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Home My WebLink About04 FinancialSummary-compressed FY2016 Annual Budget FINANCIAL SUMMARY A view of Lake Georgetown from the dam 49 FY2016 Annual Budget FINANCIAL SUMMARY City Operations by Fund ............................ 51 City Operations by Division/Fund .............. 52 Financial Summary Budgeted Revenues ............................... 53 Budgeted Expenses by Division .............. 54 Major Revenue Sources ......................... 55 All Funds Summary: by Fund by Division ... 58 All Funds Summary: by Fund by POC ......... 60 Fund Structure ........................................... 62 50 FY2016 Annual Budget CITY OPERATIONS AND DEPARTMENTS BY FUND This page visually represents the Departments of the City listed by their funding source. This chart also shows the primary focus of each Department, depicted by icons. 51 FY2016 Annual Budget CITY OPERATIONS AND DEPARTMENTS BY DIVISION/FUND This page visually represents the Divisions and Departments of our City with their funding sources. This chart also shows what City Council Strategic Goal is the primary focus of each Department, depicted by icons. 52 FY2016 Annual Budget FINANCIAL SUMMARY FY2016 BUDGETED REVENUES Property Taxes 9% Sales Taxes 5% Charges for Services 11% Grants, Interest, Fees & Other 30% Utility Revenues 40% Interfund Transfers 5% FY2016 Budgeted Revenues Revenues FY2014 Actual FY2014 Budget FY2015 Proj Budget FY2016 Budget Property taxes 19,219,430 20,676,321 21,181,321 22,872,349 Sales taxes 13,541,750 14,531,625 13,917,500 14,278,437 Bond Proceeds 24,991,000 25,063,000 25,063,000 37,762,000 Charges for Services 22,527,393 29,880,792 28,731,399 28,690,245 Capital Recovery Fees 4,127,394 3,994,600 5,628,570 5,945,574 Special Improvement Fees 948,643 814,250 835,858 892,373 Utility Revenues 95,166,540 104,260,755 102,691,701 105,435,442 Grants 5,352,116 1,125,580 1,108,149 488,304 Interest 303,709 299,070 514,394 294,217 Other Revenue 24,781,663 21,272,642 23,083,567 34,157,397 Interfund Transfers - ROI, Etc.13,333,072 14,077,704 14,494,689 13,432,759 Total Revenues 224,292,710 235,996,339 237,250,148 264,249,097 Budgeted revenues total $264.2 million in FY2016. The primary revenue categories are comprised of property taxes, sales tax, charges for services, utility revenues, and bond proceeds. Overall, budget revenues are 11.13% higher than FY2015 year-end projections. The growth in revenues is largely attributable to increases in bond proceeds. In FY2016, the City will issue the first $20 million of the 2015 voter approved Transportation Bond. Due to population growth and increased valuation of existing property, property tax revenue is budgeted to increase by 7.98% relative to year-end projections. Utility revenues are budgeted to increase by $2.74 million, an increase of 2.67%. Sales tax is projected to increase by 2.5% in FY2016. Budgeted expenditures exceed budgeted revenues, therefore, there will be a drawdown of fund balance in several funds. 53 FY2016 Annual Budget FY2016 BUDGETED EXPENSES BY DIVISION Downtown & Community Services 6% Finance & Administration 6% Fire Services 4% Georgetown Utility Systems 20% Purchased Power 12% Management Services 5% Police Services 5% Transportation 3% Capital Improvements 26% Debt Payments 8% Interfund Transfers 5% FY2016 Budgeted Expenses Expenses FY2014 Actual FY2014 Budget FY2015 Proj Budget FY2016 Budget Downtown & Community Services 10,271,422 12,109,927 11,884,336 16,396,057 Finance & Administration 15,642,804 17,252,249 16,917,296 16,331,552 Fire Services 9,774,756 12,563,155 11,585,684 13,079,631 Georgetown Utility Systems 40,849,943 51,512,850 50,668,714 55,789,533 Purchased Power 38,384,323 37,073,038 37,073,038 34,000,000 Management Services 10,825,613 14,039,250 13,537,923 14,778,161 Police Services 11,541,970 13,439,841 13,205,682 14,319,849 Transportation 9,348,189 9,884,317 9,124,676 9,765,277 Capital Improvements 39,552,668 58,456,225 53,605,288 72,906,484 Debt Payments 18,370,918 19,987,494 20,111,804 21,533,021 Debt Issuance Costs 123,047 357,489 345,545 482,800 Interfund Transfers 13,333,072 14,077,704 14,494,689 13,432,759 Total Uses & Expenses 218,018,725 260,753,539 252,554,675 282,815,124 Budgeted expenses total $282.8 million in FY2016. The primary expense categories are comprised of capital improvements, public safety, debt service, and the Georgetown Utility System (G.U.S.), including purchased power. Overall, budget expenses are 11.19% higher than FY2015 year-end projections. The growth in expenses is largely attributable to increases in capital improvements due to the first issuance of debt for the 2015 Transportation Bond. Debt service payments are budgeted to increase by 7.06% in FY2016. Expenses in the Fire Services category are projected to increase with the expansion of the EMS program. It is anticipated increase revenue from medical transports will defray some of these costs. Overall, public safety expenses are budgeted to increase by 10.52% in FY2016. Expenses in G.U.S. are budgeted to increase by $5.01 million due to new positons in Water Services and Electric Funds. Purchased power expenses are projected to decrease in FY2016 by $3.03 M due to new long term contracts signed by the City. 54 FY2016 Annual Budget MAJOR REVENUE SOURCES Property Taxes: Taxes are levied on January 1 of each year and are considered past due on February 1 of the following year. The Williamson Central Appraisal District determines the value for each property in the city. Property tax rolls are certified in July and the tax rate is adopted in September, along with the budget. The City’s tax collector, the Williamson County Tax Collector, sends statements in October to each taxpayer. Budgeted revenues from ad valorem taxes total $22.87 million and represent 8.65% of overall revenues for the City. The adopted property tax rate for FY2016 is $0.4340 per $100 valuation. The tax rate is the same as the FY2015 rate and represents the second lowest rate in the greater Austin MSA. For FY2016, 0.20716 cents per $100 valuation is allocated for Maintenance and Operations (O&M). The remaining 0.22684 cents per $100 valuation is allocated for Interest and Sinking (I&S) to retire general debt. Due to projected population growth and new development in the pipeline, it is anticipated that property tax revenue will continue to grow for the next few years. Sales tax revenue is budgeted at $21.52 million and represents 8.14% of total revenues. The City’s sales tax rate is 8.25% for goods or services sold or delivered within the boundaries of the City. The tax is collected by businesses making the sale and is remitted to the State Comptroller of Public Accounts on a monthly, quarterly, or annual basis. Of the 8.25% tax, the State retains 6.25% and distributes 2% to the City.  1.000% is used for general operating purposes.  0.500% is used for transportation improvements through the Georgetown Transportation Enhancement Corporation (GTEC), the City’s 4B Economic Development Corporation, authorized in May 2001.  0.125% is for Georgetown Economic Development Corporation (GEDCO), the City’s 4A Economic Development Corporation, approved in May 2005.  0.125% is for property tax relief, approved in May 2005. 9.09 9.81 9.81 11.11 12.00 6.83 7.39 9.70 9.35 10.87 $0 $5 $10 $15 $20 $25 FY2012 FY2013 FY2014 FY2015 FY2016 Mi l l i o n s Property Tax Revenue General Fund Revenue Debt Service Revenue Component FY2015 FY2016 O&M 0.20738 0.20716 I&S 0.22662 0.22684 Total 0.43400 0.43400 Retail 52% Wholesale 5% City Retained 4% Food 11% Information 8% Manufacturing 5% Other 13% Real Estate 2% FY2015 Sales Tax Distribution $15.55 $16.56 $18.65 $20.46 $20.98 $21.53 $0 $5 $10 $15 $20 $25 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Mi l l i o n s Sales Tax Collections 55 FY2016 Annual Budget  0.250% is used for street maintenance, with a sunset revision approved in November 2010, and the tax reauthorized in November 2014. Overall, the City has seen a slowing of sales tax collections over the past 18 months. The hyper growth seen in FY2013 and FY2014 has given way to a more normalized growth pattern. The slowing trend of the City correlates with the overall slowing trend seen in the State of Texas as a whole. Moving into FY2016, forecasting models project the City’s sales tax bases will grow by 2.5%. It is anticipated that the City could see stronger growth trends in FY2017 and FY2018 when possible future retail development comes on line. The City uses detailed, confidential, Georgetown-specific sales tax information received from the State, as well as permitting data, and aggregate sales tax information from all Texas cities to produce a sector based, multiple regression predictive model. The model is reviewed and updated monthly. Utility Revenue charges for electric, water and wastewater services are anticipated to generate $105.4 million in FY2016, which represents 39.9% of total revenues. Generally, utility revenue projections are based on five-year forecasting models for each utility. The City prepares a financial model of each utility, forecasting revenues, expected infrastructure needs, and other expected expenses. The models are prepared based upon assumptions regarding customer growth, the City’s five year capital improvements plans, forecasted increases in costs, including personnel, and historical data. The models serve as a planning tool to forecast the ability to pay cash for infrastructure, anticipate debt needs for the upcoming five to ten year period, as well as predict rate increases for customers. Electric and Water Revenues:  Calculated on a five-year rolling average of per capita consumption in order to hedge against variations in weather conditions.  Growth estimates are based upon building permits, expected build out of subdivisions and other planning and development activity.  Assumes a 3% peak load growth for Electric through the next five years, as the City’s southern electric service area continues to develop.  Assumes a 1 - 2% customer growth for Water for the next five years. Wastewater Revenues:  Assumes a 1 - 2% customer growth over the next five years.  Flat rates allocate cost equitably between all system users, and thus eliminates any cross-class subsidies. 16.43 16.33 17.31 21.97 22.64 8.59 8.60 8.89 9.32 9.60 $0 $5 $10 $15 $20 $25 $30 $35 FY2012 FY2013 FY2014 FY2015*FY2016* Mi l l i o n s Water Service Revenues Water Wastewater * Projected 58.40 53.78 58.02 60.23 63.40 $48 $50 $52 $54 $56 $58 $60 $62 $64 $66 FY2012 FY2013 FY2014 FY2015*FY2016* Mi l l i o n s Electric Revenues Electric * Projected 56 FY2016 Annual Budget Airport Revenue consists primarily of fuel sales, T- hangar rentals, and tie down fees. Throughout FY2015, the City engaged in activities to improve the business model of the Airport, including a third party audit of operations, completing a lease hangar survey, and implementing new fuel rates. All of these moves were designed to restore the Airport fund to self- sufficient status. Its anticipated increased fuel rates and hangar leases will result in $3.60 million of revenue. The plan projects the fund to become self-sufficient in three to five years. Stormwater Drainage Revenue is collected on a per unit basis to pay for maintenance of drainage, detention and filtration infrastructure and to pay for the debt service on bonds issued for major capital drainage improvements. A rate analysis was finalized in 2012. The analysis included an evaluation of the current commercial and residential calculations for impervious cover, which has not been reviewed since the fee was established in 1995. The Stormwater drainage fee was adjusted to $4.75 per month for residential customers, and $4.75 per 2,808 square feet for impervious cover per month to non-residential customers in March 2012. The fee was raised to $5.25 in October 2013 to fund additional remediation work and other projects. For FY2016, the rate has been adjusted to $6.50 to help cover the impacts of Municipal Separate Storm Sewer System (MS4) requirements. Capital Recovery Fee Revenue consist of Service Improvement Fees and Impact Fees. Service Improvement fees are collected from several developments, such as Sun City, on a per unit basis to offset costs of infrastructure improvements to serve these developments. The fees, similar to impact fees, are collected for water and wastewater improvements as part of the development agreements. In 1996, the City adopted water and wastewater Impact Fees under Chapter 395 of the Texas Local Government Code. These revenues are used as partial funding for qualifying water and wastewater infrastructure projects for increased system capacity. Interfund Transfers includes transfers between funds (e.g. the return on investment or ROI transferred to the general fund from the utility fund each year). Miscellaneous Revenues includes interest income, grant revenue, franchise fees, and environmental service revenue, which is associated with the Solid Waste and Recycling contract the City has with Texas Disposal Systems (TDS). $2 . 8 7 $2 . 8 8 $2 . 9 8 $2 . 7 9 $3 . 6 0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 FY2012 FY2013 FY2014 FY2015 FY2016 Mi l l i o n s Airport Revenue $2 . 1 2 $2 . 1 9 $2 . 5 1 $2 . 5 7 $3 . 2 6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 FY2012 FY2013 FY2014 FY2015 FY2016 Mi l l i o n s Stormwater Revenue 57 FY2016 Annual Budget ALL FUNDS SUMMARY BY FUND/BY DIVISION Total Budget General Fund Special Revenue Funds General Capital Projects Funds General Debt Service Fund Beginning Fund Balances / Working Capital 67,854,178 9,264,307 3,708,225 5,689,710 1,493,107 SOURCES & REVENUES Property taxes 22,872,349 11,716,698 255,651 - 10,900,000 Sales taxes 14,278,437 11,587,812 2,690,625 - - Bond Proceeds 37,762,000 - - 29,850,000 - Charges for Services 28,690,245 1,922,100 2,053,000 - - Capital Recovery Fees 5,945,574 - - - - Special Improvement Fees 892,373 250,000 - - - Utility Revenues 105,435,442 6,554,000 - - - Grants 488,304 - 238,304 - - Interest 294,217 25,000 26,660 75,000 2,000 Other Revenue 34,157,397 12,458,450 2,369,337 3,405,000 1,686,759 Interfund Transfers - ROI, Etc.13,432,759 8,048,263 891,885 1,232,000 265,800 Total Revenues 264,249,097 52,562,323 8,525,462 34,562,000 12,854,559 USES & EXPENSES Downtown & Community Services 16,396,057 10,250,696 2,666,621 - - Finance & Administration 16,331,552 561,439 71,171 - - Fire Services 13,079,631 11,284,109 1,795,522 - - Georgetown Utility Systems 55,789,533 6,794,002 276,547 - - Purchased Power 34,000,000 - - - - CRR Credits - - - - - Management Services 14,778,161 5,764,209 - - - Police Services 14,319,849 13,946,482 373,367 - - Transportation 9,765,277 4,187,882 - - - Capital Improvements 72,906,484 - 3,362,000 35,881,549 - Debt Payments 21,533,021 - - - 12,810,464 Debt Service - New - - - - - Debt Issuance Costs 482,800 - - 402,000 - Interfund Transfers 13,432,759 943,624 1,387,008 1,153,000 - Total Uses & Expenses 282,815,124 53,732,443 9,932,236 37,436,549 12,810,464 Ending Fund Balance / Working Capital 49,288,151 8,094,187 2,301,451 2,815,161 1,537,202 RESERVATIONS Arterial 625,000 - 625,000 - - Contingency 22,330,000 7,925,000 200,000 - - Reserved for Capital (Debt Proceeds)11,000,000 - - Rate Stabilization/Credit Reserve 5,000,000 - - - Perpetual Reserve 250,000 - 250,000 - - Capital Projects/Other 7,016,831 - 1,226,451 2,815,161 - Available Fund Balance / Working Capital 3,066,320 169,187 0 0 1,537,202 (1) Includes Airport & Stormwater Drainage (2) Includes debt service payments on behalf of GTEC offset by transfer from GTEC (3) Includes debt service payments on behalf of GEDCO offset by transfer from GEDCO GOVERNMENTAL FUND TYPES 58 FY2016 Annual Budget Electric Fund Water Fund Other Enterprise Funds (1) Internal Service Funds Beginning Fund Balances / Working Capital 8,231,940 34,385,214 1,761,528 3,320,147 SOURCES & REVENUES Property taxes - - - - Sales taxes - - - - Bond Proceeds 1,500,000 6,000,000 250,000 162,000 Charges for Services - - - 24,715,145 Capital Recovery Fees - 5,945,574 - - Special Improvement Fees - 642,373 - - Utility Revenues 63,400,000 32,243,822 3,237,620 - Grants - - 250,000 - Interest 17,425 119,232 2,400 26,500 Other Revenue 1,782,350 3,441,051 3,617,550 5,396,900 Interfund Transfers - ROI, Etc.- 69,108 - 2,925,703 Total Revenues 66,699,775 48,461,160 7,357,570 33,226,248 USES & EXPENSES Downtown & Community Services - - - 3,478,740 Finance & Administration - - - 15,698,942 Fire Services - - - - Georgetown Utility Systems 15,937,179 27,428,713 - 5,353,092 Purchased Power 34,000,000 - - - CRR Credits - - - - Management Services - - - 9,013,952 Police Services - - - - Transportation - - 5,577,395 - Capital Improvements 6,098,000 25,757,000 1,807,935 - Debt Payments 3,470,507 4,575,034 677,016 - Debt Service - New - - - - Debt Issuance Costs 16,800 60,000 4,000 - Interfund Transfers 5,611,766 4,013,527 297,384 26,450 Total Uses & Expenses 65,134,252 61,834,274 8,363,730 33,571,176 Ending Fund Balance / Working Capital 9,797,463 21,012,100 755,368 2,975,219 RESERVATIONS Arterial - - - - Contingency 4,775,000 9,180,000 250,000 - Reserved for Capital (Debt Proceeds)10,500,000 500,000 - Rate Stabilization/Credit Reserve 5,000,000 - - - Perpetual Reserve - - - - Capital Projects/Other - - - 2,975,219 Available Fund Balance / Working Capital 22,463 1,332,100 5,368 0 PROPRIETARY FUND TYPES Other Enterprise Funds 59 FY2016 Annual Budget ALL FUNDS SUMMARY BY FUND/BY PERSONNEL-OPERATING-CAPITAL Total Budget General Fund Special Revenue Funds General Capital Projects Funds General Debt Service Fund Beginning Fund Balances / Working Capital 67,854,178 9,264,307 3,708,225 5,689,710 1,493,107 SOURCES & REVENUES Property taxes 22,872,349 11,716,698 255,651 - 10,900,000 Sales taxes 14,278,437 11,587,812 2,690,625 - - Bond Proceeds 37,762,000 - - 29,850,000 - Charges for Services 28,690,245 1,922,100 2,053,000 - - Capital Recovery Fees 5,945,574 - - - - Special Improvement Fees 892,373 250,000 - - - Utility Revenues 105,435,442 6,554,000 - - - Grants 488,304 - 238,304 - - Interest 294,217 25,000 26,660 75,000 2,000 Other Revenue 34,157,397 12,458,450 2,369,337 3,405,000 1,686,759 Interfund Transfers - ROI, Etc.13,432,759 8,048,263 891,885 1,232,000 265,800 Total Revenues 264,249,097 52,562,323 8,525,462 34,562,000 12,854,559 USES & EXPENSES Personnel 55,782,912 30,683,181 1,511,085 - - Operating 110,781,607 20,904,672 2,474,534 - - Capital 7,895,541 1,200,966 1,197,609 - - Capital Improvements 72,906,484 - 3,362,000 35,881,549 - Debt Payments 21,533,021 - - - 12,810,464 Debt Service - New 0 Debt Issuance Costs 482,800 - - 402,000 - Interfund Transfers 13,432,759 943,624 1,387,008 1,153,000 - Total Uses & Expenses 282,815,124 53,732,443 9,932,236 37,436,549 12,810,464 Ending Fund Balance / Working Capital 49,288,151 8,094,187 2,301,451 2,815,161 1,537,202 RESERVATIONS Arterial 625,000 - 625,000 - - Contingency 22,330,000 7,925,000 200,000 - - Rate Stabilization/Credit Reserve 5,000,000 - - - - Perpetual Reserve 250,000 - 250,000 - - Capital Projects/Other 18,016,831 - 1,226,451 2,815,161 - Available Fund Balance / Working Capital 3,066,320 169,187 0 0 1,537,202 (1) Includes Airport & Stormwater Drainage (2) Includes debt service payments on behalf of GTEC offset by transfer from GTEC (3) Includes debt service payments on behalf of GEDCO offset by transfer from GEDCO GOVERNMENTAL FUND TYPES 60 FY2016 Annual Budget Electric Fund Water Fund Other Enterprise Funds (1) Internal Service Funds Beginning Fund Balances / Working Capital 8,231,940 34,385,214 1,761,528 3,320,147 SOURCES & REVENUES Property taxes - - - - Sales taxes - - - - Bond Proceeds 1,500,000 6,000,000 250,000 162,000 Charges for Services - - - 24,715,145 Capital Recovery Fees - 5,945,574 - - Special Improvement Fees - 642,373 - - Utility Revenues 63,400,000 32,243,822 3,237,620 - Grants - - 250,000 - Interest 17,425 119,232 2,400 26,500 Other Revenue 1,782,350 3,441,051 3,617,550 5,396,900 Interfund Transfers - ROI, Etc.- 69,108 - 2,925,703 Total Revenues 66,699,775 48,461,160 7,357,570 33,226,248 USES & EXPENSES Personnel 6,130,749 4,469,239 938,978 12,049,680 Operating 43,655,430 22,466,873 4,618,417 16,661,681 Capital 151,000 492,601 20,000 4,833,365 Capital Improvements 6,098,000 25,757,000 1,807,935 - Debt Payments 3,470,507 4,575,034 677,016 - Debt Service - New Debt Issuance Costs 16,800 60,000 4,000 - Interfund Transfers 5,611,766 4,013,527 297,384 26,450 Total Uses & Expenses 65,134,252 61,834,274 8,363,730 33,571,176 Ending Fund Balance / Working Capital 9,797,463 21,012,100 755,368 2,975,219 RESERVATIONS Arterial - - - - Contingency 4,775,000 9,180,000 250,000 - Rate Stabilization/Credit Reserve 5,000,000 - - - Perpetual Reserve - - - - Capital Projects/Other - 10,500,000 500,000 2,975,219 Available Fund Balance / Working Capital 22,463 1,332,100 5,368 0 Other Enterprise Funds PROPRIETARY FUND TYPES 61 FY2016 Annual Budget FUND STRUCTURE The City uses fund accounting, a system in which accounts are organized on the basis of fund and each fund is considered to be a separate accounting entity. All funds, both governmental and proprietary, are subject to appropriation. Basis of Accounting: Governmental Funds use the modified accrual basis of accounting. Revenues are recognized when they become available and measurable. Expenditures are recognized in the accounting period in which they are incurred. Proprietary Funds use the full-accrual basis of accounting. Revenues are recognized when they are earned and measurable. Expenses are recognized when they are incurred regardless of timing or related cash flows. 62