2019 proposed budget and business plan city of …...corpus christi mansfield dallas carrollton...

2019 PROPOSED BUDGETAND BUSINESS PLAN

City of Arlington, Texas

OVERVIEW• City Value Proposition

• FY 2019 Proposed Budget

• FY 2019 Priorities and Core Services

• August 14th Meeting

• Budget Calendar

BUDGET DEVELOPMENT PROCESS• Comprehensive Financial Forecast

• Department reviews with CMO

• All items considered included in Budget

Document (Other Budget Information)

• Reconciliation of Positions (adds, deletes,

reorganizations)

BUDGET STRATEGY• Balanced and in accordance with City’s

Financial Principles

• Advance Priorities while maintaining Core

Services

• Addresses employee compensation

(three-year plan)& insurance adjustments

• Distribute Oversight and Workload

• Maintain Favorable Tax Policy

FY 2019 BUDGET• Targeted investments in new technology

& public safety

• Tax rate of $0.6348, a half-cent reduction in the tax rate

• Electricity savings

• Strategic use of one-time funding

• Fee adjustments

• Capital expenses planned in CIP

• Volunteer program (124,000 Hours)

• Grants ($13.3M)

BEST PRACTICES

CITY CONTRIBUTIONS TO THE STATE• Sales Tax Service Fee - $2.2M

• Court Fines - $3.8M

• Payments to Other Agencies - $796k

• Total = $6.8M

• 2.6 cents on tax rate

FIRE ISO & NFIP RATING• Fire ISO 1 rating effective March 1, 2018

• 1% of US communities achieve ISO 1

• Rating used by most insurance companies to predict risk when assessing premiums

• Rating upgrade means reduced costs for businesses

• Public Works achieved upgraded National Flood Insurance Community Rating on May 1, 2018• Upgrade based on capital improvement project

planning, building standards, infrastructure maintenance, storm water education & outreach

• Upgraded rating may provide average annual flood insurance premium savings ranging from $83 to $217 depending location of the property to the floodplain

FAVORABLE TAX POLICYGeneral

HomesteadOver 65 Disabled Person

Tax Ceiling for

Over 65Vet1 Vet2 Vet3 Vet4

Minimums and

Maximums

Authorized

Up to 20% of appraised

value, must be worth at

least $5,000

At least $3,000; no

max established

At least $3,000; no

max established

Local Officials

Authorized or Not

Authorized

5,000 7,500 1 0,000 1 2,000

Arlington 20% $60,000 $60,000 Authorized 5,000 7,500 1 0,000 1 2,000

Minimums and

Maximums

Authorized

Arlington

Mandated Veteran ExemptionsLocal Option Exemptions

Authorized Business Exemptions

RESIDENTIAL

COMMERCIALFreeport Abatements

AuthorizedAuthorized

Local Officials Authorized or Not

Authorized

Local Officials Authorized or Not

Authorized

AMOUNT OF EXEMPTIONS

CurrentNo Ceilings or

Homestead Exemption

M&O 0.4428 0.3859

I&S 0.1920 0.1675

Total Tax Rate 0.6348 0.5534

0.0814

Total AV Value $25,753,273,388 $29,549,318,686

Exemption/Ceiling $3,796,045,298

Avg Taxable Home Value $140,455

Avg Appraised Home Value $181,444

Cost to Average Home Owner $891.61 $1,004.11

TAX BILL COMPARISON

Tax Rate Homestead Tax Bill

El Paso 0.8034 0% 1,425.95

Mansfield 0.7100 0% 1,260.18

Mesquite 0.6870 0% 1,219.36

Fort Worth 0.8050 20% 1,143.04

Grand Prairie 0.6700 > 1% or $10,000 1,117.83

Richardson 0.6252 0% 1,109.67

Dallas 0.7804 20% 1,108.11

Corpus Christi 0.6063 10% 968.51

Lubbock 0.5380 0% 954.90

Arlington 0.6398 20% 908.46

Carrollton 0.5997 20% 851.53

Irving 0.5941 20% 843.57

Austin 0.4448 > 8% or $5,000 726.32

Plano 0.4686 20% 665.37

Southlake 0.4620 20% 656.00

Grapevine 0.2892 20% 410.64

Using $177,490 as Average Home Value

TAX BILL COMPARISON

TAX BILL COMPARISONExemptions

2017

Valuation2018 Tax Bill

House 1 None $121,121 $768.88

House 1 HS $121,121 $615.10

House 2 HS $124,267 $631.08

House 2 HS, OV65 – No Freeze $124,267 $250.20

House 2 HS, OV65 w/Freeze $124,267 $167.53

• Homeowner 1 Savings:• HS – $153.78

• Homeowner 2 Savings:• Over 65 Tax Freeze – $82.67• Over 65 Exemption/Tax Freeze – $463.55

CITY COMPARISONS

OTHER CITY COMPARISONS

$47

$49

$55

$60

$60

$78

$85

$88

$99

$103

$135

$140

$146

$157

$244

$- $50 $100 $150 $200 $250

Mesquite

El Paso

Lubbock

Fort Worth

Arlington

Corpus Christi

Mansfield

Dallas

Carrollton

Irving

Richardson

Plano

Austin

Grapevine

Southlake

FY 2018 Assessed Valueper Capita (in $1,000's)

Average: $103

63.5

66.3

77.9

78.5

80.7

80.8

82.7

91.0

92.0

97.3

98.5

115.7

137.5

138.2

146.9

- 20 40 60 80 100 120 140 160

Carrollton

Arlington

Mesquite

Mansfield

Irving

Fort Worth

Plano

El Paso

Lubbock

Corpus Christi

Richardson

Dallas

Grapevine

Southlake

Austin

FY 2018 Employeesper 10,000 Citizens

Average: 96.5

Populations: 2018 Survey of Texas Cities


$584

$621

$735

$754

$777

$797

$819

$836

$972

$991

$1,076

$1,086

$1,227

$1,299

$1,312

$- $200 $400 $600 $800 $1,000 $1,200 $1,400

El Paso

Arlington

Corpus Christi

Carrollton

Fort Worth

Mesquite

Mansfield

Lubbock

Dallas

Irving

Austin

Plano

Richardson

Southlake

Grapevine

FY 2018 General FundExpenditures per Capita

Average: $926 $298

$323

$382

$397

$455

$476

$481

$596

$603

$614

$649

$654

$689

$842

$1,127

$0 $200 $400 $600 $800 $1,000 $1,200

Lubbock

Mesquite

Arlington

El Paso

Grapevine

Corpus Christi

Fort Worth

Carrollton

Mansfield

Irving

Austin

Plano

Dallas

Richardson

Southlake

FY 2018 Tax Levy Per Capita

Average: $572


$0.2892

$0.4448

$0.4620

$0.4686

$0.5941

$0.8050

$0.5380

$0.6398

$0.6870

$0.7100

$0.6252

$0.6063

$0.7804

$0.5997

$0.8034

$- $0.20 $0.40 $0.60 $0.80 $1.00

Grapevine

Austin

Southlake

Plano

Lubbock

Irving

Carrollton

Corpus Christi

Richardson

Arlington

Mesquite

Mansfield

Dallas

El Paso

Fort Worth

FY 2018 Ad Valorem Tax Rates

General Fund Rate Debt Rate

Average: $0.6036

0%

0%

0%

0%

0%

1%

8%

10%

20%

20%

20%

20%

20%

20%

20%

20%

0% 5% 10% 15% 20% 25%

El Paso

Lubbock

Mansfield

Mesquite

Richardson

Grand Prairie

Austin

Corpus Christi

Carrollton

Dallas

Fort Worth

Grapevine

Irving

Plano

Southlake

Arlington

FY 2018 General Homestead ExemptionState Limit

Average: 11.2%

Greater of 1% or $10,000

Greater of 8% or $5,000

OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION

*Adopted Crime Tax

OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION

0.92 1.04 1.08 1.09

1.19 1.19 1.22 1.29

1.38 1.43

1.52 1.53

-

0.5

1.0

1.5

2.0

Fire

OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION

BUDGET AND BUSINESS PLAN HIGHLIGHTS

RESULTS• Turnaround time for commercial

construction plans within 12 business days: 88% in FY 2017, 98% estimated for FY 2018

• Requests for pothole repair completed within 3 working days of request: 93% in FY 2017, 95% estimated for FY 2018

• Participation in Parks programs and classes: 40,124 in FY 2017, 42,000 estimated for FY 2018

• Citizen satisfaction with overall library services: 89% in FY 2017, 92% in FY 2018

PLANNED ITEMS FOR 2019 CIP

DEBT ISSUANCE

• Fire Heavy Fleet replacement ($2,692,336)

• Tierra Verde HVAC ($750,000)

• Infrastructure Maintenance/City Facilities

($1,000,000)

• Playground Replacement Program ($1,140,000)

• River Legacy Parking lot renovations ($350,000)

Total: $5.9M

FY 2019 BUDGET

ALL FUNDS – OPERATING POSITIONS

CITY REVENUES BY FUND

CITY EXPENDITURES BY FUND

SUMMARY OF EXPENDITURE CHANGES

GENERAL FUND BUDGET BY DEPARTMENT

GENERAL FUND EXPENDITURES

GENERAL FUND POSITIONS

-

200

400

600

800

1,000

1,200

1,400

Police vs. Other General Fund StaffingFY 2001 - FY 2019

Police Other General Fund

GENERAL FUND REVENUE CHANGES• Ad Valorem revenue increase of 9.3%

• Reduction in rate

• Increase in General Fund revenue of $9.1M in FY 2019 budget

• Anticipates September bill valuation change and ongoing impact of tax litigation settlements

• Sales Tax Revenue

• FY 2019 General Fund sales tax revenue is projected to be $64.5M, which is $1.7M above the FY 2018 budget

• 3.1% growth over FY 2018 estimate

• Other Revenues

• Ballpark lease reallocate $750k (moved to one-time)

• Municipal Court down $575k

• Franchise Fees down $376k

• Interest income growth of $322k

GENERAL FUND REVENUES

PROPERTY TAX BASE

PROPERTY TAX RATES

SALES TAX REVENUE TRENDSThrough May, sales tax

revenue in the General Fund

is $419,483 (1.0%) under the

weighted monthly budget

amount for the year to date.

Receipts are up from the prior

year in eight of the last 12

months. Through May, receipts

are 3.3% above what the City

received last year.

8.0%

-3.0%

6.5%

2.3%

-0.6%

1.9%

9.8%

-0.2%

0.1%

14.1%

3.1%2.5%

-0.8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

May17

June17

July17

Aug17

Sept17

Oct17

Nov17

Dec17

Jan18

Feb18

Mar18

Apr18

May18

Monthly Sales Tax RevenuesPercent Change from Same Month in Prior Year

$4.6

$9.0

$15.5

$20.4

$24.5

$30.5

$35.9

$41.0

$46.9$51.8

$56.8$62.8

$4.5$9.0

$15.3

$20.1

$24.5

$30.5

$35.6$40.6

$0

$10

$20

$30

$40

$50

$60

$70

Oct Nov Dec Jan Feb Mar April May June July Aug Sept

FY 2018 Budget to Actual ComparisonIn Millions

FY 2018 Budget FY 2018 Actual

1. The FY 2019 proposed revenue budget for the Court is $10.1 million, which is $3.94 million (28.1%) lower than the high point of $14.0 million in 2011.

2. If citations decline in 2019 by the same percentage as in 2018, the estimate for 2019 is 92,079 citations, which is 63,405 (40.8%) fewer citations

than the 155,484 citations filed in 2009.

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Estim.

FY 2019Prop.

Municipal Court Revenues and CitationsFY 2006 - FY 2019 Proposed Budget

Revenues, in $ hundreds Citations

COMPENSATION & BENEFITS

COMPENSATION PLAN YEAR 3

Proposed compensation increase for all funds = $4.4M

Job Family Year 3 Increase

Engineering 2.5%

Information Technology 2.5%

Admin/Clerical 2.5%

Management Professional 2.5%

Technical/Craft 2.5%

Crime Scene 2.5%

Job Family Year 3 Increase

Police Officer 4.6%

Police Sgt 5.7%

Police LT 5.0%

Firefighter 5.3%

Fire LT 5.1%

Fire Captain 4.3%

Deputy Chief/Battalion Chief 4.3%

Apparatus Operator 5.3%

Fire Prevention 5.3%

General Fund Total $3,996,400

SWORN STEP PLAN MAINTAINED

• Police - $442,000

• Fire - $620,000

Compensation Summary

Police & Fire FY 2019 Market Average Distance

FY18 FY19

Police (all steps/ranks) 2.55% above 4.7% above

Fire (all steps/ranks) 2.53% above 4.33% above

Civilian Employees FY 2019 Market Average

FY18 FY19

Civilian (all job families) 2% above 4% above

Health Insurance Highlights• 4% Employee Rate Increase: (increase of $.53 - $6.96/pay period)

• HDHP $13.69 individual - $81.29 family

• EPO $30.44 individual - $180.34 family

• Retiree Subsidy: No Change

• Tobacco Use Surcharge: $25/pay period

• Annual Deductible Increase: $250 individual/$500 family

• Continue Wellness Program Participation Premium Differential $20/pay period

• Terminate Compass contract; Promote UHC programs – myHealthcare Cost Estimator, Nurseline, Check.Choose.Go

• Continued growth of Employee Health Center utilization• First 4 months: 925 Visits, 293 Personal Health Assessments

TMRS

• Funded full $105,787 increase, not

phased in

• Rate increase from 15.94% to 15.96%

• Amortization Period from 19.6 years

to 18.6 years

• Increased funded ratio 86.6% to

87.2%

TMRS CONTRIBUTION RATES

TMRS NET PENSION LIABILITY

$97 $102 $113

$124

$221 $234

$247

$144

$132

$117

$161 $145 $147 $152 $153

$0

$50

$100

$150

$200

$250

$300

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net Pension Liability(in $ millions)

CIVIL SERVICE UPDATEFY 2018 Personnel Budget $294,200

HR Civil Service Coordinator (11/6/17)

Human Resource Assistant (11/20/17)

Senior Attorney (2/26/18)

Paralegal (2/26/18)

FY 2018 Personnel Savings $68,030

FY 2018 Operating Expenses Budget $35,300

FY 2018 Operating Expenses Estimate $151,246

FY 2018 Projected Variance ($47,916)

COUNCIL PRIORITIES

RECURRING FUNDING SUMMARY

GENERAL FUND

Category Amount

Mandates & Contractual Increases

$871K

Compensation & Benefits $5.3M

Public Safety $2.2M

Priorities & Needs $365K

IT Projects $514K

Total $9.2M

DEFERRED/DECLINED REQUESTS

No. FTEs Amount

General Fund Total 78 55 19,424,681$

Other Funds Total 24 5 9,193,094$

City Total 102 60 28,617,775$

Requests

COUNCIL PRIORITIES – HIGHLIGHTS

Champion Great Neighborhoods

• Neighborhood Matching Grant Program

($150,000)

• Code Short Term Rental Enforcement

($112,952)

• Interstate Mowing ($100,200)

• Green Screen ($100,000 current year)

• Home Improvement Incentive Program

($84,000)


Enhance Regional Mobility• Transportation Services ($667,601)

• Autonomous Vehicle Program ($250,000)

• Street Maintenance Fund Balance ($3.8M)


Invest in Our Economy• Hotel & Convention Center ($125,000)

• ACVB $870,000

• Convention and Event Services Investments

($950,000)

• Commercial Dishwasher

• Airwall Track Repair

• Internet Bandwidth and Wi-Fi System Upgrade

• Technology Maintenance & Upgrades

• Removable carpet, install labor & equipment

• Concession Equipment

COUNCIL PRIORITIES – HIGHLIGHTSPut Technology to Work

• Software Maintenance ($130,000)

• Department Technology Projects ($1.3M)• Police Digital Video Systems

• Laserfiche Upgrade

• Inspection Scheduling

• Ap.com Enhancements

• Police Staffing Solution

• Court Software Enhancements

• ERP System Assessment/Plan Development ($200,000)

• Video Magistration ($15,000)


Support our Youth and Families• AISD School Resource Officers ($84,762

net recurring plus vehicle)

• Restore Library Funding ($95,265)

• New Parks Development O&M ($122,895)

• Playground Equipment Replacement ($400,000)

• Reopen Texas Rangers Golf Couse ($508,504 in Park Performance Fund)

CORE SERVICES – HIGHLIGHTS

Public Safety

• COPS Grant Transition ($1.1 M)

• Fire Prevention Staffing ($104,141)

• Security Contract Increase ($61,106)

• Fire Utility Increases ($51,785)

• Civilian Investigators ($268,788)

• Fire Station 17 Staffing ($247,597)


Financial / Economic Development

• Property/Casualty Insurance

Premiums ($70,886)

• TAD/Tarrant County Increases

($98,086)

• Payroll Staff Accountant ($77,540)

• Janitorial Contract Increases

($201,709)


Infrastructure

• Storm Water Graduate Engineer

($105,731)

• Fleet Property Site Mitigation

($525,000)

OTHER FUNDS

CONVENTION & EVENT SERVICES PROGRAM

CHANGES• Revenues are $321k higher than FY 2018

• Hotel Occupancy Tax up $482K

• Convention Center Revenues down $161K

• FY 2019 Expenditures

• New Recurring Expenses $525K

• Funding for ACVB $400K

• Internet, WiFI & Technology Maintenance $125k

• One-time Expenses $1.295M

• ACVB $470,000

• Commercial Dishwasher $175k

• Airwall Track Repair $200k

• Internet Bandwidth upgrade $150k

• HVAC, Concession equipment, carpet $300,000

PARK PERFORMANCE FUND PROGRAM CHANGES

• Revenues are $509k higher than FY 2018

• Golf revenue is up $560k due to Texas Rangers Golf Club re-opening

• Recreation and Field revenues are down $50,425 from FY 2018

• FY 2019 expenditures are $897k higher than FY 2018

• Golf expenditures are up $781k

• Recreation expenditures are up $113k

• Field expenditures are up $3,036

• Transfer in from Parks ATF until TRGC clubhouse fully operational - $1.8M

COMMUNICATION SERVICES PROGRAM CHANGES

• FY 2019 Revenues and Expenditures

• Mid-year compensation alignment impact on FY

2019 ($577k)

• 9-1-1 PBX ($100k) paid from beginning fund balance

• $1.73M of expenditures for CAD and radio

maintenance moved to this fund, paid from CES

non-HOT revenues

IT SUPPORT FUND PROGRAM CHANGES

• One-time project expenses $779,910

• City Website Rebuild Phase II $43,400

• Network Intrusion Detection $100,000

• Supplementary Resources for Enterprise IT Projects $156,510

• Enterprise IT Projects $435,000

• New Recurring expenses $518,700

• City Website Rebuild Phase II $33,700

• Network Intrusion Detection $100,000

• Software Maintenance $130,000

• Enterprise IT Projects $255,000

STORM WATER UTILITY FUND

STREET MAINTENANCE FUND• Sales tax increase of almost $500k over

current year estimate

• $3.8M in additional contracted street

maintenance

WATER UTILITIES

WATER FIXED MONTHLY CHARGE

WATER CONSERVATION RATES

RESIDENTIAL BLOCK STRUCTURE

COST OF SERVICE

COMMERCIAL VOLUME RATE

BLOCK STRUCTURE

WATER CONSERVATION RATES

CONSTRUCTION METER RATES

SEWER FIXED MONTHLY CHARGE

COST OF SERVICE

SEWER RATE

CUSTOMER IMPACT

RESIDENTIAL WATER RATES

FOR 10,000 GALLONS

$3

6.6

6

$3

8.5

6

$3

8.9

8

$3

9.0

5

$4

1.5

1

$4

3.5

8

$4

3.6

0

$4

6.7

0

$4

7.0

1

$4

8.8

9

$5

0.6

7

$5

6.1

3

$5

7.5

0

$5

7.6

0

$5

8.1

0

$5

9.4

5

$6

4.4

0

$6

4.6

8

$6

9.7

3

$6

9.9

4

$8

2.3

4

$- $10 $20 $30 $40 $50 $60 $70 $80 $90

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Source Data: Texas Town & City, May 2018

and City Websites

*Arlington’s proposed increase compared to other cities

prior to their increase

COMMERCIAL WATER RATES

FOR 50,000 GALLONS

*Arlington’s proposed increase compared to other cities

prior to their increase

$1

54

.73

$2

26

.83

$2

29

.61

$2

36

.60

$2

45

.18

$2

47

.30

$2

73

.37

$2

73

.88

$2

74

.00

$2

79

.30

$2

83

.98

$2

84

.95

$2

86

.34

$3

15

.04

$3

26

.53

$3

36

.07

$3

50

.00

$3

51

.60

$3

53

.30

$3

57

.38

$3

85

.27

$- $50

$100 $150 $200 $250 $300 $350 $400 $450

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Source Data: Texas Town & City, May 2018

and City Websites

FUNDING FOR RESERVES

SELECTED CITY RESERVES

OTHER POST

WORKING BUSINESS LANDFILL EMPLOYMENT

UNALLOCATED CAPITAL CONTINUITY LEASE BENEFITS

Balance on October 1, 2017 7,219,801$ 20,055,003$ 4,062,075$ 17,151,326$ 1,717,904$

Appropriated Amounts - - - - -

Transfers In / (Out) 382,131 1,061,471 - - -

Balance on September 30, 2018 7,601,932$ 21,116,474$ 4,062,075$ 17,151,326$ 1,717,904$

Appropriated Amounts - - - - -

Transfers In / (Out) - - - - -

Balance on September 30, 2019 7,601,932$ 21,116,474$ 4,062,075$ 17,151,326$ 1,717,904$

SELECTED FINANCIAL RESERVES

FY 2019 OPERATING POSITION

FY 2019 SUMMARY OF RESERVES

Working Capital,

$21,116,474

Unallocated, $7,601,932

BCR, $4,062,075

OPEB, $1,717,904

Landfil l , $17,151,326

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

$55,000,000

FY 2019 Reserves Summary

Not Required: $13.72m

Required: $37.93m

RESERVE TRENDS

CHANGE IN AVERAGE HOME VALUE

BUDGET CALENDAR• Special Budget Meeting – August 14

• Scheduled Council Meetings

• August 21 – first public hearing on the tax rate

• Town Hall meetings

• August 23, 6:30 S. Police Service Center

• August 30, 6:30pm Council Chambers City Hall• Second public hearing on the tax rate

• September 4

• Budget Public Hearing• First vote on budget and tax rate

• September 13

• Second vote on budget and tax rate

QUESTIONS?

2019 proposed budget and business plan city of …...corpus christi mansfield dallas carrollton...

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