Loading...
00 Full Budget DocumentAnnual Budget 2014 - 2015 City of Georgetown, Texas ...“Red Poppy Capital of Texas” 11 October 1, 2014 To the Honorable Mayor Ross, Members of the City Council and Citizens of Georgetown: We are pleased to present to you the City of Georgetown Annual Budget for 2014/15. The Annual Budget is the outline of the programs and services to be provided to our citizens during the upcoming year. It also lays the groundwork for future growth and development through the planning of capital improvements and new service level expansions. The annual budget process is the one year foundation for enhancing the City’s vision for the future, as outlined within the Georgetown 2030 Plan. The City Council has defined that vision and goal as the City of Excellence. The City of Excellence The 2014/15 Annual Budget is the next step in the City’s goal in becoming the City of Excellence and continues the groundwork that began in 2012. The business planning process undertaken by staff and City Council began moving the City forward to a five year outlook for prosperity and success. In developing a five-year financial model and business plans, City Council and staff focus on capitalizing on the positive momentum in the local and state economy, while leveraging the City’s financial and staff resources to meet its longer term vision. The City of Excellence is the City’s target for meeting the needs and expectations of our citizens. Council defined this vision by identifying five focus areas in September 2012 to guide both the annual budget and long term planning process. The adopted 2014/15 Annual Budget continues significant efforts toward meeting this bold vision, and addressing the Council’s Five Focus Areas – Economic Development, Public Safety, Signature Destination and Transportation and Utilities. This vision for Georgetown was affirmed when the national real estate website Movoto.com which named Georgetown the No. 3 best suburban city in the United States in the fall of 2013. The site specifically mentioned the City’s low cost of living and safe community environment. The major highlights for this year’s budget include:  Tax rate – adopted tax rate of $0.4340 – over ½ cent below 2013 rate of $0.4395.  Utility rates – no proposed increases in Electric, Stormwater Drainage, Water or Wastewater.  Proposed General Fund budget is $51.7 million, a 4.0% increase over 2013/14.  Nine new fire fighters and two transitional response vehicles (TRV’s) to provide a Fire-based Paramedic Program. This proposed program is paid from fees and will not impact the General Fund in the 2014/15 budget.  Three new officers in Police to establish a new Crime Deployment Unit to rapidly respond to crime issues as they are identified.  Completion and operations of the new Public Safety Operations and Training Complex (PSOTC), that is scheduled to open in January 2015. 12  Investment of $7.9 million in new Downtown, Sidewalk, Parks and City Facility Capital Projects: o Downtown parking will be addressed including a new paved lot at the corner of 8th & MLK, across from the Georgetown Library, and $400,000 to study options for design of a downtown parking garage. o Downtown Master Plan implementation includes Downtown West Phase I, including Municipal Court, for $1.7 million. o Significant efforts in Parks to upgrade VFW Park, construct a Splash Pad in the southeast part of Georgetown, renovate Williams Drive pool, start design on the next phase of the River Trails, and several other upgrades at various City parks. o Sidewalks will be constructed on 2nd Street and 11th Street.  Infrastructure investment of $22.9 million in Utilities and $12.1 million in Transportation, including the final $4.3 million needed to fund the construction of improvements to FM 1460, expected to begin in February 2015 with a 2 year construction time.  Continued efforts to maintain competitive, low electric rates for the City’s customers, with power supplies that include both wind and solar energy.  Add 2 positions in Conservation to implement the water conservation programs needed to make best use of the City’s long term water supplies.  Maintain the City’s employee Compensation Plan by including both merit increase funds at 2% of salaries and cost-of-living increases (COLA) of 2.5% in 2014/15; o Funding for the cost-of-living portion is covered by a 0.75% across-the-board reduction in all city departments. o Civil Service staff in Fire and Police will receive scheduled steps, plus an additional one percent COLA and increases in starting pay.  Supports a City-wide professional Leadership Development training program focused on service delivery for a City of Excellence.  The expansion of City’s water services, as well as, management of growth in rapidly expanding areas to the City’s west and north with the September 12, 2014 Chisholm Trail Special Utility District acquisition and merger. The proposed 2014/15 Annual Budget includes additional programs needed to achieve and support the goals within the Five Focus Areas including:  Complete the redesign the City’s website and expand the new internal Intranet site; and  Continue the City’s self-insurance program, implemented last year, to better manage the quality and cost of employee health insurance, with no employee rate increases in 2014/15. 2013/14 Year in Review The Texas economy has continued to fare even better than most of the nation and Georgetown is no exception. After a few years of cautious growth and a lean outlook, strong and steady growth took hold in the Georgetown economy during late 2012/13. The 2013/14 Annual Budget included noticeable service level increases and conservative revenue projections while still enabling the City to meet its growing demands. In May 2014, the US Census Bureau named Georgetown the 7th fastest growing city in the country. Georgetown continues to experience positive increases in sales tax revenues and development related fees that reflect the continued economic growth. Sales tax revenues for 2013/14 are expected to end the year 12% higher than the previous year, which compounds the 13% year over year increase from the year before. Development related revenues increased by over 66% from the prior year. The City issued 1,252 residential permits in 2013/14 compared to 932 in the prior year. Of those new permits, 701 were inside the City limits with an estimated value of $173 million. The City’s total General Fund revenue for 2013/14 is expected to be 4.8% higher than budgeted. New housing developments outside the City continued to expand with the City’s adoption of a new Municipal Utility District (MUD) policy to ensure controlled growth that benefits the entire community. Within the City limits, the new 750 acre Hillwood community and a new expansion to Sun City were approved in July 2014. 13 The significant housing growth throughout the community was matched with commercial and retail growth. New health care facilities, such as assisted living centers, were completed near Sun City. Two new behavioral hospitals, Rock Springs Hospital and Georgetown Behavior Health Institute, were completed during the year and will add about $35 million to the City’s tax roll. Texas Life Sciences Collaboration Center (TLCC) completed their second building with plans for a 3rd one in the coming year. Radiation Detection Company, a biomedical firm, announced a new 15,000 square foot headquarters in Georgetown. The agreements for the Sheraton Hotel Conference Center and high-end luxury apartments at the Summit at Rivery Park were approved by Council in January 2014. The Georgetown South Tax Increment Reinvestment Zone (TIRZ) was created in the summer of 2014, with water, wastewater and road improvements soon to follow on the 603 acre site on south IH-35. This development is significant because it opens the next phase of retail and commercial development that is adjacent to the new Bass Pro Shop site at the Round Rock Outlet Mall. Pecan Branch Center, a new 900,000 sq ft retail development to be located at Lakeway and IH-35, received its first approvals in September 2014. New development continues in the downtown area with the opening of many small shops and cafes that further enhance the City’s historic old-town district. As development activity increased, the City continued efforts to meet those future needs. In August 2013 the City broke ground on its $29.5 million Public Safety Operations Training Center (PSOTC) located adjacent to the new Fire Station 5. The new facility will be opened in January 2015. Fire Services were expanded in 2013/14 with 3 new Fire & Life Safety Inspectors and an Emergency Management Coordinator added during the year. Major steps in the City’s Parks Master Plan were accomplished with completion of new Creative Playscape in July 2014 and the next section of the San Gabriel River Trails system in October 2014. Park expansions and improvements also included the McMaster Athletic Complex, River Ridge Pool, San Jose Park and Chautauqua Park. Business planning and preliminary design are underway for the 90 acre Westside Park, purchased in March 2013, and Garey Park, with final land donations completed in December 2013. Many transportation projects were completed, including $2 million of major sidewalk projects. The City completed the purchase of the right of way for the expansion of FM 1460 to Round Rock in partnership with the Texas Department of Transportation (TXDOT). The design and construction bidding for the road were completed and ready for construction to begin in early 2015. In addition, the City Council established a Citizen Road Bond Committee to review the City’s transportation needs and develop a potential Road and Sidewalk Bond package to possibly take to City voters in May 2015 to address long-term traffic issues within the Community. During 2012, the City was approached by the Chisholm Trail Special Utility District (CTSUD) about the possibility of merging with the City’s water system. The CTSUD provides water service to several areas within the City and the City’s extra territorial jurisdiction (ETJ), as well as a large portion of Western Williamson and Southern Bell Counties. In September 2014, the City defeased almost $14M in the District’s debt, thus allowing the consolidation of District assets by the City. With consolidation, the City added 7,500 new water customers and over 375 sq miles of new service territory. This consolidation will provide for regional water planning to ensure the adequate resource management and allow for future growth within the region. The City of Georgetown had historically purchased 90% of its wholesale power from the Lower Colorado River Authority (LCRA) through a Wholesale Power Agreement (WPA) that was set to expire in 2016. Georgetown had opted not to renew that agreement and had contracted for new sources of 2016 and beyond. Due to on-going contractual issues, the City of Georgetown terminated its LCRA agreement in September 2012. The result has been significantly lower purchased power costs with much of those savings being passed on to the City’s customers. The lawsuit relating to the early termination of wholesale agreement was settled in May 2014 solidifying the City’s ability to manage its future power supply. The City has been able to solidify power sources and has secured power contracts that not only provide stable, low cost power to our customers, but also focuses on renewable energy sources such as wind and most recently solar. The City is in the final stages of developing a long-term solar contract that will stabilize rates for the next 20 years. 14 The historic downtown continues to serve as a focal point for the community, as new and expanded business make the downtown square their home. The City’s Main Street Program celebrated its 30th anniversary last year in recognition of the City’s continued commitment to the historic preservation of the “Most Beautiful Town Square in Texas.” The renovation of the old historic fire station to house a community arts center and splash pad were completed in October 2013. The City’s added focus on arts and culture was recognized in September 2013, when the Texas Commission on the Arts designated the downtown area as a cultural district, one of just 24 in the state. The City again took advantage of revenues in excess of budget and reduced planned new Certificate of Obligation debt by $1.6 million in 2013/14. The former Albertson’s building, purchased in 2008, was sold creating additional financial capacity for planned city facility needs. The City completed its implementation of the 2013 Compensation Plan and enacted merit increases for the first time in many years. Other significant internal improvements include the implementation of the first phase of an Enterprise Asset Management system, with Water Services going live in October 2014. Electric system management will go live in early 2015. The 2014/15 Budget Process The 2014/15 Annual Budget confirms the direction of the Council-defined vision of the City of Excellence and the five focus areas for achieving the desired vision. That focus was used to further define near term goals at the February 2014 Council Retreat. All of this input was used to kick off the annual capital improvement planning updates and review of the City’s master plans. The City Council’s priorities and the survey results were affirmed in April 2014. From this direction, service improvements, new projects and base budgets were developed. The 5- year General Fund financial plan was updated to include the costs for all projects that are needed to address community growth, maintaining existing programs and infrastructure and the five focus areas. All of those efforts came together in the proposed 2014/15 Annual Budget to support the elements that are critical to the implementation of the City of Excellence. 2014/15 Budget Overview The $231.1 million 2014/15 Annual Budget capitalizes on the expanding local economy and the successful efforts of many of the 2013/14 goals and projects. This budget addresses Council’s 2014/15 Strategic Goals, detailed in the City Summary section of this document, as well as the needs of a rapidly growing community. Many new programs and expansions are included in 2014/15 Annual Budget. The total reflects a slight overall decrease over the amended 2013/14 budget due to the timing of capital projects. • Major revenues continue to be strong due to the continued growth of the local economy. This revenue growth has allowed the funding of major programs with only minimal tax impacts for 2014/15. • Funds for downtown improvements, parks and public safety initiatives are included as well as funding for merit increases and cost of living adjustments as outlined in the compensation portion of the Fiscal & Budgetary policy. • Overall capital project spending will drop slightly in 2014/15 due to project timing; however, infrastructure and facility needs will continue to be met. 15 • All fiscal and budgetary compliance requirements including (1) on-going expenses are being funded only with on-going revenues, and (2) contingency reserve requirements are met. • The Chisholm Trail Special Utility District purchase was completed on September 12, 2014, after the final adoption of the budget and is not currently reflected in this budget. The estimated $5.5 million in operating costs for the 7,500 customer district will be fully supported by revenues from those customers. The budget will be amended in January 2015 to reflect this major accomplishment. The significant variances by division are summarized in the following section. All division budgets are impacted by employee salary and benefit increases including an expected 10% increase in employee health insurance costs. An overview of personnel and compensation is summarized in a later section. During the downturn, most operating costs remained relatively stable or declined due to budget tightening measures. In 2014/15, overall increases due to growth (19.6% population increase since 2008) and escalating costs are beginning to impact departments city-wide including fuel prices, janitorial services and supplies. Year to Year Division Review 13/14 Amended Budget 14/15 Adopted Budget Variance Over Prior Year Downtown & Community Services 10,708,585 14,902,190 39.16% Finance & Administration 16,186,549 14,340,345 -11.41% Fire Services 9,716,713 11,847,155 21.93% Georgetown Utility Systems (GUS)44,776,119 47,069,849 5.12% Purchased Power (GUS)36,768,008 37,073,038 0.83% Management Services 8,009,134 9,093,230 13.54% Police Services 11,927,558 13,403,311 12.37% Transportation 9,772,558 9,735,567 -0.38% Capital Improvements 55,190,923 40,443,900 -26.72% Debt Payments 19,128,461 20,410,401 6.70% Interfund Charges & Transfers 13,123,186 12,805,301 -2.42% TOTAL BUDGET 235,307,794$ 231,124,287$ -1.8% 16 • Downtown & Community Services – This division includes Parks & Recreation, CVB, Downtown, Public Communications, Housing and Historic Preservation, and Facilities Maintenance functions. Much of the 39.16% increase is due to the shifting of the $2.9 million Facilities Maintenance department and Internal Service Fund to this division beginning in 2014/15. This transition was made to capitalize on combining efforts of the Parks Maintenance with the Facilities Maintenance departments. The existing departments saw a 12.3% increase to continue efforts in meeting Council goals for its Signature Destination focus area and growth. Significant changes include: (1) the addition of a full time marketing/media specialist ($42,105) to coordinate with all City departments and market Georgetown as the City of Excellence; (2) HOME grant matching funds ($24,000) and the Historic Resource Survey Update ($50,000); and (3) CVB will add staff late in the year in preparation for the new Rivery/Sheraton Conference Center and to expand its research and marketing campaigns ($69,400) all from Hotel Occupancy Tax (HOT) tax revenues. Parks and Recreation will continue to increase its repair and rehabilitation efforts ($150,000) to make sure the City’s investment in existing parks are well maintained; as well as conduct ADA assessments and playground audits to further identify maintenance needs ($52,150); and add three full-time and two part-time staff for trail maintenance and aquatics, as those programs expand with the addition of Sunday operations at the Recreation Center. The Facilities Maintenance department added a building technician late in 2014 to provide maintenance support for the new PSOTC scheduled to open January 2015. The full year of that position salary and benefits, plus 9 months of janitorial and other support for the new 76,000 square foot facility adds an additional total of $333,000 to that department in 2014/15. • Finance & Administration – The budget for this division decreased due to the transfer of the $2.9 million Facility Maintenance function discussed above. The remaining departments increased 4.22% primarily due additional city-wide building maintenance and technology support costs. The division will add two new FTE’s within Information Technology, a Systems Administrator and a Desktop Technician, to provide support to the expanding technology needs for City departments and new systems being developed and implemented in GUS, Customer Care and Fleet. The IT budget also includes $230,000 for public safety emergency communications software that will significantly improve dispatch and response times for fire related emergency calls. • Fire Services - The budget for Fire Services increased 21.93%. The 2014/15 budget includes $1.4 million to implement the fire-based paramedic program as prioritized within Council’s strategic goals. The program includes adding nine paramedic trained fire fighters, two TRV’s, a contract medical director, an electronic patient data management software system (ePCR) required to maintain proper on-site patient care and meet HIPAA requirements, and related training, supplies and equipment. Based on current business plan projections, all of these incremental program costs will be covered by transport fee revenues within four years; therefore, there is no current General Fund impact. The new budget also reflects a full year of compensation for the Emergency Management Coordinator position and Life and Safety Inspectors that were budgeted to start late in the 2013/14 fiscal year. 17 • Georgetown Utility Systems (GUS) – Utility operations increased 5.12% over the prior year. The addition of CTSUD operations is not included in this comparison. This budget continues to increase as a result of continued across-the-board additions of 400 to 600 new utility customers each year. The division will add 10 new positions to meet customer growth and changing industry demands. Energy Services includes the addition of four additional technical and project management staff and support costs ($475,000) to operate the expanding power supply and customer demands of the system. Conservation Services includes two new positions, a Landscape Inspector and Conservation Program Analyst, along with additional water conservation education programs and drought research for a total of $345,000 to implement the City’s new water conservation measures. A Building Plans Examiner is added in the Inspections department to keep up the increased number of residential and commercial building permits. Water Operations will add a two- person crew and related equipment for $231,000 to meet customer and system growth in water. Finally, an office specialist dedicated to records management in GUS is also included. • Purchased Power – This reflects the actual cost of electricity the city purchases and resells to its customers. The increase reflects the expected increase in sales from customer growth. In FY 2013/14, the City expects 560,000 mWhs in power sales and projects that to grow to 581,000 mWhs in FY 2014/15. Actual sales can be highly variable due to weather conditions. • Management Services – The merit and cost-of-living increases that are part of the City’s adopted compensation program are in this division’s budget. Most of the 13.54% increase is a result of the $274,000 required to fund that program for all General Fund departments. These funds will be transferred to the appropriate departments during the year under the compensation plan guidelines. The Planning department includes one new full time planner to focus on Council’s priority to improve the UDC process as well as accommodate increased growth and development projects. A part-time position is converted to full-time in Economic Development to provide a full-time Business Development Manager to focus on specific Council priorities in that area, including retaining and assisting existing businesses within the community. An administrative assistant position is added to assist with records management. • Police Services – Police increased 12.37% primarily due to two major additions in 2014/15. Three officers, along with related training, equipment and supplies, totaling $331,246, are added to implement a Crime Deployment Unit to specifically address one of Council’s top public safety strategic goals. The operating budget increased by $484,000 for utilities, janitorial, maintenance and related on-going and start-up expenses for the opening of the new 76,000 square foot PSOTC scheduled to be completed in January 2015. • Transportation – This division has a slight decrease of 0.38% due to the completion of the sidewalk study and a grant funded sidewalk project in 2013/14. (1) Transportation & Streets. These departments include $80,000 to support the road bond package scheduled to be presented to Council in January 2015 and to voters in May 2015; an additional $117,000 for the next phase of the Capital Metro partnership for on demand transit services; and $274,000 for new equipment in Streets; (2) Stormwater Drainage. Additional operating expenses and heavy equipment for a total of $91,700 are added to meet increasing federal requirements of the MS4 permit; (3) Airport. Changes in operating conditions in recent years have caused the financial condition of the Airport as a self-sustaining enterprise to decline. While the proposed budget assumes a restructuring of existing positions, new operating guidelines and noticeable increases in hangar and tie down fees, significant additional operational changes will be required to make this a self-sustaining operation. Capital projects for the Airport will be debt funded and supported by property tax revenues in future years. A 18 separate business plan proposal has been developed with changes expected during the year. The Airport fund is expected to require a temporary subsidy for its operations beginning in 2014/15. • Capital Improvements – Capital Improvements can fluctuate year to year due to the timing of large projects. The 26.72% decrease in capital improvements is due to the completion of several large utility projects, as well as substantial completion of the PSOTC. The 2014/15 projects are summarized in a later section. • Debt Payments – The 6.7% increase is a direct result of voter approved General Obligation bonds issued in 2013/14. The $22 million total debt issue included the final $17 million for the PSOTC and $5 million of Parks bonds. • Interfund Charges – These amounts vary from year to year due to project funding and source of funds. Staffing Overview There are 34 new or upgraded positions proposed to be added for fiscal year 2014/15. These positions include nine paramedic trained firefighters in Fire Services and four full time and one part-time position in Police Services for a new Crime Deployment Unit, Code Enforcement, and volunteer coordinator. Ten new positions in GUS have been added to accommodate system growth and changing industry demands in Energy and Water Services, expansion of the City’s conservation programs and increased permit applications. Finance and Administration has added two new support staff positions to support expanding needs and new systems added in IT. In Management Services, one half-time position is upgraded to full-time in Economic Development, one Planner has been added to support growth in the City, and one records management administrative assistant in the City Secretary’s department. Downtown and Community Services proposes to add five full-time and two part-time positions to support expanding programs, including Sunday operations at the Recreation Center, and a marketing coordinator for the new Conference Center. All of these positions have been added to meet the service needs of the City and five Focus Areas established by the City Council. During the recession, 17 positions were frozen and then eliminated by 2012/13. Despite declining or flat revenues during the recession, population and customer growth slowed, but continued throughout those years. The growing economy and commensurate growth in customer base has pushed the need to begin to rebuild the full-time equivalent (FTE) count to meet the City’s growth and Council direction. While 2013/14 and 2014/15 showed a rebuilding of that staff base required to meet those needs, the FTE’s per capita continues to be well below pre- recession levels. This reflects the City’s continued commitment to providing lean, effective services. Employee compensation and benefits make up a substantial amount of the City’s budget. A 10% increase is budgeted for employee health insurance resulting from the Affordable Care Act and industry wide increases. The City-wide cost of this increase is $365,691 in 2014/15 with $216,164 of that cost borne by the General Fund. This budget also continues funding of the City’s retirement plan. Due to TMRS’s change to a more conservative valuation method, the City’s funded pension liability dropped from 86.7% to 81.3%. To reduce the City’s unfunded liability in future years, the budget includes retirement funding at 12.0% of salaries, in lieu of the 11.83% required by TMRS. The additional $42,446 in funds will be set aside for a lump sum contribution to be made at the end of calendar year 2014 to begin to increase the City’s funded pension liability. The final components of the 2012 Compensation and Market Salary review were implemented in 2013/14. The 2014/15 budget reflects the merit increases and biennial cost of living adjustments to maintain the compensation program and prevent the significant pay program adjustments that had to be implemented in the prior two years. Merit funds of 2% of salaries and cost of living funds of 2.5% for civilian staff are included. For Fire and Police, 19 starting pay will be increased, along related step classification system adjustments, plus a 1% cost of living adjustment is included. The 2014/15 budget includes an additional $990,430 to maintain public safety steps, merit increases and cost of living adjustments. All operating departments took a 0.75% reduction of personnel and operating budget in order to fund the cost of living increases, displaying another example of the City’s efforts to continue cost effective service delivery. Employee merit and cost of living adjustments will be implemented in February 2015. Revenue Overview The City’s economic conditions have resulted in significant revenue growth. The population growth and strong economy development efforts have resulted in significant increases in tax revenues, development related fees and utilities revenues in 2013/14 and are expected to continue into 2014/15. A noticeable portion of the residential growth is occurring outside the City’s corporate limits; however, that growth is expected to continue to attract major retailers and commercial development within the City. While the City, region and state continue to experience significant growth, revenue projections remain conservative as worldwide economic and political issues continue to loom as potential limiting factors. City Council adopted a property tax rate to fund the next year of the City of Excellence Vision. The adoption of a property tax rate of $0.4340 per $100 of valuation for 2014/15 is a $0.0055 cent decrease over the prior year’s rate of $0.4395. This represents a 2.49% increase over the City’s effective tax rate of $0.423440. The Effective Rate is the rate needed to collect the same amount of revenue as collected in the previous year based on the current year’s assessed valuation. This adopted rate funds approximately 22.42% of General Fund operations; in the prior year the property tax rate funded 20% of operations. Georgetown remains among the lowest property tax rates in the area. The 2014 assessed property valuation totals $5.3 billion, of which $163.1 million is new or annexed property. The 2014 assessed valuation is 11.9% higher than the 2013 ending valuation of $4.7 billion. The 2014 total includes $209 million of property still under Arbitration Review Board (ARB) review. Existing property value increased 7.4%. The 2014 average taxable home value in Georgetown was $210,184, which is a 10.1% increase over the 2013 average taxable value of $190,802. The tax impact to the average existing homeowner is an increase of $50.79 annually, or $4.24 per month. “Frozen” property value also increased from $1.432 Billion in 2013 to $1.662 Billion in 2014, a 16.01% increase from previous year. “Frozen” property are those properties whose property tax revenue is capped due to exemptions for over age 65 and disabled taxpayers. Currently, 31.6% of all assessed value in Georgetown is now frozen, up from 30.7% in 2013. The impact of frozen valuation will continue to be a factor in managing the City’s property tax rate for the foreseeable future. The adopted 2014 rate of $0.4340 includes $0.20738 for operations and maintenance which is less than the $0.21597 rate in 2013. The debt portion of the adopted rate includes $0.22662 for Interest and Sinking (I&S) that funds debt payments on outstanding tax supported bonds. This I&S rate is substantially unchanged from last year’s I&S rate of $0.22353. The City issued $2.3M in new Certificate of Obligation (CO) debt and $4.8M in new General Obligation (GO) debt in 2014. 20 The 2014/15 Annual Budget includes a 5% overall increase in total sales tax, compared to projected collections for 2013/14, as compared to an expected 12% increase over 2012/13. The increase represents $669,000 of additional revenue in 2014/15. With no significant new retail or commercial sales tax generators expected in 2014/15, the growth projections remain conservative. Sales Tax revenue funds 24% of the General Fund budget. Due to the volatility of this revenue stream, the City monitors this revenue source carefully and has several contingency options available if revenues are significantly less than projected. In addition, the City maintains 90+ days of contingency reserve funding within the General Fund to offset any potential revenue shortfall. No water or electric rate increases or adjustments are proposed for 2014/15. During 2013/14, the City restructured its water and electric rates to meet both competitive needs in the power industry and to promote conservation efforts in both water and electric. These changes resulted in little impact to customer bills, but left the City in a much more pro-active and competitive position for both utilities. Once again, no sewer rate changes are proposed. The residential sewer rate approved in 2007 of $29.50 has not been increased since it was adopted. The flat rate sewer program was implemented in 2007 and recognizes fixed cost and a standard variable component. System growth has been funded through customer growth within the system. There is no sewer rate increase planned until the next major plant expansion substantially increases the fixed cost associated with the system. No stormwater drainage rate increases are proposed for 2014/15. Small increases and more up-to-date commercial and residential calculations for impervious cover have been implemented in the previous two years. Expanding requirements of the federal MS4 permit are expected to require future increases. Garbage rates were adjusted just slightly, by $0.50 per month for residential customers. This increase was made to pass through a CPI increase from its provider, Texas Disposal Systems. 21 Capital Projects Capital improvements account for 17.5% of the City’s 2014/15 budget. The major projects, by type are summarized below. General Capital Projects General capital projects are those that are funded through the general tax base, versus utility capital projects, which are funded through utility rates. The following projects are included as general capital projects for 2014/15: • Downtown Improvements:  $1.3 million to implement Downtown West Phase I of the Downtown Master Plan to begin design and renovation of City facilities in that area.  $741,000 for ADA sidewalks, improvements of the Downtown corridor, underground electric and master plan updates  $750,000 for parking facility study/design and the MLK & 8th parking lot that began in late 2013/14. • Sidewalk improvements:  $250,000 for the 11th Street sidewalk  $250,000 for the 2nd Street sidewalk • City facility improvements:  $1 million for Emergency Warning System, expected to be 75% grant funded  $750,000 for expansion to the $4 million Westside Service Center already underway and paid through water and electric revenues • Parks Improvements:  $1.3 million for construction of improvements to VFW Park  $850,000 to renovate Williams Drive pool  $300,000 for a splash pad to be located in the City’s southeast quadrant  $432,000 for improvements and design work at Founder’s Park, Village Park, Blue Hole and Emerald Springs Utility Capital Projects The City will fund $35.4 million for utility and infrastructure improvements in 2014/15. The majority of these projects are a part of the City’s on-going capital expansion and upgrades to ensure quality services to the citizens as determined by the Utility Master Plans. Electric – $10.2 million in improvements to the system and purchases of transformers are planned for 2014/15 Water – Water mains improvements include $1.7 million for design and easement acquisition for the Shell Road water line; and $247,000 for rehabilitation projects to be completed in conjunction with street and sidewalk work on 2nd Street, W. 10th Street and 11th Street. Water pumping and storage improvements include $1.7 million for the design and construction of the Rabbit Hill elevated storage tank that will serve the South Georgetown Tax Increment Reinvestment Zone (TIRZ), a major economic development project along the IH-35 corridor. Wastewater - Edwards Aquifer Recharge Zone (EARZ) improvements of $2.5 million will be continued in 2014/15, along with the construction of the $1.0 million Snead Drive wastewater line and the $2.0 million Berry Creek interceptor to expand capacity and services in those areas. A $3.0 million major lift station and force main will be added at Westinghouse Road as part of the Georgetown South TIRZ project along with $402,000 of other lift station upgrades and improvements in the City. No major plant expansions are included in 2014/15, but work may start as early as 2015/16 depending on growth. Stormwater Drainage – The biggest project in this area for 2014/15 will be the property buy outs in the Smith Branch watershed, at an estimated cost of $2.2 million. Infrastructure improvements and annual curb and replacements are budgeted at $400,000. A regional flood study for $400,000 is planned for 2014/15, which up to 50% of that project being grant funded. 22 Street Improvements and Maintenance 2014/15 Street Maintenance / Rehabilitation Projects - $2,995,000 West 2nd Street • Austin to College Street West 10th Street  Austin Ave. to Church Street West 11th Street  Main Street to Rock Street Stadium Drive/C.R. 152  Austin to Berry Springs Traffic Signal  Williams Drive at Jim Hogg  Includes intersection improvements Street Maintenance  Rejuvenator work - $501,000  Chip Seal work – $378,000  Hot-in Place Recycling work - $1,171,000 The City’s street maintenance program is funded primarily through a dedicated 1/4 cent sales tax, as well as, designated funding from the General Fund. The 1/4 cent sales tax for street maintenance was reauthorized by voters in November 2010 for 4 additional years and will be considered for re-authorization again in November 2014. If voters do not reauthorize this sales tax, the City’s street maintenance program will be revised to recognize the revenue reduction. Financial Highlights The City is committed to sound financial planning and direction, and uses the City’s Fiscal and Budgetary Policy to guide the budget process and financial administration. This policy is reviewed and updated annually as part of the budget process and requires all funds be self-sustaining, meaning on-going operating revenues must fund on-going expenses. Also, the policy has substantial debt coverage requirements. All enterprise funds that have debt commitments are required to maintain 1.5 times coverage, meaning excess operating revenues must equal 1.5 times the annual debt service payment. The 2014/15 Annual Budget meets the Council's goal that each utility system is a self-supporting operation that provides a desirable and affordable level of service. All of the City’s enterprise funds, except for the Airport, are self-supporting and policy compliant in 2014/15. Airport operations and financial condition were evaluated in late 2012/13, with the first steps of a new structure and business plan implemented in the 2013/14 and major operational and rate adjustments expected in 2014/15. Lower per capita amount due to timing of Street Maintenance Projects in 09/10. 23 The City-wide contingency reserves have been increased from $17.7 million to $18.8 million. The higher requirement is due to increases in utility operations, debt service, as well as, increases related to new positions, compensation adjustments and insurance increases. The General Fund contingency is increased from $7.5M to $7.7M. Total contingency represents 75 days city-wide expenditures, and 90 days of General Fund expenditures. Capital and purchased power, as well as, airport fuel, general debt service and the sanitation contract, are excluded from the contingency calculation. The City’s overall revenue continues to increase, primarily due to increased utility revenues; as well as, increasing sales tax and property tax. The City's customer base for its electric, sanitation, wastewater and water services has increased at a rate of 4 to 6% for the last four years. The City continues to conservatively project a 3% increase in electric system growth and a 5% increase in water. Since weather conditions affect the electric and water revenues significantly, revenue projections use conservative growth estimates to avoid budget shortfalls, and employs a rolling average consumption method to factor out any weather aberrations. General Fund General Fund revenues are expected to increase in 2014/15 through increased property taxes due to new property and the increased property tax rate. Increases in sales taxes are expected due to continued economic growth and population expansion within the region. Return on investment transfers from the City’s utility systems is expected to increase due to continued customer growth and higher revenues within those systems. Most other revenue is expected to remain stable. General Fund expenditures have risen in 2014/15 mainly due to increased operating expenditures for Public Safety and implementation of the City’s compensation plan. Ending fund balance is expected to be $9.9 million, which is higher than the $7.5 million contingency reserves required by the fiscal policy. Funds above the required contingency will be used in funding one-time expenses in 2014/15. Electric and Water Services Funds Growth demands continue to impact service levels within the City’s two largest utility funds. Operational costs also increase as the infrastructure expands. Annexation and growth within the City’s outlying area requires expansion of City services, and creates additional demands on the City’s existing utility facilities. The City's Electric Fund continues to generate revenues sufficient for operations and maintenance and system improvements. Growth within the southern-most electric service area continues to expand. The City became the electric provider for several large developments within the City of Round Rock, including an outlet mall, as well as, a regional hospital. This regional development continues to expand with the construction of a Bass Pro Shop complex to be complete in 2015. Operating expenses within the electric utility are higher than the ending projected expenses for 2014 due to higher than expected system expansions costs, and a good indicator of the almost 600 new customers added in 2013/14. The $13.9 million ending balance after contingency reserves for 2014 is due to timing of capital projects and favorable margins achieved in purchased power. Late in 2013/14, the City settled its dispute with the Lower Colorado River Authority, its former wholesale power provider, solidifying its position for future power purchase 24 options. This ending fund balance includes $4,517,532.19 as the Electric Rate Stability Reserve, set aside to offset any potential and unexpected rate impacts to the City’s Electric customers. Growth and, increased environmental mandates have also impacted the Water Services Fund, which includes the City’s water, wastewater and irrigation utilities. Revenues are expected to increase over the current year due to customer growth and higher water demand. Water and wastewater customers increased over 1,200 connections each during 2013/14, an increase of 5.3% and 6.2% respectively. The growth in existing City utility service areas is expected to continue and further expand with the acquisition of that service area. Much of the CTSUD service area, located to the City’s west and north, are also experiencing high levels of residential growth. Water utility expenses will increase due to higher operational and debt service costs, as well as, increases in long-term water supply cost and operating costs associated with the Williamson County Raw Water Line. Contracting for additional water with the Brazos River Authority has ensured the availability of a long-term water supply for Georgetown. Expenses in the wastewater utility have increased due to Edwards Aquifer compliance issues and increasing treatment plant operational costs. The expansion of effluent for irrigation purposes, which provides large commercial customers a non-potable water supply for irrigation needs, has been completed to help mitigate the demand on the City’s water plants for treated water. The City continues to pursue options for regional wastewater service on the City’s western boundary and is taking a leadership role in developing methods to promote sanitary sewer service and eliminate the proliferation of septic systems thus ensuring water quality for the Georgetown area. These actions will become critical as growth increases within the area. Projected ending working capital for 2014 is $12.8 million due to the timing of capital improvements and weather related revenues. Stormwater Drainage Fund Revenue is expected to increase due to customer growth, and is sufficient to fund the on-going operations of the utility in the upcoming year. A rate analysis was conducted in 2011 to evaluate calculations for impervious cover and future environmental mandates. Expenses in the fund are expected to increase as the City takes on maintenance of several large facilities. Projected ending working capital is slightly less than previous year due to added capital improvements. The requirements of MS4 permitting and the Smith Branch buy outs may require rate adjustments in future years. Internal Service Funds The internal service funds provide administrative services and asset management for information, facility, and fleet services to City programs and departments by charging lease and administrative fees. These fees are incorporated in each department’s base budget. Information Services Fund $ 4,294,067 Add and replace network and application technology and hardware. Fees fund computer support services and annual software maintenance contracts. Facilities Maintenance Fund $ 2,875,849 Building maintenance and repairs to include HVAC, janitorial services and minor remodeling. Repairs and scheduled maintenance will be completed in 2014/15. For 2014/15, the facility maintenance costs for the new PSOTC are also included. The City now has 38 facilities that require on-going maintenance. Fleet Management Fund $ 4,842,302 Add / replace 41 vehicles and equipment. This includes the purchase of public safety, streets, and other City vehicles and equipment. 25 Proposed Debt The budget proposes to issue General Obligation (GO) Bonds for the 1460 widening project, Certificates of Obligation (CO) for equipment and vehicle purchases, as well as, downtown projects and parking, airport improvements and park projects. The budget also proposes to issue Self Supporting COs and Utility Revenue bonds for various capital improvement projects. The City‘s total tax-supported general obligation debt is $103.1 million on September 30, 2014. These bonds may not be issued or amounts adjusted depending on available resources, changes in scope or fluctuations in construction costs. Delays in project timing, as well as, revenues from prior year being greater than anticipated could lower the total amount of the bond issue. Any excess fund balance, whether due to higher than projected revenues or expenses that were less then estimated, can be used to further reduce the amount of debt issued. The utility debt coverage ratio, a standard measure of utility revenue debt capacity, or the number of times the debt service payment could be funded through net income from the utility, remains healthy at a budgeted 2.97 times, and exceeds the City’s fiscal and budgetary requirement of 1.5 times coverage and the City’s utility bond requirements of 1.35 times coverage. While the budgeted number is slightly less than previous years, the coverage is more than adequate. Excess coverage is used to fund system maintenance and various mandated improvements throughout the various utilities if directed by City Council. General Debt: GO - 1460 Widening, final payment 4,371,000 CO - Downtown projects 694,000 CO - Parks projects 1,150,000 CO - Airport 870,000 CO - Equipment & public safety vehicles 900,000 Total Projected General Debt 7,985,000 Self Supporting Debt: CO - TRV's - Fire-based Paramedic Program 400,000 CO - Stormwater 2,215,000 CO - Westside Service Center - Conservation 750,000 Total Projected Self Supporting Debt 3,365,000 Utility Debt: Revenue - Electric 5,723,000 Revenue - Water/Wastewater 7,990,000 Total Projected Utility Debt 13,713,000 Issuance Costs 376,000 TOTAL CITY-WIDE DEBT ISSUE 25,439,000$ 52 Community Profile Overview Founded July 4, 1848, Georgetown was originally the agricultural trade center for the county and surrounding area. After the Civil War, reconstruction brought prosperity to Georgetown through four main industries -- cattle, cotton, the university and the railroad. Georgetown has enjoyed consistent growth and development through the years. In recent years the City has become more industrialized and commercially oriented. Along with the commercial growth, Georgetown has successfully promoted tourism, which has brought a significant economic benefit to the community. The City of Georgetown’s estimated 2014 population was 52,914 within the city limits, with an estimated population of 77,811 including the extraterritorial jurisdiction. Georgetown is a Home Rule Charter City and operates under the Council-Manager form of government. A mayor and seven council members are elected from single-member districts, with elections being held the first Saturday in May. Historic Georgetown Since the 1982 Georgetown has been synonymous with Main Street, a downtown economic development effort administered through the Texas Historical Commission and the National Main Street Center. The 2013 campaign promotes Georgetown as the “Most Beautiful Town Square in Texas”. Over $120 million has been reinvested in revitalization efforts in the downtown area. Private and public entities joined in partnership to restore and renovate downtown commercial structures, public buildings as well as building new structures to help anchor the commercial district. This unprecedented success has made our community the shining star of the Texas Main Street program and an example for small cities nationwide to follow. Georgetown was named the First Main Street in Texas, recognized as “Texas Treasure” by First Lady, Anita Perry. It has been the building block for Georgetown’s recent economic development gains. Georgetown was recently selected as a finalist for Parade Magazine’s “Best Main Street in America” award, making the top 8 out of thousands of entries. The restoration of Georgetown’s "living room", one of a few remaining Victorian era downtown squares in the country, has revitalized the heart of Georgetown into a thriving district with shops and restaurants. In 1997, Georgetown gained recognition for the successful effort of its citizens to preserve the historic character of the city when it became the first city in Texas to win the Great American Main Street Award. Georgetown has also been voted the #1 place to retire nationally, according to the “Retirement Places Rated” and Boston Globe. Georgetown also received a #2 ranking of best places to “Live and Launch”, as well as the 2012 recognition as a gold-level certification as a “Certified Scenic City. The Georgetown Square is considered by many to be the finest example in the state of a Victorian town square. Our historic square is certainly the magnet that draws people to Georgetown. However, once they're here, people soon realize there's much more to our community. It's a town with a strong identity and people who care about it... people that make sure we never stop trying to enhance both Georgetown's appeal and the lives of those who choose to live here. Movoto, a real estate company in California, recently placed Georgetown at no. 3 in the country on the top ten list of America’s Best Suburbs. The ranking was based on several factors including shopping, dining, and entertainment offerings, as well as, cost of living, low crime, education, and employment. Cultural Activities Cultural activity thrives in Georgetown. Southwestern University's contribution of quality theater, dance, fine arts and lecture events add a valuable dimension to our cultural life. The Art deco-styled Palace Theatre, located on the downtown square, was renovated and rejuvenated by townspeople, and showcases events such as plays and musicians, as well as, other types of performing arts. Georgetown always has a full calendar of local events including the “up the Chisholm Trail Cattle Drive” down Main Street each September. Other major annual events include the Fourth of July Celebration, Christmas Stroll, and the Red Poppy Festival each Spring. 53 Recreation Georgetown offers a wealth of recreation opportunities through its award winning Parks and Recreation program. In Georgetown there are currently 34 city parks, comprising 473 total developed acres. The parks range from a half-acre neighborhood park to the one hundred-acre city wide San Gabriel Park. There are almost 9 miles of Hike/Bike Trails, including a 1.7 granite trail that loops around San Gabriel Park, three cemeteries, athletic complex, five swimming pools, downtown pocket parks and tennis center, as well as, a wide range of facilities including: softball and baseball fields, soccer fields, playground equipment, individual and group picnic shelters, basketball and tennis courts and disc golf. The Tennis Center facility includes a full size swimming pool and baby pool, 11 tennis courts and activity center on 7 wooded acres. San Gabriel Park was named a Lone Star Legacy Park in 2012, and is considered to be the “jewel” of Georgetown with a sunken garden, gazebo, football stadium, rodeo area, creative playscape for children and the Community Center. The 65,000 sq ft Recreation Center includes an indoor pool, an outdoor splash pool, a gymnasium, an indoor track, rooms for exercise classes and activities, a weight room, as well as, activities for teens and seniors. The City of Georgetown Parks and Recreation Division was presented with an “Outstanding Park Award” from the National Softball Association (NSA) for McMaster Athletic Complex. The complex has won the National Softball Association’s award every year since its opening in 2001, and is recognized by the Association as one of the most outstanding softball complexes in the state. Georgetown’s hike and bike trail was designated a National Recreation Trail by the U.S. Department of the Interior, the only trail in Texas to be so recognized in 2006. In 2007, the division was awarded the TRAPS Gold Medal Award for Excellence in Parks and Recreation. In 2009, recognitions include the "Current Plan of the Year Award" from the Central Texas Section of the American Planning Association for the Parks, Recreation and Trails Master Plan, the APPA Texas Chapter - Current Planning Award for the Parks, Recreation and Trails Master Plan, and the TRAPS Regional Best Department Marketing Plan for Regions 5 and 7. The Georgetown Public Library is a 55,000 square foot facility which allows for the expansion of book collections and other materials, and includes a reference area and computer work stations, as well as, children’s areas with a performance stage and seating area. Two large community rooms are also located on the second floor. The Library also houses the “Red Poppy Coffee Company”, a locally owned coffee house. In collaboration with the Friends of the Georgetown Library the WOWmobile (Words on Wheels) began operation in early 2012. It operates year around and delivers library materials to residents of Georgetown who find it difficult or impossible to come to the library, targeting three distinct population categories: seniors, residents with limited mobility, and low income children. Education Georgetown is also the home of Southwestern University, an independent, selective four-year undergraduate college, offering a traditional liberal arts and sciences curriculum. Southwestern was the first institution of higher learning in Texas, chartered by the Republic of Texas in 1840 and has received national recognition for its academic program and cost-effectiveness. The 2010 Fiske Guide to Colleges lists Southwestern University as among the top 25 small colleges and universities strong in art or design and among the top 37 small colleges and universities strong in business. Georgetown Independent School District (GISD) is a Texas Education Agency “Recognized” school district, and serves a diverse population of Williamson County students from pre-K to 12th grade. Georgetown ISD serves 10,400+ students at ten elementary schools, three middle schools, three high schools, and two alternative campuses. 57 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. 58 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 Services Fund Downtown and Community Services Administration Parks Recreation Library Communications CVB Tourism Facilities Maintenance Main Street Finance and Administration Municipal Court Fleet Services Information Technology Administration Accounting Purchasing Customer Care Fire Emergency Services Support Services Georgetown Utility Systems (GUS) Environmental Services Inspection Services Energy Services Electric Operations Electric T&D Water Services Wastewater Services Reuse Irrigation GUS Administration Systems Engineering (Eng Support Project Mgmt) Environmental & Conservation Services Management Services City Council City Secretary City Manager’s Office Governmental Contracts Planning Human Resources Economic Development Legal Police Administration Support Services Operations Animal Services Code Enforcement Transportation Administration Streets Stormwater Drainage Airport Operations  Electric Transmission and Distribution  Convention and Visitor’s Bureau 59 Budgeted Revenues 2014/15 12/13 Actual 13/14 Amended Budget 13/14 Projected Actual 14/15 Adopted Budget 15/16 Estimated Budget Property Taxes 17,359,839 19,171,003 19,690,623 20,676,321 21,392,282 Sales Taxes 12,339,480 12,012,500 13,882,500 14,551,625 15,356,707 Bond Proceeds 26,065,000 15,066,540 19,886,500 25,063,000 33,821,000 Charges for Services 17,239,874 19,756,745 19,674,830 24,240,489 23,065,794 Capital Recovery Fees 2,283,127 1,355,000 3,073,151 2,855,000 2,924,750 Service Improvement Fees 946,882 754,250 833,200 778,184 794,250 Utility Revenue 89,582,257 93,952,948 96,789,607 96,089,705 95,880,676 Grants 528,313 844,180 5,385,481 1,125,580 - Interest 475,813 303,920 264,713 257,970 263,570 Other Revenue 20,780,358 18,730,786 24,598,440 22,154,007 24,975,917 Interfund Transfers 14,133,717 13,123,186 13,220,128 12,805,301 8,860,451 TOTAL REVENUE 201,734,660 195,071,058 217,299,173 220,597,182 227,335,397 *Fund balance (increase) or use (7,488,742) 40,236,736 7,890,211 10,527,105 1,877,258 TOTAL BUDGET 194,245,918 235,307,794 225,189,384 231,124,287 229,212,655 60 Budgeted Expenses by Division 2014/15 12/13 Actual 13/14 Amended Budget 13/14 Projected Actual 14/15 Adopted Budget 15/16 Estimated Budget Downtown & Community Services 8,980,085 10,708,585 10,688,428 14,902,190 13,875,058 Finance & Administration 13,671,902 16,186,549 16,089,183 14,340,345 13,147,046 Fire Services 8,801,074 9,716,713 9,704,860 11,847,155 12,322,160 Georgetown Utility Systems (GUS)39,345,623 44,776,119 44,402,129 47,069,849 46,925,807 Purchased Power (GUS)27,689,893 36,768,008 33,012,132 37,073,038 35,415,480 Management Services 7,336,719 8,009,134 8,107,426 9,093,230 8,787,839 Police Services 11,073,561 11,927,558 11,855,274 13,403,311 13,473,760 Transportation 8,143,993 9,772,558 9,725,290 9,735,567 9,586,738 Capital Improvements 37,487,083 55,190,923 49,256,482 40,443,900 47,548,400 Debt Payments 17,582,268 19,128,461 19,128,052 20,410,401 19,269,916 Interfund Charges & Transfers 14,133,717 13,123,186 13,220,128 12,805,301 8,860,451 TOTAL BUDGET 194,245,918 235,307,794 225,189,384 231,124,287 229,212,655 61 Budgeted Expenses by Program 2014/15 “Programs” are related activities performed among various departments for the purpose of accomplishing a specific function. Amended Adopted 2013/14 Budget %2014/15 Budget % Administration 21,427,245 10.6%23,400,707 12.0% Airport 2,790,280 1.4%2,863,662 1.5% Downtown & Community Services 8,477,344 4.2%9,163,057 4.7% Economic Development 613,602 0.3%782,867 0.4% Electric 47,262,920 23.3%47,587,547 24.3% Fire Services 8,829,411 4.4%10,732,768 5.5% Management Svc-Others 1,959,805 1.0%1,853,607 0.9% Police Services 11,251,339 5.5%12,388,070 6.3% Environmental Services 5,456,706 2.7%5,456,848 2.8% Inspections & Permitting 877,748 0.4%890,336 0.5% Stormwater Drainage 624,064 0.3%695,855 0.4% Transportation 4,730,073 2.3%4,316,133 2.2% Water Services 14,283,800 7.0%14,674,393 7.5% Capital Improvements 55,190,923 27.2%40,443,900 20.7% Debt Payments 19,128,461 9.4%20,410,401 10.4% Budget Total By Program 202,903,721 100.0%195,660,151 100.0% Interfund Transfers & Premiums 32,404,073 35,464,136 TOTAL OPERATING BUDGET 235,307,794 231,124,287 275 Debt Management & Policy The City’s goal is to fund capital improvement projects on a ”pay as you go” basis wherever possible. For large infrastructure projects and during heavy growth, debt financing is sometimes required. Debt financed projects must meet the City’s financing criteria as included in the Fiscal and Budgetary Policy. XII. Debt Management The City of Georgetown recognizes the primary purpose of capital facilities is to provide services to the community. Using debt financing to meet the capital needs of the community must be evaluated according to efficiency and equity. • Efficiency must be evaluated to determine the highest rate of return for a given investment of resources. • Equity is resolved by determining who should pay for the cost of capital improvements. In meeting the demand for additional services, the City will strive to balance the needs between debt financing and “pay as of you” methods. The City realizes that failure to meet the demands of growth may inhibit its continued economic viability, but also realizes that too much debt may have detrimental effects on the City’s long-term financial condition. The City will issue debt only for the purpose of acquiring or constructing capital assets for the general benefit of its citizens and to allow it to fulfill its various purposes as a city. Debt financing will be considered for non-continuous capital improvements of which future citizens will be benefited. Financing alternatives will be explored prior to debt issuance. When the City of Georgetown utilizes long-term financing, it will ensure that the debt is soundly financed by: • Conservatively projecting the revenue sources that will be utilized to pay the debt. • Financing the improvement over a period not greater than the useful life of the improvement. • Determining that the cost benefit of the improvement including interest costs is positive. The City may utilize the benefits of short-term debt financing to purchasing operating equipment provided the debt doesn’t extend past the useful life of the asset, and the potential impact to the tax rate is within policy guidelines. The I & S (interest and sinking) portion of the tax rate can not exceed $0.04 for short-term debt (3-10 years).” The City’s debt management objective is to maintain level debt service that does not adversely impact tax or utility rates and does not hinder the City’s ability to effectively operate the utility systems, street network, or other facilities. The City’s debt payments must stay within provisions of state law, bond covenants and council adopted policies. All of these criteria and objectives are met with the debt financing proposed in this budget. The City of Georgetown’s bonds are rated: General Obligation Date Obtained Utility Revenue Date Obtained Moody’s Aa2 4/23/2010 Aa2 4/23/2010 Standard & Poor’s AA+ 4/29/2009 AA 4/21/2014 276 Outstanding Debt Summary - By Type as of October 1, 2014 Debt 2014/2015 2014/2015 Outstanding %Principal & Interest Handling Fees GENERAL GOVERNMENT TAX SUPPORTED DEBT: Certificate of Obligation and General Obligation Bonds: Streets and Transportation 19,481,450 19%1,137,232 2,335 Parks and Recreation Facilities 11,857,022 12%1,258,334 1,450 Public Safety 37,979,240 37%2,753,655 2,153 Other City Facilities 33,738,590 33%4,414,479 4,497 TOTAL TAX SUPPORTED DEBT 103,056,303 100%9,563,699 10,435 ENTERPRISE DEBT: Utility Revenue Bonds: Electric 30,160,530 43%3,573,771 2,992 Water Services Irrigation 1,084,880 2%129,233 108 Water 23,077,210 33%2,505,463 2,289 Wastewater 12,215,731 17%1,805,120 1,212 Total Utility Revenue Debt 66,538,351 8,013,587 6,600 Certificates of Obligation Bonds - Self-Supporting: (2) Airport 603,846 1%165,223 88 Stormwater Drainage 3,012,205 4%429,344 670 Total CO Bonds - Self Supporting 3,616,051 594,566 758 TOTAL ENTERPRISE DEBT 70,154,402 100%8,608,153 7,358 TOTAL CITY SUPPORTED DEBT 173,210,705 18,171,853 17,792 CONTRACTUAL OBLIGATIONS (1): Brazos River Authority (BRA) Contractual Obligation 23,708,328 1,061,110 Total Contractual Obligations 23,708,328 1,061,110 (1) Funds Georgetown's pro-rata share of the Williamson County Raw Water Line. (2) Does not include CO's issued on behalf of the Georgetown Transportation Enhancement Corporation (GTEC) that are repaid through GTEC sales tax. 277 Legal Debt Margin for General Obligations: All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal and interest on the Bonds within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits the maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for all City purposes). The Charter of the City adopts the provisions of the constitution without further limitation. Under rules promulgated by the Office of the Attorney General of Texas, such office will not approve tax bonds of the City unless the City can demonstrate its ability to pay debt service requirements on all outstanding City tax bonds, including the issue to be approved, from a tax levy of $1.50 per $100 of valuation, based on 90% collection of tax. Allowable levy per $100 valuation $1.50000 Proposed levy for debt service (included in total adopted rate of $0.434) 0.22662 Percentage of allowable levy used 15.11% 278 Summary of Debt Service Charges to Maturity General Obligation Bonds and Certificates of Obligation – TAX SUPPORTED Year Ending Outstanding Total September 30 Beginning of Year Interest Principal Requirements 2015 103,056,309 3,415,929 6,194,650 9,610,579 2016 96,861,659 3,076,688 6,537,815 9,614,503 2017 90,323,844 2,978,685 6,843,910 9,822,595 2018 83,479,934 2,768,385 6,267,766 9,036,151 2019 77,212,168 2,584,002 5,962,751 8,546,753 2020 71,249,417 2,406,402 5,693,609 8,100,012 2021 65,555,807 2,244,583 5,813,706 8,058,289 2022 59,742,101 2,070,903 5,637,108 7,708,011 2023 54,104,993 1,890,373 5,783,971 7,674,344 2024 48,321,022 1,693,840 5,894,136 7,587,976 2025 42,426,886 1,482,060 5,859,564 7,341,624 2026 36,567,322 1,267,156 5,056,578 6,323,734 2027 31,510,744 1,084,856 5,016,594 6,101,451 2028 26,494,150 903,993 4,288,222 5,192,215 2029 22,205,928 753,165 4,274,089 5,027,254 2030 17,931,839 601,206 3,581,063 4,182,269 2031 14,350,776 480,064 2,821,063 3,301,127 2032 11,529,713 384,497 2,271,567 2,656,064 2033 9,258,146 310,889 2,287,072 2,597,961 2034 6,971,074 235,251 2,026,074 2,261,325 2035 4,945,000 167,706 1,595,000 1,762,706 2036 3,350,000 113,913 1,645,000 1,758,913 2037 1,705,000 45,031 1,705,000 1,750,031 32,959,579 103,056,309 136,015,888 279 Ad Valorem Tax-Supported Debt Payments Adjusted Net Voter Approved Year Ending Certificates of Less Certificates of General Obligation Total September 30 Obligation GTEC Portion*Obligation Debt Requirements 2015 6,492,912 (1,732,572) 4,760,340 4,850,238 9,610,579 2016 6,225,208 (1,686,759) 4,538,450 5,076,053 9,614,503 2017 6,050,002 (1,397,506) 4,652,495 5,170,099 9,822,595 2018 5,610,722 (1,491,564) 4,119,157 4,916,993 9,036,151 2019 5,132,877 (1,467,449) 3,665,428 4,881,325 8,546,753 2020 4,851,773 (1,441,217) 3,410,556 4,689,456 8,100,012 2021 4,692,582 (1,428,569) 3,264,013 4,794,276 8,058,289 2022 4,353,047 (1,366,796) 2,986,251 4,721,760 7,708,011 2023 4,189,638 (1,262,313) 2,927,325 4,747,019 7,674,344 2024 4,175,717 (1,242,275) 2,933,441 4,654,535 7,587,976 2025 3,494,196 (715,658) 2,778,538 4,563,087 7,341,624 2026 2,805,903 (434,434) 2,371,469 3,952,266 6,323,734 2027 2,544,814 (354,355) 2,190,459 3,910,992 6,101,451 2028 1,850,361 (174,090) 1,676,271 3,515,944 5,192,215 2029 1,681,481 (174,228) 1,507,254 3,520,000 5,027,254 2030 919,179 (66,009)853,169 3,329,100 4,182,269 2031 917,362 (64,059)853,302 2,447,825 3,301,127 2032 267,349 (64,609)202,739 2,453,325 2,656,064 2033 141,792 - 141,792 2,456,169 2,597,961 2034 141,007 - 141,007 2,120,319 2,261,325 2035 - - - 1,762,706 1,762,706 2036 - - - 1,758,913 1,758,913 2037 - - - 1,750,031 1,750,031 66,537,920 (16,564,462) 49,973,457 86,042,431 136,015,888 * GTEC Debt is self supporting certificates of Obligation (CO Bonds) repaid through dedicated sales tax revenue. 280 Summary of Debt Service Charges to Maturity Certificates of Obligation – SELF SUPPORTING – Enterprise Funds (Airport & Stormwater Drainage) Debt issued for specific purpose and repaid through dedicated revenues Year Ending Outstanding Total September 30 Beginning of Year Interest Principal Requirements 2015 3,616,051 136,349 458,216 594,566 2016 3,157,835 119,854 410,899 530,753 2017 2,746,935 106,306 426,608 532,914 2018 2,320,327 91,704 388,050 479,754 2019 1,932,278 78,011 220,409 298,419 2020 1,711,869 70,182 186,466 256,648 2021 1,525,403 59,842 172,443 232,284 2022 1,352,961 52,252 164,836 217,088 2023 1,188,124 46,239 173,908 220,147 2024 1,014,216 39,493 178,577 218,070 2025 835,640 32,445 184,757 217,202 2026 650,882 25,122 127,991 153,113 2027 522,891 20,078 134,194 154,271 2028 388,698 14,752 130,098 144,850 2029 258,600 9,480 102,939 112,419 2030 155,661 5,459 28,937 34,396 2031 126,724 4,483 28,937 33,420 2032 97,787 3,506 30,933 34,439 2033 66,854 2,423 32,928 35,352 2034 33,926 1,230 33,926 35,156 919,209 3,616,051 4,535,261 281 Summary of Utility Debt Service Charges to Maturity Revenue bonds issued to finance construction of electric, water and wastewater improvements, and secured by the net operating revenue of all combined utilities. The allocation of debt principal is based on the use of each bond issue. Each utility pays debt service from operating revenues. The Brazos River Authority Contractual Obligations are the liability of the Water Services Fund. Year Ending Outstanding Total BRA September 30 Beginning of Year Interest Principal Requirements Contract 2015 665,338,351 2,340,323 5,673,264 8,013,587 1,061,110 2016 659,665,087 2,148,830 4,747,169 6,895,999 1,237,584 2017 654,917,918 1,989,981 4,905,826 6,895,807 1,237,500 2018 650,012,092 1,842,089 5,115,826 6,957,915 1,237,499 2019 644,896,266 1,681,688 4,827,045 6,508,733 1,219,092 2020 640,069,221 1,516,069 4,607,592 6,123,662 1,583,349 2021 635,461,629 1,354,998 4,425,030 5,780,029 1,524,296 2022 631,036,598 1,200,942 4,488,687 5,689,629 1,518,758 2023 626,547,911 1,038,912 3,986,869 5,025,782 1,520,636 2024 622,561,041 886,881 3,657,665 4,544,546 1,519,178 2025 618,903,376 748,281 3,813,884 4,562,165 1,524,631 2026 615,089,492 600,294 3,673,212 4,273,507 1,511,318 2027 611,416,280 459,829 3,157,541 3,617,370 1,520,159 2028 608,258,739 344,348 2,708,760 3,053,108 1,517,615 2029 605,549,979 242,006 2,114,979 2,356,985 1,522,931 2030 603,435,000 167,794 1,090,000 1,257,794 1,521,024 2031 602,345,000 130,869 1,135,000 1,265,869 730,823 2032 601,210,000 92,100 1,180,000 1,272,100 200,825 2033 600,030,000 47,175 1,230,000 1,277,175 - 18,833,409 66,538,351 85,371,760 23,708,328 282 Utility Revenue Bond Debt Coverage The City has agreed through its bond ordinances to maintain a minimum "times coverage" ratio of 1.25. The ordinance allows the City to eliminate its reserve fund requirement with coverage of 1.35 or better. The times ratio is calculated using the net revenue available for debt service from the combined Water, Electric and Wastewater utilities' operations divided by the combined debt service requirement of both the Electric and Water Service Funds. The times coverage ratio is also reviewed by bond rating agency analysts when the City receives a rating for a potential utility bond issue. The following combined times coverage ratios have occurred, based on actual revenues and expenditures, for the fiscal years indicated: The 2014/15 Annual Budget provides the revenue to debt ratios shown below. The City’s Fiscal and Budgetary Policy requires that each utility maintain separate coverage of at least 1.5. The excess coverage provided by each fund is used to pay for related utility system capital improvements and other uses approved by the City Council. Water Services Electric Fund Fund Total REVENUE: All Other Revenue 4,385,108 4,395,917 8,781,025 Interest 67,600 26,000 93,600 System Billings 25,098,634 62,318,107 87,416,741 Total Revenues 29,551,342 66,740,024 96,291,366 EXPENSES: Departments 19,477,049 52,361,263 71,838,312 Total Expenditures 19,477,049 52,361,263 71,838,312 Net Available for Debt Service 10,074,293 14,378,761 24,453,054 Annual Debt Requirement 4,562,116 3,659,699 8,221,815 Times Coverage Ratio 2.21 3.93 2.97 UTILITY REVENUE BOND COVERAGE 283 Proposed Debt Issues: Outstanding 9/30/14 Debt Principal 14/15 Principal Reduction Estimated 2015 New Debt Estimated 9/30/15 Outstanding Debt TAX SUPPORTED DEBT: General Debt Service: General Obligation/Certificates of Obligation 103,056,302 (6,194,650) 7,985,000 104,846,652 SELF SUPPORTED DEBT: General Debt Service: Fire-based Paramedic Program - - 400,000 400,000 Conservation - - 750,000 750,000 Stormwater 3,012,205 (318,493) 2,215,000 4,908,712 Airport 603,846 (139,724) - 464,122 total GDS:106,672,353 (6,652,867) 11,350,000 111,369,486 Utility Revenue Debt: Electric 30,160,531 (2,526,270) 5,723,000 33,357,261 Irrigation 1,084,880 (87,160) - 997,720 Wastewater 12,215,731 (1,334,213) 7,990,000 18,871,518 Water 23,077,210 (1,725,621) - 21,351,589 total Utility Revenue Debt:66,538,352 (5,673,264) 13,713,000 74,578,088 Issuance Costs:376,000 TOTAL OUTSTANDING DEBT:173,210,705 (12,326,131) 25,439,000 185,947,574 General Debt:  Long-term obligations are proposed to fund capital projects as detailed below: General Debt: GO - 1460 Widening, final payment 4,371,000 CO - Downtown projects 694,000 CO - Parks projects 1,150,000 CO - Airport 870,000 CO - Equipment & public safety vehicles 900,000 Total Projected General Debt 7,985,000 Self Supporting Debt: CO - TRV's - Fire-based Paramedic Program 400,000 CO - Stormwater 2,215,000 CO - Westside Service Center - Conservation 750,000 Total Projected Self Supporting Debt 3,365,000 Utility Debt: Revenue - Electric 5,723,000 Revenue - Water/Wastewater 7,990,000 Total Projected Utility Debt 13,713,000 Issuance Costs 376,000 TOTAL CITY-WIDE DEBT ISSUE 25,439,000 284 Authorized General Obligation Debt: General Obligation Bonds (GO’s):  General obligation bonds must be authorized by a vote of the citizens of Georgetown. They are used only to fund capital assets of the general government and are not to be used to fund operating needs of the City. The full faith and credit of the City as well as the City’s ad valorem taxing authority back general obligation bonds. Conditions for issuance of general obligation debt include:  When the project will have a significant impact on the tax rate;  When the project may be controversial even through it is routine in nature; or  When the project falls outside the normal bounds of projects the City has typically done. General Obligation Debt Authorized by the Voters Roads Parks Public Safety Facility Total Year Authorized by the Voters 2008 46,000,000$ 35,500,000$ -$ 81,500,000$ 2011 - - 29,500,000 29,500,000 Total Authorized 46,000,000 35,500,000 29,500,000 111,000,000 Year & Issue 2010 1,370,000 - - 1,370,000 2010A 9,430,000 2,500,000 - 11,930,000 2012 - - 12,500,000 12,500,000 2012A - - 12,500,000 12,500,000 2013 - 5,000,000 4,500,000 9,500,000 2014 4,800,000 - - 4,800,000 Total Issued 15,600,000 7,500,000 29,500,000 52,600,000 Authorization Remaining 30,400,000$ 28,000,000$ -$ 58,400,000$ 287 Miscellaneous Statistical Data Form of government Council - Manager Area (square miles)51.98 Miles of streets 638 Number of street lights 3,836 2013 average unemployment rate 5.20% Total City employees 608.75 Number of parks 34 Acres of parkland (Master Plan now includes green space as parkland)960 Number of libraries 1 Number of library items in circulation 559,209 Number of Fire stations 5 Number of Firefighters 98 Number of Police stations 1 Number of Police officers 79 Number of Electric customers 22,550 Number of Water customers 23,443 Number of Wastewater customers 21,870 Number of Stormwater Customers 23,061 Number of Sanitation customers 21,795 Number of GISD Attendance Centers 19 # of Teachers 728 Average Years Experience 13.5 Student/Teacher Ratio 14:1:1 Total Number of Students 10,582 African-American 4.1% Hispanic 41.2% White 54.0% Economically Disadvantaged 47.0% Elevation 755 feet Annual Average Temperature 68o Monthly Average High Temperature 96o Monthly Average Low Temperature 39o Weather Education Utility Customers Public Safety Recreation and Culture General City Information 288 Key Indicators 289 Key Indicators 290 Peer Benchmarking An important way to measure our economic condition is through benchmarking, which is a point of reference from which measurements or progress can be made. Benchmarking measures our progress from a point in time and is something that serves as a standard by which others may be measured. Benchmarking data is taken from 2013/14 budgets. *Both Georgetown and San Marcos own and operate an electric utility. 291 Benchmarking allows the City to focus on the relative level of comparison in key areas within the Central Texas area and find ways to close gaps when indicated. Peer Benchmarking Georgetown has chosen to measure itself against cities in the surrounding area that have similar size, location or growth issues and benchmarks. Benchmarking data is taken from 2013/14 budgets. 292 Certified Property Value Historical Data Fiscal Certified Tax Increase (Dec)Percent of Year Assessed Value Rate In Value Levy Collected 2005 2,391,137,407 0.3463 6.41% 98.89% 2006 2,643,057,606 0.3463 10.54% 98.94% 2007 3,060,088,213 0.3673 15.78% 99.28% 2008 3,700,498,187 0.3566 20.93% 98.24% 2009 4,176,836,943 0.3562 12.87% 98.05% 2010 4,173,874,126 0.3562 -0.07% 98.41% 2011 4,180,224,985 0.3562 0.15% 99.22% 2012 4,350,171,379 0.3875 4.07% 99.24% 2013 4,479,836,995 0.4100 2.98% 99.41% 2014 4,694,586,750 0.4395 4.79% 98.82% 2015 5,253,246,873 0.4340 11.90%N/A 293 Certified Taxable Assessed Valuation By Class of Property Assessed Values Class of Property 2010 2011 2012 2013 2014 Residential Single Family 2,740,637,876 2,857,351,025 2,929,698,565 3,087,103,596 3,495,503,571 Multi Family 114,193,245 119,056,293 122,070,774 129,132,209 161,091,180 Total Residential 2,854,831,121 2,976,407,318 3,051,769,339 3,216,235,805 3,656,594,751 Commercial 931,346,100 908,743,400 981,555,050 1,011,277,924 1,144,471,358 Personal Property, Other 269,771,730 311,033,417 382,683,621 370,699,347 326,852,517 Certified Assessed Valuation 4,055,948,951 4,196,184,135 4,416,008,010 4,598,213,076 5,127,918,626 60% of uncertified under protest value 124,276,034 121,964,074 63,828,945 96,373,674 125,328,247 Total Assessed Valuation 4,180,224,985 4,318,148,209 4,479,836,955 4,694,586,750 5,253,246,873 294 City Property Tax Rate Comparison (Cities within the Central Texas Area) Combined Tax Rate City of Georgetown $0.80 Taylor (.81389) Killeen (.7428) .70 Leander (.65792) .60 Temple (.5864) Pflugerville (.5390)Hutto (.528691)San Marcos (.5302) .50 Cedar Park (.48500)Austin (.48090) Georgetown (.4340) $0.30 .30 .40 Round Rock (.41465) $2.321029 $0 Georgetown Independent School District ($1.3980) 0.43400 Williamson County ($0.489029) 295 2014 Tax Rate Components Total Tax Supported Debt Compared to General Sales Tax Revenue Growth 296 Total Combined Tax Rate Comparison (Cities within the Central Texas Area) 297 Sales Tax Revenue Analysis Historical Data (Includes 1% general use only) Fiscal Year Population Revenues Sales Tax per capita % change from prior year 2006 41,395 6,056,507 146.31 24% 2007 44,117 6,761,872 153.27 12% 2008 45,710 7,310,027 159.92 8% 2009 46,787 6,943,036 148.40 -5% 2010 47,865 7,454,806 155.75 7% 2011 48,902 7,803,863 159.58 5% 2012 49,543 8,277,502 167.08 6% 2013 50,513 9,326,554 184.64 13% *2014 52,214 10,460,000 200.33 12% *2015 54,689 10,933,000 199.91 5% 298 Tax Revenues Historical Data Combined Revenue City Rate Value Rate Levy Tax Total 2005 4,874,132 8.00% 2,391,137,407 0.3463 8,280,509 13,154,641 2006 6,056,507 8.25% 2,643,057,606 0.3463 9,151,851 15,208,358 2007 6,761,872 8.25% 3,060,088,213 0.3673 11,239,704 18,001,576 2008 7,310,027 8.25% 3,700,498,187 0.3566 13,195,606 20,505,633 2009 6,943,036 8.25% 4,176,836,943 0.3562 14,877,893 21,820,929 2010 7,454,806 8.25% 4,173,874,126 0.3562 14,867,340 22,322,146 2011 7,803,863 8.25% 4,180,224,985 0.3562 14,889,961 22,693,824 2012 8,277,502 8.25% 4,350,171,379 0.3875 16,856,914 25,134,416 2013 9,326,554 8.25% 4,479,836,995 0.4100 18,367,332 27,693,886 **2014 10,460,000 8.25% 4,694,586,750 0.4395 20,632,709 31,092,709 **2015 10,933,000 8.25% 5,253,246,873 0.4340 22,799,091 33,732,091 **Projected Fiscal Year Sales Tax Property Tax 299 Additional Sales and Use Taxes Total 2% Authorized In 2001, voters authorized the adoption of an additional 0.5% sales and use tax within the City, with the proceeds to be used for transportation system improvements to support economic development. The additional revenue is not part of the City’s general operating budget, but is budgeted and spent by a non-profit economic development corporation, Georgetown Transportation Enhancement Corporation (GTEC). GTEC was established expressly for the above purpose by the City Council. GTEC’s activities are included in the City’s audited financial statements as a blended component unit. A copy of GTEC’s approved 2014/15 budget is included within the reference section of this document. In November 2002, voters authorized the adoption of an additional 0.25% sales and use tax within the City with the proceeds to be used for maintenance of streets in existence at the time of the adoption of the tax. This revenue is included in the City’s operating budget in a Special Revenue Fund. This tax has a four year sunset provision, and was reauthorized by the voters in November 2006 and November 2010. Currently, this tax will sunset in April 2015, unless renewed by the voters in November. Reauthorization of the street maintenance sales tax is on the November 4, 2014 ballot. In May 2005, voters authorized the adoption of an additional 0.125% sales and use tax within the City with the proceeds to be used to promote and develop new and expanded business enterprise on behalf of the City of Georgetown and became effective October 1, 2005. This additional revenue is not part of the City’s operating budget, and is budgeted and spent by a non-profit economic development corporation, Georgetown Economic Development Corporation (GEDCO). This corporation was established by the City Council to oversee this revenue. Activities are included in the City’s audited financial statements as a discretely presented component unit. A copy of GEDCO’s approved 2014/15 budget is also included within the reference section of this document. In May 2005, voters also authorized the adoption of an additional 0.125% sales and use tax within the City with the proceeds to be used for property tax relief. This tax became effective October 1, 2005 and is used in the City’s 2014/15 property tax calculation. Revenue from this sales tax is included in the City’s general operating budget. 300 Utility Customer Growth Historical Data Fiscal Year Water Electric Wastewater Sanitation Stormwater 2004 15,630 16,356 13,454 13,987 13,357 2005 16,656 17,403 14,480 15,076 14,346 2006 17,979 18,549 15,811 16,240 15,686 2007 18,847 19,554 16,672 17,359 16,535 2008 19,727 20,414 17,518 18,590 17,299 2009 20,151 20,639 17,912 19,109 17,606 2010 20,643 21,071 18,413 19,719 18,127 2011 21,173 21,475 18,936 20,232 18,516 2012 21,785 21,714 19,541 20,698 21,469 2013 22,279 22,034 20,708 21,064 22,388 2014 23,443 22,550 21,870 21,795 23,061 *2015 24,615 23,678 22,964 22,885 24,214 * Projected 301 Utility Revenues Historical Data Fiscal Yr Water * Other Enterprise Wastewater Electric 2006 11,916,401 5,091,527 6,512,974 41,338,196 2007 10,345,351 5,461,743 7,146,132 42,805,466 2008 13,602,151 6,136,057 7,760,011 51,833,477 2009 13,757,785 6,575,514 7,992,122 56,506,906 2010 12,523,363 6,754,003 8,109,241 59,058,745 2011 17,416,629 6,887,548 8,480,015 57,694,311 2012 16,432,979 7,259,923 8,593,622 58,403,735 2013 16,326,998 7,990,743 8,603,410 53,780,319 **2014 15,359,608 8,406,095 8,984,889 61,022,273 **2015 15,623,646 8,672,964 9,474,988 62,318,107 * Includes Stormwater and Sanitation ** Projected 302 Georgetown’s Top Ten TAXPAYERS (per Certified Roll *) Assessed Taxpayer Value 1. WPG Wolf Ranch LP $63,598,630 2. Citigroup Technology Inc $39,319,679 3. Citicorp North America $32,452,323 4. St David’s Healthcare Partnership $31,285,527 5. The Bassham Trust $26,540,531 6. South Austin Ave Professional Bldg $21,000,000 7. Two Rivers GT Ltd $19,898,939 8. Georgetown Rail & Equipment Co $18,321,453 9. WalMart Real Estate Business Trust $16,429,306 10. Hewlett Holdings Ltd $13,566,083 EMPLOYERS Number of Employer Employees 1. Williamson County Government 1,582 2. Georgetown ISD 1,550 3. City of Georgetown 574 4. Southwestern University 514 5. Airborn, Inc 462 6. St. David’s Hospital 453 7. Wesleyan Homes 330 8. HE Butt Grocery 283 9. Caring Home Health 269 10. Sun City (Del Webb) 260 TEN LARGEST WATER CUSTOMERS * 000 Gallons Customer Consumed 1. Chisholm Trail SUD 1,037,003 2. Southwest Materials 127,396 3. City of Georgetown 105,563 4. Sun City TX Comm Assoc 53,643 5. Southwestern University 48,602 6. Citicorp of North America, Inc 33,858 7. Georgetown ISD 29,129 8. Williamson County 28,748 9. Del Webb LP 27,668 10. Simon Property Group 20,134 TEN LARGEST WASTEWATER CUSTOMERS Customer Volume 1. Citicorp of North America, Inc. 34,415 2. Southwestern University 32,168 3. Williamson County 24,334 4. Georgetown ISD 22,312 5. Georgetown Place Apts 15,221 6. Cypress Creek Apts 14,645 7. Georgetown Hospital 14,498 8. Waters Edge Apts 13,706 9. Indian Creek Apts 11,675 10. Georgetown Housing Authority 10,440 * Includes potable water only. Non-potable irrigation is not included in total gallons consumed. * Does not include some major property owners whose property is under protest as of date of certification. 335 Contingency Reserve Requirements Worksheet (per Section XII.B of Fiscal and Budgetary Policy) -------------------- B Y F U N D -------------------- CITY WIDE General Electric Water Services Total budgeted expenditures 231,124,287 51,695,797 72,304,895 41,451,316 Less: Purchased Power- Electric (37,073,038)(37,073,038) Sanitation Contract - General (5,259,568)(5,259,568) Social Service & Contingency funding (710,049)(710,049) Capital Improvements - Electric, WW, Water (23,132,000)(10,413,000) (12,719,000) Capital Improvements - Other Enterprise Funds (3,397,561) Capital Improvements - GCP & Streets (11,667,620) Capital Maintenance - General/Utilities (3,207,230)(1,483,730) (1,040,000)(683,500) Capital Improvements - Special Revenue Funds (2,394,900) Restricted Special Revenue funds (3,265,506) Airport Fuel Charge (2,228,000) Debt Service - General (11,359,651) One-Time Only Expenses (901,493)(851,493)(50,000) Interfund Transfers (12,805,301)(523,998) (4,722,933)(4,693,151) Interfund Charges (23,410,489)(12,317,636) (6,290,197)(4,802,656) Budgeted operating expenditures 90,311,881 30,549,323 12,715,727 18,553,009 Percentage reserve requirements: 60 days - 16.67%15,051,980 5,091,554 2,119,288 3,092,168 75 days - 20.83%18,814,975 6,364,442 2,649,110 3,865,210 90 days - 25%22,577,970 7,637,331 3,178,932 4,638,252 09/30 RESERVE BALANCES: Minimum Minimum Current Days Amount Amount Fund Required Required Included Electric Fund N/A 2,649,110 6,215,000 General Fund 90 days 7,637,331 7,695,000 Stormwater Drainage Fund N/A 250,000 250,000 Water Services Fund 90 days 4,638,252 4,565,000 Airport Fund N/A 119,507 119,507 Airport Fund contingency adjustment (120,000)(funded with Electric per policy) Convention & Visitors Bureau SRF 60 days 75,000 75,000 All other City Funds expenditures N/A*3,445,775 N/A (held in other operating funds) Totals for all expenditures 75 days 18,814,975 18,799,507 Note:The city-wide contingency reserve requirement is 75 days of operating expenses. Only the General, Stormwater Drainage, Water Services, and Convention and Visitors Bureau SRF have a specific minimum fund reserve requirement. All excess reserves for City expenditures in funds that do not have a specific fund requirement are held in other operating funds. 336 Financial Ratio Comparisons Georgetown has chosen to measure its financial condition against cities in the surrounding area that have similar size, location or growth issues. The acceptable levels referred to below are based on the City’s Fiscal and Budgetary Policy. (per Section XII.G of the Fiscal and Budgetary Policy) Fund Balance to Equity ratio is a function of fund balance to equity for governmental type funds (General Fund, Special Revenue, etc.). Working capital is the liquid reserve available to meet uncertainties. It is a function of current assets less current liabilities. Current ratio and quick ratio are measures of liquidity. Liquidity is an organization's ability to convert noncash assets into cash or to obtain cash to meet impending obligations. Current ratio includes inventories and prepaid expenses, whereas the Quick ratio excludes inventories and prepaid expenditures. A ratio of 1 or greater is an acceptable level for both ratios. 337 Financial Ratio Comparisons Georgetown has chosen to measure its financial condition against cities in the surrounding area that have similar size, location or growth issues. The acceptable levels referred to below are based on the City’s Fiscal and Budgetary Policy. (per Section XII.G of the Fiscal and Budgetary Policy) Debt to assessed value is a ratio of the assessed value to tax supported debt. A ratio or less than 5 is acceptable. The ratio of current liabilities plus long term debt to total assets. A ratio of 1 or lower is acceptable. Enterprise operational coverage is a ratio of operating revenue to operating expenses of the city's combined enterprise funds. A ratio of 1.25 or greater is acceptable. Number of times the utility debt service requirements would be covered by the current utility operating revenue net of current operating expense. A ratio of 1.5 or greater is acceptable. 338 Personnel Summary by Division 2013 - 2016 12/13 13/14 13/14 FINAL / ORIGINAL FINAL / 14/15 15/16 PERSONNEL SUMMARY ACTUAL BUDGET ACTUAL ADOPTED PROJECTED DOWNTOWN & COMMUNITY SERVICES Administration 3.5 3.5 3.5 4 4 Facilities Maintenance 0 0 0 7 7 Public Communications 0 2 2 3 3 Convention & Visitor's Bureau 3.5 3.5 3.5 4 4 Main Street 1 1 1 1 1 Public Library 19/2.5 19/2.5 19/2.5 19/2.5 19/2.5 Parks Admin 2 2 2 2 2 Parks 17/1.5 17/1.5 17/1.5 18/1.5 18/1.5 Recreation 20/18.5 20/18.5 20/18.5 22/19.5 22/19.5 Total (FT/PT)66/22.5 68/22.5 68/22.5 80/23.5 80/23.5 FINANCE & ADMINISTRATION Administration 6 5 5 5 5 Accounting 8 9 9 9 9 Municipal Court 6 6 7 7 7 Purchasing and Properties 7 8 8 8 8 Facilities Maintenance 6 7 7 0 0 Fleet Services 8 8 8 8 8 Information Technology 9 12 12 18 18 GIS 4 4 4 0 0 Customer Care 18 19 19 19 19 Total (FT/PT)72 78 79 74 74 FIRE SERVICES Support Services 6 7 7 10 10 Emergency Services 84 86 86 93 93 Total (FT/PT)90 93 93 103 103 GEORGETOWN UTILITY SYSTEMS Administration 6 7 7 9 9Conservation34466 Electric Admin 1.5 1.5 1.5 1.5 1.5 Electric 32 34 34 36 36 T&D Operations 20 21 21 22 22 Systems Engineering 20 12 12 12 12 Engineering Support 0 8 8 8 8 Inspections 10 10 10 10 10 Environmental Services 1 1 1 1 1 Water Services - Administration 0.5 0.5 0.5 0.5 0.5 Water Services - Reuse Irrigation 1 1 1 1 1 Water Services - Wastewater 14 14 14 14 14 Water Services - Water 17 17 17 19 19 Total (FT/PT)126 131 131 140 140 MANAGEMENT SERVICES City Secretary 3 4 4 5 5 City Manager's Office 5/.5 5/.5 4/.5 3/.5 3/.5 Planning 8 8 8 9 9 Legal 4 4 5 5 5 Public Communications 2 0 0 0 0 Economic Development 2 2/.5 2/.5 3 3 Human Resources 6/.5 6 6 7 7 Total (FT/PT)30/1 29/1 29/1 32/.5 32/.5 POLICE SERVICES Administration 4 4 4 4 4 Operations 98 98 98 101/.5 101/.5 Animal Services 6/3.25 9/1.5 9/1.5 9/1.5 9/1.5 Code Enforcement 4 4 4 5 5 Total (FT/PT)112/3.25 115/1.5 115/1.5 119/2.0 119/2.0 TRANSPORTATION SERVICES Transportation Admin 2 3 3 3 3Streets18/.75 18/.75 18/.75 18/.75 18/.75 Airport 2/3.5 3/2.5 3/2.5 3/2.5 3/2.5 Stormwater Drainage 5/.5 7/.5 7/.5 7/.5 7/.5 Total (FT/PT)27/4.75 31/3.75 31/3.75 31/3.75 31/3.75 TOTAL CITY OF GEORGETOWN (FT/PT)523/31.50 545/28.75 546/28.75 579/29.75 579/29.75 339 Personnel Summary 2014/15 Base Position Summary 340 Personnel Summary 2014/15 13/14 Final / Actual 14/15 Base Budget Proposed Staff Additions 14/15 Funded Positions Downtown & Community Services 90.50 97.50 6.00 103.50 Finance 79.00 72.00 2.00 74.00 Fire 93.00 94.00 9.00 103.00 GUS 131.00 130.00 10.00 140.00 Management Services 30.00 30.00 2.50 32.50 Police 116.50 116.50 4.50 121.00 Transportation 34.75 34.75 - 34.75 Total 574.75 574.75 34.00 608.75 341 New Positions 2014/15 Division/Dept NEW POSITIONS FTEs Hire Date Downtown & Community Services Communications Media Marketing Specialist 1 April 2015 CVB Group Sales & Servicing Coordinator 1 June 2015 Parks & Recreation Aquatic Specialist 1 April 2015 Parks & Recreation Senior Parks Maintenance Worker 1 June 2015 Parks & Recreation Recreation Specialist 1 April 2015 Parks & Recreation Recreation Assistants (2 PT)1 April 2015 Finance & Administration IT Systems Administrator 1 October 2014 IT Desktop Tech 1 October 2014 Fire Emergency Svcs Public Safety - Fire Based Paramedic Prog.9 October 2014 Georgetown Utility Systems (GUS) GUS Admin Office Specialist (Records)1 October 2014 Inspections Building Plans Examiner 1 April 2015 Conservation Svcs Landscape Inspector 1 October 2014 Conservation Svcs Conservation Program Analyst 1 October 2014 Electric Ops Tech Services Manager 1 October 2014 Electric Ops Project Coordinator 1 October 2014 Electric Ops Metering Tech 1 October 2014 T&D Svcs Utility Locator 1 October 2014 Water Operations Operations Specialist 1 October 2014 Water Operations Technician Trainee 1 October 2014 Management Services City Secretary Administrative Assistant (Records)1 October 2014 Economic Development Business Development Program Manager 0.5 October 2014 Planning Planner 1 April 2015 Police Operations Police Officers 3 April 2015 Operations Volunteer In Police Services Coordinator 0.5 April 2015 Code Enforcement Code Enforcement Officer 1 April 2015 TOTAL NEW POSITIONS 34 342 Service Level Improvements & Program Requests Funded in Current Year (by Division) Division / Dept Description FTE Total 1X Downtown & Community Services D&CS Admin HARC Training Funds 2,500 D&CS Admin New Street Signs for Downtown and Old Town Historic District 25,000 D&CS Admin Historic Resource Survey Update 50,000 X D&CS Admin FEMA Matching Grants 5,000 X D&CS Admin CDBG Administration & Matching Funds 10,000 D&CS Admin Home Grant Funds 24,000 TOTAL DOWNTOWN & COMMUNITY SERVICES ADMIN 116,500$ Communications Website & E-Newsletter Upgrade & Social Media Archiving 5,029 Communications City Annual Report 12,000 Communications Media Marketing Specialist (Hire April 2015)1 42,105 Communications GTV Capital Costs 37,520 TOTAL COMMUNICATIONS OFFICE 96,654$ CVB Visitor's Guide & Update CVB Website 12,000 X CVB Group Sales & Servicing Coordinator (Hire June 2015)1 26,584 CVB Advertising, Public Relations & Content Production 69,400 CVB CVB Conference Planner 8,000 X CVB Christmas Wreaths for Main Street & Austin Ave.9,600 X TOTAL CVB 125,584$ Library Temporary On-Call Staff 5,483 Library Expand Programs Library 8,000 TOTAL LIBRARY 13,483$ Main Street Annual Downtown Holiday Lighting 30,000 Main Street Façade Main Street Fund Raisers 10,000 X TOTAL MAIN STREET 40,000$ Parks ADA Self-Assessment Survey 27,150 X Recreation Playground Audits 25,000 X Recreation Aquatic Specialist (April 2015)1 31,395 Recreation Recreation Center Sunday Operations (April 2015)2 66,951 Recreation Senior Parks Maintenance Worker (Trails Lead Position) (Hire June 2015)1 47,066 Recreation Aquatic Supervisor (position upgrade)3,054 Recreation Recreation Specialist Senior (Athletics) (position upgrade)8,551 Recreation Big Belly Solar Trashcans 44,359 X Recreation Community Center Projection Screen & Projector 25,000 X Rec Programs NOLS Wilderness First Responder Recertification Course 7,300 X TOTAL PARKS 285,826$ Facilities Increase in Janitorial Service (5 Days per Weeks)50,000 Facilities Art Center Exterior Cleaning/Mortar Restoration 50,000 X Facilities Rec Center Pool Deck Grinding 90,000 X Facilities Fire Alarm Detection & Notification System - CVB/Fire Station 2 40,000 X Facilities Security System Embedded Technician 60,000 Facilities Grace Heritage Restoration Design 25,000 X TOTAL FACILITIES 315,000$ TOTAL DOWNTOWN & COMMUNITY SERVICES 6 993,047$ 343 Division / Dept Description FTE Total 1X Finance & Administration Finance & Admin Review & Evaluation for FIS 20,000 TOTAL ACCOUNTING 20,000$ Customer Care Customer Information System 4,500,000 Customer Care Customer Demographic Research 4,500 X Customer Care Customer Data Management & Analytics 60,000 TOTAL CUSTOMER CARE 4,564,500$ IT Add Second Systems Administrator Position within IT 1 105,314 IT Replace Current Data Back Up Solution with Improved Product 70,000 IT Desktop Tech Position 1 65,513 IT Expand Virtual Desktop Environment 56,500 X TOTAL IT 297,327$ Vehicle Svcs Integrate Fleet Data Management into the City's EAM System 138,516 X TOTAL VEHICLE SERVICES 138,516$ TOTAL FINANCE & ADMINISTRATION 2 5,020,343$ Fire Emergency Svcs Public Safety - Fire Based Paramedic 9 1,321,885 Emergency Svcs Special Services 20,000 Emergency Svcs Electronic Patient Care Reporting (ePCR)150,000 X Emergency Svcs Travel & Training Increase 15,000 Emergency Svcs Uniforms 6,735 Emergency Svcs CAD/WEBEX Equipment for All Fire Stations 5,000 X Emergency Svcs Educational Supplies 2,500 Emergency Svcs SCBA Supplies & Special Events 2,500 Emergency Svcs Rope & Rescue Team 8,000 Emergency Svcs Dive/Swift Water Team 8,000 Emergency Svcs Medical Supplies 10,000 Emergency Svcs Pipe Band/Honor Guard 2,500 Emergency Svcs Salary for Medical Director & Misc. Operating Costs 75,000 TOTAL EMERGENCY SERVICES 1,627,120$ Support Svcs Haz Mat 5,000 X TOTAL SUPPORT SERVICES 5,000$ TOTAL FIRE 9 1,632,120$ 344 Division / Dept Description FTE Total 1X GUS GUS Admin Office Specialist (Records)1 52,556 TOTAL GUS ADMIN 52,556$ Conservation Landscape Inspector 1 127,398 Conservation Conservation Program Analyst 1 127,398 Conservation Drought Research Project with TAMU Agrilife 48,500 Conservation Water Conservation Education Program 43,700 Conservation Energy Efficiency Education 47,600 TOTAL CONSERVATION 394,596$ T&D Services Add 3rd Utility Locator Due to System Growth 1 126,171 TOTAL T&D Services 126,171$ Electric Sys. Eng.Replace Project Coordinator / Reclassed for EAM 1 133,049 TOTAL ELECTRIC SYSTEM ENGINEERING 133,049$ Energy Svcs Replace Metering Tech Position Reclassed for an EAM Planner 1 75,756 Energy Svcs Tech Services Manager 1 140,403 TOTAL ENERGY SERVICES 216,159$ Inspections Building Plans Examiner (Hire April 2015)1 37,408 TOTAL INSPECTIONS 37,408$ Water Operations Crew Truck & 2 FTE to Maintain Service Level for System Growth 2 230,981 TOTAL WATER OPERATIONS 230,981$ Eng. Support High Resolution Orthophotography Covering the Existing Utility Boundaries 30,000 X TOTAL ENGINEERING SUPPORT 30,000$ TOTAL GUS 10 1,220,920$ Management Services City Secretary Laser fiche License Purchases 8,000 City Secretary Laser fiche Signature Pad Implementation 12,000 X City Secretary Laser fiche Management Services Document Scanning 5,000 City Secretary Records Management Administrative Assistant 1 69,166 City Secretary Archiving Historical Records 18,000 City Secretary Continuation & Maintenance of Laser fiche Program TOTAL CITY SECRETARY 112,166$ Gov. Contracts WCCD Board Increase in Funding per Population & Level II Mosquito Control Program 11,397 Gov. Contracts Renovate Kitchen at Mary Bailey Head Start Center 6,344 X TOTAL GOVERNMENT CONTRACTS 17,741$ Eco Devo Business Development Program Manager 0.5 95,220 TOTAL ECONOMIC DEVELOPMENT 95,220$ HR Safety Program -Consultant 20,000 TOTAL HUMAN RESOURCES 20,000$ Planning Consulting Services 9,500 X Planning Planner (Hire April 2015)1 43,110 Planning Study 2006 Williamson Dr. Gateway Plan Redevelopment & Rezoning 24,525 X TOTAL PLANNING 77,135$ TOTAL MANAGEMENT SERVICES 2.5 322,262$ 345 Division / Dept Description FTE Total 1X Police Admin FATPOT SunGard 3,400 TOTAL ADMINISTRATIVE SERVICES 3,400$ Code Enforcement Code Enforcement Officer (Hire April 2015)1 82,293 TOTAL ANIMAL SERVICES 82,293$ Operations Deployment Unit (Hire April 2015)3 331,246 Operations Emergency Communication Operators 230,000 Operations Volunteer in Police Services (VIPS) Coordinator - Part Time (Hire April 2015)0.5 13,012 Operations Community Services 13,000 Operations Establish Bike Patrol Line Item 8,400 Operations Establish Honor Guard Line Item 5,000 Operations Sexual Assault Nurses Exam Kit (SANE)6,400 Operations Mine-Resistant Ambush Protected (MRAP) vehicle 12,500 Operations Williamson County Children's Advocacy Center (CAC)5,000 Operations Purchase the Cellebrite Equipment to Assist in Cell Phone Forensics 11,000 TOTAL PD OPERATIONS 635,558$ TOTAL POLICE 4.5 721,251$ Transportation Services Admin Review Possibility of a Road Bond to Include Only the Highest Priorities 80,000 X Admin Expansion of Transit Program 117,100 Admin Public Works Director 67,720 TOTAL TRANSPORTATION ADMIN 264,820$ Stormwater Crew Truck 56,545 Stormwater Special Services Increase from $45K to $69K 24,000 Stormwater Establish a Telephone Line Item in Stormwater 5,080 Stormwater Drainage Overtime 6,108 TOTAL STORMWATER 91,733$ Streets Crack Sealing Crew 103,945 Streets Additional Distributor Truck 169,900 TOTAL STREETS 273,845$ TOTAL TRANSPORTATION 630,398$ GRAND TOTAL SERVICE LEVEL/PROGRAM REQUESTS 34 10,540,341$ 346 Internal Service Premiums * With Programs Department Facilities Maintenance Fleet Information Services Joint Services General General Fund Transportation Administration - 9,282 14,592 - - Streets - 235,552 87,549 - - Planning 24,749 4,310 42,635 - - Inspection Services 31,500 35,881 96,953 - - Code Enforcement 0 24,075 26,146 - - Municipal Court 14,811 - 29,725 - - Fire Services Administration 421,602 - 34,875 - - Fire Operations - 229,446 428,464 - - Environmental Services - - 9,695 - - City Manager's Office 49,894 10,458 26,647 - - General Government 18,310 - - 3,087,145 - City Council 44,295 - 21,317 - - Communications 2,234 - 10,413 - - Downtown & Comm Services Admin 29,865 - 18,223 - - Parks 209,963 199,241 99,424 - - Recreation 678,793 25,721 104,131 - - Library 343,481 11,991 98,924 - - Police Administration 462,063 350,114 666,720 - - Animal Services 72,342 17,689 58,828 - - Economic Development & Tourism SRF Convention & Visitors Bureau 80,173 - 18,223 - 10,120 Facilities Maintenance Fund Facilities Maintenance - 44,176 34,680 - - Fleet Management Fund Vehicle Service Center 24,632 47,681 39,634 - - Joint Services Fund Economic Development 20,105 - 10,659 - - Main Street - - 5,207 - - GUS Administration 147,711 4,856 67,867 - - Systems Engineering - 58,178 193,906 - - Finance Administration 31,695 - 24,771 - - Accounting - - 44,588 - - Purchasing 47,074 18,014 39,634 - - Utility Office 48,726 15,325 94,131 - - Environmental & Conservation Services - 28,913 38,781 62,939 - Human Resources 32,426 - 31,976 - - Legal 8,074 - 21,317 - - 347 Internal Service Premiums * With Programs Department Facilities Maintenance Fleet Information Services Joint Services General Information Services Fund Information Resources 47,580 9,163 79,268 - - Electric Fund Administration 14,769 609,384 592,784 4,119,743 954,286 Water Services Fund Administration - 471,828 340,097 3,546,667 444,064 Stormwater Drainage Fund Stormwater Drainage - 135,350 34,047 828,838 150,907 Airport Fund Airport Operations 141,171 30,149 14,592 54,992 122,896 Total 3,048,038 2,626,777 3,601,423 11,700,324 *1,682,273 ** * Excludes intergovernmental charges to GTEC of $53,816 * Excludes intergovernmental charges to GEDCO of $152,864 ** Excludes intergovernmental charges to GTEC of $285,876 Internal Service Fund premiums include: Facilities Maintenance  Contracts and repairs for buildings and grounds are charged to departments based on actual usage and charges. Fleet  Vehicle lease fees are charged to departments based on actual replacement costs. Maintenance fees are charged based on each department’s prior year actual usage. Information Technology  Computer and software lease fees are charged to departments based on replacement costs and estimated usage. Joint Services and General (nondepartment)  Fees are charged to funds receiving administrative services from another fund based on a reasonable, rational basis. The following factors are used as applicable.  relative revenues  relative personnel  number of utility accounts  number of work orders  number of requisitions 348 Transfers Between Funds T R A N S F E RS T O General Fund Gen Cap Projects SRF Fleet Joint Services Information Technology Electric Water Total Out: General Fund 152,386 50,600 53,410 259,172 8,430 523,998 T R Gen Cap Projects 1,208,000 1,208,000 A N SRF 20,000 302,000 698,000 150,850 1,170,850 S F Fleet 243,516 243,516 E R Joint Services 785 785 S Electric 4,464,952 88,675 85,348 14,850 69,108 4,722,933 F R Water Services 2,264,505 75,675 70,016 3,450 2,279,505 4,693,151 O M Airport 3,463 3,463 Stormwater Drainage 173,318 49,500 15,787 238,605 Total In:6,922,775 302,000 152,386 2,170,450 228,024 672,623 2,287,935 69,108 12,805,301 Interfund transfers include: Dividend to General Fund:  Per the City’s Fiscal and Budgetary Policy, utility operations transfer seven percent of its gross billings for utility services to the General Fund as a payment of the profits of the fund or a return on investment. The total return on investment transfer to the General Fund is $6,477,775 in 2014/15. Other Transfers:  Other transfers include grant matching, fire hydrant testing, and equipment purchases to other funds. 349 General Fund Five Year Projections Projected Projected Projected Projected Projected FY15 FY16 FY17 FY18 FY19 Beginning Fund Balance 9,940,212 7,781,182 8,456,137 8,669,808 8,886,275 Revenues Property Taxes 11,109,039 12,706,309 12,770,906 13,612,225 14,274,235 Sales Tax 11,805,875 12,160,051 12,433,652 12,682,325 12,967,678 Sanitation Revenue 6,211,991 6,286,535 6,380,833 6,412,737 6,476,864 Interest 25,000 25,000 25,000 25,125 25,000 Administrative Charges 1,958,029 1,981,525 2,011,248 2,021,304 2,051,674 All Other Revenue 11,504,058 12,234,139 12,478,822 12,541,216 12,792,040 Return on Investment 6,477,775 7,671,681 7,825,115 7,981,617 8,141,249 Transfers In 445,000 460,575 474,392 479,136 483,928 Total Revenues 49,536,767 53,525,815 54,399,968 55,755,685 57,212,668 Expenses Downtown & Community Svcs 9,790,974 9,946,220 10,136,589 10,541,218 10,910,161 Finance & Administration 552,164 568,729 576,515 599,156 620,126 Fire Department 10,759,601 11,077,239 11,520,329 11,981,142 12,400,482 Georgetown Utility Systems 6,456,274 6,649,962 6,915,961 7,192,599 7,444,340 Management Services 2,746,755 2,765,813 2,607,389 2,285,910 2,291,093 Police Department 13,115,778 13,413,903 13,808,811 14,219,516 14,576,232 Transportation 4,663,108 4,725,236 4,789,758 4,735,492 4,615,781 Administrative Expense 3,087,145 3,179,759 3,306,950 3,439,228 3,559,601 Transfers Out 523,998 523,998 523,998 544,958 564,031 Total Expenses 51,695,797 52,850,859 54,186,300 55,539,219 56,981,847 Ending Fund Balance 7,781,182 8,456,138 8,669,805 8,886,274 9,117,096 Contingency 7,695,000 8,456,138 8,669,805 8,886,274 9,117,096 Available Fund Balance 86,182 0 0 0 0 Effective Tax rate Operations & Maint.0.20740 0.26960 0.26170 0.27530 0.28390 Debt Service 0.22660 0.21530 0.25190 0.25390 0.25540 Total 0.43400 0.48490 0.51360 0.52920 0.53930 350 Water Services Fund Five Year Projections The projections assume no water or wastewater retail rate increases through the five year horizon. Rates, capital improvements and system operations are reviewed as part of the annual budget planning process. Strategies for any identified potential shortfalls will be implemented as needed to eliminate the deficits. Projected Projected Projected Projected Projected FY15 FY16 FY17 FY18 FY19 Beginning Fund Balance 19,175,665 19,175,665 19,175,665 19,175,665 19,175,665 Primary Revenues Water Services 31,698,634 31,918,557 32,293,119 32,674,113 33,061,668 Other Water 2,986,000 3,065,500 3,147,385 3,231,727 3,318,598 Wastewater 1,115,500 1,143,850 1,173,051 1,203,127 1,234,106 Irrigation 0 0 0 0 0 Total Primary Revenue 35,800,134 36,127,907 36,613,555 37,108,967 37,614,372 Primary Expenses Contracts 9,951,126 10,048,159 10,147,672 10,249,732 10,354,407 Water 11,861,736 12,301,883 12,477,999 12,648,126 12,949,937 Wastewater 2,611,959 2,683,223 2,756,624 2,832,228 2,910,100 Irrigation 181,775 190,864 200,407 210,427 220,949 CIP Expense 15,885,500 20,110,000 20,319,000 23,634,000 34,445,000 Total Primary Expenses 40,492,096 45,334,128 45,901,703 49,574,513 60,880,393 Other Revenue SIP Fees 634,250 253,700 0 0 0 Other 171,908 171,908 171,908 171,908 171,908 Bond Revenue 7,990,000 14,040,000 12,163,000 11,919,000 22,116,000 Total Other Revenue 8,796,158 14,465,608 12,334,908 12,090,908 22,287,908 Other Expenses Transfer Out 2,501,940 1,994,299 2,020,518 2,047,188 2,074,317 CAFR Adjustment 0 0 0 0 0 Debt Service 4,575,367 4,442,322 5,505,098 6,480,365 7,083,264 Total Other Expenses 7,077,307 6,436,621 7,525,616 8,527,552 9,157,581 Ending Fund Balance 16,202,554 17,998,431 14,696,810 10,273,474 9,039,972 Contingency 4,566,000 4,566,000 4,566,000 4,566,000 4,566,000 351 Electric Fund Five Year Projections The projections assume no retail electric rate increases through the fiveyear horizon. Rates, purchased power costs and system operations are reviewed as part of the annual budget planning process. Strategies for any identified potential shortfalls will be implemented over time to mitigate the potential deficit. Projected Projected Projected Projected Projected FY15 FY16 FY17 FY18 FY19 Beginning Fund Balance 11,686,069 11,799,614 13,036,039 14,507,749 14,105,951 Primary Revenues Electric Services 63,130,214 62,219,329 64,750,718 64,969,280 66,918,358 Other 1,085,000 1,106,300 1,128,239 1,150,836 1,174,111 Total Primary Revenues 64,215,214 63,325,629 65,878,957 66,120,116 68,092,470 Primary Expenses Contracts 37,286,896 35,098,840 36,383,575 37,589,387 38,717,069 Operations 13,799,472 13,824,825 14,209,719 14,606,161 15,014,496 Franchise Fees 1,658,452 1,712,535 1,768,239 1,825,615 1,880,383 CIP Expense 10,086,400 6,824,000 5,800,000 3,800,000 3,800,000 Total Primary Expenses 62,831,221 57,460,199 58,161,533 57,821,163 59,411,948 Other Revenue Interest 26,000 26,000 26,000 26,000 26,000 Other 1,030,000 1,030,000 1,030,000 1,030,000 1,030,000 Bond Revenue 6,473,000 3,269,000 2,245,000 245,000 245,000 Total Other Revenue 7,529,000 4,325,000 3,301,000 1,301,000 1,301,000 Other Expenses Transfer Out 4,725,674 4,364,799 4,501,896 4,643,106 4,777,899 CAFR Adjustment 0 0 0 0 0 Debt Service 4,073,775 4,589,206 5,044,818 5,358,646 5,252,827 Total Other Expenses 8,799,449 8,954,005 9,546,714 10,001,751 10,030,726 Ending Fund Balance 11,799,614 13,036,039 14,507,749 14,105,951 14,056,746 Contingency 3,525,000 3,525,000 3,525,000 3,525,000 3,525,000