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HomeMy WebLinkAbout03-Financial Summary Financial Summary 21 City Operations by Fund GENERAL FUND SPECIAL REVENUE FUND INTERNAL SERVICE FUND City Council Inspection Services Municipal Court OTHER ENTERPRISE FUND WATER SERVICES FUND ELECTRIC FUND Fire Parks Planning & Development Police City Mgr Office Public Library Streets Recreation Tourism Electric Operations AMR Wastewater Collection Reuse Irrigation Water Distribution Sanitation Contract Stormwater Drainage Airport Operations CVB Main Street Fleet Management Information Technology Facilities Maintenance Joint Services Facilities Maintenance Economic Development Accounting F & A Admin GUS Admin Purchasing Systems Engineering Legal Contracts Utility Office 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. 22 *Represents actual excess revenues collected and spent or available to be spent in subsequent years. Property Taxes 8% Sales Taxes 6% Bond Proceeds 10% Utility Revenue 47% Grants 0% Other Revenue 10% Interfund Transfers 8% Service Improvement Fees 1% Charges for Services 8% Capital Recovery Fees 0.66% Interest 0.59% 04/05 Actual 05/06 Amended Budget 05/06 Projected Actual 06/07 Adopted Budget 07/08 Estimated Budget Property Taxes 8,425,750 9,176,803 9,192,303 11,042,835 11,716,335 Sales Taxes 6,047,639 7,716,900 7,907,500 8,453,375 8,917,012 Bond Proceeds 22,485,119 19,961,230 28,445,630 14,534,957 13,210,000 Charges for Services 9,098,712 10,089,938 10,089,938 11,332,690 11,349,612 Capital Recovery Fees 543,977 477,000 811,950 922,000 1,167,000 Service Improvement Fees 2,290,418 2,232,200 4,212,282 1,092,500 1,092,500 Utility Revenue 54,290,221 56,063,620 60,345,711 66,243,500 70,893,000 Grants 1,207,085 1,415,326 1,435,111 0 0 Interest 1,164,458 641,828 1,385,950 829,800 744,788 Other Revenue 14,859,744 13,367,508 20,758,758 14,560,465 16,249,777 Interfund Transfers 7,004,687 8,032,638 8,922,884 10,998,149 7,343,051 TOTAL REVENUE 127,417,810 129,174,991 153,508,017 140,010,271 142,683,075 *Fund balance (increase or use)(8,387,088) 14,988,149 (2,614,476)14,475,521 (1,177,324) TOTAL BUDGET 119,030,722 144,163,140 150,893,541 154,485,792 141,505,751 Budgeted Revenues 2006-2007 23 Purchased Power (GUS) 19% Community Services 3% Debt Payments 7% Capital Improvements 22% Georgetown Utility Systems 20% Interfund Charges & Transfers 7% Management Services 7% Community Development 2% Finance & Administration 5% Police Services 5% Fire Services 3% 04/05 Actual 05/06 Amended Budget 05/06 Projected Actual 06/07 Adopted Budget 07/08 Estimated Budget Georgetown Utility Systems 19,672,123 21,777,609 21,658,885 30,085,069 30,244,075 Purchased Power (GUS) 21,075,872 22,588,000 29,300,000 29,500,000 32,400,000 Community Development 2,026,942 2,439,610 2,355,826 2,649,149 2,332,284 Finance & Administration 8,780,812 9,069,674 10,342,839 8,088,800 6,812,102 Fire Services 3,668,729 4,397,382 4,418,196 5,073,838 5,109,873 Management Services 8,264,273 9,543,310 9,789,612 10,860,201 10,562,830 Community Services 4,704,350 4,736,244 4,764,574 5,161,410 5,091,920 Police Services 5,642,750 6,900,110 6,830,425 7,832,404 7,952,823 Capital Improvements 19,335,825 44,073,957 34,924,321 32,833,855 21,719,800 Debt Payments 18,854,359 10,604,606 17,585,979 11,402,917 11,936,993 Interfund Charges & Transfers 7,004,687 8,032,638 8,922,884 10,998,149 7,343,051 TOTAL BUDGET 119,030,722 144,163,140 150,893,541 154,485,792 141,505,751 Budgeted Expenses 2006-2007 24 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 Police Services Streets Electric Economic Development Water Services Sanitation Stormwater Drainage Debt Payments Airport Fire Services Management Svc-Others Capital Improvements Community Services Community Development Administration Amended 2005/06 Budget Adopted 2006/07 Budget Amended Adopted 2005/06 Budget % 2006/07 Budget % Police Services 6,672,044 5.3% 7,591,715 5.7% Streets 1,960,373 1.6% 2,446,970 1.8% Electric 26,255,582 20.8% 34,398,893 26.0% Economic Development 377,924 0.3% 384,599 0.3% Water Services 8,807,963 7.0% 11,026,839 8.3% Sanitation 2,873,909 2.3% 3,563,880 2.7% Stormwater Drainage 407,284 0.3% 423,019 0.3% Debt Payments 10,604,606 8.4% 11,402,917 8.6% Airport 1,765,899 1.4% 1,967,355 1.5% Fire Services 4,016,371 3.2% 4,684,217 3.5% Management Svc-Others 1,115,003 0.9% 1,778,072 1.3% Capital Improvements 44,073,957 34.9% 32,833,855 24.8% Community Services 4,114,050 3.3% 4,460,411 3.4% Community Development 2,193,058 1.7% 2,443,732 1.8% Administration 10,932,335 8.7% 12,888,168 9.7% Budget Total By Program 126,170,358 100.0% 132,294,642 100.0% Interfund Transfers & Premiums 17,992,782 22,191,150 TOTAL OPERATING BUDGET 144,163,140 154,485,792 Program Budget 26 Property Tax Revenues Taxable Property Values 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 00/01 01/02 02/03 03/04 04/05 05/06 06/07* 07/08* 08/09* 09/10* 0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 3,000,000,000 3,500,000,000 00/01 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* General Fund Revenue Debt Service New & Annexed Property Existing Property Values *Projected *Projected 27 Taxes: Taxes are levied on January 1 of each year and are considered past due on February 1 of the following year. The Williamson County 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 2005/06 is 99.86%. Taxable Valuations: 4 Over the past 5 years, new construction permits have ranged from 650 to 1,100. 2005/06 set a new record with1,316 permits. This growth trend is expected to continue into 2007, based on information from builders, planned subdivisions within the city and anticipated commercial development. 4 Values on existing property increased 3.6% over last year. The average home value is $179,064, which is an increase of 6.3% over the prior year. Overall, total assessed valuation was 14% greater than prior year. 4 2006/07 new values include $267 million in new construction and annexed property, of which $67 million is new commercial property. Adopted Property Tax Rate for 2006/07 is $0.36728/$100 valuation: 4 Represents a 6.7% increase over the adjusted effective rate of $0.34394/$100 valuation, which includes a $0.030445 adjustment for sales tax dedicated to property tax relief. 4 The City adopted an 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. 4 Breakdown: 06/07 05/06 M & O - Maintenance and Operations (General Fund) $0.21979 $0.20713 I & S - Debt Service (payment on existing debt) $0.14749 $0.13913 *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: 4 Continued new and annexed property growth of $150 million in 2007/08, then $100 million in the out years as new retail properties are added to the tax role, with a 3% annual increase in existing valuations. 4 No increases in M & O; projected at effective rate. 4 Increase in I & S relates to issuance of voter approved general obligation bonds approved in November 2004 for a new Library, Community Center and Recreation Center expansion. 4 Reflects impact of 1/8% sales tax for property tax relief. Fiscal Year 01/02 02/03 03/04 04/05 05/06 06/07* 07/08* 08/09* 09/10* 10/11* Property Tax Revenues: (in thousands) General Fund 3,814 4,456 5,011 5,663 5,638 6,596 6,976 7,150 7,329 7,512 Debt Service 2,204 2,173 2,223 2,708 3,478 4,358 4,641 4,757 4,876 4,998 Property Values: (in millions) Existing Property 1,804 2,024 2,130 2,272 2,507 2,793 2,863 2,934 3,008 3,083 New & Annexed 135 167 92 120 136 267 150 100 100 100 Property Tax Rates Per $100 - taxable 0.307 0.303 0.322 0.346 0.346 0.367 0.343 0.353 0.338 0.320 valuation *projected 28 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, approved in November 2002 and sunsets in 2006 unless reauthorized by voters 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, such as Walgreens, a second HEB grocery, and a new Rivery Towne Shopping Center, which includes Home Depot and Walmart Supercenter. In July 2005, Wolf Ranch, a 750,000 sq ft Simon development, which includes Target, Old Navy, PETsMART, Michaels, and Best Buy, among others, opened in Georgetown providing additional shopping opportunities. Future projections are based on the following assumptions: 4 2006/07 includes a 6.9% increase in the overall sales tax base projections from prior year. Growth in baseline sales tax (without Wolf Ranch) has averaged about 10% due to increased building material sales. A 5% increase in baseline sales tax is projected in 2006/07 due to the volatility of the housing market and local economic conditions. 4 The City’s development agreement with Simon for Wolf Ranch includes a sales tax rebate of 53% of General operating sales tax revenue as an economic development incentive. Sales Tax Revenue - 1% General Operating $3.45M $3.72M $4.22M $4.87M $6.06M* $6.48M* $6.84M* $6.95M* $7.06M* $7.16M* $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* *Projected 30 Electric Revenue *Projected Water Services Revenue - Water *Projected $23.7 $26.3 $29.9 $34.3 $37.6 $43.2 $46.7 $49.4 $51.5 $53.5 $.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* Mi l l i o n s $9.0 $9.4 $9.2 $10.5 $12.4 $11.7 $12.2 $13.1 $13.7 $14.3 $.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* Mi l l i o n s 31 Water Services Revenue - Wastewater *Projected $4.6 $5.2 $5.7 $6.0 $6.8 $7.1 $7.4 $7.8 $8.2 $8.5 $.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* Mi l l i o n s Utility Revenues: The revenue 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 customers. 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, as the City’s southern electric service area is developed. (historical average is 6-7%) 4 Assumes a 5% customer growth for Water for the next five years. (historical average is 6-7%) 4 Rising purchased power costs also attribute to increased electric revenue, as these costs are passed on to the customer through a fuel adjustment in the rate. 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: 4 Based on average monthly billings adjusted for customer growth. 4 Assumes a 5% customer growth over the next five years. (historical average is 5-6%) 32 Capital Recovery Fee Revenue Fiscal Year 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* Service Improvement Fees: Water 756 1,590 1,593 1,597 3,040 689 689 1,199 661 670 Wastewater 373 671 671 671 1,162 386 386 692 306 306 Total (thousands)1,129 2,261 2,265 2,268 4,202 1,076 1,076 1,892 967 976 Impact Fees: Water 337 433 400 544 812 922 1,167 1,219 1,328 1,379 Wastewater 244 294 321 427 506 723 910 931 999 1,021 Total (thousands)580 727 722 970 1,318 1,645 2,077 2,150 2,327 2,400 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* 08/09* 09/10* 10/11* Service Improvement Fees Impact Fees *Projected 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 in revenue in 2005/06 is due to a one- time payment from Del Webb to reimburse the City for stranded costs associated with Sun City. 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. 33 Sanitation Revenue: Sanitation revenue includes fees collected for curbside garbage pick-up, including recycling and special pick- ups. Revenue is expected to increase as rates are adjusted to fund the increasing cost of service. Growth in the City’s customer base continues to be steady, mirroring the City’s growth rate. The City contracts with Texas Disposal Systems for garbage service. 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. The rate of $4.25 per unit also provides $300,000 annually for capital maintenance to correct drainage problems in the City. Fiscal Year 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* (in thousands) Stormwater Drainage 616 668 698 885 1,196 1,299 1,539 1,667 1,728 1,785 Airport 724 1,324 1,449 1,431 1,451 1,647 2,336 2,451 2,281 2,423 Sanitation 1,910 2,089 2,362 2,500 2,744 2,888 3,150 3,635 4,000 4,200 Other Enterprise Fund Revenues $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* Sanitation Airport Stormwater Drainage *Projected 34 Other Miscellaneous Revenues $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 99/00 00/01 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* Miscellaneous Revenue Franchise Fees Grant Revenue *Projected Interest Income Interest Income: The Federal Reserve raised interest rates over the past year, thus increasing 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, as well as, continued existing market conditions. 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. 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 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 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. Fiscal Year 99/00 00/01 01/02 02/03 03/04 04/05 05/06* 06/07* 07/08* (in thousands) Interest Income 1,962 1,903 1,192 681 583 1,164 1,386 830 745 Grant Revenue 945 307 472 160 209 1,207 1,435 0 0 Miscellaneous Revenue 3,208 4,133 4,173 5,071 6,020 7,049 13,065 7,660 7,791 Franchise Fees 1,388 1,379 1,489 1,580 1,845 1,942 2,301 2,171 2,394 36 All Funds Summary (1) Includes Airport, Sanitation, and Stormwater Drainage (2) Includes debt service payments on behalf of the Georgetown Transportation Enhancement Corporation (GTEC) offset by transfer from GTEC (3) . General General Special Capital Debt Total General Revenue Projects Service Budget Fund Funds Funds Fund Beginning Fund Balances / 32,880,080 6,402,227 1,822,363 3,215,084 818,307 Working Capital SOURCES & REVENUES: Property taxes 11,042,835 6,596,365 78,570 4,367,900 Sales taxes 8,453,375 6,834,375 1,619,000 Bond Proceeds 14,597,587 5,847,587 Future Funding Source (62,630)(62,630) Charges for Services 11,332,690 1,095,967 Capital Recovery Fees 922,000 Special Improvement Fees 1,092,500 16,800 Utility Revenues 66,243,500 Grants 0 Interest 829,800 290,000 32,400 105,400 60,000 Other Revenue 14,560,465 6,643,731 1,050,372 711,375 (2) Interfund Transfers - ROI, Etc.10,998,149 5,740,819 79,020 2,374,500 88,996 Total Revenues 140,010,271 27,201,257 2,859,362 8,281,657 5,228,271 USES & EXPENSES: Georgetown Utility Systems 30,085,069 2,616,181 Purchased Power 29,500,000 Community Development 2,649,149 2,579,986 69,163 Finance & Administration 8,088,800 368,997 100,864 73,500 Fire Services 5,073,838 4,912,676 161,162 Management Services 10,860,201 4,501,175 416,674 Community Services 5,161,410 4,834,301 327,109 Police Services 7,832,404 7,760,934 71,470 Capital Improvements 32,833,855 2,820,000 9,192,825 Debt Payments 11,402,917 5,074,768 (2) Interfund Transfers 10,998,149 584,128 423,670 1,946,200 Total Uses & Expenses 154,485,792 28,158,378 4,390,112 11,212,525 5,074,768 Ending Fund Balance / 18,404,559 5,445,106 291,613 284,216 971,810 Working Capital RESERVATIONS: Contingency 12,400,000 5,350,000 75,000 Capital Projects/Other 4,539,424 102,032 67,200 971,810 Available Fund Balance/ 1,465,135 95,106 114,581 217,016 0 Working Capital 37 All Funds Summary Other Internal Electric Water Enterprise Service Fund Fund Funds(1) Funds Beginning Fund Balances / 5,518,342 13,775,309 859,458 468,990 Working Capital SOURCES & REVENUES: Property taxes Sales taxes Bond Proceeds 5,790,000 2,960,000 Future Funding Source Charges for Services 10,236,723 Capital Recovery Fees 922,000 Special Improvement Fees 1,075,700 Utility Revenues 42,670,900 17,831,000 5,741,600 Grants Interest 85,500 127,900 17,300 111,300 Other Revenue 1,618,271 2,021,500 2,495,216 20,000 Interfund Transfers - ROI, Etc. 86,161 2,628,653 Total Revenues 50,250,832 24,938,100 8,254,116 12,996,676 USES & EXPENSES: Georgetown Utility Systems 7,538,536 13,512,413 4,797,519 1,620,420 Purchased Power 29,500,000 Community Development Finance & Administration 7,545,439 Fire Services Management Services 2,057,632 3,884,720 Community Services Police Services Capital Improvements 7,618,550 12,762,480 440,000 Debt Payments 2,358,300 3,514,459 455,390 Interfund Transfers 5,513,274 2,006,877 463,052 60,948 Total Uses & Expenses 52,528,660 31,796,229 8,213,593 13,111,527 Ending Fund Balance / 3,240,514 6,917,180 899,981 354,139 Working Capital RESERVATIONS: Contingency 3,200,000 3,475,000 300,000 Capital Projects/Other 2,540,179 504,064 354,139 Available Fund Balance/ 40,514 902,001 95,917 0 Working Capital 38 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. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 4,744,968 6,484,776 6,487,099 6,402,227 5,445,106 REVENUES: Property Taxes 5,663,442 5,622,365 5,637,865 6,596,365 6,976,365 Sales Taxes 4,823,378 6,168,000 6,392,500 6,834,375 7,205,012 Interest 167,417 172,000 260,000 290,000 290,000 Administrative Charges 856,478 984,418 984,418 1,095,967 1,115,409 All Other Revenue 5,473,017 5,321,973 6,170,600 6,643,731 6,825,516 Return on Investment 4,550,972 4,712,800 5,103,046 5,523,249 5,894,581 Transfers In 253,632 (1)393,987 393,987 217,570 217,570 Total Revenues 21,788,336 23,375,543 24,942,416 27,201,257 28,524,453 EXPENSES: Georgetown Utility Systems 1,946,298 2,108,762 1,608,762 2,616,181 2,828,446 Community Development 2,007,544 2,393,582 2,309,774 2,579,986 2,295,896 Finance & Administration 285,110 396,321 396,321 368,997 368,997 Fire Services 3,519,995 4,297,582 4,272,996 4,912,676 5,030,073 Management Services 1,259,045 1,820,687 1,820,745 2,415,356 2,500,883 Community Services 3,833,934 4,460,156 4,453,605 4,834,301 4,924,371 Police Services 5,440,185 6,755,823 6,738,068 7,760,934 7,920,423 Administrative Expense 1,398,180 1,682,309 1,682,309 2,085,819 2,043,924 Transfers Out 355,914 1,244,708 1,744,708 584,128 79,520 Total Expenses 20,046,205 25,159,930 25,027,288 28,158,378 27,992,533 Ending Fund Balance 6,487,099 4,700,389 6,402,227 5,445,106 5,977,026 RESERVATIONS: Contingency 3,930,000 4,700,000 4,700,000 5,350,000 5,500,000 Available Fund Balance 2,557,099 389 1,702,227 95,106 477,026 (1) Contingency reserve reallocation 39 Significant Issues/Comments: 4 Funds for street capital maintenance total $1,176,000, and represents 4% of the General Fund on-going operating budget increasing from $825,000 from the prior year. The total General Fund portion of street maintenance is $2.06 million, which includes staff costs, utility costs for street lighting and other maintenance costs. 4 The final year of a three year initiative to improve emergency response levels through increased staffing is included in the 2006/07 budget. Funding includes $129,686 for additional personnel and equipment in Police and $190,627 in Fire with staggered hiring dates of January and October. 4 Public Safety compensation was increased in 2006/07 to be more competitive with surrounding communities. $689,000 is included for pay adjustments for existing Public Safety staff. 4 Funding includes $962,404 of “one time” projects, including Library start up costs, long range planning studies and gateway signage. 4 Contingency Reserves were increased to comply with the City’s budgetary and financial policy for 90 days of operating expense in reserve for this fund. Fiscal Year 2006/07 Revenues Admin Charges 4% Interest & Other 25% Property Taxes 23% Fund Balance 3% Tfr In - Return on Inv. 20% Sales Taxes 24% Expenditures GUS 9%Comm Dev 9% F&A 1% Fire Svcs 17% Mgt Svcs 9%Comm Svcs 17% Police Svcs 29% Transfers Out 2%Admin Exp 7% 40 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. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 5,022,961 7,026,514 6,771,089 5,518,342 3,240,514 REVENUES: Electric Services 33,802,583 34,300,000 36,852,200 42,670,900 46,156,600 Bond Proceeds 575,000 8,198,000 8,500,000 5,790,000 1,510,000 Interest 132,192 45,500 45,500 85,500 85,500 All Other Revenue 1,799,159 1,535,582 7,802,382 1,618,271 1,613,271 Transfers In 86,161 65,034 Total Revenues 36,308,934 44,079,082 53,200,082 50,250,832 49,430,405 EXPENSES: Georgetown Utility Systems 5,415,707 5,974,025 6,068,736 7,538,536 7,496,139 Purchased Power 21,075,872 22,588,000 29,300,000 29,500,000 32,400,000 Capital Projects 3,877,887 15,029,600 14,208,600 7,618,550 3,293,000 Debt Payments 1,252,446 1,707,789 1,255,125 2,358,300 2,440,150 Transfers Out 2,938,894 3,376,512 3,620,368 5,513,274 3,809,771 Total Expenses 34,560,806 48,675,926 54,452,829 52,528,660 49,439,060 Ending Working Capital 6,771,089 2,429,670 5,518,342 3,240,514 3,231,859 RESERVATIONS: Contingency 2,245,000 2,225,000 2,245,000 3,200,000 3,200,000 Available Working Capital 4,526,089 204,670 3,273,342 40,514 31,859 41 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. Power costs have increased significantly over prior years due to the increased cost of natural gas. 4 The Electric and Water Services funds share the maintenance of the City’s automated meter reading system. 4 Capital projects are funded through operating revenues and debt when necessary. In 2007, $1.2 million of operating revenues and $5.8 million 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 transfers to the Fleet Fund for new program equipment. 4 A 24/7 dispatch program will be added in 2007 to meet demand, along with an underground maintenance crew. 4 The first of two City-owned electric substations will come on-line in 2007 to provide power to the southside service area. Fiscal Year 2006/07 Revenues Electric Services 81% Fund Balance 5% Bond Proceeds 11% Interest & Other 3% Expenses Operating 14% Purchased Power 57% Transfers 10% Capital Projects 15% Debt Payments 4% 42 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. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 8,471,859 9,040,859 8,897,788 13,775,309 6,917,180 REVENUES: Water Services 9,838,920 10,236,000 11,616,109 10,888,600 11,423,200 Wastewater Services 5,696,858 6,347,530 6,278,900 6,657,500 6,995,100 Irrigation Services 249,543 284,900 284,900 284,900 318,900 Bond Proceeds 3,450,000 2,960,000 1,225,000 Impact Fees 543,977 477,000 811,950 922,000 1,167,000 Service Improvement Fees 2,268,168 2,215,400 4,195,482 1,075,700 1,075,700 Interest 384,240 212,650 433,650 127,900 127,900 All Other Revenue 2,217,217 2,074,350 2,186,982 2,021,500 2,808,100 Transfer In 10,376 10,376 Total Revenues 24,648,923 21,858,206 25,818,349 24,938,100 25,140,900 EXPENSES: Georgetown Utility Systems 10,173,615 11,204,109 11,531,043 13,512,413 13,395,368 Capital Projects 8,704,235 8,563,000 4,698,520 12,762,480 7,201,000 Debt Payments 3,473,244 3,609,900 3,618,175 3,514,459 3,401,914 Transfers Out 1,871,900 1,823,166 1,935,256 2,006,877 1,843,114 Total Expenses 24,222,994 25,200,175 21,782,994 31,796,229 25,841,396 Ending Working Capital 8,897,788 5,698,890 12,933,143 6,917,180 6,216,684 RESERVATIONS: Contingency 2,750,000 3,100,000 3,100,000 3,475,000 3,350,000 Service Improvement Fees 922,144 1,850,704 3,814,786 2,540,179 2,761,590 Future Capital Improvements (1) 723,400 656,300 806,300 Available Working Capital 4,502,244 91,886 5,212,057 902,001 105,094 (1) Includes Water Conservation revenue dedicated to future water plant expansions. 43 Significant Issues/Comments: 4 Water supply is provided through agreements with the Brazos River Authority (BRA). BRA expenses will increase 15% over the prior year for an increase in raw water cost, as well as principal and interest payments and operational cost for the Williamson County Raw Water Line, which became operational in 2003. Future raw water increases are projected at 15% per year. 4 Service Improvement Fees are reserved to fund future payments on debt issued for infrastructure related to development, as well as, capital improvements. 4 Capital projects are funded through operating revenues, service improvement fees, impact fees and debt when necessary. 4 The City will begin year 5 of an 8 year program to test all wastewater lines for inflow and infiltrations as required by the Texas Commission on Environmental Quality (TCEQ) for environmental safety of the Edwards Aquifer. 98% of the city is located over the Aquifer, therefore 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. Fiscal Year 2006/07 Revenues Water Services 34% SIP & CR Fees 6% Fund Balance 31% Interest & Other 7% Irrigation Services 1% Wastewater Services 21% Expenses Capital Projects 40% Debt Payments 11% Transfers 6% Operating 43% 44 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: 4 The Airport was awarded a Federal Tower Grant for airport improvements from the Aviation Division of the Texas Department of Transportation in 2006 The tower is expected to be completed by June 2007. The City will also be eligible for the Federal Aviation Administration’s tower maintenance program, which will fund the cost to staff the tower. The City will pay utility and building maintenance costs. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 432,569 587,061 541,274 547,111 654,064 REVENUES: Fuel & Terminal Sales 1,901,717 1,669,549 2,010,000 1,840,000 1,982,000 Leases & Rents 434,513 440,880 440,880 440,880 440,880 Interest 13,024 8,000 25,000 15,000 19,000 Grant 134,358 1,365,857 1,365,642 Bond Proceeds 250,000 Bond Reimbursement 250,000 250,000 (250,000) All Other Revenue 79,671 48,180 69,780 63,780 63,780 Transfers In 562 562 Total Revenues 2,563,283 3,783,028 4,161,864 2,359,660 2,505,660 EXPENSES: Management Services 1,999,523 1,839,700 2,152,096 2,057,632 2,176,990 Capital Projects 257,930 1,785,175 1,815,056 Debt Payments 197,125 188,875 188,875 195,075 218,905 Total Expenses 2,454,578 3,813,750 4,156,027 2,252,707 2,395,895 Ending Working Capital 541,274 556,339 547,111 654,064 763,829 RESERVATIONS: Contingency 150,000 150,000 150,000 150,000 150,000 Future Capital Improvements 302,633 406,339 397,111 504,064 606,829 Available Working Capital 88,641 0 0 0 7,000 45 Sanitation Fund 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 Staff is conducting community focus groups to ensure services provided in the City’s sanitation contract reflect the needs and expectations of the community. 4 Sanitation rates are being reviewed and are expected to increase to reflect the increasing cost of service. 4 The City received a Capital Area Council of Governments (CAPCOG) grant for improvements to the City’s collection station in 2005/06. These grant funds will be expended in 2006/07 on road improvements and new equipment purchases that will expand recycling opportunities with the City. 4 Debt planned for issuance in 2005/06 to fund maintenance at the City’s old, closed landfill, will be rolled into 2006/07. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 30,207 26,212 19,600 32,851 11,762 REVENUES: Sanitation Services 3,150,493 3,295,300 3,635,002 4,000,000 4,200,000 All Other Revenue 76,775 75,000 75,000 129,556 132,946 Bond Proceeds 575,000 Total Revenues 3,227,268 3,370,300 4,285,002 4,129,556 4,332,946 EXPENSES: Finance & Administration 2,947,137 3,078,051 3,364,951 Georgetown Utility Systems 3,791,693 3,886,155 Hazardous Waste Clean-up 34,556 37,000 587,000 37,000 37,000 Debt Payments 25,000 45,000 Transfers Out 256,182 267,200 294,800 321,952 336,000 Total Expenses 3,237,875 3,382,251 4,271,751 4,150,645 4,304,155 Available Working Capital 19,600 14,261 32,851 11,762 40,553 Available Fund Balance 19,600 14,261 32,851 11,762 40,553 46 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: 4 Stormwater rates are $4.25 per unit cost which provides operational and capital costs for drainage maintenance and improvements. 4 City engineers have prepared a complete Regional Stormwater Drainage Master Plan (RSMP), which outlines future capital improvements that are needed to improve drainage in the City. 4 Operating costs continue to increase due to the increase in the number of detention ponds within the city. 05/06 06/07 07/08 04/05 05/06 PROJECTED ADOPTED ESTIMATED ACTUAL BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 219,282 675,440 696,068 279,496 234,155 REVENUES: Stormwater Fees 1,551,824 1,599,890 1,678,600 1,741,600 1,799,200 Bond Proceeds 650,000 Interest 449,319 2,300 26,500 2,300 2,300 All Other Revenue 21,031 21,000 21,000 21,000 21,000 Total Revenues 2,022,174 1,623,190 1,726,100 1,764,900 2,472,500 EXPENSES: Georgetown Utility Systems 834,118 895,075 890,347 968,826 974,865 Capital Projects 325,540 807,000 857,000 440,000 979,000 Debt Payments 266,361 258,925 258,925 260,315 320,544 Transfers Out 119,369 129,700 136,400 141,100 145,700 Total Expenses 1,545,388 2,090,700 2,142,672 1,810,241 2,420,109 Ending Working Capital 696,068 207,930 279,496 234,155 286,546 RESERVATIONS: Contingency 150,000 150,000 150,000 150,000 150,000 Available Working Capital 546,068 57,930 129,496 84,155 136,546 47 General Capital Projects Funds - Summary 2006/07 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 and Parks Capital Projects Funds: 4 Includes funds for the implementation of the City’s facilities construction plan. The 2006/07 plan includes $2 million to remodel the Williamson County Appraisal District building into the City’s technology center, as well as, design for renovation of the old Library, start-up costs at new facilities (Library, Community Center, Fire Station) and $1.2 million for park and downtown improvements. The City will also relocate its electric operation into a new facility estimated at $1.7 million. Streets Capital Projects Fund: 4 Includes revenues from the various transportation fees received by the City through development agreements. Projects to be constructed with existing funding sources are included in the City’s five- year capital improvement program. Special Improvement Program fees will fund a traffic signal at Whispering Wind and Del Webb Blvd. Public Safety Capital Projects Fund: 4 Includes funds for the public safety vehicle replacement program. FACILITIES & STREETS GENERAL PARKS PUBLIC SAFETY CAPITAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS TOTAL Beginning Fund Balance 2,202,954 137,662 874,468 3,215,084 REVENUES: Interest 103,400 2,000 105,400 Bond Proceeds 3,840,887 2,006,700 5,847,587 Future Funding Source (62,630) Service Improvement Fees 16,800 16,800 Transfer In 2,361,500 13,000 2,374,500 Total Revenues 6,243,157 2,019,700 18,800 8,344,287 EXPENDITURES: Debt Issuance Costs 152,357 73,500 225,857 Capital Projects 8,214,400 826,068 9,040,468 Transfers Out 1,946,200 1,946,200 Total Expenditures 8,366,757 2,019,700 826,068 11,212,525 Ending Fund Balance 79,354 137,662 67,200 284,216 Service Improvement Reservation 67,200 67,200 Available Fund Balance 79,354 137,662 0 217,016 48 Special Revenue Funds – Summary 2006/07 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: • G r a n t s • Donations • Hotel Occupancy Tax (HOT) • Police seizures • Parkland dedication fees • Street Maintenance Sales Tax Significant Issues/Comments: 4 These funds vary significantly with the level of donation and grant activity for each year. 4 The ¼ cent Street Maintenance Sales Tax was approved by voters in November 2002. Funds may only be spent on existing city streets. The tax sunsets in March 2007 unless reauthorized by voters in November 2006. Projects for 2007 are included in the Capital Improvement Project section of this document. BEGINNING ENDING FUND FUND FUND DIVISION/SECTION BALANCE REVENUES EXPENDITURES BALANCE Animal Services Fund Police Services 32,847 25,400 58,247 0 Abandoned Vehicle Fund Police Services 05 , 0 0 0 5 , 0 0 0 Cemetery Fund Community Services 31,705 60,049 91,754 0 Court Fee Fund Finance & Administration 63,364 47,500 110,864 0 Downtown TIF Management Services 18,429 31,000 0 49,429 Fire Billing for Service Fire Services 95,262 127,500 222,762 0 Library Donations Community Services 31,336 296,200 327,536 0 Main Street Facade Fund Community Services 22,556 15,600 38,156 0 Mapping Fund Community Development 24,275 44,888 69,163 0 Parks Restricted Community Services 96,519 86,300 182,819 0 Police Restricted Police Services 20,723 2,000 22,723 0 Street Maintenance Tax Georgetown Utility Systems 1,238,603 1,634,000 2,820,000 52,603 Tourism Fund Community Services 146,744 436,355 393,518 189,581 Wolf Ranch TIF Management Services 0 47,570 47,570 0 Total Special Revenue Funds 1,822,363 2,859,362 4,390,112 291,613 49 Internal Service Funds – Summary 2006/07 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 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 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 and Properties provide support to all City funds and departments. FACILITIES FLEET INFORMATION JOINT INTERNAL MAINTENANCE MANAGEMENT SERVICES SERVICES SERVICES FUND FUND FUND FUND FUND TOTAL Beginning Working Capital 51,803 341,511 18,994 56,682 468,990 REVENUES: Charges for Services 1,112,891 1,334,843 1,501,190 6,287,799 10,236,723 Interest & Other 7,000 23,000 17,500 63,800 111,300 Sale of Property 20,000 20,000 Interfund Transfers 104,200 2,136,300 65,653 322,500 2,628,653 Total Revenues 1,224,091 3,514,143 1,584,343 6,674,099 12,996,676 EXPENSES: Georgetown Utility Systems 1,620,420 1,620,420 Finance & Administration 1,245,504 3,535,823 2,764,112 7,545,439 Management Services 1,573,857 2,310,863 3,884,720 Interfund Transfers 28,200 27,396 5,352 60,948 Total Expenses 1,273,704 3,535,823 1,601,253 6,700,747 13,111,527 Ending Working Capital 2,190 319,831 2,084 30,034 354,139