PROPOSED ANNUAL BUDGET PROGRAM OF SERVICES FISCAL YEAR 2017-2018 Table of Contents Transmittal Letter Financial Summary Executive Summary Three Year Summary of All Funds Detailed Summary of All Funds City Overview City Organizational Chart City Overview City Profile Budget Process & Calendar Legal Requirements & Basis of Budgeting Goals & Vision Staffing Levels & Historical FTE Count Debt Service Fund Summary Income Statement Debt Service Schedule General Fund General Fund Organizational Chart Summary Income Statement & Schedule of Revenues General Government Organizational Chart Mayor & City Council City Manager Assistant City Managers Community Engagement City Secretary Communications 311 Call Center Human Resources City Attorney Information Technology Strategic Initiatives Economic Development Finance & Municipal Court Public Works Parks & Recreation Community Development Environmental & Neighborhood Services 9 15 15 21 22 27 26 27 30 31 33 36 41 52 52 55 57 61 61 62 64 69 70 71 72 73 74 75 76 77 78 79 80 81 82 84 87 90 95 Police Department & Public Safety Dispatch Fire/EMS Non-Departmental Special Revenue Funds Summary Court Security Court Technology Community Development Block Grant Tourism State Seizures Federal Seizures Law Enforcement Photographic Traffic Signal Enforcement SPA Debt Reduction Fund - Greatwood SPA Debt Reduction Fund - Tara Plantation SPA Debt Reduction Fund - New Territory SPA Debt Reduction Fund - Riverstone Enclave at River Park PID Special Events Capital Projects Summary Summary of Revenues & Expenditures Project Detail & Funding Sources Enterprise Funds Water Utility Fund Surface Water Fund Airport Fund Solid Waste Fund Internal Service Funds Summary Employee Benefits Fleet Replacement High Tech Replacement Component Units Summary Sugar Land Development Corporation Sugar Land 4B Corporation Five Year Forecast Summary Income Statements Appendices Financial Management Policy Statements 98 103 106 107 107 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 127 129 130 134 134 142 148 156 160 160 162 163 164 165 165 168 171 174 174 182 192 192 Salary Structures Depreciation Schedule for Fire Fee Calculation Glossary Acronyms 218 225 227 236 6. GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished dget Presentation Award PRESENTED TO City of Sugar Land Texas For the Fiscal Year Beginning October 1, 2016 ?ei?w Executive Director CITY OF SUGAR LAND City Manager's Of?ce July 18, 2017 Honorable Mayor and Members of City Council: in accordance with Texas Statute and the City of Sugar Land Charter, Section 6.03, the proposed budget for the fiscal year beginning October 1, 2017 is hereby presented. The budget for fiscal year 2018 complies with the City Council adopted Financial Management Policy Statements (FMPS), and begins incorporating proposed changes to ?nancial strategies to ensure the City's financial stability into the future. The budget maintains existing service levels and implements City Council priorities. The budget continues to maintain outstanding City services for residents and visitors to Sugar Land, ensures continued financial strength by meeting all fund balance requirements, and is structurally balanced. FY17 Accomplishments The economic slowdown that began in FY16 has continued through the current year. Regional economic conditions, such as the slowdown in the Oil Gas industry, and changes in consumer spending behavior have placed downward pressure on local businesses, resulting in reduced sales tax revenue to the City. As a result, the City has revised its sales tax estimate downward in anticipation of lower than expected collections. Despite these challenging economic conditions, the City has been able to maintain its service levels and complete major projects. In FY17 the City opened the Smart Financial Centre at Sugar Land and the Brazos River Park and Sugar Land Festival Site. The Smart Financial Centre at Sugar Land has been a bright spot for the City, bringing top names in entertainment to perform at the venue. In addition to improving the entertainment options within the City, the Smart Financial Centre at Sugar Land has enhanced the reputation of Sugar Land as a destination city. The venue has helped increase the Food Entertainment sector, which has been boosted by sales tax received directly through ticket sales, as well as indirectly through increased activity at local restaurants. The City is proud to report that the first major event at the Sugar Land Festival Site was the July 4?h Star Spangled Spectacular, which opened with tremendous success, hosting over 20,000 visitors to the event. Another major regional event this year was Super Bowl Ll, which was held at NRG Stadium in Houston. The Sugar Land Regional Airport saw a tremendous impact from the event, with 524 aircraft reservations. This increased traf?c resulted in 116,705 gallons of fuel sales, as well as additional revenue from ramp fees and services. The Airport staff and volunteers worked tirelessly to ensure that the operation was successful, with many visitors promising return visits to the airport as a result. Over the last few months, we have seen a resulting increase in traf?c and fuel sales at the airport; many as a result of their Super Bowl experiences. Accountability initiatives, such as City Council Goal Measures, and departmental Performance Measures, have been implemented in the City. Recently, the City introduced its new Goal Measures Dashboard, which enables citizens to go to the City website and view interactive tools that describe visually, and contextually, how the City is performing within each of the City?s priorities. Departmental assessments aimed at identifying operational efficiencies are continuing and have shown great success. These efficiencies range from detail such as how the minutes of public meetings are kept to high level such as how fire personnel are allocated and deployed to maximize effectiveness. This year the City was able to see results of a lower negotiated electricity rate, which will save the City over a million dollars in electricity costs in the upcoming FY18 budget. The lower rate was due to the City?s active participation on the Texas Coalition for Affordable Power (TCAP) board, which resulted in the per kilowatt hour rate being cut nearly in half. In November 2016, City Council approved an Ordinance that annexes nine Municipal Utility Districts (MUDs) located in the Greatwood and New Territory communities, effective December 12, 2017. At the same meeting, a budget amendment was approved for FY17 to allow preparations for the annexation to begin, including hiring of 33 general fund and 14 utility fund positions, along with the purchase of vehicles and equipment that will be needed to serve these areas upon annexation. These preliminary expenditures are being paid from Debt Reduction Funds that have been set aside over the last ten years for this purpose. Since that time, the City has been working to fill and train these positions to ensure we are ready to serve the new residents upon annexation. The recent instability in the economy has highlighted the need for the City to be less dependent on sales tax revenue, and transition to a more stable revenue stream. Over the years, the City has strengthened its ?nances through revisions to the Council adopted Financial Management Policy Statements that provide for less dependence on sales tax to fund operations, but there is more work to be done in the coming years. As the City matures, our financial strategies must adjust to ensure long term fiscal health. The financial strength of the City continues to be recognized by outside rating agencies. The City?s bond rating was affirmed through multiple bond issues, with the rating agencies citing the City?s financial stability and planning efforts as key components of the rating. The City also received another clean audit opinion from its external auditors. FY18 Budget Preparation and Priorities To begin the annual budget process, a planning retreat is held in March of each yearto review initial assumptions related to the preparation of the budget and receive input from City Council. The two primary factors that influenced the budget in the upcoming year are the continued slowdown in the local economy, as well as a movement in the State Legislature that is aimed at restricting the ability of local governments to operate. These factors necessitated a flexible and strategic approach to implementing the budget in FY18. The main objective of this budget was to complete the annexation of New Territory and Greatwood, without impacting existing residents. At the same time, economic challenges have been thrown at the City due to the decline in the oil and gas industry, leading to a reduction and prioritization of available resources. To meet these objectives, the budget incorporates a shift in the property tax rate, moving one cent from debt service to operations and maintenance. This change ensures that the City is able to meet its current service levels, and complete a substantial portion of the planned capital improvement projects for FY18. Throughout the five-year capital improvement program, debt capacity will increase; particularly after annexation when 10 the City will receive property taxes for the first time after annexing the Greatwood and New Territory communities. Long-term, changes may be required as the legislature continues attempts to erode local control. Most recently, the State has attempted to limit the ability of cities to issue Certificates of Obligation to fund important infrastructure improvement projects. If the State is ever successful, this would require the use of voter approved General Obligation Bonds, which would lengthen the time necessary to implement these projects. The proposed budget for FY18 also incorporates strategic changes that are recommended to reduce the City?s reliance on sales tax as a revenue stream for recurring operations. The City has historically transferred 10% of General Fund sales tax to support the Pay-As-You-Go (PAYG) capital improvement program. With the slowdown in the City?s sales tax collections, the funding mechanism for supporting these recurring capital improvement costs has evaporated and highlighted the need to begin taking actions to implement a long- term solution. The FY18 budget incorporates the first steps in this strategy by forecasting no growth in the base sales tax estimates for the upcoming year, as well as transitioning recurring PAYG capital rehabilitation projects into departmental operating budgets using a phased approach. This will allow these projects to transition to a more stable funding source and ensure that critical maintenance items, such as road repairs, can continue when there is downturn in sales tax. The major focus of the FY18 budget is the completion of the Annexation Service Delivery Plan that was presented to City Council in the Fall of 2016. This budget fully incorporates the annexation and represents the first annual budget incorporating annexation related expenses and revenues. For property tax revenues, the FMPS direct the City Manager to file a budget recommendation based on an effective tax rate plus which is necessary to meet current service levels and infrastructure needs. The proposed budget is based on a flat tax rate; at the current average home value of $386,835, this will result in an increase of approximately 3% to the residential tax bill. This small increase is far less than if the City relied upon the States proposed revenue caps to provide tax relief. Maintain Service Levels The budget has been developed to serve an estimated population of 117,868 as of January 1, 2018, a 34% increase from 2017. This population includes the Greatwood and New Territory communities, which will be annexed into the City on December 12, 2017. The budget maintains the City?s existing service levels for operations and funds ongoing maintenance of infrastructure. Resources have been allocated to continue services at existing levels. Additional resources are being recommended to ensure service levels are maintained based on increased workload associated with the expanded City limits and increased population from annexation. Approximately half of the General Fund operating budget is used to fund a robust public safety program. Drivers of the budget include annexation related expenses (which are covered by debt reduction funds from the annexed areas), a 3% pool for merit increases for existing employees effective January 1, full year implementation of 2017 merit increases, a 4% increase in health benefits costs, and contractual costs such as landscaping, custodial services, and the Comcast franchise agreement. Outside of increases due to annexation, there are no planned new positions or services incorporated in the budget. The budget for FY18 incorporates the addition of 19.5 new positions due to annexation. The growth in population from annexation triggers implementation of a new 311 call center to improve customer service citywide. This call center will be instrumental in addressing the needs of the newly annexed Greatwood and 11 New Territory residents, and will also help to enhance the service levels of our current residents by more quickly addressing their questions or concerns, as well as routing calls more ef?ciently and effectively to the appropriate staff members. The call center will be staffed by two full time call center ambassadors plus an allocation of a portion of 8 existing staff members who will serve in the ambassador role from 8-10 hours per week. These ambassadors will be educated to address a wide variety of inquiries that the City commonly receives, as well as knowledge of where to send callers if they cannot address their inquiry directly. Implement Capital Projects The City's first visitor center, anticipated to be complete by the first quarter of FY18, is located in the historic Imperial District, sharing space with the Sugar Land Heritage Museum. The facility is to be staffed with an existing employee plus 2 part-time positions added in the FY17 budget; all funded from the Tourism Fund which is supported by Hotel Occupancy Taxes paid by visitors to the City. Capital Projects The capital improvement program focuses on streets, sidewalks, drainage and utility infrastructure and includes resources that will maintain the longevity of these critical assets. The capital project funds total $22.4 million including issuance costs. The downturn in sales tax collections has caused the City to re-evaluate funding sources for Pay as You Go capital projects. Recurring rehabilitation projects have been reallocated to the departmental operating budgets, so they can be funded from a more stable source of revenue- property taxes. As a result, the Capital Improvement Program funding will be reduced as those projects are removed from the plan. The CIP program will continue to focus on capital asset construction and major reconstruction, including Street, Drainage, and Water/Wastewater improvements. Streets and Drainage continue to be priorities in FY18, with a total of $6.4 million included in the budget. Funding for Utility projects continues to emphasize rehabilitation on lift stations, the collection system, and ground water storage tanks. Water and wastewater CIP projects included in the FY18 budget total $10.1 million. The proposed 2018-2022 Capital Improvement Program total is $130.6 million; with some projects needing to shift within the five-year forecast based on funding capacity. The ?ve-year program is 63% funded from the issuance of debt. Employee Compensation and Benefits The FY18 proposed budget includes a compensation and benefits package for employees that allows the City to attract and retain a highly skilled workforce. The City recognizes pay for performance as a compensation guiding principle. A 3% merit pool will allow management to develop a merit matrix that rewards high and outstanding performance from employees. The City does not give cost of living adjustments, so the merit program is the primary way for employees to receive salary increases. Based on the economic and ?nancial forecasts facing the City over the next year, the Human Resources Department recommends adjusting the Public Safety and Genera l/Management compensation plans effective January 1, 2018. The current compensation plans will remain effective until that date. The City maintains a competitive health benefits offering for employees. Based on current trends, the City will be able to manage its benefits costs with only a 4% increase to the City. The Human Resources 12 Department is working with the City?s benefits consultant to develop a plan that incentivizes wellness for employees. This plan would allow employees to have little to no increase in their rate assuming they complete certain wellness related activities. The City participates in the Texas Municipal Retirement System (TMRS) for full-time employees but does not participate in Social Security. TMRS calculates the City's required contributions based on an actuarial formula that looks at the City?s pension liabilities compared to its pension assets. The City's calculated contribution rate for 2017 will be 15.27%, which is a slight increase from the 2016 rate of 14.99%. Changes to the funding ratio and contribution rate are largely due to changes in the assumptions used by the actuaries in calculating the current and future liabilities of the City?s plan. The current contribution rates are set to achieve 100% funding, and funding currently stands at a healthy 86%. With the FY18 proposed adjustments to compensation and benefits, the City will maintain a benefits burden of 29.81%, which is within the compensation philosophy guidelines. Tax Rate and User Fees The proposed 2017 tax rate is 50.31595 per $100 valuation, the same as 2016. The homestead exemption remains at 10% for 2017. The 2017 average value single family home is $386,835; a 3% increase over the 2016 average value. This will result in a 3% increase to the average residential tax bill for 2017. In the Enterprise Funds there are no changes to water, wastewater, or surface water rates. This is consistent with the five-year forecast that has been shared with City Council for the last several years. In fact, the City has not adjusted water or wastewater rates since 2011, minimizing impact to customers while the surface water rates were being implemented. Solid Waste includes a 2.5% increase to residential rates based on the contract with Republic Services, which is based on a 2.5% CPI increase. The new rate will be effective in January 2018 and will increase from $18.00 to $18.45 per month with no changes to service levels. The FM PS contains guidance on evaluating user fees for an annual CPI adjustment and for calculation of new fees. There are only two new fees proposed which are based on requests for expedited food permits, and late renewals of rental licenses. In FY18, an increase of 2.10% is recommended to fees that accumulates CPI changes from 2016 and 2017. The full cost of fire service shows a small increase from the current fee, going from $17.09 to $17.68 per month. Fee adjustments are effective January 2018. 13 Financial Summary Based on the priorities addressed identified and discussed above, the FY18 proposed budget totals $231.0 million. 0f the total, $208.6 million is for operations and $22.4 million is for capital projects. Fund FY18 Budget General Fund 5 87,572,822 Debt Service Funds 30,329,813 Utility Surface Water Funds 41,464,642 Airport Fund 13,975,191 Solid Waste Fund 7,633,125 Corporations 11,344,506 Other Funds 16,291,195 Total Operating Funds 208,611,294 Capital Projects 22,372,556 Total Proposed Budget 5 230,983,850 I encourage you to read further into the information describing the FY18 proposed budget. The executive summary that follows this transmittal letter provides an overview of revenues and expenditures included in each of the operating funds and a description of the proposed CIP and employee compensation plans. The budget will be discussed during a series of budget workshops through the month of August with council action scheduled in September on the budget and tax rate. Respectfully, Allen Bogard City Manager 14 Executive Summary Major Revenue Sources Major revenue sources for the City total $219.9 million (excluding inter-fund transfers). The five primary revenue categories comprised of property taxes, sales tax, other taxes (franchise taxes and hotel occupancy taxes), charges for services, and bond proceeds represent 87% of total revenues for the City. Miscellaneous revenues include licenses and permits, fines and forfeitures, interest income, intergovernmental, and contributions make up the remaining 13%. The chart to the right illustrates the breakdown of the major revenue sources. Major Revenue Sources Bond Proceeds 6% Miscellaneous 13% Other Taxes 4% Property Taxes 21% Charges For Service Property Tax Sales Tax 34% Revenues from ad valorem or property taxes represent 22% 21% of overall revenues at $46.44 million. Property tax revenues are based on a tax rate of $0.31595 per $100 of assessed valuation for the tax year 2017. Property tax collection is authorized by the State of Texas up to $2.50 per $100 of assessed valuation for maintenance and operations and debt service. Sales Tax Sales tax revenue, estimated at $49.42 million, represents 22% of total revenues. The sales tax rate in Sugar Land 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. Of the total 2% local share, 0.25% is allocated to the Sugar Land Development Corporation (SLDC) and 0.25% to the Sugar Land 4B Corporation (SL4B); the remaining 1.5% is deposited in the General Fund. The sales tax budget for FY18 is $49.42 million, which includes an additional $814,824 as a result of new collections from the Greatwood and New Territory communities. The State allows cities to enter into incentive agreements with companies that locate within the City and report sales tax to the City for local collections. In turn, the City grants a portion of the collections to the company in the form of an incentive payment. The City currently Total Sales Tax in Millions has one active incentive agreement in place and is $60 expected to payout $213,698 in incentives in FY18. $52.37 $50 Sales tax revenue estimates are prepared using a combination of forecasting methodologies. FY17 collections are expected to fall within the revised revenue estimates. The total budget for sales tax for FY18 is $49.42 million, which is a 1.69% increase over FY17 projections. The chart to the right illustrates the historical trend of sales tax collections in the City. $49.15 $51.13 FY14 FY15 $48.60 $49.42 $45.47 $40 $30 $20 $10 $0 FY13 15 FY16 FY17 Proj. FY18 Bud. Other Taxes Other Taxes represent 4% of City revenues at $8.86 million and are comprised of franchise and hotel occupancy taxes. Franchise taxes are anticipated to total $6.55 million. Franchise revenues are derived from non-exclusive franchise agreements the City has with utilities and the solid waste providers that use the City’s right-of-way to conduct business. Besides defining the responsibilities of the utilities maintaining their assets, the agreements contain a franchise fee clause that requires the utilities and solid waste companies to compensate the City for use of right-ofway and streets. Generally, the fees are based on a percentage of gross receipts or a per-unit of usage charge (generated by customers located within the City’s corporate limits) that range from 2% to 5%. Hotel occupancy taxes are anticipated to total $2.31 million. Both franchise taxes and hotel occupancy taxes are estimated using trend analysis. Historic performance is analyzed and growth from new development is factored into the estimates when developing the budget. Charges for Services Charges for services represent 34% of total revenues at $74.72 million and include fees for services in the General, Utilities, Airport, and Solid Waste Funds. General Fund Charges for Services Charges for services in the General Fund total $3.92 million and are primarily derived from fees for services for fire protection in the City’s extraterritorial jurisdiction, emergency medical services, parks and recreation activities and rentals, and administrative fees. Fire protection fees total $1,104,364 and represent 28.14% of charges for services. Fire protection fees are paid by Municipal Utility Districts (MUDs) within the City’s extraterritorial jurisdiction (ETJ) and by Fort Bend County for areas outside the City but served by the Sugar Land Fire Department. Fire fees are adjusted each January based on an updated cost of fire service calculation as defined in the strategic partnership agreements between the City and the districts. Park fees total $610,897 and represent 15.57% of charges for services. Park fees are generated by facility usage cards, facility rentals, leisure classes, senior programs and camp programs. EMS fees total $1,530,187 and represent 39.00% of charges for services. EMS fees are paid by patients transported by City ambulance to a medical facility for emergency treatment. The City’s billing provider will bill private insurance on behalf of the patient. Other charges for services total $678,628 and represent 17.29% of charges for services. This includes false alarm charges, hazardous materials responses, and sale of property. With the exception of administrative fees, charges for services are budgeted based on historic collections, with growth factors included where appropriate. Utility Charges for Services Utility charges for services are anticipated to generate $47.59 million. The City charges fees for the provision of water and wastewater services to residents and businesses located within the City. Customers are charged a base rate for water and wastewater, depending on the size of the meter installed, and a volume fee based on metered consumption. Volumetric revenues are budgeted based on estimated water consumption of 7.22 billion gallons for water and surface water and 4.42 billion gallons for wastewater. There are no changes to water, surface water or wastewater rates for FY18. Surface Water Charges for Service Surface Water charges for service are anticipated to generate $1.15 million from non-city participants. Groundwater Reduction Plan (GRP) pumpage fees are established by ordinance by City Council. The FY18 budget maintains the GRP 16 pumpage of $1.75 per 1,000 gallons of groundwater produced. The Utility Fund pays into the Surface Water Fund based on pumpage consistent with other GRP participants. There are no changes to the surface water rates for FY18. Airport Charges for Services Charges for services at the Airport are anticipated to total $13.42 million. Budgeted fuel sales of $12.04 million represent estimated fuel sales of 3 million gallons. Aviation fuel is sold at cost plus markup. The remaining charges for services are derived from hangar and land leases, catering services, customs fees, fuel additive sales, and rental car fees. Fuel estimates are based on historic monthly fuel sales, with some growth anticipated due to international marketing of the airport. Other fees are budgeted based on historic collections. Solid Waste Charges for Services Charges for services in the Solid Waste Fund are anticipated to total $8.0 million. The City contracts solid waste service and provides twice weekly automated trash collection and weekly automated recycling. Residents currently pay $18.00 per month for this service. Effective January 1, 2018, the new rate will increase to $18.45 per month, a 2.5% increase, based on the contract with Republic Services and Best Trash. The budget anticipates 35,210 households served during the fiscal year. Bond Proceeds Bond proceeds of $12.64 million represent 6% of total revenues. The proceeds will be used to fund the FY18 capital improvement projects and will be from property tax backed bonds and utility revenue bonds. Miscellaneous Revenues Miscellaneous revenues represent the remaining 13% of total revenues at $27.81 million. Miscellaneous revenues include licenses and permits, fines and forfeitures, interest income, contributions, and intergovernmental revenues such as grants. Expenditures by Type The FY18 budget totals $230.98 million (excluding interfund transfers). The chart at the right illustrates expenditures by type. General Government expenditures represent 6% of overall expenditures at $15.46 million. General Government expenditures are for administrative functions, including City Management, City Secretary, City Attorney, Human Resources, Information Technology, Communications, Strategic Initiatives, Economic Development, and Tourism. Expenditures by Type Airport Utility Services Services 5% 10% Construction 10% Other 12% General Government 6% Community Services 15% Debt Service 24% Public Safety 18% Community Services expenditures represent 15% of total expenditures at $35.14 million. Community Services expenditures include Parks, Public Works, Environmental & Neighborhood Services, and Community Development. Services provided include: park and recreation activities and facilities, right-of-way maintenance, streetlights, streets, sidewalks, traffic signals, drainage maintenance, code enforcement, engineering, planning, permits & inspections, animal services, fleet, and facilities maintenance among others. Public Safety expenditures represent 18% of total expenditures at $41.12 million and include the Police and Fire/EMS departments and public safety dispatch. 17 Debt Service represents 24% of total expenditures at $54.53 million and includes principal and interest payments on debt issued through bonds, lease purchases, and other instruments. The City, through debt issued directly and debt assumed from MUDs, has 52 current issues including Property Tax-backed, debt pledged with hotel occupancy tax, Utility, Airport, Surface Water and Corporation debt. A portion of the tax rate is directed to the Debt Service Fund to meet debt backed by taxes. A transfer from the Tourism Fund to the Debt Service Fund covers its portion of debt pledged with hotel occupancy tax. Outstanding debt for Utilities and Airport is paid through user fees. Debt for the corporations is repaid with sales tax collections from the SLDC and SL4B. Surface Water debt is paid from GRP revenues. A separate fund accounts for Taxable Certificates of Obligation that are to be supported by lease revenues for the Smart Financial Centre. Construction represents 28% of total expenditures at $22.38 million. Construction expenditures are related to capital improvement projects within the City. Capital projects are funded with sales tax from the City and economic development corporations, system revenues from Utilities and Airport Funds, grants, inter-local funding and debt. Project types include parks, streets, drainage, traffic, municipal, airport, water, wastewater and surface water. Utility Services represent 10% of total expenditures at $22.22 million. Utility Services expenditures are related to the operations, maintenance, and repair of water and wastewater infrastructure, as well as sanitation and recycling services. Utility services also include expenses related to surface water conversion. Airport Services represent 5% of total expenditures at $12.56 million. The fixed based operator at the airport is Global Select, which provides fuel and aviation customer services. Other expenditures represent 12% of expenditures at $26.57 million and include expenditures for Finance, Municipal Court, insurance coverage, economic development incentives, capital replacement, sales tax rebates, and property tax rebates to in-City MUDs. Expenditures by Fund The narrative below provides a summary on how funds are appropriated within key operating funds. A detailed explanation of expenditures within all funds can be found in the financial section of this document. Debt Service Funds The budget in the Debt Service Funds, excluding inter-fund transfers, totals $30.33 million. Expenditures include $28.52 million in debt service payments and fiscal fees. The budget also includes $1.80 million in property tax rebates to in-city MUDs. The ending fund balance of $5.61 million is above the policy requirement of 10% of debt service requirements. General Fund The General Fund budget, excluding inter-fund transfers, totals $87.57 million. Expenditures include 16.50 new positions to assist with additional workload related to Annexation. The budget also includes an average merit pool of 3% for employees effective in January 2018. The General Fund budget fund balance is expected to increase by $756,002 and analysis shows the budget is structurally balanced (recurring revenues cover recurring expenditures). The anticipated FY18 ending fund balance in the General Fund is $20.18 million, which is higher than the policy requirement of three months of recurring operating expenditures. Capital Improvement Program The 2018-2022 capital improvement program totals $130.55 million. Of this total, $22.27 million are funded in the FY18 budget. Municipal projects make up 17% of FY18 allocation, which include costs for Facility Renovations. 18 Drainage projects represents 10% while Streets projects are 19%. Drainage projects encompasses localized drainage improvements and Streets projects include improvements and widening of streets as well as pavement rehabilitation. Parks, Traffic and Airport makes up 8% and include funds for the parks bond projects, traffic evaluation and safety improvements. Water and Wastewater projects represent a combined 45%. Water projects include costs for rehabilitation of elevated storage tank, wells and ground storage tanks. Wastewater projects include ongoing work related to the wastewater collection system rehabilitation, collection system infiltration/inflow study, wastewater treatment plant improvements, New Territory and Greatwood wastewater pants rehab, lift station assessment, and lift station rehabilitation. Surface water projects represent 20%, and include water plant improvements and surface water transmission line. Funding for the FY18 CIP consists of 8.04 million in certificates of obligation, $4.51 million in revenue bonds, $2.23 million from the Sugar Land 4B Corporation, $2.18 million in system revenues, and $5.31 million from other funding sources. Other funding sources include donations, Tourism Fund, and CIP fund balances. Interest income is budgeted for $145,000. Water Utility Fund The Water Utility Fund budget totals $27.11 million, excluding CIP projects and inter-fund transfers. One-time additions are included in the Utility Fund for Asset Management, TCEQ for Chloramine, a Temporary Hire, and other miscellaneous items. An increase in cash equivalents of $679,727 is anticipated for the fiscal year. The FY18 budgeted ending cash equivalent totals $4.98 million and exceeds the 25% cash operating reserve requirement. Surface Water Fund The Surface Water Fund budget, excluding CIP projects and inter-fund transfers, totals $14.36 million. The Surface Water Fund is supported by pumpage fees paid by all participants in the City’s groundwater reduction plan. The FY18 budgeted ending balance of $8.93 million exceeds the 50% general purpose reserve. Airport Fund The Airport Fund budget totals $13.97 million excluding CIP projects and inter-fund transfers. There is a mini excavator, terminal renovations, and furnishing of the new Airport maintenance facility included in the budget in the Airport Fund. The fund anticipates a draw down in cash equivalents of $348,526. The FY18 budgeted ending balance of $4.48 million is above the policy requirement of 25% of operating expenditures. Solid Waste Fund The Solid Waste Fund operating budget totals $7.63 million that includes contracted residential solid waste collection, excluding inter-fund transfers. Through contracted services, the City provides twice weekly automated trash collection and once weekly automated recycling. The ending balance in the fund is anticipated to be $363,190. This fund has no minimum fund balance per policy. Sugar Land Development Corporation The FY18 budget for SLDC totals $6.46 million, excluding inter-fund transfers. The budget includes operating expenditures for the Economic Development program, Economic Development incentives, contractual services with the City for support services and capital projects management. Debt service payments are budgeted at $4.15 million for outstanding debt issues. The FY18 budgeted available ending balance of $1,068,831 is over the policy requirement of 15% of budgeted sales tax collections. Sugar Land 4B Corporation The FY18 budget for SL4B totals $4.88 million, excluding inter-fund transfers. The budget includes operating expenditures for the Economic Development program and staffing, contractual services with the City for support services, and capital projects management. Additionally, debt service payments are budgeted at $3.35 million for 19 outstanding debt issues. The FY18 budgeted available ending balance of $938,604 million is over the policy requirement of 15% of budgeted sales tax collections. Tourism Fund Expenditures in the Tourism Fund total $1.16 million, excluding inter-fund transfers. The budget includes operating expenditures for Tourism and Destination Services staffing, there is no additional personnel in FY18. The fund has a projected ending fund balance of $240,259. In FY16 a fund balance policy was established for The Tourism Fund, which is equal to 10% of the hotel occupancy tax. In FY18 it is anticipated the fund will meet the fund balance policy. Employee Compensation The City offers a competitive benefit package to employees, including medical and dental coverage and contributions toward dependent coverage. The City participates in the Texas Municipal Retirement System (TMRS); employees contribute 7% of their gross pay and the City matches employee contributions 2 to 1, and employees are vested after five years of service. Because the City does not participate in Social Security, the City has chosen the highest level plan offered by TMRS. The contribution rate to TMRS for the City changes each year and is based on actuarial analysis of funding needs in the City’s plan. The City’s contribution rate to TMRS is increasing from 14.99% in 2017 to 15.20% in 2018 (effective January 1, 2018). In 2012, the City moved from a fully insured health insurance model to a self-funded model to help reduce costs and stabilize premiums. Stability in TMRS and medical plan costs has allowed the City to plan for merit increases for qualified employees. The budget includes funding for an average 3% merit increase for employees based on performance evaluations. The City does not provide cost of living increases, so the merit increases are the only time employees see an increase to their pay, except for internal promotions and salary structure maintenance. Merit increases are a key factor in staying competitive in the market and retaining quality employees. The merit increases will be effective in January 2018. The compensation philosophy adopted by City Council addresses the benefits burden as it relates to total compensation. Based on the adopted policy, benefits should not exceed a percentage of total employee compensation comparable to private sector employees. In FY18, the benefit burden is within the limits established by the Council policy at 29.81% of total compensation. 20 CITY OF SUGAR LAND SUMMARY OF ALL FUNDS REVENUES AND EXPENDITURES REVENUES: Property Taxes Sales Tax Other Taxes Licenses & Permits Charges For Service Fines & Forfeitures Interest Income Intergovernmental Miscellaneous Bond Proceeds Contributions Total Revenues Transfers from other funds Total Available Resources $ EXPENDITURES: General Government Finance Public Works Parks & Recreation Community Development Environmental & Neighborhood Services Police Department Fire Department Debt Service Other Construction Utility Services Airport Services Insurance Coverage Equipment Replacement Rebates & Assignments Total Expenditures Transfers to other funds Total Expenditures & Transfers $ FY16 Actuals FY17 Adjusted Budget 37,310,936 $ 52,367,866 8,231,033 3,242,527 61,617,186 3,637,299 1,781,402 6,574,781 23,027,959 57,774,472 9,040,669 264,606,131 45,710,870 310,317,001 38,707,400 $ 50,990,000 8,348,526 3,829,446 68,586,013 3,808,600 843,762 1,749,096 15,448,895 48,340,423 9,801,960 250,454,121 59,996,318 310,450,439 38,707,400 $ 48,604,889 8,386,532 3,135,283 65,082,273 3,466,889 859,050 2,617,334 18,214,081 46,589,761 9,300,770 244,964,262 55,516,546 300,480,808 46,439,087 49,419,705 8,859,829 3,567,148 74,724,369 3,679,128 840,015 1,847,995 7,646,379 12,645,112 10,231,536 219,900,303 45,902,471 265,802,774 12,940,905 3,697,093 8,252,589 4,242,721 5,167,497 10,397,073 20,894,423 14,166,312 74,424,758 3,765,487 116,555,495 16,801,373 8,961,784 8,916,330 2,982,825 5,053,145 317,219,810 45,710,870 362,930,680 $ 15,891,353 4,235,986 9,143,714 4,903,832 5,339,233 11,413,229 24,267,339 15,543,810 48,528,867 5,753,526 72,856,999 19,534,878 13,438,761 9,324,282 2,988,618 5,089,326 268,253,753 59,996,318 328,250,071 $ 15,959,084 4,220,911 9,293,964 4,951,834 5,338,908 11,406,718 24,195,185 15,454,787 46,550,636 4,795,201 64,221,408 19,314,386 11,315,752 9,184,807 2,938,618 5,101,946 254,244,145 55,516,546 309,760,691 $ 15,457,002 4,526,498 11,119,475 4,922,185 5,819,937 13,275,304 25,011,318 16,105,011 54,534,011 4,920,835 22,381,343 23,223,985 12,561,120 9,710,247 2,995,381 4,420,198 230,983,850 45,902,471 276,886,321 21 FY17 Projection FY18 Budget CITY OF SUGAR LAND SUMMARY OF ALL FUNDS FISCAL YEAR 2018 BUDGET REVENUES Governmental Funds Category Description General Fund Property Taxes $ Debt Service Fund $ Utility Fund & CIP Airport Fund & CIP Surface Water Fund & CIP 23,330,487 - - - - 37,064,779 - - - - - Other Taxes 6,550,729 - - - - - Licenses & Permits 3,567,148 - - - - - Charges For Service 3,924,094 - - 47,589,720 13,424,979 1,152,228 Fines & Forfeitures Sales Tax 23,108,600 Enterprise Funds Capital Projects 1,665,822 - - - - - Interest Income 192,280 50,750 135,000 175,000 15,000 70,000 Intergovernmental 128,151 - - - 50,000 - Miscellaneous 341,808 3,266,118 1,647,500 1,138,863 847,600 - Bond Proceeds - - 8,042,056 4,603,056 - - Contributions - - - - - - Total Revenue 76,543,411 26,647,355 9,824,556 53,506,639 14,337,579 1,222,228 Transfers from other funds 14,631,558 3,933,785 2,777,575 7,270,447 263,010 13,948,986 Total Available Resources 91,174,969 30,581,140 12,602,131 60,777,086 14,600,589 15,171,214 13,058,582 - - - - - 4,404,427 - - - - - 11,119,475 - - - - - Parks & Recreation 4,922,185 - - - - - Community Development 5,645,037 - - - - - Environmental & Neighborhood Services 5,717,179 - - - - - Police Department 24,103,961 - - - - - Fire Department 16,105,011 - - - - - - 28,521,543 - 9,170,655 1,262,514 8,077,122 4,000 100,000 585,452 151,557 407,428 EXPENDITURES General Government Finance Public Works Debt Service Other (116,223) Construction - - 11,549,056 10,723,500 - - Utility Services - - - 17,351,536 - 5,872,449 Airport Services - - - - 12,561,120 - Insurance Coverage - - - - - - Equipment Replacement - - - - - - Rebates & Assignments 2,613,188 1,804,270 - - - - 87,572,822 30,329,813 11,649,056 37,831,143 13,975,191 14,356,999 Total Expenditures Transfers to other funds Total Expenditures & Transfers Revenue over (under) Expenditures BEGINNING BALANCE 2,846,145 107,740 1,193,075 26,803,163 973,924 620,890 90,418,967 30,437,553 12,842,131 64,634,306 14,949,115 14,977,889 756,002 $ 26,494,878 143,587 $ 5,464,458 (240,000) $ 7,186,860 (3,857,220) $ Reserved for Debt Service (348,526) $ (5,975,281) Reserved for Self Insurance Reserved for Transportation Fees (2,089,570) GAAP Accruals END BUDGET BALANCE 15,778,250 (7,066,605) $ 20,184,275 5,608,045 22 $ 4,857,290 $ 193,325 $ (702,546) 9,625,596 - - - - - - - $ 5,540,042 5,945,749 $ 4,488,970 $ 9,818,921 CITY OF SUGAR LAND SUMMARY OF ALL FUNDS FISCAL YEAR 2018 BUDGET REVENUES Enterprise Funds Category Description Internal Service Funds Solid Waste Property Taxes - - - - Enclave at River Park PID - Sales Tax - - - - - - Other Taxes - - - - - - Licenses & Permits - - - - - - 8,002,969 - - - 110,014 45,630 Charges For Service Fines & Forfeitures Interest Income Intergovernmental Miscellaneous Fleet Replacement Hi-Tech Replacement Employee Benefits Brazos River Festival Site - - - - - - - 200 17,974 12,739 1,364 79 - - - - - - - 10,600 212,500 1,390 100,000 - - Bond Proceeds - - - - - - Contributions - - - 10,231,536 - - 8,013,769 230,474 14,129 10,332,900 110,093 45,630 Total Revenue Transfers from other funds - 1,709,418 1,284,564 - 38,128 33,000 8,013,769 1,939,892 1,298,693 10,332,900 148,221 78,630 General Government - - - - - 79,131 Finance - - - - - - Public Works - - - - - - Parks & Recreation - - - - - - Community Development - - - - - - 7,558,125 - - - - - Police Department - - - - - - Fire Department - - - - - - Debt Service - - - - - - 75,000 - - 466,693 - - Construction - - - - - - Utility Services - - - - - - Airport Services - - - - - - Insurance Coverage - - - 9,710,247 - - Equipment Replacement - 1,649,246 1,346,135 - - - Rebates & Assignments - - - - - - 7,633,125 1,649,246 1,346,135 10,176,940 - 79,131 Total Available Resources EXPENDITURES Environmental & Neighborhood Services Other Total Expenditures Transfers to other funds Total Expenditures & Transfers Revenue over (under) Expenditures BEGINNING BALANCE 411,855 - - - - - 8,044,980 1,649,246 1,346,135 10,176,940 - 79,131 (31,211) $ 394,401 290,646 $ 1,797,396 (47,442) $ 2,116,987 155,960 $ 1,641,480 148,221 (501) $ 515,817 $ 1,410 $ 664,038 $ 909 Reserved for Debt Service Reserved for Self Insurance (1,250,000) Reserved for Transportation Fees GAAP Accruals END BUDGET BALANCE $ 363,190 $ 2,088,042 $ 23 2,069,545 $ 547,440 CITY OF SUGAR LAND SUMMARY OF ALL FUNDS FISCAL YEAR 2018 BUDGET REVENUES Special Revenue Funds Category Description Tourism Court Security Court Tech CDBG Law Enforcement Photo Traffic Enforcement SPA Debt Reduction Property Taxes - - - - - - - Sales Tax - - - - - - - Other Taxes 2,309,100 - - - - - Licenses & Permits - - - - - - - Charges For Service - 42,185 56,248 - - - 376,302 Fines & Forfeitures - - - - - 2,013,306 - 4,200 31 75 - 215 1,007 32,101 Intergovernmental - - - 283,687 - - - Miscellaneous - - - - - - - Bond Proceeds - - - - - - - Contributions - - - - - - - 2,313,300 42,216 56,323 283,687 215 2,014,313 408,403 - - 12,000 - - - - 2,313,300 42,216 68,323 283,687 215 2,014,313 408,403 Interest Income Total Revenue Transfers from other funds Total Available Resources EXPENDITURES General Government 1,160,650 - - - - - - Finance - 45,843 76,228 - - - - Public Works - - - - - - - Parks & Recreation - - - - - - - Community Development - - - 174,900 - - - Environmental & Neighborhood Services - - - - - - - Police Department - - - - 25,000 882,357 - Fire Department - - - - - - - Debt Service - - - - - - - Other - - - - - 565,978 - Construction - - - 108,787 - - - Utility Services - - - - - - - Airport Services - - - - - - - Insurance Coverage - - - - - - - Equipment Replacement - - - - - - - Rebates & Assignments - - - - - - - Total Expenditures 1,160,650 45,843 76,228 283,687 25,000 1,448,335 - Transfers to other funds 1,181,064 - - - - 565,978 6,935,266 2,341,714 45,843 76,228 283,687 25,000 2,014,313 6,935,266 Total Expenditures & Transfers Revenue over (under) Expenditures BEGINNING BALANCE (28,414) $ 798,469 (3,627) (7,905) $ 19,949 $ 8,257 $ 16,322 $ 352 - (24,785) - (6,526,863) $ 153,174 $ - $ 7,782,662 $ 128,389 $ - $ 1,255,799 Reserved for Debt Service Reserved for Self Insurance Reserved for Transportation Fees GAAP Accruals END BUDGET BALANCE (529,796) $ 240,259 24 $ - CITY OF SUGAR LAND SUMMARY OF ALL FUNDS FISCAL YEAR 2018 BUDGET REVENUES Category Description Component Units Total City SLDC Property Taxes $ TOTAL SL4B 46,439,087 - - $ 46,439,087 37,064,779 6,177,463 6,177,463 49,419,705 Other Taxes 8,859,829 - - 8,859,829 Licenses & Permits 3,567,148 - - 3,567,148 Charges For Service 74,724,369 - - 74,724,369 3,679,128 Sales Tax Fines & Forfeitures 3,679,128 - - Interest Income 708,015 62,000 70,000 840,015 Intergovernmental 461,838 1,230,000 156,157 1,847,995 Miscellaneous 7,566,379 - 80,000 7,646,379 Bond Proceeds 12,645,112 - - 12,645,112 Contributions Total Revenue Transfers from other funds 10,231,536 - - 10,231,536 205,947,220 7,469,463 6,483,620 219,900,303 45,902,471 - - 45,902,471 251,849,691 7,469,463 6,483,620 265,802,774 14,298,363 597,018 561,621 15,457,002 4,526,498 - - 4,526,498 11,119,475 - - 11,119,475 Parks & Recreation 4,922,185 - - 4,922,185 Community Development 5,819,937 - - 5,819,937 Environmental & Neighborhood Services 13,275,304 - - 13,275,304 Police Department 25,011,318 - - 25,011,318 Fire Department 16,105,011 - - 16,105,011 Debt Service 47,031,834 4,149,896 3,352,281 54,534,011 2,239,885 1,709,850 971,100 4,920,835 Construction 22,381,343 - - 22,381,343 Utility Services 23,223,985 - - 23,223,985 Airport Services 12,561,120 - - 12,561,120 Insurance Coverage 9,710,247 - - 9,710,247 Equipment Replacement 2,995,381 - - 2,995,381 Rebates & Assignments 4,417,458 2,740 - 4,420,198 219,639,344 6,459,504 4,885,002 230,983,850 41,639,100 1,060,542 3,202,829 45,902,471 261,278,444 7,520,046 8,087,831 276,886,321 Total Available Resources EXPENDITURES General Government Finance Public Works Other Total Expenditures Transfers to other funds Total Expenditures & Transfers Revenue over (under) Expenditures BEGINNING BALANCE (9,428,753) $ 85,320,087 (50,583) $ 6,324,822 (1,604,211) $ (6,677,827) Reserved for Self Insurance (1,250,000) (1,250,000) Reserved for Transportation Fees (2,089,570) (2,089,570) GAAP Accruals (7,596,401) $ 58,277,536 (3,108,808) (11,083,547) $ 98,360,490 Reserved for Debt Service END BUDGET BALANCE (4,141,452) 6,715,581 (1,063,957) $ 1,068,831 (1,063,957) $ 25 938,604 (13,928,087) (9,724,315) $ 60,284,971 City of Sugar Land Organizational Chart As of October 1, 2017 Citizens City Council City Manager First Assistant City Manager City Attorney City Manager's Office City Secretary Strategic Initiatives Assistant City Manager Assistant City Manager Assistant City Manager Airport Engineering Economic Development Annexation Fire/EMS Environmental & Neighborhood Services Finance Special Projects Police Public Safety Dispatch Human Information Technology Resources Permits & Inspections Intergovernmental Relations Public Works Parks & Recreation Planning Public Communications 26 City Overview Location and Background Located 20 miles southwest of downtown Houston, Sugar Land is a fullservice municipality providing police and fire protection, water/wastewater utilities, solid waste collection, curbside recycling, a regional airport, parks and recreation, public works, planning/zoning and other services. Founded as a sugar plantation in the mid-1860s, Sugar Land was a busy commercial center for nearly 100 years. Formally incorporated in 1959, the City has grown more rapidly than anyone could imagine. Today, the City has a population of about 87,730 and is nationally recognized for its low crime and excellent opportunities afforded to residents. The city will annex the communities of Greatwood & New Territory on December 12th, and will take in 30,139 citizens, increasing the population to 117,869. City Management Sugar Land operates under the Council-Manager form of government. This system of local government combines the political leadership of elected officials in the form of a Council with the managerial experience of an appointed City Manager. The City Manager acts as the chief executive officer of the government and carries out policy and administers City programs. All department heads report to the City Manager, with the exception of the Municipal Court Judge, who is also appointed by Council. The City Secretary and City Attorney both report to the City Manager but require City Council approval for any employment action. ROLE OF CITY COUNCIL Appoint City Manager Establish City Policy Legislative Body Approve Budget ROLE OF CITY M ANAGER Manage Day-to-Day Affairs Enforce Laws and Ordinances Prepare Budget Make Recommendation to Council on General Welfare of the City Local Economy Sugar Land benefits from its proximity to Houston and the economic opportunities afforded by a large metropolitan area. Supported by strong regional infrastructure, the Sugar Land economy is diverse and offers strong corporate vitality. The table below contains a list of top private sector employers by number of employees. EMPLOYER TYPE OF BUSINESS Methodist Sugar Land Hospital Medical Fluor Enterprises, Inc.* Engineering Schlumberger* Oilfield Services / Technology UnitedHealthcare/UnitedHealth Group* Data Center First Data/Telecheck* Data Center Memorial Hermann Sugar Land Medical Tramontina USA, Inc. Manufacturing St. Luke's Hospital Sugar Land Medical 27 Baker Hughes* Specialty Polymers Accredo Packaging, Inc. Manufacturing Pharmedium Services, LLC Pharmaceutical Compounding Texas Instruments* Technology Applied Optoelectronics, Inc. Technology R&D OptumRx/Unitedhealth Group* Data Center Noble Drilling Services, Inc. Energy *2016 Fortune 500 Company Economic Development Activity Sugar Land has achieved its sustainable, strong local economy through an aggressive, focused economic development program that creates opportunities for new business investment and jobs. The City’s growing economy provides an excellent location for relocating and expanding companies to thrive, as evidenced by the fact that Sugar Land’s assessed commercial valuation has more than doubled in just over a decade—increasing by over $2 billion. As a regional employment center with more than 64,600 jobs, Sugar Land is home to high-profile regional and international corporations housed in more than 26 million square feet of commercial space, including 15 Fortune 500 companies with a significant presence. The attraction of primary employers is an extremely important driver of Sugar Land’s economy. Jobs in Sugar Land generate demand for new retail services and result in the creation of new sales tax dollars, increased commercial property tax values and additional hotel occupancy tax revenues enabling the City to continue to keep property taxes low for residents. While the increase in commercial property tax values offsets the cost of providing public services to residents, the increase in restricted revenue funds, such as economic development sales taxes and hotel occupancy taxes, is able to be reinvested into projects that increase the quality of life in Sugar Land, such as parks, support of higher education, cultural arts and entertainment. These amenities help Sugar Land become a premier destination location for primary employers, leisure travelers and residents, making it even more possible for people to live, work, shop and play in Sugar Land—all with one of the lowest property tax rates in the State of Texas. Evidence of Sugar Land’s thriving business community includes the announcement of a new Fortune 500 company coming to Sugar Land. ABM, a leading provider of facility solutions, has been serving Texas since 1945 and currently has more than 10,000 employees maintaining over 4,500 buildings throughout the State. In November 2016, the Sugar Land Development Corporation approved an agreement with ABM relocating their corporate shared services operations to the City of Sugar Land. This project will result in more than $9.4 million in capital investment and the creation of approximately 390 jobs over the next two years. The company will occupy approximately 62,000 square feet within the Sugar Creek on the Lake office building at 14141 Southwest Freeway. This iconic 515,000 square foot Sugar Land building is now more than 90% leased. Team Industrial Services, Inc., announced plans to expand their current corporate headquarters in the City of Sugar Land as part of its recent acquisition of the Furmanite Corporation. Team’s merger with Furmanite approximately doubles the size of Team’s mechanical services capabilities and establishes a deeper, broader talent and resource pool that better supports customers across standard and specialty mechanical services. In November 2016, the Sugar 28 Land Development Corporation approved an agreement to secure the retention of 100 jobs and expansion of an additional 113 jobs in Sugar Land. As part of this project, Team will expend more than $2.4 million in capital investment and will occupy 59,000 square feet of office space at 13131 Dairy Ashford in Sugar Land, expanding its corporate headquarters. Sugar Land also continues to establish itself as a destination city with the opening of the Smart Financial Centre at Sugar Land, the region's first state-of-the-art, indoor performance venue which will set a new standard for live performance venues. The facility is equipped to host a wide array of programming including internationally renowned concert and comedy artists, children and family entertainment, theatrically-staged productions and cultural and performing arts attractions. The Smart Financial Centre at Sugar Land hosted the FBISD graduation ceremonies in June 2017 and was the recipient of a Houston Business Journal Landmark Award for Public Assembly. Designed for flexibility, the 200,000 square foot venue incorporates innovative moveable walls that can expand and contract to create four different seating capacities that range from an intimate setting of 3,400 seats to a maximum of 6,400. It also features 14 luxury suites, corporate hospitality areas, and the latest sound, light and video technology – as well as an adjacent 2.88 acres public plaza that is home to an interactive water fountain, tree covered grove, large lawn area for residents and visitors and a dedicated area for food truck connections. Based on voters’ approval of financing tools in 2008, funding is provided through a unique package of special funding sources restricted for economic development and tourism purposes – as well as equity and rent payments by ACE, with no general fund tax dollars being spent on the plaza or the Smart Financial Centre. Diversity Sugar Land is a highly educated and globally diverse community and was recognized as the nation’s first Community of Respect® by the Anti-Defamation League in 2007. * According to the US Census, persons who identify themselves as Hispanic or Latino can be of any race; the figures shown in the chart represent the percentage of individuals who identify themselves as Non-Hispanic or Latino by race or Hispanic or Latino. Ethnicity Black or African American 7% Hispanic or Latino* 11% Other 3% White 44% Asian 35% White Asian 29 Hispanic or Latino* Black or African American Other City Profile FY15 FY16 FY17 FY18 86,972 32.73 22,868 87,504 32.73 22,868 87,730 36.33 23,253 117,869 42.52 27,208 694 $180.41 M 711 $177.56 M 722 $186.18 M 798.5 $208.61 M 7 115 8,118 7 115 7,176 7 116 7,328 7 124 9,138 1 151 28,699 1 151 28,455 1 151 28,455 1 172 34,146 25 1378 1 6 1 37 27 2,132 1 5 1 26 27 2,132 1 5 1 26 27 2,132 1 5 2 26 782 500 338 85 61 840 537 338 85 61 842 538 338 85 61 1,022 848 477 94 63 44,666 6,343 2,976 45,666 6,781 3,103 45,478 6,678 3,541 60,462 7,346 3,893 6,798 7,242 7,249 7,386 3,015,916 13,353 3,031,285 13,353 2,953,717 15,101 3,003,271 15,408 Population (January 1st estimate) Square Miles Acres Budgeted Full Time Employees Total Operating Budget Fire Protection/ Emergency Medical Services Number of Stations Certified Firefighters Calls for Service Police Protection Number of Stations Certified Police Officers Calls for Service Parks & Recreation Number of Parks Park Acreage Swimming Pools Community Centers Recreation Centers Special Events Offered Public Works Lane Miles of Streets* Linear Miles of Sidewalk* Miles of Storm Sewer/Open Ditch* Traffic Signals Maintained City Facilities Utilities Equivalent Single Family Connections* Water Produced (Million Gallons)* Wastewater Treated (Million Gallons)* Community Development Building Permits Issued Airport Gallons of Fuel Sold Aircraft Served *Calculation methodologies have been updated on certain figures/or audited 30 Budget Process & Calendar The fiscal year begins October 1 of each year and ends on the following September 30. Each fiscal year City Council adopts a fiscal plan containing the goals established by Council and the City Manager’s plan to meet those goals. The plan adopted is comprised of the Operating Budget and the Capital Improvement Program. A calendar that outlines the budget process is included on the following page. Operating Budget Prior to the official budget kickoff, the Budget Office prepares a preliminary estimate of revenues and expenditures for the major funds, including the General, Debt Service, Utility, Surface Water and Airport funds. This overview is prepared to allow the City Manager to assess the overall financial position of the City, including potential revenue shortfalls or excess funding capacity for enhanced services. The City Manager shares this information with City Council at a planning retreat where City Council establishes priorities for the upcoming fiscal year. The City Manager prepares a budget message from this information that instructs the departments on how to prepare the budget for the upcoming fiscal year. In April, the budget process officially begins with the City Manager delivering the budget message and departments developing line-item operating budgets based on the message delivered by the City Manager. The expectation for departments is to formulate a budget that will allow services to be maintained at current levels. Requests that enhance or expand services are requested in conjunction with the preparation of the operating budget. Supplemental budget requests are based on items identified through Council priorities, departmental business plans, and state or federal mandates. The operating budget and enhancement submissions are due to the Budget Office in early May and are reviewed for completeness and to ensure submissions are consistent with the City Manager’s message. City management meets with departments in June to review proposed operating budgets and supplemental requests. Requests are prioritized by the City Manager and recommended to City Council for funding based on available resources. The budget is filed with City Council in July and reviewed in detail through a series of budget workshops in August. Changes that result from the Council workshops are incorporated into the final budget. The final budget is adopted by Council no later than the 25th of September in accordance with the City charter. Annual operating budgets are adopted for the General Fund, Special Revenue Funds, Internal Service Funds, Component Units, and Debt Service Fund. The budgets for the Enterprise Funds are adopted as a financial plan and guide. After Council adoption, the Annual Budget is compiled and distributed. Capital Improvement Program Annually, City staff prepares and files a Five-Year Capital Improvement Program (CIP). The CIP identifies needed capital improvements and financing for those improvements. The first year of the plan is incorporated into the annual budget to appropriate funds for the specific projects. The five-year CIP is fiscally constrained for all years. Cost estimates for years two through five of the five-year CIP are for planning purposes only, and are used in conjunction with the five-year financial plan of the City to determine potential project funding sources or to adjust project timing based on affordability. CIP development is a continuous process that utilizes a “project ready” approach whereby the scope and budget for a proposed improvement are clearly defined prior to the appropriation of funds for construction. It is a multi-year process and may extend over a one to three-year period. Each year future projects are re-evaluated and projects may be added, moved back or forward, depending on the current assessment of priority and project readiness. Project information is solicited from all departments, City Council, boards and commissions, and homeowner associations. 31 Staff also maintains a list of potential projects from citizen requests received either by telephone, e-mail or through youth sports leagues. A recommended project list is compiled, prioritized by year, and cost estimates assigned. Funding sources and levels are identified and developed by the Budget Office. The CIP has several layers of review by project managers, the Planning and Zoning Commission, and the City Manager. The recommended five-year CIP is filed with the annual budget in July. City Council reviews the draft and any changes requested by Council are incorporated into the final document. A summary for the final five-year CIP is then prepared and filed with the annual budget for Council consideration and approval. Upon Council adoption, the five-year CIP document is reproduced and distributed for implementation of the program. FY18 Budget Calendar February    CIP kick-off Cost allocation plan updated Key issues identified and prioritized by City Management March      CIP projects developed Budget Office prepares preliminary five-year forecast City Manager develops budget message for departments Budget Office develops instructions and forms for budget preparation City Council retreat – define priorities for FY18 April   Budget kick-off meeting: Directors and Managers - Introduce and distribute budget instructions - Line item allocation of budgets by departments - Departments prepare requests for additional funds Budget Office develops preliminary funding plan for five-year CIP May   Review list of CIP projects with Planning & Zoning Budget Office reviews departmental budget submissions June      Review list of CIP projects with City Council City Management reviews departmental budget submissions City Manager balances the proposed budget CIP project list finalized and fiscally constrained Five-year financial forecast finalized July    Prepares proposed budget document, transmittal letter and budget presentations July 19: Proposed budget filed with City Council Certified tax roll due from Central Appraisal District August    Council budget workshops (Thursday mornings) Public hearing on budget Publish effective tax rate calculations September   Final FY17 Budget Amendment Ordinance City Council adoption of FY18: o Annual budget, five-year CIP, compensation plan, tax rate, fee ordinance 32 Legal Requirements & Basis of Budgeting Legal Requirements for the Budget Pursuant to Section 6.03 of the Charter, the City Manager is responsible for preparing an annual budget for submission to City Council for review, consideration and revision. Both a letter describing the proposed new budget, as well as a balanced budget for the forthcoming fiscal year, are required to be filed not later than sixty days prior to the end of the current fiscal year. The budget must set forth the funding for services, programs, and activities of the various City departments. It must also include a multi-year capital improvement program (CIP) and a current year CIP budget. The City Secretary posts a notice at City Hall and publishes the notice in the official newspaper stating the times and places where copies of the message and budget are available for public review. One public hearing must be held on the budget at least 14 days after it is filed and before the budget is adopted. The budget is adopted by ordinance with one reading prior to the 25th day of the last month of the fiscal year, as required by the City charter. Budgets are approved by City Council at the fund level. Revenues approved through the budget process are estimates. During the fiscal year, the City Manager may transfer balances allocated by the budget between departments or activities within the total appropriation without City Council approval. City Council typically approves budget amendments during the year to reflect increases to expenditures as a result of grants received or to allocate from fund balances at the request of staff. Expenditure of funds that would exceed the total appropriation by fund requires City Council approval of an ordinance to amend the budget for that fund. At year end, as part of the next year’s budget process, the current fiscal year budget is amended by ordinance to capture any budget amendments that have been approved by City Council during the year. Capital Project funds are appropriated on a project length and as projects are completed and closed out staff may request a budget amendment to utilize those funds for other projects as appropriate. Capital projects are appropriated at the project level and most increase to project budgets require a Council budget amendment. At the end of each fiscal year, any unencumbered appropriation balances lapse or revert to the undesignated fund balance, except for capital projects, which are adopted using project length rather than fiscal year. Open encumbrances carry forward to the next fiscal year, but the budget is not adjusted to reflect those encumbrances. After the close of the fiscal year, Council has an opportunity to approve a budget ordinance that reflects an amendment of the current year’s budget for carry-over funding for non-recurring items that were budgeted but not completed during the prior fiscal year. Financial Management Policy Statements The Financial Management Policy Statements are approved through City Council Resolution. These statements give general guidelines for the development of fiscal policies to ensure that financial resources are available to meet present and future needs of citizens and aid in fulfilling the goal of a responsible city government. These policy statements are reviewed semi-annually and recommended revisions are discussed with City Council. The statements were last updated and approved by City Council Resolution 16-20 in June 2016. A copy of the current policy statements can be found at the end of this document. Budget Basis of Presentation Governmental and Fiduciary Funds Governmental fund budgets are prepared using the modified accrual basis. Revenues are budgeted when they are anticipated to be received and expenditures are budgeted in the period in which the liability is incurred, which is in accordance with Generally Accepted Accounting Principles (GAAP). The fund balance approach of governmental 33 funds or working capital approach can be identified as current assets less current liabilities. Governmental funds budget capital outlays as expenditures, but do not budget for non-cash expenditures such as accruals for sick and vacation liabilities and depreciation. Budgetary fund balances differ from the GAAP basis fund balances as they are adjusted for year-end accruals of revenues such as sales tax, franchise fees, and hotel occupancy taxes. Although these revenues are measurable at fiscal year-end, they are not available to fund obligations of the City on a cash basis. As such, the budget will show a different fund balance than the Comprehensive Annual Financial Report (CAFR). The budget also does not differentiate between the various categories of governmental fund balances under GASB 54. Proprietary and Internal Service Funds All proprietary funds are budgeted using a flow of economic resources, which is similar to the accrual basis of accounting, with exceptions listed below. Available balances are determined using the cash equivalent approach. The cash equivalent approach is defined as: cash + investments + accounts receivable + prepaid expenses - accounts payable = cash equivalents available. • • • • • • • Revenues are budgeted in the period they are earned and measurable. Expenses are budgeted in the period in which the liability was incurred. Depreciation of assets is not budgeted. Expenses to recognize unfunded liabilities are not budgeted, such as OPEB and IBNR claims. Capital outlay is budgeted as an expense in the year purchased. Principal payments are budgeted as an expense rather than a reduction to the liability. Bond proceeds are budgeted as revenue in the enterprise operating fund and transferred to the enterprise capital projects fund. Basis of Accounting The governmental fund financial statements are presented on a current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Measurable means that the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues susceptible to accrual include sales and use taxes, hotel occupancy taxes, franchise fees, charges for services and interest on temporary investments. Property tax levies collected after the fiscal year-end, which would be available to finance current operations, are immaterial and remain deferred. Other receipts become measurable and available when cash is received by the government and are recognized as revenue at that time. All proprietary funds are accounted for on an accrual basis. Revenues are recognized in the period in which they are earned and become measurable, and expenses in the period in which they are incurred and measurable. However, accruals are made only at fiscal year-end. Proprietary funds also record depreciation and amortization at fiscal yearend. Payment of principal is recorded as a reduction to the long-term liability at fiscal year-end. Financial Structure The accounts of the City are organized on the basis of funds and account groups, each of which operates separately and independently. The operations of each fund are accounted for with a separate set of self-balancing accounts comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses. Following is a description of the fund types and funds contained within each. A more detailed description of each fund can be found within the fund summary of the individual funds. 34 Governmental Funds The General Fund is the general operating fund and is used to account for all financial transactions not properly included in other funds. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City has several special revenue funds such as: Court Security, Court Technology, Tourism, Community Development Block Grant, Photographic Traffic Signal Enforcement, four SPA Debt Reduction Funds, and Police Seizures, Festival Site, Enclave at River Park, and Trust Funds as required. Debt Service Fund is used to account for the payment of interest and principal on all tax-backed bonds and other long-term debt not supported by enterprise funds. The City has a separate fund to account for taxable debt vs. taxexempt debt. Capital Projects Fund is used to account for the expenditures of resources transferred from operating funds, the sale of bonds, and other revenues for capital improvement projects. Projects are budgeted on a project length basis rather than a fiscal year basis, and funding carries over to the next fiscal year if the project is not completed. Proprietary Funds Enterprise Funds are used to account for services that are financed and operated in a manner similar to private business where the intent of the governing body is that the costs of providing goods and services to the general public will be financed or recovered primarily through user charges. The City operates four enterprise funds: Water Utility, Airport, Solid Waste and Surface Water. The enterprise funds also have corresponding capital project funds. Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has three internal service funds: Fleet Replacement, High Tech Replacement, and Employee Benefits. Fiduciary Funds Component Units are used to account for sales tax revenues for economic development activities and expenditures associated with promoting, assisting, and enhancing economic and industrial development activities. Each component unit has a separate board of directors. The City accounts for five component units: Sugar Land Development Corporation (SLDC), Sugar Land 4B Corporation (SL4B), Sugar Land Town Square TIRZ#1, Imperial TIRZ#3, and TIRZ#4. The SLDC is a blended component unit and is included as a special revenue fund in the government-wide financial statements. The TIRZ’s are not included in the City’s adopted budget, although TIRZ#3 and TIRZ#4 budgets are approved by City Council. 35 Goals & Vision City Council has identified and developed five priorities to direct the City’s growth and define staff responsibilities. This “picture” identifies priorities and challenges that the City will face in the near future. Each year, the City reviews these priorities and the progress being made. Underlying each priority are strategies for the City to strive for in the near future. The priorities and strategies were reviewed in October 2016 and updated to provide direction to staff in strategic planning efforts. Although the City adopts a one-year budget, the budget implements multi-year programs and strategies that extend programs and affect future budgets. Within each priority there are measures for City staff to achieve. The five City Council mid-term priorities and strategies are as follows: Safest City in America: Feeling Safe, Rapid Response  Have a rapid, effective and coordinated response to an emergency – Police, Fire, EMS, Public Works  Maintain people feeling safe, secure and comfortable throughout the community  Maintain a low crime rate in Sugar Land with a high clearance rate  Develop effective public safety communications with adequate staffing and using appropriate technology  Improve all-hazards and disaster preparedness, response and recovery through better coordination and intergovernmental cooperation  Utilizing technology to contribute to a safe community Strong Local Economy: Growing Business Investment  Attract targeted businesses with primary jobs: National and international  Growing tax base: Property and sales tax generators  Develop major business parks with class A office environment: Tract II and prison property / Newland (300 acres)  Expand tourism: venues, marketing and number of visitors  Develop three destination activity centers – major community focal points and regional destinations: Brazos River Park Festival Site, TIRZ #4, Imperial area  Protect strength of current economic generators Responsible City Government: Financially Sound, Exceptional Service  Maintain a high level of citizen satisfaction and cost-effective delivery of City Services: Value for tax dollars  Continue “championship” workforce: professional, well-trained, appropriately compensated, retention / internal promotional opportunities  Have City employees serve as the primary contact with customers  Maintain financially responsible government consistent with City’s mission 36  City of Sugar Land – a leader in customer service and superior service  City and partners operating efficiently and as a service business Great Place to Live: Development, Redevelopment, Mobility, Environment  Have predictable, compatible development and land uses consistent with Comprehensive Plan  Maintain adequate infrastructure and services to support growth and sustain the existing community  Revitalize / redevelop older commercial centers: Appearance and business vitality  Improve mobility within Sugar Land: Automobiles, bicycles and walking  Strive for land uses that build the wealth of the City – Balancing property tax value, sales tax revenue & primary jobs Building Community: Diverse Cultures, Leisure, Arts  Develop City facilities and venues that support community arts, events and festivals  Develop residents’ understanding of civic processes and community infrastructure  Support community events and festivals of diverse ages and cultures  Adapt to Sugar Land’s changing demographics  Expand arts throughout the community Vision 2032 Vision 2032 is an update to Vision 2025 which was developed through a process of community input and City Council guidance. Vision 2032 was formally adopted by the City Council through Resolution 17-04 in March 2017. Vision 2032 provides long-term goals for the ongoing development and improvement of the community. Sugar Land 2032 is a Safe, Beautiful, Inclusive, and Environmentally Responsible Community. Sugar Land 2032 has Destination Activity Centers, Great Neighborhoods, Superior Mobility, Outstanding Cultural, Educational, and Recreational Opportunities, and is a Regional Business Center of Excellence. Sugar Land 2032 has Balanced Development and Redevelopment. The Community Takes Pride in Sugar Land. Goals and Objectives Goal A: Safe Community 1. Safest city in the United States 2. 3. 4. 5. People feeling safe, secure and comfortable at home, in the neighborhood, at the parks, in commercial areas, and throughout the community Informed citizens participating in and taking responsibility for community safety and emergency preparedness Rapid, professional and coordinated response to an emergency call for service 6. City prepared for all hazards, disaster and post-disaster recovery including coordination with local, regional and state resources Health and building codes promoting highest reasonable standards for safety 7. Adequate supply of safe drinking water meeting national and state standards 37 8. City infrastructure to support pedestrians and bicycle riding safety Goal B: Beautiful Community 1. Attractive, well-designed and well-maintained public buildings, public parks and venues, streetscapes incorporating gateways, public spaces and public art throughout the city 2. Attractive, well-designed and well-maintained commercial areas and buildings, including beautiful landscapes, and appropriate signage 3. Attractive, well-maintained homes 4. Clean, well-maintained, attractive lakes and waterways, both public and private Goal C: Inclusive Community 1. Celebrating America, such as: 4th of July, Veteran’s Day, Memorial Day, flying the flag 2. 3. 4. 5. Community respecting and celebrating the history and heritage of Sugar Land, Texas, Fort Bend County, and the United States of America All family generations and cultures feeling welcome and having fun Celebrating and respecting the unique international and inter-cultural community that we have become Residents informed, actively involved/engaged in and participating in community and civic affairs Goal D: Environmentally Responsible Community 1. City as a leader – model for standards, processes and operations 2. Open green spaces throughout the city 3. 4. Effective storm water management and drainage system enhancing quality of surface water and protecting neighborhoods Quality wastewater treatment system 5. Water conservation 6. Reduced energy consumption and increased use of renewable resources 7. Convenient, easy, state-of-the-art recycling system with options and incentives Developments, redevelopments and buildings incorporating the concepts of environmental sustainability 8. 9. 10. Improved air quality Reasonable approach and balance with a “return on investments” – economic and/or community benefit Goal E: Destination Activity Centers 1. Each destination activity center having positive image and reputation – a sense of place 2. Variety of unique quality features that define each destination activity center 3. Pedestrian-friendly activity centers connected by alternative transportation modes and trails 4. Major community focal points and regional destinations, such as: Town Center, Brazos River Park, Performing Arts Center and Imperial Area 5. Public open space and parks for people to gather and enjoy; neighborhood to use; and to conduct community events 6. Cultural and entertainment events making Sugar Land a regional destination 38 Goal F: Great Neighborhoods 1. Strong neighborhood identity and pride 2. Renovated, modernized and well-maintained older housing stock 3. High percentage of owner occupied homes 4. Well-maintained, replaced and up to date neighborhood infrastructure: streets, utilities, sidewalks, street lights and drainage Strong, effective home owner and neighborhood associations maintaining and investing in community common areas, streetscapes and public spaces Maintaining quality neighborhoods buffered from or blended with adjacent commercial areas and non-residential land uses Residents involved in and taking responsibility for making the neighborhood a great place to live and call home Top quality community and neighborhood parks with active and passive areas 5. 6. 7. 8. Goal G: Superior Mobility 1. Effective traffic management facilitating predictable, acceptable travel times within Sugar Land 2. Effective intra-city public transportation system linking activity centers: trolley, electric bus, monorail 3. North/south mobility with several corridors 4. Interstate and U.S. highways efficiently moving traffic through and to/from Sugar Land (U.S. 59, Highway 6, 90A) 5. Successful, award winning corporate airport for businesses and general aviation 6. Commuter transit serving to link Sugar Land to the Greater Houston Metro Area and Fort Bend County/ Southwest 7. Pedestrian-friendly community with multi-use trails network for bikes and pedestrians connecting neighborhoods and the community 8. 9. Well-designed, well-maintained streets, sidewalks and multi-use trails Relocation of freight rail through traffic Goal H: Outstanding Cultural Arts, Educational and Recreational Opportunities 1. Brazos River Park as a regional destination with water-based activities on the river and lakes; hike and bike trails; innovative, unique venues and activities 2. Variety of cultural art opportunities, programs and venues serving as regional destinations 3. 4. 5. 6. 7. 8. 9. Public art throughout the city Major museums having educational significance Performing Arts Center (large community and small venues) for theater, concerts and entertainment serving as a regional destination Regional, family oriented, professional sports venue Major university campus serving residents, non-residents, and businesses with full range of undergraduate, graduate and post graduate programs Strong relationship and partnership between City of Sugar Land, schools, colleges, and universities Recreational programs serving the community 39 Goal I: Regional Business Center of Excellence 1. Targeted national and international businesses as defined in the Economic Development Plan 2. State of the art, world class infrastructure and technology to support local businesses 3. Business-friendly environment and reputation 4. Quality jobs at or above the average income in the community 5. 6. Tract II and the Central Prison Unit property developed as major business park. Commercial areas near U.S. 59 at University Boulevard developed with a Class A office component. Hotel and conference center targeting the best second tier market 7. Major regional state-of-the-art medical and health services center serving the southwest area 8. Multiple, high-quality, full and limited service hotels for business travelers and visitors 9. Unique, “upscale” retail with upgraded products Goal J: Balanced Development and Redevelopment 1. Balanced land use (70% residential/no less than 30% commercial, retail, office) and tax base (60% residential/40% commercial, retail, office) within city 2. Well-designed, well-maintained city infrastructure and facilities throughout the city 3. Innovative designs meeting city’s development standards and adding value to the surrounding neighborhoods 4. New developments and redevelopments consistent with city vision, comprehensive plan, policies and standards 5. Upgrading or reusing older commercial areas and commercial strip centers 6. Redevelopment uses that are appropriate for different locations and proactive city policies to assist 7. Redevelopment of historic structures into creative uses to showcase the city’s history 8. High-quality and well-maintained housing stock throughout the city 9. Mixed-use developments with commercial and multi-family residential elements Goal K: Community Pride in Sugar Land 1. City working in partnership with residents, community organizations, businesses and other government entities 2. People want to live here, businesses want to invest here 3. Successful community events and celebrations bringing people together 4. Being “A Community of Excellence” and recognized as such 5. Residents engaged in civic and community affairs 6. Businesses and residents volunteering and contributing to the Sugar Land community 7. Strong community organizations, charitable organizations and institutions 8. City leadership facilitating and being a catalyst for community pride 9. City demonstrating sound financial management practices and policies including cost-effective service delivery 10. Comprehensive Plan and associated master plans guide City decision making 11. Transparent and ethical decision-making process by City officials 40 Staffing Levels The number of budgeted Full Time Equivalent (FTE) positions in FY18 totals 798.50. A net increase of 19.5 FTE positions is included for FY18, all in relation to Annexation: 16.5 in the General Fund and 3.0 in the Enterprise Funds. The 16.5 positions in the General Government include 1.0 Accountant II and a Part-Time Accounts Payable Specialist. Changes in Community Services are as follows: 2.0 Field Supervisor, 4.0 General Maintenance Worker II, 2.0 Traffic Technician I, 1.0 Permit Technician, 1.0 Planner I, 1.0 Project Manager - Facilities, 1.0 Animal Services Officer, 1.0 Kennel Technician, 1.0 Code Enforcement Inspector, and 1.0 Fire Inspector. In the Utility Fund there are 2.0 Treasury Specialists and in the Solid Waste Fund there is 1.0 Environment Services Inspector. Employees by Service Areas The chart below illustrates the 798.50 FTE count by Service Area. General Administration is comprised of General Government, Tourism and Finance. Community Services is comprised of Public Works, Parks & Recreation, Environmental & Neighborhood Services, and Community Development. Utilities include Solid Waste, Surface Water, and Water Utility. FY18 - Employees By Service Area Fire Dept 16% General Admin 16% Police Dept 29% Community Services 22% Utilities 11% Airport 6% 41 Employees per 1,000 Population The table and graph below show the number of FTE positions per 1,000 residents. These figures exclude seasonal and temporary employees. FY12 saw a reduction of 18 positions through attrition due to the economic downturn. The decrease in the Employees per 1,000 Population ration for FY18 is the result of the annexation of the Greatwood and New Territory communities. The lower ratio has brought the city back to levels not seen prior to FY12. -2.73% 2.64% 2.58% 2.89% 2.37% 1.47% 82,999 84,134 86,495 86,972 87,504 87,730 Employees per 1,000 Population 7.74 7.83 7.82 8.00 8.14 8.24 798.50 10.52% 87,730 9.10 798.50 0.00% 117,869 6.77 Fiscal Year FTE FY12 FY13 FY14 FY15 FY16 FY17 FY18 PreAnnexation FY18 PostAnnexation 642.00 658.95 675.97 695.49 711.99 722.49 Percent Population Change Employees per 1,000 Population 11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 42 Historical Detail of Authorized Full-Time Equivalents Position Title Administrative Manager Assistant to City Manager Assistant to City Manager in Training 1 City Manager Customer Service Manager Executive Assistant City Manager Administrative Coordinator Assistant City Manager Executive Assistant Mangagement Assistant I Management Assistant II First Assistant City Manager Assistant City Managers Community Outreach Coordinator Community Engagement Manager Community Engagement Administrative Specialist City Secretary Deputy City Secretary Assistant City Secretary Executive Secretary Information Process Technician Receptionist - PT Records Manager Records Specialist City Secretary Assistant Communications Director Assistant Director of Communications Communications Director Communications Specialist Communications Manager Director of Communications Executive Secretary Graphics Coordinator Producer / Videographer Publications Manager Website Manager Communications 311 Call Center Ambassadors 311 Call Center Administrative Coordinator Assistant Director of HR Director of Human Resources HR Business Partner Human Resources Manager HR Specialist Risk Manager Safety Coordinator Human Resources Assistant City Attorney City Attorney Deputy City Attorney Executive Assistant First Assistant City Attorney City Attorney Director of Information Technology End User Support Specialist FY16 Budget 1.00 1.00 1.00 1.00 2.00 6.00 0.50 2.00 2.00 1.00 5.50 1.00 1.00 1.00 2.00 1.00 1.20 1.00 1.00 9.20 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 8.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 1.00 11.00 2.00 1.00 1.00 1.00 1.00 6.00 1.00 4.00 43 FY17 FY17 Budget Adjustments 1.00 1.00 1.00 2.00 5.00 0.50 2.00 2.00 1.00 5.50 1.00 1.00 1.00 2.00 1.00 1.20 1.00 1.00 9.20 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 8.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 1.00 11.00 3.00 1.00 1.00 1.00 6.00 1.00 4.00 1.00 1.00 (0.50) 1.00 1.00 1.00 2.50 1.00 1.00 2.00 (1.00) 1.00 2.00 2.00 - FY18 Base Budget 1.00 1.00 1.00 1.00 2.00 6.00 3.00 2.00 1.00 1.00 1.00 8.00 1.00 1.00 2.00 1.00 1.00 1.00 2.00 1.00 1.20 1.00 1.00 9.20 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 8.00 2.00 2.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 1.00 11.00 3.00 1.00 1.00 1.00 6.00 1.00 4.00 FY18 Additions - FY18 Budget 1.00 1.00 1.00 1.00 2.00 6.00 3.00 2.00 1.00 1.00 1.00 8.00 1.00 1.00 2.00 1.00 1.00 1.00 2.00 1.00 1.20 1.00 1.00 9.20 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 8.00 2.00 2.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 1.00 11.00 3.00 1.00 1.00 1.00 6.00 1.00 4.00 FY17 Budget FY17 Adjustments FY18 Base Budget 1.00 3.00 2.00 1.00 1.00 2.00 1.00 4.00 1.00 1.00 1.00 23.00 1.00 4.00 - 1.00 3.00 2.00 1.00 1.00 2.00 1.00 4.00 1.00 1.00 1.00 23.00 4.00 - 1.00 - 1.00 3.00 2.00 1.00 1.00 2.00 1.00 4.00 1.00 1.00 1.00 23.00 5.00 - - 1.00 3.00 2.00 1.00 1.00 2.00 1.00 4.00 1.00 1.00 1.00 23.00 5.00 - 2.00 1.00 2.00 1.00 - 2.00 1.00 - 2.00 1.00 Strategic Initiatives Manager1 Office of Strategic Initiatives Assistant Dir. Of Economic Dev. Business Retention Manager Compliance Manager Cultural Arts Manager Director of Economic Development Executive Assistant Executive Director of Business and Governmental Affairs Intergov'tl Relations Manager Public/Private Partnership Coordinator Public/Private Partnership Manager Economic Development Tourism & Destination Services Administrator Tourism & Destination Events General Government Total Director of Finance Assistant Director of Finance Executive Secretary Financial/Investment Analyst Finance Administration Budget Analyst 8.00 1.00 1.00 1.00 1.00 1.00 0.50 1.00 6.50 0.50 0.50 83.70 1.00 1.00 1.00 3.00 1.00 1.00 8.00 2.00 1.00 1.00 1.00 1.00 1.00 0.50 1.00 1.00 9.50 0.50 0.50 85.70 1.00 1.00 1.00 3.00 2.00 1.00 1.00 (1.00) 0.50 0.50 9.00 1.00 1.00 (1.00) 1.00 9.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 0.50 0.50 94.70 1.00 1.00 1.00 1.00 4.00 1.00 - 1.00 9.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 0.50 0.50 94.70 1.00 1.00 1.00 1.00 4.00 1.00 Budget Analyst1 Budget Officer Financial Analyst Sr. Financial Analyst Sr. Budget Analyst Budget Office Accountant I & II Accounting Supervisor Accounts Payable Specialist Senior Accounts Payable Specialist Accounts Payable Supervisor Chief Accountant Deputy Chief Accountant Executive Secretary Principal Accountant Sr. Accounts Payable Specialist Accounting Administrative Specialist Buyer Buyer I Contracts Coordinator 1.00 1.00 1.00 1.00 5.00 2.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 11.00 1.00 1.00 1.00 1.00 1.00 1.00 5.00 2.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 11.00 1.00 1.00 1.00 (1.00) 2.00 (1.00) 1.00 (1.00) - 1.00 1.00 2.00 5.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 11.00 1.00 1.00 1.00 0.50 1.50 - 1.00 1.00 2.00 5.00 3.00 1.00 1.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 12.50 1.00 1.00 Position Title Executive Secretary G.I.S. Specialist IT Manager IT Operations Manager IT Project Manager Lead Programmer Analyst Project Analyst System Administrator System Analyst Telecommunications Specialist User Services Supervisor Information Technology Performance Analyst 1 Management Assistant I 1 Assistant to City Manager Management Assistant II1 Strategic Initiatives Director FY16 Budget 44 FY18 Additions FY18 Budget Position Title Contracts Manager Purchasing Manager Purchasing Specialist1 Purchasing Court Clerk Court Docket Coordinator Court Services Specialist Deputy Court Administrator Juvenile C.S.W. Coordinator - PT Municipal Court Administrator Municipal Court Judge Records Clerk - PT Records Clerk Sr. Secretary Warrant Coordinator Municipal Court Finance & Municipal Court Total Administrative Manager Assistant Director of Public Works Director of Public Works Asset & Operations Manager Executive Secretary Department Analyst Sr. Secretary Public Works Administration Crew Chief Field Supervisor General Maintenance Worker (I & II) Project Manager Sr. Contract Inspector Street/Drainage Superintendent Street & Drainage Maintenance Contract Services Monitor ROW Service Coordinator ROW Service Manager ROW Maintenance Engineer (I) Field Supervisor Traffic Engr & Controls Manager City Traffic Engineer Traffic Mgmt Center Operator Traffic Operations Manager Traffic Technician (I & II) Traffic Operations Public Works Total Administrative Manager Assistant Director of Parks & Recreation Cultural Arts Manager Director of Parks & Recreation Executive Secretary Sr. Secretary Parks Administration Crew Chief Field Supervisor General Maintenance Worker (I & II) Parks Superintendent Parks Development Manager Park Ambassador - PT Temporary Help Parks Development Administrative Supervisor FY16 Budget FY17 Budget FY17 Adjustments FY18 Base Budget FY18 Additions FY18 Budget 1.00 1.00 1.00 1.00 - 1.00 1.00 - 1.00 1.00 2.00 7.00 4.00 1.00 1.00 1.00 0.50 1.00 1.00 0.50 1.00 1.00 12.00 38.00 0.50 1.00 0.50 1.00 1.00 4.00 5.00 2.00 8.00 1.00 1.00 1.00 18.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 1.00 5.00 9.00 34.00 1.00 2.00 1.00 1.00 1.00 1.00 7.00 3.00 1.00 6.00 1.00 11.00 1.00 2.00 7.00 4.00 1.00 1.00 1.00 0.50 1.00 1.00 0.50 1.00 1.00 12.00 38.00 0.50 1.00 0.50 1.00 1.00 4.00 5.00 2.00 8.00 1.00 1.00 1.00 18.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 1.00 5.00 9.00 34.00 1.00 2.00 1.00 1.00 1.00 6.00 4.00 1.00 9.00 1.00 0.50 15.50 1.00 1.00 (0.50) (0.50) 1.00 1.00 0.50 1.00 (1.00) 0.50 (1.00) (1.00) (1.00) 1.00 2.00 2.00 1.50 (1.00) 1.00 0.50 (0.50) - 3.00 7.00 4.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 39.00 0.50 1.00 0.50 0.50 1.00 1.00 4.50 5.00 2.00 8.00 1.00 1.00 17.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 2.00 1.00 5.00 11.00 35.50 1.00 2.00 1.00 1.00 1.00 6.00 4.00 1.00 9.00 1.00 0.50 15.50 1.00 1.50 1.00 4.00 5.00 1.00 2.00 3.00 8.00 - 3.00 7.00 4.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 40.50 0.50 1.00 0.50 0.50 1.00 1.00 4.50 5.00 3.00 12.00 1.00 1.00 22.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 2.00 1.00 7.00 14.00 43.50 1.00 2.00 1.00 1.00 1.00 6.00 4.00 1.00 9.00 1.00 0.50 15.50 1.00 45 Position Title Day Camp Counselor (seasonal) Day Camp Lead Counselor (seasonal) Day Camp Supervisor (seasonal) Event Coordinator Event Coordinator - PT Event Production Manager Parks Ambassador - PT Parks Facility Technician Recreation Center Manager Recreation Manager Recreation Coordinator Recreation Specialist - PT Recreation & Special Events Parks & Recreation Total Director of Planning Transportation & Mobility Planner Community Development Administration Administrative Manager Building Inspector Building Official Deputy Building Official Permit Clerk Coordinator Permit Clerk Supervisor Permits Supervisor Permits Technician Plans Examiner Sr. Building Inspector Sr. Permit Technician Temporary Help Permits City Planner - Development Development Review Coordinator Planner I Planner II Planner II Principal Planner Sr. Planner Planning & Development City Planner - Long Range Plan Administrative Coordinator Planner I1 Principal Planner Sr. Planner Transportation & Long Range Planning Administrative Coordinator Sr. Administrative Coordinator Assistant City Engineer City Engineer Construction Inspector Construction Services Manager Engineer (I, II, III, IV) Project Manager Project Manager - Performing Arts Center² Project Manager - Facilities Real Property Manager Sr. Construction Inspector Sr. Engineer Engineering Assistant Director of ENS Community Outreach Coordinator Director of Environmental & Neighborhood Services FY16 Budget FY17 Budget FY17 Adjustments FY18 Base Budget 1.78 0.46 0.24 1.00 1.00 1.81 1.00 2.00 4.00 2.98 17.27 35.27 1.00 1.00 2.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 3.00 2.00 0.08 15.08 1.00 2.00 2.00 1.00 1.00 7.00 1.00 1.00 1.78 0.46 0.24 1.00 1.00 1.00 1.81 1.00 1.00 4.00 2.98 17.27 38.77 1.00 1.00 2.00 1.00 3.00 1.00 1.00 1.00 1.00 2.00 3.00 2.00 0.08 15.08 1.00 2.00 1.00 2.00 6.00 1.00 1.00 (0.03) 0.04 0.01 (0.01) 0.02 0.03 0.03 0.17 0.17 1.00 (1.00) - 1.75 0.50 0.25 1.00 1.00 1.00 1.80 1.00 1.00 4.00 3.00 17.30 38.80 1.00 1.00 2.00 1.00 3.00 1.00 1.00 1.00 1.00 2.00 3.00 2.00 0.25 15.25 1.00 2.00 1.00 1.00 1.00 6.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1.75 0.50 0.25 1.00 1.00 1.00 1.80 1.00 1.00 4.00 3.00 17.30 38.80 1.00 1.00 2.00 1.00 3.00 1.00 1.00 1.00 2.00 2.00 3.00 2.00 0.25 16.25 1.00 2.00 1.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 3.00 2.00 2.00 1.00 4.00 1.00 3.00 4.00 1.00 - 1.00 1.00 4.00 2.00 2.00 1.00 4.00 1.00 3.00 4.00 1.00 - (1.00) 1.00 - 1.00 1.00 4.00 1.00 1.00 2.00 1.00 4.00 1.00 3.00 4.00 1.00 - 1.00 1.00 1.00 4.00 1.00 1.00 2.00 1.00 4.00 1.00 3.00 4.00 1.00 1.00 1.00 2.00 2.00 23.00 2.00 1.00 1.00 1.00 2.00 2.00 23.00 2.00 1.00 1.00 (1.00) (1.00) - 1.00 2.00 2.00 23.00 1.00 1.00 1.00 - 1.00 2.00 2.00 24.00 1.00 1.00 46 FY18 Additions FY18 Budget Position Title Environmental & Neighborhood Services Administration Automotive Technician (I & II) Fleet Maintenance Manager Fleet Services Supervisor Sr. Secretary Fleet Services Manager Fleet Services Courier Facilities Coordinator Facilities Services Manager Facilities Services Supervisor Facility Services Technician Program Coordinator Sr. Facility Services Tech Support Services Coordinator Temporary Help Facilities Management Animal Services Manager Animal Services Officer Animal Services Supervisor Animal Shelter Supervisor Kennel Technician - P/T Kennel Technician Administrative Coordinator Temporary Help Veterinary Technician Animal Services Environmental Services Inspector Storm Water Coordinator Stormwater Management Sanitarian Sr. Sanitarian Food Inspection Code Compliance Manager Code Enforcement Inspector Neighborhood Services Specialist Sr. Secretary Code Enforcement Code Compliance Administrator Code Compliance Coordinator Code Enforcement Inspector Residential Rental Inspector Rental Registration Environmental and Neighborhood Services Total Community Development Total Administrative Manager Assistant Police Chief Crime Analyst Department Analyst Executive Secretary Police Chief Police Sergeant Sr. Secretary Police Administration Administrative Manager Police Captain Police Lieutenant Police Officer Police Sergeant Receptionist Records Clerk Records Manager FY16 Budget FY17 Budget FY17 Adjustments FY18 Base Budget 4.00 4.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 1.00 2.00 2.00 - 4.00 4.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 2.00 2.00 1.00 8.00 1.00 3.00 1.00 0.50 1.00 1.48 1.00 8.98 0.50 1.00 1.50 2.00 1.00 3.00 1.00 3.00 1.00 5.00 1.00 2.00 3.00 40.48 90.56 0.50 2.00 1.00 1.00 1.00 1.00 1.00 1.00 8.50 0.50 1.00 1.00 3.00 2.00 1.00 4.00 - 8.00 1.00 3.00 1.00 1.00 1.00 0.98 1.00 8.98 0.50 1.00 1.50 3.00 1.00 4.00 1.00 3.00 1.00 5.00 1.00 1.00 1.00 3.00 41.48 91.56 0.50 2.00 1.00 1.00 1.00 1.00 1.00 1.00 8.50 0.50 1.00 1.00 3.00 2.00 1.00 4.00 - (2.00) 1.00 1.00 0.02 0.02 (1.00) (1.00) 1.00 1.00 (0.98) (0.81) (1.00) (1.00) 1.00 0.50 2.00 5.00 1.00 1.00 1.00 8.00 1.00 1.00 1.00 2.00 2.00 1.00 8.00 1.00 3.00 1.00 1.00 1.00 1.00 1.00 9.00 0.50 0.50 3.00 1.00 4.00 1.00 3.00 1.00 5.00 1.00 1.00 1.00 1.00 4.00 40.50 90.75 0.50 2.00 1.00 1.00 1.00 1.00 1.00 7.50 0.50 1.00 1.00 4.00 2.00 1.00 4.00 0.50 47 FY18 Additions 1.00 1.00 2.00 1.00 1.00 3.00 6.00 - FY18 Budget 2.00 5.00 1.00 1.00 1.00 8.00 1.00 1.00 1.00 2.00 2.00 1.00 8.00 1.00 4.00 1.00 1.00 1.00 1.00 1.00 1.00 11.00 0.50 0.50 3.00 1.00 4.00 1.00 4.00 1.00 6.00 1.00 1.00 1.00 1.00 4.00 43.50 96.75 0.50 2.00 1.00 1.00 1.00 1.00 1.00 7.50 0.50 1.00 1.00 4.00 2.00 1.00 4.00 0.50 Position Title Sr. Secretary Support Services Bureau Police Captain Police Lieutenant Police Officer Crime Prevention Officer Police Sergeant Sr. Secretary Patrol Asst. Victim Services Liaison Crime Analyst Crime Scene Technician Police Captain Police Lieutenant Police Officer Detectives Police Sergeant Sr. Secretary Warrant Clerk Criminal Investigations Detention Officer Police Sergeant Detention Facility Administrative Specialist Deputy PS Dispatch Manager PS Dispatch Shift Supervisor PS Dispatcher PT PS Quality Assurance Supervisor Public Safety Dispatch Director Public Safety Dispatch Manager Public Safety Dispatch Recruit Public Safety Dispatcher (I &II) Public Safety Communications Police&Public Safety Dispatch Total Administrative Coordinator Administrative Manager Executive Secretary Fire Chief Fire Administration Assistant Fire Chief Battalion Chief Fire Captain Fire Driver Fire Lieutenant Firefighter Emergency Services Battalion Chief EMS Fire Captain Firefighter Emergency Medical Services Administrative Secretary Asst. Fire Chief Asst. Fire Marshall Fire Captain Fire Inspector/Investigator Fire Lieutenant Sr. Secretary Prevention Assistant Fire Chief Emergency Mgmt Specialist Executive Secretary Emergency Management FY16 Budget 2.00 14.50 1.00 7.00 84.00 18.00 1.00 111.00 0.50 1.00 2.00 1.00 1.00 21.30 5.00 1.00 1.00 33.80 5.00 1.00 6.00 1.00 1.00 4.00 1.00 20.00 27.00 200.80 1.00 1.00 1.00 3.00 1.00 3.00 1.00 21.00 22.00 42.00 90.00 1.00 1.00 11.00 13.00 1.00 1.00 1.00 1.00 2.00 2.00 8.00 1.00 1.00 1.00 3.00 48 FY17 Budget FY17 Adjustments FY18 Base Budget 2.00 14.50 1.00 7.00 84.00 18.00 1.00 111.00 0.50 1.00 2.00 1.00 1.00 21.50 5.00 1.00 1.00 34.00 5.00 1.00 6.00 1.00 4.00 1.00 1.00 1.00 1.00 18.00 27.00 201.00 1.00 1.00 1.00 3.00 1.00 3.00 1.00 21.00 22.00 42.00 90.00 1.00 1.00 11.00 13.00 1.00 1.00 1.00 2.00 2.00 1.00 8.00 1.00 1.00 1.00 3.00 1.50 1.00 12.00 1.00 3.00 17.00 3.00 3.00 (1.00) 2.00 (1.00) 2.00 9.00 (3.00) 8.00 28.50 7.00 7.00 - 2.00 16.00 1.00 8.00 96.00 1.00 21.00 1.00 128.00 0.50 1.00 2.00 1.00 1.00 21.50 3.00 5.00 1.00 1.00 37.00 5.00 1.00 6.00 6.00 1.00 1.00 2.00 10.00 15.00 35.00 229.50 1.00 1.00 1.00 3.00 1.00 3.00 1.00 21.00 22.00 42.00 90.00 1.00 1.00 18.00 20.00 1.00 1.00 1.00 2.00 2.00 1.00 8.00 1.00 1.00 1.00 3.00 FY18 Additions 1.00 1.00 - FY18 Budget 2.00 16.00 1.00 8.00 96.00 1.00 21.00 1.00 128.00 0.50 1.00 2.00 1.00 1.00 21.50 3.00 5.00 1.00 1.00 37.00 5.00 1.00 6.00 6.00 1.00 1.00 2.00 10.00 15.00 35.00 229.50 1.00 1.00 1.00 3.00 1.00 3.00 1.00 21.00 22.00 42.00 90.00 1.00 1.00 18.00 20.00 1.00 1.00 1.00 3.00 2.00 1.00 9.00 1.00 1.00 1.00 3.00 Position Title Assistant Fire Chief Battalion Chief Admin Battalion Chief/Training Fire Captain Sr. Secretary Professional Development Fire Total GENERAL FUND LESS PROGRAM EMPLOYEES LESS TEMPORARY EMPLOYEES GENERAL FUND NET Police Officer Court Security COURT SECURITY FUND Destination Event Manager SPECIAL EVENTS SPECIAL REVENUE FUNDS Tourism Coordinator Visitor Services Specialist PT Tourism & Destination Services Administrator Tourism & Marketing Manager Tourism Program TOURISM FUND Administrative Manager Assistant Director of Public Works Asset & Operations Manager Contract Services Coordinator Director of Public Works Executive Secretary Sr. Secretary Utility Administration Crew Chief Facility Operations Manager Field Operations Manager Field Supervisor General Maintenance Worker (I & II) Water Distribution Field Supervisor I & C Technician P&M Technician Lead Operator Lead Utilities Operator Utilities Operator Water Services Supervisor Water Production Crew Chief Electrician Field Supervisor General Maintenance Worker (I & II) Wastewater Collection Crew Chief Electrician Facility Support Specialist P&M Technician I P&M Technician II Utilities Operator Water Services Supervisor Wastewater Treatment Crew Chief Field Supervisor FY16 Budget FY17 Budget 1.00 2.00 1.00 1.00 5.00 122.00 604.33 (9.00) (2.56) 592.77 0.70 0.70 0.70 0.70 1.00 0.50 1.00 2.50 2.50 0.50 1.00 1.00 0.50 1.00 1.00 5.00 4.00 0.50 1.00 0.50 5.00 11.00 1.00 0.50 1.00 1.00 1.50 0.50 5.50 2.00 0.50 4.00 6.50 1.00 0.50 3.00 0.50 0.50 5.50 2.00 1.00 49 1.00 1.00 1.00 1.00 1.00 5.00 122.00 611.03 (10.00) (1.56) 599.47 0.50 0.50 0.50 1.00 1.00 1.50 1.00 1.00 0.50 1.00 3.50 3.50 0.50 1.00 1.00 0.50 1.00 1.00 5.00 4.00 0.50 1.00 0.50 4.00 10.00 1.00 0.50 1.00 1.50 0.50 4.50 2.00 0.50 0.50 5.00 8.00 1.00 1.00 3.00 0.50 0.50 6.00 2.00 1.00 FY17 Adjustments 7.00 46.22 (4.00) 0.31 42.53 0.50 0.50 1.00 0.50 2.00 3.50 (1.00) 2.00 2.00 3.00 1.00 0.50 1.00 2.50 1.00 1.00 2.00 - FY18 Base Budget 1.00 1.00 1.00 1.00 1.00 5.00 129.00 657.25 (14.00) (1.25) 642.00 0.50 0.50 0.50 1.00 1.00 1.50 1.00 1.00 0.50 1.00 3.50 3.50 0.50 1.00 0.50 1.00 0.50 1.00 1.00 5.50 5.00 0.50 1.00 1.00 6.00 13.50 1.00 0.50 2.00 3.50 0.50 7.50 3.00 0.50 1.00 6.00 10.50 1.00 1.00 1.00 3.00 1.00 0.50 0.50 8.00 2.00 1.00 FY18 Additions 1.00 16.50 16.50 - FY18 Budget 1.00 1.00 1.00 1.00 1.00 5.00 130.00 673.75 (14.00) (1.25) 658.50 0.50 0.50 0.50 1.00 1.00 1.50 1.00 1.00 0.50 1.00 3.50 3.50 0.50 1.00 0.50 1.00 0.50 1.00 1.00 5.50 5.00 0.50 1.00 1.00 6.00 13.50 1.00 0.50 2.00 3.50 0.50 7.50 3.00 0.50 1.00 6.00 10.50 1.00 1.00 1.00 3.00 1.00 0.50 0.50 8.00 2.00 1.00 Position Title General Maintenance Worker II Customer Service Lab Manager Lab Technician Pretreatment Coordinator Water Quality Manager Water Quality Supervisor Water Quality Technician Water Quality Water Conservation Manager Water Conservation Billing/Collection Spec. (I & II) Billing Supervisor Customer Service Rep Collections & Customer Ser Sup Treasury Manager Treasury Specialist Treasury UTILITY FUND Electrician I & C Technician Lab Technician Facility Operations Manager Intergov'tl Relations Manager General Maintenance Worker II Lead Operator Lead Utilities Operator Mechanic Utilities Operator Surface Water Chief Operator Surface Water Plant Manager Water Resources Manager Surface Water SURFACE WATER FUND Sr. Secretary Administrative Secretary Administrative Specialist Administrative Supervisor Airport Business Manager Airport Development Manager Airport Specialist Assistant Director of Aviation Director of Aviation Airport Administration Airport Operations Agent Airport Operations Manager Airport Operations Specialist Airport Operations Supervisor Airfield Operations Airport Services Rep Airport Services Rep - P/T Airport Services Rep I Airport Services Rep II ASR Supervisor Concierge Manager Flight Line Crew Line Services Superintendent Field Supervisor Superintendent Line Crew I Line Crew II Line Crew III Line Services Manager FY16 Budget 6.00 9.00 0.50 1.00 1.00 2.00 4.50 1.00 1.00 3.00 1.00 4.00 1.00 1.00 1.00 11.00 59.00 0.50 0.50 0.50 0.50 0.50 1.00 2.00 1.00 3.00 1.00 1.00 1.00 12.50 12.50 1.00 1.00 1.00 2.00 1.00 6.00 1.00 1.00 1.00 3.00 5.00 0.50 1.00 1.00 12.00 1.00 50 FY17 Budget FY17 Adjustments FY18 Base Budget 6.00 9.00 1.00 0.50 1.00 2.00 4.50 1.00 1.00 3.00 1.00 4.00 1.00 1.00 1.00 11.00 59.00 0.50 0.50 0.50 0.50 0.50 1.00 2.00 1.00 3.00 1.00 1.00 1.00 12.50 12.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 3.00 0.50 3.00 2.00 1.00 1.00 9.00 3.00 1.00 2.00 2.00 1.00 1.00 14.50 (0.50) (2.00) 2.00 (0.50) (0.50) 1.00 (1.00) (1.00) 1.00 1.00 (1.00) (2.00) (1.00) 3.00 - 8.00 11.00 1.00 0.50 1.00 3.00 5.50 1.00 1.00 3.00 1.00 4.00 1.00 1.00 1.00 11.00 73.50 0.50 0.50 0.50 0.50 1.00 2.00 1.00 3.00 1.00 1.00 1.00 12.00 12.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 3.00 0.50 3.00 2.00 1.00 1.00 7.00 2.00 3.00 1.00 FY18 Additions 2.00 2.00 2.00 - FY18 Budget 8.00 11.00 1.00 0.50 1.00 3.00 5.50 1.00 1.00 3.00 1.00 4.00 1.00 1.00 3.00 13.00 75.50 0.50 0.50 0.50 0.50 1.00 2.00 1.00 3.00 1.00 1.00 1.00 12.00 12.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7.00 1.00 1.00 1.00 3.00 0.50 3.00 2.00 1.00 1.00 7.00 2.00 3.00 1.00 Position Title Line Supervisor FBO Services Café Attendant Café Attendant I Café Supervisor Café Select Airfield & Facilities Manager Crew Chief Custodian - PT Janitor General Maintenance Worker (I & II) Maintenance & Operations AIRPORT FUND Environmental Manager Environment Coordinator Environment Services Inspector Solid Waste Monitor Solid Waste SOLID WASTE FUND Records Manager Administrative Coordinator RED LIGHT CAMERA FUND TOTAL ALL FUNDS Less Seasonal TOTAL FULL TIME EQUIVALENT FY16 Budget FY17 Budget FY17 Adjustments FY18 Base Budget FY18 Additions FY18 Budget 3.00 23.50 1.50 1.00 2.50 1.00 1.00 1.00 6.00 9.00 44.00 1.00 0.50 1.00 2.50 2.50 0.50 0.50 714.47 (2.48) 2.00 22.50 2.00 1.00 3.00 1.00 2.00 1.50 6.00 10.50 46.00 1.00 1.50 2.50 2.50 0.50 0.50 724.97 (2.48) 1.50 (1.50) 1.00 (1.00) 0.50 (0.50) 56.53 (0.02) 2.00 22.50 2.00 1.00 3.00 1.00 2.00 1.50 6.00 10.50 46.00 1.00 1.00 0.50 2.50 2.50 0.50 0.50 781.50 (2.50) 1.00 1.00 1.00 19.50 - 2.00 22.50 2.00 1.00 3.00 1.00 2.00 1.50 6.00 10.50 46.00 1.00 1.00 1.50 3.50 3.50 0.50 0.50 801.00 (2.50) 711.99 722.49 56.51 779.00 19.50 798.50 51 Debt Service Funds The City has two debt service funds, a tax-exempt Debt Service Fund for the repayment of tax-exempt debt for certificates of obligation and general obligation bonds, and a taxable Debt Service Fund established for the repayment of taxable debt issued for the Smart Financial Centre at Sugar Land. The Debt Service Funds account for the issuance of debt and provides for the payment of debt principal and interest as they come due. In the Debt Service Fund for tax-exempt debt, an ad valorem (property) tax rate and tax levy is required to be computed and levied to produce sufficient revenue to satisfy annual debt service requirements. The City has no general obligation legal debt limit other than a ceiling on the tax rate specified by the State of Texas. Under the rules of the Texas Attorney General, the City may issue general obligation debt in an amount no greater than that which can be serviced by a debt service tax rate of $1.50 per $100 assessed valuation based on 99% collection. The City’s tax backed bond rating is “AAA” by Fitch Ratings and Standard and Poor’s. The City’s Financial Management Policy Statements designate that property taxes generated from the Airport are to be transferred to the Airport in support of development and operations. The City also has a policy to rebate 50% of the city property taxes collected from properties within in-City MUDs back to the districts. The Debt Service Fund expenditures include the debt service component of these agreements. General Debt Service Fund Fiscal Year 2017 Revenues total $21,973,220, which includes $17,860,700 in current and delinquent property taxes. Other funding sources include transfers from other funds and interest income. Transfers from the Utility Fund and Tourism Fund support debt service related to activities supported by those funds. Transfers from CIP represent the funds needed from transportation fees to support debt issued for University Boulevard South. Expenditures are projected at $22,753,772, which includes $20,733,443 in debt service payment, $18,000 for fiscal fees, $1,880,900 for rebates to in-City MUDs, $95,300 transfer to the Airport Fund for taxes collected on Airport values, and $14,279 to the Enclave at RiverPark Public Improvement District. The fund balance at 9/30/17 is projected to be $4,909,597, which is $2,836,253 over the fund balance policy requirement of 10% of annual debt service. Fiscal Year 2018 Funding from property taxes for $17,493,100 represents 60.4% of funding sources. In addition the fund will received a total of $7.5 million from the annexation of Greatwood and New Territory for the district property tax and fund balance. Tax revenues are budgeted based on the certified tax roll and a debt tax rate of $0.13560 per $100 valuation. Other FY18 Revenue Sources funding sources include transfers from the Water Utility, CIP Transfers13.5% Non-Bond and Tourism Funds, and interest income. The budget includes 100% recovery on water/wastewater debt assumed from MUDs through an inter-fund transfer. The FY18 transfer from the water utility fund totals $2,055,221. In 2002, the City issued $10.1 million in combination Tax and Hotel Occupancy Tax COs for a portion of the $19.3 million total City contribution to construction of a conference center 52 Interest Income 0.2% Annexation 25.9% Property Tax 60.4% in the Sugar Land Marriott. The certificates are backed by a pledge of Hotel Occupancy Taxes. This issue was refunded in FY10 with the GO Refunding Bonds, Series 2010 with the savings being passed on to the Tourism Fund. For FY18, $702,976 will be transferred to cover the debt service requirement for the conference center. In addition a total of $703,088 will also be transferred to cover the annual debt payment for debt issued in FY15 to fund a portion of the Smart Financial Centre at Sugar Land along with the adjacent plaza. There is also a transfer in from CIP fund from transportation fees for $472,500 to support the debt issued for University Boulevard South. The debt service requirement on current outstanding debt is $26,765,544. The budget incorporates $142,800 for debt service on the anticipated issuances of $8.1 million in new debt. Rebates to in-City MUDs and inter-fund transfers totals $1,912,010. The budgeted ending fund balance at 9/30/18 is $5,043,335, $2,352,500 above the policy requirement of 10% of annual debt service requirements. For FY18 the ratio of net bonded debt to taxable value is expected to increase from 1.29% to 1.34%, which is a healthy ratio. The ratio is utilized by bond rating agencies to compare the City’s ability to repay debt. The increase is due to additional debt issued in FY18. 1.6% Net Bonded Debt vs. Taxable Valuation 1.37% 1.4% 1.28% 1.18% 1.34% 1.10% 1.2% 1.29% 1.0% 1.06% 0.8% 0.6% FY12 FY13 FY14 FY15 FY16 FY17 FY18 Net Bonded Debt Per Capita Net bonded debt per capita is expected to decrease to $1,459 due to the addition of approximately 30,000 residents as the City will annex New Territory and Greatwood in December 2017. $2,700 $1,800 $1,517 $1,739 $1,352 $1,290 $1,370 $1,820 $1,459 $900 $FY12 53 FY13 FY14 FY15 FY16 FY17 FY18 Debt Service Fund – Taxable Debt One of the sources of funding for the Smart Financial Centre at Sugar Land (ACSL) is taxable Certificates of Obligation for $27 million. The taxable CO issue carries the City’s AAA bond rating from Standard and Poor’s and Fitch, and will not be repaid by property taxes. While the Smart Financial Centre at Sugar Land was under construction, the SLDC covered the debt service payments (interest only) for the 2015 and 2016 debt service payments. As the lease began in December 2016, lease payments from ACE now supports the debt payments and will eventually fund a debt service reserve equal to the last three years debt payments. Payments will be made monthly according to the terms of the 30 year lease. Fiscal Year 2017 Total revenues is projected for $1,807,321. Lease revenue from ACE Sugar Land, LLC for the Smart Financial Centre at Sugar Land is projected at $1,251,521 and interest income of $300. A transfer in from SLDC for $555,500 covered the interest payment that was due in December. Total debt service payments due in fiscal year 2017 is $1,110,999. The ending fund balance at 9/30/17 is $754,861. Fiscal Year 2018 Total revenues are budgeted for $1,602,049. Lease revenue from ACE Sugar Land, LLC for the Smart Financial Centre at Sugar Land is budgeted at $1,601,299 and interest income of $750. Total debt service payments due in fiscal year 2018 is $1,591,199. Payments are due in December and June. Fiscal fees are budgeted at $1,000. The ending fund balance at 9/30/18 is $764,711. 54 CITY OF SUGAR LAND DEBT SERVICE FUND INCOME STATEMENT FY16 Actuals REVENUES Current Property Tax District Property Taxes - Annexation Delinquent Property Taxes Interest on Investments Miscellaneous Refunding Bond Proceeds Operating Revenues Total Transfers In Total Revenues EXPENDITURES Current Outstanding & New Debt Fiscal Fees/Other Issuance Costs Refunding Payment to Escrow Total Debt Service Rebates & Assignments Transfers to Other Funds Miscellaneous Total Other Expenditures Total Expenditures CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING Policy Requirement Over/(Under) Policy $ 16,981,810 $ 142,902 43,622 37,231,195 54,399,529 4,211,517 58,611,046 18,497,548 11,500 395,962 36,935,787 55,840,797 1,605,670 53,879 950 1,660,499 57,501,296 FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 17,817,900 $ 42,800 25,000 17,885,700 4,061,279 21,946,979 17,817,900 $ 42,800 45,000 6,241 17,911,941 4,061,279 21,973,220 17,374,700 $ 5,837,387 118,400 50,000 1,664,819 25,045,306 3,933,785 28,979,091 - $ - 17,374,700 5,837,387 118,400 50,000 1,664,819 25,045,306 3,933,785 28,979,091 21,080,043 18,000 21,098,043 1,868,280 109,579 11,850 1,989,709 23,087,752 20,733,443 18,000 20,751,443 1,880,900 109,579 11,850 2,002,329 22,753,772 26,908,344 21,000 26,929,344 1,804,270 107,740 4,000 1,916,010 28,845,354 - 26,908,344 21,000 26,929,344 1,804,270 107,740 4,000 1,916,010 28,845,354 $ 1,109,749 4,580,400 5,690,149 $ (1,140,773) 5,690,149 4,549,376 $ (780,552) 5,690,149 4,909,597 $ 133,737 4,909,597 5,043,334 $ $ $ 1,849,755 $ 3,840,394 $ 2,108,004 $ 2,441,372 $ 2,073,344 $ 2,836,253 $ 2,690,834 2,352,500 55 - $ 133,737 4,909,597 5,043,334 $ $ 2,690,834 2,352,500 CITY OF SUGAR LAND DEBT SERVICE FUND - TAXABLE CO'S INCOME STATEMENT FY16 Actuals REVENUES Rent Interest Income Operating Revenues Transfers In Total Revenues EXPENDITURES Current Outstanding & New Debt Fiscal Fees/Other Total Expenditures CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING Accrued Sales Tax Debt Service Reserve FUND BALANCE - ENDING $ $ FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget - $ 257 257 1,110,999 1,111,256 1,200,749 250 1,200,999 555,500 1,756,499 1,251,521 $ 300 1,251,821 555,500 1,807,321 1,601,299 $ 750 1,602,049 1,602,049 - $ - 1,601,299 750 1,602,049 1,602,049 1,110,999 1,110,999 1,110,999 1,110,999 1,110,999 1,000 1,111,999 1,591,199 1,000 1,592,199 - 1,591,199 1,000 1,592,199 257 59,282 59,539 $ 645,500 59,539 705,039 $ 56 695,322 59,539 754,861 $ 9,850 754,861 764,711 $ - $ 9,850 754,861 764,711 CITY OF SUGAR LAND DEBT SERVICE SCHEDULE OF REQUIREMENTS* TO MATURITY BY ISSUE Issue 2008 2008 2009 2010 2010 2010 2012 2012A 2013 2014 2014 2014 2015 2015 2015 2016 2016 2016 2017 Description Certificates of Obligation General Obligation Certificates of Obligation General Obligation Certificates of Obligation General Obligation General Obligation General Obligation Certificates of Obligation Tax Notes Certificates of Obligation General Obligation Certificates of Obligation General Obligation General Obligation General Obligation Certificates of Obligation General Obligation Certificates of Obligation Sub Total 2008 FBC MUD21 2012 FBC MUD21 2017 Greatwood MUDs 2017 New Territory MUDs Sub-Total Total Debt Requirement New New New New New Refunding Refunding Refunding New New New Refunding New New Refunding Refunding New New New Assumed Obligations Assumed Obligations Assumed Obligations Assumed Obligations * Excludes anticipated new debt 57 Principal Interest 210,000 $ 4,200 $ 325,000 6,906 1,057,441 18,505 755,000 260,869 8,335,000 2,563,038 9,715,000 1,688,550 1,985,000 62,300 2,925,000 428,900 20,595,000 5,582,697 4,033,169 159,499 9,465,000 5,510,621 15,075,000 2,642,075 13,975,000 4,785,066 12,100,000 3,918,647 9,275,000 2,546,000 22,745,000 6,277,550 18,230,000 5,389,800 7,195,000 2,003,525 19,060,000 7,168,025 177,055,610 51,016,772 100,000 1,775 1,685,000 99,825 27,870,000 4,589,307 6,465,000 907,507 36,120,000 5,598,414 $ 213,175,610 $ 56,615,186 $ $ Total 214,200 331,906 1,075,946 1,015,869 10,898,038 11,403,550 2,047,300 3,353,900 26,177,697 4,192,668 14,975,621 17,717,075 18,760,066 16,018,647 11,821,000 29,022,550 23,619,800 9,198,525 26,228,025 228,072,382 101,775 1,784,825 32,459,307 7,372,507 41,718,414 269,790,796 CITY OF SUGAR LAND DEBT SERVICE SCHEDULE OF REQUIREMENTS* FISCAL YEAR 2018 BY ISSUE Issue 2008 2008 2009 2010 2010 2010 2012 2012A 2013 2014 2014 2014 2015 2015 2015 2016 2016 2016 2017 Description Certificates of Obligation General Obligation Certificates of Obligation General Obligation Certificates of Obligation General Obligation General Obligation General Obligation Certificates of Obligation Tax Notes Certificates of Obligation General Obligation Certificates of Obligation General Obligation General Obligation General Obligation Certificates of Obligation General Obligation Certificates of Obligation Sub Total 2008 FBC MUD21 2012 FBC MUD21 2017 Greatwood MUDs 2017 New Territory MUDs Sub-Total Total Debt Requirement New New New New New Refunding Refunding Refunding New New New Refunding New New Refunding Refunding New New New Assumed Obligations Assumed Obligations Assumed Obligations Assumed Obligations * Excludes anticipated new debt 58 Principal Interest Total 210,000 $ 4,200 $ 214,200 325,000 6,906 331,906 1,057,441 18,505 1,075,946 105,000 28,338 133,338 995,000 303,875 1,298,875 1,470,000 400,800 1,870,800 1,540,000 42,700 1,582,700 390,000 103,350 493,350 1,320,000 638,094 1,958,094 785,743 54,257 840,000 265,000 438,088 703,088 2,655,000 682,575 3,337,575 550,000 494,681 1,044,681 480,000 408,219 888,219 0 392,000 392,000 0 980,600 980,600 960,000 594,900 1,554,900 380,000 196,850 576,850 955,000 779,400 1,734,400 14,443,184 6,568,338 21,011,522 100,000 1,775 101,775 435,000 44,025 479,025 4,025,000 977,565 5,002,565 170,657 170,657 4,560,000 1,194,022 5,754,022 $ 19,003,184 $ 7,762,360 $ 26,765,544 $ CITY OF SUGAR LAND DEBT SERVICE REQUIREMENTS TO MATURITY TOTAL OF ALL DEBT OUTSTANDING* Interest $ 19,003,184 $ 18,456,024 18,525,406 18,610,996 16,115,000 16,170,000 15,710,000 14,030,000 11,080,000 8,555,000 8,750,000 8,120,000 7,565,000 5,620,000 5,690,000 5,760,000 4,610,000 4,670,000 2,805,000 1,500,000 580,000 610,000 640,000 213,175,610 $ 7,762,360 $ 7,178,286 6,497,179 5,791,786 5,100,164 4,459,982 3,791,882 3,173,745 2,621,469 2,178,703 1,833,094 1,514,116 1,224,319 987,707 792,187 602,003 435,597 289,184 170,181 99,044 61,600 37,800 12,800 56,615,186 $ 2021 September 30 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTAL Principal 2020 FY Ending $ Total 26,765,544 25,634,310 25,022,585 24,402,782 21,215,164 20,629,982 19,501,882 17,203,745 13,701,469 10,733,703 10,583,094 9,634,116 8,789,319 6,607,707 6,482,187 6,362,003 5,045,597 4,959,184 2,975,181 1,599,044 641,600 647,800 652,800 269,790,796 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Principal * Interest Excludes anticipated new debt 59 2040 2039 2038 2037 2036 2035 2034 2033 2032 2031 2030 2029 2028 2027 2026 2025 2024 2023 2022 2019 2018 $0 CITY OF SUGAR LAND DEBT SERVICE REQUIREMENTS TO MATURITY TOTAL OF ALL DEBT OUTSTANDING - TAXABLE CO'S FY Ending September 30 Principal 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 $ TOTAL $ Interest 490,000 $ 510,000 530,000 555,000 575,000 600,000 620,000 645,000 670,000 695,000 715,000 740,000 765,000 795,000 825,000 855,000 890,000 925,000 965,000 1,005,000 1,050,000 1,090,000 1,140,000 1,190,000 1,240,000 1,295,000 1,350,000 1,405,000 1,465,000 1,535,000 27,130,000 $ Total 1,101,199 $ 1,081,199 1,060,399 1,038,699 1,016,099 992,599 968,199 942,899 919,530 897,768 874,319 849,029 821,933 793,065 762,174 729,090 694,190 657,890 618,643 576,288 532,105 486,095 438,150 388,055 335,810 281,308 224,440 165,208 102,038 34,538 20,382,958 $ 1,591,199 1,591,199 1,590,399 1,593,699 1,591,099 1,592,599 1,588,199 1,587,899 1,589,530 1,592,768 1,589,319 1,589,029 1,586,933 1,588,065 1,587,174 1,584,090 1,584,190 1,582,890 1,583,643 1,581,288 1,582,105 1,576,095 1,578,150 1,578,055 1,575,810 1,576,308 1,574,440 1,570,208 1,567,038 1,569,538 47,512,958 $1.80 $1.50 $0.90 $0.60 $0.30 Principal Interest 60 2047 2046 2045 2044 2043 2042 2041 2040 2039 2038 2037 2036 2035 2034 2033 2032 2031 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 $0.00 2018 Millions $1.20 General Fund Organizational Chart As of October 1, 2017 Citizens City Council City Manager First Assistant City Manager Fire/EMS Police Public Safety Dispatch City Attorney City Manager's Office City Secretary Strategic Initiatives Assistant City Manager Assistant City Manager Assistant City Manager Engineering Economic Development Annexation Environmental & Neighborhood Services Finance Special Projects Human Information Technology Resources Permits & Inspections Intergovernmental Relations Public Works Parks & Recreation Planning Public Communications 61 General Fund The General Fund is used to account for all transactions not properly includable in other funds. The principal sources of revenue include property taxes, sales and franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures include general administration, finance, public works, parks and recreation, community development, environmental and neighborhood services, and public safety. Budgetary fund balance reflects audited fund balance with adjustments for accrued sales and franchise taxes to properly reflect funds available for appropriation during the year. Fiscal Year 2017 Total revenues Revenues are projected to come in at $85,158,066 which is 2.62% less than the current budget. Variances from budget are in sales tax, other taxes, charges for services, licenses and permits, fines and forfeitures, other income, and interest income. Sales tax is projected to come in at budget at $36,453,667, Other taxes are estimated to generate 4.99% greater than budgeted revenue. License and permits, which reflects building activity in the community are anticipated to be 18.13% less than budgeted. Charges for services are projected to come in 9.37% more than budgeted as a result of the City receiving more than budgeted for the billing of EMS services. Fines and forfeitures are projected at $1,536,131, or 18.66% lower than budgeted, as a result of receiving lower Court fine revenues. Other income is projected at $341,808, or 28.34% less than budgeted, estimating less in donations and property recovery. Intergovernmental revenues are projected at $618,176, which is a 0.04% increase compared with the current budget. Interest income of $187,280 is anticipated to be slightly less than budget due to current trends. Total expenditures Overall, General Fund departmental expenditures are expected to end the year 0.26% above budget. Expenditures for FY17 are projected to be $87,205,536, or 3.38% less than budgeted. This is primarily a result of a reduction in transfers to the Capital Projects Fund. Total fund balance The fund balance is projected to be $19,428,273 as of September 30, 2017. This fund balance is $1,074,104 or 1% greater than the policy requirement of 25%. Fiscal Year 2018 General Fund Revenues Budgeted revenues Budgeted revenues total of $91,174,969. The chart on the right shows a breakdown of General Fund revenues by type. Other Taxes 9% Sales Tax 48% Sales tax revenue of $37,064,779 represents the largest portion of General Fund operating revenues at 48%. Sales tax is highly dependent on economic conditions and can fluctuate. Sales tax for FY18 is expected to be in line with FY17, largely due to the uncertainty of economic growth in the Houston area. Licenses & Permits 5% Charges for Services 5% Fines & Forfeitures 2% All Other 1% Property Taxes 30% 62 The budget incorporates property tax revenues of $23,108,600 and is based on an O&M tax rate of $0.18035and an estimated taxable value of $12.88 billion after the increase to the homestead exemption. A total of $14,689,709 are transfers into to the General Fund. These transfers are from the Utility, Surface Water, Solid Waste, Debt Reduction, and Airport funds as reimbursement for overhead costs as determined by a cost allocation model. A transfer from the Sugar Land Development and Sugar Land 4B Corporations reimburse cost for Economic Development staff and activity, as well as for managing capital projects funded by the corporations. The transfers also include funds from the Debt Service Funds which are for Annexation related items only. Other taxes total $6,550,729 and are made up of franchise payments the city receives from electric, natural gas, cable, and telephone providers for use of the City’s right-of-way. Licenses and Permits revenue is $3,567,148 and include $552,000 for major projects that is anticipated for FY18. Charges for services are budgeted at $3,924,076 and include park facility fees, animal adoption fees, EMS billing, fire protection fees and other miscellaneous fees. EMS billing fees of $1,530,187 accounts for 38.99% of charges for services. The remaining income totals $2,393,889 and is made up of fines and forfeitures, interest income, and other miscellaneous revenues. Budgeted expenditures General Fund expenditures total $90,418,967 for FY18. Of this total, $85,075,857 is for departmental expenditures and $5,343,110 is for non-departmental expenditures including transfers, rebates & assignments, and miscellaneous expenditures. A total of $2,675,869 in recurring additions is included in the FY18 budget. These include: $2.63 million in Annexation items such as, traffic operations, landscaping, 311 Call Center, pavement markings, appraisal cost for Greatwood and New Territory, and 16.50 new positions. It also includes $42,200 for Cultural Arts Program maintenance of Public Art, and funding for internet connectivity and bandwidth. General Fund Expenditures Rebates & Assignments 3% Transfers to other Funds 3% General Government 14% Finance 5% Public Works 12% Parks & Recreation 6% Community Development 6% One-time funding totals $528,564 included in the Environmental Fire & FY18 budget. These include: $475,169 in Department Neighborhood 18% Annexation items such as, codification of City Services 6% Police boundaries, medical equipment for EMS, Storm Department Water Plan (MS4), and redistricting City areas. It 27% also includes $53,395 for Municipal Court training & travel, Police Department server room roof top repair, Fleet temporary help, and a transfer to the Court Technology fund. Budgeted fund balance The fund balance ending of $20,184,275 is $201,079 greater than the reserve policy requirement of 25%. The FY18 budget is anticipated to have an increase in fund balance of $756,002. 63 CITY OF SUGAR LAND GENERAL FUND INCOME STATEMENT FY16 Actuals REVENUES Property Taxes Sales Tax Other Taxes Licenses & Permits Charges for Services Fines & Forfeitures Other Intergovernmental Interest Income Operating Revenues Transfers In Lease Proceeds Non-operating Revenues Total Revenues EXPENDITURES General Government Finance Public Works Parks & Recreation Community Development Environmental & Neighborhood SVC Police Department Fire Department Departmental Expenditures Transfers to other Funds Miscellaneous Rebates & Assignments Debt Service Non-departmental Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales/Franchise Taxes Fund Balance - Ending Ending Fund Balance- % of Oper Exp Fund Balance - Requirement Over / (Under) Policy FY17 Current Budget $ 20,186,223 $ 20,846,700 $ 39,275,872 38,242,500 5,902,847 5,873,500 3,242,527 3,829,446 4,749,243 5,309,213 1,801,032 1,888,500 524,803 476,980 219,256 617,926 486,495 220,000 76,388,300 77,304,765 6,697,192 10,148,022 6,697,192 10,148,022 83,085,493 87,452,787 11,458,113 3,591,639 8,252,589 4,242,721 4,999,372 4,892,220 20,147,705 14,166,312 71,750,671 7,145,182 997,089 3,444,735 11,587,006 83,337,677 12,655,563 4,104,453 9,143,714 4,903,832 5,168,297 5,279,553 23,343,067 15,543,810 80,142,289 6,669,101 887,011 2,557,913 10,114,025 90,256,314 (252,184) (2,803,527) 28,794,532 28,542,348 (6,865,773) (7,066,605) $ 21,676,575 $ 18,672,216 $ 25% $ 18,474,692 $ 197,524 64 FY17 Projections FY18 Base Budget 20,846,700 $ 36,453,667 6,166,432 3,135,283 5,806,894 1,536,131 341,808 618,176 187,280 75,092,371 10,065,695 10,065,695 85,158,066 23,108,600 $ 37,064,779 6,550,729 3,567,148 3,924,076 1,665,840 341,808 70,000 192,280 76,485,260 14,689,709 14,689,709 91,174,969 12,866,665 4,089,378 9,293,964 4,951,834 5,167,972 5,281,267 23,241,023 15,454,787 80,346,890 3,837,200 463,533 2,557,913 6,858,646 87,205,536 12,693,432 4,172,555 9,688,489 4,922,185 5,323,808 5,321,002 24,033,750 15,728,203 81,883,424 2,834,145 (116,223) 2,613,188 5,331,110 87,214,534 (2,047,470) 28,542,348 (7,066,605) 19,428,273 $ 26% 18,354,169 $ 1,074,104 3,960,435 26,494,878 (7,066,605) 23,388,708 $ 30% 19,227,876 4,160,832 FY18 Changes FY18 Budget - $ - 365,150 231,872 1,430,986 321,229 396,177 70,211 376,808 3,192,433 12,000 12,000 3,204,433 23,108,600 37,064,779 6,550,729 3,567,148 3,924,076 1,665,840 341,808 70,000 192,280 76,485,260 14,689,709 14,689,709 91,174,969 13,058,582 4,404,427 11,119,475 4,922,185 5,645,037 5,717,179 24,103,961 16,105,011 85,075,857 2,846,145 (116,223) 2,613,188 5,343,110 90,418,967 (3,204,433) (3,204,433) $ $ 756,002 26,494,878 (7,066,605) 20,184,275 25% 19,983,196 201,079 GENERAL FUND SCHEDULE OF REVENUES Description CURRENT TAXES DELINQUENT TAXES PENALTY & INTEREST SPECIAL INVENTORY/OVERAGE Property Taxes SALES TAXES S. TAX INCENTIVE AGRMTS Sales Tax MIXED DRINK TAX ELECTRIC FRANCHISE GAS FRANCHISE FRANCHISE TELECOMM. MISC. FRANCHISE FEES CABLE TV FRANCHISE Other Taxes BUILDING PERMITS INFRASTRUCTURE REVIEW LAND DISTURBANCE FEE RENTAL INSPECTION LICENSE RENTAL REINSPECTION FEE BLDG PERMITS - ELECTRICAL PERMITS IRRIGATION PERMITS HEALTH PERMITS BLDG PERMITS - HVAC PERMITS LIQUOR PERMITS BLDG PERMITS - PLUMBING PERMITS MOWING LIENS PLAT FEES REINSPECTION FEES PARKING PERMITS SIGN PERMITS FLOOD ZONE DEVEL PERMIT CONTRACTOR REGISTRATION R-O-W PERMIT SOLICITOR PERMITS SITE PLAN FEES ZONING & CONDITIONAL USE PERMIT PENALTIES Licenses & Permits REIMBURSEMENTS ROYALTIES STREET LIGHT CHARGES ANIMAL ADOPTION FEES ANIMAL SERVICE FEES ANIMAL IMPOUNDMENT FEES POOL ADMISSIONS SWIM LESSIONS FACILITY USAGE CARDS POOL RENTAL P&R BUILDING RENTALS COMM. EVENTS-RECREATION ATHLETIC LEAGUES PAVILION RENTALS $ FY16 Actuals 20,038,633 $ (21,099) 163,436 5,254 20,186,223 39,275,872 39,275,872 580,406 3,583,225 241,611 238,422 207,792 1,051,391 5,902,847 1,677,129 92,590 267,512 14,376 241,505 28,179 309,060 197,283 37,805 172,165 5,885 50,946 13,005 192 21,417 300 44,206 2,025 7,970 24,440 27,911 6,628 3,242,527 250,030 167 32,900 40,891 215 740 7,152 3,352 95,257 1,024 129,670 631 32,586 44,387 FY17 Current FY17 Budget Projections 20,846,700 $ 20,846,700 $ 20,846,700 20,846,700 37,840,490 36,453,667 402,010 38,242,500 36,453,667 573,000 578,269 3,610,000 3,637,156 327,500 240,660 266,000 224,340 217,000 264,846 880,000 1,221,161 5,873,500 6,166,432 2,203,096 1,765,743 157,134 28,265 3,443 262,574 254,917 5,050 5,473 252,475 166,350 40,396 46,188 302,970 303,167 196,931 205,494 33,000 19,120 156,535 137,408 1,000 1,176 65,644 23,139 11,109 38,263 202 68 25,248 23,594 1,515 600 40,396 42,413 2,020 3,150 8,022 6,089 23,228 26,838 33,327 21,348 7,574 13,037 3,829,446 3,135,283 377,234 360,815 180 180 52,000 24,183 43,500 45,230 950 658 7,500 7,500 1,700 1,700 98,000 92,732 1,450 105,500 98,271 1,000 3,404 28,500 26,729 50,000 51,469 65 FY18 Base FY18 Budget Changes 23,108,600 $ - $ 23,108,600 37,064,779 37,064,779 578,269 3,637,156 240,660 274,747 324,354 1,495,543 6,550,729 2,029,661 28,265 3,443 348,261 5,609 188,638 47,019 330,284 225,250 19,120 140,383 1,176 23,139 38,263 68 24,071 600 43,303 3,150 6,222 26,838 21,348 13,037 3,567,148 308,424 180 24,183 45,230 658 7,500 1,700 92,732 98,271 3,404 26,729 51,469 - FY18 Budget 23,108,600 23,108,600 37,064,779 37,064,779 578,269 3,637,156 240,660 274,747 324,354 1,495,543 6,550,729 2,029,661 28,265 3,443 348,261 5,609 188,638 47,019 330,284 225,250 19,120 140,383 1,176 23,139 38,263 68 24,071 600 43,303 3,150 6,222 26,838 21,348 13,037 3,567,148 308,424 180 24,183 45,230 658 7,500 1,700 92,732 98,271 3,404 26,729 51,469 GENERAL FUND SCHEDULE OF REVENUES Description CAMP PROGRAMS LIGHT FEES LEISURE CLASSES ATHLETIC FIELD RENTAL SENIOR PROGRAMS ACCIDENT REPORTS CASH OVER & SHORT FALSE ALARM FEES REPRODUCTION COPIES FINGER PRINTING EMS BILLING FIRE PROTECTION FEES HAZ MAT RESPONSE FIRE ALARM PERMITS OTHER FIRE CODE PERMITS Charges for Services ADMINISTRATIVE COURT FEES DPS FEES - CITY PORTION CHILD SAFETY FINES MUNICIPAL COURT FINES JUDICIAL EFFICIENCY WARRANT FEES COURT CONVIENCE FEE Fines & Forfeitures DONATIONS MISCELLANEOUS PROPERTY INS RECOVERY SALE OF CAPITAL PROPERTY UNCLAIMED & NON-CAPITAL Other LEOSE FUNDS STEP WAVE GRANT CONSOLIDATED GRANTS TIRZ FUND 111 FROM CU SL4B FUND 114 Intergovernmental INTEREST ON INVESTMENTS UNREALIZ GAIN/LOSS-INVEST Interest Income ADMINISTRATIVE FEES TRANSFER FROM UTILITIES TRANSFER FROM SOLID WASTE TRF FR DEBT REDUCTION 074 GTWOOD TRF FR DEBT REDUCTION 079 NT TRF FR RED LIGHT FUND 073 Transfers In Lease Proceeds GRAND TOTAL $ FY16 Actuals 137,214 43,875 89,191 12,715 23,566 15,698 (22) 67,250 2,678 6,790 878,325 2,691,660 9,757 31,056 100,491 4,749,243 96,226 7,428 118,766 1,444,951 12,296 109,450 11,915 1,801,032 159,097 146,560 181,455 13,485 24,207 524,803 9,855 17,072 122,330 70,000 219,256 504,464 (17,969) 486,495 6,168,759 - FY17 Current Budget 160,000 44,000 100,000 12,000 28,000 15,000 105 45,000 3,300 7,300 1,171,546 2,860,448 12,000 29,000 54,000 5,309,213 93,000 9,500 115,000 1,503,000 14,500 143,500 10,000 1,888,500 96,343 102,137 225,000 25,000 28,500 476,980 59,949 48,661 53,659 455,657 617,926 220,000 220,000 5,425,300 - 528,434 6,697,192 83,085,493 2,075,860 2,075,860 571,002 10,148,022 87,452,787 $ 66 FY18 Base Budget 160,000 44,364 110,407 7,973 6,212 17,910 123 94,214 1,293 6,324 1,530,187 1,104,364 9,756 36,428 134,041 3,924,076 65,723 6,746 125,471 1,354,789 10,311 92,242 10,558 1,665,840 58,060 82,551 182,130 10,000 9,067 341,808 70,000 70,000 211,315 (19,035) 192,280 6,138,465 750,000 300,000 FY17 Projections 160,000 44,364 110,407 7,973 6,212 13,064 123 71,900 1,293 6,324 1,575,261 2,919,348 9,756 35,777 132,221 5,806,894 65,723 6,746 125,471 1,225,080 10,311 92,242 10,558 1,536,131 58,060 82,551 182,130 10,000 9,067 341,808 60,199 48,661 53,659 455,657 618,176 206,315 (19,035) 187,280 5,425,300 - $ 2,075,860 2,075,860 488,675 10,065,695 85,158,066 $ 3,363,874 3,571,392 565,978 14,689,709 91,174,969 FY18 Changes - FY18 Budget 160,000 44,364 110,407 7,973 6,212 17,910 123 94,214 1,293 6,324 1,530,187 1,104,364 9,756 36,428 134,041 3,924,076 65,723 6,746 125,471 1,354,789 10,311 92,242 10,558 1,665,840 58,060 82,551 182,130 10,000 9,067 341,808 70,000 70,000 211,315 (19,035) 192,280 6,138,465 750,000 300,000 - $ - $ 3,363,874 3,571,392 565,978 14,689,709 91,174,969 GENERAL FUND SUMMARY OF EXPENDITURES Description Mayor & City Council City Manager Assistant City Managers Community Outreach Department City Secretary Public Communications 311 Call Center Human Resources City Attorney Information Technology Strategic Initiatives Economic Development General Government Finance Administration Budget Office Accounting Purchasing Municipal Court Finance Public Works Administration Street & Drainage Maintenance ROW Maintenance Traffic Operations Public Works Parks Administration Development & Maintenance Recreation & Special Events Parks & Recreation Community Development Administration Permits & Inspections Planning & Development Transportation & Long Range Planning City Engineer Community Development ENS Administration Community Outreach Fleet Services Facilities Management Animal Services Stormwater Management Food Inspection Code Enforcement Rental Registration Environmental & Neighborhood SVC Police Administration Support Services Bureau TCLEOSE Training Patrol Criminal Investigations Detention Center SWAT Public Safety Dispatch Police Department Fire Administration Emergency Services $ FY16 Actuals 247,072 $ 889,170 973,508 853,032 963,190 1,453,765 892,792 3,747,067 673,207 765,309 11,458,113 641,897 417,133 1,050,669 539,803 942,136 3,591,639 476,576 2,334,438 1,641,154 3,800,421 8,252,589 711,714 2,005,865 1,525,141 4,242,721 279,388 1,226,701 475,697 436,380 2,581,207 4,999,372 433,811 11,684 685,612 2,138,961 657,762 122,013 257,370 342,868 242,138 4,892,220 998,400 2,147,443 518 10,892,248 3,602,424 387,776 25,361 2,093,535 20,147,705 402,219 10,099,704 FY17 Current FY17 Budget Projections 250,320 $ 250,320 $ 832,255 1,040,733 921,769 921,769 960,710 960,710 1,367,948 1,367,568 1,464,758 1,464,787 914,121 914,121 3,983,630 3,981,806 763,425 763,425 1,196,627 1,201,426 12,655,563 12,866,665 971,568 971,568 463,503 463,503 1,087,147 1,077,647 569,037 569,037 1,013,198 1,007,623 4,104,453 4,089,378 741,738 741,617 2,803,736 2,784,998 1,737,846 1,822,295 3,860,394 3,945,054 9,143,714 9,293,964 657,616 657,048 2,645,144 2,641,032 1,601,072 1,653,754 4,903,832 4,951,834 287,291 287,291 1,246,584 1,255,194 522,565 522,430 484,282 484,282 2,627,575 2,618,775 5,168,297 5,167,972 481,366 481,366 37,016 37,016 729,158 725,317 2,165,606 2,171,998 737,339 737,954 162,612 162,431 341,773 340,828 373,017 372,357 251,666 252,000 5,279,553 5,281,267 1,115,752 1,113,752 2,576,600 2,503,345 17,941 17,941 12,887,564 12,895,062 3,820,536 3,786,249 420,227 420,227 30,001 30,001 2,474,446 2,474,446 23,343,067 23,241,023 420,066 418,254 10,578,662 10,521,077 67 FY18 Base Budget 247,839 $ 860,637 1,075,580 102,516 985,183 1,065,272 1,504,046 839,939 3,961,796 751,233 1,299,391 12,693,432 1,039,412 487,395 1,070,710 570,723 1,004,315 4,172,555 522,218 3,295,906 2,018,230 3,852,135 9,688,489 689,606 2,582,931 1,649,648 4,922,185 296,786 1,339,207 528,973 435,983 2,722,859 5,323,808 405,404 772,410 2,276,883 781,059 94,468 311,703 352,090 326,985 5,321,002 1,141,302 2,233,804 13,124,488 4,012,765 423,580 25,000 3,072,811 24,033,750 410,021 10,956,904 FY18 Changes - $ 22,759 44,000 190,847 10,344 30,000 32,200 35,000 365,150 89,400 128,926 13,546 231,872 398,359 142,647 889,980 1,430,986 59,956 84,251 75,000 102,022 321,229 10,100 49,760 138,076 115,000 3,350 76,957 2,934 396,177 50,615 10,867 6,649 2,080 70,211 - FY18 Budget 247,839 860,637 1,075,580 102,516 1,007,942 1,109,272 190,847 1,514,390 869,939 3,993,996 751,233 1,334,391 13,058,582 1,128,812 487,395 1,199,636 570,723 1,017,861 4,404,427 522,218 3,694,265 2,160,877 4,742,115 11,119,475 689,606 2,582,931 1,649,648 4,922,185 296,786 1,399,163 613,224 510,983 2,824,881 5,645,037 405,404 782,510 2,326,643 919,135 209,468 315,053 429,047 329,919 5,717,179 1,141,302 2,284,419 13,135,355 4,019,414 423,580 25,000 3,074,891 24,103,961 410,021 10,956,904 Description Emergency Medical Services Haz Mat Prevention Emergency Management Professional Development Fire Department Total Operating Expenditures Transfers to other Funds Miscellaneous Rebates & Assignments Debt Service Total Non-Operating Total Expenditures FY16 Actuals 1,591,874 20,678 968,964 373,366 709,507 14,166,312 71,750,671 7,145,182 997,089 3,444,735 11,587,006 83,337,677 FY17 Current Budget 2,187,643 40,543 1,022,728 429,203 864,965 15,543,810 80,142,289 6,669,101 887,011 2,557,913 10,114,025 90,256,314 68 FY17 Projections 2,171,482 39,842 1,018,716 426,929 858,487 15,454,787 80,346,890 3,837,200 463,533 2,557,913 6,858,646 87,205,536 FY18 Base Budget 2,135,479 44,539 1,045,996 392,503 742,761 15,728,203 81,883,424 2,834,145 (116,223) 2,613,188 5,331,110 87,214,534 FY18 Changes 184,823 191,985 376,808 3,192,433 12,000 12,000 3,204,433 FY18 Budget 2,320,302 44,539 1,237,981 392,503 742,761 16,105,011 85,075,857 2,846,145 (116,223) 2,613,188 5,343,110 90,418,967 General Government As of October 1, 2017 Mayor & City Council City Manager City Manager's Office City Attorney Community Engagement Strategic Initiatives City Secretary First Assistant City Manager 311 Call Center Assistant City Manager Assistant City Manager Information Technology Economic Development Human Resources Public Communications Intergovernmental Relations 69 Assistant City Manager Mayor and City Council Services Provided The Mayor and City Council provide direction to the City Manager and staff to achieve service level objectives. The longrange vision of the City is established by adopting goals, objectives, and strategies. Two regular City Council meetings are held each month on the first and third Tuesday, as well as a workshop on the fourth Tuesday of the month. The Mayor and City Council adopt policies and may modify policy recommendations from the City Manager. The annual budget and five-year CIP, filed by the City Manager, is reviewed by the Mayor and City Council through a series of workshops and public hearings and is adopted by ordinance per the City’s charter requirements. FY18 Requests There are no additions to the Mayor and City Council FY18 budget. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is a recurring cost per capita, the fiscal year estimate is based on total population. Recurring Cost per Capita $3.00 $2.82 $2.85 $2.50 $2.10 $2.00 $1.50 $1.00 FY16 Actuals FY17 Projections *FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 168,924 $ 172,315 $ 172,315 $ 169,834 $ 13,933 10,774 10,774 15,274 20,701 27,700 27,700 23,200 43,514 39,531 39,531 39,531 $ 247,072 $ 250,320 $ 250,320 $ 247,839 $ 70 FY18 Budget - $ 169,834 15,274 23,200 39,531 - $ 247,839 City Manager Services Provided The City Manager is appointed by City Council and serves as Chief Executive Officer of the City. The City Manager is responsible for making recommendations to City Council, filing the annual budget, five-year CIP, and five-year financial forecast, and providing leadership and direction to City staff to achieve City Council goals and objectives. On a day-to-day basis, however, the City Manager focuses on “Responsible City Government,” as evidenced by the emphasis on implementing City Council direction, managing the City organization through the appointment and removal of employees, and encouraging citizen engagement and education. FY18 Requests There are no additions to the City Manager’s FY18 budget. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is recurring cost per capita. Recurring Cost per Capita $15.00 $11.86 $12.00 $10.16 $9.00 $7.30 $6.00 $3.00 $FY16 Actuals FY17 Projections *FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count City Manager FTE Count Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 776,447 $ 750,523 $ 847,944 $ 813,905 $ 44,124 21,003 132,060 21,003 50,206 3,175 3,175 2,210 18,393 57,554 57,554 23,519 $ 889,170 $ 832,255 $ 1,040,733 $ 860,637 $ FY16 Budget 6.00 6.00 FY17 FY17 FY18 Budget Adjustments Base Budget 5.00 1.00 6.00 5.00 1.00 6.00 71 FY18 Budget - $ 813,905 21,003 2,210 23,519 - $ 860,637 FY18 Changes - FY18 Budget 6.00 6.00 Assistant City Managers Services Provided The Assistant City Managers provide executive oversight, guidance, and support to respective departments to ensure the priorities of the City are understood and achieved. The First Assistant City Manager and Assistant City Managers serve on behalf of the City Manager in managing projects, assignments, and representing the organization and the community. The Assistant City Managers also act in place of the City Manager in his absence. FY18 Requests There are no additions to the Assistant City Managers’ FY18 budget. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is a recurring cost per capita. Recurring Cost per Capita $15.00 $12.00 $11.13 $10.51 $9.13 $9.00 $6.00 $3.00 $FY16 Actuals FY17 Projections *FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Assistant City Managers FTE Count Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 884,858 $ 852,756 $ 852,756 $ 1,005,317 $ 11,516 22,333 22,333 18,178 54,374 9,450 9,450 9,450 285 22,475 33,062 33,062 42,635 4,168 4,168 $ 973,508 $ 921,769 $ 921,769 $ 1,075,580 $ FY16 Budget 5.50 5.50 FY17 FY17 FY18 Budget Adjustments Base Budget 5.50 2.50 8.00 5.50 2.50 8.00 72 FY18 Budget - $ 1,005,317 18,178 9,450 42,635 - $ 1,075,580 FY18 Changes - FY18 Budget 8.00 8.00 Community Engagement Services Provided The Community Engagement Division is responsible for connecting, communicating, and engaging with the residents of the City of Sugar Land. The Community Engagement Division manages the Serve Sugar Land volunteer program in addition to numerous citizens’ engagement opportunities. The Division also provides resources for residents to register concerns and receive information serving as a portal for resident contact. The Community Engagement Division was previously a division under Environmental & Neighborhood Services. FY18 Requests There are no additions to the Community Engagement’s FY18 budget. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Community Outreach FTE Count Totals FY16 Actuals $ - $ FY16 Budget FY17 FY17 FY18 FY18 Current Budget Projections Base Budget Changes $ - $ - $ 63,716 $ 21,750 2,500 14,550 $ - $ - $ 102,516 $ FY17 Budget - FY17 FY18 Adjustments Base Budget 2.00 2.00 2.00 2.00 73 FY18 Budget - $ 63,716 21,750 2,500 14,550 - $ 102,516 FY18 Changes - FY18 Budget 2.00 2.00 City Secretary Mission Statement Act as stewards of open and accountable government, committed to uphold statutory principles, serve as guardians of the municipal legislative processes and official information, practice integrity, and provide excellent service that respects the uniqueness and diversity of the City organization and the community. Services Provided The Office of the City Secretary is responsible for three primary functions: legislative service, records management, and public information services. Legislative services include managing and coordinating all public meetings, elections, ordinance codification, contract execution, legal notice and proclamation publication, policy adoption and board, and commission appointments. For records management, the department maintains a centralized records center archive, an electronic document management system and a database for vehicle registration and property documents. The department also facilitates record disposal. Public information services provided by the department include receptionist and lobby services, response to open records requests and standardized guidelines for City Hall displays and meeting presentations. FY18 Requests A total of $22,759 in one-time funding is included in the City Secretary’s FY18 budget for additional hearing notice mailings, and cost to purchase cabinets and shelves that are needed for the annexation of Greatwood and New Territory. Performance Measures: Responsible City Government The City Council measure for “Customer Response Management” is the number of open records requests received by the department. Open records request in FY18 are anticipated to increase as a result of annexation. Number of Open Records Requests Received 2,400 2,200 2,000 1,800 1,600 1,400 1,200 2,200 2,000 1,858 FY16 Actuals Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count City Secretary FTE Count Totals FY17 Projections FY18 Estimate FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 629,514 $ 773,678 $ 773,678 $ 809,791 $ - $ 809,791 96,495 62,748 62,748 61,000 61,000 81,602 50,117 50,117 41,527 13,359 54,886 2,098 3,223 3,223 6,532 6,532 43,323 70,944 70,944 66,333 66,333 9,400 9,400 $ 853,032 $ 960,710 $ 960,710 $ 985,183 $ 22,759 $ 1,007,942 FY16 Budget 9.20 9.20 FY17 FY17 FY18 Budget Adjustments Base Budget 9.20 9.20 9.20 9.20 74 FY18 Changes - FY18 Budget 9.20 9.20 Communications Mission Statement To clearly and accurately communicate information of key City services, programs, messages and values; to foster an engaged and informed citizenry; to protect the safety and welfare of our citizens; to provide leadership in further strengthening and promoting Sugar Land’s “brand” as a benchmark for superior municipal government service through all City communication tools including publications, website, social media, municipal television, media relations, emergency communications; and to serve as a resource to City departments for delivery of their specific communication needs. Services Provided Communications is responsible for providing accurate, responsive and timely information to citizens and the public through a variety of communication tools including publications, website, SLTV16, social media, media relations, public safety and emergency communications; also facilitate and serve as a resource to City departments to manage their individual communication needs effectively and efficiently. FY18 Requests A total of $44,000 in recurring additions are included in Communications FY18 budget. This includes printing additional issues of Sugar Land Today newsletters, calendars, photography, graphic designs, postage, and freight due to annexation. Performance Measures: Responsible City Government The City Council measures for “Easy access to city government” are citizen satisfaction with City publications, website and municipal television (SLtv16), and number of website visitors. The FY18 estimate increase in website visitors is related to annexation, as more citizens will go online to find information and pay bills. Thousands Website Visitors 650 620 640 600 560 550 500 FY16 Actuals Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Public Communications FTE Count Totals FY17 Projections FY18 Estimate FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 714,834 $ 738,786 $ 738,786 $ 756,341 $ - $ 756,341 25,845 22,233 21,853 23,514 23,514 60,533 92,839 92,839 32,720 35,500 68,220 71 25,170 25,170 230 230 141,095 135,938 135,938 132,467 8,500 140,967 20,812 352,982 352,982 120,000 120,000 $ 963,190 $ 1,367,948 $ 1,367,568 $ 1,065,272 $ 44,000 $ 1,109,272 FY16 Budget 8.00 8.00 FY17 FY17 FY18 Budget Adjustments Base Budget 8.00 8.00 8.00 8.00 75 FY18 Changes - FY18 Budget 8.00 8.00 311 Call Center Mission Statement The 311 Call Center will provide swift and accurate customer service to residents and visitors of the City of Sugar Land that have general inquiries or need to request services from City Departments. Services Provided Utilizing automated call distribution software, inquiries are routed to Ambassadors to respond and document. The Call Center enables departments to focus on their core mission and provides inquiry data to be proactive and enter work orders as necessary. FY18 Requests A total of $158,847 in recurring additions are included in 311 Call Center’s FY18 budget. This includes personnel, training, and automated call distribution software. The 311 Call Center will have a one-time cost in the amount of $32,000 for an office, desk cubes, and promotional items. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count 311 Call Center FTE Count Totals FY16 Actuals $ - $ FY16 Budget FY17 FY17 FY18 FY18 FY18 Current Budget Projections Base Budget Changes Budget $ - $ - $ - $ 121,115 $ 121,115 64,732 64,732 5,000 5,000 $ - $ - $ - $ 190,847 $ 190,847 FY17 Budget - 76 FY17 FY18 Adjustments Base Budget 2.00 2.00 2.00 2.00 FY18 Changes - FY18 Budget 2.00 2.00 Human Resources Mission Statement Serve managers and employees by providing excellent human resources systems and risk management programs to help them be a “Champion Workforce,” helping the organization achieve excellence in delivering public services and impacting the organization’s financial resources through cost effective/efficient government. Services Provided Human Resources Department is an internal service and offers a full range of human resource services for all City departments. Risk Management coordinates worker compensation, liability insurance claims, and oversees the work safety program. FY18 Requests A total of $10,344 in recurring funding is included in the Human Resources’ FY18 budget for background checks, drug screening, psychological testing, and licenses for Success Factors and TargetSolutions needed as a result of additional staff related to Annexation. Performance Measures: Responsible City Government The “Benefits Burden” is the ratio of the cost of defined benefits to the base payroll of employees eligible to receive benefits. The City Council measure for “Workers’ Compensation Claims” is the ratio of total claims over the number of employees. Total City Benefits Burden 40% 0.20 34.7% 29.8% 30% 0.15 20% 0.10 10% 0.05 0% 0.136 0.165 0.131 0.00 Public Sector Avg. (500+ FTEs) Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Human Resources FTE Count Totals Workers' Compensation Claims: Ratio of Total Claims over FTEs FY18 Estimate FY16 Actuals FY17 Projections FY18 Estimate FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 1,124,829 $ 1,100,043 $ 1,100,043 $ 1,172,500 $ - $ 1,172,500 102,775 91,766 91,795 96,262 96,262 63,171 90,064 90,064 69,550 4,869 74,419 370 1,000 1,000 600 600 159,620 181,885 181,885 165,134 5,475 170,609 3,000 $ 1,453,765 $ 1,464,758 $ 1,464,787 $ 1,504,046 $ 10,344 $ 1,514,390 FY16 Budget 11.00 11.00 FY17 FY17 FY18 Budget Adjustments Base Budget 11.00 11.00 11.00 11.00 77 FY18 Changes - FY18 Budget 11.00 11.00 City Attorney Mission Statement The City Attorney’s Office seeks to provide legal services to the City Council, boards and commissions, management, and employees that are timely; understandable and accessible to the client; achieve the City’s goals within the boundaries of the law; based on the Department’s independent judgment of the law; and protect the legal interests of the City as a municipal corporation. Services Provided The City Attorney’s Office provides legal services to the City and the City’s development corporations. These services include contract review, ordinance preparation, policy review, and prosecution of violations of State law and City ordinances in Municipal Court. FY18 Requests A total of $30,000 in one-time additions are included in the City Attorney’s FY18 budget for redistricting the City prior to the 2019 district elections for council. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is recurring cost per capita. Recurring Cost per Capita $12.00 $10.00 $10.42 $10.20 $7.38 $8.00 $6.00 $4.00 $2.00 $FY16 Actuals FY17 Projections *FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count City Attorney FTE Count Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 730,005 $ 740,836 $ 740,836 $ 762,581 $ - $ 762,581 15,164 6,484 6,484 12,085 12,085 122,795 137,348 137,348 42,066 30,000 72,066 7,524 22,980 22,980 6,556 6,556 17,305 6,473 6,473 16,651 16,651 $ 892,792 $ 914,121 $ 914,121 $ 839,939 $ 30,000 $ 869,939 FY16 Budget 6.00 6.00 FY17 FY17 FY18 Budget Adjustments Base Budget 6.00 6.00 6.00 6.00 78 FY18 Changes - FY18 Budget 6.00 6.00 Information Technology Mission Statement The mission of the Information Technology (IT) department is to provide guidance in an effective, strategic, and fiscally responsible manner for all technology applications by: maintaining a thorough knowledge of operating systems, applications, and hardware; providing a secure infrastructure, that promotes the integrity of the electronic data that is collected, stored, and retrieved; proactively evaluate departmental needs to position them for successful delivery of service while providing efficient, effective, reliable, timely and courteous service to all users. Services Provided The IT Department provides City‐wide support to all departments by maintaining the integrity of computer and communications infrastructure of the City. This includes City-wide coordination for advanced systems in Public Safety, Telecommunications, and Geographic Information System (GIS). A primary function of the department is end-user support for all City employees in their use of technology, which involves inventories, configuration, installation, and maintenance of desktop systems. The department is also responsible for project management from City-wide technology projects to application development. FY18 Requests A total of $15,000 in one-time additions are included in IT’s FY18 budget for personnel expenses related to Annexation. A total of $17,200 are included in recurring funding for internet connectivity and bandwidth cost that is related to Annexation. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of city services” is recurring cost per capita. Recurring Cost per Capita $50.00 $45.39 $42.82 $40.00 $33.76 $30.00 $20.00 $10.00 $FY16 Actuals FY17 Projections *FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Information Technology FTE Count Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 1,930,632 $ 2,231,705 $ 2,231,705 $ 2,202,943 $ 15,000 $ 2,217,943 51,502 30,585 28,761 21,708 21,708 391,579 493,107 493,107 330,900 330,900 991,785 1,097,519 1,097,519 1,283,650 10,000 1,293,650 235,972 124,494 124,494 122,595 7,200 129,795 145,598 6,220 6,220 $ 3,747,067 $ 3,983,630 $ 3,981,806 $ 3,961,796 $ 32,200 $ 3,993,996 FY16 Budget 23.00 23.00 FY17 Budget 23.00 23.00 79 FY17 Adjustments - FY18 Base Budget 23.00 23.00 FY18 Changes FY18 Budget - 23.00 23.00 Strategic Initiatives Mission Statement The mission of the Office of Strategic Initiatives is to ensure the operations of the City are aligned with the vision and priorities established by the City Council and to promote accountability within the organization and foster continuous improvement. Services Provided The Office of Strategic Initiatives is responsible for the leadership and coordination of City-wide strategic planning process including quarterly reporting to the City Council, and supporting the Mayor’s Youth Advisory Council. The Office of Strategic Initiatives manages the implementation of a cross-departmental performance measurement system and implementation of annual organizational assessments. The goal of these two programs is to increase accountability, efficiency and effectiveness with departments. This office is also responsible for managing the City-wide business plan process and any research/special projects. FY18 Requests There are no additions to the Strategic Initiatives FY18 budget. Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of city services” is recurring cost per capita. Recurring Cost per Capita $10.00 $8.00 $7.69 $8.70 $6.37 $6.00 $4.00 $2.00 $FY16 Actuals FY17 Projections FY18 Estimate *FY18 reflects increase in population due to annexation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Strategic Initiatives FTE Count Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 528,519 $ 584,318 $ 584,318 $ 710,236 $ 15,446 17,701 17,701 2,635 96,123 145,020 145,020 21,910 32,041 16,386 16,386 16,452 1,078 $ 673,207 $ 763,425 $ 763,425 $ 751,233 $ FY16 Budget 8.00 8.00 FY17 FY17 FY18 Budget Adjustments Base Budget 8.00 1.00 9.00 8.00 1.00 9.00 80 FY18 Budget - $ 710,236 2,635 21,910 16,452 - $ 751,233 FY18 Changes - FY18 Budget 9.00 9.00 Economic Development Mission Statement The mission of the Economic Development Department is to facilitate the creation of a sustainable business environment that promotes a consistent, quality economy that enhances the standard of living for our residents and to provide the necessary financial resources for the City of Sugar Land through an expanded and diversified tax base. Services Provided The Economic Development program is responsible for several services including targeted business recruitment, business retention, expansion, and development; business incentives, and revenue enhancement and diversification. Marketing on the regional, national, and international level is conducted along with retail activity analysis. Administration of funds, agreements, and project management services are also fulfilled under the leadership of City Council, City administration, and associated boards and committees. Tourism & Destination Events is responsible for attracting leisure travelers, professional convention and meeting planners as well as sporting tournaments and event producers to Sugar Land in an effort to increase the City’s economic vitality with an increase in overnight guests and day-trippers. The Office of Intergovernmental Relations is under the oversight of the Director of Economic Development. The Office of Intergovernmental Relations is responsible for regional, local, state and federal intergovernmental relations, including the development of legislative agendas, coordination of information and monitoring of relationships through the ambassador program. FY18 Requests A total of $35,000 in recurring additions are included in the Economic Development FY18 budget. These additions are for the Cultural Arts Program, maintenance of public arts, and travel/training for the Cultural Arts Manager. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 765,309 $ 1,046,767 $ 1,046,767 $ 1,199,531 $ - $ 1,199,531 63,500 68,299 13,500 13,500 75,300 75,300 75,300 35,000 110,300 11,060 11,060 11,060 11,060 $ 765,309 $ 1,196,627 $ 1,201,426 $ 1,299,391 $ 35,000 $ 1,334,391 Summary by Type Economic Development Office of Intergovernmental Relations Tourism & Destination Events Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 714,995 $ 978,381 $ 1,201,426 $ 1,011,243 $ 35,000 $ 1,046,243 162,646 229,290 229,290 50,314 55,600 58,858 58,858 $ 765,309 $ 1,196,627 $ 1,201,426 $ 1,299,391 $ 35,000 $ 1,334,391 FTE Count Economic Development Office of Intergavernmental Relations Tourism & Destination Events FTE Count Totals FY16 Budget 6.00 0.50 0.50 7.00 FY17 FY17 FY18 Budget Adjustments Base Budget 9.00 9.00 0.50 0.50 1.00 0.50 0.50 10.00 0.50 10.50 81 FY18 Changes - FY18 Budget 9.00 1.00 0.50 10.50 Finance & Municipal Court As of October 1, 2017 City Manager Assistant City Manager Finance Administration Accounting Budget Office Purchasing Treasury (See Utility Fund) Municipal Court 82 Finance Mission Statement The mission of the Finance Department is to use available resources, ethical principles, and professional practices to deliver superior and responsive financial services to City customers while maximizing effectiveness and minimizing costs in the areas of Finance Administration, Budget, Accounting, Purchasing, and Municipal Court. Programs of Service The Finance Department is made up of Finance Administration, Budget, Accounting, Purchasing, and Municipal Court. Finance Administration is responsible for reviewing and implementing financial policies and managing the City’s debt issuance and investment of public funds. Budget oversees the budget process and provides assistance to departments regarding budgeting and financial analysis. Accounting provides payroll, accounts payable, capital assets, grant management, general ledger, internal controls and administrative services. Purchasing oversees competitive purchasing, verifies insurance for contracts surplus/salvage City auction management, purchasing training, and emergency management/resource management. Municipal Court is responsible for providing arraignments and trials, photo enforcement appeals, warrant servicing, accurate reporting and customer service. FY18 Requests A total of $217,453 in recurring additions are included in Finance’s FY18 budget, and these additional cost are associated with the appraisal of Greatwood & New Territory, increases in merchant bank fees related to increased credit card transactions from Annexed residents, and hiring of one accountant and a part-time accounts payable specialist. There is also an additional one-time expense of $14,419 needed for two computers and Municipal Court training and travel expenses. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,944,437 $ 3,182,637 $ 3,182,637 $ 3,256,153 $ 123,552 $ 3,379,705 49,803 48,041 48,041 45,040 500 45,540 411,489 655,427 655,427 695,783 89,400 785,183 739 2,250 2,250 2,250 2,250 166,772 195,603 180,528 173,329 15,796 189,125 18,399 20,495 20,495 2,624 2,624 $ 3,591,639 $ 4,104,453 $ 4,089,378 $ 4,172,555 $ 231,872 $ 4,404,427 Summary by Type Finance Administration Budget Office Accounting Purchasing Municipal Court Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 641,897 $ 971,568 $ 971,568 $ 1,039,412 $ 89,400 $ 1,128,812 417,133 463,503 463,503 487,395 487,395 1,050,669 1,087,147 1,077,647 1,070,710 128,926 1,199,636 539,803 569,037 569,037 570,723 570,723 942,136 1,013,198 1,007,623 1,004,315 13,546 1,017,861 $ 3,591,639 $ 4,104,453 $ 4,089,378 $ 4,172,555 $ 231,872 $ 4,404,427 FTE Count Finance Administration Budget Office Accounting Purchasing Municipal Court FTE Count Totals FY16 Budget 3.00 5.00 11.00 7.00 12.00 38.00 FY17 FY17 FY18 Budget Adjustments Base Budget 3.00 1.00 4.00 5.00 5.00 11.00 11.00 7.00 7.00 12.00 12.00 38.00 1.00 39.00 83 FY18 Changes 1.50 1.50 FY18 Budget 4.00 5.00 12.50 7.00 12.00 40.50 Public Works As of October 1, 2017 City Manager Assistant City Manager Public Works Adminstration Streets & Drainage Maintenance ROW Maintenance Traffic Operations 84 Public Works Mission Statement The Public Works Department will strive to enhance the quality of life for all residents by providing safe, reliable and effective services consistent with the stated goals of the City. Services Provided The Public Works Department is responsible for the repair, and operations and maintenance of the City’s public streets, traffic control devices, sidewalks, bridges, drainage system, and water conservation. The Department administers a number of contracts with private sector firms for a range of goods and services that play an important role in effectively maintaining the City’s infrastructure and providing essential services. Programs of Service The Administration program manages components common to all divisions such as customer service, emergency management, the safety program, public education, personnel management, infrastructure data capture, asset management and event assistance. The Street & Drainage Maintenance program is responsible for the administration and operation of public streets, sidewalks, and bridges along with maintenance of sewer lines and open ditches. Right of Way maintenance manages the turf, landscape and irrigation in the City’s Rights of Way, along with the City’s Bike and Pedestrian Master Plan and enforcement of the City’s Tree Ordinance. The Traffic Program is responsible for the engineering, maintenance, and operation of all traffic control and traffic calming devices within the City limits, and includes maintenance and monitoring of traffic signals, school zones, regulatory signs, street name signs and public information signs located on all City streets, and the railroad wayside horn system. The Water Conservation Program is overseen by Public Works but housed in the Water Utilities Fund. FY18 Requests A total of $1,421,908 in recurring additions are included in Public Works FY18 budget. These additions are annexation related expenses such as equipment and training for new hires, supplies for Streets & Drainage, mosquito spraying, street sweeping, landscaping, pavement marking, and utility services for streetlights. A total of $9,078 in one-time expenses are included for miscellaneous items such as mosquito traps and tools. Performance Measures: Traffic Corridor Performance The City of Sugar Land's most vital vehicular travel corridors support commercial enterprise and quality of life. Shorter travel times help improve both commercial enterprise and quality of life. 85 Public Works Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,349,825 $ 2,620,625 $ 2,620,625 $ 2,834,820 $ 546,189 $ 3,381,009 281,164 346,441 324,104 1,453,554 14,460 1,468,014 3,348,103 3,446,413 3,510,985 3,006,823 616,851 3,623,674 2,067,425 2,117,717 2,209,717 2,316,529 247,368 2,563,897 62,856 90,246 90,246 55,239 4,740 59,979 143,217 522,272 538,287 21,524 1,378 22,902 $ 8,252,589 $ 9,143,714 $ 9,293,964 $ 9,688,489 $ 1,430,986 $ 11,119,475 Summary by Type Public Works Administration Street & Drainage Maintenance ROW Maintenance Traffic Operations Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 476,576 $ 741,738 $ 741,617 $ 522,218 $ - $ 522,218 2,334,438 2,803,736 2,784,998 3,295,906 398,359 3,694,265 1,641,154 1,737,846 1,822,295 2,018,230 142,647 2,160,877 3,800,421 3,860,394 3,945,054 3,852,135 889,980 4,742,115 $ 8,252,589 $ 9,143,714 $ 9,293,964 $ 9,688,489 $ 1,430,986 $ 11,119,475 FTE Count Public Works Administration Street & Drainage Maintenance ROW Maintenance Traffic Operations FTE Count Totals FY16 Budget 4.00 18.00 3.00 9.00 34.00 FY17 FY17 FY18 Budget Adjustments Base Budget 4.00 0.50 4.50 18.00 (1.00) 17.00 3.00 3.00 9.00 2.00 11.00 34.00 1.50 35.50 86 FY18 Changes 5.00 3.00 8.00 FY18 Budget 4.50 22.00 3.00 14.00 43.50 Parks & Recreation As of October 1, 2017 City Manager Assistant City Manager Parks Administration Parks Development & Maintenance Recreation & Special Events 87 Parks & Recreation Mission Statement The mission of the Parks & Recreation Department is to create and maintain unparalleled recreational opportunities through unique, high quality parks and public spaces that enhance the community. Services Provided The Parks & Recreation Department is responsible for planning, developing, implementing and managing parks, recreation and leisure services. Programs of Service Administration is responsible for implementing the programs, policies and services established under the leadership of City Council, City administration, and associated advisory boards of the City. Development & Maintenance is responsible for the planning, design, construction of park facilities, park area landscape, pest control, custodial services and repairs. Recreation & Special Events creates, manages and delivers City-hosted events and cultural activities, oversees leisure classes, youth sports associations, senior activities, contractual operation of the municipal pool including swim lessons, life guards, and swim team usage. FY18 Requests There are no additions to the Parks & Recreation FY18 budget. Performance Measures: Well Planned Community & Great Place to Live The performance measure for a “Well Planned Community & Great Place” to Live is based on the most recent citizen survey. Parks: Quality of Services 56% 60% 40% 30% 20% 11% 0% Excellent Good 88 Fair 3% Poor Parks & Recreation Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 2,125,947 $ 2,519,552 $ 2,519,552 $ 2,554,403 $ 241,753 311,871 278,508 315,322 550,122 612,982 640,701 565,474 718,018 893,532 893,532 936,002 576,049 558,053 611,699 540,984 30,832 7,842 7,842 10,000 $ 4,242,721 $ 4,903,832 $ 4,951,834 $ 4,922,185 $ FY18 Budget - $ 2,554,403 315,322 565,474 936,002 540,984 10,000 - $ 4,922,185 Summary by Type Parks Administration Development & Maintenance Recreation & Special Events Category Totals FY16 FY17 FY17 FY18 FY18 Actuals Current Budget Projections Base Budget Changes $ 711,714 $ 657,616 $ 657,048 $ 689,606 $ 2,005,865 2,645,144 2,641,032 2,582,931 1,525,141 1,601,072 1,653,754 1,649,648 $ 4,242,721 $ 4,903,832 $ 4,951,834 $ 4,922,185 $ FY18 Budget - $ 689,606 2,582,931 1,649,648 - $ 4,922,185 FTE Count Parks Administration Development & Maintenance Recreation & Special Events FTE Count Totals FY16 Budget 7.00 11.00 17.27 35.27 FY17 FY17 FY18 Budget Adjustments Base Budget 6.00 6.00 15.50 15.50 17.27 0.03 17.30 38.77 0.03 38.80 89 FY18 Changes - FY18 Budget 6.00 15.50 17.30 38.80 Community Development As of October 1, 2017 City Manager Assistant City Manager Permits & Inspections Planning Development Planning Long-Range Planning Transportation & Mobility Planning 90 City Engineer Permits & Inspections Mission Statement The Permits and Inspections Department is committed to the public’s safety, enhances quality of life by providing plan review, permit and inspection services that ensure code compliance in the development and redevelopment of buildings and their components. Services Provided The Permits & Inspections Department provides assistance for all issues relating to permitting of residential and commercial construction and enforces building code compliance through plan review and inspections. The permits processed allow certified plan examiners and/or inspectors to check the proposed and completed work for building code standards. The City adopted building codes are intended to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to fire fighters and emergency responders during emergency operations. Programs of Service The Permits & Inspections Department provides extensive customer service to homeowners, contractors and business owners. This technical assistance is provided via walk-in customers, phone requests and questions, and faxed-in permit requests. The Permits and Inspections Department answers technical questions and provides guidance for all aspects of plan review (both at the Permit Technician desk and with the Plan Reviewers), issuing of permits (including taking the payments) and inspections (inspectors are licensed through the State and International Code Council to be able to perform multi-disciplined inspections) of residential and commercial buildings based upon the regulatory authority of City Council adopted building codes. FY18 Requests A total of $59,291 in recurring additions are included in Permits FY18 budget. These additions are for a new Permit Technician and an increase in Merchant Bank fees. There is also a one-time expense of $665 for ancillary items for the new Permit Technician. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Permits & Inspections FTE Count Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 1,139,020 $ 1,167,510 $ 1,167,510 $ 1,243,769 $ 56,460 $ 1,300,229 19,237 28,801 21,378 25,652 665 26,317 13,440 12,860 12,860 13,742 13,742 6,526 3,564 3,564 3,564 3,564 37,244 33,849 49,882 52,480 2,831 55,311 11,235 $ 1,226,701 $ 1,246,584 $ 1,255,194 $ 1,339,207 $ 59,956 $ 1,399,163 FY16 Budget 15.08 15.08 FY17 FY17 FY18 Budget Adjustments Base Budget 15.08 0.17 15.25 15.08 0.17 15.25 91 FY18 Changes 1.00 1.00 FY18 Budget 16.25 16.25 Planning Mission Statement The Planning Department ensures a well-planned City that is safe, beautiful and livable. This is accomplished by facilitating the development and implementation of long-range plans and policies such as the City’s comprehensive plan and master plans, shaping the city’s physical environment through reasonable enforcement of codes and standards and ensuring development quality for the City. Services Provided The Development Planning Program is responsible for administrating development review for applications such as subdivision plats, site plans, general plans, rezoning and conditional use permit cases, variances, special exceptions, and appeals. The Long-Range Planning program provides comprehensive plan and master plans development and maintenance, land use planning, regional land use activities, demographics and development agreements tracking and monitoring, annexations, mobility planning and comprehensive mobility plan implementation, and regional mobility activities participation. Programs of Service Development Planning reviews plats, site plans, and rezoning applications to ensure compliance with City development policies, codes and planning. Long Range Planning leads the City’s efforts to plan for the long range needs of the City including development and maintenance of the City’s comprehensive plan and master plans, annexation planning and implementation, and land use planning. Transportation & Mobility Planning is responsible for transportation planning, identification of related funding mechanisms and coordination with outside agencies. Strategic projects are completed to develop policy guidance and implementation as they relate to mobility. FY18 Requests A total of $82,764 in recurring additions are included in Planning’s FY18 budget, these additions are for cost associated with the addition of a new Planner I. A total of $76,487 in one-time expenses are included for the for codification of the City boundary, as well as additional office equipment. Performance Measures: Well Planned Community & Livable Neighborhoods The City measure for “Predictable, compatible land uses through zoning and comprehensive planning” is the percent of citizens who agree that Sugar Land is a well-planned community. The most recent survey results are shown below. 92 Planning Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals Summary by Type Community Development Planning & Development Transportation & Long Range Category Totals FTE Count Community Development Planning & Development Transportation & Long Range FTE Count Totals FY16 Actuals $ FY17 Current Budget 1,043,411 $ 11,651 101,057 1,437 32,383 1,526 $ 1,191,465 $ FY17 Projections FY18 Base Budget 1,092,016 $ 1,092,016 $ 1,116,513 $ 11,627 11,492 13,209 142,730 142,730 78,455 3,000 3,000 3,000 44,195 44,195 49,295 570 570 1,270 1,294,138 $ 1,294,003 $ 1,261,742 $ FY18 Changes FY18 Budget 82,764 $ 1,199,277 13,209 75,000 153,455 3,000 49,295 1,487 2,757 159,251 $ 1,420,993 FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 279,388 $ 287,291 $ 287,291 $ 296,786 $ - $ 296,786 475,697 522,565 522,430 528,973 84,251 613,224 436,380 484,282 484,282 435,983 75,000 510,983 $ 1,191,465 $ 1,294,138 $ 1,294,003 $ 1,261,742 $ 159,251 $ 1,420,993 FY16 Budget 2.00 7.00 3.00 12.00 FY17 FY17 FY18 Budget Adjustments Base Budget 2.00 2.00 6.00 6.00 4.00 4.00 12.00 12.00 93 FY18 Changes 1.00 1.00 FY18 Budget 2.00 7.00 4.00 13.00 Engineering Mission Statement As the engineering authority for the City, the Engineering Department provides expertise and regulatory guidance for all planning, design and construction of CIP and development projects within our jurisdiction, and manages and maintains master plans as required through the comprehensive plan. The Engineering Department develops business processes and control mechanisms, including coordination with outside agencies, to ensure projects are on -time and within budget with complete and accurate reporting. The Engineering Department is committed to maintaining a high level of professionalism through open lines of communication and transparency while delivering superior customer service. Services Provided The Engineering Department provides centralized support to owner and stakeholder departments for development of the CIP and design and construction of capital projects and external services dealing with public infrastructure related to development improvements, floodplain regulations and adherence to City regulations, development code and engineering design standards. In addition, the department manages all real estate services and master plan updates. These services are focused on consistency and efficiency for success and rely on sound communication throughout the department in order to accomplish the large amount of work that is part of these services. FY18 Requests A total of $102,022 in recurring additions are included in Engineering’s FY18 budget, these Annexation related additions are for cost associated with the addition of a new Facilities Project Manager. Performance Measures: Well Planned Community The department strives to meet the City Council’s goal of a “Well Planned Community.” According t o the most recent Citizen Survey, “93% agree with the statement: ‘Sugar Land is a well-planned community that ensures compatible land use for residential, office, and retail purposes.’” Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count City Engineer FTE Count Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,337,648 $ 2,411,812 $ 2,411,812 $ 2,509,815 $ 102,022 $ 2,611,837 27,591 34,956 26,156 30,757 30,757 153,874 125,000 125,000 127,000 127,000 8,812 9,337 9,337 9,450 9,450 53,281 46,470 46,470 45,837 45,837 $ 2,581,207 $ 2,627,575 $ 2,618,775 $ 2,722,859 $ 102,022 $ 2,824,881 FY16 Budget 23.00 23.00 FY17 FY17 FY18 Budget Adjustments Base Budget 23.00 23.00 23.00 23.00 94 FY18 Changes 1.00 1.00 FY18 Budget 24.00 24.00 Environmental & Neighborhood Services As of October 1, 2017 City Manager Assistant City Manager Environmental & Neighborhood Services Fleet Maintenance Facilities Management Animal Services Stormwater Management Food Inspection Code Enforcement Rental Registration 95 Environmental & Neighborhood Services Mission Statement To enhance the quality of life for all residents by providing safe, reliable and effective services consistent with the stated goals of the City and to realize the City’s vision of a safe, beautiful, well-planned community by supporting growth and maintaining existing development through fair and consistent regulation and coordination, coupled with excellent customer service. Services Provided Environmental & Neighborhood Services is responsible for animal services, the community development block grant, code enforcement, facilities, fleet, food inspections, the rental licensing program, and stormwater. The department administers a number of contracts with private sector firms for a range of goods and services that play an important role in effectively maintaining City facilities and providing essential services. Special projects and assignments on behalf of the City Manager and community are also carried out. Programs of Service Fleet Maintenance maintains over 400 vehicles, fire apparatus, EMS vehicles and small pieces of machinery. Facilities Management manages a maintenance and improvement program, retire assets, provides immediate repairs, engage in special projects, and new vertical construction projects. Animal Services operates the City’s animal shelter and enforces animal-related City ordinances. Storm Water Management is responsible for developing and implementing the City’s Storm Water Management Program and providing water quality guidelines for storm water discharge as required by federal and state agencies. The Food Inspection program is responsible for the permitting and inspection of temporary, mobile and permanent food establishments in order to ensure they are safe, sanitary and in compliance with applicable codes and regulations. Code Enforcement works to protect the health, safety and welfare of residents through enforcement of the City’s Codes and Ordinances. The Rental Licensing program ensures that the approx. 2,900 active rental properties are conforming to property maintenance standards and are safe for occupancy. FY18 Requests A total of $247,777 in recurring additions are included in Environmental & Neighborhood Services FY18 budget. The additions are due to three new hires which include an Animal Services Officer, a Kennel Technician, a Code Enforcement Inspector, and overtime. These costs include their training, office supplies, tools, equipment, professional services, and additional fuel for vehicles. An additional $148,400 in one-time expenses are included in the budget for a Stormwater Plan (MS4), Permit amendments, lease rental payments, HVAC rooftop repairs at the Police Department server room, and temporary help. 96 Environmental & Neighborhood Services Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,787,752 $ 3,064,770 $ 3,064,770 $ 3,177,484 $ 161,907 $ 3,339,391 286,266 309,966 298,283 567,531 21,750 589,281 1,053,129 1,015,193 1,027,922 805,182 41,500 846,682 589,364 555,600 555,600 576,999 576,999 148,263 220,190 220,858 193,806 151,020 344,826 27,445 113,834 113,834 20,000 20,000 $ 4,892,220 $ 5,279,553 $ 5,281,267 $ 5,321,002 $ 396,177 $ 5,717,179 Summary by Type ENS Administration Community Outreach Fleet Services Facilities Management Animal Services Stormwater Management Food Inspection Code Enforcement Rental Registration Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 433,811 $ 481,366 $ 481,366 $ 405,404 $ - $ 405,404 11,684 37,016 37,016 685,612 729,158 725,317 772,410 10,100 782,510 2,138,961 2,165,606 2,171,998 2,276,883 49,760 2,326,643 657,762 737,339 737,954 781,059 138,076 919,135 122,013 162,612 162,431 94,468 115,000 209,468 257,370 341,773 340,828 311,703 3,350 315,053 342,868 373,017 372,357 352,090 76,957 429,047 242,138 251,666 252,000 326,985 2,934 329,919 $ 4,892,220 $ 5,279,553 $ 5,281,267 $ 5,321,002 $ 396,177 $ 5,717,179 FTE Count ENS Administration Fleet Services Facilities Management Animal Services Stormwater Management Food Inspection Code Enforcement Rental Registration FTE Count Totals FY16 Budget 4.00 7.00 8.00 8.98 1.50 3.00 5.00 3.00 40.48 FY17 FY17 FY18 Budget Adjustments Base Budget 4.00 (2.00) 2.00 7.00 1.00 8.00 8.00 8.00 8.98 0.02 9.00 1.50 (1.00) 0.50 4.00 4.00 5.00 5.00 3.00 1.00 4.00 41.48 (0.98) 40.50 97 FY18 Changes 2.00 1.00 3.00 FY18 Budget 2.00 8.00 8.00 11.00 0.50 4.00 6.00 4.00 43.50 Police Department & Public Safety Dispatch As of October 1, 2017 City Manager First Assistant City Manager Public Safety Dispatch Police Administration Patrol SWAT Criminal Investigations 98 Support Services Detention Training Records Fleet & Equipment Services Police Department Mission Statement The Sugar Land Police Department places an emphasis on quality law enforcement, crime prevention, and community policing. The overall goal of the organization is to develop partnerships and joint problem-solving techniques with the community that will increase the safety and quality of life for residents and visitors. Services Provided The Sugar Land Police Department provides quality police services in an active and efficient manner to the citizens of Sugar Land, daily business population, pass-through commuters, shoppers, and visitors. The Police Department operates under the Beat Accountability System, which keeps officers close to one area. The City is divided into five beats, with officers assigned to each area partnering with residents to increase safety in the community. Programs of Service The Administration program is responsible for community relations, beat accountability, financial management, accreditation, policy establishment and compliance, internal affairs, red light camera enforcement and overall administration of the department. Patrol provides response to calls for service, active patrol, general traffic enforcement, directed assignments, traffic and DWI investigations, public education and presentations, new personnel training, court testimony, house watches, oversight of C.A.S.T. and Citizen’s Police Academy, bicycle patrol, honor guard, Municipal Court Bailiff, and security at public meetings. Special Weapons and Tactics (S.W.A.T.) is part of a multi-jurisdictional taskforce that serves felony warrants, responses to hostage/barricaded situations, surveillance and other tactical call-outs beyond normal patrol functions. The Criminal Investigations program provides prompt responses to crime scenes with investigators who collect, correlate, and analyze facts and evidence in each case, process and document the evidence and property, interview victims and witnesses of the crime, provide testimony for court and follow up with crime victim’s compensation, along with fingerprinting for civilians needing passports, concealed handgun licenses, and various occupations. Support Services is composed of four entities: Training, which is responsible for the coordination and implementation of all police personnel training and recruitment of new personnel; Records, which is responsible for processing, maintaining, and securing the official records of the Police Department and providing a primary call taker/receptionist for the department, Detention, which is responsible for housing detainees and Fleet & Equipment Services, which is responsible for maintaining the department’s fleet vehicles. FY18 Requests A total of $68,131 in recurring additions are included in the Police Department FY18 budget. These additions include tools, rifles, ammunition, uniforms, medical supplies, wireless devices, and training. 99 Police Department Performance Measures: Safest City in America The City Council measure for “Rapid, Effective, and Coordinated Response to an Emergency for Police” is response time to a Priority emergency. The target is 80% of responses within a target of 7 minutes. The City Council measure “Police work highly visible with people feeling safe and confident in the response” is citizen response to the latest citizen satisfaction survey. Police Response Time 100% 90% 87% 92% 88% 80% 70% 80% 80% 80% 90% 80% 60% 50% 40% 30% 20% 10% 0% Q4 - FY16 Q1 - FY17 Q2 - FY17 Actual Q3 - FY17 (YTD) Target Citizen Survey - Feeling Safe 100% 91% 76% 76% 75% Target US Southwest 75% 50% 25% 0% Actual 100 Police Department FY16 Actuals FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals $ 16,622,310 $ 640,301 131,494 261,188 279,416 119,461 $ 18,054,169 $ Summary by Type Police Administration Support Services Bureau TCLEOSE Training Patrol Criminal Investigations Detention Center SWAT Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 998,400 $ 1,115,752 $ 1,113,752 $ 1,141,302 $ - $ 1,141,302 2,147,443 2,576,600 2,503,345 2,233,804 50,615 2,284,419 518 17,941 17,941 10,892,248 12,887,564 12,895,062 13,124,488 10,867 13,135,355 3,602,424 3,820,536 3,786,249 4,012,765 6,649 4,019,414 387,776 420,227 420,227 423,580 423,580 25,361 30,001 30,001 25,000 25,000 $ 18,054,169 $ 20,868,621 $ 20,766,577 $ 20,960,939 $ 68,131 $ 21,029,070 FTE Count Police Administration Support Services Bureau Patrol Criminal Investigations Detention Center FTE Count Totals FY16 Budget 8.50 14.50 111.00 33.80 6.00 173.80 18,282,195 $ 18,282,195 $ 19,568,193 $ 1,132,571 1,050,777 697,523 134,357 134,357 123,140 303,267 283,017 307,149 306,848 306,848 264,934 709,383 709,383 20,868,621 $ 20,766,577 $ 20,960,939 $ FY17 FY17 FY18 Budget Adjustments Base Budget 8.50 (1.00) 7.50 14.50 1.50 16.00 111.00 17.00 128.00 34.00 3.00 37.00 6.00 6.00 174.00 20.50 194.50 101 - $ 19,568,193 50,773 748,296 9,720 132,860 307,149 7,638 272,572 68,131 $ 21,029,070 FY18 Changes - FY18 Budget 7.50 16.00 128.00 37.00 6.00 194.50 Public Safety Dispatch Mission Statement The Sugar Land Public Safety Dispatch provides support to the City’s Public Safety operations and the citizens of Sugar Land through a specialized communications network in the form of radio and computer transmissions, the use of specialized computer systems and the operations of emergency, as well as non-emergency telephone communications systems. Services Provided The Sugar Land Public Safety Dispatch Center is the public safety answering point for the City of Sugar Land. The center answers 911 and other emergency and non-emergency calls and requests for assistance and ensure that each one is processed accurately. The Dispatch Center is housed in the Police Department and provides dispatching to both the Police and Fire Departments. Programs of Service Public Safety Dispatch answers calls routed through emergency and non-emergency phone systems for the purpose of providing assistance from Police, Fire/EMS, Animal Services, Public Works, Traffic, and other City departments. All Dispatchers/Call Takers are trained in Emergency Medical Dispatch protocols. The calls are transferred, if appropriate, and resources are dispatched to the site via radio, computer, or other electronic devices. FY18 Requests A total of $2,080 in recurring additions are included in Public Safety Dispatch’s FY18 budget. This addition is for Emergency Medical & Fire service dispatch certifications. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 1,852,040 $ 2,309,053 $ 2,309,053 $ 2,911,130 $ - $ 2,911,130 13,891 24,823 24,823 15,400 15,400 60,581 60,195 60,195 61,245 61,245 27,927 45,387 45,387 51,700 51,700 28,971 34,988 34,988 33,336 2,080 35,416 110,124 $ 2,093,535 $ 2,474,446 $ 2,474,446 $ 3,072,811 $ 2,080 $ 3,074,891 Summary by Type Public Safety Dispatch Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,093,535 $ 2,474,446 $ 2,474,446 $ 3,072,811 $ 2,080 $ 3,074,891 $ 2,093,535 $ 2,474,446 $ 2,474,446 $ 3,072,811 $ 2,080 $ 3,074,891 FTE Count Public Safety Dispatch FTE Count Totals FY16 Budget 27.00 27.00 FY17 FY17 FY18 Budget Adjustments Base Budget 27.00 8.00 35.00 27.00 8.00 35.00 102 FY18 Changes - FY18 Budget 35.00 35.00 Fire/EMS As of October 1, 2017 City Manager First Assistant City Manager Fire Administration Emergency Services Prevention & Investigation Emergency Medical Services Public Education Emergency Management 103 Planning & Development Fire/EMS Mission Statement The Mission of the Fire/EMS is to offer excellent service by collaborating, acting with integrity and exhibiting trust, creating a safe place to live, work, and play. Services Provided Fire/EMS provides core emergency services, including fire and emergency medical services to the citizens of Sugar Land, ETJ population, daily business population, commuters, shoppers, and visitors. Fire/EMS operates out of seven fire stations, with six stations located within the City limits and one station in the ETJ. Ambulances are located at four stations to serve residents and businesses within the City limits, and in the ETJ through mutual aid agreements. Programs of Service Administration is responsible for strategic planning, intergovernmental relations, human resources management, and overall administration of the department. Emergency Services provides fire suppression, technical rescue, aircraft rescue, firefighting, hazardous materials response, and aquatic rescues. Prevention/Investigation provides fire protection engineering, fire code enforcement, and fire investigations to determine the cause and origin of fires. Public Education engages in a variety of public outreach programs including home safety surveys, smoke alarm programs, and a citizens’ fire academy to promote fire safety awareness in homes and businesses in Sugar Land. Planning & Development is responsible for planning, professional standards, professional development, and training. Emergency Management is responsible for the all-hazards emergency management plan for the City. Emergency Management provides emergency preparedness, emergency response and emergency recovery services. EMS Services provides emergency medical treatment and ambulance transport to those in need of urgent medical care within the city limits or through mutual aid agreements. FY18 Requests A total of $209,052 in recurring additions are included in Fire’s FY18 budget. These additions include a new Fire Inspector, medical supplies, equipment for ambulances, medications, and miscellaneous items for Prevention and EMS Services. An additional $167,756 in one-time expenses are included in the budget, for a cardiac monitor, radios, an Auto-Pulse machine, and a new vehicle for the Fire Inspector. Performance Measures: Safest City in America The City Council measure for “Rapid, effective, and coordinated response to an emergency for Fire and EMS” is response time to an emergency. The target is 80% of all responses to all Emergency Calls within 8 minutes and 30 seconds. 104 Fire/EMS Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 13,079,601 $ 14,054,883 $ 14,054,883 $ 14,521,308 $ 115,305 $ 14,636,613 465,249 667,938 578,915 540,163 95,332 635,495 207,622 241,004 241,004 219,824 8,565 228,389 242,771 341,546 341,546 302,061 6,690 308,751 137,290 199,507 199,507 144,847 7,649 152,496 33,777 38,932 38,932 143,267 143,267 $ 14,166,312 $ 15,543,810 $ 15,454,787 $ 15,728,203 $ 376,808 $ 16,105,011 Summary by Type Fire Administration Emergency Services Emergency Medical Services Haz Mat Prevention Emergency Management Professional Development Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 402,219 $ 420,066 $ 418,254 $ 410,021 $ - $ 410,021 10,099,704 10,578,662 10,521,077 10,956,904 10,956,904 1,591,874 2,187,643 2,171,482 2,135,479 184,823 2,320,302 20,678 40,543 39,842 44,539 44,539 968,964 1,022,728 1,018,716 1,045,996 191,985 1,237,981 373,366 429,203 426,929 392,503 392,503 709,507 864,965 858,487 742,761 742,761 $ 14,166,312 $ 15,543,810 $ 15,454,787 $ 15,728,203 $ 376,808 $ 16,105,011 FTE Count Fire Administration Emergency Services Emergency Medical Services Prevention Emergency Management Professional Development FTE Count Totals FY16 Budget 3.00 90.00 13.00 8.00 3.00 5.00 122.00 FY17 FY17 FY18 Budget Adjustments Base Budget 3.00 3.00 90.00 90.00 13.00 7.00 20.00 8.00 8.00 3.00 3.00 5.00 5.00 122.00 7.00 129.00 105 FY18 Changes 1.00 1.00 FY18 Budget 3.00 90.00 20.00 9.00 3.00 5.00 130.00 Non-Departmental Services Provided Non-departmental is used to account for expenditures and transfers that are not assigned to any one department. Transfers Inter-fund transfers are budgeted in non-departmental. Transfers are made to the Fleet and High Tech replacement funds for replacement of vehicles and technology equipment, the CIP fund for pay-as-you-go CIP projects, the SPA debt reduction funds, and the Airport fund for property taxes paid on airport property as per policy. An additional $12,000 is budgeted in transfers to the Court Tech fund to cover a portion of Court Tech operations and maintenance expenses. Rebates and Assignments The City has seven in-City MUDs eligible for a rebate of a percentage of the City taxes collected from property within the district. These incentives agreements are monitored for sales tax revenues, and grant payments are requested in accordance with each agreement. Miscellaneous Miscellaneous includes payments for property insurance premiums and deductibles, salary savings, contingency funds, and other miscellaneous expenditures. Summary by Category Transfers to other Funds Miscellaneous Rebates & Assignments Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 7,145,182 $ 6,669,101 $ 3,837,200 $ 2,834,145 $ 12,000 $ 2,846,145 997,089 887,011 463,533 (116,223) (116,223) 3,444,735 2,557,913 2,557,913 2,613,188 2,613,188 $ 11,587,006 $ 10,114,025 $ 6,858,646 $ 5,331,110 $ 12,000 $ 5,343,110 106 Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenues that are legally restricted to expenditures for specified purposes. The City has fourteen Special Revenue Funds budgeted for Fiscal Year 2018. Court Security Fund The City collects a $3 fee from each defendant found guilty of a misdemeanor. Pursuant to Article 102.017 of the Texas Code of Criminal Procedure, revenues generated from this fee must be deposited into a special revenue fund. The money collected may be used only to fund court security and includes such items as metal detectors, surveillance equipment, security personnel, security hardware, security training, or other security measures. Fiscal Year 2017 Revenues are projected to be $38,040, which includes security fees of $38,009 and interest income of $31. Operating expenditures total $44,505, which represents 50% of personnel costs for the Court Bailiff salary and benefits. Fund balance at 9/30/17 is projected to be $19,949. Fiscal Year 2018 Revenues budgeted total $42,216, which includes security fees of $42,185 and $31 in interest income. Operating expenditures of $45,843 represent 50% of personnel costs for the Court Bailiff. The remaining 50% of the bailiff position is funded in the General Fund. Ending fund balance at 9/30/18 is estimated to be $16,322. Court Technology Fund The City collects a $4 fee from each defendant found guilty of a misdemeanor under Article 102.0172 of the Texas Code of Criminal Procedure. Revenues generated from the fee can only be used to fund court technology such as computer equipment, imaging systems, electronic kiosks, docket management systems, and electronic ticket writers. Fiscal Year 2017 Revenues are projected to be $50,912, which includes technology fees of $50,680 and $232 for interest income. Operating expenditures total $87,028, and includes funds for annual maintenance contracts for the court software. Fund balance at 9/30/17 is estimated to be $8,257. Fiscal Year 2018 Revenues budgeted total $68,323, which includes $56,248 for technology fees, with $12,000 transfers from other funds, and $75 in interest income. Budgeted expenditures total $76,228, which is for the annual maintenance contracts for court software. Fund balance at 9/30/18 is estimated to be $352. Community Development Block Grant The U.S. Department of Housing and Urban Development provides eligible metropolitan cities and urban counties (called “entitlement communities”) with annual direct grants that can be used to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, primarily to benefit low and moderate income persons. Under the Community Development Block Grant (CDBG) guidelines, up to 15% of the block grant may be spent on public services and up to 20% may be spent on administration. Fiscal Year 2017 Revenues projected total $481,223, which represents funds received from the CDBG program. Operating expenditures total $481,223, and include $56,500 for professional services, $114,436 for other contractual services, and $310,287 for pavement and sidewalk repairs in Covington Woods, Pinecraft at Ravenscourt, and for capital project funding used to improve facilities at Lonnie Green Park. Fund balance at 9/30/17 is projected to be zero. 107 Fiscal Year 2018 Revenues total $283,687, which represents funds to be received from the CDBG program. Operating expenditures total $283,687 which include $55,120 for professional services, $119,780 for other contractual services, and $108,787 for pavement reconstruction of a cul-de-sac on Barrowgate Drive. Fund balance at 9/30/18 is estimated to be zero. Tourism Fund The Tourism Fund accounts for revenues realized from Hotel Occupancy Taxes. By law, cities with populations of less than 125,000 must spend at least 1% of hotel tax rate or 1/7 of the budget on advertising, no more than 15% on art programs and a maximum of 50% on historical preservation. Hotels submit an occupancy tax based on 7% of total room receipts to the City within 30 days of each quarter. Sugar Land is home to eight hotels, with a total of 1,261 rooms. The new hotel, Marriott Courtyard, will open in the fall of FY18, and is projected to contain an additional 135 rooms. In total, Sugar Land will have nine hotels, with 1,396 rooms. Hotel taxes from the Sugar Land Marriott are used to pay the debt service on the $10 million Certificates of Obligation that were issued by the City to finance the Sugar Land Conference Center, which is leased and operated by the Sugar Land Town Square Marriott. The fund also supports the $9.98 million in certificates of obligation issued in 2014 for the Smart Financial Centre at Sugar Land, and TIRZ #4 Plaza. Fiscal Year 2017 Projected revenues total $2,224,300 with $2,220,100 in occupancy tax, and $4,200 in interest income. Projected expenditures total $2,484,154, which includes $456,850 for events and sponsorships, $679,082 for tourism and promotions, $49,542 for the Sugar Land Visitor Center, and $64,983 for cultural arts implementation. The transfers out include the transfer to the Debt Service Fund to cover the debt for the Marriott conference center and the Smart Financial Centre at Sugar Land, and the transfer to CIP to fund Public Arts project. Fund balance at 9/30/17 is estimated to be $268,673. Fiscal Year 2018 Budgeted revenues are $2,313,300 with $2,309,100 in hotel occupancy tax and $4,200 in interest income. Expenditures total $2,341,714 and include $309,800 for events and sponsorships, $557,957 for tourism and promotions, $53,324 for cultural art, and $239,569 for the Sugar Land Visitors Center maintenance and operations, which will include an addition of two part-time Visitor Service Specialists. The transfers out include the transfer to the Debt Service Fund for $1,181,064 to cover the debt for the Marriott conference center and the Smart Financial Centre at Sugar Land, and the transfer of $25,000 to partially fund the Public Arts project. Fund balance at 9/30/18 is estimated to be $240,259, that is $9,349 over the policy requirement, which is 10% of the budgeted hotel occupancy tax. State Seizures Fund State seizure funds are deposited into a special fund and may only be used for law enforcement purposes, such as salaries and overtime pay for officers, training for officers, specialized investigative equipment and supplies, and items used by officers in direct law enforcement duties. Seizure funds are acquired through the sale of seized property that was used in commission of a crime. Sugar Land receives a percentage of the sale of property seized by Sugar Land Police or the Fort Bend County Narcotics Task Force. Fiscal Year 2017 Projected revenues are $121,024 with $121,000 coming from Fort Bend County Narcotics Task Force and $24 in interest income. There are $109,000 in projected expenditures for a new mobile command vehicle. Fund balance at 9/30/17 is estimated to be $137,771. 108 Fiscal Year 2018 Budgeted revenues are $195 in interest income. Expenditures total $25,000, which includes $10,000 for maintenance on the city’s police department MRAP vehicle and $15,000 for updating the police departments AIMS software. Fund balance at 9/30/18 is estimated to be $112,966. Federal Seizures Fund When the City receives equitably shared property from federal agencies, it is deposited in the Federal Seizure Fund. The use of the fund is not as limited as the shared property that was forfeited as a result of a particular federal violation, e.g. use of the funds for drug enforcement. The funds can be used for law enforcement investigations and other law enforcement related activities as allowed. Fiscal Year 2017 Projected revenues are $886. Expenditures are projected to be zero. Fund balance at 9/30/17 is estimated to be $10,865. Fiscal Year 2018 Budgeted revenues are $13. There are no expenditures budgeted for FY18. Fund balance at 9/30/18 is estimated to be $10,878. Law Enforcement Fund Chapter 683 of the Texas Transportation Code provides that any vehicle abandoned on public property within the City may be taken into custody and after efforts to contact the owner have failed, the vehicle may be auctioned. If still unclaimed by the owner of the vehicle, all proceeds from the sale, up to $1,000, must be set aside to cover the costs of dealing with future vehicle abandonment, but proceeds in excess of $1,000 may be considered general revenues and used to fund department activities. The revenue in this fund represents such proceeds and may be used to fund Police Department activities. Fiscal Year 2017 Budgeted revenues are projected to be $7 for interest income. There are no projected expenditures. Fund balance at 9/30/17 is estimated to be $4,538. Fiscal Year 2018 Budgeted revenues of $7 in interest income and there are no expenditures budgeted for FY18. Fund balance at 9/30/18 is estimated to be $4,545. Photographic Traffic Signal Enforcement The 80th legislature included SB1119 that amended the transportation code to allow photographic enforcement of traffic violations. The act provides for civil penalties that may be imposed on the owner of a vehicle identified by a camera in violation of a traffic control signal. The act requires the City to deposit revenue generated into a special fund. Any revenue generated net of costs required to operate, install, and maintain the photographic traffic signal enforcement equipment, reviewing violations, processing payment and administrative hearings, is to be shared with the State. The City’s share of net revenue is limited to fund traffic safety programs including pedestrian safety, public safety, intersection improvements and traffic enforcement. Fiscal Year 2017 Projected revenues total $1,931,512 and include $1,930,776 from civil fines from cameras currently located at the following intersections: Westbound and Eastbound West Airport and Eldridge, Southbound US 59 and Highway 6, Westbound Highway 6 and Lexington, Westbound Highway 6 and US 59, Northbound Dairy Ashford and US 90A, Westbound Dairy Ashford and US 90A including right hand turn. Two additional cameras were added this fiscal year, 109 Westbound Dairy Ashford and US 90A at Eldridge/Lombardy/FM1876, and Westbound South University Boulevard and Elkins Road. Operating expenditures total $954,162 including $193,348 for administrative personnel cost and $760,814 for operations and maintenance. Net revenue of $977,350 is to be split 50/50 with the State. The City portion is being transferred to the General Fund in support of traffic programs. Fund balance at 9/30/17 is projected to be zero. Fiscal Year 2018 Budgeted revenues total $2,014,313, which include $2,013,306 from civil fines. Operating expenditures budgeted total $882,357, including $180,632 for administrative personnel cost, and $701,725 for operations and maintenance. Net revenues of $1,131,956 are to be split 50/50 with the State. The City portion is transferred to the General Fund to support traffic programs in accordance with State Statute. Fund balance at 09/30/18 is projected to be zero. Greatwood Debt Reduction Fund According to the terms of the Strategic Partnership Agreement (SPA) with the Municipal Utility Districts (MUDs) in Greatwood, the MUDs will be subject to an out-of-city-service fee for services received from the City after the SPA effective date and prior to annexation into the City. All revenues deposited in the fund will be reserved for future retirement of debt that will be assumed by the City when the district is eventually annexed into the City and dissolved. Revenues consist of out-of-city service fees and a transfer of a portion of sales taxes collected from the River Park area, up to $150,000 per year. In addition, commercial areas in Greatwood were annexed for limited purposes including sales tax, and the City’s portion of the sales tax (excluding the economic development portion) is transferred to the Debt Reduction Fund. Fiscal Year 2017 Projected operating revenues total $707,054, which include $389,796 for out-of-city service fees and $34,542 of interest income. Transfers in of $282,716 are from the General Fund for $150,000 in sales tax revenues from the River Park area and $132,716 from the Greatwood limited purpose annexation area. Expenditures in FY17 include transfers to other funds for Annexation related items in the amount of $2,097,960. Ending fund balance at 9/30/17 is projected at $3,274,599. Fiscal Year 2018 Revenues total $89,275 and include $74,275 for out-of-city service fees, and $15,000 for interest income. Expenditures in FY18 are transfers to the other funds in the amount of $3,363,874 to fund Annexation related items. Projected ending fund balance at 9/30/18 is zero. Tara Plantation Debt Reduction Fund Tara Plantation is a participant in the Groundwater Reduction Plan (GRP). Tara Plantation and the City have not entered into a SPA, but an agreement is expected sometime in the future. The GRP participation agreement imposed a 20% out-of-city service fee for services received from the City. In anticipation of approval of a SPA, these fees are being deposited into the Tara Plantation Debt Reduction Fund. These fees will be reserved for future retirement of debt that will be assumed by the City if the district is annexed into the City and dissolved. Fiscal Year 2017 Operating revenues are projected at $49,098, which includes out-of-city service fees and interest income. There are no budgeted expenditures in operations and maintenance. Fund balance at 9/30/17 is estimated to be $323,419. 110 Fiscal Year 2018 Revenues budgeted total $44,900 and include $44,520 for out-of-city service fees and $380 for interest income. Plantation MUD will begin paying the full cost fire fees plus 20% out-of-the city service fees in February 2016. There are no budgeted expenditures. Fund balance at 9/30/18 is estimated to be $368,319. This fund balance will continue to grow until the City annexes the district in the future. New Territory Debt Reduction Fund According to the terms of the SPA with MUDs in New Territory, the MUDs will be subject to an out-of-city-service fee for services received from the City after the SPA effective date and prior to annexation into the City. All revenues deposited in the fund will be reserved for future retirement of debt that will be assumed by the City when the districts are eventually annexed into the City and dissolved. Revenues consist of out-of-city service charges on pumpage and fire fees along with a transfer of $150,000 in sales taxes collected from the River Park area. Fiscal Year 2017 Projected operating revenues total $670,709 which include out-of-city service fees of $487,919 and interest income of $32,790. Transfers in total $150,000 from the General Fund for sales taxes collected in the River Park area. Expenditures in FY17 are transfers to the other funds in the amount of $2,097,960. Ending fund balance at 9/30/17 is projected at $3,663,461. Fiscal Year 2018 Revenues budgeted total $112,868 and include $96,474 for out-of-city service fees, $16,395 for interest income. Expenditures in FY18 are transfers to the other funds in the amount of $3,571,392. These funds will be transferred to the General Fund to fund annexation related expenses. Budgeted ending fund balance at 9/30/18 is $204,900. These funds will be used to pay down any debt remaining when the districts are annexed by the City, or for other uses authorized under the SPA. Riverstone Debt Reduction Fund Fort Bend Municipal Utility District No. 128 has an agreement with the City that states that any out-of-city service fees paid by the District for raw water or re-use water will be deposited into a debt reduction fund. All revenues deposited in the fund will be reserved for future retirement of debt upon the City’s annexation of the District, repairs and maintenance of public infrastructure within the Tract, offset direct costs of City services to the Tract, and other direct costs incurred by the City because of annexation of the District. Fiscal Year 2017 Revenues projected total $153,681 and include $153,364 for out-of-city service fees and $316 for interest income. There are no budgeted expenditures for FY17. Budgeted ending fund balance at 9/30/17 is $521,183. Fiscal Year 2018 Revenues budgeted total $161,359 and include $161,033 for out-of-city service fees and $326 for interest income. There are no budgeted expenditures for FY18. Budgeted ending fund balance at 9/30/18 is $682,541. Enclave at River Park PID Authorized under the Public Improvement District Assessment Act (Chapter 372 of LGC). Enclave at River Park PID allows the City to levy and collect an assessment on property within the PID for reimbursement of expenses associated with improvement projects which include: Water, wastewater, or drainage facility construction/improvements; Street and sidewalk construction/improvements; Park and recreation establishment/improvements; Acquisition of property; and Administration/operational expenses. 111 Fiscal Year 2017 Revenues projected total $185,161 and include $153,831 for PID assessment fees, $344 for interest income, and $30,986 for transfers in from the General Fund and Debt Service Fund. There are no budgeted expenditures for FY17. Budgeted ending fund balance at 9/30/17 is $515,817. Fiscal Year 2018 Revenues budgeted total $148,221 and include $110,014 for PID assessment fees, $79 for interest income, and $38,128 for transfers in from the General Fund and Debt Service Fund. There are no budgeted expenditures for FY18. Budgeted ending fund balance at 9/30/18 is $664,038 Special Events Fund The Special Events fund accounts for City Services such as fire, traffic, and police, that are activated due to a special event being conducted in the City. A special event is a unique activity, occurring for a limited or fixed duration, and having an impact to public property. Additionally, the Special Events fund accounts for the rental fees collected for the Festival Site and Brazos River Park. Both facilities were approved by Sugar Land voters in November 2013 as part of a general obligation bond proposition. Specifically, the Festival Site has been designed to contain festival grounds that could accommodate large-scale events like the annual Fourth of July celebration, cultural offerings, and possibly commercial entertainment events that could benefit the local economy. Fiscal Year 2017 Revenues projected total $54,200 and includes $4,200 in rental and special event permit fees from the festival grounds, and $50,000 for transfers in from the General Fund. Expenditures total $52,790, which includes $48,840 for a Destination Event Manager and $3,950 for operations and maintenance. Budgeted ending fund balance at 9/30/17 is $1,410. Fiscal Year 2018 Revenues budgeted total $78,630 and includes $45,630 in rental and special event permit fees from the festival grounds, and $33,000 for transfers in from the General Fund. Expenditures total $79,131, for personnel. Budgeted ending fund balance at 9/30/18 is $909. 112 CITY OF SUGAR LAND SPECIAL REVENUE FUND - COURT SECURITY FUND INCOME STATEMENT FY16 Actuals REVENUES Security Fees Interest Income Miscellaneous Transfers in Total Revenues EXPENDITURES Personnel Operations & Maintenance Capital Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 44,727 $ 37 44,764 49,500 $ 17 49,517 38,009 $ 31 38,040 42,185 $ 31 42,216 - 42,354 42,354 44,505 44,505 44,505 44,505 45,843 45,843 - 45,843 45,843 2,410 24,004 26,414 $ 5,012 26,414 31,426 $ (6,465) 26,414 19,949 $ (3,627) 19,949 16,322 $ - (3,627) 19,949 16,322 113 $ $ 42,185 31 42,216 CITY OF SUGAR LAND SPECIAL REVENUE FUND - COURT TECHNOLOGY FUND INCOME STATEMENT FY16 Actuals REVENUES Technology Fees Interest Income Transfers in Total Revenues EXPENDITURES Operations & Maintenance Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 59,636 $ 149 59,785 66,000 $ 75 66,075 50,680 $ 232 50,912 56,248 $ 75 12,000 68,323 - 63,100 63,100 87,028 87,028 87,028 87,028 76,228 76,228 - 76,228 76,228 (7,905) 8,257 352 $ - (7,905) 8,257 352 (3,315) 47,688 44,373 $ (20,953) 44,373 23,420 $ 114 (36,116) 44,373 8,257 $ $ $ 56,248 75 12,000 68,323 CITY OF SUGAR LAND SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES CDBG $ 504,354 $ 481,223 $ 481,223 $ Interest Income Miscellaneous Total Revenues 504,354 481,223 481,223 EXPENDITURES Professional Services 56,460 56,500 56,500 Other Contractual 111,665 114,436 114,436 Capital 336,229 310,287 310,287 Total Expenditures 504,354 481,223 481,223 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ - $ - 115 $ - $ FY18 Base Budget FY18 Changes FY18 Budget 283,687 $ 283,687 - 55,120 119,780 108,787 283,687 - 55,120 119,780 108,787 283,687 - - - $ $ $ 283,687 283,687 CITY OF SUGAR LAND SPECIAL REVENUE FUND - TOURISM INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES Hotel/Motel Occupancy Tax Interest Income Miscellaneous Total Revenues EXPENDITURES Events & Sponsorships Tourism & Promotions Sugar Land Visitors Center Cultural Art Capital Projects Total Operating Expenditures Transfers to Other Funds Miscellaneous Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning GAAP Adjustments Fund Balance - Ending $ 2,328,186 $ 7,301 1,228 2,336,715 302,287 508,440 44,287 3,575 858,589 3,957,278 3,957,278 4,815,867 (2,479,152) 3,537,475 (594,269) $ 464,054 $ Fund Balance Policy (10% of Budgeted HOT) Over/Under Policy $ $ FY17 Projections FY18 Base Budget 2,475,026 $ 15,000 2,490,026 2,220,100 $ 4,200 2,224,300 2,220,000 $ 4,200 2,224,200 453,000 751,455 81,034 64,983 1,350,472 1,433,697 1,433,697 2,784,169 456,850 679,082 49,542 64,983 1,250,457 1,233,697 1,233,697 2,484,154 304,800 557,957 239,569 53,324 1,155,650 1,181,064 1,181,064 2,336,714 (294,143) 1,058,323 (529,796) 234,384 $ (259,854) 1,058,323 (529,796) 268,673 $ 247,503 $ (13,118) $ 222,010 $ 46,663 $ 116 (112,514) 798,469 (529,796) 156,159 $ 222,000 (65,841) FY18 Changes FY18 Budget 89,100 $ 89,100 5,000 5,000 5,000 2,309,100 4,200 2,313,300 309,800 557,957 239,569 53,324 1,160,650 1,181,064 1,181,064 2,341,714 84,100 84,100 $ (28,414) 798,469 (529,796) 240,259 $ $ 230,910 9,349 CITY OF SUGAR LAND SPECIAL REVENUE FUNDS - STATE SEIZURES INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES Other Income Interest Income Transfers In Total Revenues EXPENDITURES Maintenance and Operations Transfers to other funds Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 8,113 $ 178 8,291 - $ 8,291 117,456 125,747 $ FY17 Projections - $ 100 100 109,000 109,000 (108,900) 125,747 16,847 $ 117 121,000 $ 24 121,024 109,000 109,000 12,024 125,747 137,771 $ FY18 Base Budget FY18 Changes - $ 195 195 - 195 137,771 137,966 $ FY18 Budget - $ 25,000 25,000 (25,000) (25,000) $ 195 195 25,000 25,000 (24,805) 137,771 112,966 CITY OF SUGAR LAND SPECIAL REVENUE FUNDS - FEDERAL SEIZURES INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES Other Income Interest Income Transfers In Total Revenues EXPENDITURES Maintenance and Operations Transfers to other funds Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ 2,106 $ 12 2,118 FY18 Base Budget FY17 Projections - $ 10 10 - - 2,118 7,861 9,979 $ 10 9,979 9,989 $ 118 874 $ 12 886 886 9,979 10,865 $ FY18 Changes - $ 13 13 - 13 10,865 10,878 $ FY18 Budget - $ 13 13 - - - 13 10,865 10,878 $ CITY OF SUGAR LAND SPECIAL REVENUE FUNDS - LAW ENFORCEMENT INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES Other Income Interest Income Transfers In Total Revenues EXPENDITURES Maintenance and Operations Transfers to other funds Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ - $ 7 7 FY18 Base Budget FY17 Projections - $ 10 10 FY18 Changes FY18 Budget - $ 7 7 - $ 7 7 - $ 7 7 - - - - - - 7 4,524 4,531 $ 10 4,531 4,541 $ 7 4,531 4,538 $ 7 4,538 4,545 $ - 7 4,538 4,545 119 $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES Civil Fines $ 1,836,288 $ 1,920,000 $ 1,930,776 $ Interest Income 1,116 736 736 Total Revenues 1,837,403 1,920,736 1,931,512 EXPENDITURES Personnel Costs 178,471 163,217 193,348 Operations & Maintenance 568,248 761,055 760,814 Total Operating Expenditures 746,719 924,272 954,162 State Share 528,434 506,424 488,675 Transfers Out 528,434 506,424 488,675 Total Non-Operating Expenditures 1,056,867 1,012,848 977,350 Total Expenditures 1,803,586 1,937,120 1,931,512 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 33,818 (17,434) 16,384 $ (16,384) 16,384 - $ 120 - $ FY18 Base Budget FY18 Changes FY18 Budget 2,013,306 $ 1,007 2,014,313 - 180,632 701,725 882,357 565,978 565,978 1,131,956 2,014,313 - 180,632 701,725 882,357 565,978 565,978 1,131,956 2,014,313 - - - $ $ $ 2,013,306 1,007 2,014,313 CITY OF SUGAR LAND SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUND GREATWOOD INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES Out of City Service Fees $ 392,664 $ 434,940 $ 389,796 $ Interest Income 28,119 13,500 34,542 Transfers In 294,379 296,429 282,716 Total Revenues 715,163 744,869 707,054 EXPENDITURES Operations & Maintenance Transfers to Other Funds 2,097,960 2,097,960 Total Expenditures 2,097,960 2,097,960 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending 715,163 (1,353,091) 3,950,343 4,665,505 $ 4,665,505 $ 3,312,414 $ 121 (1,390,906) 4,665,505 3,274,599 $ FY18 Base Budget 74,275 $ 15,000 89,275 3,363,874 3,363,874 (3,274,599) 3,274,599 - $ FY18 Changes FY18 Budget - $ 74,275 15,000 89,275 - 3,363,874 3,363,874 - (3,274,599) 3,274,599 - $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUND - TARA PLANTATION INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES Out of City Service Fees $ 45,428 $ 44,520 $ 48,725 $ Interest Income 298 175 373 Transfers In Total Revenues 45,726 44,695 49,098 EXPENDITURES Operations & Maintenance Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 45,726 228,595 274,321 $ 44,695 274,321 319,016 $ 122 49,098 274,321 323,419 $ FY18 Base Budget FY18 Changes 44,520 $ 380 44,900 44,900 323,419 368,319 $ FY18 Budget - $ 44,520 380 44,900 - - - 44,900 323,419 368,319 $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUND - NEW TERRITORY INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES Out of City Service Fees $ 505,037 $ 506,840 $ 487,919 $ Interest Income 21,347 20,000 32,790 Transfers In 150,000 150,000 150,000 Total Revenues 676,384 676,840 670,709 EXPENDITURES Operations & Maintenance Transfers to Other Funds 2,097,960 2,097,960 Total Expenditures 2,097,960 2,097,960 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending 676,384 (1,421,120) 4,414,328 5,090,712 $ 5,090,712 $ 3,669,592 $ 123 (1,427,251) 5,090,712 3,663,461 $ FY18 Base Budget 96,474 $ 16,395 112,868 3,571,392 3,571,392 (3,458,524) 3,663,461 204,900 $ FY18 Changes FY18 Budget - $ 96,474 16,395 112,868 - 3,571,392 3,571,392 - (3,458,524) 3,663,461 204,900 $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUND - RIVERSTONE INCOME STATEMENT FY17 FY16 Current FY17 Actuals Budget Projections REVENUES Out of City Service Fees $ 135,225 $ 98,775 $ 153,364 $ Interest Income 216 200 316 Transfers In Total Revenues 135,442 98,975 153,681 EXPENDITURES Operations & Maintenance Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 135,442 232,060 367,502 $ 98,975 367,502 466,477 $ 124 153,681 367,502 521,183 $ FY18 Base Budget FY18 Changes 161,033 $ 326 161,359 161,359 521,183 682,541 $ FY18 Budget - $ 161,033 326 161,359 - - - 161,359 521,183 682,541 $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - ENCLAVE AT RIVER PARK PID INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES PID Assessment Fees Interest Income Transfers In Total Revenues EXPENDITURES Reimbursements Transfers to Other Funds Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 153,973 $ 163 11,192 165,328 - $ 165,328 165,328 330,656 $ FY18 Base Budget FY17 Projections 128,808 165 30,986 159,959 159,959 330,656 490,615 $ 125 153,831 $ 344 30,986 185,161 185,161 330,656 515,817 $ FY18 Changes 110,014 $ 79 38,128 148,221 148,221 515,817 664,038 $ FY18 Budget - $ 110,014 79 38,128 148,221 - - - 148,221 515,817 664,038 $ CITY OF SUGAR LAND SPECIAL REVENUE FUND - SPECIAL EVENTS INCOME STATEMENT FY17 Current Budget FY16 Actuals REVENUES Rental Fees Transfers In Total Revenues EXPENDITURES Personnel Costs Operations & Maintenance Total Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ - $ FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 93,162 $ 93,162 4,200 $ 50,000 54,200 45,630 $ 33,000 78,630 - - 89,212 3,950 93,162 93,162 48,840 3,950 52,790 52,790 79,131 79,131 79,131 - 79,131 79,131 79,131 - - - (501) 1,410 909 $ 126 $ 1,410 1,410 $ (501) 1,410 909 $ $ $ 45,630 33,000 78,630 Capital Projects Fund Capital Project Funds account for the acquisition or construction of major capital activities. Funding is provided by debt issuance, Sugar Land Development Corporation, Sugar Land 4B Corporation, Airport revenues, Utility revenues, Tourism Fund, grants and donations. Capital Improvement Process Section 6.03 of the City Charter states that the City shall file a multi-year capital improvement program and a current year capital budget. Annually, City staff prepares and files a five-year Capital Improvement Program (CIP). The CIP identifies needed capital improvements and financing for those improvements. The first year of the plan is incorporated into the annual budget to appropriate funds for the specific projects. The five-year Capital Improvement Program (CIP) for FY18-FY22 totals $130.55 million. Cost estimates for years two through five of the five-year CIP are for planning purposes only and are used in conjunction with the long-range financial plan of the City to determine potential project funding sources or to adjust project timing based on affordability. Estimates are based on the best information available, and ultimate project budgets may vary from estimates. Funding sources and levels are identified and developed through the Budget Office. The first draft of the five-year CIP is prepared without fiscal constraints. The CIP is reviewed by the departments, Planning and Zoning Commission, the Sugar Land Development Corporation (SLDC), Sugar Land 4B Corporation (SL4B), and the City Manager. The City Council reviews the list of proposed projects without respect to dollar amounts or timing. A final draft of the fiscally constrained five-year CIP is then prepared and filed with the annual budget for Council consideration and approval. Upon City Council adoption, the five-year CIP document is reproduced and distributed for implementation of the program. Fiscal Year 2017 The FY17 capital project budget totaled $73,998,850. Many projects included in FY17 are still in progress as most capital projects are multi-year projects. CIP - Project Types Fiscal Year 2018 FY18 capital projects total $22,272,556. Wastewater projects make up the majority of the distribution at 27%, followed by Streets projects with 19%. Water projects represent 18% and Municipal projects at 17%, Drainage at 10%, while Parks and Traffic projects combine to represent 9% of the proposed project budgets for the FY18 CIP. Water 18% Wastewater 27% Municipal 17% Streets 19% Drainage projects total $2,210,000 and include: Covington Parks/Traffic 9% Woods drainage improvements for construction of Jess Pirtle Side Streets & Greywood Drive, and design at Sugar Land Middle School/Sugar Mill Relief Line. Drainage 10% Municipal projects total $3,827,000 and include: Design for the Animal Shelter; Fuel Tank/Dispenser Replacement; 3 Tier High Site 10; Roof replacement & Building repairs at Public Works old Buildings; City Hall Annex Foundation Repair; Central Prison Unit Demolition; Temporary Gun Range; and Public Arts Project. Parks projects total $1,200,000 and include: Cullinan Park improvements; and Joint Participation in CIP. 127 Streets projects total $4,162,056 and include: SH6 @ First Colony Intersection Improvements; University Boulevard North Landscape; Wayfinding Signs; Roundabout at First Colony & Soldiers Field Drive; Street Reconstruction for Seventh from Muirwood to Woodlake; Street Reconstruction Country Club from Sugar Creek to Chesterfield; and Pavement Rehabilitation. Traffic projects total $750,000 for Traffic Signal Management/ITS. Wastewater projects total $6,134,000 and include: Wastewater collection system rehabilitation; Lift Station Rehabilitation; Lift Station Assessment; Wastewater Treatment Plant Improvements; Oyster Creek Siphon Replacement; and New Territory/Greatwood Wastewater Plants Rehabilitation. Water projects total $3,989,000 and include: Elevated Storage Tank Rehabilitation; Lakeview & Sugar Creek Groundwater Plant Booster Pump Replacement; Distribution System Water Main Rehabilitation; Ground Storage Tank Rehabilitation Assessment; Ground Storage Tank Rehabilitation @ Lakeview; Water Facilities Condition Assessment; New Territory/Greatwood Ground Water Plants Rehabilitation; and Well Rehabilitation. Funding for the FY18 CIP consists of $8,042,056 in CIP Funding Sources Certificates of Obligation, $4,512,800 in Revenue Bonds, CO's Corporation $2,232,000 from Sugar Land 4B Corporation, $2,175,700 36% 10% in system revenues, and $5,310,000 from other funding sources. Other funding sources include donations from the Cullinan Foundation, Tourism Fund, and CIP fund balances. Interest income is budgeted at $215,000. A number of projects undertaken will have ongoing Revenue Bonds operations and maintenance (O&M) costs when 20% Other Sources 24% completed. Each project that has an O&M impact has System Revenue been identified and the annual cost calculated. The 10% amounts are included in the five-year forecast to measure the impact on the long-range financial capacity of each operating fund. A table identifying projects that have an O&M cost is included after the summary of all capital projects. 128 CITY OF SUGAR LAND CAPITAL PROJECTS FUNDS SUMMARY SCHEDULE OF REVENUES AND EXPENDITURES F General CIP Revenues Bond Proceeds Transfers In Transportation Fees Donations Interest Income Total Revenues $ Expenditures Drainage Municipal Parks Streets Traffic Surface Water Water Wastewater Airport Total CIP Expenditures Issuance Costs Other Non-operating Transfers Out Non-operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Reserved Funds- Transportation Fees Fund Balance - Ending Grants and Development Other Sources Corporations 8,042,056 $ 520,575 647,500 1,000,000 135,000 10,345,131 $ 25,000.00 25,000 2,095,000 1,685,000 1,000,000 3,762,056 750,000 9,292,056 25,000 25,000 100,000 1,193,075 - 1,293,075 - 10,585,131 25,000 Total Utility CIP $ 2,232,000 2,232,000 1,632,000 200,000 400,000 2,232,000 - Airport CIP 6,688,500 80,000 6,768,500 - 115,000 485,000 3,989,000 6,134,500 10,723,500 - 2,210,000 3,827,000 1,200,000 4,162,056 750,000 3,989,000 6,134,500 22,272,556 - 100,000 1,193,075 - - - 2,232,000 Capital Projects $ - 1,293,075 10,723,500 - 23,565,631 (240,000) - - (3,955,000) - (4,195,000) 7,186,860 - - 5,150,000 - 12,336,860 (2,089,570) $ 8,042,056 9,466,075 647,500 1,000,000 215,000 19,370,631 4,857,290 (2,089,570) $ - 129 $ - $ 1,195,000 $ - $ 6,052,290 CITY OF SUGAR LAND SUMMARY OF CAPITAL PROJECTS FISCAL YEAR 2018 Tra Project # Project Name Drainage Projects DR1701 Covington Woods Drainage Improvements - Jess Pirtle Side Streets & Greywood Dr. DR1801 Project Description Design and construction of new reinforced concrete pipe along Sugarfield, Sugardale, and Sugar Mountain Courts to reduce stormwater ponding. Greywood Dr. include storm sewer improvements parallel to the existing storm system to provide additional conveyance. Covington Woods Drainage Improvements - Sugar Design and construction of a new relief storm sewer outfall along the City owned park adjacent to Sugar Land MS/Sugar Mill Relief Line Land Middle School and out falling to Ditch A-22. Project is designed to increase the capacity of the 7th Street storm sewer system. Drainage Total Municipal Projects MU1801 Animal Shelter City Council chose the option of replacement with a larger animal services facility to meet the needs of the proposed increase in population of Sugar Land through annexation, future growth and our animal services policy. The City will move forward with the design and construction of a new Animal Services building located on the property adjacent to the existing Police Department and Courts Building. MU1802 MU1803 Fuel System Upgrades and Compliance 3 Tier High Site 10 Upgrade the existing underground fuel tanks at the Public Works Service Center. The 3 Tier Wireless system was first put into operation in 2012. The systems initial purpose was to provide remote access and control, as part of the City’s Intelligent Traffic System (ITS) initiative for the more than 70 traffic-controlled intersections. The use and scope of the system has increased significantly over time to include SCADA and Public Safety LPR. The new High Site will extend existing service levels for ITS, SCADA and LPR into the newly annexed area of New Territory. MU1804 Roof Replacement and Building Repairs for Public Works Old Buildings MU1805 Roof Replacement and Building Repairs for Public Works Old Buildings City Hall Annex Foundation Repair MU1806 Central Prison Unit Demolition MU1807 Temporary Gun Range MU1808 Public Arts Project Municipal Total Parks Projects PK1704 Cullinan Park Improvements PK1801 Joint Participation in CIP Installation of steel helical piles to underpin and re-align the ground floor concrete slab inside the original portion of the building. The Central Prison Unit property has roughly 99 buildings and various structures on the site that need to be cleared so development can occur. Demolition needs to account for the abatement of asbestos / other environmental concerns and abatement monitoring. Provide a temporary gun range for the police department to utilize until the time comes when the City can build a permanent shooting facility identified in the 2015 Facilities Master Plan Update. Location has been determined to be at the rear of the Sugar Land prison unit. FY18 Public Art Projects, Cultural Arts Division, Economic Development Department. Each year and annual work plan is developed to outline public art projects that achieve the goals of the Public Art Plan (adopted Dec 2016). In accordance with the City Council approved interlocal agreement the Cullinan Park Conservancy will raise $1 Million per year for park improvements. The improvement projects will be based on the Cullinan Park Master Plan. Provide funds for joint participation in CIP projects between the City and Citizen based organizations that benefit the general public. Take advantage of partnership opportunities to enhance and preserve the quality of life for City residents. Parks Total Streets Projects ST1704 Highway 6 at First Colony Intersection Improvements - Design ST1801 University Boulevard North Landscape ST1802 Wayfinding Signs ST1803 ST1804 ST1805 ST1806 Design of geometric ands signal timing improvements to provide for concurrent left turn movements from the Brooks Street and First Colony Boulevard approaches. Landscape and irrigate the right-of-way after completion of the roadway project. Installation of strategic signs at the selected locations on local routes to better direct Pedestrian/Bicycles/drivers to these destinations. Roundabout at First Colony Boulevard and Soldiers Reconfiguration of the intersection of Soldiers Field Drive and First Colony Boulevard. Field Drive Street Reconstruction Seventh From Muirwood to Annual street pavement rehabilitation program as identified by the Pavement Management & Woodlake Maintenance Program (PMMP). The PMMP recommends the reconstruction of Seventh from Muirwood to Woodlake Cir. Street Reconstruction Country Club from Sugar Annual street pavement rehabilitation program as identified by the Pavement Management & Creek to Chesterfield Maintenance Program (PMMP). The PMMP recommends the reconstruction of Country Club Blvd. from Sugar Creek Blvd. to Chesterfield Lane Annual street pavement rehabilitation program as identified by the Pavement Management & Pavement Rehabilitation Maintenance Program (PMMP). This project includes only slab replacement. Larger projects including PER for entire street replacement are included in separate project worksheets. Streets Total 130 Transfers from Operating Funds Water Utilities & Airport Surface Water Funds Fund General Fund $ - $ - $ Bond Proceeds SLDC / SL4B Corp - $ GO / CO - $ Miscellaneous Grants / FB Other Sources Revenue 1,985,000 $ 115,000 110,000 - - - - 2,095,000 115,000 $ Total FY18 CIP Budget - $ - 110,000 - 2,210,000 500,000 500,000 150,000 285,000 285,000 150,000 570,000 200,000 200,000 400,000 300,000 1,400,000 300,000 - 232,000 - - - 1,632,000 1,435,000 485,000 1,400,000 250,000 250,000 25,000 257,000 275,000 3,827,000 1,000,000 1,000,000 200,000 - - - 200,000 200,000 - - 1,000,000 400,000 100,000 300,000 - - - 400,000 2,100,000 1,200,000 400,000 100,000 300,000 100,000 100,000 130,000 130,000 50,000 50,000 3,082,056 3,082,056 3,762,056 131 - - 4,162,056 CITY OF SUGAR LAND SUMMARY OF CAPITAL PROJECTS FISCAL YEAR 2018 Tra Project # Project Name Traffic Projects TR1503 Traffic Signal Management/ITS Project Description Program to fund the Intelligent Transportation System (ITS) Operations Plan, which was updated November 2014 and other projects to advance the City's ITS. Traffic Total Wastewater Projects WW1601 Collection System Rehabilitation Program (Project Continue detailed evaluation and design for system deficiencies identified in the 2009 Citywide Inflow & D and East Interceptor Phase III) Infiltration Study and 2011 Pre-Design Report of areas that experience sanitary sewer overflows (SSOs) during heavy storm events. In addtion, the East Interceptor Phase III will need to be evaluated as recommended in the I&I study. WW1701 Lift Station Rehabilitation Rehabilitation of the lift stations identified by staff routine inspections and annual assessments. FY17 Design - Vista Lakes (106), Ferry Landing (125), Dulles (136), Dulles (137). WW1801 Lift Station Assessment WW1802 Wastewater Treatment Plants Improvements WW1803 Oyster Creek Siphon Improvements WW1804 New Territory Wastewater Plant Rehabilitation Design of the rehabilitation of the lift stations identified by staff routine inspections and annual assessments. The improvements will be site specific and include wet well, pumps, and electrical control panels. Develop a comprehensive lift station evaluation, which includes a condition assessment for each lift station, identifying the necessary capital investment for each lift station, and a recommended program for completing all improvements. Replacement of equipment and improvements to the North and South Wastewater Treatment Plants for key components identified through operations of the plants. Construction of a new 24-inch siphon to replace an abandoned 18-inch siphon that crosses Oyster Creek along HWY 59 (within TxDOT ROW). There is an existing 24-inch siphon segment that is in service but an the adjacent, parallel 18-inch siphon segment was abandoned / grouted due to aged infrastructure. This dual-siphon system is a critical component of the East Interceptor gravity collection system and provides conveyance underneath Oyster Creek and a second siphon is needed to be constructed. Wastewater Total Water Projects WA1701 Elevated Storage Tank Rehabilitation Rehabilitation work includes structural repairs and modifications as needed and blasting and coating of interior and exterior surfaces to the Mason Road EST. WA1703 Lakeview and Sugar Creek GWP Booster Pump Replacement Replace existing booster pumps at the Lakeview and Sugar Creek groundwater plants with new pumps and associated electrical work. WA1801 Distribution System Water Main Rehabilitation Program A waterline replacement analysis was conducted based on maintenance records to prioritize the water line rehabilitation. The biennial projects include design and construction of distribution system water lines to replace aged and high maintenance existing waterlines. Design in one year, construction in the next; ongoing project. WA1802 Ground Storage Tank Rehabilitation Assessment Performing a study (assessment) to determine the rehabilitation needs of all Ground Storage Tanks (GTS's) located in the City. WA1803 Ground Storage Tank Rehab at Lakeview GWP Annual funding for refurbishment of existing ground storage water tanks at a site to be determined and prioritized by scheduled evaluation and assessment. Work includes structural repairs and modifications as needed, blasting and proper removal of old coatings and repainting. WA1804 Water Facilities Condition Assessment WA1805 New Territory/Greatwood Ground Water Plants Rehabilitation To perform an assessment at each of City of Sugar Land’s 12 ground water treatment plants (including 5 from annexation). After an assessment conducted by Public Works Department in 2015, 3 water plants need minor improvements, such as, interconnect lines, motor controls, and SCADA improvements. WA1806 Well Rehabilitation Design and construction of scheduled maintenance of water wells for one of the 17 City water wells. Maintenance of water wells includes pulling of pump from wells and cleaning well screens. Repairs required for the wells and pumps are determined when the wells are pulled. Water Total Grand Total 132 Transfers from Operating Funds Water Utilities & Airport Surface Water Funds Fund General Fund Bond Proceeds SLDC / SL4B Corp GO / CO Miscellaneous Grants / FB Other Sources Revenue Total FY18 CIP Budget 750,000 750,000 - - - - 750,000 1,075,700 - 1,075,700 - - - - - 654,300 1,770,000 1,350,000 1,350,000 400,000 400,000 416,000 416,000 200,000 200,000 268,500 268,500 3,288,800 120,000 100,000 750,000 3,500,000 1,770,000 6,134,500 - 800,000 800,000 700,000 700,000 235,000 235,000 100,000 100,000 400,000 400,000 30,000 150,000 624,000 724,000 880,000 $ - $ 1,100,000 2,175,700 880,000 $ - $ 2,232,000 $ 8,042,056 133 $ 624,000 4,512,800 $ 2,265,000 5,310,000 $ 3,989,000 22,272,556 Water Utility Fund Organizational Chart As of October 1, 2017 City Manager Assistant City Manager Public Works Administration Finance Administration Water Production Water Distribution Wastewater Treatment Wastewater Collection Customer Service Water Quality Water Conservation 134 Treasury Water Utility Fund The City’s water and wastewater utilities are financed and operated in a manner similar to private business enterprises, where costs of providing the services to the public are financed primarily through user charges. Fiscal Year 2017 FY17 total revenues are estimated to be $44,060,099. Surface water fees billed to residents are estimated at $9,463,960. Water and wastewater revenues are projected at $25,104,073. Interest income is projected at $84,658. Bond proceeds are projected at $7,253,879 for new debt. Transfers of $581,107 from connection fees cover FY17 debt service requirements for connection fee projects. Miscellaneous revenues total $1,341,487. Operating expenditures are projected to be $13,448,782, which is 0.54% less than budget. Non-operating expenditures total $32,950,501. Debt service payments total $8,483,103. Operating transfers total $24,047,252 and includes $9,175,553 for CIP, $9,478,156 to the Surface Water Fund for pumpage fees, $3,001,058 to the General Fund for administrative overhead, $185,218 to the Fleet Fund, and $27,185 to the High Tech Fund. Also included in the transfer is $2,180,082 to the Debt Service Fund. This transfer is based on policy direction from City Council to have utility rates support 100% of assumed water/wastewater debt from dissolved MUDs thereby supporting the assumed MUD debt through user fees instead of property taxes. Ending cash equivalent balance at 9/30/17 is estimated to be $4,208,663. The fund is projected to have a 31% operating reserve, above the 25% established by policy. The fund has a required debt service reserve of $6,069,587 at fiscal year-end. Fiscal Year 2018 FY18 total revenues are estimated to be $54,008,586. Total revenues for water and wastewater are budgeted at $33,869,742. There are no rate increases for FY18. Surface water fees are budgeted at $13,407,370 and tap fees at $252,608. Miscellaneous revenues total $1,198,863 and are made up of penalties, connection fees and other charges. Transfers of $581,947 from connection fees cover FY18 debt service requirements for connection fee projects. Operating expenditures total $17,351,536 and includes one-time costs of $232,917 for asset management, and other items. A total of $4,308,970 in recurring expenditures are included the budget due to the annexation of New Territory and Greatwood. These include personnel, repairs & maintenance, building & grounds, electricity, chemicals, merchant/credit card fees, and other miscellaneous items. Non-operating expenditures total $35,977,323. Debt service payments are budgeted at $9,170,655 for existing debt, and new debt on the planned debt issuance of $4.6 million for FY18 CIP projects. Transfers-out total $26,221,216 and includes transfers to the Fleet and High-Tech Replacement Funds, General Fund and Debt Service Fund. Transfer out to the Surface Water Fund for $13,428,411 is based on a pumpage fee of $1.75 per 1,000 gallons for anticipated water use including City parks and right-of-ways. Also included in the transfers out is $2,175,700 for pay-as-you-go capital project funding for the construction of water and wastewater projects. Miscellaneous expenditures include contingency and property and liability premiums. The Utility Fund has a debt service reserve of $5,975,281. The cash equivalents balance on 9/30/18 is estimated at $4,982,699, which is a 28% operating reserve. Financial Analysis Financial ratios are used to analyze the financial position and operating results of the fund. A comparison based on FY17 projections and the FY18 budget is shown below: 135 FY17 Projections 31% 1.62 Cash Reserve Ratio Direct Bond Coverage FY18 Budget 28% 2.01 The targeted minimum cash reserve ratio is 25% of operating expenses. The bond coverage minimum is 2.01 times the average annual debt service requirements. The FY18 cash reserve ratio is budgeted at 28%. Rates will be adjusted annually as necessary to ensure cash reserves and bond coverage requirements are maintained. The financial strength of the utility system is recognized by the rating agencies. Fitch and Standard & Poor’s both assigned an AA+ rating to the outstanding revenue bonds. 136 CITY OF SUGAR LAND ENTERPRISE FUND - WATER UTILITY SYSTEM INCOME STATEMENT FY16 Actuals REVENUES Charges for Services Surface Water Fees Tap Fees Interest Income Other Operating Revenues Bond Proceeds Transfers In - Connection Fees Non-operating Revenues Total Revenues EXPENDITURES Utility Administration Water Distribution Water Production Wastewater Collection Wastewater Treatment Customer Service Water Quality Water Conservation Treasury Total Operating Expenditures Debt Service Payment to Escrow Account Miscellaneous Transfers Out Transfers Out - Surface Water CIP Transfers Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Reserve - Debt Service Fund Balance - Ending Cash Operating Reserve Bond Coverage $ 24,451,999 $ 8,940,162 223,607 75,236 1,371,041 35,062,045 27,746,531 657,584 28,404,115 63,466,160 866,805 1,566,882 1,836,768 681,159 4,337,726 706,225 383,495 142,466 1,286,491 11,808,017 7,861,981 20,847,551 178,197 5,398,667 9,590,493 9,034,550 52,911,439 64,719,456 (1,253,296) 13,870,731 (5,683,744) $ 6,933,691 $ 59% 1.90 FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 26,571,750 $ 10,153,371 129,285 80,000 1,198,116 38,132,522 9,010,782 581,107 9,591,889 47,724,411 25,104,073 $ 9,463,960 230,935 84,658 1,341,486 36,225,112 7,253,879 581,107 7,834,986 44,060,098 33,869,742 $ 13,407,370 252,608 95,000 1,198,863 48,823,583 4,603,056 581,947 5,185,003 54,008,586 909,072 1,744,314 2,250,178 1,042,850 4,641,109 806,736 488,963 293,163 1,345,721 13,522,106 9,023,353 420,146 5,393,543 10,175,268 10,834,100 35,846,410 49,368,516 906,904 1,732,982 2,190,208 1,045,979 4,577,463 808,571 486,727 293,163 1,406,785 13,448,782 8,483,103 420,146 5,393,543 9,478,156 9,175,553 32,950,501 46,399,283 742,351 1,873,576 1,884,371 1,068,192 4,246,507 870,107 527,975 294,941 1,301,629 12,809,649 9,170,655 585,452 6,104,305 13,428,411 6,688,500 35,977,323 48,786,972 129,500 785,002 1,038,493 133,179 1,916,842 59,793 56,361 422,717 4,541,887 4,541,887 871,851 2,658,578 2,922,864 1,201,371 6,163,349 929,900 584,336 294,941 1,724,346 17,351,536 9,170,655 585,452 6,104,305 13,428,411 6,688,500 35,977,323 53,328,859 (1,644,105) 12,617,435 (6,069,587) 4,903,743 $ (2,339,185) 12,617,435 (6,069,587) 4,208,663 $ 5,221,614 10,278,250 (5,975,281) 9,524,583 $ (4,541,887) (4,541,887) $ 679,727 10,278,250 (5,975,281) 4,982,696 36% 1.65 137 31% 1.62 80% 2.62 - $ - 33,869,742 13,407,370 252,608 95,000 1,198,863 48,823,583 4,603,056 581,947 5,185,003 54,008,586 29% 2.06 CITY OF SUGAR LAND ENTERPRISE FUND - WATER UTILITY SYSTEM SUMMARY SCHEDULE OF REVENUES FY16 Actuals OPERATING REVENUES Water Sales Wastewater Charges Charges for Services Total Surface Water Fees Surface Water Fees Total Water Taps Sewer Taps Tap Fees Total Interest Income Interest Income Total Penalties Collection Charges Delinquent Processing Fee Misc. Charges Connection Charges - Water Connection Charges - Wastewater Wastewater Surcharge Property Insurance Recovery Miscellaneous Reimbursements Sale of Property Leased Premises Miscellaneous Total Total Operating Revenues $ $ 9,834,281 $ 14,617,717 24,451,999 8,940,162 8,940,162 187,207 36,400 223,607 75,236 75,236 310,957 4,320 66,800 11,410 421,805 417,367 62,538 17,090 1,573 32,990 24,192 1,371,042 35,062,046 $ FY17 Current Budget 10,699,400 $ 15,872,350 26,571,750 10,153,371 10,153,371 110,160 19,125 129,285 80,000 80,000 305,000 7,200 45,000 7,000 375,000 350,000 60,000 20,000 1,000 3,000 24,916 1,198,116 38,132,522 $ 138 FY17 Projections 10,264,591 $ 14,839,482 25,104,073 9,463,960 9,463,960 197,535 33,400 230,935 84,658 84,658 302,537 4,590 63,583 10,527 434,777 432,135 39,725 4,845 3,939 19,913 24,916 1,341,487 36,225,113 $ FY18 Base Budget FY18 Changes 13,923,363 $ 19,946,379 33,869,742 13,407,370 13,407,370 203,108 49,500 252,608 95,000 95,000 305,000 7,200 45,000 7,000 375,000 350,000 60,000 20,000 1,000 3,000 25,663 1,198,863 48,823,582 $ - FY18 Budget - $ 13,923,363 19,946,379 33,869,742 13,407,370 13,407,370 203,108 49,500 252,608 95,000 95,000 305,000 7,200 45,000 7,000 375,000 350,000 60,000 20,000 1,000 3,000 25,663 1,198,863 $ 48,823,582 Water Utilities Mission Statement The Water Utilities Department takes pride in maintaining a tradition of producing ample superior quality water, vigilantly maintaining water and wastewater infrastructure, and providing responsive and efficient customer‐oriented service in a cost‐effective and innovative manner emphasizing responsible environmental stewardship and compliance with all regulatory requirements. Services Provided The Utilities Department is responsible for the long-range planning, administration and operation of the City's water and wastewater systems including regulatory compliance for all mandated EPA and TCEQ programs. Programs of Service Utilities Administration sets departmental goals and strategies, provides organizational direction and control to accomplish those goals and manages long range planning to ensure there is adequate system capacity for growth. The Water Distribution program is responsible for insuring that water produced is delivered to meet customer expectations including maintaining and repairing water lines, meters and fire hydrants. Water Production is responsible for producing, treating and supplying quality water that complies with all federal and state water quality standards and with sufficient water pressure to meet customer needs and fire flow requirements in an emergency. Wastewater Collection operates, maintains, and repairs sanitary sewer collection lines and manholes to meet or exceed all state and federal guidelines. The Wastewater Treatment program is responsible for transporting and treating wastewater to a quality that meets federal and state water quality standards, and operating, maintaining and repairing sanitary sewer lift stations and wastewater treatment plants. The Customer Service program responds to all requests for service 24 hours a day 7 days a week and reads all water meters monthly. The Water Quality program monitors the safety and quality of drinking water through water testing and compliance monitoring and handles backflow prevention, grease trap inspections, and the mandated wastewater industrial pretreatment programs. The Water Conservation program is responsible for water education, conservation and communication and is managed through the Public Works Department Environmental Services Division. The Treasury program, managed through the Finance Department, provides centralized collection of City funds for utility and other billings, as well as daily receipts from other operating departments and receipts from outside payments including property tax payments received from Fort Bend County. Treasury also bills for utilities, alarms, airport rentals, and other miscellaneous receivables for all city departments. FY18 Budget Requests A total of $4,308,970 in recurring expenditures are included in Water Utilities FY18 budget, which includes Repair & Maintenance, chemicals, an increase in electricity, two new Treasury Specialists, and other miscellaneous items. One time expenditures total $232,917 for Asset Management, TCEQ for Chloramine, a Temporary Hire, and other miscellaneous items. Performance Measures: Well Planned Community The City Council measure for “Adequate infrastructure and services to support growth and to sustain our existing community” is recommendations from Utilities master plans included and funded in the five-year CIP. 139 Water Utilities Performance Measures: Well Planned Community Capacity to Permitted Capacity Comparison 80% 66% 62% 63% 60% 40% 26% 31% 30% The ratios of average daily supply capacity and flow capacity are also measures of adequate infrastructure. 20% 0% FY16 Estimate FY17 Estimate Water FY18 Estimate Wastewater Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 Current FY17 FY18 Base FY18 FY18 Actuals Budget Projections Budget Changes Budget $ 3,954,478 $ 4,222,971 $ 4,222,971 $ 5,139,850 $ 149,337 $ 5,289,187 714,557 850,385 830,248 898,010 519,929 1,417,939 3,173,517 3,610,268 3,496,017 2,458,734 1,594,194 4,052,928 3,430,122 3,777,636 3,777,636 3,782,766 1,872,987 5,655,753 499,855 547,195 608,259 530,289 381,740 912,029 35,487 513,651 513,651 23,700 23,700 $ 11,808,015 $ 13,522,106 $ 13,448,782 $ 12,809,649 $ 4,541,887 $ 17,351,536 Summary by Type Utility Administration Water Distribution Water Production Wastewater Collection Wastewater Treatment Customer Service Water Quality Water Conservation Treasury Category Totals FY16 FY17 Current FY17 FY18 Base FY18 FY18 Actuals Budget Projections Budget Changes Budget $ 866,805 $ 909,072 $ 906,904 $ 742,351 $ 129,500 $ 871,851 1,566,882 1,744,314 1,732,982 1,873,576 785,002 2,658,578 1,836,768 2,250,178 2,190,208 1,884,371 1,038,493 2,922,864 681,159 1,042,850 1,045,979 1,068,192 133,179 1,201,371 4,337,726 4,641,109 4,577,463 4,246,507 1,916,842 6,163,349 706,225 806,736 808,571 870,107 59,793 929,900 383,495 488,963 486,727 527,975 56,361 584,336 142,466 293,163 293,163 294,941 294,941 1,286,491 1,345,721 1,406,785 1,301,629 422,717 1,724,346 $ 11,808,015 $ 13,522,106 $ 13,448,782 $ 12,809,649 $ 4,541,887 $ 17,351,536 FTE Count Utility Administration Water Distribution Water Production Wastewater Collection Wastewater Treatment Customer Service Water Quality Water Conservation Treasury Category Totals FY16 Actuals 5.00 11.00 5.50 6.50 5.50 9.00 4.50 1.00 11.00 59.00 FY17 FY17 Budget Adjustments 5.00 0.50 10.00 3.50 4.50 3.00 8.00 2.50 6.00 2.00 9.00 2.00 4.50 1.00 1.00 11.00 59.00 14.50 140 FY18 Base Budget 5.50 13.50 7.50 10.50 8.00 11.00 5.50 1.00 11.00 73.50 FY18 Changes 2.00 2.00 FY18 Budget 5.50 13.50 7.50 10.50 8.00 11.00 5.50 1.00 13.00 75.50 ENTERPRISE - UTILITY WATERWORKS AND SEWER SYSTEM TOTAL DEBT SERVICE OUTSTANDING* Due During FY Ending September 30 Principal Interest Total FY18 $ 5,670,154 $ 3,100,955 $ FY19 5,046,963 2,915,114 FY20 5,208,032 2,745,986 FY21 5,078,344 2,579,014 FY22 5,268,221 2,401,780 FY23 5,144,577 2,204,002 FY24 5,372,537 1,987,522 FY25 5,599,580 1,785,621 FY26 5,842,421 1,548,654 FY27 5,738,288 1,299,109 FY28 5,980,986 1,069,020 FY29 5,216,640 837,307 FY30 4,275,000 642,625 FY31 4,190,000 504,775 FY32 2,610,000 363,482 FY33 2,705,000 268,507 FY34 1,685,000 169,819 FY35 1,740,000 111,332 FY36 915,000 50,925 FY37 475,000 16,625 TOTAL $ 83,761,743 $ 26,602,170 $ * Does not include anticipated issuance of new debt. 8,771,109 7,962,077 7,954,018 7,657,358 7,670,001 7,348,579 7,360,059 7,385,201 7,391,075 7,037,397 7,050,006 6,053,947 4,917,625 4,694,775 2,973,482 2,973,507 1,854,819 1,851,332 965,925 491,625 110,363,913 Total principal outstanding is comprised of nine issues and all current debt matures by FY36. Amount Outstanding Series Series 2008 Series 2009 Refunding 2009 Series 2012 Series 2012A Series 2013 Series 2015 Refunding 2016 Series 2017 Total $ $ 600,954 784,200 655,000 17,795,000 5,810,000 13,285,000 14,390,000 23,516,589 6,925,000 83,761,743 Millions Debt Service Schedule $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $- FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 Principal Interest 141 Maturity FY18 FY18 FY18 FY31 FY30 FY33 FY35 FY36 FY37 Surface Water Fund Organizational Chart As of October 1, 2017 City Manager Assistant City Manager Public Works Administration Surface Water 142 Surface Water Fund The Surface Water Fund accounts for all operating activities related to the City’s required conversion to surface water, which is funded through a fee per 1,000 gallons of water produced. Customers outside the City limits pay a 20% outof-City service charge over the monthly fees; service charges from New Territory, Greatwood, and Tara Plantation are credited to the debt reduction funds based on Strategic Partnership Agreements (SPAs). In December 2017, New Territory and Greatwood will be annexed. Therefore, this fund will see higher transfers in from the Utility Fund and lower GRP fees starting in FY18. Fiscal Year 2017 Total surface water revenues are estimated at $27,517,773. The GRP fee remained at $1.75 per 1,000 gallons of water. GRP participants who are not City water customers are anticipated to contribute $4,423,025. The out-of-city service charge of $38,260 is a 20% premium on the GRP for participants outside the city limits. GRP fees from City customers are based on production of 6.2 billion gallons of water; GRP fees from non-City customers are based on 2.5 billion gallons of water. Interest income is estimated at $64,754. The transfers in for $9,478,156 represent pumpage fees for City customers, which are collected in the Water Utility Fund and transferred to the Surface Water Fund monthly. Bond proceeds for $13.47 million will be used to fund the FY17 CIP projects. Total operating expenses are $5,865,604 and include $1,058,249 for personnel expenses, $3,445,581 for operations and maintenance, and $1,361,774 for raw water cost. Debt service payments total $7,461,139. Transfers Out for $13,975,866 includes a transfer to CIP for $13,325,000, $632,569 to the General Fund for administrative overhead reimbursements, $7,470 to the Fleet Fund, and $10,827 to the Hi-Tech Fund. Ending cash equivalents at 9/30/17 is estimated to be $10,325,599, which is above the 50% general purpose reserve requirement of $7,189,472. Fiscal Year 2018 Total surface water revenues are estimated at $15,171,214. The GRP fee will remain at $1.75 per 1,000 gallons of water. GRP participants who are not City water customers are anticipated to contribute $1,102,242. The out-of-city service charge of $49,986 is a 20% premium on the GRP for participants outside the city limits. GRP fees from City customers are based on production of 7.6 billion gallons of water; GRP fees from non-City customers are based on 619 million gallons of water. The transfers in for $13,428,411 represent pumpage fees for City customers, which are collected in the Water Utility Fund and transferred to the Surface Water Fund monthly. Interest income is estimated at $70,000. Inter-fund loan repayment is $520,575 is the first payment including interest from General CIP for $1,000,000, which was loan to General CIP for the purchase of the central prison unit. A transfer from SLDC to General CIP supports this transfer to the Surface Water Fund. Total operating expenses are $5,872,449 and include $1,061,997 for personnel expenses, $3,244,092 for operations and maintenance, and $1,566,360 for raw water cost. Debt service payments total $8,077,122. The fund has budgeted transfers of $620,890. This includes $599,214 being transferred to the General Fund for administrative overhead reimbursements, $8,100 to the Fleet Fund, and $13,576 to the Hi-Tech Fund. Ending cash equivalents at 9/30/18 is estimated to be $10,518,924, which is above the 50% general purpose reserve requirement of $7,488,944. 143 CITY OF SUGAR LAND ENTERPRISE FUND - SURFACE WATER INCOME STATEMENT REVENUES GRP Fees Out of City Service Charge Interest Income Operating Revenues Bond Proceeds Inter-Fund Loan Repayment Transfer In - Utilities Non-operating Revenues Total Revenues EXPENDITURES Personnel Services Operations & Maintenance Raw Water Total Operating Expenditures Capital Projects Debt Service Payment to Escrow Account Miscellaneous Transfers Out Contingency Total Non-Operating Expenditures Total Expenditures $ FY16 Actuals FY17 Current Budget 4,263,902 $ 33,857 76,595 4,395,143 11,214,074 9,590,493 20,804,567 25,199,710 4,312,113 $ 49,986 70,000 4,432,099 13,466,091 10,175,268 23,641,359 28,073,458 4,423,025 $ 38,260 64,754 4,573,526 13,466,091 9,478,156 22,944,247 27,517,773 1,102,242 $ 49,986 70,000 1,222,228 520,575 13,428,411 13,948,986 15,171,214 - $ - 1,102,242 49,986 70,000 1,222,228 520,575 13,428,411 13,948,986 15,171,214 970,892 2,715,190 1,307,276 4,993,358 1,635,400 6,997,989 9,578,735 74,535 2,308,800 20,595,459 25,588,817 1,058,249 3,592,749 1,361,774 6,012,772 8,553,520 72,566 13,975,866 319,617 22,921,569 28,934,341 1,058,249 3,445,581 1,361,774 5,865,604 7,461,139 81,715 13,975,866 319,617 21,838,337 27,703,941 1,061,997 3,244,092 1,566,360 5,872,449 8,077,122 84,222 620,890 323,206 9,105,440 14,977,889 - 1,061,997 3,244,092 1,566,360 5,872,449 8,077,122 84,222 620,890 323,206 9,105,440 14,977,889 (860,883) 10,511,767 9,650,884 $ (186,168) 10,511,767 10,325,599 $ 193,325 10,325,599 10,518,924 $ - $ 193,325 10,325,599 10,518,924 1.75 $ 7,804,671 $ 1,846,213 1.75 $ 7,189,472 $ 3,136,126 $ $ 1.75 7,488,944 3,029,979 Revenues Over/(Under) Expenditures Fund Balance - Beginning Inter-Fund Loans Fund Balance - Ending (389,107) 13,900,874 (3,000,000) $ 10,511,767 $ GRP Fee per 1,000 Gallons FB Rec'd - 50% of Total Exp Over/Under Policy $ $ 1.75 $ 7,187,341 $ 3,324,426 FY17 Projections 144 FY18 Base Budget 1.75 7,488,944 3,029,979 FY18 Changes FY18 Budget ENTERPRISE - SURFACE WATER FUND WATERWORKS AND SEWER SYSTEM TOTAL DEBT SERVICE OUTSTANDING Due During FY Ending September 30 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 TOTAL Principal $ 3,199,846 $ 3,278,037 3,411,968 3,551,656 3,706,779 3,885,423 4,067,463 4,250,420 4,432,579 4,631,712 4,824,014 4,848,360 4,290,000 4,475,000 4,675,000 4,895,000 5,120,000 5,370,000 5,620,000 5,775,000 5,145,000 5,410,000 5,690,000 5,980,000 $ 110,533,257 $ Interest Total 4,876,277 $ 8,076,123 4,762,843 8,040,880 4,647,896 8,059,864 4,525,311 8,076,967 4,385,214 8,091,993 4,229,392 8,114,815 4,059,222 8,126,685 3,881,398 8,131,818 3,695,578 8,128,157 3,487,048 8,118,760 3,279,518 8,103,532 3,072,437 7,920,797 2,851,807 7,141,807 2,658,269 7,133,269 2,464,238 7,139,238 2,250,188 7,145,188 2,015,913 7,135,913 1,769,382 7,139,382 1,516,638 7,136,638 1,258,306 7,033,306 982,625 6,127,625 718,750 6,128,750 441,250 6,131,250 149,500 6,129,500 67,978,996 $ 178,512,253 Series Outstanding Series 2008 $ 94,046 Series 2009 530,800 Series 2011 87,500,000 Series 2016 Refunding 7,978,411 Series 2016 1,575,000 Series 2017 12,855,000 Total $ 110,533,257 Millions Debt Service Schedule $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 FY18FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35FY36FY37FY38FY39FY40FY41 Principal Interest 145 Maturity FY18 FY18 FY41 FY29 FY36 FY41 Surface Water Mission Statement The Utilities Department takes pride in providing a safe, dependable and effective public utility infrastructure, rendering a diverse group of services to the citizenry in a responsive, efficient and cost effective manner with a customer oriented approach that reflects the City’s tradition of excellence. Services Provided Surface Water is responsible for all operating and capital improvement activities related to the City’s required conversion to surface water, which is funded through a fee per 1,000 gallons of water produced. Those outside the City limits pay an out-of-City service charge over the monthly fees; service charges from New Territory, Greatwood, and Tara Plantation are credited to the debt reduction funds based on Strategic Partnership Agreements (SPAs). Programs of Service Surface Water is responsible for all planning and implementation of the City’s reduction in ground water use. Based on the mandated surface water conversion, the program is also responsible for coordinating the identification, pursuit, acquisition and implementation of alternatives to groundwater sources, including but not limited to surface water, effluent reuse, conservation, and direct reuse projects. FY18 Budget Requests There were no budget requests for FY18. Performance Measures: Well Planned Community The City Council measure for “Adequate infrastructure and services to support growth and to sustain our existing community” is recommendations from Utilities master plans included and funded in the five-year CIP. Utilities CIP Projects from Master Plans 100% 80% 60% 40% 20% 0% FY16 Estimate FY17 Estimate 146 FY18 Estimate Surface Water Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FTE Count Surface Water FTE Count Totals FY16 FY17 Current FY17 FY18 Base FY18 Actuals Budget Projections Budget Changes $ 970,892 $ 1,058,249 $ 1,058,249 $ 1,061,997 $ 1,385,181 1,589,628 1,587,860 1,596,374 2,079,191 2,569,393 2,423,993 2,586,789 432,416 421,988 421,988 421,988 125,679 371,258 371,258 205,301 2,256 2,256 $ 4,993,358 $ 6,012,772 $ 5,865,604 $ 5,872,449 $ FY16 Budget 12.50 12.50 FY17 FY17 FY18 Budget Adjustments Base Budget 12.50 (0.50) 12.00 12.50 (0.50) 12.00 147 FY18 Budget - $ 1,061,997 1,596,374 2,586,789 421,988 205,301 - $ 5,872,449 FY18 Changes - FY18 Budget 12.00 12.00 Airport Fund Organizational Chart As of October 1, 2017 City Manager First Assistant City Manager Airport Administration Cafe Select FBO Services Airfield Operations 148 U.S. Customs Maintenance & Operations Airport Fund Sugar Land Regional Airport, which is owned and operated by the City, is a self-supporting enterprise funded by user charges. The Airport is home to several aircraft and expects to sell an average of 250,272 gallons of fuel per month during FY18. The City serves as a fixed based operator by providing fuel and general aviation customer services. Fiscal Year 2017 Total revenues for FY17 are projected to be $15,982,359. Projected operating revenues total $13,477,679, which includes $10,973,660 in fuel sales, $1,498,459 in hangar leases, $22,000 in interest income and $983,560 in miscellaneous revenues from rental cars, ramp fees and other fees. Non-operating revenues are projected to total $2,504,680 and consist of transfers in, bond proceeds and grants. Total expenses for FY17 are projected to be $15,954,028. Operating expenses, which include Administration, FBO Services, Airfield Operations, Café Select, US Customs and Maintenance programs, are projected to be $11,315,752. Non-operating expenses are projected to total $4,638,276 and include transfers for capital projects, administrative overhead, and debt service payments. Transfer to the Airport CIP includes $2,231,565 for construction of a maintenance building. Ending cash equivalent balance at 9/30/17 is projected to be $4,880,276; which is $294,957 higher than the budgeted ending balance of $4,585,319. Fiscal Year 2018 Total operating revenues for FY18 are budgeted at $14,600,589. Revenues from fuel sales are budgeted at $12,036,779, a 9.7% increase over FY17 projections due to an increase in fuel prices. Gallons sold are estimated to decrease by 2.8% lower than FY17 projections due to the FY17 Super Bowl activity. Non-operating revenues in FY18 are budgeted at $313,010, which includes grant proceeds of $50,000 and operating transfers in of $263,010. The transfers from the General Fund and Debt Service Fund are equal to the estimated property taxes collected on taxable value at the airport. The transfer from the Sugar Land Development Corporation is for international marketing efforts. Total operating expenses are budgeted at $12,561,120, which include the Administrative, Airfield Operations, FBO Services, Café Select, US Customs and Maintenance programs. Expenses are increasing by $448,250 over the base budget largely due to capital items and recurring additions. There are no personnel additions in FY18 budget. Recurring additions include $7,500 for terminal camera repairs and maintenance and $750 for mini excavator yearly maintenance. One-time additions for $440,000 include Air Traffic Control Tower (ATCT) roof repair, a mini excavator, furnish Airport maintenance building, terminal renovations, preserving 97 mature heritage oak trees, and U.S customs facility renovation. Total non-operating expenses are estimated at $2,387,995, which includes overhead reimbursement to the General Fund and debt service payments on outstanding Airport bonds. Ending cash equivalent balance at 9/30/18 is expected to be $4,488,970. Financial Analysis As the Airport is intended to be financially independent and self-supporting, financial ratios are used to analyze financial position and operating results. A comparison based on FY17 projections and FY18 budget amounts is shown below. 149 Projections FY17 103% 2.15 Cash Reserve Ratio Direct Bond Coverage Budget FY18 83% 1.33 Cash reserve ratios for both FY17 projections and FY18 are above the targeted minimum of 25% of expenses net of fuel for resale. The bond coverage ratio is above the target of 1.25 for both FY17 projections and FY18. The graph below shows gallons of fuel sold. Projected total gallons of fuel sold in FY17 are 3.09 million gallons and FY18 forecast is based on current trends excluding February Super Bowl activity. The aviation community has recognized Sugar Land as a great place to land and base their aircraft, not only for the convenience as a gateway to the greater Houston area, but also for the highest level of customer service. Airport Fuel Sales MG 3.15 3.10 3.05 3.00 2.95 2.90 2.85 2.80 2.75 2.70 2.65 3.09 3.02 3.00 2.97 2.87 2.85 2012 Actual 2.82 2013 Actual 2014 Actual 2015 Actual 150 2016 Actual 2017 Projected 2018 Forecast CITY OF SUGAR LAND ENTERPRISE FUND - AIRPORT INCOME STATEMENT FY16 Actuals REVENUES Fuel Sales Hangar Leases Miscellaneous Revenues Interest Income Operating Revenues Transfers In Grant Proceeds Bond Proceeds Non-operating Revenues Total Revenues EXPENDITURES Airport Administration Airfield Operations FBO Services Café Select Customs Maintenance and Operations Total Operating Expenditures Debt Service Miscellaneous Operating Transfers Out Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Debt Service Reserve Fund Balance - Ending FY17 Current Budget FY17 Projections $ 9,628,902 $ 13,014,971 $ 1,334,201 1,362,200 875,538 896,560 18,770 12,000 11,857,411 15,285,731 155,733 254,680 57,371 50,000 3,520,668 2,200,000 5,733,771 2,504,680 17,591,182 17,790,411 889,643 263,177 6,556,285 232,728 198,779 821,172 8,961,784 1,099,632 95,284 4,574,280 9,382,237 18,344,021 (752,839) 6,264,550 (702,546) $ 4,809,165 $ 1,189,073 400,436 10,208,725 268,875 209,898 1,161,754 13,438,761 1,211,143 230,223 3,176,910 4,618,276 18,057,037 (266,626) 5,511,711 (659,766) 4,585,319 $ 151 FY18 Base Budget 10,973,660 $ 1,498,459 983,560 22,000 13,477,679 254,680 50,000 2,200,000 2,504,680 15,982,359 12,036,779 $ 1,388,200 847,600 15,000 14,287,579 263,010 50,000 313,010 14,600,589 1,194,563 396,436 8,091,226 261,875 209,898 1,161,754 11,315,752 1,211,143 218,658 3,208,475 4,638,276 15,954,028 1,022,251 297,629 9,323,703 261,448 209,898 997,941 12,112,870 1,262,514 151,557 973,924 2,387,995 14,500,865 28,331 5,511,711 (659,766) 4,880,276 $ 99,724 5,540,042 (702,546) 4,937,220 $ FY18 Changes FY18 Budget - $ 12,036,779 1,388,200 847,600 15,000 14,287,579 263,010 50,000 313,010 14,600,589 42,500 50,000 355,750 448,250 448,250 1,022,251 340,129 9,323,703 261,448 259,898 1,353,691 12,561,120 1,262,514 151,557 973,924 2,387,995 14,949,115 (448,250) (448,250) $ (348,526) 5,540,042 (702,546) 4,488,970 CITY OF SUGAR LAND AIRPORT SUMMARY OF REVENUES FY16 Actuals REVENUES: Aviation Fuel Sales Fuel Sales Short Term Land Lease Long Term Land Lease Corporate Hangar (I) Lease Corporate Hangar (II) Lease Northwest (I) Hangar Lease Northwest (II) Hangar Lease Leased Premises Tie Downs T - Hangar Rental Hangar Leases Café Revenue Parking Revenues Rental Cars Ramp Fees Gift Shop Jet Fuel Additive - Prist Reimbursements Catering Commission Royalties - Mineral Call Out Fees Aircraft Maintenance Miscellaneous Miscellaneous Revenues Interest Interest Income From General Fund From SLDC From Debt Service Transfers In State Funds Federal Funds Grant Proceeds Bond Proceeds Bond Proceeds Total From Surface Water Fund Inter-Fund Loan & Reimbursement Total Revenues FY17 Current Budget $ FY17 Projections FY18 Base Budget 9,628,902 $ 13,014,971 $ 10,973,660 $ 12,036,779 $ 9,628,902 13,014,971 10,973,660 12,036,779 43,080 44,000 35,400 35,000 120,380 122,000 155,000 155,000 160,929 171,000 191,059 190,000 80,699 88,000 110,000 110,000 42,924 44,000 84,000 84,000 30,000 41,000 23,000 23,000 46,093 47,000 40,800 40,000 7,200 7,200 7,200 7,200 802,896 798,000 852,000 744,000 1,334,201 1,362,200 1,498,459 1,388,200 82,612 88,000 79,000 77,000 1,083 1,000 1,000 1,000 354,476 440,000 351,000 360,000 193,160 230,000 338,000 210,000 349 360 360 400 23,179 26,000 15,000 461 5,321 4,800 4,800 4,000 146 6,200 5,000 5,000 6,000 2,878 1,400 1,400 1,200 205,671 100,000 188,000 188,000 875,538 896,560 983,560 847,600 18,770 12,000 22,000 15,000 18,770 12,000 22,000 15,000 57,011 109,380 109,380 121,590 50,000 50,000 50,000 50,000 48,722 95,300 95,300 91,420 155,733 254,680 254,680 263,010 50,000 50,000 50,000 50,000 7,371 57,371 50,000 50,000 50,000 3,520,668 2,200,000 2,200,000 3,520,668 2,200,000 2,200,000 2,000,000 2,000,000 $ 17,591,182 $ 17,790,411 $ 15,982,359 $ 14,600,589 $ 152 FY18 Changes FY18 Budget - $ 12,036,779 12,036,779 35,000 155,000 190,000 110,000 84,000 23,000 40,000 7,200 744,000 1,388,200 77,000 1,000 360,000 210,000 400 4,000 6,000 1,200 188,000 847,600 15,000 15,000 121,590 50,000 91,420 263,010 50,000 50,000 $ 14,600,589 Airport Mission Statement The mission of Sugar Land Regional Airport is to be the safest, best planned, and most recognized premier reliever airport within the Houston Metropolitan area. This is accomplished through a thoughtful marketing plan that communicates the airport is an upscale destination, providing a lasting impression through superior services, containing a multitude of facilities and state of the art technology, while proving itself to be both a valued neighbor and financially successful. Services Provided The Sugar Land Regional Airport is a first class corporate aviation enterprise servicing private, corporate, and international clients. While servicing new markets worldwide, customers travel from every corner of the globe to do business in Sugar Land, and the surrounding region. The Fixed Based Operator (FBO), also known as GlobalSelect, provides concierge services to cater to the needs of pilots and passengers alike. The combination of award winning facilities, U.S. Customs services, a general aviation center, and multiyear designation as a top rated FBO in the Americas, ensures that the Airport will continue as a leader among its competition and peers. Programs of Service Airport Administration is responsible for the overall management, planning, marketing and outreach efforts of the airport along with contract administration and CIP project completion. Lease management of airport property is also fulfilled by this program. Airfield Operations is responsible for assessing and coordinating all airport activities to ensure Sugar Land Regional Airport is in compliance with all Federal, State and Local Regulations. Acting as the Fixed Base Operator (FBO) under the name “GlobalSelect,” staff provides line services including aircraft refueling and marshalling services. Customer service is provided to handle customer invoices and customer requests for hotel reservations, food, rental car requests, and catering orders. US Customs provides passenger and luggage inspection for international arrivals, and oversees the FBO in handling and the disposal of international garbage to maintain federal compliances. Maintenance & Operations oversees building, ground, and custodial maintenance of airport facilities. Café Select provides first-class customer service and amenities to the airport’s customers by providing food and beverages. FY18 Requests A total of $8,250 in recurring additions is added to Airport’s FY18 budget. This includes repair & maintenance for cameras and maintenance of a mini excavator. In addition, a total of $440,000 in one-time expenditures for Air Traffic Control Tower (ATCT) roof repair, a mini excavator, furnish Airport maintenance building, terminal renovations, preserving 97 mature heritage oak trees, and U.S customs facility renovation. Performance Measures: Strong Local Economy Takeoffs & Landings 84,000 82,000 80,000 78,000 76,000 74,000 72,000 70,000 68,000 Fuel Gallons Sold (in Millions) 3.20 81,641 3.10 3.10 79,264 3.00 3.00 2.90 73,582 2.82 2.80 2.70 2.60 FY16 Actuals FY17 Projection FY18 Est. FY16 Actuals A key airport measure of activity is take-offs and landings, or operations. As the number of operations increase, additional demands are placed on FBO staff to provide service to customers. FY17 Projections FY18 Est. The airport is self-supporting, bringing in most of its revenue from sales of aviation fuel. The number of gallons sold is tracked monthly to identify trends. Annual Fuel Gallons Sold is a good indicator of growth in activity levels at the airport. 153 Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 2,394,842 $ 3,005,086 $ 3,005,086 $ 3,148,147 $ - $ 3,148,147 5,169,532 8,382,131 6,315,763 7,488,730 75,000 7,563,730 717,382 875,939 876,665 688,675 72,000 760,675 270,635 466,306 466,306 394,464 217,500 611,964 260,366 399,813 350,446 342,854 342,854 149,027 309,486 301,486 50,000 83,750 133,750 $ 8,961,784 $ 13,438,761 $ 11,315,752 $ 12,112,870 $ 448,250 $ 12,561,120 Summary by Type Airport Administration Airfield Operations FBO Services Café Select Customs Maintenance and Operations Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 889,643 $ 1,189,073 $ 1,194,563 $ 1,022,251 $ - $ 1,022,251 263,177 400,436 396,436 297,629 42,500 340,129 6,556,285 10,208,725 8,091,226 9,323,703 9,323,703 232,728 268,875 261,875 261,448 261,448 198,779 209,898 209,898 209,898 50,000 259,898 821,172 1,161,754 1,161,754 997,941 355,750 1,353,691 $ 8,961,784 $ 13,438,761 $ 11,315,752 $ 12,112,870 $ 448,250 $ 12,561,120 FTE Count Airport Administration Airfield Operations FBO Services Café Select Maintenance and Operations Category Totals FY16 Budget 6.00 3.00 23.50 2.50 9.00 44.00 FY17 Budget 7.00 3.00 22.50 3.00 10.50 46.00 154 FY17 FY18 Adjustments Base Budget 7.00 3.00 22.50 3.00 10.50 46.00 FY18 Changes - FY18 Budget 7.00 3.00 22.50 3.00 10.50 46.00 ENTERPRISE FUND - AIRPORT GENERAL OBLIGATION AND CERTIFICATES OF OBLIGATION TOTAL DEBT SERVICE OUTSTANDING * Fiscal Year Principal 2018 $ 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 837,559 860,000 890,000 935,000 970,000 1,000,000 1,035,000 1,075,000 510,000 535,000 560,000 260,000 250,000 255,000 Interest $ 424,955 398,623 368,036 331,279 294,217 255,673 212,073 166,748 131,601 106,939 81,611 63,814 54,223 45,193 $ Total Series 1,262,514 1,258,623 1,258,036 1,266,279 1,264,217 1,255,673 1,247,073 1,241,748 641,601 641,939 641,611 323,814 304,223 300,193 2012A 2013 2015 2015 2016 2016 2017 TOTAL 2032 265,000 36,469 301,469 2033 265,000 28,103 293,103 2034 240,000 20,219 260,219 2035 2036 2037 TOTAL Outstanding $ 4,190,000 610,000 1,555,000 2,615,000 27,559 225,000 2,055,000 11,277,559 $ 250,000 12,728 262,728 140,000 6,719 146,719 145,000 2,266 147,266 $ 11,277,559 $ 3,041,488 $ 14,319,047 * Does not include anticipated issuance of new debt Outstanding Combination Tax & Revenues Certificates of Obligation $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Interest Principal 155 2033 2032 2031 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 $0 Maturity 2025 2033 2035 2028 2018 2029 2037 Solid Waste Fund Organizational Chart As of October 1, 2017 City Manager Assistant City Manager Environmental & Neighborhood Services Solid Waste 156 Solid Waste Fund The Solid Waste Enterprise Fund is used to account for residential solid waste removal. This fund is primarily supported through user charges. Republic Services will provide solid waste services in the City including New Territory after the Annexation, while solid waste services in Greatwood will continue to be provided by Best Trash. Current year rate for residential solid waste removal is $18.00 per household per month. Beginning January 1, 2018, a 2.5% CPI adjustment will result in a new monthly rate of $18.45. Residents receive automated garbage collection twice per week, automated recycling collection once per week, bulky waste collection once per month and an on-call collection service. A green waste program ensures grass clippings, leaves, brush, and tree limbs are recycled into mulch or compost instead of being sent to a landfill. Fiscal Year 2017 Total revenues for FY17 are projected to be $6,563,741 and include $5,581,210 from collection and recycling fees, $595,531 from franchise fees, $7,400 in commercial license fees, $333,700 in miscellaneous revenues, $1,500 from recycling programs and $200 in interest income. Transfers from Debt Reduction Funds to support the Annexation related costs are projected to be $44,200. There were no anticipated grant revenues received for recycling programs. Total expenses are projected to be $6,617,158, which includes personnel, contracted services, and general operating costs. Personnel expenses total $210,775 for contract monitoring and program administration. The estimated annual cost for solid waste and curbside recycling programs contracted with Republic Services is $5,459,761. General operations & maintenance costs are projected to be $454,915, which includes $332,000 to remediate environmental issues that occurred during the year, an additional $10,000 for the legal opinion for solid waste services in the annexation areas, $4,830 for the lake maintenance contract, and $70,170 in contingency. The Solid Waste Fund transfer of $421,537 is to the Fleet Replacement Fund, and the CIP fund for Capital Project funding. The estimated ending cash equivalents balance at 9/30/2017 is projected to be $394,401. Fiscal Year 2018 Total revenues for FY18 are budgeted at $8,013,769. Total budgeted revenue from residential collection and recycling fees is $7,356,164. The City does not bill for Commercial Services; businesses contract and pay Republic directly. Other revenues include $646,805 from franchise fees, $7,400 in commercial license fees, $1,700 in miscellaneous revenues, $1,500 from recycling programs, and $200 in interest income. Total expenses are $8,044,980 and include $278,987 in personnel expenses for contract monitoring and program administration, $7,181,663 for the solid waste contracts, $14,557 for the education program, $82,918 in operation and maintenance costs, and $75,000 in contingency. Transfers out total $411,855 and include transfers to the Fleet Replacement Fund and the General Fund. The transfer to the General Fund includes $300,000 to support increased pavement rehabilitation efforts in Public Works. The estimated ending cash equivalents balance as of 9/30/2018 is estimated to be $363,190. 157 CITY OF SUGAR LAND ENTERPRISE FUND - SOLID WASTE INCOME STATEMENT FY16 Actuals FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget REVENUES Solid Waste Collections $ 5,346,652 $ 5,604,032 $ 5,581,210 $ 5,788,822 $ 1,567,342 $ 7,356,164 Franchise Fees 595,081 596,647 595,531 606,828 39,977 646,805 Commercial SW License 8,000 7,400 7,400 7,400 7,400 Miscellaneous 2,190 333,700 333,700 1,700 1,700 Recycling Programs 835 1,500 1,500 1,500 1,500 Interest Income 340 200 200 200 200 Trsf from Debt Reduction Fund 44,200 44,200 Total Revenues 5,953,098 6,587,679 6,563,741 6,406,450 1,607,319 8,013,769 EXPENDITURES Contractual Services 5,219,506 5,482,087 5,459,761 5,666,495 1,515,168 7,181,663 Salary & Benefits 129,990 210,775 210,775 209,543 69,444 278,987 Education Programs 14,557 14,557 Operations & Maintenance 155,357 440,814 454,915 64,304 18,614 82,918 Total Operating Expenditures 5,504,853 6,133,676 6,125,451 5,940,342 1,617,783 7,558,125 Miscellaneous 75,000 70,170 75,000 75,000 Transfers Out 429,834 421,537 421,537 411,855 411,855 Total Non-Operating Expenditures 429,834 496,537 491,707 486,855 486,855 Total Expenditures 5,934,687 6,630,213 6,617,158 6,427,197 1,617,783 8,044,980 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ 18,411 429,407 447,818 $ (42,534) 447,818 405,284 $ 158 (53,417) 447,818 394,401 $ (20,747) 394,401 373,654 $ (10,464) (10,464) $ (31,211) 394,401 363,190 Solid Waste Services Provided Solid Waste programs are primarily supported through user charges. Services include residential solid waste pickup and curbside recycling. Programs of Service The Solid Waste program provides commercial solid waste collections, residential solid waste collections, facilitates a recycling program, provides emergency response for debris collection, and engages the community with education and outreach activities. FY18 Requests A total of $1,603,483 in recurring additions was added in Solid Waste’s FY18 budget. The amount includes contractual services in the annexed Greatwood and New Territory, educational program, personnel and operational cost associated with new Environmental Services Inspector. In addition, there is a one-time expense of $14,300 which includes a debris management site report, training and communication equipment for Environmental Services Inspector. Performance Measures: Responsible City Government Services The key measure for the Solid Waste Fund is the number of households serviced as the City outsources residential solid waste collection. As the number of households increases, additional demands are placed on the contractor. At the end of FY18 it is estimated that 35,210 households will be served, which includes Greatwood and New Territory. Summary by Category Salary & Benefits Supplies Professional Services Repairs & Maintenance Purchased Services Capital/Other Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 129,990 $ 210,775 $ 210,775 $ 209,543 $ 69,444 $ 278,987 4,003 14,102 13,373 7,759 14,997 22,756 5,342,996 5,838,778 5,831,282 5,681,800 1,530,170 7,211,970 490 1,300 1,300 2,490 2,490 26,171 43,726 43,726 38,750 3,172 41,922 1,203 24,995 24,995 $ 5,504,853 $ 6,133,676 $ 6,125,451 $ 5,940,342 $ 1,617,783 $ 7,558,125 Summary by Type Contractual Services Salary & Benefits Education Programs Operations & Maintenance Category Totals FY16 FY17 FY17 FY18 FY18 FY18 Actuals Current Budget Projections Base Budget Changes Budget $ 5,219,506 $ 5,482,087 $ 5,459,761 $ 5,666,495 $ 1,515,168 $ 7,181,663 129,990 210,775 210,775 209,543 69,444 278,987 14,557 14,557 155,357 440,814 454,915 64,304 18,614 82,918 $ 5,504,853 $ 6,133,676 $ 6,125,451 $ 5,940,342 $ 1,617,783 $ 7,558,125 FTE Count Solid Waste Category Totals FY16 Budget 2.50 2.50 FY17 Budget FY17 FY18 Adjustments Base Budget 2.50 2.50 2.50 2.50 159 FY18 Changes 1.00 1.00 FY18 Budget 3.50 3.50 Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one fund or department to another fund or department on a cost reimbursement basis. The City of Sugar Land currently has three internal service funds: Employee Benefits, Fleet Replacement, and High Technology Replacement. Employee Benefits Fund This fund accounts for all financial resources associated with employee benefits, excluding workers’ compensation and retirement. The City provides health and dental benefits for full-time employees. Part-time employees are not eligible for coverage. Employees choosing dependent coverage reimburse the City for premiums through payroll deductions. Additional coverage includes, but is not limited to, short-term disability, voluntary life, dependent life insurance, and vision. Prepaid legal services and cancer insurance are also available to purchase. Revenues and expenditures for optional coverage are pass-through only, therefore, are not included in the City contribution. The City also pays 100% of long-term disability, accidental death and dismemberment, and provides a $50,000 life insurance policy for all full-time employees. The City transitioned to a self-funded medical plan out of the traditional private insurance model in January 2012 to help lower costs and maintain stability in premiums. Fiscal Year 2017 FY17 contributions from the City, employees, and retirees are projected to total $9,300,770, with interest income of $3,027, and miscellaneous for $140,940. The total projected revenues is $9,444,737. Projected expenses total $9,405,243 and include insurance premiums, claim payments, administrative fees, and unemployment compensation. The projected cash equivalents balance at 9/30/17 is $391,480. Fiscal Year 2018 FY18 total revenues are budgeted at $10,332,900 which are contributions from the City, employees, and interest income. The budget anticipates a 4% increase in the City contribution will cover expected claims. FY18 total expenses are budgeted at $10,176,940. This includes claims payment and other premiums for $9,710,247 and other expenses for $466,693. The budgeted ending cash equivalents balance at 9/30/18 is $547,440. The $1,250,000 reserve for self-insurance the City established upon implementing the self-funded model is still fully intact. Fleet Replacement Fund This fund accounts for vehicle replacement under the City’s Fleet Replacement Policy, SS-102. Each year during the budget process an inventory is compiled of all fleet equipment. The list is reviewed and rated by Fleet Maintenance. Each vehicle or piece of equipment is assigned a code that reflects its working condition. Fleet Maintenance prepares a list of vehicles recommended for replacement based on the criteria in the policy and Purchasing provides estimated replacement prices. The vehicles on the recommended list may not be the actual vehicles replaced in the upcoming budget year due to the constant changing vehicle conditions. Annual contributions are funded through operating transfers from the participating funds based on purchase price and useful life of each vehicle. Fire trucks and ambulances are excluded from this fund. The fund balance policy for the Fleet Replacement Fund is to maintain a fund balance of at least 10% of the estimated value of the inventory. Vehicles are added to the inventory list in the fiscal year purchased and begin contributing to the Fleet Replacement Fund the following fiscal year to ensure adequate funds are available when replacement is due. 160 Fiscal Year 2017 The projected contributions, auction proceeds, and other revenues total $1,553,963. Expenses for purchase of vehicles, and related equipment total $1,605,095, leaving a projected ending cash equivalent balance at 9/30/17 of $1,797,396. Fiscal Year 2018 Total revenues are budgeted at $1,939,892. Contributions from participating funds total $1,709,418. Insurance reimbursement, sale of property and interest income total $230,474. This includes insurance proceeds for vehicles that are totaled and replaced prior to their planned replacement date. Total expenditures are budgeted at $1,649,246, for the replacement of 29 vehicles. Also included are funds to place vehicles in operation, such as decal work, the installation of electronic equipment, and a contingency of 10% to ensure adequate funds are available in the event prices increase. The budget also includes funds for unexpected replacements due to insurance totaling. The budgeted ending cash equivalents balance at 9/30/18 is $2,088,042. High-Technology Replacement Fund This fund provides centralized accounting and management for the City's high-tech equipment, which includes computers, radar and telecommunications equipment. The fund is managed under the City’s policy on Technology Equipment Replacement, IT-101. This fund operates in the same manner as the Fleet Replacement Fund. The Information Technology staff assigns condition codes and after review and approval, the replacement list is compiled and scheduled through the annual budget process. Contributions to the fund are based on the purchase cost of the equipment. Fiscal Year 2017 Projected revenues for FY17 total $1,265,651 and expenditures are projected at $1,333,523. Expenditures include computers, printers, servers, routers, installations, and public safety radios. The projected ending cash equivalent balance at 9/30/17 is $2,116,987. Fiscal Year 2018 Budgeted revenues total $1,298,693 and include transfers from other funds, interest income, and sale of property. Contributions to the fund include payments for equipment replacement according to the schedule identified in the High Tech Replacement policy. Total expenditures for equipment and contractual services are budgeted at $1,346,135. The budgeted ending cash equivalent balance at 9/30/18 is $2,069,545. 161 16 17 17 18 18 18 CITY OF SUGAR LAND INTERNAL SERVICE FUND - EMPLOYEE BENEFITS (4% City Side Increase) INCOME STATEMENT FY17 FY18 FY16 Current FY17 Base FY18 FY18 Actuals Budget Projections Budget Changes Budget REVENUES Contributions $ 9,040,669 $ 9,801,960 $ 9,300,770 $ 10,231,536 $ $ 10,231,536 Miscellaneous 37,109 100,000 140,940 100,000 100,000 Interest Income 1,210 300 3,027 1,364 1,364 Operating Revenues 9,078,988 9,902,260 9,444,737 10,332,900 10,332,900 Transfers In Total Revenues 9,078,988 9,902,260 9,444,737 10,332,900 10,332,900 EXPENDITURES Premiums & Claims 8,729,609 9,367,480 9,234,189 9,710,247 9,710,247 Other 423,183 456,678 171,054 466,693 466,693 Total Expenditures 9,152,792 9,824,158 9,405,243 10,176,940 10,176,940 Net Income (Loss) Cash Equivalents- Beginning Reserve for Self Insurance Cash Equivalents - Ending (73,804) 1,675,790 $ 1,601,986 $ 78,102 1,601,986 (1,250,000) 430,088 $ 162 39,494 155,960 1,601,986 1,641,480 (1,250,000) (1,250,000) 391,480 $ 547,440 $ - 155,960 1,641,480 (1,250,000) $ 547,440 CITY OF SUGAR LAND INTERNAL SERVICE FUND - FLEET REPLACEMENT FUND INCOME STATEMENT FY16 Actuals REVENUES Sale of Property Interest Income Transfers From Other Funds Miscellaneous Total Revenues $ FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 64,312 $ 20,138 922,667 201 1,007,318 75,000 $ 18,485 1,320,478 140,000 1,553,963 75,000 $ 18,485 1,320,478 140,000 1,553,963 72,500 $ 17,974 1,709,418 140,000 1,939,892 - $ - 72,500 17,974 1,709,418 140,000 1,939,892 EXPENDITURES Vehicles & Contractual Service Total Expenditures 1,712,878 1,712,878 1,605,095 1,605,095 1,605,095 1,605,095 1,649,246 1,649,246 - 1,649,246 1,649,246 Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending (705,560) 2,554,088 1,848,528 $ (51,132) 1,848,528 1,797,396 $ (51,132) 1,848,528 1,797,396 $ 290,646 1,797,396 2,088,042 $ - $ 290,646 1,797,396 2,088,042 $ 163 CITY OF SUGAR LAND INTERNAL SERVICE FUND - HIGH-TECH REPLACEMENT FUND INCOME STATEMENT FY16 Actuals REVENUES Sale of Capital Property Interest Income Transfers in Miscellaneous Total Revenues EXPENDITURES Equipment & Contractual Services Miscellaneous Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Fund Balance - Ending $ $ FY17 Current Budget FY17 Projections FY18 Base Budget FY18 Changes FY18 Budget 6,144 $ 17,195 1,361,152 1,384,491 1,390 $ 12,739 1,251,522 1,265,651 1,390 $ 12,739 1,251,522 1,265,651 1,390 $ 12,739 1,284,564 1,298,693 - $ - 1,390 12,739 1,284,564 1,298,693 1,269,947 1,269,947 1,383,523 1,383,523 1,333,523 1,333,523 1,346,135 1,346,135 - 1,346,135 1,346,135 114,544 2,070,315 2,184,859 $ (117,872) 2,184,859 2,066,987 $ (67,872) 2,184,859 2,116,987 $ (47,442) 2,116,987 2,069,545 $ - $ (47,442) 2,116,987 2,069,545 164 Component Units The City of Sugar Land has five entities that are considered component units of the City and is included in the City’s CAFR. They are the Sugar Land Development Corporation (SLDC), the Sugar Land 4B Corporation (SL4B), the Tax Increment Reinvestment Zone (TIRZ) #1 that covers the Town Square area, TIRZ #3 that covers the Imperial site, and TIRZ #4 that covers property in Telfair near the intersection of U.S. Highway 59 and University Boulevard. The SLDC and the SL4B are the only component units included in the City’s budget as their budget is approved by City Council. A component unit is defined as a legally separate organization for which the elected officials of the primary government (the City) are financially accountable. The SLDC and SL4B are the only components units included in the City’s budget. The TIRZ budgets are not part of the City’s budget and are included for informational purposes. The SLDC was created in 1993 by the City under the Texas Development Corporation Act of 1979 and the SL4B was created in 1995. The role of the SLDC is to provide guidance and funding for the operations of the City’s economic development program and provide business incentives to support and promote the growth and diversification of the City’s economic base through various programs run through the Economic Development Department. The function of the SL4B is to provide guidance and funding for quality of life projects such as parks and aesthetics, and support economic development efforts through the City’s economic development program. The City Council must approve the budget and any bond issues for the SL4B. The Corporations are financed by sales taxes of a quarter cent for each Corporation, which was approved by the voters. The SLDC is a type A sales tax corporation and the SL4B is a type B sales tax corporation. State law allows the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the City. The Boards of Directors are appointed by and serve at the discretion of the City Council. In the event of dissolution, net assets of the Corporations shall be conveyed to the City. The Tax Increment Reinvestment Zone #1 (TIRZ#1) represents the property improvements on 32 acres located at the Sugar Land Town Square development at the southeast corner of U.S. Highway 59 and State Highway 6. The City of Sugar Land, Fort Bend County, and LID#2 are the entities participating in TIRZ#1. The TIRZ#1 budget is not included in the City’s total budget but is included in the document for reference. The Tax Increment Reinvestment Zone #3 (TIRZ#3) represents the property improvements on approximately 839 acres including the former Imperial Sugar property north of U.S. Highway 90A and the former prison property north of U.S. Highway 90A and east of State Highway 6, with the exclusion of the parcel retained by TxDOT. The City of Sugar Land and Fort Bend County are the entities participating in TIRZ#3. The purpose of TIRZ#3 is to generate revenues for the costs of public infrastructure, recreational facilities, historic preservation, re-use of Imperial property, museums, and other eligible expenses. The TIRZ#3 budget is not included in the City’s total budget but is included in the document for reference. The Tax Increment Reinvestment Zone #4 (TIRZ#4) represents the property improvements on approximately 700 acres located at the intersection of U.S. Highway 59 and University Boulevard. The City of Sugar Land, Fort Bend County, Fort Bend MUD 138 and Fort Bend MUD 139 are the entities participating in TIRZ#4. The purpose of TIRZ#4 is to fund certain infrastructure costs for entertainment, office and 165 higher density retail development proposed within its boundaries. The TIRZ#4 budget is not included in the City’s total budget but is included in the document for reference. Sugar Land Development Corporation Fiscal Year 2017 Total revenues are projected to be $7,410,250, which includes sales tax of $6,075,611, interest income of $46,000, incentives reimbursement of $388,639, and an assignment from TIRZ#1 for $900,000. Expenditures are projected at $10,900,915 and include Economic Development Program costs of $803,655. These expenditures include items such as business recruitment, travel and training, dues and memberships, professional services for marketing efforts, research and advertising. Contractual services are estimated at $672,183. Economic Development Incentive projections total $2,157,662, which includes $96,740 for a sales tax incentive grant. Capital Projects Reimbursement is estimated to be $1,913,834. Projects funded by the corporation include CPU Land Planning, Westside Land Acquisition, Industrial Widening, Performing Art Center and Concert Venue Planning. The Corporation projects to pay $4,185,890 for debt service. Transfer to other funds for $1,167,691 includes $555,500 to the Taxable CO Debt Service Fund, $50,000 to the Airport Fund for international marketing, and $562,191 to the General Fund for cost allocation overhead and reimbursement of staff salaries. Projected available funding at 9/30/17 is $1,119,414. The fund balance is $511,853 higher than the policy requirement of $607,561, which constitutes 10% of budgeted sales tax. Fiscal Year 2018 Revenues are budgeted at $7,469,463. Sales tax is estimated at $6,177,463 that is a flat base sales tax plus additional expected sales tax from Greatwood and New Territory annexation. Budgeted interest income is $62,000. An estimated assignment of $1,230,000 from TIRZ#1 supports the debt service requirement on the sales tax revenue bonds issued for Town Square infrastructure. Budgeted expenditures total $7,520,046. Economic Development Program expenditures total $597,018, and include items such as business recruitment, travel and training, dues and memberships, professional services for marketing efforts, research and advertising. Contractual services are budgeted at $12,590. The budget includes $1,700,000 for economic development incentives. Capital Projects Reimbursements are budgeted at $520,575 to repay a portion of the interfund loan for the Central Prison Unit land acquisition. The Corporation has a debt service of $4,149,896 for outstanding issues. Transfers to other funds total $539,967 and include $489,967 to the General Fund for Economic Development staff and support services and $50,000 to the Sugar Land Regional Airport for international marketing. Estimated available funding at 9/30/18 is $1,068,831. The Corporation has a bond coverage ratio of 1.52, which is above the 1.25 minimum. Ending fund balance is $142,211 over the policy requirements, which is 15% of the budgeted sales tax. The policy requirement was changed in FY16 by Council policy from 10% to 15% effective in FY18. 166 Sugar Land 4B Corporation Fiscal Year 2017 Total revenues are projected to be $6,397,015. This includes sales tax for $6,075,611, interest income of $86,000, TIRZ#1 assignment of $155,404 and miscellaneous revenue of $80,000 from the Sugar Land Skeeters. Total expenditures are projected to be $11,974,947. Economic Development program costs are projected to be $985,517 and contractual services are estimated at $20,300. Transfers to Capital Projects are projected to be $6,870,814. These projects include the Festival Site, Baseball Stadium City Cost, Settlers Way Park, Gannoway Lake Park, Town Center Pedestrian and Bicycle, Industrial Widening, Plaza, Joint Participation in CIP, TIRZ#4 Plaza, Mayfield Park, US59 Landscape Beautification, SH6 Beautification Planning, Wayfinding for Pedestrian and Bicycle, Hotel and Conference Center, Public Arts Project, and Smart Financial Centre. Debt Service payments are estimated at $3,345,919. Transfers to other funds are $655,657, which includes of reimbursement for support staff and CIP management fee. Projected available funding at 9/30/17 is $2,542,815. The fund balance is projected to be $1,935,254 higher than policy requirements of $607,561, which constitutes 10% of budgeted sales tax. Fiscal Year 2018 Total revenues are projected to be $6,483,620. This includes sales tax of $6,177,463, interest income of $70,000, TIRZ#1 assignment of $156,157 and miscellaneous revenue of $80,000, which is lease payment for off-site parking at Constellation Field. The projected Sales tax of $6.18 million is a flat base sales tax plus additional expected sales tax from Greatwood and New Territory annexation. Expenditures are budgeted at $8,087,831. Economic Development Program expenditures total $561,621, and contractual services total $21,100. Capital projects funding is budgeted at $2,232,000, which includes Joint Participation in CIP, University Boulevard North Landscape, Public Arts Project, Central Prison Unit Demolition, and Wayfinding Signs. Reserve for Opportunities is budgeted at $950,000. Debt Service is budgeted at $3,352,281 and transfers to other funds are at $970,829, which includes a reimbursement for support staff and CIP management fee. Estimated available funding at 9/30/18 is $938,604. Ending fund balance is $11,985 over the policy requirements, which is 15% of the budgeted sales tax. The policy requirement was changed in FY16 by Council policy from 10% to 15% effective in FY18. 167 CITY OF SUGAR LAND SUGAR LAND DEVELOPMENT CORPORATION INCOME STATEMENT FY16 Actuals REVENUES Sales Tax Interest Income Miscellaneous TIRZ#1 Total Revenues EXPENDITURES Economic Development Program Economic Development Incentives Contractual Services Total Operating Expenditures Debt Service Capital Projects Reimbursement Transfers to Other Funds Total Non-Operating Expenditures Total Expenditures FY17 Current Budget $ 6,545,997 $ 101,326 10 850,000 7,497,333 6,373,750 83,000 900,000 7,356,750 280,194 607,323 9,740 897,257 4,227,746 6,639,706 1,909,763 12,777,215 13,674,472 806,639 2,386,347 672,983 3,865,969 4,185,890 1,913,834 1,167,691 7,267,415 11,133,384 Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales Tax Debt Service Reserve Fund Balance - Ending (6,177,139) (3,776,634) 15,992,627 9,815,487 (1,048,559) (1,063,957) (4,187,081) (4,141,452) $ 4,579,847 $ 833,445 $ Minimum Fund Balance (15% by FY18) Over/Under Policy Bond Coverage Ratio (>1.25x) $ 654,600 $ $ 3,925,248 $ 1.59 637,375 $ 196,070 $ 1.54 168 FY17 Projections 6,075,611 $ 46,000 388,639 900,000 7,410,250 803,655 2,157,662 672,183 3,633,500 4,185,890 1,913,834 1,167,691 7,267,415 10,900,915 (3,490,665) 9,815,487 (1,063,957) (4,141,452) 1,119,414 $ 607,561 511,853 1.48 FY18 Base Budget FY18 Changes FY18 Budget 6,177,463 $ 62,000 1,230,000 7,469,463 - 597,018 1,700,000 12,590 2,309,608 4,149,896 520,575 539,967 5,210,438 7,520,046 - 597,018 1,700,000 12,590 2,309,608 4,149,896 520,575 539,967 5,210,438 7,520,046 - (50,583) 6,324,822 (1,063,957) (4,141,452) 1,068,831 (50,583) 6,324,822 (1,063,957) (4,141,452) 1,068,831 $ - - $ $ $ $ 6,177,463 62,000 1,230,000 7,469,463 926,619 142,211 1.52 SUGAR LAND DEVELOPMENT CORPORATION SUMMARY OF CAPITAL PROJECTS FISCAL YEAR 2018 CIP Project # Project Name SLA164 CPU Acquisition Project Description Amount Intra fund Loan Repayment - Reimbursment to the $ 520,575 City cost of 121 acre CPU land acquisition for Business Park TOTAL SLDC FUNDING $ 169 520,575 COMPONENT UNIT SUGAR LAND DEVELOPMENT CORPORATION DEBT SERVICE REQUIREMENTS TO MATURITY FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 Principal Interest Total $ 1,845,000 $ 2,304,296 $ 4,149,296 1,900,000 2,210,621 4,110,621 1,980,000 2,108,984 4,088,984 2,055,000 1,998,721 4,053,721 2,140,000 1,884,090 4,024,090 Outstanding Debt Issues Series Principal 2013 $ 6,420,000 2014R 6,075,000 2014 36,370,000 Total $ 48,865,000 2,225,000 1,768,821 3,993,821 2,315,000 1,644,571 3,959,571 2,420,000 1,512,268 3,932,268 1,610,000 1,402,659 3,012,659 1,675,000 1,311,318 2,986,318 1,740,000 1,216,346 2,956,346 1,815,000 1,122,215 2,937,215 1,885,000 1,028,807 2,913,807 1,965,000 933,457 2,898,457 2,045,000 835,944 2,880,944 2,135,000 734,110 2,869,110 2,225,000 639,431 2,864,431 2,330,000 552,075 2,882,075 2,450,000 457,600 2,907,600 2,575,000 355,478 2,930,478 2,705,000 248,172 2,953,172 2,355,000 146,100 2,501,100 2,475,000 49,500 2,524,500 $ 48,865,000 $ 26,465,583 $ 75,330,583 Debt Service to Maturity Principal Interest 170 FY40 FY39 FY38 FY37 FY36 FY35 FY34 FY33 FY32 FY31 FY30 FY29 FY28 FY27 FY26 FY25 FY24 FY23 FY22 FY21 FY20 FY19 FY18 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Matures FY38 FY25 FY40 CITY OF SUGAR LAND SUGAR LAND 4B CORPORATION INCOME STATEMENT FY16 Actuals REVENUES Sales Tax Interest Income TIRZ#1 TIRZ#3 Miscellaneous Total Revenues EXPENDITURES Economic Development Program Sales Tax Incentive Grant Contractual Services Total Operating Expenditures Debt Service Reserve for Opportunities Transfers to Capital Projects Transfers to Other Funds Total Non-Operating Expenditures Total Expenditures $ 6,545,997 $ 88,716 154,297 80,010 6,869,020 347,584 107,129 15,189 469,902 3,364,888 341,469 415,445 4,121,801 4,591,703 FY17 Current Budget 6,373,750 $ 57,000 155,404 80,000 6,666,154 FY17 Projections 6,075,611 $ 86,000 155,404 80,000 6,397,015 985,517 96,740 20,300 1,102,557 3,345,919 6,870,814 455,657 10,672,390 11,774,947 985,517 96,740 20,300 1,102,557 3,345,919 6,870,814 655,657 10,872,390 11,974,947 (5,577,932) 12,293,513 (1,063,957) (3,108,808) 2,542,815 $ Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales Tax Debt Service Reserve Fund Balance - Ending 2,277,317 10,016,196 (1,048,559) (3,160,927) $ 8,084,027 $ (5,108,793) 12,293,513 (1,063,957) (3,108,808) 3,011,954 $ Minimum Fund Balance (15% by FY18) Over/Under Policy Bond Coverage Ratio (>1.25x) $ 654,600 $ $ 7,429,427 $ 1.98 637,375 $ 2,374,579 $ 1.92 171 607,561 1,935,254 1.84 FY18 Base Budget FY18 Changes FY18 Budget 6,177,463 $ 70,000 156,157 80,000 6,483,620 - 561,621 21,100 582,721 3,352,281 950,000 2,232,000 970,829 7,505,110 8,087,831 - 561,621 21,100 582,721 3,352,281 950,000 2,232,000 970,829 7,505,110 8,087,831 - (1,604,211) 6,715,581 (1,063,957) (3,108,808) 938,604 (1,604,211) 6,715,581 (1,063,957) (3,108,808) 938,604 $ $ $ $ $ 6,177,463 70,000 156,157 80,000 6,483,620 926,619 11,985 1.87 SUGAR LAND 4B CORPORATION SUMMARY OF CAPITAL PROJECTS FISCAL YEAR 2018 CIP Project # Project Name Project Description Central Prison Unit Demolition The Central Prison Unit property has roughly 99 buildings $ and various structures on the site that need to be cleared so development can occur. Demolition needs to account for the abatement of asbestos / other environmental concerns and abatement monitoring. Wayfinding Signs Next phase of way finding to improve pedestrian & bicycle access to landmarks/destinations through signage & markings. FY18 Public Art Projects, Cultural Arts Division, Economic Development Department. Each year and annual work plan is developed to outline public art projects that achieve the goals of the Public Art Plan (adopted Dec 2016). 300,000 Provide funds for joint participation in CIP projects between the City and Citizen based organizations that benefit the general public. Take advantage of partnership opportunities to enhance and preserve the quality of life for City residents. 200,000 SLB184 SLB185 Public Arts Project SLB182 Joint Participation in CIP SLB181 Amount 232,000 University Boulevard North Landscape and irrigate the right-of-way after completion of Landscape the roadway project. SLB183 TOTAL SL4B FUNDING 100,000 $ 172 1,400,000 2,232,000 COMPONENT UNIT SUGAR LAND 4B CORPORATION DEBT SERVICE REQUIREMENTS TO MATURITY Principal FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 Interest $ 1,960,000 $ 1,388,781 $ 2,025,000 1,316,344 2,115,000 1,239,175 2,195,000 1,156,850 1,900,000 1,076,631 1,330,000 1,011,694 1,390,000 953,169 1,460,000 888,863 1,225,000 828,269 1,290,000 771,681 1,355,000 712,169 1,425,000 648,728 1,500,000 580,150 1,580,000 506,013 1,670,000 425,750 1,765,000 339,875 1,865,000 249,125 1,970,000 153,250 2,080,000 52,000 $ 32,100,000 $ 14,298,516 $ Total 3,348,781 3,341,344 3,354,175 3,351,850 2,976,631 2,341,694 2,343,169 2,348,863 2,053,269 2,061,681 2,067,169 2,073,728 2,080,150 2,086,013 2,095,750 2,104,875 2,114,125 2,123,250 2,132,000 46,398,516 Outstanding Debt Issues Series Principal 2005 $ 1,970,000 2010 4,320,000 2011 25,810,000 $ 32,100,000 Debt Service To Maturity $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY18 FY20 FY22 FY24 FY26 Principal FY28 Interest 173 FY30 FY32 FY34 FY36 Matures FY25 FY22 FY36 Five-Year Forecast The City’s Financial Management Policy Statements (FMPS) specify that a long range forecast is to be prepared annually for the City’s major operating funds. This forecast is based on the guidelines provided by the policy statements; reasonable assumptions can be made regarding future actions based on these policies, which provides a more meaningful forecast to elected officials as they provide direction to City management. The forecast provides management a fiscally constrained plan that funds the operations of the City and the Five-Year CIP requirements. It provides an opportunity to look into the future and advise elected officials regarding anticipated events and strategies to handle the financial implications of decisions. The forecast outcome is highly dependent on several key assumptions that are based on information available at the time of preparation. A change in one or more of these assumptions can significantly alter the outcome of the forecast, which could have a tremendous impact on the City’s operations and maintenance tax rate and capacity for future needs. Based on these assumptions, the forecast shows that the City will be able to accomplish the following:          Annexation of New Territory and Greatwood in December 2017, an increase of approximately 30,000 residents Maintain approximately 3% growth from tax revenues over the forecast period Fund existing services at current service levels in all funds Support the surface water treatment plant and debt repayment Maintain sales tax to fund operations below 50% Meet current and future debt service needs Implement the 2013 GO Bond Projects with minimal impact to the tax rate Fund the recommended Five-Year CIP and resulting operating expenditures Continued Economic Development and Tourism efforts through reserves for opportunities The financial forecast is updated annually as part of the budget process to ensure that the City can continue to meet challenges, fulfill obligations, and assess long-range implications of approved operating, capital budgets and policies. The five-year financial forecast of the major funds indicates the City is in sound financial health, can maintain current service levels, and meet current and anticipated debt obligations. Forecast Assumptions The calculations in this forecast and the analysis of results obtained are based on the following data. Revenues Valuation & Tax Rate General Fund and Debt Service revenues are dependent on the net assessed property valuation assumptions, which are derived from anticipated residential and commercial development, revaluation of existing property, and the scheduled roll-off of tax abatements. The forecast assumes property tax revenues grow at an average rate of 8.54% per year based on a combination of the annexation of Greatwood and New Territory with property values of $2.8 billion in FY19, an increase in revaluation and growth in new value. In FY18 a 3% revaluation was used for residential and commercial. The rest of the forecast uses 3% for both residential and commercial revaluation. The forecast shows only 1 cent increase in FY19 in the tax rate will be needed to fund the rest of the Parks Bonds projects instead of two cents rate as originally forecasted. 174 The forecast assumes the following allocation between the debt service and the maintenance and operations components: Sales Tax Sales tax growth is assumed to grow an average of 3.0% annually. FY18 FY19 FY20 FY21 FY22 57.08% 56.10% 56.10% 56.10% 56.10% 42.92% 43.90% 43.90% 43.90% 43.90% 100.00% 100.00% 100.00% 100.00% 100.00% O&M Debt Total Interest Earnings Interest earnings for each fund are estimated based on available fund balances and the current rate of return trend. Hotel Occupancy Transfer for Debt Service Hotel occupancy tax is pledged toward repayment of existing debt issued for the Conference Center at Town Square and the Smart Financial Centre at Sugar Land. The forecast assumes a transfer to the Debt Service Fund in an amount equal to each year’s debt service requirement. Utility Transfer for Annexed & Dissolved MUD Debt Based on the FMPS the Utility fund makes a transfer to the Debt Service Fund in an amount equal to 100% of the annual debt service requirement for water/wastewater debt assumed from annexed and dissolved municipal utility districts. Drainage debt from MUDs is supported by property taxes. Issuance of New Debt The forecast builds in debt service based on the timing of each anticipated issuance of debt. FY18 FY19 FY20 FY21 FY22 Total Water Consumption Revenues in the Utility Fund are based on the following billed consumption estimates, based on average annual rainfall. Revenues in the Surface Water Fund are calculated based on the following pumpage estimates from all GRP participants. 175 Utility Transfer for MUD Debt FY18 $ 2,055,220 FY19 3,720,372 FY20 3,593,416 FY21 3,526,928 FY22 3,525,544 Tax Backed Debt $ 8,042 28,910 3,660 9,986 21,117 $ 71,715 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Hotel Occupancy Tax Transfer FY18 $ 1,181,064 FY19 1,275,151 FY20 1,445,251 FY21 1,461,732 FY22 1,483,018 $1,000s Utility/Surface Water Revenue GO's for Parks Bonds Bond Projects $ 4,513 $ 6,983 10,260 2,033 4,174 6,714 $ 24,417 $ 10,260 Consumption (1,000 gallons) Water Wastewater 7,126,841 4,357,318 7,228,334 4,418,767 7,305,820 4,457,290 7,366,582 4,482,796 7,420,589 4,487,254 Pumpage (1,000 gallons) City 7,673,378 7,780,907 7,863,932 7,929,621 7,988,007 Non-City 619,692 638,283 638,283 638,283 638,283 Airport Fuel Sales Fuel sales are built into the forecast based on estimated fuel prices. Total sales include Jet-A and AvGas. Expenditures FY18 FY19 FY20 FY21 FY22 Aviation Fuel Sales (Gallons) Gallons Percent Growth 3,003,271 2% 3,033,303 1% 3,078,803 2% 3,124,985 2% 3,171,860 2% Operating Expenditures Throughout the forecast, personnel costs increase by an average of 2.0%. Operations and maintenance costs grow by an average of 2% per year for the Utility Fund and Surface Water Fund, and 1% per year for the General Fund and Airport Fund. Property Tax Rebates The City reimburses tax rebates to in-city MUDs at 50% of the tax collected since most new development is occurring within in-City MUDs. Values in each area are grown based on estimated revaluation plus new value based on development assumptions from the City’s Planning Department. The estimated tax rebates are shown in the table at right: Fund FY18 FY19 FY20 FY21 FY22 Property Tax Rebates Debt Service $ 1,804,270 $ 1,961,200 2,071,280 2,163,630 2,252,180 General 2,399,490 2,505,700 2,646,390 2,764,370 2,877,490 Sales Tax Grant Sales tax grant is built in to the forecast based on estimated sales tax collections and the percentage subject to the grant calculation. There is one Section 380 agreement for Etail Direct where the City reimburses 37.50% of sales tax. Forecast Analysis General Fund The General Fund encompasses the majority of the City’s services. Resources to the fund are generated through property and sales taxes, franchise fees, fines, charges for services and miscellaneous income. Expenditures from the fund support municipal services such as Public Safety, Parks, Finance, Community Development, Environmental & Neighborhood Services and Public Works operations. The General Fund continues to fund all current services throughout the forecast, which now includes the annexation of Greatwood and New Territory. The forecast includes additions to operating expenditures for pay-as-you-go projects, now being included in the General Fund, instead of transferring the funds from General Fund to General CIP to cover the cost of these projects. Recurring operating expenditures increase by an average of 1.75% from FY18 to FY22 due to additions to the budget for the operating impact of capital projects and growth in personnel costs and operations and maintenance. Sales tax receipts are the largest source of revenue for the City and have historically accounted for about 50% of operating General Fund revenues. Based on the current growth in sales tax collections, there is an average annual growth of 2.5% for each year in the forecast. Sales tax revenues make up 41.81% of the total revenues in the General Fund while property taxes represent 31.25%. The FMPS set a target of 10% of base sales tax to be set aside for CIP funding when it is economically feasible. This strategy provides the City a cushion if sales tax collections fall short of estimates, as the first 90% of base sales tax is used to fund operations. For the 5-year year forecast, these funds will remain the in General Fund to fund the payas-you-go projects instead of being transferred to General CIP. The forecast shows a one-cent shift in the tax rate in 176 FY18 and a one quarter cent shift in FY19 for the maintenance and operations allocation of the tax rate to the General Fund. This strategy helps with the increase in operations and maintenance costs in the General Fund due to the annexation of Greatwood and New Territory. Overall, the General Fund is in a stable financial position throughout the forecast. Between FY18 through FY22 the fund is expected to meet or exceed the fund balance requirement. Debt Service Funds The City has two debt service funds, a tax-exempt Debt Service Fund for the repayment of tax-exempt debt for certificates of obligation and general obligation bonds, and a taxable Debt Service Fund established for the repayment of taxable debt issued for the Smart Financial Centre at Sugar Land. Debt Service Fund The Debt Service Fund accounts for the accumulation of monies that are set aside to pay principal and interest on debt incurred through sale of bonds and other debt instruments. These securities finance long-term capital improvement projects such as streets, parks and buildings. Property taxes make up an average of 81.33% of the revenues for the Debt Service Fund. The City will annex Greatwood and New Territory in December 2017 with an approximate property value of $2.8 billion, which accounts for the increase in the property tax revenue in FY19 as well as a planned 1 cent tax increase in FY19 for the voter approved GO Bonds for parks bond projects. The forecast was prepared with an average commercial growth of 3.0% and residential revaluation of 3% plus new value. The fund includes a transfer from CIP non-bond fund, which is the developer fee reimbursement from the Riverstone development agreement. The developer pays $1,750 per lot at the time of platting. These fees are used to fund debt service requirements for the issuance of 2010 Certificates of Obligation for the extension of University Boulevard. Transfers in from the Utility Fund support water and wastewater debt assumed through annexation and dissolution of MUDs at 100% recovery for the duration of the forecast. Transfers in from the Tourism Fund cover the existing debt issued for the Sugar Land Conference Center in Town Square and Smart Financial Centre at Sugar Land and adjacent plaza. The Debt Service Fund maintains the policy requirement throughout the 5-year forecast. The fund balance continues to grow through the forecast and is able to support nearly $71.72 million in new debt for projects in the five-year CIP. Debt Service Fund – Taxable Debt This fund records the taxable debt issued for the Smart Financial Centre at Sugar Land. Property tax is not used to cover the debt service payment. Lease payments from ACE supports the debt payments and will eventually fund a debt service reserve equal to the last three years of debt payment. The first reserve is budgeted in FY19 and increases over the rest of the forecast. Lease payments will be made monthly according to the terms of the 30-year lease. Water Utility Fund The Water/Wastewater Utility Fund is an enterprise fund providing for the administration, billing and collection activities, and operation and maintenance of the City’s water and wastewater system. Services are financed primarily through utility customer user fees. Strategies used in the generation of the Utility financial plan are aimed to ensure the fund is self-supporting and that capital improvement funding is adequate to maintain or expand the City’s infrastructure. Based on the forecast, the fund meets all reserve and bond coverage requirements. The forecast shows that the monthly service charges for water will recover an average of 33.16% of revenue requirements. The forecast also shows that the monthly service charges for wastewater will recover an average of 43.14% of revenue requirements. The base recovery percentages are based on current rates and anticipated future rate adjustments. 177 The utility system users generate the revenues that support the system. These revenues fund the basic operations of the fund, current debt service, and operating transfers. The revenues also support pay-as-you-go capital improvements over the forecast period. Revenues are dependent on the number of users in the system as well as weather experienced during the year. The forecast assumes average rainfall for each year; however, variation from the average can have a significant impact on water demand and subsequent revenues. Operating expenses shows an increase of $1,034,131 or 5.96% during the forecast, which is due to growth in personnel and operating cost. Revenue bonds for the forecast totals $22.12 million that is planned to be issued for capital improvement projects. The required debt service reserve averages $9.04 million from FY18 to FY22. The fund contributes $10.93 million toward pay-as-you-go CIP during the forecast. The forecast shows that the volumetric rates for water increases from $0.90 to $1.05 in FY19 and then again in FY22 to $1.10 per 1,000 gallons of water. The forecast shows that the volumetric rates for wastewater increases from $2.90 to $2.95 in FY19 and then again in FY22 to $3.00 per 1,000 gallons of wastewater. These rate increases are need to maintain service levels and utility infrastructure. Surface Water Fund The Surface Water Fund is an Enterprise Fund and is supported by user fees. The purpose of the fund is to provide a financial mechanism for implementing the City’s groundwater reduction plan for conversion from groundwater to surface water sources. The Surface Water Fund showed that the City was able to provide funding for the 30% conversion to surface water required in 2013 and 60% by 2025. As Greatwood and New Territory are being annexed in December 2017, this fund will see lower GRP fees but higher amounts in the transfers in from the Utility Fund for pumpage fees. There are planned rate increases for pumpage fees: FY19 - $2.00 per 1,000 gallons FY20 - $2.10 per 1,000 gallons FY21 - $2.15 per 1,000 gallons FY22 - $2.20 per 1,000 gallons All participants pay a GRP fee per thousand gallons of groundwater pumped. GRP participants in the City include Tara Plantation, Royal Lake Estates, private well owners, homeowners associations, and Texas Department of Corrections within the City limits. Participants outside of the City limits pay a 20% out-of-City service charge on GRP fees. City customers see a surface water charge on their utility bill; these funds are transferred to the surface water fund based on pumpage. Operating revenues total $7.19 million, which includes GRP Fees for $6.5 million, Out-of-City Services charges for $295,277 and interest income for $386,794. Other revenues, which include transfers-in is from the Utility Fund for surface water fees for $79.24 million for pumpage fees. In FY16, the Surface Water Fund loaned $2,000,000 to the Airport and $1,000,000 to General CIP. In FY18, the Surface Water Fund will receive its first payment of $520,575 from General CIP Fund, and the second payment in FY19 for $505,000. In FY19 the Surface Water Fund loan of $2,000,000 to the Airport Fund will be repaid with interest for $2,053,397. Total expenses for the fund are approximately $76.23 million for the forecast. Total operating expenses for the forecast are $30.20 million, which include chemicals, electricity, other contractual, water right options, and permit fees. Debt service payments totals $40.63 million. The next plan for debt issuance is in FY21 for CIP projects. The fund has 50% general purpose reserve that is met throughout the forecast. 178 Airport Fund The Sugar Land Regional Airport is a user-fee supported business enterprise fund. The City has been able to attract and maintain quality corporate customers due to the location and amenities offered by the Airport. The Airport is continuing improvements to enhance its image among the business users of airport services and to attract new customers. The Airport is able to fund capital improvements, provide services, and make debt service payments on outstanding debt issues, and meet its reserve and bond coverage requirements. Total Revenues for the airport are expected to increase over the next five years based on increasing fuel sales, customer distribution’s changes, hangar lease fees and markup increase. Fuels sales’ projections indicate that fuel sales will steadily increase over the next five years. The graphs below depict the projected fuel revenues over the next five years, as well as gallons sold. Airport operating expenses are projected to increase in the forecast at an average of 1.0% in the five-year forecast excluding fuel expenditures and credit card fees, which have offsetting revenues. Airport operating expenses are projected to increase in the forecast at an average of 3.8% in the five-year forecast excluding fuel expenditures and credit card fees, which have offsetting revenues. Tourism Fund Hotel Occupancy Tax Revenues For FY18, the Tourism Fund will support the debt service for the Smart Financial Centre at Sugar Land and adjacent plaza. The Tourism Fund will contribute $25,000 to the Public Art CIP project in FY18 and $285,000 over the forecast period in total. $4.0 Millions The purpose of the fund is to promote tourism in the City and state statute restricts use of the funds. The City’s Hotel Occupancy Tax is the source of revenues in the fund, which is based on 7% of room revenue. $3.0 $2.33 $2.22 $2.31 $2.51 $2.58 $2.66 $2.74 $2.0 $1.0 $FY16 FY17 FY18 FY19 FY20 FY21 FY22 Actual Forecasted Hotel occupancy tax revenues are projected to increase 18.8% from FY18 to FY22 based on anticipated growth from existing hotels and new hotels with revenues anticipated beginning in FY18 and FY19. The City has pledged hotel tax revenues from the Marriott as a transfer to the Debt Service Fund to pay for the City’s debt service requirements for the Conference Center. This arrangement confirms the City’s commitment to the principle that hotel taxes should pay for the debt and not property taxes. 179 Expenditures in the fund are used to finance marketing and destination development for the City, according to limits imposed by state statutes. Over the forecast period, an estimated $1.6 million will be spent on Events & Sponsorships, $2.9 million on Tourism & Promotions, $1.2 million on Sugar Land Visitors Center, and $0.3 million on Cultural Art if expenditures continue based on current levels. The fund will transfer $6.9 million to the Debt Service Fund to support existing debt service payments for the conference center and Smart Financial Centre at Sugar Land. At the end of FY22, the projected ending fund balance is $312,296. There is a new fund balance policy of 10% of HOT revenues, adopted in FY16. The fund is anticipated to meet the policy requirements in FY18-FY22. Five-Year Capital Improvement Program The City’s Five-Year CIP totals $130.55 million for FY18-FY22. Funding sources were identified as capacity was determined in the various financial plans and the timing of projects was adjusted to meet affordability. All projects included in the CIP have identified funding sources. Project Type AIRPORT DRAINAGE MUNICIPAL PARKS STREETS SURFACE WATER TRAFFIC WASTEWATER WATER TOTAL Funding 410,500 28,551,000 17,755,000 15,260,000 29,965,543 2,300,000 750,000 19,590,500 15,970,000 $ 130,552,543 $ % of Funds 0.3% 21.9% 13.6% 11.7% 23.0% 1.8% 0.6% 15.0% 12.2% 100.0% Funding for CIP projects are derived from various sources including utility revenue bonds, general obligation bonds, certificates of obligation, utility revenues, economic development sales taxes, airport revenues, hotel occupancy tax, donations, and CIP fund balance. Major projects in the Five-Year CIP include surface water, streets, municipal, and drainage. A summary by project type and the funding totals appears in the table above. Some of the CIP projects have an operations and maintenance impact that has to be considered along with the project cost. The anticipated O&M cost includes projects that are anticipated in future fiscal years that may be delayed or canceled based on available funding. However, these costs are built into the respective operating funds five-year forecast to give policy makers an idea of the financial impact completed CIP projects will have on the operating funds of the City. Sugar Land Development Corporation (SLDC) The SLDC is financed through a quarter cent sales tax approved by the voters in 1993, and its primary goal is to promote economic development of the City. Sales tax and interest income are the primary revenue sources for the Corporation, along with an assignment from TIRZ #1 toward repayment of debt issued for Town Square infrastructure. There is also a reimbursement from TIRZ#3 for parking and infrastructure. Expenditures over the forecast total $45.58 million. Expenditures include staffing reimbursement to the City, support services contract, and the economic development program for marketing and business recruitment. The Corporation has annual debt service of approximately $4.1 million each year. The forecast allocates $8.50 million over the five years toward Economic Development direct incentives. A total of $8.15 million is reserve for opportunities in the fiveyear forecast. The fund is able to maintain a fund balance in excess of the 15% of budgeted sales tax policy requirement for the duration of the forecast with a budgeted fund balance amount of $1,062,829 in FY22. Sugar Land 4B Corporation (SL4B) The SL4B is financed by a quarter cent sales tax authorized by voters in 1995. Uses of 4B funds are restricted by law, but are less restricted than the use of SLDC funds. Sales tax is the primary revenue source for the Corporation, along with an assignment of revenues from TIRZ #1 toward repayment of debt issued for the Texas Garage in Sugar Land Town Square. The TIRZ#1 supports 53% of debt service on the garage spaces, which is the prorated balance after the 180 2009 payment from Planned Community Developers is applied to outstanding principal. Reimbursement from TIRZ#3 is for the TIRZ infrastructure and parking. In the forecast the SL4B contributes $3.8 million for capital improvements, including joint participation in CIP, Central Prison Unit Demolition, Wayfinding for Pedestrian and Bikes, University Boulevard North Landscape, and Public Art Project. The Corporation has three outstanding debt issues that mature in 2036. The annual debt service payment is $3.35 million in FY18 and remains at that level for FY19-FY21, the annual debt service payment in FY22 is $2.98 million. A total of $16.65 million is available as reserve for opportunities in the five-year forecast. SL4B meets its reserve and bond coverage requirements and is able to maintain a fund balance in excess of the 15% of budgeted sales tax receipts policy requirement during the forecast and with an ending fund balance of $1,089,520 in FY22. 181 CITY OF SUGAR LAND GENERAL FUND FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Property Taxes Sales Tax Other Taxes Licenses & Permits Charges for Services Fines & Forfeitures Other Intergovernmental Interest Income Operating Revenues Transfers In Lease Proceeds Non-operating Revenues Total Revenues EXPENDITURES General Government Finance Public Works Parks & Recreation Community Development Environmental & Neighborhood SVC Police Department Fire Department Departmental Expenditures Transfers to other Funds Miscellaneous Rebates & Assignments Debt Service Non-departmental Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales/Franchise Taxes Fund Balance - Ending Ending Fund Balance- % of Oper Exp Fund Balance - Requirement Over / (Under) Policy $ $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast 20,846,700 $ 36,453,667 6,166,432 3,135,283 5,806,894 1,536,131 341,808 618,176 187,280 75,092,371 10,065,695 10,065,695 85,158,066 23,108,600 $ 37,064,779 6,550,729 3,567,148 3,924,076 1,665,840 341,808 70,000 192,280 76,485,260 14,689,709 14,689,709 91,174,969 29,487,400 $ 38,176,722 6,616,236 3,602,819 3,672,073 1,682,498 345,226 70,000 194,203 83,847,178 7,780,387 7,780,387 91,627,565 30,529,700 $ 39,322,024 6,682,399 3,638,848 3,719,252 1,699,323 348,678 70,000 196,145 86,206,369 7,702,686 7,702,686 93,909,055 31,543,200 40,501,684 6,749,223 3,123,078 3,767,183 1,716,317 352,165 70,000 198,106 88,020,956 7,776,213 7,776,213 95,797,169 12,866,665 4,089,378 9,293,964 4,951,834 5,167,972 5,281,267 23,241,023 15,454,787 80,346,890 3,837,200 463,533 2,557,913 6,858,646 87,205,536 13,058,582 4,404,427 11,119,475 4,922,185 5,645,037 5,717,179 24,103,961 16,105,011 85,075,857 2,846,145 (116,223) 2,613,188 5,343,110 90,418,967 13,288,480 4,481,967 11,584,248 5,040,108 5,744,418 5,816,680 24,528,313 16,388,541 86,872,756 2,173,574 (200,145) 2,706,529 4,679,958 91,552,714 13,522,662 4,560,953 12,052,313 5,159,624 5,845,652 5,917,963 24,960,576 16,677,356 88,697,099 1,978,220 (167,947) 2,610,211 4,420,485 93,117,583 13,761,213 4,641,412 12,523,732 5,280,762 5,948,774 6,021,064 25,400,900 16,971,558 90,549,415 1,982,313 (155,626) 2,726,591 4,553,278 95,102,693 14,004,215 4,723,372 12,998,572 5,403,555 6,053,821 6,126,016 25,849,442 17,271,251 92,430,244 2,255,620 (143,182) 2,838,161 4,950,599 97,380,843 (2,047,470) 28,542,348 (7,066,605) 19,428,273 $ 26% 18,354,169 $ 1,074,104 756,002 26,494,878 (7,066,605) 20,184,275 $ 25% 19,983,196 $ 201,079 74,852 27,250,880 (7,066,605) 20,259,127 $ 25% 20,232,042 $ 27,085 791,472 27,325,732 (7,066,605) 21,050,599 $ 25% 20,693,390 $ 357,209 694,476 28,117,204 (7,066,605) 21,745,075 $ 26% 20,994,947 $ 750,128 740,827 28,811,680 (7,066,605) 22,485,902 26% 21,303,557 1,182,346 182 FY22 Forecast $ 32,408,300 41,716,735 6,816,715 3,154,309 3,815,882 1,733,480 355,687 70,000 200,087 90,271,195 7,850,475 7,850,475 98,121,670 CITY OF SUGAR LAND DEBT SERVICE FUND FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Current Property Tax District Property Taxes - Annexation Delinquent Property Taxes Interest on Investments Miscellaneous Refunding Bond Proceeds Operating Revenues Total Transfers In Non-operating Revenues Total Revenues EXPENDITURES Current Outstanding & New Debt Fiscal Fees/Other Issuance Costs Refunding Payment to Escrow Total Debt Service Rebates & Assignments Transfers to Other Funds Miscellaneous Total Other Expenditures Total Expenditures CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING Policy Requirement Over/(Under) Policy FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast $ 17,817,900 $ 17,374,700 $ 23,077,000 $ 23,892,800 $ 24,685,800 $ 25,363,100 5,837,387 42,800 118,400 102,700 59,700 61,700 63,400 45,000 50,000 57,000 57,000 57,000 57,000 1,664,819 6,241 17,911,941 25,045,306 23,236,700 24,009,500 24,804,500 25,483,500 4,061,279 3,933,785 5,593,023 5,461,165 5,386,161 5,381,062 4,061,279 3,933,785 5,593,023 5,461,165 5,386,161 5,381,062 21,973,220 28,979,091 28,829,723 29,470,665 30,190,661 30,864,562 20,733,443 18,000 20,751,443 1,880,900 109,579 11,850 2,002,329 22,753,772 26,908,344 21,000 26,929,344 1,804,270 107,740 4,000 1,916,010 28,845,354 26,929,835 21,300 26,951,135 1,961,200 114,077 4,000 2,079,277 29,030,412 28,414,930 21,600 28,436,530 2,071,280 117,499 4,000 2,192,779 30,629,308 28,184,987 21,900 28,206,887 2,163,630 121,023 4,000 2,288,653 30,495,540 26,169,929 22,200 26,192,129 2,252,180 124,661 4,000 2,380,841 28,572,970 $ (780,552) 5,690,149 4,909,597 $ 133,737 4,909,597 5,043,334 $ (200,689) 5,043,334 4,842,645 $ (1,158,643) 4,842,645 3,684,002 $ (304,879) 3,684,002 3,379,123 $ 2,291,592 3,379,123 5,670,715 $ $ 2,073,344 $ 2,836,253 $ 2,690,834 $ 2,352,500 $ 2,692,983 $ 2,149,662 $ 2,841,493 $ 842,509 $ 2,818,499 $ 560,624 $ 2,616,993 3,053,722 183 CITY OF SUGAR LAND DEBT SERVICE FUND - TAXABLE CO'S FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Rent Interest Income Operating Revenues Transfers In Non-operating Revenues Total Revenues EXPENDITURES Current Outstanding & New Debt Fiscal Fees/Other Total Expenditures CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING Accrued Sales Tax Debt Service Reserve FUND BALANCE - ENDING $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 1,251,521 $ 300 1,251,821 555,500 555,500 1,807,321 1,601,299 $ 750 1,602,049 1,602,049 1,901,286 $ 765 1,902,051 1,902,051 2,004,811 $ 780 2,005,591 2,005,591 2,003,936 $ 796 2,004,732 2,004,732 2,005,123 812 2,005,935 2,005,935 1,110,999 1,000 1,111,999 1,591,199 1,000 1,592,199 1,591,199 1,000 1,592,199 1,590,399 1,000 1,591,399 1,593,699 1,000 1,594,699 1,591,099 1,000 1,592,099 309,852 764,711 310,087 1,384,650 $ 414,192 1,074,563 724,499 2,213,254 $ 410,033 1,488,755 1,134,737 3,033,525 $ 413,836 1,898,788 1,548,761 3,861,385 695,322 59,539 754,861 $ 9,850 754,861 764,711 $ 184 CITY OF SUGAR LAND ENTERPRISE FUND - WATER UTILITY SYSTEM FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Charges for Services Surface Water Fees Tap Fees Interest Income Other Operating Revenues Bond Proceeds Transfers In - Connection Fees Non-operating Revenues Total Revenues EXPENDITURES Utility Administration Water Distribution Water Production Wastewater Collection Wastewater Treatment Customer Service Water Quality Water Conservation Treasury Total Operating Expenditures Debt Service Payment to Escrow Account Miscellaneous Transfers Out Transfers Out - Surface Water CIP Transfers Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Reserve - Debt Service Fund Balance - Ending Cash Operating Reserve Bond Coverage $ $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 25,104,073 $ 9,463,960 230,935 84,658 1,341,486 36,225,112 7,253,879 581,107 7,834,986 44,060,098 33,869,742 $ 13,407,370 252,608 95,000 1,198,863 48,823,583 4,603,056 581,947 5,185,003 54,008,586 35,249,211 $ 15,057,462 161,258 99,750 35,874,299 $ 16,297,247 167,652 104,738 36,099,409 $ 16,927,301 79,043 109,974 36,628,614 17,450,256 79,043 115,473 1,139,633 1,140,426 1,141,243 1,142,084 51,707,314 7,123,017 869,015 7,992,032 59,699,347 53,584,362 2,073,497 868,819 2,942,316 56,526,678 54,356,970 3,594,480 869,491 4,463,971 58,820,941 55,415,470 5,165,096 1,030,408 6,195,505 61,610,975 906,904 1,732,982 2,190,208 1,045,979 4,577,463 808,571 486,727 293,163 1,406,785 13,448,782 8,483,103 420,146 5,393,543 9,478,156 9,175,553 32,950,501 46,399,283 871,851 2,658,578 2,922,864 1,201,371 6,163,349 929,900 584,336 294,941 1,724,346 17,351,536 9,170,655 585,452 6,104,305 13,428,411 6,688,500 35,977,323 53,328,859 767,159 3,220,571 2,909,192 1,223,189 6,229,810 953,073 590,115 299,564 1,723,792 17,916,466 8,753,908 598,816 7,618,430 15,077,684 9,190,000 41,238,838 59,155,304 786,768 2,869,250 2,950,140 1,249,042 6,302,447 976,894 604,246 304,284 1,756,967 17,800,037 9,006,415 612,580 7,473,954 16,318,365 4,240,000 37,651,315 55,451,352 806,931 2,919,029 2,991,852 1,275,561 6,376,122 1,001,381 618,765 309,103 1,791,016 18,089,759 8,960,820 626,758 7,451,547 16,949,843 5,739,000 39,727,967 57,817,726 827,664 2,969,939 3,034,349 1,302,766 6,450,852 1,026,555 633,683 314,023 1,825,836 18,385,667 9,346,240 641,361 7,494,842 17,474,044 7,189,200 42,145,686 60,531,353 (2,339,185) 12,617,435 (6,069,587) 4,208,663 $ 679,727 10,278,250 (5,975,281) 4,982,696 $ 544,043 10,957,977 (6,063,298) 5,438,722 $ 1,075,326 11,502,020 (5,781,413) 6,795,933 $ 1,003,214 12,577,346 (5,604,223) 7,976,338 $ 1,079,621 13,580,560 (5,550,460) 9,109,722 31% 1.62 29% 2.06 185 30% 2.24 38% 2.26 44% 2.26 50% 2.21 CITY OF SUGAR LAND ENTERPRISE FUND - SURFACE WATER FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES GRP Fees Out of City Service Charge Interest Income Operating Revenues Bond Proceeds Inter-Fund Loan Repayment Transfer In - Utilities Non-operating Revenues Total Revenues EXPENDITURES Personnel Services Operations & Maintenance Raw Water Total Operating Expenditures Capital Projects Debt Service Payment to Escrow Account Miscellaneous Transfers Out Contingency Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Inter-Fund Loans Fund Balance - Ending FB Rec'd - 50% of Total Exp Over/Under Policy Membrane Replacement Reserve $ $ $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 4,423,025 $ 38,260 64,754 4,573,526 13,466,091 9,478,156 22,944,247 27,517,773 1,102,242 $ 49,986 70,000 1,222,228 520,575 13,428,411 13,948,986 15,171,214 1,256,396 $ 57,002 73,500 1,386,898 2,558,397 15,077,684 17,636,081 19,022,978 1,345,192 $ 61,047 77,175 1,483,415 16,318,365 16,318,365 17,801,780 1,385,555 $ 62,886 81,034 1,529,474 16,949,843 16,949,843 18,479,317 1,417,844 64,357 85,085 1,567,287 17,474,044 17,474,044 19,041,331 1,058,249 3,445,581 1,361,774 5,865,604 7,461,139 81,715 13,975,866 319,617 21,838,337 27,703,941 1,061,997 3,244,092 1,566,360 5,872,449 8,077,122 84,222 620,890 323,206 9,105,440 14,977,889 1,093,857 3,276,533 1,582,024 5,952,414 8,040,879 86,749 639,517 326,286 9,093,430 15,045,844 1,126,877 3,321,298 1,597,844 6,046,019 8,059,863 89,351 658,702 329,443 9,137,359 15,183,378 1,158,384 3,354,511 1,613,822 6,126,717 8,142,754 92,032 678,463 332,679 9,245,928 15,372,645 1,193,135 3,388,056 1,629,960 6,211,152 8,310,239 94,793 698,817 335,996 9,439,845 15,650,997 (186,168) 10,511,767 10,325,599 $ 193,325 10,325,599 10,518,924 $ 3,977,135 10,518,924 14,496,059 $ 2,618,401 14,496,059 17,114,460 $ 3,106,672 17,114,460 20,221,132 $ 3,390,334 20,221,132 23,611,466 7,686,323 12,534,808 1,026,278 7,825,499 15,785,966 1,162,274 7,189,472 3,136,126 514,665 $ 7,488,944 3,029,979 637,871 186 $ 7,522,922 6,973,136 764,156 $ 7,591,689 9,522,770 893,599 $ $ CITY OF SUGAR LAND ENTERPRISE FUND - AIRPORT FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Fuel Sales Hangar Leases Miscellaneous Revenues Interest Income Operating Revenues Transfers In Grant Proceeds Bond Proceeds Non-operating Revenues Total Revenues EXPENDITURES Airport Administration Airfield Operations FBO Services Café Select Customs Maintenance and Operations Total Operating Expenditures Debt Service Miscellaneous Operating Transfers Out Total Non-Operating Expenditures Total Expenditures Revenues Over/(Under) Expenditures Fund Balance - Beginning Debt Service Reserve Fund Balance - Ending CASH EQ. RESERVE RATIO (25% min) BOND COVERAGE (1.25x min) FUEL GALLONS SOLD $ $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 10,973,660 $ 1,498,459 983,560 22,000 13,477,679 254,680 50,000 2,200,000 2,504,680 15,982,359 12,036,779 $ 1,388,200 847,600 15,000 14,287,579 263,010 50,000 313,010 14,600,589 12,083,982 $ 1,409,522 856,076 15,150 14,364,730 266,660 50,000 418,710 3,075,370 17,440,100 12,265,242 $ 1,431,206 864,637 15,302 14,576,386 270,420 50,000 860,420 15,436,806 12,387,894 $ 1,453,259 873,283 15,455 14,729,890 274,290 50,000 324,290 15,054,180 12,511,773 1,475,687 882,016 15,609 14,885,085 278,270 50,000 328,270 15,213,355 1,194,563 396,436 8,091,226 261,875 209,898 1,161,754 11,315,752 1,211,143 218,658 3,208,475 4,638,276 15,954,028 1,022,251 340,129 9,323,703 261,448 259,898 1,353,691 12,561,120 1,262,514 151,557 973,924 2,387,995 14,949,115 1,032,474 308,180 9,343,775 264,062 211,997 1,008,678 12,169,167 1,258,623 153,073 1,425,627 4,890,719 17,059,886 1,045,955 312,204 9,472,828 267,510 214,765 1,021,848 12,335,110 1,258,036 154,603 1,041,294 2,453,933 14,789,043 1,059,644 316,290 9,567,556 271,011 217,576 1,035,222 12,467,299 1,266,279 156,149 1,077,136 2,499,565 14,966,864 1,073,545 320,440 9,663,231 274,567 220,430 1,048,803 12,601,016 1,264,217 157,711 1,114,531 2,536,459 15,137,475 28,331 5,511,711 (659,766) 4,880,276 $ (348,526) 5,540,042 (702,546) 4,488,970 $ 380,214 5,191,516 (702,546) 4,869,184 $ 647,763 5,571,730 (702,546) 5,516,948 $ 87,316 6,219,494 (702,546) 5,604,264 $ 75,879 6,306,810 (702,546) 5,680,143 103% 2.15 3,090,240 83% 1.33 3,003,271 96% 1.71 3,033,303 108% 1.73 3,078,803 108% 1.75 3,124,985 109% 1.78 3,171,860 187 CITY OF SUGAR LAND SPECIAL REVENUE FUND - TOURISM FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Hotel/Motel Occupancy Tax Interest Income Miscellaneous Total Revenues $ FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 2,220,100 $ 4,200 2,224,300 2,309,100 $ 4,200 2,313,300 2,509,236 $ 4,242 2,513,478 2,584,900 $ 4,284 2,589,184 2,662,400 $ 4,327 2,666,727 2,742,200 4,371 2,746,571 EXPENDITURES Events & Sponsorships Tourism & Promotions Sugar Land Visitors Center Cultural Art Capital Projects Total Operating Expenditures Transfers to Other Funds Miscellaneous Total Non-Operating Expenditures Total Expenditures 456,850 679,082 49,542 64,983 1,250,457 1,233,697 1,233,697 2,484,154 309,800 557,957 239,569 53,324 1,160,650 1,181,064 1,181,064 2,341,714 308,855 565,380 242,756 54,033 1,171,025 1,275,151 1,275,151 2,446,176 312,974 572,919 245,993 54,754 1,186,640 1,445,251 1,445,251 2,631,891 317,156 580,576 249,281 55,486 1,202,499 1,461,732 1,461,732 2,664,231 321,405 588,353 252,620 56,229 1,218,607 1,483,018 1,483,018 2,701,625 Revenues Over/(Under) Expenditures Fund Balance - Beginning GAAP Adjustments Fund Balance - Ending $ (259,854) 1,058,323 (529,796) 268,673 $ (28,414) 798,469 (529,796) 240,259 $ 67,301 770,055 (529,796) 307,561 $ (42,707) 837,357 (529,796) 264,854 $ 2,496 794,650 (529,796) 267,350 $ 44,946 797,146 (529,796) 312,296 Fund Balance Policy (10% of Budgeted HOT) $ Over/Under Policy $ 222,010 $ 46,663 $ 230,910 $ 9,349 $ 250,924 $ 56,637 $ 258,490 $ 6,364 $ 266,240 $ 1,110 $ 274,220 38,076 188 CITY OF SUGAR LAND 2018 - 2022 CAPITAL IMPROVEMENT PROGRAM TOTAL SUMMARY 2018 2019 2020 2021 2022 2018-2022 BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE TOTAL $ $ 410,500 $ $ $ $ 410,500 2,210,000 11,320,000 1,066,000 5,875,000 8,080,000 28,551,000 3,827,000 12,257,000 257,000 1,157,000 257,000 17,755,000 1,200,000 11,460,000 1,200,000 1,200,000 200,000 15,260,000 4,162,056 6,219,193 2,594,291 3,758,707 13,231,296 29,965,543 650,000 1,650,000 2,300,000 750,000 750,000 6,134,500 3,815,000 2,000,000 2,111,000 5,530,000 19,590,500 3,989,000 5,196,000 2,240,000 3,080,000 1,465,000 15,970,000 $ 22,272,556 $ 50,677,693 $ 9,357,291 $ 17,831,707 $ 30,413,296 $ 130,552,543 PROJECT TYPE AIRPORT DRAINAGE MUNICIPAL PARKS STREETS SURFACE WATER TRAFFIC WASTEWATER WATER TOTAL 2018 2019 2020 2021 2022 2018-2022 BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE TOTAL $ 8,042,056 $ 28,910,193 $ 3,660,291 $ 9,985,707 $ 21,117,096 $ 71,715,343 10,260,000 10,260,000 4,512,800 6,983,350 2,032,840 4,174,000 6,713,820 24,416,810 200,000 200,000 2,232,000 422,000 407,000 382,000 357,000 3,800,000 410,500 410,500 2,175,700 2,206,650 2,207,160 2,215,000 2,125,380 10,929,890 SOURCE OF FUNDS CO'S GO'S REVENUE BONDS SLDC SL4B AIRPORT REVENUES SYSTEM REVENUES OTHER FUNDING SOURCES CIP Fund Balance Cullinan Foundation Tourism Fund TOTAL 4,285,000 1,000,000 1,250,000 1,000,000 1,000,000 25,000 35,000 50,000 75,000 100,000 $ 22,272,556 $ 50,677,693 $ 9,357,291 $ 17,831,707 $ 30,413,296 $ 189 4,285,000 4,250,000 285,000 130,552,543 CITY OF SUGAR LAND SUGAR LAND DEVELOPMENT CORPORATION FIVE-YEAR FINANCIAL FORECAST FY17 Projections FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast REVENUES Sales Tax Interest Income Miscellaneous TIRZ#1 TIRZ#3 Total Revenues EXPENDITURES Economic Development Program Economic Development Incentives Contractual Services Total Operating Expenditures Debt Service Reserve for Opporunties Capital Projects Reimbursement Transfers to Other Funds Total Non-Operating Expenditures Total Expenditures 803,655 2,157,662 672,183 3,633,500 4,185,890 1,913,834 1,167,691 7,267,415 10,900,915 Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales Tax Debt Service Reserve Fund Balance - Ending (3,490,665) 9,815,487 (1,063,957) (4,141,452) 1,119,414 $ (50,583) 6,324,822 (1,063,957) (4,141,452) 1,068,831 $ (106,433) 6,274,239 (1,063,957) (4,141,452) 962,397 $ 29,003 6,167,806 (1,063,957) (4,141,452) 991,400 $ 28,079 6,196,809 (1,063,957) (4,141,452) 1,019,479 $ 43,350 6,224,888 (1,063,957) (4,141,452) 1,062,829 607,561 $ 511,853 $ 1.48 926,619 $ 142,211 $ 1.52 954,418 $ 7,979 $ 1.57 983,051 $ 8,350 $ 1.63 1,012,542 $ 6,937 $ 1.69 1,042,918 19,910 1.76 Minimum Fund Balance (15% by FY18) Over/Under Policy Bond Coverage Ratio (>1.25x) 6,075,611 $ 46,000 388,639 900,000 7,410,250 $ $ $ 6,177,463 $ 62,000 1,230,000 7,469,463 6,362,787 $ 62,000 1,550,000 7,974,787 6,553,671 $ 70,000 1,600,000 4,793,527 13,017,197 6,750,281 $ 70,000 1,560,000 8,380,281 6,952,789 70,000 1,660,000 8,682,789 597,018 1,700,000 12,590 2,309,608 4,149,896 520,575 539,967 5,210,438 7,520,046 602,988 1,700,000 12,590 2,315,578 4,110,621 400,000 705,000 550,021 5,765,642 8,081,220 609,018 1,700,000 12,590 2,321,608 4,088,984 4,650,000 1,367,311 560,291 10,666,586 12,988,194 615,108 1,700,000 12,590 2,327,698 4,053,721 1,400,000 570,783 6,024,504 8,352,202 621,259 1,700,000 12,590 2,333,849 4,024,090 1,700,000 581,500 6,305,590 8,639,440 190 CITY OF SUGAR LAND SUGAR LAND 4B CORPORATION FIVE-YEAR FINANCIAL FORECAST FY17 Projections REVENUES Sales Tax Interest Income TIRZ#1 TIRZ#3 Miscellaneous Total Revenues $ 6,075,611 $ 86,000 155,404 80,000 6,397,015 FY18 Budget FY19 Forecast FY20 Forecast FY21 Forecast FY22 Forecast 6,177,463 $ 70,000 156,157 80,000 6,483,620 6,362,787 $ 70,000 154,007 80,000 6,666,794 6,553,671 $ 80,000 156,886 7,821,017 80,000 14,691,574 6,750,281 $ 80,000 156,736 80,000 7,067,017 6,952,789 80,000 156,270 80,000 7,269,059 561,621 21,100 582,721 3,352,281 950,000 2,232,000 970,829 7,505,110 8,087,831 567,237 21,311 588,548 3,341,344 1,450,000 422,000 817,442 6,030,785 6,619,334 572,910 21,524 594,434 3,354,175 9,650,000 407,000 669,286 14,080,461 14,674,895 578,639 21,739 600,378 3,351,850 2,000,000 382,000 681,367 6,415,217 7,015,595 584,425 21,957 606,382 2,976,631 2,600,000 357,000 693,691 6,627,322 7,233,704 EXPENDITURES Economic Development Program Sales Tax Incentive Grant Contractual Services Total Operating Expenditures Debt Service Reserve for Opportunities Transfers to Capital Projects Transfers to Other Funds Total Non-Operating Expenditures Total Expenditures 985,517 96,740 20,300 1,102,557 3,345,919 6,870,814 655,657 10,872,390 11,974,947 Revenues Over/(Under) Expenditures Fund Balance - Beginning Accrued Sales Tax Debt Service Reserve Fund Balance - Ending (5,577,932) 12,293,513 (1,063,957) (3,108,808) 2,542,815 $ (1,604,211) 6,715,581 (1,063,957) (3,108,808) 938,604 $ 47,460 5,111,370 (1,063,957) (3,108,808) 986,065 $ 16,679 5,158,830 (1,063,957) (3,108,808) 1,002,744 $ 51,421 5,175,509 (1,063,957) (3,108,808) 1,054,165 $ 35,355 5,226,930 (1,063,957) (3,108,808) 1,089,520 607,561 $ 1,935,254 $ 1.84 926,619 $ 11,985 $ 1.87 954,418 $ 31,647 $ 1.92 983,051 $ 19,693 $ 1.98 1,012,542 $ 41,623 $ 2.29 1,042,918 46,602 3.00 Minimum Fund Balance (15% by FY18) Over/Under Policy Bond Coverage Ratio (>1.25x) $ $ $ 191 City of Sugar Land Financial Management Policy Statements Introduction The Financial Management Policy Statements adopted by City Council are an overview of the City’s financial policies and provide guidelines to City staff in managing and planning the City’s finances. Some policy statements are driven by requirements of state law or City charter, while others are formally documented through policies and procedures. Statements that are driven by legal requirements will be noted as such. In some case, exceptions to the policy statements may be appropriate and/or necessary. Exceptions to stated policies will be specifically identified and the need for the exception will be documented and explained to City Council and/or the City Manager. Accounting, Auditing & Financial Reporting Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition. Accounting Practices and Principles The City will maintain accounting practices that conform to generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government. All city financial documents, except monthly interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosure statements will meet standards. Monthly interim financial reports are on a cash basis and will be reported as budgeted. At year-end the general ledger and financials will be converted to full accrual basis Financial and Management Reports Pursuant to City Charter requirements, Interim Financial Reports will be provided monthly to management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. (CIP reporting is reported separately under Capital Improvements) These reports will be reviewed monthly with the City Manager and provided to City Council by the end of each month for the prior month. These reports will be prepared on a cash basis. Quarterly reports on the status of the City's Strategic Projects will be provided through the City Manager’s office and made available to the City Council. The reports will include project scope and work plan as well as comment on noteworthy activity. Quarterly, departments will report on service level measures and/or indicators as compared to target and prior years through the Office of Strategic Initiatives. Reporting to City Management will be on an exception basis. Annual Audit Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by a certified public accounting (CPA) firm, licensed to practice in the State of Texas. Although the Texas Local Government Code, Section 103.003 Filing: Public Record requires the annual financial statement including the auditor’s opinion on the statement to be filed with the City Secretary within 180 days after the last day of the fiscal year, it is the City’s goal to file the audit at the second City Council meeting in February. The audit firm shall provide a management letter to the City prior to the filing of the audit. The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later 192 than six (6) months following the end of the fiscal year. The Chief Accountant (or equivalent) shall be responsible for establishing a process to ensure timely resolution of audit recommendations. Finance/Audit Committee The City Council shall designate a Finance/Audit Committee. The role of the committee is to review and guide financial policy and strategic financial issues as needed and determined by the City Manager or City Council. The Finance/Audit Committee responsibilities related to the audit will include but not be limited to:  Overview of the planning and timeline of the audit and risk assessment.  Final audit review, results, findings, management letter as well as major audit adjustments.  Meet as soon as practical and appropriate after final audit review to assess the status of issues addressed in the management letter, if warranted.  Meet during the course of the audit regarding any major issues/concerns/findings that may arise. Annual Financial Disclosure As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City, with support of the City’s financial advisor and bond counsel, will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any material event notices to be filed within 10 days of occurrence of the event as required by the 2010 amendments. Signature of Checks All checks shall have two signatures. Three persons shall be authorized to sign checks: the City Manager, an Assistant City Manager or Director of Finance, and the Chief Accountant. Signatures shall be affixed to all City checks via facsimile signatures, made with a secure laser check printing system or through handwritten signatures affixed to each check. FINANCIAL CONSULTANTS The City will employ qualified financial advisors and consultants as needed in the administration and management of the City’s financial functions. These areas include but are not limited to audit services, debt administration, delinquent tax collection attorney, and financial modeling. The principal factors in the selection of these consultants will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In no case should price be allowed to serve as the sole criterion for the selection. Selection of Auditors At least every five years, the City shall request qualifications from qualified firms, including the current auditors if their past performance has been satisfactory. The City Council shall approve an independent firm of certified public accountants to perform an annual audit of the accounts and records, and render an opinion on the financial statements of the City.  It is the City's preference to rotate auditor firms every five years to ensure that the City's financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of the audit firm will be based upon the submissions received, the qualifications of the firm, and the firm's ability to perform a quality audit. 193  However, if through the review process, the current audit firm is recommended, then, it is the City’s preference that the lead audit partner be rotated as well as the lead reviewer after a maximum of five years.  Annually, the independent auditor will provide a letter of engagement to the City for annual audit services. Arbitrage While the City is responsible to ensure that the records are in order, the calculations made, reporting completed, and filings made, the actual arbitrage calculation and reporting shall be contracted out to a qualified firm.     The City’s Chief Accountant and the Arbitrage Consultant shall complete a risk assessment of positive arbitrage on each bond issue annually to determine the necessity for a calculation of positive/negative arbitrage in the current year. All bond issues in accordance with arbitrage regulation shall have each 5th year and final arbitrage calculations completed. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with the Arbitrage Consultant shall be considered evergreen, however with a termination clause. In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of arbitrage calculation fees and present a comparison and analysis to the City Manager and Finance/Audit Committee. Delinquent Tax Collection Attorney Due to the nature and expertise required, the City shall hire a delinquent tax collection attorney to collect delinquent taxes, represent the City in filing bankruptcy claims, foreclose on real property, seize personal property, and represent the City in court cases and property sales.     The City shall contract for a delinquent tax collection attorney either through Fort Bend County in conjunction with the contract for billing and collection of the City’s property taxes or shall contract directly with an attorney. The City shall review delinquent tax collection services and determine if they choose to contract direct or contract through the County either at the end of a direct contract for delinquent tax services or annually if contracted with Fort Bend County. If the City chooses to contract directly for delinquent tax collection services, requests for proposals and statements of qualifications are to be solicited at least every five year. There is not a requirement for rotation. Bond Counsel Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized attorneys who have developed necessary expertise in a broad range of practice areas, the City will always use a consultant for these services. Generally, bonds are not marketable without an opinion of nationally recognized bond counsel stating that the bonds are valid and binding obligations stating the sources of payment and security for the bonds and that the bonds are exempt from State and Federal income taxes (if applicable). Bond Counsel is responsible for the following tasks in a transaction: 194 Prepares and oversees bond proceedings; Gets required government approval; Ensures that the City meets all the legal requirements and authorization of the bond offering; Discloses and analyzes all relevant legal proceedings that may have a bearing on the validity of the offering; 5. Interprets relevant regulations and laws and assists in structuring the issue; 6. Writes key financing documents. 1. 2. 3. 4.   Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with Bond Counsel shall be considered evergreen, however with a termination clause. In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of bond counsel fees and present a comparison and analysis to the City Manager and Finance/Audit Committee. Disclosure Counsel Disclosure Counsel is an independent firm, separate from bond counsel, retained by the City to provide a legal opinion concerning accuracy of the information presented in disclosure and bond documents. With scrutiny of municipal disclosure increasing by the SEC and Municipal Securities Rulemaking Board, the engagement of disclosure counsel provides an added layer of assurance that the City’s financial position is accurately presented in bond documents.   Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with Disclosure Counsel shall be considered evergreen, however with a termination clause. In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of disclosure counsel fees and present a comparison and analysis to the City Manager and Finance/Audit Committee. Municipal Advisor Services The Government Finance Officers Association (GFOA) recommends that issuers hire a municipal advisor (MA) prior to the undertaking of a debt financing unless the issuer has sufficient in-house expertise and access to current bond market information. The City issues various types of securities to finance its capital improvement program. Debt structuring and issuance requires a comprehensive list of services associated with municipal transactions, including but not limited to: method of sale; analysis of market conditions; size and structure of the issue; preparation of disclosure documents; coordinating rating agency relations; evaluation of and advice on the pricing of securities; assisting with closing and debt management; calculating debt service schedules; and providing recommendations on management of the City’s finances, including evaluation of debt structures and refinancing opportunities.   While retaining the services of an independent registered municipal advisor (IRMA), the City shall post an IRMA Exemption Certificate on the City’s website and on EMMA (Electronic Municipal Market Access, a service of the Municipal Securities Rulemaking Board). The IRMA Exemption Certificate states that the City has retained a Municipal Advisor and that the City will rely on the advice of the Municipal Advisor in the issuance of municipal securities. The Municipal Advisor must be registered with the Securities & Exchange Commission and Municipal Securities Rulemaking Board as a Municipal Advisor 195      As municipal advisors to governmental entities have developed the necessary expertise in a broad range of services, the City will use a consultant for these services, until such time that the City wishes to bring these services in-house. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with the Municipal Advisor shall be considered evergreen, however with a termination clause. In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of Municipal Advisory fees and present a comparison and analysis to the City Manager and Finance/Audit Committee. While a municipal advisor plays a key role on the financing team, it is important to note that the City remains in control of the decision making process necessary for the issuance and sale of the bonds or implementing the financing. The selected Municipal Advisor shall not be permitted to serve as underwriter on any bond transactions while serving in the Municipal Advisor role. Upon termination of the Municipal Advisor contract, a period of one year should pass before the firm may be engaged as an underwriter on any bond transaction for the City. Depository Bank Pursuant to State law, the City of Sugar Land may approve a depository services contract whose term does not exceed five years. There is no requirement for rotation. The City of Sugar Land will select its official banking institution through a formal process based on best value in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. Depository accounts may only be opened by employees with authority specifically granted in the depository agreements approved by City Council. BUDGET AND LONG RANGE FINANCIAL PLANNING Establish guidelines for budgeting to ensure a financially sound City and to establish a long-range financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets. Balanced Budget The City Manager shall file annually, a balanced budget for the ensuing fiscal year with City Council in compliance with state law and the City Charter. In addition, it is expected that the annual operating budget will be structurally balanced. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques. If economic conditions dictate that the City Manager file a structurally imbalanced budget, it shall be accompanied by a plan to return the budget to structural balance and the resulting five year financial forecast that reflects steps to be taken to return the budget to structural balance. Current Funding Basis (Recurring Revenues) The City shall budget and operate on a current funding basis. Revenues and expenditures shall be budgeted on a cash basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis. 196 Use of Non-Recurring Revenues Non-recurring revenue sources, such as a one-time revenue remittance or fund balance in excess of policy can only be budgeted / used to fund non-recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by non-recurring sources. The following expenditures are considered non-recurring for budgetary purposes: 1. Sales Tax Incentive Grant Payment 2. Transfers to Replacement Funds (Fleet and High Technology) 3. Capital Expenditures 4. Contingency Funds The following revenues are considered non-recurring in the definition of a structurally balanced budget: 1. Grant Revenues 2. Red Light Camera proceeds 3. Dissolution Proceeds 4. Reimbursements for One Time Items 5. Short Term/Inter Fund Loans Property Taxes Tax Rate By law, the City must levy a tax rate sufficient to generate revenues that will meet outstanding debt obligations, net of outside funding sources (transfers from Other Funds). The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and meets the City Council’s expectations of services provided and service levels. As economic conditions permit, the City Manager will recommend a tax rate not greater than the effective tax rate plus 3%. The goal is not to exceed an average annual increase in the residential tax bill of 3% unless the voters approve a general obligation bond referendum. The following shall be taken into account in managing growth in the average tax bill: property revaluation, tax rate adjustments and/or changes to the residential homestead exemption. The effective tax rate is defined by the State of Texas as the tax rate that raises the same amount of total tax revenue in the current year as the prior year’s tax rate for properties taxed in both years. The effective tax rate is calculated based on a formula mandated by the state truth in taxation laws, and excludes new property value. Depending on valuation changes, the effective tax rate may be higher or lower than the prior year’s tax rate and generate the same amount of total property tax levy. The only increase in tax revenue is from new value added to the tax roll since the prior year. Homestead Exemption Annually the City Manager shall review the homestead exemption. When the financial health of the City’s finances and the economic and market conditions of the local economy justify, the City Manager shall recommend an increase to the homestead exemption to minimize the impact of revaluation on homeowners. In accordance with state statute, a recommended change in the homestead exemption shall be presented to Council for approval prior to July 1. The total exemption percentage granted shall not exceed the state limitation of 20%. 197 Over-Age Exemptions and Disabled Persons Exemption The City shall grant a $70,000 over-age exemption and disabled persons exemption each year when economic and financial conditions allow. This amount shall remain stable during the period in which the City is considering adjusting the homestead exemption. If a tax freeze were ever implemented for over-age and disabled persons, these exemptions would be reduced to zero. (Chapter 2 Article V Sec 2-119, Code of Ordinances) Sales Tax Sales tax used to fund recurring operations shall be capped at50%. As sales tax revenue fluctuates due to changes in economic conditions, the City shall endeavor through long-term strategies to reduce its reliance on sales tax revenues for funding recurring operating expenditures. The goal is to maintain sales tax for operations well under 50%, and use the sales tax transfer for PAYG CIP to manage this dependence. Sales Tax from Incentive Grant Agreements 1. Sales tax revenues generated from incentive grant agreements will not be used to fund recurring operating expenditures but rather non-recurring capital purchases, economic development projects or capital improvement projects. 2. As the economic development sales tax is intended for use to promote economic development activities, the City shall strive to fund incentive agreements from economic development sales tax first, then from general fund sales taxes. 3. The portion of the City’s sales tax adopted for property tax reduction shall not be included in the calculation of incentive grants. Sales Tax Transfer for Pay-As-You-Go Capital Projects As discussed under Capital Expenditures, to ensure that the City does not become overly reliant on sales tax revenues for operating needs, a transfer from General Fund sales tax to fund pay-as-you-go capital projects will be budgeted with a target of 10% of the annual General Fund budgeted sales tax, when it is financially feasible. The long-term goal is to adequately fund rehabilitation through ongoing maintenance. Water/Wastewater Transfer for Pay-As-You-Go Capital Projects As discussed under Capital Expenditures, the transfer from the City's Utility Fund to fund pay-as-you-go capital projects will be budgeted at a target of $2,000,000, when financially feasible. It will be based on the financial health of the Utility Fund with the long-term goal of adequately funding rehabilitation. Revenue Estimating for Budgeting In order to protect the City from revenue shortfalls and to maintain a stable level of services, the City shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, historical collection rates, and trends. This approach should reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid-year service changes. The Utility Fund water and wastewater revenues will be budgeted based on an average year’s rainfall/consumption. The City will anticipate neither drought nor wet conditions. Adjustments to utility rates shall be made based on revenue requirements over the five year forecast for the utility fund. 198 Employee Compensation When funding is available, the proposed budget shall include an amount adequate to cover an overall average performance and merit increase as determined annually by the City Manager. This amount will be calculated for each department, based on budgeted salaries for the year, and will be placed in the appropriate budget accounts. The City does not give cost of living increases. Other than adjustments due to changes in the compensation plan, salary increases are to be earned through merit and/or promotion increases. The City’s compensation plan shall be approved by City Council and administered by the City Manager as identified in the City Charter and the Council adopted Compensation Philosophy (Resolution 13-21). All employees shall be paid within the approved budget and established salary ranges. Budget Management The budget is adopted by City Council through one reading of an ordinance. Upon approval, the budget can be either amended or adjusted based on the level of changes needed.  Amendment- an increase to the overall appropriation in the fund or capital project. Must be approved by City Council through one reading of an ordinance.  Adjustment- a reallocation of funds between departments without changing the total operating fund budget. Must be approved by the City Manager Operating Budget Adjustments The City Manager is responsible for managing the operating budget after it is formally adopted by City Council, including the transfer of funds within program, between programs, between departments, and expenditure of contingency funds as long as there is no change in service levels as a result of the adjustments. The City Manager may further delegate levels of authority for the daily operation of the budget. Operating Budget Amendments In order to preserve projected fund balances/ ending balances based on projected revenues and expenditures for the current fiscal year, City Council will amend the annual operating budget for all funds, excluding capital improvements funds, as set forth in the projections. City Council will amend the current fiscal year budget to projections annually through adoption of an ordinance amending the budget. Contracts or purchases presented for City Council approval shall identify the budgeted amount for the item within the current approved budget. A budget amendment by City Council is only necessary if the total appropriation for the fund is increased. This could occur under, but is not limited to, the following situations: 1. The budgeted appropriation will be exceeded at the fund level prior to year end. 2. Acceptance of a grant that was not included in the annual budget. 3. Appropriation from fund balances for items that were not budgeted. 4. A donation or sponsorship that exceeds estimated revenues and cannot be absorbed in contingency funding. To streamline the process, budget amendments are to be considered by City Council on an as-needed basis and then formally adopted by ordinance periodically. Each budget ordinance shall summarize and include all budget amendments approved by City Council for affected funds since the last ordinance was approved. At year end, the annual operating budget will be amended by ordinance through projections and will reflect adjustments that were approved by the City Manager. 199 Capital Projects Budget Amendments As capital projects are budgeted on a project length basis and not a fiscal year basis, a project budget needs approval of a budget amendment when one of the following applies: 1. Increase to project funding with a corresponding increase in revenues a. Inter-local Agreements b. Award of a grant to enhance or expand the project 2. Reallocation of funding from one capital project to another, except: a. When splitting funding for a project into multiple projects for tracking purposes when the total amount budgeted for the overall project does not change, or b. When allocating additional funds from CIP fund balance to a project to accommodate a change order, as long as the additional funding needed does not exceed the lesser of 5% of the original project budget or $50,000, and the change order does not need approval from City Council nor materially change the scope of the project. 3. Increase to project funding from the Capital Projects Fund Balance 4. Reduction to project budgets as discussed below Capital Project budgets shall be amended (reduced) when construction bids come in significantly under estimates, project estimates shall be adjusted to reflect the construction bid plus a sufficient contingency and other project needs, and the remaining budget shall be reduced as necessary to reflect savings. When a project is funded from the issuance of debt, if the debt has not been sold at the time of the budget reduction, the revenue budget for bond proceeds shall be reduced accordingly. Operating Deficits The City shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue reestimates are such that an operating deficit is projected at year end. Corrective actions in order of precedence are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Reduce transfers to the Capital Improvement Fund for pay-as-you-go CIP. Manage Vacant Positions Deferral of capital purchases Expenditure reductions Hiring freezes Freeze merit increases Use of fund balance, including Replacement Fund balances. Increase fees Lay-off employees Short-term loans shall be avoided to balance the budget. The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level. Five-year Forecast of Revenues and Expenditures A five-year forecast of revenues and expenditures shall be prepared in conjunction with the annual budget process for the following funds:  General Fund 200        Debt Service Fund Tourism Fund Water/Wastewater Utility Fund Surface Water Fund Airport Fund Economic Development Corporations Five-Year Capital Improvement Program The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City's goals. The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. The forecast will be used to identify anticipated financial issues so that a plan can be developed to correct anticipated issues before they become reality. REVENUES AND OTHER RESOURCES The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. The Budget Office shall maintain a revenue manual documenting the various revenue sources of the City and how those revenues are derived and estimated. Property Taxes a. Taxes on Airport Value- Property taxes collected on taxable property at the Airport will be transferred to the Airport Fund to use for operations and development. This will ensure that users paying the property tax will see a direct benefit to the Airport. b. Rebates to Municipal Utility Districts (MUDs) – As stipulated in the individual utility agreements, the City has agreed to rebate a portion of City taxes collected on properties within in-city MUDs back to the districts through various utility agreements. Rebate payments shall be calculated based on the taxes collected by the City on properties within the district since the point of the last rebate calculation (quarterly or semi-annually depending on the MUD), less any refunds given on those properties during that period. c. Payments to Tax Increment Reinvestment Zones (TIRZ)- The City has several TIRZ established within the City. Taxes paid to the City on properties in each zone are paid to each TIRZ annually; payments due shall be adjusted for any refunds given on those properties since the last TIRZ payment was made. Sales Tax Revenue a. Monthly, the Economic Development Corporations will be allocated their percentage of the actual monthly sales tax remittances. b. Of the remaining monthly amount available to the City, funds will be allocated first to General Fund operations, based upon the budgeted sales tax for operations, to ensure operating expenditures are funded. Transfers of Sales Tax to the Capital Projects Fund shall be made upon funds availability. c. Each month the City will ensure that the cumulative sales tax for operations is met and will appropriately adjust the transfer to the Capital Improvement Fund as necessary. d. Actual sales tax revenue received above the amount budgeted on an annual basis and over the fund balance policy will only be used to fund non-recurring expenses or be transferred to the Capital Improvement Fund for pay-as-you-go capital improvement projects. 201 e. Sales Tax from Sale of Aircraft 1. Sales/Use tax remitted to the City that is determined to be from the sale/purchase of aircraft at the City’s Airport will be transferred to the Airport Fund, excluding the percent allocated to the Economic Development Corporations. 2. The proceeds that are allocated to the Economic Development Corporations will be identified as potential funding for Airport projects that legally meet the requirements of the Corporations. Administrative Services Charges The City shall determine annually the administrative services charges due to the General Fund from the enterprise funds for overhead and staff support using a cost allocation model. Utility Transfer to the Debt Service Fund for Assumed Water/Wastewater Debt The Utility Fund shall transfer to the Debt Service fund an amount/percent calculated annually for water/wastewater infrastructure debt assumed by the City due to annexation and dissolution of municipal utility districts. a. The goal is to have water/wastewater debt funded by water/wastewater revenues as much as possible within the financial resources of the Utility Fund. b. The City’s intent is to fund a transfer amount that equates to 100% of the annual debt service requirements for water/wastewater debt in the Debt Service Fund. c. If the City should assume additional debt from municipal utility districts in the Debt Service Fund, the annual transfer for water/wastewater infrastructure debt will be reviewed and recalculated, if necessary. Surface Water Revenues The City will maintain a Surface Water Fund to account for revenues and expenses associated with the mandated reduction in groundwater usage. a. All participants in the City’s Groundwater Reduction Plan will pay into the fund an amount based on water supplied at a rate established per 1,000 gallons (GRP fee). b. The GRP fee shall be paid monthly based on metered water pumped from groundwater sources. c. City customers will be billed a surface water fee based on billed water consumption. The City shall contribute monthly GRP fees to the Surface Water Fund for City customers. Water/Wastewater Billings Water, wastewater and surface water charges are billed in arrears, as customer meters are read monthly for the previous month’s water usage. At year end, revenues are accrued to adjust revenues to full accrual basis but during the year, revenues are recorded on a modified accrual basis (when billed). Revenue Collections The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City. a. The City shall contract for billing and collection services when it makes financial sense to do so. For example, Emergency Medical Transport billing requires a high level of knowledge relating to medical 202 billing that the City does not currently possess; in this case, outsourcing the billing & collection of EMS transport fees is the most prudent thing to do. b. The City shall contract for collection of delinquent receivables when it makes economic sense for the City to do so. The City currently contracts directly for the following delinquent receivables: a. Court Fines & Warrants b. Photographic Traffic Signal Fines c. Emergency Medical Services d. Miscellaneous Receivables, including Alarm Response Fees c. Write-off of Un-collectible Receivables (excludes court fines and warrants) a. Receivables shall be considered for write-off as follows: i. Undeliverable mail – accounts that remain outstanding for 6 months and all steps have been exhausted ii. State Statute authorizing the release or extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable iii. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken iv. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City. v. The City shall estimate uncollectible accounts through an allowance for doubtful accounts in each fund with receivables. User Fees The City shall design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired City services. General Fund a. For services that benefit specific users the City shall establish and collect fees to recover the costs of those services. b. Where services provide a general public benefit, the City shall finance those services through property and sales taxes. c. For services that provide both specific benefits and a general public benefit, it may be appropriate to subsidize from property and sales tax revenues. d. Costs of Services are defined as full-cost; direct, indirect, and overhead. e. Factors in setting of fees shall include but not be limited to: market and competitive pricing, effect on demand for services, and impact on users, which may result in recovering something less than full cost. Enterprise Funds a. Utility rates and other fund user fees shall be set at levels sufficient to cover operating expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay-as-you-go funding for capital improvements, and provide adequate levels of working capital. b. The City shall seek to eliminate all forms of subsidization between the General Fund and Enterprise Funds c. The Five-Year Financial Plan shall serve as the basis for rate change considerations. d. If rate increases are necessary, the Five-Year Financial Plan shall be built around smaller rate increases annually versus higher rate increases periodically. 203 User Fee Creation and Revision Working with the department or office, the Budget Office will determine the cost for each service and determine a full-cost price. Once a fee has been proposed for a particular service, the fee will be compared to market, evaluated for potential effects on users such as low-income households, market demands of service, etc. A fee will then be recommended to the City Manager and City Council based on all information gathered through the fee evaluation. User fees shall be adjusted by the Houston- Sugar Land- Baytown MSA CPI annually as part of the budget process, and a fee ordinance shall be adopted at the beginning of each fiscal year to reflect the fee revisions. Fee changes will be reflected for all activity billed or generated after the effective date of the fee revision. Non-Resident Surcharges For services provided to municipal utility districts or individuals who reside outside the city limits, the City may assess an out-of-city service fee or non-resident user fee. The surcharges shall be set either as an additional percentage fee or a separate fee for non-residents and can be established by ordinance or by contract. EXPENDITURES AND SERVICES Operating Expenditures Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services. Purchasing and Vendor Selection The City Manager shall maintain policies and procedures to ensure compliance with state laws relating to procurement of goods and services. It is the policy of the city that, when lowest qualified bid is not the sole determining factor for a contract award, the contract shall be awarded to the highest ranked vendor based on merit as determined by a thorough evaluation by a team of at least 3 qualified staff evaluators, as identified in the City’s inter-departmental policy PU109 . Merit factors that can be taken into consideration include: qualifications, past experience, quality of team, equipment, scheduling, and proven performance. In accordance with state law, City Council approval is required on purchases that will expend more $50,000 of City funds. After Purchasing verification that all applicable state laws, purchasing policies, and procedures have been followed, a recommendation for award is made to City Council by staff. Departmental & Office Business Plans Departments and Offices shall prepare a business plan to define their operating objectives. a. The business plan should provide a link between the budget and the services provided; there should be no gaps or holes in accountability, either in accounting for resources provided or in defining services delivered. b. The business plan shall include an organizational chart, service description and service levels, and measures that indicate how well the service is being delivered. c. The business plan shall include an explanation of how services are delivered (by city staff or contracted) and expected results of the service delivery. 204 Annual Program of Services Annually, as part the budget document, a program of services for each department will be established for the ensuing year. The program of services will include a summary of services and service levels from the business plan, as well as service level expectations and staffing levels. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at a sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain service levels. Periodic Program/Service Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Outsourcing and contracting with other governmental agencies and/or the private sector will be evaluated as alternative approaches to service delivery. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated. Outsourcing of City Services The City provides many municipal services to its citizens covering a wide variety of disciplines. Attempting to perform all of these services in-house could dilute the City’s efficiency and not be cost effective. Two of the management tools utilized by the City to maximize efficiency and cost effectiveness are outsourcing and managed competition processes, the mere consideration of which provides economic benefits that flow from competition. The economic benefits of competition include lower costs and improved quality of performance irrespective of whether a given service is ultimately performed in-house or outsourced. FUND BALANCE/WORKING CAPITAL Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City’s creditworthiness as well as its financial position during emergencies or economic fluctuations. Should the budgeted fund balance drop below the minimum identified by the policy below, the City will establish a plan to replenish the balances within two years. Governmental Fund Balances There are five categories of Fund Balance in all governmental funds, not all will always be present. The categories are defined below: 1. Non-spendable- cannot be spent due to being non-spendable in form or the city being legally or contractually required to maintain this amount intact. 2. Restricted- balances are subject to external restrictions from creditors, grantors, contributors, or laws of other governments. 3. Committed- use of funds is only for specific purposes as determined by City Council. City Council will approve obligations of funds such as multi-year contracts prior to the end of the fiscal year. 4. Assigned- intended use of balances for specific purposes is established by the City Council or delegated to the City Manager that is neither restricted or committed and includes the remaining positive balance of all governmental funds except the General Fund. Balances for encumbrances, other than those committed by City Council, fall into this category. 5. Unassigned- balances are available for any purpose; excess fund balances after above categories have been deducted. This type of balance is reported in the General Fund and negative fund balances in other than General Fund. 205 General Fund Unassigned Fund Balance The City shall maintain the General Fund unassigned fund balance equivalent to three months of normal recurring operating costs, based on current year budgeted expenditures. If the fund balance exceeds this amount, the amount in excess of policy requirements may be utilized to fund one-time expenditures in the next fiscal year’s budget. Other governmental operating funds that do not have a policy minimum defined shall adhere to the general fund balance policy. The City will typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. Working Capital of Enterprise Operating Funds In enterprise operating funds, the City shall maintain working capital sufficient to provide for reserves for emergencies and revenue shortfalls, specifically in the Utility and Airport Funds. Enterprise funds without major infrastructure or assets will have no minimum balance requirement. A cash equivalent operating reserve will be established and maintained as follows: 1. Utility Fund - 25% of the current year's budget appropriation for recurring operations and maintenance. 2. Airport Fund - 25% of the current year's budget appropriation for recurring operations and maintenance, excluding fuel for resale. 3. Surface Water Fund – 50% of the current year’s budgeted expenses. Funds in the reserve may be utilized as a general purpose reserve without limitation to type (debt, capital expense, etc). The cash equivalent operating reserve is derived by dividing the total cash equivalents balance by recurring operating expenses. (Cash equivalents = Cash + Investments + Accounts Receivable – Accounts Payable) Use of Fund Balance/Working Capital Fund Balance/Working Capital shall be used only for emergencies, non-recurring expenditures/ expenses, or major capital purchases that cannot be accommodated through current year savings. Should such use reduce balances below the level established as the minimum for that fund, the request/decision to utilize said balances will include a plan to replenish funds within two years. Inter Fund Loans Through the long range financial planning process, the City may identify a short term capital financing need that does not qualify for debt financing, and funds are available in special revenue or enterprise funds balances. An Inter Fund Loan is a loan from one fund to another that specifies repayment terms, and requires approval by City Council Resolution. Inter Fund Loans may not be used to support operating needs, but are allowable for cash flow needs related to capital projects involving third party financial transactions, such as grants or reimbursements. Inter Fund Loans may be considered in cases where a short term loan is needed to cash-flow a project that does not qualify for tax-exempt bond financing. An example of this situation, but not limiting to this case, is a future reimbursement by a grant or developer for project funding that needs to move forward prior to funds being available. This is similar to how the IRS allows the City to reimburse itself from future bond proceeds, except the funds are coming from a source other than tax exempt bonds. Inter Fund Loans may be considered when 206 one fund has excess reserves (over policy requirements) that are not anticipated to be needed prior to repayment. The Inter Fund Loan shall be documented by City Council Resolution and shall define the following: 1. Source of the Funding 2. Use of the Funds (project) 3. Maximum Amount 4. Repayment Schedule 5. Interest accrual, consistent with City investment rates The proposed inter fund loan shall be identified during the annual budget and CIP process as a funding source, and discussed with the Council Finance/Audit Committee prior to the Resolution being considered by City Council. Debt Service Funds The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater. The City shall maintain a separate Debt Service Fund for any taxable bonds. This debt service fund shall have a reserve requirement separate from the tax –exempt debt service fund to be defined in the bond documents as bonds are issued. Internal Service Funds 1. Fleet Replacement Fund-The Fleet Replacement Fund reserve will be maintained based upon a lifecycle or useful life replacement plan to ensure adequate fund balance required for systematic replacement of fleet vehicles. Fund Balance shall not be less than 10% of the total inventory asset value. 2. Technology Replacement Fund- The High Technology Replacement Fund reserve will be maintained based upon a lifecycle or useful life replacement plan to ensure adequate fund balance required for systematic replacement of technology. Fund Balance shall not be less than 10% of the total technology asset value. 3. Employee Benefits Fund- The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund. Special Revenue Funds Tourism Fund is supported by a 7% City tax on hotel occupancy within the City, which can fluctuate based on changes in the economy. A fund balance no less than 10% of budgeted occupancy tax collections shall be maintained in the fund. Economic Development Corporations As sales taxes fluctuate due to changes in the economy, the SLDC and SL4B Corporations shall maintain an unreserved fund balance of no less than 10% of budgeted sales tax collections. By fiscal year 2018 each corporation shall maintain a minimum fund balance of 15% of budgeted annual sales tax revenues. 207 CAPITAL EXPENDITURES AND IMPROVEMENTS City staff will review and monitor the state of the City’s capital equipment and infrastructure annually, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. Capitalization Threshold for Tangible Capital Assets Tangible capital items should be capitalized only if they have an estimated useful life of at least two years following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and has a cost of not less than $5,000 for any individual item. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items, (i.e.: desks, chairs, etc.) unless doing so would have a material impact on financial reporting. The capitalization threshold for infrastructure will be $50,000 or more. GASB requires software to be capitalized if criteria described in GASB Statement 51 (Accounting & Financial Reporting for Intangible Assets) is met. Internally developed or contracted development of or off-the-shelf and then modified software should be capitalized given cost & useful life threshold is met. Other licensed software implemented without modification or minimal modification is not capitalized. To maintain adequate control over non-capitalized tangible items, items costing $1,000 to $4,999 will be monitored and tracked through the City’s financial software system. Five-Year Capital Improvement Plan (CIP) The City shall annually prepare a five-year capital improvement plan based on the needs for capital improvements and equipment, the status of the City’s infrastructure, replacement and renovation needs, and potential new projects. Capital projects are improvements or additions to the City's physical plant/facilities and become part of the City's asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines, etc. Capital costs typically consist of preliminary design, final design, and construction, and may involve the acquisition of land or easements. For every project identified in the plan, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed. Citizens, Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of CIP projects for the Five-Year Capital Improvement Plan and may suggest additions and/or changes to the plan as appropriate. Pursuant to the City Charter, the Planning & Zoning Commission makes recommendations to the City Manager and the City Council on the City’s Five-Year Capital Improvement Plan. The City Manager is charged with recommending a Capital Improvement Plan to City Council. Projects submitted, either by staff, through a neighborhood or citizen request, or through joint participation, will be reviewed in conjunction with the entire capital improvement program and submitted to City Council for final consideration. The Five-Year Capital Improvement Plan shall be filed and year one funding approved with the annual budget. Years two through five are for planning purposes only, and may move up, back, or be phased as the project becomes more refined based on preliminary engineering and design work gets completed. The Five-Year CIP shall be limited to the affordability limits identified in the long-range financial plans of the City, taking into consideration pay-as-you go funding debt capacity, operating costs, etc. 208 Projects that cannot be funded in the Five Year CIP will be included in the CIP for future reference as an appendix of unfunded requests. The City will establish and maintain Capital Project Funds based on various funding sources as identified below:  General Capital Projects (non-bond) - includes projects funded from general fund sales tax transfers, corporation reimbursements, grants and other funding sources. Includes rehabilitation of infrastructure to extend its useful life.  General Capital Projects (tax-exempt bond funds)- supported by proceeds of tax exempt bonds that are to be repaid from property taxes and interest earned thereon; projects funded from this source must be consistent with the uses identified in the bond documents.  Taxable Bonds Capital Projects- supported by proceeds of taxable bonds that are to be repaid from sources other than property taxes.  Utility Enterprise CIP (non-bond) - includes projects funded from revenues of the utility system. Includes rehabilitation of infrastructure to extend its useful life. Revenues are budgeted as a transfer from the Utility System Operating fund.  Utility Enterprise CIP (bond funds) - supported by proceeds of tax-exempt bonds that are to be repaid from enterprise utility revenue sources. Bonds payable are recognized in the Utility Enterprise Fund as long term liabilities.  Surface Water CIP (non-bond)- includes projects funded from revenues of the surface water fund. Includes projects that facilitate the objectives of the Groundwater Reduction Plan. Revenues are budgeted as a transfer from the Surface Water Operating fund.  Surface Water CIP (Bond Funds)- supported by proceeds of tax-exempt bonds that are to be repaid from the Surface Water Enterprise Fund. Bonds payable are recognized in the Surface Water Enterprise Fund as long term liabilities.  Airport Enterprise CIP (non-bond) - includes projects funded from revenues of Sugar Land Regional Airport and outside funding sources. Revenues are budgeted as a transfer from the Airport Operating fund or as grants from third parties (FAA/TxDOT).  Airport Enterprise CIP (bond funds) - supported by proceeds of tax-exempt bonds that are to be repaid from enterprise airport revenues. Bonds payable are recognized in the Airport Enterprise Fund as long term liabilities. Annually, through the budget process and at year-end, projects are to be reviewed and if identified as complete will be closed according to the Project Close out Procedure by Budget & Research and any remaining funds closed to the CIP fund balance, which can then be re-appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. Appropriations for capital projects are for the life of the project; therefore re-appropriation of capital funding for budgeted projects will not be necessary. 1. Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities, and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well-being of the City. As a result, the City’s CIP should be focused on ensuring that infrastructure is replaced or rehabilitated as necessary to protect the City’s investment, to minimize future replacement and maintenance costs, extend the useful life of the asset, and to maintain existing levels of service and accommodate growth. 209 Infrastructure will be replaced or rehabilitated at the end of its useable service life if it is financially feasible to do so. 2. If upgrades are warranted to meet current design standards, a cost/benefit analysis will be performed. (See Infrastructure Evaluation Policy) Community Redevelopment Projects A Community Redevelopment Project is a capital project approved, funded, and implemented within an identified neighborhood for the purpose of upgrading public infrastructure to an established standard without regard to the remaining serviceable life of the infrastructure. Requests will be reviewed and prioritized in conjunction with the entire capital improvement program and within the City’s financial ability for pay-as-yougo funding, not to exceed ½ of one percent of the total City operating budget. There will be a dollar for dollar match to City funds from non-City third-party sources. (See Capital Improvement Projects for Community Redevelopment Policy) Joint Capital Improvement Projects The City will establish guidelines for City participation in Joint Capital Improvement Projects with community based organizations that would either add to or enhance the City’s Five-Year Capital Improvement Plan (See Resolution 14-27, Policy No. 5000-09 Joint Capital Improvement Projects with Community Based Organizations using Sugar Land 4B Funds) The projects must benefit the general public and be located in the public right of way. In the proposed budget, $200,000 will be set aside annually for the City’s participation in these type projects, funded through the Sugar Land 4B Corporation, pending funds availability. A maximum of $75,000 will be contributed to any one project, and in no case will the Corporation contribute over 50% of project funding. The request will be reviewed, verified to ensure the request meets the criteria set forth in the policy, and prioritized within the financial ability of the Sugar Land 4B Corporation. Replacement of Capital Assets on a Regular Schedule (Fleet and Technology) The City shall annually prepare a schedule for the replacement of its fleet and high technology capital assets. Funding for the replacement of these assets will be accomplished through the use of an annual depreciation structure charged to each participating fund at 100% of annual depreciation based on lifecycle or useful life of the asset. Within the resources available each fiscal year, the City shall replace these assets according to the Fleet and High Technology Replacement Policies. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance/working capital as allowed by the Fund Balance/Working Capital Policy; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements. Pay-As-You-Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Sugar Land citizens. 210 2. Pay-as-you-go projects shall be budgeted based on funding available in the section on Revenues 3. Unless CIP balances are sufficient to pre-fund pay-as-you-go projects, scheduling of pay-as-you-go capital improvement projects shall coincide with the collection and accumulation of sales tax and system revenues. CIP projects shall be initially scheduled based on the budgeted accumulation of funding. CIP projects funded by pay-as-you-go funding must receive approval from the Budget Office before they begin, to ensure funding is available. Capital Projects Management Capital project status reports shall be completed by project managers monthly, and project status and issues shall be reported to the City Council quarterly. a. Project Close Out- A project will be closed once the original scope of the stated project has been completed as determined by Engineering and the project manager. b. Remaining Funds- Funds left in a project after completion shall be closed out and fall to the CIP fund balance. Engineering, Accounting and Budget will identify and close out projects on a quarterly basis to facilitate identification of funds that can be used for other projects. c. Annual rehabilitation projects- unused funds budgeted for annual rehabilitation and repairs will close out at the end of each fiscal year if not encumbered. DEBT Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligations, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance/working capital and to fund infrastructure improvements and additions. Debt will not be used to fund current operating expenditures. The City will pay cash when possible for capital improvements within the financial affordability of each fund versus issuing debt when funding capital expenditures and capital improvements. Projects that are rehabilitative in nature shall be earmarked for funding from cash instead of debt when possible. (This is not intended to include reconstruction projects that significantly extend the useful life of an asset.) Cash sources include, but are not limited to general fund sales tax, utility and airport system revenues, economic development corporation funding, developer fees, inter-local agreements, and state and federal grants. Bond Ratings In evaluating the issuance of additional debt to finance projects, the City shall consider the statements of the rating agencies in regards to the City’s financial condition. Ratings reflect the assessment of the following factors, and these should be evaluated to determine the impact of potential bond issues:  Local economic activity  Strong financial policies as evaluated under the Financial Management Assessment methodology  Budgetary performance & flexibility  Total liquidity and reserve balances  Debt and contingent liability- evaluation of debt carrying costs as a percent of expenditures 211  o With adjustments for self-supporting debt Impact of future debt issuance on bond ratings/debt profile and outlook Affordability The City shall use an objective analytical approach to determine whether it can afford to issue new generalpurpose debt, both General Obligation bonds and Certificates of Obligation. This process shall compare City accepted standards of affordability to the current values for the City. These standards may include debt per capita, debt as a percent of taxable value, taxable value per capita, and tax rate. The process shall also examine the direct costs and benefits of the proposed expenditures. In addition, the analysis will evaluate the capacity within the General Fund to take on the operating expenditures associated with the completion of the proposed capital improvements. When a project will have a significant impact on the operating budget, the tax rate shall be shifted from debt service to maintenance & operations to support the increased expenditures. Further debt capacity shall be evaluated based on the remaining debt service tax capacity. The decision on whether or not to issue new debt shall be based on these costs and benefits, current conditions of the municipal bond market, and City’s ability to “afford” new debt as determined by the aforementioned standards. Debt Capacity The City shall complete an annual debt capacity assessment to ensure that proposed debt is affordable and contributes to the financial strength of the City. The debt capacity is the upper limit on the dollar amount of capital improvements that the City can afford to fund from debt. Debt capacity calculations for long-term planning shall assume market rates for the average annual interest costs at the time the capacity is determined. The analysis shall not assume future refunding of any outstanding bonds and shall consider both debt service requirements on current and proposed debt. For property tax supported debt, maximum capacity shall be determined by an amount of annual debt service that the City can absorb within the proposed tax rate allocation for debt based on assumed growth in assessed valuation. For revenue debt, maximum capacity shall be determined by the amount of annual debt service that the City can absorb within a proposed rate structure that has been reviewed with City Council and which can support the proposed debt within the additional bonds test as defined in the revenue bond covenants. The City shall not exceed debt capacity as defined through bond covenants or fall below bond coverage ratios for additional revenue bonds. Factors that will be included in the annual debt capacity determination shall include:         Existing debt obligations Evaluation of revenue and expenditure trends Various measures of debt burden on the community Debt per capita Debt to assessed value ratio Taxable value per capita Statutory or constitutional requirements Market factors such as interest rates, credit ratings or market status 212 Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. However, it is the policy of the City to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City’s ability to assume additional debt based on the standards identified above. Circumstances in which Certificates might be issued include, but are not limited to the following:  The City may issue CO’s when there is insufficient funding on a general obligation bond-financed capital improvement;  The City may issue CO’s when conditions require a capital improvement to be funded rapidly rather than waiting for a GO bond election;  The City may issue CO’s for projects when the City can leverage dollars from others to reduce the City’s capital cost for a community improvement;  The City may issue CO’s for projects when there is no other funding source available and the project is determined to be in the best interest of the City.  The City may issue CO’s if it would be more economical to issue Certificates of Obligation rather than issuing revenue bonds; and  The City may issue CO’s for projects for which the City will be reimbursed by Developer (principal plus interest) General Obligation Bonds (GO) General Obligation bonds require voter approval. When the list of unfunded projects contains projects that the City Council wishes to fund but cannot afford, then the City will consider taking a GO Bond Proposition(s) to the voters. 1. Bond Electionsa. Timing of general obligation bond elections shall be determined by the inventory of current authorized, unissued bonds remaining to be sold and the Five-Year Capital Improvement Program b. The total dollar amount of bond election propositions recommended to the voters may not exceed the City's estimated ability to issue the bonds within a seven year period after the election passes. c. An analysis showing how the new debt combined with current debt impacts the City’s tax rate and debt capacity will accompany every bond issue proposal. The analysis will also include the estimated impact on the operations and maintenance portion of the tax rate. 2. General Obligation bonds must be issued to accomplish projects identified in the bond referendum and associated material. 3. General Obligation bonds must be issued for projects that are consistent with the wording in the bond propositions. Revenue Bonds For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall be a minimum of 125% of the average annual debt service and 110% of the debt service for the year in which debt requirements are scheduled to be the greatest. Annual adjustments to the City’s rate structures for enterprise funds will be made as necessary to maintain the coverage factor. When the City issues CO’s for enterprise fund projects, the City shall prepare a five year financial plan to ensure that the enterprise fund maintains -appropriate reserves and coverage without overly burdening rates and user fees. 213 General purpose reserves in the Surface Water Fund shall be maintained at levels high enough to meet debt service payments should pledged revenues fall short of projections in addition to serving as a normal operating reserve. Debt Structures       The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 25 years for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining debt repayment schedules and shall seek to retire 50% of the total principal outstanding within 10 years of the year of issuance. There should be no debt structures that include increasing debt service levels in subsequent years, with the first and second year of a bond payout schedule the exception or as special situations may warrant. There shall be no “balloon” bond repayment schedules, which consist of low annual payments and one large payment of the balance due at the end of the term. There shall always be at least interest paid in the first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year after the bond issue. Normally, there shall be no capitalized interest included in the debt structure except for debt issuances reimbursing developers for infrastructure, which shall not exceed 2 years of capitalized interest. Debt Refunding The City’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless (1) a debt restructuring is necessary or (2) bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt. Interest Earnings and Remaining Bond Proceeds Interest earnings on bond proceeds will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued. Issued but unspent bond proceeds may be appropriated for projects consistent with the ballot language after completion of projects identified in the approved bond propositions. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing. The City shall award the bonds based on a true interest cost (TIC) basis. However, the City may award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis can satisfactorily determine the lowest and best bid. Underwriting Syndicates In response to the MSRB Rule G-17, which recognizes that the motivations of an underwriter may not be consistent with the best interest of the City, the City shall refer underwriters to its Municipal Advisor to review potential refunding opportunities. The City’s municipal advisor is prohibited from underwriting the City’s bonds while under contract with the City for municipal advisory services, and for a period of one year after termination of the municipal advisory contract. The City will consider past participation and results of competitive City of Sugar Land and component unit bond sales when engaging one or more firm to underwrite a negotiated bond transaction. 214 Rating Agency Presentations Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. City staff, with the assistance of financial advisors, shall prepare the necessary materials and presentation to the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, currently Standard & Poor's and Fitch Inc., as recommended by the City's municipal advisor. Bond Ratings The City will prudently manage the General, Economic Development Corporations, and Enterprise Funds and attempt to issue and structure debt to help maintain or increase the current bond ratings. Lease/Purchase Agreements The City will use lease/purchase agreements for capital items (such as fire trucks) when it is cost-efficient and provides for more attractive terms than issuance of bonds. CASH MANAGEMENT AND INVESTMENTS To maintain the City's cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield in compliance with the Public Funds Investment Act (Chapter 2256 of the Local Government Code or equivalent provision) and the City’s Investment Policy & Strategy, as adopted annually by City Council. Investment Management Investment Policy All aspects of cash/investment management shall be designed to ensure safety and integrity of the City's financial assets. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. Please reference the City’s Investment Policy as adopted annually by City Council. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and such other aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets. Investment Strategy The City of Sugar Land maintains a consolidated portfolio in which it pools its funds for investment purposes. The City's investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yield commensurate with the preservation of principal and liquidity. Refer to the City’s Investment Strategy as adopted by City Council annually for detail. Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided. Arbitrage Investments and Reporting The City's investment position as it relates to arbitrage is as follows: Investments on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive rate of return. Investment of bond proceeds will be clearly tracked and investment earnings recorded for arbitrage purposes. 215 Depository The City of Sugar Land will select its official bank depository through a formal bidding process in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. The City will at a minimum, bid depository services every five years. Only officials authorized by the City Council through the depository contract may open accounts in the name of the City or its component units. Collateralization of Deposits The City of Sugar Land shall have pledged collateral held at an independent third-party institution and evidenced by a written receipt. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent of par or market value of the investments, whichever is greater. The City’s depository bank monitors the required collateral and makes necessary adjustment to increase or decrease it. Substitutions of collateral shall meet the requirements of the collateral agreement and have prior written approval. Collateral shall not be released until the replacement collateral has been received. The pledge of collateral shall comply with the City's Investment Policy. GRANTS The City will seek, apply for, and effectively administer federal, state and local grants, which support the City's current priorities and policy objectives. Grant Guidelines The City shall apply and facilitate the application for only those grants that are consistent with the objectives and high priority needs identified by Council and City Management. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs. The potential for incurring ongoing costs, to include assumptions of support for grant-funded positions from local revenues, will be considered prior to applying for a grant. Grant Review and Acceptance All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the City's goals. If there is a cash match requirement, the source of funding shall be identified prior to application. (Refer to City’s Inter-Departmental Grant Policy AC104) All grants over $50,000 awarded to the City of Sugar Land must be submitted to City Council for consideration and approval. All grants must be reflected in the budget. Grants may be officially accepted by action of the City Council during budget adoption or with a budget adjustment. If the funding is not already included in the annual budget, the budget shall be amended to reflect revenues and expenditures associated with the grant. Grant Termination and/or Reduced Grant Funding In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process, unless the City is obligated through the terms of the grant to maintain the positions. 216 The City shall terminate grant-funded programs and associated positions when grant funds are no longer available, and it is determined that the program no longer supports City goals and/or is no longer in the best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the positions after the grant period ends. 217 CITY OF SUGAR LAND SALARY STRUCTURE FOR NON-EXEMPT POSITIONS FY18 - PROPOSED N-01 COURIER CUSTODIAN RECEPTIONIST $ 12.58 $ 26,166 $ 15.97 $ 33,218 $ 19.37 $ 40,290 N-02 COURT CLERK CUSTOMER SERVICE REP GENERAL MAINTENANCE WORKER I RECORDS CLERK WARRANT CLERK $ 13.21 $ 27,477 $ 16.77 $ 34,882 $ 20.32 $ 42,266 N-03 ADMINISTRATIVE SECRETARY BILLING/COLLECTION SPEC. I CAFÉ ATTENDANT I PERMIT TECHNICIAN TRAFFIC TECHNICIAN I $ 13.88 $ 28,870 $ 17.61 $ 36,629 $ 21.37 $ 44,450 N-04 311 CONTACT CENTER AMBASSADOR AIRPORT SERVICES REP I BILLING SPECIALIST II CAFÉ ATTENDANT II COURT SERVICES SPECIALIST $ 14.57 $ 30,306 $ 18.64 $ 38,771 $ 22.72 $ 47,258 $ 15.43 $ 32,094 $ 19.75 $ 41,080 $ 24.07 $ 50,066 N-05 ADMINISTRATIVE SPECIALIST ANIMAL SERVICES OFFICER GENERAL MAINTENANCE WORKER II LINE CREW I PARKS FACILITIES TECHNICIAN SR. PERMIT TECHNICIAN SR. SECRETARY VETERINARY TECHNICIAN WARRANT CLERK $ 16.36 $ 34,029 $ 20.94 $ 43,555 $ 25.52 $ 53,082 N-06 AIRPORT SERVICES REP II CONTRACT SERVICES MONITOR FACILITIES SERVICES TECHNICIAN FACILITY SUPPORT SPECIALIST HR SPECIALIST LINE CREW II NEIGHBORHOOD SERVICES SPECIALIST PUMP & MOTOR TECHNICIAN I TREASURY SPECIALIST WARRANT COORDINATOR WATER QUALITY TECHNICIAN ACCOUNTS PAYABLE SPECIALIST AUTOMOTIVE TECHNICIAN I CAFE SUPERVISOR COURT DOCKET COORDINATOR DEVELOPMENT REVIEW COORDINATOR LINE CREW III PUMP & MOTOR TECHNICIAN II PURCHASING SPECIALIST RECORDS SPECIALIST $ 17.35 $ 36,088 $ 22.37 $ 46,530 $ 27.40 $ 56,992 ACCOUNTANT I ADMINISTRATIVE SUPERVISOR AIRPORT OPERATIONS AGENT ANIMAL SHELTER SUPERVISOR BUYER CODE ENFORCEMENT INSPECTOR $ 18.65 $ 38,792 $ 24.06 $ 50,045 $ 29.48 $ 61,318 N-08 NON-EXEMPT STRUCTURE Minimum Midpoint Maximum N-07 Range Position Title Page 1 of 7 218 CITY OF SUGAR LAND SALARY STRUCTURE FOR NON-EXEMPT POSITIONS FY18 - PROPOSED Minimum Midpoint Maximum $ 19.96 $ 41,517 $ 25.74 $ 53,539 $ 31.54 $ 65,603 N-09 $ 21.56 $ 44,845 $ 28.02 $ 58,282 $ 34.49 $ 71,739 N-10 ACCOUNTANT II ADMINISTRATIVE COORDINATOR AUTOMOTIVE TECHNICIAN II BUILDING INSPECTOR CONSTRUCTION INSPECTOR CRIME SCENE TECHNICIAN INFORMATION PROCESS TECHNICIAN LINE SUPERVISOR PROJECT ANALYST TELECOMMUNICATIONS SPECIALIST WATER SERVICES SUPERVISOR AIRPORT LEASING COORDINATOR CRIME ANALYST END USER SUPPORT SPECIALIST FIELD SUPERVISOR FLEET SERVICES SUPERVISOR G.I.S. SPECIALIST INSTRUMENTATION & CONTROL TECHNICIAN PLANS EXAMINER SR. ACCOUNTANT SR. ADMINISTRATIVE COORDINATOR SR. BUILDING INSPECTOR SR. CONSTRUCTION INSPECTOR SYSTEM ANALYST $ 24.77 $ 51,522 $ 32.20 $ 66,976 $ 39.64 $ 82,451 SYSTEM ADMINISTRATOR $ 27.26 $ 35.42 $ $ 56,701 $ 73,674 $ 90,688 N-12 CONTRACT SERVICES COORDINATOR ELECTRICIAN EMERGENCY MANAGEMENT SPECIALIST EXECUTIVE ASSISTANT LEAD UTILITIES OPERATOR MECHANIC RESIDENTIAL RENTAL INSPECTOR SANITARIAN N-11 N-08 Range Position Title CREW CHIEF DEPARTMENT ANALYST ENVIRONMENTAL SERVICES INSPECTOR EXECUTIVE SECRETARY LABORATORY TECHNICIAN PERMITS SUPERVISOR SR. ACCOUNTS PAYABLE SPECIALIST SR. FACILITY SERVICES TECH TRAFFIC TECHNICIAN II, SIGNALS UTILITIES OPERATOR 43.60 PROPOSED: Effective for January 1, 2018 NON-EXEMPT STRUCTURE Page 2 of 7 219 CITY OF SUGAR LAND SALARY STRUCTURE FOR EXEMPT POSITIONS FY18 - PROPOSED Midpoint Maximum $ $ 29.21 60,757 $ $ 34.81 72,405 AGENDA COORDINATOR AIRPORT OPERATIONS SPECIALIST AIRPORT SERVICES REPRESENTATIVE SUPERVISOR BILLING SUPERVISOR CODE COMPLIANCE COORDINATOR COLLECTIONS & CUSTOMER SERVICE SUPERVISOR COMMUNITY ENGAGEMENT COORDINATOR ENVIRONMENTAL COORDINATOR FACILITIES SERVICES SUPERVISOR HR BUSINESS PARTNER MANAGEMENT ASSISTANT II PLANNER II PRETREATMENT COORDINATOR PRODUCER / VIDEOGRAPHER PUBLIC/PRIVATE PARTNERSHIP COORDINATOR SR. BUDGET ANALYST TRAFFIC MANAGEMENT CENTER OPERATOR $ $ 24.40 50,752 $ $ 31.00 64,480 $ $ 37.58 78,166 ACCOUNTS PAYABLE SUPERVISOR ADMINISTRATIVE MANAGER COMMUNICATIONS MANAGER CONTRACTS MANAGER DEPUTY COURT ADMINISTRATOR ENGINEER I FINANCIAL ANALYST LINE SERVICES SUPERINTENDENT PRINCIPAL ACCOUNTANT PUBLICATIONS MANAGER RECORDS MANAGER SR. PLANNER USER SERVICES SUPERVISOR WATER CONSERVATION MANAGER WEBSITE MANAGER $ $ 26.36 54,829 $ $ 33.48 69,638 $ $ 40.59 84,427 ACCOUNTING SUPERVISOR AIRPORT BUSINESS MANAGER ANIMAL SERVICES MANAGER BUSINESS RETENTION MANAGER COMMUNITY ENGAGEMENT MANAGER COMPLIANCE MANAGER DESTINATION EVENT MANAGER ENGINEER II EVENT PRODUCTION MANAGER FACILITIES SERVICES MANAGER FINANCIAL/INVESTMENT ANALYST FLEET SERVICES MANAGER HUMAN RESOURCES MANAGER IT PROJECT MANAGER LAB MANAGER LEAD PROGRAMMER ANALYST LINE SERVICES MANAGER PROJECT MANAGER REAL PROPERTY MANAGER RECREATION MANAGER RISK MANAGER SR. SANITARIAN STRATEGIC INITIATIVES MANAGER $ $ 28.47 59,218 $ $ 36.16 75,213 $ $ 43.84 91,187 E-04 23.61 49,109 E-01 Minimum $ $ E-02 Position Title BUDGET ANALYST CONTRACTS COORDINATOR EVENT COORDINATOR GRAPHICS COORDINATOR MANAGEMENT ASSISTANT I PLANNER I RECREATION COORDINATOR RIGHT OF WAY SERVICES COORDINATOR SAFETY COORDINATOR TOURISM COORDINATOR E-03 Range EXEMPT STRUCTURE Page 3 of 7 220 E-0 CITY OF SUGAR LAND SALARY STRUCTURE FOR EXEMPT POSITIONS FY18 - PROPOSED Range Position Title Minimum Midpoint Maximum $ $ 30.73 63,918 $ $ 39.05 81,224 $ $ E-05 AIRFIELD & FACILITIES MANAGER AIRPORT DEVELOPMENT MANAGER AIRPORT OPERATIONS MANAGER ASSET & OPERATIONS MANAGER CODE COMPLIANCE MANAGER CONSTRUCTION SERVICES MANAGER CULTURAL ARTS MANAGER CUSTOMER SERVICE MANAGER DEPUTY BUILDING OFFICIAL ENGINEER III ENVIRONMENTAL MANAGER FIELD OPERATIONS MANAGER MUNICIPAL COURT ADMINISTRATOR-IN TRAINING PARKS DEVELOPMENT MANAGER PRINCIPAL PLANNER RIGHT OF WAY SERVICES MANAGER SR. FINANCIAL ANALYST STREET/DRAINAGE SUPERINTENDENT $ $ 33.51 69,701 $ $ 42.56 88,525 $ 51.60 $ 107,328 E-06 ASSISTANT CITY ATTORNEY ASSISTANT TO THE CITY MANAGER CODE COMPLIANCE ADMINISTRATOR DEPUTY CHIEF ACCOUNTANT ENGINEERING MANAGER FACILITY OPERATIONS MANAGER INTERGOV'L RELATIONS MANAGER IT OPERATIONS MANAGER PUBLIC/PRIVATE PARTNERSHIP MANAGER SR. ENGINEER SURFACE WATER PLANT MANAGER $ $ 36.52 75,962 $ $ 46.40 96,512 $ 56.25 $ 117,000 E-07 ASSISTANT CITY SECRETARY ASSISTANT COMMUNICATIONS DIRECTOR CITY TRAFFIC ENGINEER IT MANAGER MUNICIPAL COURT ADMINISTRATOR PURCHASING MANAGER TOURISM & DESTINATION SERVICES ADMINISTRATOR TRANSPORTATION & MOBILITY PLANNING MGR TREASURY MANAGER ASSISTANT CITY ENGINEER ASSISTANT DIRECTOR OF AVIATION ASSISTANT DIRECTOR OF ECONOMIC DEVELOPMENT ASSISTANT DIRECTOR OF ENVIRON & NEIGHBORHOOD SVS ASSISTANT DIRECTOR OF FINANCE ASSISTANT DIRECTOR OF HUMAN RESOURCES ASSISTANT DIRECTOR OF PARKS & RECREATION ASSISTANT DIRECTOR OF PUBLIC WORKS BUDGET OFFICER CHIEF ACCOUNTANT CITY PLANNER - DEVELOPMENT PLANNING CITY PLANNER - LONG RANGE PLAN FIRST ASSISTANT CITY ATTORNEY $ $ 39.45 82,056 $ 50.10 $ 104,208 $ 60.75 $ 126,360 E-08 SURFACE WATER CHIEF OPERATOR TOURISM & MARKETING MANAGER TRAFFIC OPERATIONS MANAGER WATER RESOURCES MANAGER 47.34 98,467 PROPOSED: Effective for January 1, 2018 EXEMPT STRUCTURE Page 4 of 7 221 CITY OF SUGAR LAND SALARY STRUCTURE MANAGEMENT & ELECTED OFFICIAL POSITIONS FY18 - PROPOSED Midpoint Maximum BUILDING OFFICIAL CITY SECRETARY COMMUNICATIONS DIRECTOR PUBLIC SAFETY DISPATCH DIRECTOR STRATEGIC INITIATIVES DIRECTOR CITY ENGINEER DIRECTOR OF AVIATION DIRECTOR OF ECONOMIC DEVELOPMENT DIRECTOR OF ENVIRON & NEIGHBORHOOD SVS DIRECTOR OF FINANCE DIRECTOR OF HUMAN RESOURCES DIRECTOR OF INFORMATION TECHNOLOGY DIRECTOR OF PARKS & RECREATION DIRECTOR OF PLANNING DIRECTOR OF PUBLIC WORKS CITY MANAGER FIRST ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER EXECUTIVE DIRECTOR CITY ATTORNEY FIRE CHIEF POLICE CHIEF MUNICIPAL COURT JUDGE UNGRADED COUNCIL MEMBER $ 736.55 (Monthly) $ 8,839 (Annually) EO-2 EO-1 M-01 Minimum M-02 Position Title M-03 Range $ 39.81 $ 50.57 $ $ 82,805 $ 105,186 $ 61.31 127,525 $ 48.86 $ 61.08 $ $ 101,629 $ 127,046 $ 73.30 152,464 $ 1,473.10 (Monthly) MAYOR $ 17,677 (Annually) PROPOSED: Effective for January 1, 2018 MANAGEMENT & ELECTED OFFICIALS Page 5 of 7 222 CITY OF SUGAR LAND SALARY STRUCTURE FIRE Range PROPOSED: FY18 Job Title Hourly Annual Hourly Annual Hourly Annual Minimum Midpoint Maximum $18.06 $21.22 $24.38 $52,591 $61,793 $70,995 $22.10 $25.55 $29.02 $64,355 $74,402 $84,506 $26.29 $28.92 $31.56 $76,556 $36.81 $84,215 $40.49 $91,903 $44.18 $76,565 $84,219 $91,894 $28.69 $31.57 $34.43 $83,545 $40.17 $91,932 $44.20 $100,260 $48.20 $83,554 $91,936 $100,256 $30.96 $34.18 $37.39 $90,156 $43.34 $99,532 $47.85 $108,880 $52.35 $90,147 $99,528 $108,888 $48.71 $54.97 $61.22 $101,317 $114,338 $127,338 Job Title FIREFIGHTER F-1 (2912 Hours Annually) FIRE DRIVER F2F (2912 Hours Annually) FIRE LIEUTENANT (SHIFT) F3F (2912 Hours Annually) FIRE INSPECTOR/INVESTIGATOR FIRE LIEUTENANT (NON-SHIFT) F3G (2080 Hours Annually) FIRE CAPTAIN (SHIFT) F4F (2912 Hours Annually) FIRE CAPTAIN (NON-SHIFT) F4G (2080 Hours Annually) BATTALION CHIEF (SHIFT) F5F (2912 Hours Annually) BATTALION CHIEF (NON-SHIFT) ASSISTANT FIRE MARSHAL F5G (2080 Hours Annually) ASSISTANT FIRE CHIEF F6G (2080 Hours Annually) PROPOSED: Effective for January 1, 2018 223 CITY OF SUGAR LAND SALARY STRUCTURE POLICE, DETENTION & DISPATCH Range PROPOSED: FY18 Job Title PUBLIC SAFETY DISPATCHER - RECRUIT PTR PUBLIC SAFETY DISPATCHER I (CERTIFIED) PUBLIC SAFETY DISPATCHER II (CERTIFIED) PS DISPATCH SHIFT SUPERVISOR PS QUALITY ASSURANCE SUPERVISOR DEPUTY PS DISPATCH MANAGER DETENTION OFFICER - RECRUIT DETENTION OFFICER (CERTIFIED) POLICE OFFICER - RECRUIT POLICE OFFICER POLICE SERGEANTS POLICE LIEUTENANT POLICE CAPTAIN ASSISTANT CHIEF OF POLICE PT1 PT2 Hourly Annual Minimum Hourly Annual Midpoint Hourly Annual Maximum $37,482 $18.79 $23.03 $27.27 $39,083 $21.13 $47,902 $26.08 $56,722 $31.01 $43,950 $24.89 $54,246 $29.80 $64,501 $34.70 $51,771 $30.50 $61,984 $35.84 $72,176 $41.18 $63,440 $74,547 $85,654 $37,398 $18.94 $22.72 $26.50 $39,395 $47,258 $55,120 $48,381 $27.08 $31.81 $36.54 $56,326 $36.20 $66,165 $39.83 $76,003 $43.45 $75,296 $41.87 $82,846 $45.93 $90,376 $50.00 $87,090 $46.45 $95,534 $51.09 $104,000 $55.74 $96,616 $51.60 $106,267 $58.05 $115,939 $64.50 $107,328 $120,744 $134,160 $18.02 PT3 PT4 PDR PD1 P-1 P-2 P-3 P-4 P-5 P-6 $17.98 $23.26 PROPOSED: Effective for January 1, 2018 224 Schedule of Depreciation - FY16 For FY18 Fire Fee Calculation Fleet 2005 PUMPER UNIT#117 PIERCE 75'AERIAL UNIT#128 L2 FIRE TRUCK 2008 CRIMSON PUMPER UNIT #131 2009 EXPLORER UNIT#122 2010 EXPLORER UNIT#111 2010 FIRE TRUCK UNIT#137 GOLF CART-UNIT#168 INFLATABLE DIVE TEAM BOAT FIRELIGHT SKID UNIT-UNIT#140 2012 GATOR UNIT# 139 2013 SPARTAN FIRE TRUCK UNIT#132 2014 TAHOE UNIT#170 2015 TAHOE UNIT#118 FIRE TRUCK 2014 SPARTEN PUMPER UNIT#155 FIRE TRUCK 2014 SPARTEN PUMPER UNIT#156 2015 SPARTAN PUMPER UNIT#153 Total Fleet Depreciation 19,923 67,203 62,330 1,555 3,097 66,350 736 1,338 1,117 1,747 138,000 5,678 2,899 34,951 34,951 35,001 476,875 Capital GENERATOR (GAS)- FIRE ST #5 AIR PACK #42 AIR PACK #45 AIR PACK #43 AIR PACK #44 AUX, GENERATOR FOR ALT. EOC STORAGE CONTAINER 40' PORTABLE GAS LINE AT EOC- FOR EOC GENERATOR GENERATOR ELECTRICITY(BACK-UP) PRECOR TREADMILL C956 AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR AUTOMATIC DEFIBRILLATOR BREATHING AIR COMPRESSOR IN CAR VIDEO IN CAR VIDEO THERMAL IMAGING CAMERA CAMFD08 IN CAR VIDEO SYSTEMS(4) BUNKER GEAR WASHER/EXTRACTOR PORTABLE RADIO XTS5000 THERMAL IMAGING CAMERA FIRE STATION #2 GENERATOR FLAG POLES FIRE #1 SCBA SYSTEM BREATHING COMPRESSOR INDOOR SPRINKLER SYSTEM FIRE #1 COMPACT DUO PUMP COMPACT DUO PUMP SPREADERS 4242 GEAR WASHER/EXTRACTOR THERMAL IMAGER CAMERA 1,029 190 190 190 190 723 77 65 1,000 239 829 829 829 829 829 829 829 829 935 427 384 1,428 833 1,214 880 1,500 2,736 250 3,000 2,933 993 993 856 2,353 1,487 225 Schedule of Depreciation - FY16 For FY18 Fire Fee Calculation THERMAL IMAGER CAMERA AUDIO/VISUAL SYSTEM AT FIRE ADMIN HVAC-FIRE #7 APPLIANCES-FIRE #7 DSX ACCESS CONTROL SYSTEM @FS#2 DSX ACCESS CONTROL SYSTEM @ FS#3 DSX ACCESS CONTROL SYSTEM @ FS#4 DSX ACCESS CONTROL SYSTEM @ FS#5 DSX ACCESS CONTROL SYSTEM @ FS#6 Total Capital Depreciation 958 5,843 34,384 5,224 1,681 1,145 1,184 1,244 1,187 86,577 Building FIRE STATION #2 BLDG FIRE STATION #4 BLDG FIRE STATION #3 BLDG 2 BASIN S/S SINK A/C UNIT AT FIRE STATION #1 FIRE STATION #5 BLDG FIRE STATION # 5 FS#6 ADMIN BLDG FS#6 BLDG INTERIOR:CARPET FS#6 BLDG INTERIOR:TILE FS#6 BLDG INTERIOR:ELECTRICAL FS#6 BLDG INTERIOR:COOLING/HEATING SYSTEM AIR CIRC FS#6 BLDG :ROOF FS#6 BLDG INTERIOR:SPRINKLER SYSTEM FS#6 BLDG INTERIOR:WATER SYSTEM FIRE STATION #5 BLDG -IMPROVEMENT BUILDING RENOVATIONS BUILDING CARPET REPLACEMENT BUILDING FIRE#1 @ MATLAGE WAY HVAC UNIT W/ ELECTRONIC CONTROLS FIRESTATION#2 HVAC CONTROL SYS @ FIRE ADMIN/ANNEX FIRE ADMIN BLDG RENOVATIONS FIRE #7 BUILDING-1301 CHATHAM AVE Total Building 3,556 4,356 5,356 231 22,071 2,654 15,404 505 168 4,500 3,307 2,425 5,350 703 10,905 1,948 65,656 5,896 4,255 2,143 58,762 220,147 Dispatch COMMUNICATION EQUIPMENT Total Dispatch Depreciation - 226 Glossary A ACCOUNT: An accounting unit established to record expenditures or revenues by detailed categories. ACCOUNTS PAYABLE: A liability account reflecting amounts on an open account owing to private persons or organizations for goods and services received by a government (but not including amounts due to other funds of the same government or to other governments). ACCOUNTS RECEIVABLE: An asset account reflecting amounts owning to open accounts from private persons or organizations for goods and services furnished by a government. ACCRUAL ACCOUNTING: A basis of accounting in which debits and credits are recorded at the time they are incurred as opposed to when cash is actually received or spent. AD VALOREM: Refers to the tax assessed against real (land and buildings) and personal (equipment and furniture) property. AGENDA: A formal listing of items to be discussed during a public meeting. Agendas for public meetings are posted 72 hours in advance, in compliance with the open meetings act. AGENDA REQUEST: A formal summary of a topic to be discussed during an open meeting. Included in the request are the proceeding, clearances, appropriation and action required, and an executive summary and attachments to explain the topic. ANNEX: Refers to a portion of the City’s Emergency Operations Plan. APPROPRIATION: A legal authorization granted by City Council to make expenditures and incur obligations for designated purposes. ARBITRAGE: The interest earnings derived from invested bond proceeds or debt service fund balances. ARCIMS: The Internet map server allowing users to interact with maps on the City’s web page. ASSESSED VALUATION: A valuation set upon real estate of other property by a government as a basis for levying taxes. ASSETS: Property with monetary value owned by the City. AUDIT: A systematic examination of resource utilization concluding in a written report. It is a test of management’s internal accounting controls and is intended to accomplish the following: • Ascertain whether financial statements fairly represent financial position and results of operations • Ascertain whether transactions have been recorded accurately and consistently, and • Identify areas for possible improvements in accounting practices and procedures. B BALANCE SHEET: The basic financial statement that discloses the assets, liabilities, and equities of an entity at a specified date in conformity with GAAP. BALANCED BUDGET: A budget refers to a budget in which revenues are equal to expenditures. 227 BASE BUDGET: Funding required meeting current service levels. BENEFIT BURDEN: The ratio of the cost of defined benefits to the base payroll of employees eligible to receive benefits. BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified date. BOND REFERENDUM: A proposal to be voted on by registered voters within the City regarding the sale of bonds for which ad valorem taxes are pledged for repayment. BRAZOS RIVER AUTHORITY: An agency of the State of Texas whose mission is to develop and maintain the resources of the Brazos River basin. The BRA has operated a wastewater treatment plant that serves the City since 1975. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. For a local government, a budget is a legal restriction on expenditures. C CAPITAL IMPROVEMENT PROGRAM / PROJECT (CIP): Projects that purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility. CAPITAL OUTLAYS: Expenditures that result in the acquisition of or addition to fixed assets that are individually priced more than $5,000, per the City’s capitalization policy. CARRYOVER: Expenditures budgeted in one year for materials, equipment, programs, etc but not spent until the following fiscal year. Funding for non-recurring expenditures can carry over to the following fiscal year if approved by the City Manager and City Council. City Council formally amends the budget to approve carryover funding. Revenues can also carryover if they were anticipated in one fiscal year but not received until the following year. CERTIFICATE OF OBLIGATION (CO): A debt instrument that is issued by the City and has the same legal status as a general obligation bond. Proceeds from the issuance of the certificates may be used for construction of public works; purchase of materials, supplies, equipment, machinery, builds, land, and right a ways for authorized needs and purposes; or payment of contractual obligations for professional services. However, certificates of obligation are not authorized by the voters. CONSUMER PRICE INDEX (CPI): The monthly data on the changes in the prices paid by urban consumers for a representative basket of goods and services. CONTINGENCY: An amount of money set aside for unforeseen incidents. CONTRACTUAL SERVICES: The costs related to services performed for the City by individuals, businesses, or utilities. COST: The amount of money or other consideration exchanged for property or services. Costs may be incurred even before money is paid; that is, as soon as a liability is incurred. Ultimately, however, money or other consideration must be given in exchange. CURRENT ASSETS: Assets which are available or can be made readily available to finance current operations or to pay current liabilities. Current assets also include those which will be used up or converted into cash within one year. Some examples are cash, temporary investments, and taxes receivable which will be collected within one year. 228 CURRENT LIABILITIES: Debt or other legal obligation arising out of transactions in the past which must be liquidated, renewed, or refunded within one year. D DEBT SERVICE: A cost category that typically reflects the repayment of short-term (less than five years) debt associated with the acquisition of capital equipment. DEFICIT: The excess of expenditures over revenues during an accounting period; or, in the case of Enterprise and Intra- governmental Service Funds, the excess of expense over income during an accounting period. DELINQUENT TAXES: Taxes remaining unpaid on or after the date on which a penalty for nonpayment is attached. DEPARTMENT: A section of the total organization that is comprised of Divisions and is under the oversight of an Executive Director, Assistant City Manager or City Manager. DEPARTMENT HEAD: A mid-management employee charged with oversight of one or more programs. Department Heads may report to an Executive Director, Assistant City Manager or the City Manager. DEPRECIATION: Is the process by which the City allocates an asset’s cost over the duration of its useful life. Depreciation results in depreciation expense. DEVELOPER REIMBURSEMENT: Payment to a private developer for installation of public infrastructure. The developer typically installs infrastructure such as water and sewer utilities, traffic signals and streets & sidewalks. The City or MUD can reimburse the developer through issuance of debt. DIVISION: A subsection of a Department that carries out a specific line of work assigned to the Department. A Division may have more than one Program. E EFFECTIVE TAX RATE: When compared to the same property, the tax rate that produces the same effect in terms of the total amount of taxes as compared to the prior year, based on the value of properties taxed in both years. ENCUMBRANCES: Commitments related to unperformed contracts for goods or services used in budgeting. Encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed. ENHANCEMENTS: Funds that the City has earmarked for a new service not provided in the past, or allowing an increase in the level of service already provided. ENTERPRISE FUND: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs if providing goods or services the general public on a continuing basis be financed or recovered primarily through user charges. EXECUTIVE DIRECTOR: An upper management employee charged with oversight of one or more departments. Executive Directors participate in high-level policy and strategic decision-making and report either to an Assistant City Manager or the City Manager. EXEMPT: Personnel not eligible to receive overtime pay and who are expected to put in whatever hours are necessary to complete job assignments. The respective Department Head, as partial compensation for overtime hours worked, may allow compensatory time off. 229 EXPENDITURES: Decreases in net financial resources. Expenditures include current operating expenses, which require the current or future use of net current assets, debt service, and capital outlays. EXTRATERRITORIAL JURISDICTION (ETJ): The land bordering a City’s limits that the City has limited control over but does not furnish City services to nor collect ad valorem taxes from. This is an area outside of City limits that is subject to annexation. F FISCAL YEAR: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. The City of Sugar Land’s fiscal year begins each October 1 and ends the following September 30. The term fiscal year 2014 connotes the fiscal year beginning October 1, 2013 and ending September 30, 2014. FIXED ASSETS: Assets of a long-term character which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, and machinery and equipment. FIXED BASE OPERATOR (FBO): An operating company providing customer services including fuel and line service personnel at an airport. FRANCHISE: A special privilege granted by a government permitting the continuing use of public property such as, City rights-of-way. FULL-TIME EQUIVALENT (FTE): One full-time equivalent works 2,080 hours a year; a person working 1,040 hours per years is equivalent to 0.5 FTE. FUND: A fiscal and accounting entity with a self balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE: The difference between governmental fund assets and liabilities. Also referred to as fund equity. FUND BALANCE POLICY: A minimum fund balance that is required to be kept in reserve as defined in the Financial Management Policy Statements. Fund balances over the policy requirement may be appropriated in the budget. G GENERAL FUND: Is used to account for all transactions not properly includable in other funds. GENERAL LEDGER: A book, file, or other device, which contains the accounts needed to reflect the financial position and the results of operations of an entity. In double entry bookkeeping, the debits and credits in the general ledger are equal; therefore, the debit balances equal the credit balances. GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP): Uniform minimum standards and guidelines used for financial accounting and reporting as set forth by the Governmental Accounting Standards Board (GASB). GENERAL OBLIGATION (GO) BONDS: Bonds for the payment of which the full faith and credit of the issuing government are pledged. In issuing its general obligation bonds, the City of Sugar Land pledges to levy whatever property tax is needed to repay the bonds for any particular year. Bonds cannot be issued without voter approval and are usually issued with maturities between 15 and 30 years. 230 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): A governing board set up to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports. GOVERNMENTAL FUNDS: Those funds through which most governmental functions typically are financed. The acquisition, use, and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects, and Debt Service Funds). GROUNDWATER: Water obtained by drilling a well and pumping water from below the surface, typically at depths of thousands of feet. Pumping of groundwater is a contributing factor to subsidence. H HOMEOWNERS’ ASSOCIATION (HOA): A group of property owners in a residential area, in which membership may be mandatory by deed restriction. HOUSTON-GALVESTON AREA COUNCIL (HGAC): A voluntary association of counties, cities, independent school districts, and soil and water conservation districts in the Gulf Coast State Planning Region of Texas. H-GAC serves almost 150 local governments, and its region includes about 4 million people in an area of about 12,500 sq. miles. I ISO RATING: The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting up the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to each fire department, which is used in the development of insurance rates for all properties within the protected area. Grading starts at 1, which is the best possible score and ends at 10 which is considered unacceptable. INTERGOVERNMENTAL REVENUE: Grants, entitlements and cost reimbursements from another governmental entity. INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest, dividends, rentals or base payments. K KEY PERFORMANCE INDICATORS (KPI): Specific quantitative and qualitative measures of work performed as a productivity indicator of the program. L LANDSCAPE COST SHARE PROGRAM: A program that credits private funds that are used to irrigate public areas, specifically right-of-ways along arterials and state roads. Secondary goals of the program include helping to reduce peak water demand by limiting the times participants in the program can irrigate and promoting water conservation by means of rain sensors and well managed timers and management of irrigation systems. LEASE/PURCHASE: A financing tool utilized to fund large capital outlays where the City may not have cash available immediately for purchase. The arrangement allows the City use of the item while payments are being made. A lien is placed on the item purchased and upon completion of lease payments, typically 5-7 years, the City gains ownership of the assets. LEVEE IMPROVEMENT DISTRICT (LID): A special district with authority to levy ad valorem taxes that is used to improve flood control within its boundaries through the use of levies. LEVY: The City Council has authority to impose or collect taxes, special assessments, or service charges. 231 LOCAL LAW ENFORCEMENT BLOCK GRANT: A grant program of the Department of Justice in which a local law enforcement agency is given a specified amount of funding to accomplish a goal. LONG TERM DEBT: Debt with a maturity of more than one year after the date of issuance. M MAINTENANCE: The upkeep of physical properties in condition for use or occupancy. Examples are the inspection of equipment to detect defects and the making of repairs. MAJOR FUND: Governmental or Enterprise Funds reported as a separate column in the basic fund financial statements and subject to a separate opinion by the independent auditor. MODIFIED ACCRUAL ACCOUNTING: The basis of accounting in which revenues are recognized when they become measurable and available to finance expenditures of the current period. Expenditures are recognized when the goods are services are received. MUNICIPAL UTILITY DISTRICT (MUD): A special district whose purpose is to provide water and sewer services to the residences and businesses within its boundaries. The district has ad valorem taxing power and can issue bonds to pay for construction and improvements to the district’s system. Districts are typically established in unincorporated areas, but can also lie within the boundaries of one or more cities. N NON-CAPITAL ASSETS: Expenditures that result in the acquisition of or addition to assets that are individually priced $2,500 to $5,000, per the City’s capitalization policy. These items are not added to the fixed assets, but are tracked for inventory purposes. NON-EXEMPT: Personnel eligible to receive overtime pay when overtime work has been authorized or requested. O OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and services delivery activities of the City are controlled, and are required by state law. ORDINANCE: A formal legislative enactment by the governing board of a municipality that has the full force and effect of law within the boundaries of the municipality to which it applies so long as it is not in conflict with any higher form of law. Revenue raising measures, such as the imposition of taxes, special assessments, and service charges, universally require ordinances. P PART I CRIMES: Crimes such as homicide, sexual assault, robbery, aggravated assault, burglary, larceny, auto theft and arson. PERSONNEL SERVICES: The costs associated with compensating employees for their labor (salaries, wages, insurance, payroll taxes, and retirement contributions). PROGRAM: A subset of a Department in which expenditures are focused on a primary function of work to be performed. PROJECTION: Anticipated total for the current fiscal year. During the budget process, the City projects expected revenues and expenditures through the remainder of the fiscal year to gain a better picture of the City’s finances. These projections are adopted as the revised budget during the budget adoption process. 232 PROPERTY TAX: Taxes levied on all real and personal according to the property’s valuation and the tax rate, in compliance with State Property Tax Code. PROPRIETARY FUND: In governmental accounting is a business-like fund. Examples of proprietary funds include enterprise funds and internal service funds. PUBLIC FUNDS INVESTMENT ACT: A law that governs the investment of government funds in Texas. Under this law, specific parameters are set for Texas cities, requiring them to adopt an investment policy and to designate an investment officer who is required to attend an approved training course. The act, first adopted in 1995 and most recently amended in 2003, also limits the types of investments that can be made and requires quarterly reporting of investment activity to the governing body. PURCHASE ORDER: A document that authorizes the delivery of specified merchandise or the rendering of certain services and the making of a charge for them. R RATING: The credit worthiness of an entity as evaluated by independent agencies. REPLACEMENT COST: The cost as of certain date of a property that can render similar service (but which need not be of the same structural form) as the property to be replaced. RESERVE: An account used to indicate that a portion of a fund’s balance is legally restricted for a specific purpose and is, therefore, not available for general appropriation. RETAINED EARNINGS: Is a form of equity resulting from earning activities. REVENUE BONDS: Legal debt instruments which finance public projects for such services as water or sewer. Revenues from the public project are pledged to pay principal and interest of the bonds. In Texas, revenue bonds may or may not be authorized by public referenda. REVENUES: Increases in governmental fund types, net current assets from other than expenditure refunds and residual equity transfers. RIGHT-OF-WAY: The area immediately adjacent to a City’s roadway or drainage channel. S SALES TAX: A state tax of 6.25% is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities and counties have the option of imposing additional local sales taxes for a combined total of state and local taxes of 8.25%. SERVICE LEVEL STANDARD: The expected outcome for a service that is provided. Can include minimum staffing, hours of operation, or outcome goals. SPECIAL ASSESSMENT: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. SPECIAL REVENUE FUND: A fund used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term “proceeds for specific revenue sources” establishes that one or more restricted or committed revenues should be the foundation for a special revenue fund. 233 STRUCTURAL BALANCE: A term used to define a budget that includes recurring revenues greater than or equal to recurring expenditures. SUBSIDENCE: A gradual settling or sudden sinking of the Earth’s surface owing to subsurface movement of earth materials. Land subsidence occurs when there is a loss of support below ground such as when water is taken out of the soil and the soil collapses. This situation occurs throughout the United States, but has had more impact in California, Texas, and Arizona. SUGAR LAND 101: A municipal government course sponsored by the City, educating future City leaders in the workings of the Sugar Land Municipal Government. SUGAR LAND DEVELOPMENT CORPORATIONS: Corporations that are financed by additional sales taxes approved by the voters. State law allows the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the City. SUGAR LAND TOWN SQUARE DEVELOPMENT AUTHORITY: A local government corporation created by the City for the sole purpose of carrying out the necessary tasks to accomplish the Town Square project. SUPPLIES: A cost category for minor items (individually priced at less than $500) required by departments to conduct their operations. SURFACE WATER: Drinking water can come from either ground water sources (via wells) or surface water sources (such as rivers, lakes, and streams). Nationally, most water systems use a ground water source (80%), but most people (66%) are served by a water system that uses surface water. Large metropolitan areas tend to rely on surface water, whereas small and rural areas tend to rely on ground water. T TAX LEVY: The total amount to be raised by general property taxes for purpose specified in the Tax Levy Ordinance. TAX RATE: The amount of tax levied for each $100 of taxable valuation. The tax rate multiplied by the taxable valuation equals the tax levy. TAXES: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, sewer service charges. TEXAS COMMISSION ON LAW ENFORCEMENT OFFICERS STANDARDS AND EDUCATION (TCLEOSE): A commission that allocates funds each year to public safety agencies in Texas earmarked for peace officer training based on the number of peace officers on staff for each agency. TEXAS DEPARTMENT OF TRANSPORTATION (TxDOT): A state agency that provides funding, with a local match, for improvement of state highways within the City limits. U USER FEES: The payment of a fee for direct receipt of a public service by the party benefiting from the service. W WATER CONTROL IMPROVEMENT DISTRICT (WCID): A special purpose district established to provide water and sewer facilities and services within the district. The District has taxing authority separate from any other taxing 234 authority, and maybe, subject to voter approval, issue an unlimited amount of bonds and levy an unlimited rate of tax in payment of such bonds. WORKING CAPITAL: Is the current assets less current liabilities. Y YIELD: rate earned on an investment based on the cost of the investment, the par value of the investment, plus interest to be earned to maturity, and less any accrued interest. 235 Acronyms A AED: Automated External Defibrillator ADA: Americans with Disability Act AFIS: Automated Fingerprint Identification System M M&O: Maintenance and Operations MG: millions of gallons MGD: millions of gallons per day MSA: metropolitan statistical area MUD: Municipal Utility District C CAC: Community Action Center CAFR: Comprehensive Annual Financial Report CDBG: Community Development Block Grant CID: Criminal Investigation Division CIP: Capital Improvement Program CO: Certificate of Obligation CPR: Cardiopulmonary Resuscitation O O&M: Operations and Maintenance P PER: Preliminary Engineering Report PM: Preventative Maintenance PO: Purchase Order D DEM: Department of Emergency Management DPS: Department of Public Safety R RFP: Request for Proposal RFS: Request for Services ROW: Right-of-Way E EMS: Emergency Medical Service EOC: Emergency Operations Center EPA: Environmental Protection Agency S SCADA: Supervisory Control and Data Acquisition SPA: Strategic Partnership Agreement STEP: Selective Traffic Enforcement Program SWAT: Special Weapons and Tactics F FAA: Federal Aviation Administration FBISD: Fort Bend Independent School District FBO: Fixed Base Operator FEMA: Federal Emergency Management Agency FMPS: Financial Management Policy Statements FTE: Full-time Equivalent FY: Fiscal Year T TCEQ: Texas Commission of Environmental Quality. The name changed from TNRCC effective September 1, 2002 TEEX: Texas Engineering Extension Service TMRS: Texas Municipal Retirement System G GAAP: Generally Accepted Accounting Principals GASB: Governmental Accounting Standards Board GFOA: Government Finance Officers Association GIS: Geographic Information Systems GRP: Groundwater Reduction Plan V VOIP: Voice over Internet Protocol W WCID: Water Control Improvement District H H-GAC: Houston - Galveston Area Council HAZ-MAT: Hazardous Materials K KSLB: Keep Sugar Land Beautiful L LID: Levee Improvement District LLEBG: Local Law Enforcement Block Grant 236