060 Working Capital SOURCES & REVENUES: Property taxes 16,006,682 9,298,000 113,682 6,595,000 Sales taxes 10,315,000 8,375,000 1,940,000 Bond Proceeds 6,170,000 3,970,000 Charges for Services 15,977,787 1,174,767 Capital Recovery Fees 1,099,499 Special Improvement Fees 350,000 Utility Revenues 91,670,192 4,937,000 Grants 485,373 485,373 Interest 288,750 40,000 30,650 10,000 20,000 Other Revenue 19,179,484 9,233,419 1,000,720 846,000 1,740,058 Interfund Transfers - ROI, Etc.8,574,501 6,294,205 30,168 Total Revenues 170,117,268 39,352,391 3,600,593 4,826,000 8,355,058 USES & EXPENSES: Georgetown Utility Systems 37,505,728 4,431,608 488,360 Purchased Power 39,149,279 Transportation 8,103,238 3,484,079 Community Development 2,051,045 2,051,045 Finance & Administration 13,075,589 526,256 123,103 Fire Services 8,213,955 7,569,156 644,799 Management Services 6,759,353 4,161,243 212,363 Community Services 8,410,001 7,247,680 1,162,321 Police Services 10,342,898 10,207,265 135,633 Capital Improvements 19,114,000 1,582,000 4,417,000 Debt Payments 16,718,566 8,933,641 (2) Debt Service - New 80,000 Debt Issuance Costs 173,100 150,000 Interfund Transfers 8,574,501 19,718 77,012 1,544,000 Total Uses & Expenses 178,271,253 39,698,050 4,425,591 6,111,000 8,933,641 Ending Fund Balance / 25,886,260 7,484,291 1,628,327 116,057 1,228,477 Working Capital RESERVATIONS: Contingency 15,341,000 7,000,000 75,000 Capital Projects/Other 9,737,625 1,553,327 67,200 1,228,477 Available Fund Balance/807,635 484,291 0 48,857 0 Working Capital GOVERNMENTAL FUND TYPES All Funds Summary (By Fund / By Division) (1) Includes Airport & Stormwater Drainage (2) Includes debt service payments on behalf of GTEC offset by transfer from GTEC (3) Includes debt service payments on behalf of GEDCO offset by transfer from GEDCO 61 All Funds Summary (By Fund / By Division) Other Internal Electric Water Enterprise Service Fund Fund Funds (1)Funds Beginning Fund Balances /10,626,623 7,441,746 971,552 1,508,932 Working Capital SOURCES & REVENUES: Property taxes Sales taxes Bond Proceeds 2,200,000 Charges for Services 14,803,020 Capital Recovery Fees 1,099,499 Special Improvement Fees 350,000 Utility Revenues 61,527,544 22,873,227 2,332,421 Grants Interest 35,000 104,100 12,000 37,000 Other Revenue 1,813,584 761,323 3,736,880 47,500 Interfund Transfers - ROI, Etc.69,108 2,181,020 Total Revenues 63,376,128 27,457,257 6,081,301 17,068,540 USES & EXPENSES: Georgetown Utility Systems 13,610,003 16,492,964 2,482,793 Purchased Power 39,149,279 Transportation 4,619,159 Community Development Finance & Administration 12,426,230 Fire Services Management Services 2,385,747 Community Services Police Services Capital Improvements 5,145,000 7,214,000 756,000 Debt Payments 3,117,398 4,107,833 (3)559,694 Debt Service - New 80,000 Debt Issuance Costs 1,800 19,800 1,500 Interfund Transfers 4,413,349 2,309,841 210,581 Total Uses & Expenses 65,436,829 30,224,438 6,146,934 17,294,770 Ending Fund Balance / 8,565,922 4,674,565 905,919 1,282,702 Working Capital RESERVATIONS: Contingency 3,400,000 4,566,000 300,000 Capital Projects/Other 5,000,000 605,919 1,282,702 Available Fund Balance/165,922 108,565 0 0 Working Capital ENTERPRISE FUNDS PROPRIETARY FUND TYPES 62 All Funds Summary (By Fund / By Personnel-Operating-Capital) (1) Includes Airport & Stormwater Drainage (2) Includes debt service payments on behalf of GTEC offset by transfer from GTEC (3) Includes debt service payments on behalf of GEDCO offset by transfer from GEDCO General General Special Capital Debt Total General Revenue Projects Service Budget Fund Funds Funds Fund Beginning Fund Balances /34,040,245 7,829,950 2,453,325 1,401,057 1,807,060 Working Capital SOURCES & REVENUES: Property taxes 16,006,682 9,298,000 113,682 6,595,000 Sales taxes 10,315,000 8,375,000 1,940,000 Bond Proceeds 6,170,000 3,970,000 Charges for Services 15,977,787 1,174,767 Capital Recovery Fees 1,099,499 Special Improvement Fees 350,000 Utility Revenues 91,696,192 4,963,000 Grants 485,373 485,373 Interest 288,750 40,000 30,650 10,000 20,000 Other Revenue 19,179,484 9,233,419 1,000,720 846,000 1,740,058 (2) Interfund Transfers - ROI, Etc.8,574,501 6,294,205 30,168 Total Revenues 170,143,268 39,378,391 3,600,593 4,826,000 8,355,058 USES & EXPENSES: Personnel 37,871,106 22,846,743 730,343 Operating 88,583,557 15,396,589 1,260,933 Capital 7,156,423 1,435,000 775,303 Capital Improvements 19,114,000 1,582,000 4,417,000 Debt Payments 16,798,566 8,933,641 (2) Debt Issuance Costs 173,100 150,000 Interfund Transfers 8,574,501 19,718 77,012 1,544,000 Total Uses & Expenses 178,271,253 39,698,050 4,425,591 6,111,000 8,933,641 Ending Fund Balance / 25,912,260 7,510,291 1,628,327 116,057 1,228,477 Working Capital RESERVATIONS: Contingency 15,441,000 7,100,000 75,000 Capital Projects/Other 9,700,302 1,552,494 67,200 1,228,477 Available Fund Balance/770,958 410,291 833 48,857 0 Working Capital GOVERNMENTAL FUND TYPES 63 All Funds Summary (By Fund / By Personnel-Operating-Capital) Other Internal Electric Water Enterprise Service Fund Fund Funds (1)Funds Beginning Fund Balances /10,626,623 7,441,746 971,552 1,508,932 Working Capital SOURCES & REVENUES: Property taxes Sales taxes Bond Proceeds 2,200,000 Charges for Services 14,803,020 Capital Recovery Fees 1,099,499 Special Improvement Fees 350,000 Utility Revenues 61,527,544 22,873,227 2,332,421 Grants Interest 35,000 104,100 12,000 37,000 Other Revenue 1,813,584 761,323 3,736,880 47,500 Interfund Transfers - ROI, Etc.69,108 2,181,020 Total Revenues 63,376,128 27,457,257 6,081,301 17,068,540 USES & EXPENSES: Personnel 4,126,662 2,151,456 519,839 7,496,063 Operating 47,391,620 14,091,508 4,089,320 6,353,587 Capital 1,241,000 250,000 10,000 3,445,120 Capital Improvements 5,145,000 7,214,000 756,000 Debt Payments 3,117,398 4,187,833 (3)559,694 Debt Issuance Costs 1,800 19,800 1,500 Interfund Transfers 4,413,349 2,309,841 210,581 Total Uses & Expenses 65,436,829 30,224,438 6,146,934 17,294,770 Ending Fund Balance / 8,565,922 4,674,565 905,919 1,282,702 Working Capital RESERVATIONS: Contingency 3,400,000 4,566,000 300,000 Capital Projects/Other 5,000,000 574,208 1,277,923 Available Fund Balance/165,922 108,565 31,711 4,779 Working Capital ENTERPRISE FUNDS PROPRIETARY FUND TYPES 64 General Fund Fund Description: The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in another fund. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 9,549,550 8,320,423 8,604,398 7,829,950 7,484,291 REVENUES: Property Taxes 8,636,360 8,957,957 9,128,000 9,220,000 9,320,000 Sales Tax 7,928,140 7,655,000 8,297,000 8,375,000 8,444,000 Sanitation Revenue 4,809,271 4,814,034 4,866,250 4,937,000 4,964,000 Interest 61,092 60,000 45,000 40,000 40,000 Administrative Charges 1,063,045 1,132,639 1,142,110 1,174,767 1,167,719 All Other Revenue 8,324,985 9,125,706 8,960,355 9,311,419 9,698,092 Return on Investment 6,177,601 6,242,401 5,629,749 5,808,393 6,039,507 Transfers In 179,306 160,812 140,812 485,812 485,812 Total Revenues 37,179,800 38,148,549 38,209,276 39,352,391 40,159,130 EXPENSES: Community Development 2,105,294 2,226,353 2,220,909 2,051,045 2,072,667 Community Services 6,862,441 7,241,914 7,333,942 7,247,680 7,311,841 Finance & Administration 505,492 571,480 565,337 526,256 542,382 Fire Department 6,702,351 7,128,769 7,031,445 7,569,156 8,237,971 Georgetown Utility Systems 4,259,300 4,256,405 4,353,868 4,431,608 4,434,103 Management Services 1,868,430 2,454,747 2,351,299 1,786,105 1,781,051 Police Department 9,329,934 10,154,282 9,711,252 10,207,265 10,303,505 Transportation 2,905,769 3,087,575 2,911,046 3,484,079 3,504,919 Administrative Expense 2,243,580 2,414,447 2,418,882 2,375,138 2,441,174 Transfers Out 1,342,361 78,549 85,744 19,718 25,860 Total Expenses 38,124,952 39,614,521 38,983,724 39,698,050 40,655,473 Ending Fund Balance 8,604,398 6,854,451 7,829,950 7,484,291 6,987,948 RESERVATIONS: Contingency 6,740,000 6,847,000 6,847,000 7,000,000 7,235,000 Available Fund Balance 1,864,398 7,451 982,950 484,291 (247,052) 65 Fiscal Year 2011/12 Revenues Significant Issues/Comments:  The General Fund is within Fiscal & Budgetary compliance by having an operating budget balanced with sustainable funding sources.  Funds for street capital maintenance total $1,250,000 of new funding, and represents 3% of the General Fund on- going operating budget.  The Environmental Services department is funded through garbage rates. A portion of these rates are passed through for contracted services with Texas Disposal Services.  There are currently 16 frozen positions that are not funded in the General Fund for 2011/12. The Council did approve the funding of 3 positions in Fire Services to address staffing needs of the new Fire Station 5.  Funds are included for Public Safety step increases, equipment and capital maintenance for Parks and operational increases in Police and Fire.  Contingency Reserves were increased to comply with the City’s Fiscal and Budgetary Policy that requires the City to reserve 90 days of operating expenses to offset any potential revenue shortfall or other unexpected event.  Current projections show that City will face a deficit in the 2012/13 fiscal year due to increasing needs in the General Fund such as the opening of Fire Station No. 5 and the continued slow growth in the local and national economy. Staff and Council actively addressed this need as part of the 2011/12 budget workshops. As result of those efforts, that potential deficit has been reduced from approximately $1 million to the current $247,052 projection. The review and prioritization process will continue in 2011/12 to eliminate the potential deficit in the subsequent year. Expenditures 66 Electric Fund Fund Description: The Electric Fund is used to account for the revenues from all operating and maintenance activities of the utility and the expenses of the departments, which support those activities. This includes the Electric department, the Automated Meter Reading (AMR) Department, purchased power costs, debt payments and capital projects. The fund also makes transfers out to the General Fund for the City’s return on investment for the Electric utility. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 8,822,616 14,603,573 15,223,575 10,626,623 8,565,922 REVENUES: Electric Services 59,058,745 62,990,014 55,236,673 61,527,544 63,271,406 Bond Proceeds 3,067,000 2,900,000 Interest 56,184 50,000 58,163 35,000 35,000 All Other Revenue 2,371,959 1,513,584 2,305,793 1,813,584 1,813,584 Transfers In 89,361 Total Revenues 64,643,249 64,553,598 57,600,629 63,376,128 68,019,990 EXPENSES: Georgetown Utility Systems 9,744,870 12,394,348 8,850,422 12,439,003 11,995,266 Operating Capital Improvements 2,978,481 1,171,000 1,131,000 Purchased Power 35,340,218 37,448,760 35,018,526 39,149,279 43,244,954 Capital Projects 6,110,371 8,194,000 8,107,250 5,145,000 3,950,000 Debt Payments 2,786,727 3,108,796 3,108,796 3,117,398 2,996,462 Debt Payments - New Debt 380,000 Debt Issuance Costs 23,606 1,800 1,800 1,800 16,800 Transfers Out 4,453,752 4,788,502 4,132,306 4,413,349 4,182,792 Total Expenses 58,459,544 65,936,206 62,197,581 65,436,829 67,897,274 Ending Working Capital 15,006,321 13,220,965 10,626,623 8,565,922 8,688,638 RESERVATIONS: Contingency 2,625,000 3,262,000 3,262,000 3,400,000 3,400,000 Other 217,254 5,000,000 5,000,000 5,000,000 5,000,000 Available Working Capital 12,598,575 4,958,965 2,364,623 165,922 288,638 67 Fiscal Year 2011/12 Revenues Significant Issues/Comments:  Purchased power costs fluctuate with the variances in the fuel surcharge implemented by the Lower Colorado River Authority, the City’s wholesale supplier. This surcharge is passed along to the City’s customers as a pass-through charge. Power costs have increased significantly over prior years due to the increased cost of natural gas.  The Electric and Water Services funds share the maintenance of the City’s automated meter reading system. A new vendor was selected in 2009/10 and the implementation began in 2010/11 and will continue in 2011/12. Funds have been included to upgrade the Customer Information System to compliment the automated meter reading system.  Capital projects are funded through operating revenues and debt when necessary. In 2012, $5.1 million of operating revenues fund the annual capital projects plan.  Transfers out include the 7% return on investment to the General Fund. The fund also includes a 3% franchise fee payment to the General fund, which constitutes a payment for the continuing use of public property and right of ways.  A rate stabilization reserve has been established to mitigate future rate fluctuations. Expenditures 68 Water Services Fund Fund Description: The Water Services Fund is used to account for the revenues from all operating and maintenance activities for water, wastewater and irrigation utilities. Expenses also include debt payments, capital costs and the transfers out to the General Fund for the City’s return on investment. Each utility service type is tracked separately for rate design purposes to ensure rates are charged to fully recover operational costs. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 17,064,782 22,662,602 21,907,677 7,441,746 4,674,565 REVENUES: Water Services 12,523,363 14,028,136 14,724,000 14,401,320 15,529,705 Wastewater Services 7,753,305 7,919,250 7,969,811 8,050,729 8,419,938 Irrigation Services 355,936 400,865 391,571 421,178 442,237 Bond Proceeds 10,120,000 2,200,000 4,500,000 Impact Fees 1,028,109 1,130,332 1,063,899 1,099,499 1,199,899 Service Improvement Fees 550,529 634,250 350,000 350,000 350,000 Interest 118,025 104,100 79,100 104,100 104,100 All Other Revenue 1,253,569 717,390 748,033 656,923 656,923 Transfer In 170,500 170,508 170,508 173,508 171,308 Total Revenues 33,873,336 25,104,831 25,496,922 27,457,257 31,374,110 EXPENSES: Georgetown Utility Systems 14,610,474 17,061,453 17,021,402 16,492,964 16,937,894 Capital Projects 8,946,454 18,216,000 17,083,000 7,214,000 7,872,000 Debt Payments 3,705,825 4,115,540 4,115,540 4,107,833 3,912,166 Debt Payments - New Debt 80,000 400,000 Bond Issue Costs 118,940 4,800 4,800 19,800 29,800 Transfers Out 2,051,844 1,711,795 1,738,111 2,309,841 2,175,616 Total Expenses 29,433,537 41,109,588 39,962,853 30,224,438 31,327,476 Ending Working Capital 21,504,581 6,657,845 7,441,746 4,674,565 4,721,199 CAFR Adjustment 403,096 RESERVATIONS: Contingency 4,110,000 4,266,000 4,266,000 4,566,000 4,566,000 SIP Reservation/Stranded Fees 3,695,031 Available Working Capital 14,102,646 2,391,845 3,175,746 108,565 155,199 69 Fiscal Year 2011/12 Revenues Significant Issues/Comments:  The City’s water supply is provided through agreements with the Brazos River Authority (BRA). BRA expenses increased 15% over the prior year, due to an increase in raw water cost, as well as, principal and interest payments and operational cost for the Williamson County Raw Water Line. Future raw water increases are projected at 15% per year.  Capital projects are funded through operating revenues, impact fees and debt when necessary. In 2011/12, $7.2 million will be spent in capital improvements, including the projects related to the 2006 Annexations and areas identified by prior year testing related to the Edwards Aquifer Recharge Zone (EARZ).  The City will test 20% of the collection system each year by testing wastewater lines for inflow and infiltrations as required by the Texas Commission on Environmental Quality (TCEQ) for environmental safety for the Edwards Aquifer. Because 98% of the city is located over the Aquifer, testing and repair costs are a major component of the wastewater capital improvement program. The City budgets repairs for all problems found in the next budget cycle. Expenditures 70 Airport Fund Fund Description: The Airport fund is used to account for revenues and expenses related to the operation and maintenance of the Georgetown Municipal Airport. Capital improvements for the Airport and debt payments on outstanding debt for the Airport fund are also accounted for here. Significant Issues/Comments:  Excess funds are reserved for future capital maintenance, grant match or other airport related assets. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 872,384 562,425 457,755 379,145 375,705 REVENUES: Fuel & Terminal Sales 1,896,283 2,104,180 2,104,180 3,104,180 3,104,180 Leases & Rents 526,141 556,100 556,100 556,100 556,100 Interest 5,085 16,000 4,000 4,000 3,000 Grant 4,642 6,175 All Other Revenue 63,909 61,600 91,907 57,600 57,600 Transfers In 3,300 Total Revenues 2,499,360 2,737,880 2,762,362 3,721,880 3,720,880 EXPENSES: Management Services 2,690,026 2,589,964 2,675,910 Transportation 3,416,642 3,410,703 Capital Projects 100,000 20,000 Debt Payments 165,069 165,062 165,062 162,738 162,998 Transfers Out 59,500 45,940 Total Expenses 2,914,595 2,755,026 2,840,972 3,725,320 3,593,701 Ending Working Capital 457,149 545,279 379,145 375,705 502,884 CAFR Adjustment 606 RESERVATIONS: Contingency 150,000 150,000 150,000 150,000 150,000 Future Capital Improvements 307,755 171,979 229,145 225,705 352,884 Available Working Capital 0 223,300 0 0 0 71 Stormwater Drainage Fund Fund Description: The Stormwater Fund is used to account for all operating and maintenance activities of the City’s drainage system and the debt payments for bonds issued in past years to improve drainage problems. Significant Issues/Comments:  City engineers began the Regional Stormwater Drainage Master Plan (RSMP), which outlines future capital improvements that are needed to improve drainage in the City.  Operating costs continue to increase due to the increase in the number of detention ponds within the city.  A rate analysis was concluded in 2011 to evaluate calculations for impervious cover and future environmental mandates. A rate increase of $0.50 per residential billing unit will be proposed for March 2012. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 1,714,422 2,399,804 2,551,773 592,407 530,214 REVENUES: Stormwater Fees 1,944,732 1,994,507 1,955,901 2,332,421 2,483,953 Bond Proceeds 1,020,649 Interest 11,654 10,000 8,000 8,000 8,000 All Other Revenue 14,275 20,000 19,000 19,000 19,000 Total Revenues 2,991,310 2,024,507 1,982,901 2,359,421 2,510,953 EXPENSES: Transportation 1,069,895 1,187,163 1,126,919 1,202,517 1,233,788 Capital Projects 577,161 2,242,000 2,242,000 656,000 750,000 Debt Payments 355,258 433,605 433,605 396,956 396,216 Bond Issue Costs 11,253 1,500 1,500 1,500 1,500 Transfers Out 156,721 141,015 138,243 164,641 175,207 Total Expenses 2,170,288 4,005,283 3,942,267 2,421,614 2,556,711 Ending Working Capital 2,535,444 419,028 592,407 530,214 484,456 CAFR Adjustment 16,329 RESERVATIONS: Contingency 150,000 150,000 150,000 150,000 150,000 Available Working Capital 2,401,773 269,028 442,407 380,214 334,456 72 General Capital Projects Fund Fund Description: Capital projects funds are used to account for the acquisition and construction of major capital facilities and equipment other than those financed by Special Revenue (grants) and Enterprise Funds (i.e. utilities and airport). Facilities Capital Projects Fund:  Includes funding for the construction of Fire Station #5 and #2, fire training facility and capital replacement of public safety vehicles. Parks Capital Projects Fund:  Includes projects that were approved in the November 2008 bond authorization. Voters approved $35.5 million of parks and recreation bonds. The expansion and grant match for the City’s trails system will funded through bonds previously issued in 2011. Streets Capital Projects Fund:  Includes projects that were approved in the November 2008 bond authorization. Voters approved $46 million of street and road bonds. The City will continue work on previously funded project that includes Southeast Arterial 1, Southwest Bypass and Williams Drive widening. 10/11 11/12 12/13 09/10 10/11 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 3,163,653 1,951,576 2,595,665 1,401,057 116,057 REVENUES: Service Improvement Fees 6,450 7,250 Bond Proceeds 3,857,351 21,980,500 21,650,000 3,970,000 19,144,000 Interest 18,366 10,000 26,800 10,000 10,000 All Other Revenue 330,390 382,271 846,000 Transfers In 775,800 Total Revenues 4,988,357 21,990,500 22,066,321 4,826,000 19,154,000 EXPENSES: New Equipment 3,855 90,000 Streets CIP 2,408,196 12,352,355 11,847,929 1,200,000 750,000 General CIP 3,509,489 8,555,000 8,955,000 2,927,000 16,500,000 Community Service CIP 1,000,000 1,000,000 200,000 Debt Issuance Cost 50,482 460,500 180,000 150,000 300,000 Transfers Out 104,411 1,346,000 1,278,000 1,544,000 1,594,000 Total Expenses 6,076,433 23,713,855 23,260,929 6,111,000 19,144,000 Ending Working Capital 2,075,577 228,221 1,401,057 116,057 126,057 CAFR Adjustment 520,088 RESERVATIONS: SIP Reservation 67,200 67,200 67,200 67,200 67,200 Available Working Capital 2,528,465 161,021 1,333,857 48,857 58,857 73 Special Revenue Funds – Summary 2011/12 Fund Description: Special revenue funds (SRF’s) are used to account for specific revenues that are legally restricted for expenditures for particular purposes. The City uses these funds to track revenues and expenditures for: • Grants • Donations • Hotel Occupancy Tax (HOT) • Police seizures • Parkland dedication fees • Street Maintenance Sales Tax • Tax Incremental Reinvestment Zones Significant Issues/Comments:  These funds vary significantly with the level of donation and grant activity for each year.  The ¼ cent Street Maintenance Sales Tax was originally approved by voters in November 2002. Funds may only be spent on existing city streets. The tax was reauthorized by voters in November 2006 and 2010. This authorization will sunset in March 2015. Projects for 2011/12 are included in the Capital Improvement Project section of this document. BEGINNING ENDING FUND FUND FUND DIVISION BALANCE REVENUES EXPENDITURES BALANCE Cemetery Fund Community Services 32,080 55,600 87,680 0 Library Donations Community Services 12,727 130,400 143,127 0 Parks Restricted Community Services 424,635 71,200 495,835 0 Tourism Fund Community Services 382,087 414,370 437,251 359,206 Courts Fund Finance & Administration 54,135 108,968 163,103 0 Downtown TIF Fund Finance & Administration 354,111 98,000 212,363 239,748 Rivery TIRZ Finance & Administration 37,169 11,616 0 48,785 Gateway TIRZ Finance & Administration 6,918 5,066 0 11,984 Fire Fund Fire Services 171,926 472,873 644,799 0 Conservation Fund GUS 248,360 240,000 488,360 0 Main Street Facade Fund Management Services 19,840 15,600 35,440 0 Animal Services Fund Police Services 46,705 25,400 72,105 0 Police Restricted Police Services 174,335 3,500 63,528 114,307 Street Tax Transportation 488,297 1,948,000 1,582,000 854,297 Total Special Revenue Funds 2,453,325 3,600,593 4,425,591 1,628,327 74 Internal Service Funds – Summary 2011/12 Fund Description: Internal Service Funds are used to account for operations of the City that provide services to other departments within the City, and are allocated to using department based on specific criteria which is reviewed annually. Facilities Maintenance Fund:  Provides janitorial services, light maintenance, equipment repair and replacement (copiers, HVAC, etc.), landscape maintenance, building repair and replacement (roofs, painting, carpet) on an established schedule. Charges for services to each department are made based on predetermined lease fees. Fleet Management Fund:  Provides vehicles, vehicle equipment and communications equipment to all using City departments, as well as maintenance of all vehicles. Charges for services are based on annualized replacement and maintenance costs of each vehicle. Information Services Fund:  Provides computer hardware, software, training, staff support to all using City departments and Geographic Information Systems (GIS) analysis. Charges are based on hardware and software replacements for each department. Joint Services Fund:  Composed of departments providing administrative support to City funds and departments. GUS Administration, Systems Engineering and Utility Office provide support to the City’s utility funds. Administrative departments, including Accounting, Finance Administration, Human Resources and Safety, and Purchasing provide support to all City funds and departments. The City’s Economic Development department is included, which is funded by the General Fund and the City’s Electric and Water Service funds. FACILITIES FLEET INFORMATION JOINT INTERNAL MAINTENANCE MANAGEMENT SERVICES SERVICES SERVICES FUND FUND FUND FUND FUND TOTAL Beginning Working Capital 32,528 1,173,997 59,039 243,368 1,508,932 REVENUES: Charges for Services 1,914,262 1,676,152 2,299,858 8,912,748 14,803,020 Interest & Other 8,000 19,000 13,000 24,500 64,500 Sale of Property 20,000 20,000 Interfund Transfers 298,500 1,540,500 342,020 2,181,020 Total Revenues 2,220,762 3,255,652 2,654,878 8,937,248 17,068,540 EXPENSES: Georgetown Utility Systems 2,482,793 2,482,793 Finance & Administration 2,018,947 3,630,527 2,657,227 4,119,529 12,426,230 Management Services 2,385,747 2,385,747 Total Expenses 2,018,947 3,630,527 2,657,227 8,988,069 17,294,770 Ending Working Capital 234,343 799,122 56,690 192,547 1,282,702 CIP/Other 234,343 799,122 56,690 192,547 1,282,702 Available Working Capital 0 0 0 0 0