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HomeMy WebLinkAbout04-Financial SummaryFinancial Summary Financial Summary Table of Contents Summary Budgeted Revenues.................................................................................................................17 Program Budget.......................................................................................................................18 Divisional Budget .....................................................................................................................19 Revenues Property Taxes.........................................................................................................................20 Sales Tax.................................................................................................................................22 Utility Revenues.......................................................................................................................24 Capital Recovery Fees.............................................................................................................26 Other Enterprise Fund Revenues ............................................................................................27 Other Miscellaneous Revenues...............................................................................................28 Fund Summaries All Funds Summary..................................................................................................................30 General Fund...........................................................................................................................32 Electric Fund............................................................................................................................34 Wastewater Fund.....................................................................................................................36 Water Fund ..............................................................................................................................38 Airport Fund .............................................................................................................................40 Sanitation Fund........................................................................................................................41 Stormwater Drainage Fund......................................................................................................42 Irrigation Fund..........................................................................................................................43 General Capital Projects Funds...............................................................................................44 Special Revenue Funds...........................................................................................................45 Internal Service Funds.............................................................................................................46 00/01 Actual 01/02 Amended Budget 01/02 Projected Actual 02/03 Proposed Budget 03/04 Projected Budget Property Taxes 5,165,637 5,937,698 5,937,698 6,587,398 7,092,398 Sales Taxes 3,526,862 3,640,000 3,375,000 3,385,000 4,025,000 Bond Proceeds 7,369,999 1,500,000 9,240,000 6,135,000 Bond Reimbursement 6,583,432 (6,583,432) Charges for Services 7,481,443 7,844,035 7,803,677 8,684,221 9,014,342 Capital Recovery Fees 1,389,092 750,000 570,000 712,500 630,000 Utility Revenues 38,673,004 37,983,376 40,733,000 43,237,064 45,511,063 Grants 306,889 123,445 416,880 526,175 30,000 Other Revenue 8,539,078 9,742,838 10,285,086 9,012,802 8,984,402 Service Improvement Fees 1,405,899 1,555,435 1,200,895 1,235,895 1,235,895 Fund Balance Used 368,821 15,821,686 13,333,970 6,048,618 (121,576) Interest 1,902,547 1,171,276 1,101,211 1,122,537 1,040,674 Interfund Transfers 7,641,266 4,080,139 4,665,152 5,236,084 4,584,884 TOTAL REVENUES 83,770,537 90,149,928 96,006,001 88,444,862 88,162,082 Budgeted Revenues 2002-2003 Property Taxes Sales Taxes Bond Proceeds Charges for Services Capital Recovery Fees Utility Revenues Grants Other Revenue Service Improvement Fees Fund Balance Used Interest Interfund Transfers 17 Amended Adopted 2001/02 Budget % 2002/03 Budget % Police Services 4,025,319 5.1% 4,336,077 5.8% Streets 1,715,974 2.2% 1,625,438 2.2% Electric 16,557,487 21.2% 18,347,623 24.6% Public Library 791,539 1.0% 805,513 1.1% Economic Development 468,600 0.6% 350,350 0.5% Water 3,686,389 4.7% 4,104,114 5.5% Wastewater 2,003,882 2.6% 2,120,247 2.8% Sanitation 2,222,648 2.8% 2,426,600 3.3% Stormwater Drainage 294,173 0.4% 318,524 0.4% Debt Payments 6,330,756 8.1% 6,984,488 9.4% Airport 1,170,672 1.5% 1,201,709 1.6% Fire Services 2,909,327 3.7% 3,223,172 4.3% Management Svc-Others 1,131,255 1.4% 1,071,641 1.4% Capital Improvements 23,660,600 30.2% 15,414,700 20.7% Parks & Recreation 2,375,976 3.0% 2,393,251 3.2% Development Services 1,665,179 2.1% 1,413,846 1.9% Administration 7,215,978 9.2% 8,387,264 11.3% Budget Total By Program 78,225,754 100.0% 74,524,557 100.0% Interfund Transfers & Premiums 11,924,174 13,920,305 TOTAL OPERATING BUDGET 90,149,928 88,444,862 Program Budget 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Police Services Streets Electric Public Library Economic Development Water Wastewater Sanitation Stormwater Drainage Debt Payments Airport Fire Services Management Svc-Others Capital Improvements Parks & Recreation Development Services Administration Amended 2001/02 Budget Adopted 2002/03 Budget 18 00/01 Actual 01/02 Amended Budget 01/02 Projected Actual 02/03 Proposed Budget 03/04 Projected Budget Planning & Development 1,284,766 1,768,047 1,707,890 1,569,346 1,497,999 Georgetown Utility System 12,621,874 15,745,161 15,216,768 17,100,801 17,979,544 Management Services 6,027,779 5,827,574 5,767,996 6,308,922 6,246,261 Information Resources 1,027,013 982,517 971,207 1,143,032 1,168,443 Purchased Power (GUS) 16,222,960 14,238,000 15,549,236 15,945,649 16,582,282 Community Services 193,900 Economic Development 337,662 827,864 676,811 720,234 693,752 Capital Improvements 16,630,460 23,660,600 28,739,881 15,414,700 13,680,925 Parks & Recreation 2,705,600 2,716,622 2,586,672 2,733,909 2,702,450 Finance & Administration 5,705,323 6,231,339 6,142,513 7,093,054 7,039,120 Fire Services 3,101,371 3,366,337 3,392,676 3,450,599 3,577,135 Debt Payments 6,159,457 6,330,756 6,239,423 6,984,488 7,543,822 Police Services 4,111,106 4,374,972 4,349,776 4,744,044 4,865,465 Interfund Charges & Transfers 7,641,266 4,080,139 4,665,152 5,236,084 4,584,884 TOTAL BUDGET 83,770,537 90,149,928 96,006,001 88,444,862 88,162,082 Divisional Budget 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 22,000,000 24,000,000 26,000,000 28,000,000 30,000,000 P l a n n i n g & D e v e l o p m e n t G e o r g e t o w n U t i l i t y S y s t e m M a n a g e m e n t S e r v i c e s I n f o r m a t i o n R e s o u r c e s P u r c h a s e d P o w e r (G U S ) C o m m u n i t y S e r v i c e s E c o n o m i c D e v e l o p m e n t C a p i t a l I m p r o v e m e n t s P a r k s & R e c r e a t i o n F i n a n c e & A d m i n i s t r a t i o n F i r e S e r v i c e s D e b t P a y m e n t s P o l i c e S e r v i c e s I n t e r f u n d C h a r g e s & T r a n s f e r s 00/01 Actual 01/02 Amended Budget 01/02 Projected Actual 02/03 Proposed Budget 03/04 Projected Budget 19 20 Property Tax Revenues Taxable Property Values 0 2,000,000 4,000,000 6,000,000 8,000,000 96/97 97/98 98/99 99/00 00/01 01/02 02/03* 03/04* 04/05* 05/06* 0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 3,000,000,000 97/98 98/99 99/00 00/01 01/02 02/03* 03/04* 04/05* 05/06* 06/07* General Fund Revenue Debt Service New & Annexed Property Existing Property Values *Projected *Projected 21 Taxes: Taxes are levied on January 1 of each year and are considered past due on February 1 of the following year. 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. Taxable Valuations: Taxable values have risen steadily since 1994 due to rapid residential growth. Commercial and retail growth have also increased steadily during that period. 4 New construction permits have ranged from 650 to 1,100 per year since 1996. 4 Growth outlook on construction permits is expected at 685 for 2003, based on information from builders, planned subdivisions within the City and anticipated commercial development. 4 Values on existing property have risen annually 4-9% the last three years. 4 2002/03 new values include $167 million in new construction. Adopted Property Tax Rate for 2002/03 is $0.30261/$100 valuation: 4 Represents a 1.92% increase over the 2001/02 rate. 4 Breakdown: Maintenance and Operations (General Fund) $0.20307 Debt Service (payment on existing debt) $0.09954 Future Projections: Full compliance with the City’s fiscal policy, whereby operating revenues fund operating expenses, is planned for 2004. A property tax increase is projected for 2004, which should complete funding of the General Fund operating revenue shortfall, and provide policy compliance. Assumptions for the forecasts of future years are based upon historical trends, expected build out of planned subdivisions and utility tap requests. Assumptions include: 4 Continued new property growth of $150 million for the next two years, as new retail properties currently under construction are completed, with a 3% annual increase in existing valuations. 4 No annexations are included. 4 Tax rates do not include additional debt for future streets, or other capital improvements. Fiscal Year 97/98 98/99 99/00 00/01 01/02 02/03* 03/04* 04/05* 05/06* 06/07* Property Tax Revenues: (in thousands) General Fund 2,036 2,505 2,919 3,260 3,812 4,462 4,967 5,116 5,269 5,426 Debt Service 1,360 1,741 1,867 1,906 2,125 2,125 2,125 2,269 2,263 2,264 Property Values: (in millions) Existing Property 775 1,039 1,313 1,519 1,824 2,024 2,084 2,301 2,525 2,693 New & Annexed 210 156 114 110 135 167 150 150 90 90 Property Tax Rates Per $100 - taxable 0.350 0.350 0.340 0.314 0.307 0.303 0.318 0.309 0.300 0.291 valuation *Projected 22 The City receives 1.5% of the 7.75% sales and uses taxes that are remitted by retailers within the City limits. Of this amount, 1% is used for general operating purposes, with the other .5% used for transportation improvements through the Georgetown Transportation Enhancement Corporation. The remaining 6.25% is collected and retained by the State of Texas. The City’s sales tax base is diverse, with revenues being generated by national grocery and other retailers, building supply stores, utilities, etc. The heavy residential growth over the past few years has also created a demand for more restaurants and other retailers, which have expanded the City’s tax base. Sales tax revenue declined 4% in 2001/02 due to the general economic downturn experienced in the region. 2002/03 revenues are expected to stabilize at the current level, with increases expected in 2003/04 as new retail developments open. Future projections are based on the following assumptions: 4 2003/04 includes sales tax revenue from the Rivery Towne Center development, which includes Home Depot and Super Wal-Mart, expected to open late in fiscal year 2003. 4 2004/05 includes full build out of the Rivery Towne Center development, along with the initial phase of the Wolf Ranch development, a Simon property, expected to open in 2005. 4 Revenues past 2004/05 are projected conservatively, increasing 1.5% annually. Sales Tax Revenue - 1% General Operating $2.42M $2.86M $3.42M $3.53M $3.38M $3.39M* $4.03M* $4.69M* $4.76M* $4.83M* $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* *Projected 24 Electric Revenue Water Revenue $29.45M$28.18M $26.97M$25.81M $24.42M $23.81M$24.34M $20.79M $17.84M $14.82M $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* $11.39M $10.90M $10.43M $9.98M $9.47M $8.90M $7.20M$7.49M $6.39M$6.47M $5.48M $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 96/97 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* *Projected *Projected 25 Utility Revenues: The revenues shown include 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 the customer. Electric and Water Revenues: 4 Calculated on a four-year rolling average of per capita consumption in order to hedge against variations in weather conditions. 4 Growth estimates are based upon building permits, expected build out of subdivisions and other planning and development activity. 4 Assumes a 4.5% customer growth for Electric through the next five years as the City adjusts to a deregulated market. (historical average is 6-7%) 4 Assumes a 4% customer growth for Water for the next five years. (historical average is 6-7%) 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 improvements schedule. Wastewater Revenues: 4 Based on average monthly billings adjusted for customer growth. 4 Assumes a 4% customer growth over the next five years. (historical average is 5-6%) 4 Includes a volumetric rate increase from $2.70 to $2.95 per 1,000 gallons of water billed for 2002/03. 4 Includes policy change for commercial customers to pay for actual wastewater use in the summer months, rather than the previous policy of winter averaging their summer bills implemented in 2001/02. Wastewater Revenue $5.79M $5.54M $5.30M $5.07M $4.88M $4.45M $4.07M $3.96M $3.55M $3.13M $3.26M $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 96/97 97/98 98/99 99/00 00/01* 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* *Projected 26 Service Improvement Fees: Del Webb/Sun City: These fees are collected from Sun City Texas on a per unit basis to offset costs of infrastructure improvements to serve the development. The fees, similar to impact fees, are collected for water, wastewater, streets and public safety improvements as a part of the development agreement for the 12-15 year build out for the project. 4 Water Service Improvement Fees $1,986 per unit 4 Wastewater Service Improvement Fees $1,215 per unit 4 Streets and Fire fees are not significant and are presented as a part of other revenues Escalara Ranch: These fees are collected from the developer on a per unit basis to offset the cost of water improvements to the development. The fee of $3,391 per unit is being collected as the build-out continues. 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. Capital Recovery Fee Revenue Fiscal Year 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* (in thousands) Service Improvement Fees: Water 866 632 747 762 649 649 649 649 649 649 Wastewater 530 386 386 363 304 304 304 304 304 304 Total 1,396 1,018 1,133 1,125 953 953 953 953 953 953 Impact Fees: Water 204 410 495 795 330 413 330 330 330 330 Wastewater 135 245 329 594 240 300 300 300 300 300 Total 339 655 824 1,389 570 713 630 630 630 630 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* 04/05* 05/06* 06/07* Service Improvement Fees Impact Fees *Projected 27 Sanitation Revenue: Sanitation revenue includes fees collected for curbside garbage pick-up, including recycling and special pick- ups. Growth in the City’s customer base continues to be steady, mirroring the City’s growth rate. Revenue projections include a rate increase in 2002/03 from $11.75 to $12.50 per month to fund the increased cost of the contracted services. Airport Revenue: Airport revenue consists primarily of fuel sales, T-hangar rentals and tie-down fees. A 63-space T-hangar was completed in January 2000, to accommodate demand for hangar rental space, therefore increasing revenue. Fuel sales have also increased significantly, increasing revenue to the fund. 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. A $0.85 rate increase will be implemented November 2002 to bring the fund into compliance with the City’s Fiscal and Budgetary Policy by providing a 1.5 times debt service coverage ratio annually. The increase also provides $200,000 annually for capital infrastructure to correct drainage problems in the City. Irrigation Revenue: Revenue for irrigation reflects effluent and non-potable water sales to large commercial irrigation customers, such as golf courses. The utility was created in 2001/02 to provide an alternative water source, thus decreasing the demand for treated water. Revenues increase as the infrastructure is expanded to more commercial customers. Other Enterprise Fund Revenues Fiscal Year 95/96 96/97 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* (in thousands) Stormwater Drainage 260 327 461 616 668 698 904 1,229 1,291 Airport 458 603 596 724 1,324 1,449 1,514 1,562 1,562 Sanitation 1,292 1,507 1,680 1,910 2,089 2,362 2,517 2,796 2,907 Irrigation 150 453 453 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 95/96 96/97 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* Irrigation Sanitation Airport Stormwater Drainage *Projected 28 Interest Income: The Federal Reserve lowered interest rates over the past year, thus lowering projected interest revenue. Projections are based on anticipated cash balances from contingency reserves, bond proceeds invested through the life of construction projects and fund balances. Grant Revenue: The City receives grants for a variety of purposes. Council approves all grant applications. The City budgets for grants that have been approved and awarded by the granting agency. Grant revenue peaked in 1997 and 1998 due to a high number of grants for economic development, parks improvements and law enforcement. Grant revenue in 1999/00 included money received to partially fund the Airport terminal building construction. Grant revenue for 2002/03 is $526,175, consisting of the Victim Services Grant for $30,000, COPs in Schools for $26,991, ASAP for $10,184, Entitlement Grants totaling $450,000 and a State Assisted Airport Routine Maintenance Grant for $9,000. 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. 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 by the City and outside utilities for use of rights of way and public properties and are collected to offset the cost of street maintenance. Increases in revenue are predicted to mirror the City’s growth rate. Other Miscellaneous Revenues Fiscal Year 96/97 97/98 98/99 99/00 00/01* 01/02* 02/03* 03/04* (in thousands) Interest Income 819 1,296 1,653 1,962 1,903 1,101 1,123 1,041 Grant Revenue 1,212 1,184 308 945 307 417 526 30 Miscellaneous Revenue 2,365 4,053 2,783 3,208 4,133 4,340 4,589 4,416 Franchise Fees 813 974 1,052 1,388 1,379 1,467 1,546 1,613 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 96/97 97/98 98/99 99/00 00/01 01/02* 02/03* 03/04* Miscellaneous Revenue Franchise Fees Grant Revenue *Projected Interest Income 30 All Funds Summary GENERAL GENERAL SPECIAL CAPITAL DEBT TOTAL GENERAL REVENUE PROJECTS SERVICE BUDGET FUND FUNDS FUNDS FUND Beginning Fund Balances / 16,891,119 2,452,852 374,278 1,559,498 628,288 Working Capital SOURCES & REVENUES: Property taxes 6,587,398 4,462,000 2,125,398 Sales taxes 3,385,000 3,385,000 Bond Proceeds 9,240,000 Bond Reimbursement (6,583,432) Charges for Services 8,684,221 757,463 Capital Recovery Fees 712,500 Special Improvement Fees 1,235,895 283,050 Utility Revenues 43,237,064 Grants 526,175 67,175 Interest 1,122,537 98,000 60,402 58,000 Other Revenue 9,012,802 4,132,730 601,344 Interfund Transfers - Return On Investment, Etc.4,358,500 3,824,250 Interfund Transfers - Balancing 877,584 850,000 13,004 Total Revenues 82,396,244 17,509,443 681,523 343,452 2,183,398 USES & EXPENSES: Georgetown Utility Systems 17,100,801 1,790,125 Purchased Power 15,945,649 Economic Development 720,234 369,932 Finance & Administration 7,093,054 211,750 56,097 Fire Services 3,450,599 3,346,799 103,800 Information Resources 1,143,032 Management Services 6,308,922 3,541,462 80,573 Parks & Recreation 2,733,909 2,516,296 217,613 Planning & Development 1,569,346 1,547,046 22,300 Police Services 4,744,044 4,658,483 85,561 Capital Improvements 15,414,700 1,357,000 Debt Payments 6,984,488 2,193,022 Interfund Transfers 5,236,084 13,004 Total Uses & Expenses 88,444,862 17,624,965 935,876 1,357,000 2,193,022 Ending Fund Balance / 10,842,501 2,337,330 119,925 545,950 618,664 Working Capital RESERVATIONS: Contingency 8,500,000 2,325,000 60,000 Capital Projects/Other 2,000,641 59,925 545,950 618,664 Available Fund Balance/ 341,860 12,330 0 0 0 Working Capital 31 All Funds Summary (1) Includes Airport, Sanitation, Stormwater Drainage & Irrigation Funds OTHER INTERNAL ELECTRIC WASTEWATER WATER ENTERPRISE SERVICE FUND FUND FUND FUNDS(1) FUNDS Beginning Fund Balances / 4,593,719 2,162,788 3,925,378 598,313 596,005 Working Capital SOURCES & REVENUES: Property taxes Sales taxes Bond Proceeds 585,000 1,800,000 5,530,000 1,325,000 Bond Reimbursement (6,583,432) Charges for Services 7,926,758 Capital Recovery Fees 300,000 412,500 Special Improvement Fees 303,750 649,095 Utility Revenues 24,419,064 4,875,000 9,465,000 4,478,000 Grants 459,000 Interest 141,891 265,590 337,982 58,672 102,000 Other Revenue 1,430,661 492,385 595,630 1,663,152 96,900 Interfund Transfers - Return On Investment, Etc. 396,250 138,000 Interfund Transfers - Balancing 14,580 Total Revenues 26,576,616 8,432,975 10,406,775 7,983,824 8,278,238 USES & EXPENSES: Georgetown Utility Systems 4,317,881 3,263,409 5,428,681 698,429 1,602,276 Purchased Power 15,945,649 Economic Development 350,302 Finance & Administration 2,630,567 4,194,640 Fire Services Information Resources 1,143,032 Management Services 1,333,012 1,353,875 Parks & Recreation Planning & Development Police Services Capital Improvements 3,594,627 4,490,439 3,613,366 2,359,268 Debt Payments 1,184,868 1,293,232 1,750,220 563,146 Interfund Transfers 2,963,040 452,100 1,365,300 430,560 12,080 Total Uses & Expenses 28,006,065 9,499,180 12,157,567 8,014,982 8,656,205 Ending Fund Balance / 3,164,270 1,096,583 2,174,586 567,155 218,038 Working Capital RESERVATIONS: Contingency 3,100,000 1,095,000 1,650,000 270,000 Capital Projects/Other 500,250 205,353 70,499 Available Fund Balance/ 64,270 1,583 24,336 91,802 147,539 Working Capital 32 General Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 4,620,075 4,079,943 4,266,378 2,452,852 2,337,330 REVENUES: Property Taxes 3,259,679 3,812,300 3,812,300 4,462,000 4,967,000 Sales Taxes 3,526,862 3,640,000 3,375,000 3,385,000 4,025,000 Interest 257,453 158,788 98,000 98,000 98,000 Administrative Charges 739,719 719,165 726,759 757,463 764,341 All Other Revenue 3,522,533 4,240,368 3,723,934 4,132,730 4,294,830 Return on Investment 2,877,720 3,472,747 3,679,607 3,824,250 3,953,700 Transfers In - Balancing 2,181,600 850,000 Total Revenues 16,365,566 16,043,368 15,415,600 17,509,443 18,102,871 EXPENSES: Community Services 193,900 Finance & Administration 165,364 198,548 186,238 211,750 219,663 Fire Services 3,101,371 3,366,337 3,343,276 3,346,799 3,473,335 Georgetown Utility Systems 1,448,327 2,118,017 2,066,591 1,790,125 1,798,399 Management Services 2,213,777 2,400,622 2,290,512 2,268,983 2,311,352 Parks and Recreation 2,467,065 2,539,982 2,495,308 2,516,296 2,595,945 Planning & Development 1,280,166 1,761,763 1,701,606 1,547,046 1,469,361 Police Services 3,949,155 4,245,700 4,152,263 4,658,483 4,819,921 Interfund Nondept'l Chrg 1,147,112 1,050,594 988,176 1,272,479 1,333,660 Transfers Out 753,026 5,156 5,156 13,004 37,984 Total Expenses 16,719,263 17,686,719 17,229,126 17,624,965 18,059,620 Ending Fund Balance 4,266,378 2,436,592 2,452,852 2,337,330 2,380,581 RESERVATIONS: Contingency 2,203,000 2,325,000 2,325,000 2,325,000 2,325,000 Available Fund Balance 2,063,378 111,592 127,852 12,330 55,581 33 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. Significant Issues/Comments: 4 In 2001/02, the City implemented a new fiscal and budgetary policy to reduce the operating shortfall and the Fund’s dependency on transfers from the utility fund. 2002/03 is year two of the plan, with full implementation and elimination of the deficit projected for 2003/04. 4 Funds for streets maintenance, including rehabilitation ($250,000), overlay ($175,000), seal coat ($75,000), unscheduled street repairs ($95,000) and sidewalk repairs ($75,000) are included in the 2002/03 Street Department budget. 4 The first phase of a plan to upgrade Public Safety compensation was funded in 2002/03, including $157,000 for Police and $82,000 for Fire to raise starting salaries and implement annual step increases based on years of service. 4 Fire Services will add three additional firefighters to comply with new regulations. 4 Police Services added a traffic unit (2 positions) to increase safety by enhancing traffic enforcement, as well as a crime prevention officer to proactively address prevention issues within the community. Revenues 2002/03 Admin Charges 4% Interest & Other 22% Property Taxes 23% Fund Balance 9% Tfr In - Return on Inv. 20% Sales Taxes 18% Expenditures 2002/03 Dev Svcs 9.8% F&A 1.3% Fire Svcs 21.1% Parks 15.9% Mgt Svcs 14.3% Police Svcs 29.4% Intfd Nondept'l Chrg 8.0% 34 Electric Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 5,097,504 4,266,384 4,847,993 4,593,719 3,164,270 REVENUES: Electric Services 24,340,991 21,188,600 23,812,000 24,419,064 25,809,063 Bond Proceeds 1,108,332 1,500,000 585,000 Interest 187,657 182,825 136,525 141,891 148,979 All Other Revenue 923,843 1,154,247 1,189,707 1,430,661 1,354,711 Transfers In 30,017 Total Revenues 26,590,840 24,025,672 25,138,232 26,576,616 27,312,753 EXPENSES: Georgetown Utility System 3,250,957 3,880,680 3,870,774 4,317,881 4,336,593 Purchased Power 16,222,960 14,238,000 15,549,236 15,945,649 16,582,282 Capital Projects 3,174,170 4,005,600 2,884,500 3,594,627 3,028,900 Debt Payments 1,077,922 1,184,623 1,093,290 1,184,868 1,278,263 Transfers Out 3,114,342 1,773,706 1,994,706 2,963,040 2,119,350 Total Expenses 26,840,351 25,082,609 25,392,506 28,006,065 27,345,388 Ending Working Capital 4,847,993 3,209,447 4,593,719 3,164,270 3,131,635 RESERVATIONS: Contingency 3,400,000 3,100,000 3,100,000 3,100,000 3,100,000 Available Working Capital 1,447,993 109,447 1,493,719 64,270 31,635 35 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. Significant Issues/Comments: 4 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. 4 The Electric and Water funds share the maintenance of the City’s automated meter reading system. 4 A key account representative will be added to recruit and retain large accounts within the utility system. The fund will also share in the cost of a utilities financial analyst, to provide on-going financial administration for the utilities. 4 Capital projects are funded through operating revenues and debt when necessary. In 2003, $2.6 million of operating revenues and $550,000 of bond proceeds fund the annual capital projects plan. 4 Transfers Out include the 8% return on investment to the General Fund, as well as any needed balancing transfers. Revenues 2002/03 Electric Services 87% Fund Balance 5% Bond Proceeds 2% Interest 1%Other 5% Expenses 2002/03 Operating 15% Purchased Power 57% Capital Projects 13% Transfers 11% Debt Payments 4% 36 Wastewater Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 7,231,313 4,904,468 4,791,585 2,162,788 1,096,583 REVENUES: Wastewater Services 4,073,383 4,807,000 4,450,000 4,875,000 5,071,000 Bond Proceeds 791,667 1,800,000 4,350,000 Capital Recovery Fees 593,736 350,000 240,000 300,000 300,000 Special Improvement Fees 363,285 413,100 303,750 303,750 303,750 Interest 514,677 215,300 245,750 265,590 279,429 All Other Revenue 797,768 551,385 392,385 492,385 412,385 Transfers In 825,450 109,350 396,250 396,750 Total Revenues 7,959,966 6,336,785 5,741,235 8,432,975 11,113,314 EXPENSES: Georgetown Utility System 2,145,901 2,896,506 2,396,349 3,263,409 3,364,375 Capital Projects 6,762,340 4,160,000 3,961,544 4,490,439 5,459,400 Debt Payments 1,177,158 1,190,098 1,190,098 1,293,232 1,685,189 Transfers Out 314,295 892,401 822,041 452,100 453,850 Total Expenses 10,399,694 9,139,005 8,370,032 9,499,180 10,962,814 Ending Working Capital 4,791,585 2,102,248 2,162,788 1,096,583 1,247,083 RESERVATIONS: Contingency 875,000 1,100,000 1,100,000 1,095,000 1,095,000 Reservation for CIP 818,025 788,988 100,500 Available Working Capital 3,916,585 184,223 273,800 1,583 51,583 37 Fund Description: The Wastewater 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 Wastewater Collection and Wastewater Treatment Facilities departments, debt payments and capital projects. The fund also makes transfers out to the General Fund for the City’s return on investment for the Wastewater utility. Significant Issues/Comments: 4 The Pecan Branch Wastewater Treatment Plant, which adds 1.5 million gallons of daily treatment capacity to the City’s system, begins operations on October 1. The additional operating costs for this plant, as well as overall increases in maintenance costs, have significantly impacted this fund. 4 The City will increase volumetric rates from $2.70 per 1,000 gallons of water billed to $2.95 per 1,000 in 2002/03. Residential customers will still be allowed to “winter average” summer billings for wastewater services. 4 Capital projects are funded through operating revenues, service improvement fees, impact fees and debt when necessary. In 2003, debt will be issued to fund plant expansion and upgrades. 4 Wastewater rates will be reviewed again in the upcoming fiscal year, for the costs of implementing Chapter 213 of the Texas Commission on Environmental Quality Edwards Aquifer Protection Program. These requirements provide for approved testing to locate and repair structural damage and defects that potentially pose a threat to the Edwards Aquifer. The completion of this project will span a period of eight years and early estimates for remediation of the system are between $7 and $8 million for the entire project. Revenues 2002/03 Wastewater Services 52% Transfers 4% Other 5% Fund Balance 11% Interest 3% SIP & CR Fees 6% Expenses 2002/03 Operating 34% Capital Projects 47% Debt Payments 14% Transfers 5% 38 Water Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 5,735,687 6,645,531 6,941,103 3,925,378 2,174,586 REVENUES: Water Services 7,198,583 8,091,000 8,900,000 9,465,000 9,980,000 Bond Proceeds 5,530,000 Bond Reimbursement 6,583,432 (6,583,432) Capital Recovery Fees 795,356 400,000 330,000 412,500 330,000 Special Improvement Fees 762,439 827,835 649,095 649,095 649,095 Interest 390,701 275,627 218,770 337,982 247,600 Grants 148,144 All Other Revenue 977,643 642,780 2,756,353 595,630 518,630 Total Revenues 10,272,866 10,237,242 19,437,650 10,406,775 11,725,325 EXPENSES: Georgetown Utility System 4,295,632 4,941,712 5,002,339 5,428,681 6,162,839 Capital Projects 982,849 7,165,000 14,707,584 3,613,366 2,610,000 Debt Payments 1,309,699 1,322,745 1,322,745 1,750,220 1,869,237 Transfers Out 2,479,270 1,025,347 1,420,707 1,365,300 1,596,850 Total Expenses 9,067,450 14,454,804 22,453,375 12,157,567 12,238,926 Ending Working Capital 6,941,103 2,427,969 3,925,378 2,174,586 1,660,985 RESERVATIONS: Contingency 1,700,000 1,650,000 1,650,000 1,650,000 1,650,000 SIP reservation 268,364 100,250 Other 340,000 700,000 700,000 400,000 Available Working Capital 4,632,739 77,969 1,575,378 24,336 10,985 39 Fund Description: The Water Fund is used to account for the revenues from all operating and maintenance activities of the utility and the expenses of the Utility Contracts, Water Distribution and Water Treatment Facility departments, which support those activities. Water expenses also include debt payments, capital costs and the transfers out to the General Fund for the City’s return on investment for the Water utility. Significant Issues/Comments: 4 Water supply is provided through agreements with the Brazos River Authority. BRA expenses will increase due to the scheduled 15% annual raw water cost increase, as well as operational cost for the Williamson County Raw Water Line, which becomes operational in January 2003. 4 Water treatment costs are anticipated to increase in the Summer of 2003, when the expansion of the Lake Water Treatment Plant is complete, thus incurring additional plant operational costs. 4 Capital projects are funded through operating revenues, service improvement fees, impact fees and debt when necessary. The 2002/03 capital project funding includes a debt issue to reimburse cash funds expended in 2001/02 for the Lake Plant expansion that will be completed in July 2003. Revenues 2002/03 Water Services 67% Fund Balance 13% SIP & CR Fees 7% Interest 2% Other 4% Expenses 2002/03 Capital Projects 30% Debt Payments 14% Transfers 11% Operating 45% 40 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: 4 The terminal building was expanded in 2002, thereby increasing maintenance, insurance, utilities, and other on-going costs. 4 Fuel sales and accompanying fuel costs fluctuate according to demand. 4 The Airport Advisory Board implemented fee increases effective October 1, 2002 to fund a fiscally healthy debt service coverage ratio of 1.5 times coverage. 4 Capital projects are funded through operating revenues and grants, as well as debt, when necessary. The 2002/03 capital projects included the replacement of the game fence on the west side of the airport, as well as street rehabilitation, funded through entitlement grants from the Federal Aviation Administration. Airport Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 279,021 172,267 (12,756) 325,700 355,353 REVENUES: Fuel & Terminal Sales 1,033,740 1,095,380 1,094,180 1,121,072 1,121,072 Leases & Rents 415,040 419,500 419,500 440,880 440,880 Interest 20,071 9,009 10,018 9,009 9,009 Grant 7,500 288,011 459,000 All Other Revenue 68,000 44,000 44,000 44,000 44,000 Transfers In 11,320 2,304 2,304 Total Revenues 1,548,171 1,577,693 1,858,013 2,073,961 1,614,961 EXPENSES: Community Services 1,209,504 1,228,368 1,309,327 1,333,012 1,326,111 Capital Projects 455,215 15,000 15,000 510,000 40,000 Debt Payments 175,229 195,230 195,230 201,296 223,449 Total Expenses 1,839,948 1,438,598 1,519,557 2,044,308 1,589,560 Ending Working Capital (12,756) 311,362 325,700 355,353 380,754 RESERVATIONS: Contingency 150,000 150,000 150,000 150,000 150,000 Capital Projects 161,362 175,700 205,353 230,754 Available Working Capital (162,756) 0 0 0 0 41 Fund Description: The Sanitation Fund is used to account for revenues from all operating and maintenance activities of the utility and the expenses of the departments which support those activities. Sanitation includes operating costs for the City’s payment to a private contractor for solid waste disposal services, as well as contracted costs for the City’s collection station for bulky waste disposal. Significant Issues/Comments: 4 Customer growth over the past few years has caused increases in revenues and expenses. 4 Rates for Sanitation services are based on the City’s contract with a private contractor for solid waste disposal services. A rate increase in 2002/03 from $11.75 to $12.50 is scheduled to fund the increased cost of the contracted services. 4 The City typically budgets for a contingency fund balance in all funds that have personnel to provide security of the personnel budget in case of an unexpected fiscal crisis. Because the position in this fund was transferred after the City contracted for the collection station, the contingency fund was eliminated. The fund now serves as only a pass-through for revenues and associated contracted costs. Sanitation Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 88,493 108,008 117,747 93,739 73,322 REVENUES: Sanitation Services 2,362,039 2,506,500 2,517,000 2,796,000 2,907,000 All Other Revenue 39,911 37,550 37,550 41,150 41,550 Total Revenues 2,401,950 2,544,050 2,554,550 2,837,150 2,948,550 EXPENSES: Community Services 2,228,639 2,392,539 2,364,208 2,570,567 2,665,186 Abatement/Clean-Up Program 10,000 60,000 60,000 Transfers Out 144,057 203,500 204,350 227,000 236,000 Total Expenses 2,372,696 2,596,039 2,578,558 2,857,567 2,961,186 Available Working Capital 117,747 56,019 93,739 73,322 60,686 RESERVATIONS: Contingency 50,000 50,000 50,000 Available Fund Balance 67,747 6,019 43,739 73,322 60,686 42 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: 4 The per unit cost for Stormwater Drainage will increase from $2.90 to $3.75 in 2002/03. This increase was adopted with the budget, in order to provide long term fiscal viability for the Stormwater Fund by ensuring a debt service coverage ratio of 1.5 times coverage, as provided by the City’s Fiscal and Budgetary Policy. This increase also provides $200,000 annually for the correction of drainage problems within the City. 4 City engineers have prepared a complete Stormwater Drainage Regional plan, which outlines future capital improvements that are needed to improve drainage in the City. Additional capital and infrastructure improvements will require additional rate increases in the future. Stormwater Drainage Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 863,343 481,942 496,922 175,874 138,480 REVENUES: Stormwater Fees 698,008 937,276 904,000 1,229,000 1,291,000 Bond Proceeds 250,000 725,000 Interest 45,637 7,023 12,200 5,200 13,625 All Other Revenue 11,255 12,150 16,050 16,050 17,050 Transfers In 9,743 1,197 1,197 Total Revenues 764,643 957,646 933,447 1,500,250 2,046,675 EXPENSES: Georgetown Utility Systems 466,285 597,610 566,233 667,830 685,311 Capital Projects 373,543 445,000 360,000 425,268 962,625 Debt Payments 193,698 254,662 254,662 277,236 276,434 Transfers Out 97,538 75,990 73,600 167,310 104,600 Total Expenses 1,131,064 1,373,262 1,254,495 1,537,644 2,028,970 Ending Working Capital 496,922 66,326 175,874 138,480 156,185 RESERVATIONS: Contingency 65,000 65,000 65,000 120,000 120,000 Available Working Capital 431,922 1,326 110,874 18,480 36,185 43 Fund Description: The Irrigation Fund is used to account for sales of effluent and non-potable water to large commercial irrigation customers and the costs of providing infrastructure for the utility and maintenance on that infrastructure. Significant Issues/Comments: 4 The Irrigation Utility was created in 2001/02 to provide a source of irrigation to meet the needs of large commercial irrigation customers, such as golf courses. 4 A cost of service study was prepared in 2001 to set the rate for the irrigation utility at the cost of providing the service. The rate is $0.54/1000 gallons. 4 The infrastructure expansion scheduled for 2003 is to connect Georgetown Country Club, through Rivery Park, to the effluent system. Irrigation Fund 01/02 02/03 03/04 00/01 01/02 PROJECTED ADOPTED PROJECTED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 00 0 3 , 0 0 0 0 REVENUES: Irrigation Fees 453,000 150,000 453,000 453,000 Bond Proceeds 1,075,000 485,000 Interest 13,475 7,625 44,463 35,657 Transfers In 494,875 764,875 200,000 Total Revenues 0 961,350 922,500 1,572,463 1,173,657 EXPENSES: Georgetown Utility System 25,100 10,500 30,599 30,627 Capital Improvements 900,000 900,000 1,400,000 1,000,000 Debt Service 108,614 106,780 Transfers Out 36,250 9,000 36,250 36,250 Total Expenses 0 961,350 919,500 1,575,463 1,173,657 Available Working Capital 0 0 3,000 0 0 44 Fund Description: Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by Special Revenue (grants) and Enterprise Funds (i.e. utilities and airport). Facilities, Parks & Public Safety Capital Projects Funds: Includes funds for the implementation of the City’s facilities construction plan, which includes the completion of the renovation of the Municipal Complex on Industrial Avenue for the Georgetown Utility System, Development Services and the Utility Office, the renovation of the existing GUS complex for the Animal Shelter and the renovation of City Hall. Streets Capital Projects Fund: Includes revenues from the transportation fee received as a part of the City’s development agreement with Sun City Georgetown. Projects to be constructed with existing funding sources are included in the City’s five-year capital improvement program. Transportation projects to be funded through the additional ½ cent sales tax approved in May 2001, are determined by the Georgetown Transportation Enhancement Corporation (GTEC), the City’s “4B” corporation which oversees this revenue. The board of GTEC is appointed by the City Council and its budget is approved annually by Council. Although GTEC is a separate entity from the City, a copy of the GTEC budget is included in the reference section of this document. General Capital Projects Funds - Summary 2002/03 FACILITIES, STREETS GENERAL PARKS & CAPITAL CAPITAL PROJECTS PUBLIC SAFETY PROJECTS TOTAL Beginning Fund Balance 865,673 693,825 1,559,498 REVENUES: Interest 31,327 29,075 60,402 Service Improvement Fees 283,050 283,050 Total Revenues 31,327 312,125 343,452 EXPENDITURES: Capital Projects 897,000 460,000 1,357,000 Total Expenditures 897,000 460,000 1,357,000 Ending Fund Balance 0 545,950 545,950 SIP Reservation 545,950 545,950 Available Fund Balance 0 0 0 45 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: 4 Grants 4 Hotel Occupancy Tax (HOT) 4 Parkland dedication fees 4 Donations 4 Police seizures Significant Issues/Comments: 4 These funds vary significantly with the level of donation and grant activity for each year. 4 Hotel Occupancy Tax decreased 23% from 2001 to 2002. The decrease is attributed to an overall downturn in the economy, less travel due to September 11, 2001 events and the opening of new properties in the nearby Round Rock area. The City adjusted expenditures to accommodate the downturn, while planning more community events to increase future revenues. Special Revenue Funds - Summary 2002/03 BEGINNING ENDING FUND FUND FUND DIVISION/SECTION BALANCE REVENUES EXPENDITURES BALANCE Animal Service Fund Management Services 0 15,400 15,400 0 Cemetery Fund Parks & Recreation 0 56,180 56,180 0 Court Fee Fund Finance & Administration 0 21,700 21,700 0 Fire Billing for Service Fire Services 0 103,800 103,800 0 Library Donations Management Services 0 21,100 21,100 0 Main Street Facade Fund Economic Development 0 1,200 1,200 0 Mapping Fund Planning & Development 7,138 21,500 28,638 0 Parks Restricted Parks & Recreation 0 50,325 50,325 0 Police Restricted Police Services 0 45,544 45,544 0 Tourism Fund Economic Development 112,787 369,579 337,627 144,739 Total Special Revenue Funds 119,925 706,328 681,514 144,739 46 Fund Description: 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 and staff support to all using City departments. Charges are based on hardware and software replacements for each department. Joint Services Fund: Composed of departments providing administrative services to City funds and departments. GUS Administration, Pump Maintenance, Systems Engineering and Utility Office provide support to the City’s utility funds. Administrative departments, including Accounting, Human Resources and Safety, Finance Administration and Purchasing and Properties provide support to all City funds and departments. Internal Service Funds - Summary 2002/03 FACILITIES FLEET INFORMATION JOINT INTERNAL MAINTENANCE MANAGEMENT SERVICES SERVICES SERVICES FUND FUND FUND FUND FUND TOTAL Beginning Working Capital 0 246,970 31,728 317,307 596,005 REVENUES: Charges for Services 492,785 1,261,009 1,074,806 5,124,558 7,953,158 Interest & Other 10,000 40,000 25,500 87,000 162,500 Sale of Property 10,000 10,000 Interfund Transfers 138,000 14,580 152,580 Total Revenues 502,785 1,449,009 1,114,886 5,211,558 8,278,238 EXPENSES: Georgetown Utility System 1,602,276 1,602,276 Economic Development 350,302 350,302 Finance & Administration 502,582 1,629,265 2,062,793 4,194,640 Information Resources 1,143,032 1,143,032 Management Services 1,353,875 1,353,875 Interfund Transfers 12,080 12,080 Total Expenses 502,582 1,629,265 1,143,032 5,381,326 8,656,205 Ending Working Capital 203 66,714 3,582 147,539 218,038