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Home My WebLink About07 Other Enterprise Funds-compressed FY2016 Annual Budget OTHER ENTERPRISE FUNDS Airfest 2015 137 FY2016 Annual Budget OTHER ENTERPRISE FUNDS Airport Fund Summary ............................ 139 Airport Operations ................................... 142 Stormwater Drainage Fund Summary ..... 144 Stormwater Drainage .............................. 146 NEW POSITIONS FY2016 Stormwater Fund MS4 Program Administrator ..................... 1 Street Sweeper/Inlet Maint. Spec............. 1 TOTAL NEW POSITIONS FY2016 ......................... 2 The Other Enterprise Funds embrace the City’s vision of being A Premiere Community by delivering excellent Airport operations and overseeing the City’s stormwater drainage to reduce the potential for damage to public health, safety, property, and the environment. 138 FY2016 Annual Budget Salaries & Benefits 9% Operations 90% Transfers Out 1% FY2016 Operating Expenses Fuel & Terminal Sales 79% Leases & Rentals 19% All Other Revenues 2% FY2016 Operating Revenues AIRPORT FUND The Airport Fund is designed to be a self-supporting enterprise, funded by user charges. Over the past several years, the fund’s expenses have out-paced revenues, resulting in a drawdown of fund balance. In order to restore the fund to self-supporting status, airport operations and financial conditions have been carefully evaluated. In the past year, several steps have been taken to find solutions for the fund including the evaluation and implementation of new lease rates, performing a third party audit of airport operations, and increasing fuel margins. Through the investments made in operations, management, and technology, the City’s goal is to have the Airport Fund self-supporting within three to five years. FISCAL YEAR 2015 Total operating revenues are projected to be $2,786,365, 13.2% lower than the current budget. The lower than expected revenue is primarily the result of a decrease in fuel sales. Heavier than normal rain totals in the spring and early summer caused less gallons to be sold than budgeted. Non-operating revenue is projected to end the fiscal year at $886,186. Total operating expenditures are projected to be $2,813,126, 14.9% less than the current budget. The decrease in expenses is directly tied to the savings in fuel costs and fuel purchases. Non-operating expenses are projected to end the fiscal year at $193,468, including funds for capital construction and debt service payments. Total fund balance is projected to be ($106,977) as of September 30, 2015 and is addressed in FY2016. The unused bond proceeds are shown as restricted in the fund balance calculation. In the current fiscal year, the contingency requirements of the fund are being covered through the citywide contingency reserve. FISCAL YEAR 2016 Budgeted operating revenues total $3,600,950. Overall, revenues are projected to grow by 14.16% relative to the FY2015 Budget. The increase in revenue is driven by increases in lease and tie down rates, increases in fuel margin and increases in projected gallons sold. The chart to the right identifies operating revenue by source. Non- operating revenues total $25,000 from the TxDOT RAMP Grant. Base budgeted operating expenses total $3,361,112, an increase of 4.02% relative to the FY2015 budget. The increase in base budget is related to increases in routine and preventive maintenance which had been missing in prior budgets. Approved Enhancements total $89,000 and include a FBO Management Software, increase for credit card fees, and foreign object debris removal equipment. 139 FY2016 Annual Budget All operating expenses total $3,450,122 and represent an increase of 6.78% from the FY2015 Budget. Total fund balance is budgeted to be ($14,152) as of September 30, 2016. Currently, the Airport Fund does not include any contingency funds as required by the City’s Fiscal and Budgetary Policy. Additionally, the $59,435 debt service payment from bonds issued in May 2015 are being diverted and funded by the General Capital Project. It is the goal of staff to have the fund fully self-sustaining within three to five years. As the health of the fund improves, the full debt service and full contingency requirements will be returned to the fund. Although the projected fund balance is negative, the fund is bettering projected balance from both the FY2014 budget and the Weaver Audit Report. The better than projected balances are due to changes already implemented in the current fiscal year namely new lease rates and fuel margins. 140 FY2016 Annual Budget AIRPORT FUND INCOME STATEMENT FY2014 Actual FY2015 Budget FY2015 Proj. Actual FY2016 Base FY2016 Changes FY2016 Prop Budget Beginning Fund Balance 342,904 21,612 82,210 748,167 - 748,167 - Operating Revenue - Fuel & Terminal Sales 2,519,280 2,471,050 2,123,610 2,876,150 - 2,876,150 Leases & Rentals 579,169 625,600 623,950 684,400 - 684,400 Interest 189 4,000 15 400 - 400 All Other Revenues 155,559 53,600 38,790 40,000 - 40,000 Transfers In 131,000 - - - - - Operating Revenue 3,385,197 3,154,250 2,786,365 3,600,950 - 3,600,950 - Operating Expense - Transportation 3,499,315 3,227,462 2,809,663 3,360,032 75,000 3,435,032 Transfers Out 27,195 3,463 3,463 1,080 14,000 15,080 Operating Expense 3,526,510 3,230,925 2,813,126 3,361,112 89,000 3,450,112 - Available Fund Balance 201,591 (55,063) 55,449 988,005 (89,000) 899,005 - Policy Compliance (Operating Revenues - Operating Expenses 239,838 (89,000) 150,838 - Non Operating Revenue - Grants 25,056 16,186 25,000 25,000 Bond Proceeds 870,000 870,000 - Non Operating Revenue 25,056 870,000 886,186 25,000 - 25,000 - Non Operating Expense - Capital Projects - 870,000 14,856 857,935 - 857,935 Debt Payments 144,437 178,612 178,612 80,222 - 80,222 Non Operating Expense 144,437 1,048,612 193,468 938,157 938,157 - Ending Fund Balance 82,210 (233,675) 748,167 74,848 (89,000) (14,152) - Adjustments & Reservations - Contingency 150,000 119,358 - Restricted Bond Proceeds - - (855,144) - - - - Available Fund Balance (67,790) (353,033) (106,977) 74,848 (89,000) (14,152) 141 FY2016 Annual Budget AIRPORT TRANSPORTATION AIRPORT 5.5 FTES 100% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Executed first phase of Airport Business Analysis with creation of improved maintenance and operations at the Airport.  Completed construction of airfield lighting upgrade project for Runways 11/29 and 18/36.  Coordinated review and bidding of Capital Improvement Projects (CIP) related to taxiway and safety lighting improvements related to Federal Aviation Administration safety compliance at the Airport.  Prepared and submitted FY2016 airport budget to better breakdown and track airport expenses for future and continual evaluation.  Established Pavement Management Program to include monthly pavement inspections.  Launched Electronic Gate Preventative Maintenance Program to improve gate operations and airport security.  Began quarterly inspection program for Fixed Base Operator (FBO) operated fuel trucks.  Implemented expanded Airport Self-Inspection Program and Foreign Object Debris Removal Program. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Minimize the environmental impact of the Airport.  Operate the Airport as a self-supporting enterprise, whereby costs are minimized with maximum efficiency.  Ensure the safety of the flying public.  Develop Airport Preventative Maintenance Program and purchase debris removal equipment to help meet this goal.  Implement recommendations of management review report (Airport Business Analysis).  Finalize design and bid parallel taxiway improvements, fuel farm relocation and airfield improvements for TxDOT FY2015 CIP program.  Introduce technology solution for Airport Business Operations area.  Update FBO Management Software to improve Airport management.  Replace existing Tower voice recording system.  Develop Airport Master Plan Update process by working with TxDOT for FY2016 implementation.  Update to Airport Rules and Regulations and Minimum Standards. PRIMARY COUNCIL STRATEGIC GOALS Notable Budget Item FBO Management Software $20,000 Pavement Management Program $20,000 Debris Removal Equipment $24,000 DEPARTMENT DESCRIPTION The City of Georgetown Municipal Airport provides general aviation services to the public. The airport staff is responsible for the day-to- day operations and maintenance, which include the management of fuel sales concessions, leases for City-owned facilities, and ground maintenance. The Airport provides 24-hour operation of a 5,000-foot main runway, related taxiways, ramps, and navigational aids. The City also supports an Air Traffic Control Tower, with staffing provided by the Federal Aviation Administration (FAA). The Airport must always be in compliance with state and federal rules and regulations. In addition, the airport staff provides support to the Georgetown Transportation Advisory Board and the City Council. 142 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel 279,769 350,253 345,561 321,471 - 321,471 Operations 3,219,546 2,877,209 2,464,102 3,038,561 55,000 3,093,561 Capital - - - - 20,000 20,000 Total Departmental Budget 3,499,315$ 3,227,462$ 2,809,663$ 3,360,032$ 75,000$ 3,435,032$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Jet fuel sold (gal.)400,000 400,000 420,000 420,000 0 420,000 2. Avgas sold (gal.)248,000 245,000 250,000 250,000 0 250,000 3. Airport Operations (Annual)72,000 70,000 73,000 73,000 0 73,000 Performance Measures 1. Man hrs / 10 gal of fuel sold 0.070 0.070 0.070 0.070 0.000 0.070 2. Airport expenses / operations 8.05 8.10 8.10 8.10 0.00 8.1 3. T-hanger occupancy rate 100%100%100%100%0%100% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Oc t De c Fe b Ap r Ju n Au g Oc t De c Fe b Ap r Ju n Au g Oc t De c Fe b Ap r Ju n Au g 2013 2014 2015 Jet A Gallons Sold 0 5,000 10,000 15,000 20,000 25,000 30,000 Oc t De c Fe b Ap r Ju n Au g Oc t De c Fe b Ap r Ju n Au g Oc t De c Fe b Ap r Ju n Au g 2013 2014 2015 AV Gas Gallons Sold 143 FY2016 Annual Budget Transporta tion 89% Transfers Out, ISF 2.30% Transfers - ROI 9% FY2016 Stormwater Fund Operating Expenses Storm- water Fees 99% Interest 0.06% Other Revenue 1% FY2016 Stormwater Fund Operating Revenues STORMWATER DRAINAGE FUND The Stormwater Drainage Fund is used to account for all operating and maintenance activities of the City’s drainage system and the debt payments for bonds issued for capital improvement. FISCAL YEAR 2015 Total revenues are projected to be $4,964,778, 0.44% higher than the current budget. The Stormwater fee is a monthly charge on utilities bill. The billed amount is based on a calculation of impervious cover of the property and the rate per unit. Total expenditures are projected to be $4,591,443, 14.92% less than the current budget. Most departments are expected to finish the current fiscal year within budget. The fund is expected to have less CIP expense than budgeted due to delayed buyouts of flood plain properties. The fund is not expected to meet its bond coverage requirement as set by internal financial policy. This is due to known larger expenditures, and phasing in of rate changes to offset them. The fund should return to self-sustaining coverage in two to three years. Total fund balance is projected to be $1,013,361 as of September 30, 2015, which is equal to 49% of operating expenditures. The City’s Fiscal and Budgetary requirement sets a contingency level of $150,000. Proceeds from bonds issued in previous year have been reserved to fund capital improvements in the upcoming year. Remaining fund balance is available to fund non-recurring expenditures in FY2016. FISCAL YEAR 2016 Budgeted revenues total $3,881,620. Overall, revenues are projected to decline by 21.82% due to fewer bonds being issued for capital in FY2016. The chart to the right identifies Stormwater Drainage revenues by source. Primary revenue is budgeted at $3,237,620, which represents an increase of 26.64% over FY2015 projections. As part of the budget process, the Stormwater rate was changed from $5.25 per unit to $6.50. The increase in the fee is to fund the MS4 permit requirements, debt coverage needs, and on-going capital maintenance. Budgeted expenses total $4,181,465, which represents a decrease of 8.93% over FY2015 projections. The reduction is due primarily to less CIP expense in FY2016. While the MS4 permits are expected to increase overall costs, the fund will spend less in regards to the buyouts of properties in the flood zones. 144 FY2016 Annual Budget STORMWATER DRAINAGE FUND INCOME STATEMENT FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Beginning Fund Balance 1,321,571 916,372 640,026 1,013,361 1,013,361 Operating Revenue Stormwater Fees 2,469,095 2,460,973 2,556,571 2,617,015 620,605 3,237,620 Interest 3,977 5,000 957 2,000 - 2,000 Other Revenue 18,453 62,035 17,250 17,000 - 17,000 Transfers In 22,850 - - - - - Total Operating Revenues 2,514,375 2,528,008 2,574,778 2,636,015 620,605 3,256,620 Operating Expense Transportation 1,563,807 1,844,997 1,832,584 2,084,497 18,618 2,142,363 Transfers Out 16,392 65,287 65,287 55,671 - 55,671 Transfers - ROI 177,096 173,318 180,167 183,191 43,442 226,633 Total Operating Expense 1,757,295 2,083,602 2,078,038 2,323,360 62,061 2,424,667 Available Fund Balance 2,078,651 1,360,778 1,136,766 1,326,017 1,845,314 Policy Compliance (Operating Revenues - Operating Expenses)312,656 831,953 Non-Operating Revenue Grant 459,000 200,000 175,000 225,000 - 225,000 Bond Proceeds - 2,215,000 2,215,000 250,000 - 250,000 Total Non-Operating Revenue 459,000 2,415,000 2,390,000 475,000 - 475,000 Non-Operating Expense One-Time Programs Capital Improvements 1,496,824 2,850,000 2,050,000 950,000 - 950,000 Rollforward CIP Debt Payments 382,341 430,844 430,844 596,794 - 596,794 Debt Service - New Bond Issue Costs 5,440 32,561 32,561 4,000 - 4,000 Total Non-Operating Expense 1,884,605 3,313,405 2,513,405 1,550,794 - 1,550,794 Ending Fund Balance 653,046 462,373 1,013,361 250,223 769,520 Adjustments & Reservations CAFR Adjustment (13,020) - - - - Reserved for Capital - - 550,000 500,000 - 500,000 Contingency 150,000 150,000 150,000 250,000 - 250,000 AVAILABLE FUND BALANCE 490,026 312,373 313,361 (499,778) 19,520 DEBT COMPLIANCE Coverage Compliance 312,656 831,953 CY Debt Service Requirement 596,794 596,794 Debt Coverage Ratio 0.52 1.39 Bold Purple Numbers: Related ROI increases to General Fund. 145 FY2016 Annual Budget STORMWATER DRAINAGE TRANSPORTATION STORMWATER DRAINAGE 9.5 FTES 100% OF FTE’S WITHIN THIS FUND MAJOR DEPARTMENT ACCOMPLISHMENTS FOR FY2015  Completed Smith Branch home buy-outs of structures identified in the 100 year flood plain.  Began implementation of Storm Water Plan and Permit.  Replaced and installed approximately 14,000 linear feet of deteriorated curb with full curb and gutter through rehabilitation projects. MAJOR DEPARTMENT GOALS & STRATEGIES FOR FY2016  Comply with Stormwater regulations.  Enhance public safety by reducing the threat of property damage and personal injury through proper maintenance and operation of the city’s drainage system.  Improve the cleanliness and appearance of the community through the sweeping of city streets.  Implement all required aspects of the on-going Stormwater Maintenance Program that meets impending federal regulations. (Pollution Prevention Plan).  Work with Parks and Recreation to find grants and other financial assistance to the design and construction of protective erosion control for the San Gabriel River and Parkland.  Continue curb and gutter replacement program.  Implement the Regional Stormwater Master Plan (RSMP) by building detention ponds and upgrading waterways within the city.  Initiate Watershed planning update working through Texas Water Development Board grant program. PRIMARY COUNCIL STRATEGIC GOALS DEPARTMENT DESCRIPTION The Stormwater Drainage Utility addresses environmental concerns related to in-stream water quality, regulatory demands due to stormwater run-off controls, infrastructure operation and maintenance, and drainage/flood control capital project needs. Other duties include sign, marking and signal maintenance for the Street Department and assisting Police and Fire Services on Code Enforcement issues. Notable Budget Item MS4 Program Administrator (Accounted for in “Base”) (1 FTE) Street Sweeper/Inlet Maintenance Specialist (Accounted for in “Base”) (1 FTE) 146 FY2016 Annual Budget DEPARTMENTAL BUDGET FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Personnel 378,142 451,444 434,919 617,507 - 617,507 Operations 1,185,665 1,393,553 1,397,665 1,489,113 35,743 1,524,856 Capital - - - - - - Total Departmental Budget 1,563,807$ 1,844,997$ 1,832,584$ 2,106,620$ 35,743$ 2,142,363$ DEPARTMENTAL PERFORMANCE MEASURES FY2014 Actual FY2015 Budget FY2015 Proj Actual FY2016 Base FY2016 Changes FY2016 Budget Workload Measures 1. Square Acres of public right-of-way mowed and cleaned 36 46 *357 357 0 357 2. Hours of street sweeper operation 1,600 1,600 1,100 1,600 0 1,600 3. Linear feet of curb and gutter installed/replaced city wide 10,000 15,000 14,000 13,000 0 13,000 Performance Measures 1. Number of times City streets swept annually 12 12 6 6 0 6 2. Cubic yards of debris prevented from entering waterways 1,000 1,000 1,080 1,000 0 1,000 3. Number of detention ponds maintained 38 38 42 42 0 42 *Measure changed from linear miles to square acres The Department closely monitors the number of Cubic Yards of Debris prevented from entering the waterways as way to ensure high water quality. Street sweeping, curb installation and pond maintenance are all key programs administered by the Department to help in this effort. 1, 3 0 0 1, 0 0 0 1, 0 0 0 1, 0 8 0 1, 0 0 0 0 500 1,000 1,500 FY2012 FY2013 FY2014 FY2015*FY2016* Yards of Debris Cubic yards prevented from entering waterways * Projected 147 FY2016 Annual Budget THIS PAGE INTENTIONALLY LEFT BLANK. 148