city of denton · objective 2.1.3. improve the design criteria for all dedicated roadways....

City of Denton2012-2013

Annual Program of Services

Denton Municipal Electric’s Engineering and Operations Building

CITY OF DENTON

AS APPROVED BY

THE MAYOR AND CITY COUNCIL

MARK A. BURROUGHS, MAYOR PETE KAMP, MAYOR PRO TEM

JIM ENGELBRECHT, COUNCIL MEMBER DALTON GREGORY, COUNCIL MEMBER

JAMES KING, COUNCIL MEMBER KEVIN RODEN, COUNCIL MEMBER CHRIS WATTS, COUNCIL MEMBER

ON

SEPTEMBER 11, 2012

The following statement is provided in accordance with state law:

This budget will raise more total property taxes than last year’s budget by $2,099,160 or 4.75% and of that amount $918,440 is tax revenue to be raised from new property added to the tax roll this year.

ADOPTED

ANNUAL PROGRAM OF SERVICES

2012-13

CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES

1 DENTON SERVICE Whatever * It * Takes!

PREPARED BY: George C. Campbell City Manager

Jon Fortune Assistant City Manager

Howard Martin Assistant City Manager

John Cabrales, Jr.

Assistant City Manager Bryan Langley

Assistant City Manager

Antonio Puente, Jr. Assistant Director of Finance

Michelle McCallum Budget and Municipal Court Manager

Harvey Jarvis Controller

Mike Halsema Financial Analyst

Cindy Hartman

Budget Technician Christine Taylor

Budget Technician

Mary Dickinson

Utility Budget Manager David Wilson

Utility Business Manager

Nancy Towle Utility Budget and Rate Manager

Nicholas Vincent Utility Financial Administrator

Caroline Finley

Treasury Administrator Randee Klingele

Treasury Services Specialist

Cody Wood Assistant Controller

Diane Chang, CPA

Senior Grant Accountant

Cindy Liang, CPA Accountant III

Kevin Ann Mullen, CPA Assistant Controller

Kurt Breyfogle

Senior Utility Accountant

Edward Lane, CPA Accountant III

Randall Mahaffey, CIA

Senior Accountant

Theresa Jaworski

Finance Administrative Assistant

Special Thanks to our Public Communications Office for the design of the cover and dividers, publication of the

Annual Program of Services, and Web page design and postings

Visit our website at: www.cityofdenton.com



In April 2011, the City of Denton adopted a new strategic plan. The strategic plan is organized into five Key Focus Areas (KFAs) and the major goals and objectives of the plan are described in the Strategic Plan section of this document. Below are the vision, mission, and values that have provided a framework for the strategic plan.

VISION “Destination Denton”

Denton is an identifiable and memorable destination and a community of opportunities. We achieve this by providing high quality of life through excellence in education, entertainment, and employment; neighborhood vitality and sustainability; environmental and financial stewardship; and superior public facilities and services.

MISSION

“Dedicated to Quality Service”

The City of Denton will foster an environment that will deliver extraordinary quality services and products through stakeholder, peer group, and citizen collaboration; leadership and innovation; and sustainable and efficient use of resources.

VALUES

“We Care”

We care about our people, our community, and our work. We do this with integrity, respect, and fairness.



[Type text]

Mark A. Burroughs Mayor Term Expires: May 2014

Kevin Roden Dalton Gregory Jim Engelbrecht Council Member Council Member Council Member District 1 District 2 District 3 Term Expires: May 2013 Term Expires: May 2013 Term Expires: May 2013

Chris Watts Pete Kamp James King Council Member Mayor Pro Tem Council Member District 4 At Large Place 5 At Large Place 6 Term Expires: May 2013 Term Expires: May 2014 Term Expires: May 2014

CITY OF DENTON ELECTED OFFICIALS



City of Denton Voter District Map

4/2012



Boards, Commissions, & Committees City Attorney

Municipal Judge Internal Audit

City Manager's Office

City Secretary

Reprographics

Public Communications

Administrative Services

Accounting/Budget/Treasury

Municipal Court

Materials Management

Customer Service

Finance

Risk Management

Human Resources

Technology Services

Library

Strategic Services


Electric Operations

Environmental Services

Water Operations

Wastewater Operations

Drainage

Streets

Traffic / Street Lighting

Engineering

Water/Wastewater Utilities


Leisure Services

Park Maintenance

Parks & Recreation

Building Inspections

Code Enforcement

Community Development

Development Review

Gas Well Review

Planning & Development

Economic Development

PIO/Intergovernmental Relations


Fire

Animal Services

Police

Landfill

Recycling

Residential Collections

Commercial Collections

Solid Waste Operations

Fleet Services

Facilities Management

Transportation

Aviation


City Manager

Citizens

City Council

CITY OF DENTON CURRENT ORGANIZATIONAL CHART



CITY OF DENTON BOARDS, COMMISSIONS, AND COUNCIL COMMITTEES

JUDICIAL OR QUASI-JUDICIAL BOARDS

CIVIL SERVICE COMMISSION

HEALTH AND BUILDING STANDARDS COMMISSION

HISTORIC LANDMARK COMMISSION

PLANNING AND ZONING COMMISSION

ZONING BOARD OF ADJUSTMENT

ADVISORY BOARDS

AIRPORT ADVISORY BOARD

ANIMAL SHELTER ADVISORY COMMITTEE

COMMUNITY DEVELOPMENT ADVISORY COMMITTEE

DOWNTOWN DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE BOARD

ECONOMIC DEVELOPMENT PARTNERSHIP BOARD

HUMAN SERVICES ADVISORY COMMITTEE

LIBRARY BOARD

PARKS, RECREATION, AND BEAUTIFICATION BOARD

PUBLIC ART COMMITTEE

PUBLIC UTILITIES BOARD

TRAFFIC SAFETY COMMISSION

CITY COUNCIL COMMITTEES

AGENDA COMMITTEE

AIRPORT COMMITTEE

AUDIT/FINANCE COMMITTEE

COMMITTEE ON THE ENVIRONMENT

COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE

COUNCIL ETHICS COMMITTEE

COUNCIL MOBILITY COMMITTEE

HOTEL OCCUPANCY TAX COMMITTEE

COMMITTEE ON CITIZEN ENGAGEMENT



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Compensation -------------------------------------------------------------------------------------------------------------------------------------

Other Agency Contributions--------------------------------------------------------------------------------------------------------------------------------------

Grants--------------------------------------------------------------------------------------------------------------------------------------

Capital Improvement Program--------------------------------------------------------------------------------------------------------------------------------------

Utility Funds-------------------------------------------------------------------------------------------------------------------------------------

Internal Service and Miscellaneous Funds -----------------------------------------------------------------------------------------------------------------------------------

Budgetary Policies-------------------------------------------------------------------------------------------------------------------------------------

Financial Structure--------------------------------------------------------------------------------------------------------------------------------------

Budgeted Funds--------------------------------------------------------------------------------------------------------------------------------------

Reserve Level-------------------------------------------------------------------------------------------------------------------------------------

Revenues--------------------------------------------------------------------------------------------------------------------------------------

Expenditures--------------------------------------------------------------------------------------------------------------------------------------

Major Budget Documents--------------------------------------------------------------------------------------------------------------------------------------

The Budget Process--------------------------------------------------------------------------------------------------------------------------------------

Organization of the Budget--------------------------------------------------------------------------------------------------------------------------------------

BUDGET OVERVIEW

General Fund Expenditure Enhancements--------------------------------------------------------------------------------------------------------------------------------------

Budget Flow Charts--------------------------------------------------------------------------------------------------------------------------------------

TABLE OF CONTENTS

2012-13

Mission Statement--------------------------------------------------------------------------------------------------------------------------------------

Voter District Map --------------------------------------------------------------------------------------------------------------------------------------

Elected Officials--------------------------------------------------------------------------------------------------------------------------------------

Budget Basis--------------------------------------------------------------------------------------------------------------------------------------

Organizational Chart--------------------------------------------------------------------------------------------------------------------------------------

City Boards, Commissions, and Council Committees--------------------------------------------------------------------------------------------------------------------------------------

Manager's Message--------------------------------------------------------------------------------------------------------------------------------------

Budget Calendar--------------------------------------------------------------------------------------------------------------------------------------

MANAGER'S MESSAGE and READER'S GUIDE

Organizational Relationships--------------------------------------------------------------------------------------------------------------------------------------

Key Performance Indicators - KFA 3: Sustainable Economic Development & Environmental Stewardship--------------------------------------------------------------------------------------------------------------------------------------

Key Performance Indicators - KFA 5: Partnership and Regional Leadership--------------------------------------------------------------------------------------------------------------------------------------

STRATEGIC PLAN

Strategic Plan Overview ------------------------------------------------------------------------------------------------------------------------------------

Strategic Plan Goals and Objectives ------------------------------------------------------------------------------------------------------------------------------------

Strategic Plan Matrix ------------------------------------------------------------------------------------------------------------------------------------

Key Performance Indicators - KFA 1 : Organizational Excellence --------------------------------------------------------------------------------------------------------------------------------------

Key Performance Indicators - KFA 2: Public Infrastructure --------------------------------------------------------------------------------------------------------------------------------------

Key Performance Indicators - KFA 4: Safe, Livable, and Family Friendly Community--------------------------------------------------------------------------------------------------------------------------------------

Strategic Plan Executive Summary ------------------------------------------------------------------------------------------------------------------------------------



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Parks and Recreation-------------------------------------------------------------------------------------------------------------------------------------

Social Services---------------------------------------------------------------------------------------------------------------------------------------------

Combined Expenditures by Classification-------------------------------------------------------------------------------------------------------------------------------------

Libraries-------------------------------------------------------------------------------------------------------------------------------------

Positions by Program Summary-------------------------------------------------------------------------------------------------------------------------------------

Major Revenue Summary--------------------------------------------------------------------------------------------------------------------------------------

General Resources Summary-------------------------------------------------------------------------------------------------------------------------------------

FINANCIAL SUMMARY

Budget Resource and Expenditure Summary-------------------------------------------------------------------------------------------------------------------------------------

Consolidated Fund Summary-------------------------------------------------------------------------------------------------------------------------------------

Estimated Ad Valorem Tax Collections & Distribution-------------------------------------------------------------------------------------------------------------------------------------

Fire-------------------------------------------------------------------------------------------------------------------------------------

Municipal Court-------------------------------------------------------------------------------------------------------------------------------------

General Fund - Five Year Forecast--------------------------------------------------------------------------------------------------------------------------------------

Water Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------------------------------------

Combined Appropriable Fund Balances-------------------------------------------------------------------------------------------------------------------------------------

Combined Position Summary-------------------------------------------------------------------------------------------------------------------------------------

Public Safety Summary-------------------------------------------------------------------------------------------------------------------------------------

Human Services Funding Recommendation--------------------------------------------------------------------------------------------------------------------------------------

Neighborhood Services Summary-------------------------------------------------------------------------------------------------------------------------------------

Municipal Judge-------------------------------------------------------------------------------------------------------------------------------------

Planning-------------------------------------------------------------------------------------------------------------------------------------

Public Safety

Expenditures by Program Summary-------------------------------------------------------------------------------------------------------------------------------------

Police and Animal Services------------------------------------------------------------------------------------------------------------------------------------

Transportation

Transportation Summary-------------------------------------------------------------------------------------------------------------------------------------

Traffic and Transportation Operations-------------------------------------------------------------------------------------------------------------------------------------

Wastewater Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------------------------------------

Solid Waste Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------------------------------------

Neighborhood Services

GENERAL FUND

General Fund Resource & Expenditure Summary--------------------------------------------------------------------------------------------------------------------------------------



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Program Description-----------------------------------------------------------------------------------------------------------------------------------

Resource & Expenditure Summary-------------------------------------------------------------------------------------------------------------------------------------


Administrative & Community Services

Administrative & Community Services Summary-------------------------------------------------------------------------------------------------------------------------------------

City Manager's Office-------------------------------------------------------------------------------------------------------------------------------------

Economic Development-------------------------------------------------------------------------------------------------------------------------------------

Facilities Management-------------------------------------------------------------------------------------------------------------------------------------

Public Communications Office-------------------------------------------------------------------------------------------------------------------------------------

Human Resources------------------------------------------------------------------------------------------------------------------------------------

Internal Audit-------------------------------------------------------------------------------------------------------------------------------------

Legal Administration-------------------------------------------------------------------------------------------------------------------------------------

Finance-------------------------------------------------------------------------------------------------------------------------------------

Non-Departmental-------------------------------------------------------------------------------------------------------------------------------------

GENERAL DEBT SERVICE FUND

Debt Management Summary------------------------------------------------------------------------------------------------------------------------------------

General Debt Service Fund Resource & Expenditure Summary-------------------------------------------------------------------------------------------------------------------------------------

Principal & Interest Requirements------------------------------------------------------------------------------------------------------------------------------------

Drainage Summary -----------------------------------------------------------------------------------------------------------------------------------

Resource & Expenditure Summary-------------------------------------------------------------------------------------------------------------------------------------


ELECTRIC FUND

WATER FUND

Principal & Interest Requirements-----------------------------------------------------------------------------------------------------------------------------------

Expenditure by Classification-----------------------------------------------------------------------------------------------------------------------------------

AIRPORT ENTERPRISE FUND


Resource & Expenditure Summary-----------------------------------------------------------------------------------------------------------------------------------

WASTEWATER FUND




SOLID WASTE FUND







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Park Land Dedication Trust ----------------------------------------------------------------------------------------------------------------

Park Development Trust -----------------------------------------------------------------------------------------------------------------------------------

Miscellaneous Special Revenue -----------------------------------------------------------------------------------------------------------------------------------

RECREATION FUND

Downtown Tax Increment Financing Fund -----------------------------------------------------------------------------------------------------------------------------------

MATERIALS MANAGEMENT FUND



FLEET MANAGEMENT FUND


TECHNOLOGY SERVICES FUND




RISK RETENTION FUND




HEALTH INSURANCE FUND

Non-Airport Gas Well -----------------------------------------------------------------------------------------------------------------------------------

Tourist and Convention-----------------------------------------------------------------------------------------------------------------------------------

Police Confiscation -----------------------------------------------------------------------------------------------------------------------------------

Traffic Safety -----------------------------------------------------------------------------------------------------------------------------------




Grants Budget Expenditure Summary---------------------------------------------------------------------------------------------------------------------------------

Parks Gas Well -----------------------------------------------------------------------------------------------------------------------------------

Tree Mitigation -----------------------------------------------------------------------------------------------------------------------------------

Public Education Government (PEG) -----------------------------------------------------------------------------------------------------------------------------------


STREET IMPROVEMENT FUND


MISCELLANEOUS FUNDS

McKenna Trust -----------------------------------------------------------------------------------------------------------------------------------




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North Texas Metroplex Map -----------------------------------------------------------------------------------------------------------------------------------

Certified Property Values-----------------------------------------------------------------------------------------------------------------------------------

Budget Glossary -----------------------------------------------------------------------------------------------------------------------------------

CAPITAL IMPROVEMENT PROGRAM

Capital Improvement Program -----------------------------------------------------------------------------------------------------------------------------------

Capital Budgeting Calendar ----------------------------------------------------------------------------------------------------------------------------------

General Fund Capital Improvement Program ----------------------------------------------------------------------------------------------------------------------------------

Utilities Capital Improvement Program -----------------------------------------------------------------------------------------------------------------------------------

BUDGET GLOSSARY

FINANCIAL POLICIES

Budget and Investment Policies -----------------------------------------------------------------------------------------------------------------------------------

Sales and Property Tax History-----------------------------------------------------------------------------------------------------------------------------------

Major Employers-----------------------------------------------------------------------------------------------------------------------------------

Population Trend Analysis-----------------------------------------------------------------------------------------------------------------------------------

STATISTICAL INFORMATION

Profile of Denton-----------------------------------------------------------------------------------------------------------------------------------

Miscellaneous Statistical Information-----------------------------------------------------------------------------------------------------------------------------------

Top Ten Taxpayers----------------------------------------------------------------------------------------------------------------------------------

Assessed & Estimated Actual Value of Taxable Property --------------------------------------------------------------------

Certified Values by Property Class-----------------------------------------------------------------------------------------------------------------------------------



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215 E. MCKINNEY • DENTON, TEXAS 76201 • (940) 349-8200 • FAX (940) 349-7206

September 11, 2012

TO THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL:

Pursuant to provisions of the City Charter and on behalf of the staff, I respectfully submit to you the FY 2012-13 Budget. The Budget has been developed to accomplish the goals and objectives that were outlined in the City of Denton’s Strategic Plan which was adopted in April 2011 and affirmed by the City Council during their annual planning retreat in January 2012. The Strategic Plan addresses five Key Focus Areas (KFAs):

1. Organizational Excellence 2. Public Infrastructure 3. Sustainable Economic Development and Environmental Stewardship 4. Safe, Livable, and Family Friendly Community, and 5. Partnerships and Regional Leadership.

The Strategic Plan serves as a foundation for the development of this budget, and accordingly, enhancements to programs and/or funding is specifically discussed in the context of the Strategic Plan. While this budget makes many strides to implement the Strategic Plan, there are many objectives which will take several years to achieve. As such, the FY 2012-13 Budget should be considered the first of many steps in a long-term financial plan to achieve our goals. Fortunately, I am pleased to report several positive trends in major General Fund revenue sources which will enable us to continue making progress in achieving our objectives. Sales tax revenues have shown significant improvement throughout the year, and collections are expected to be 9.4% higher than the original budgeted amount for FY 2011-12 and 12.2% higher than the prior year actual. Similar to sales tax, property values have increased by 4.75% over the prior year tax roll. Together, with the significant expenditure reductions that have been made in prior years, the City of Denton is now financially well positioned to achieve our goals. In a citizen survey conducted in 2008 (results were presented to the City Council in 2009), respondents indicated additional emphasis was needed in maintaining and repairing streets throughout the City. In 2011, the Strategic Plan specifically identified improving our street infrastructure as a major goal, and through a detailed analysis, it was determined that $10 million



in street maintenance funding was needed on an annual basis compared to the $2.8 million budgeted at that time just to maintain the current overall condition of our streets. In response to this goal, the FY 2011-12 Adopted Budget significantly increased street maintenance funding from $2.8 million to $3.5 million. In addition, the FY 2011-12 Adopted Budget created a standalone Street Improvement Fund to provide a dedicated mechanism to account for street maintenance and improvement activities. For the FY 2012-13 Budget, street maintenance funding will increase substantially again to approximately $4.2 million. Further, the five-year financial plan has been developed to increase maintenance funding for the City’s street infrastructure to approximately $7.6 million by FY 2016-17. While still below our goal, we are pleased to recommend this positive initiative to improve our City’s streets and set the stage for additional funding of street maintenance in the years to come. In addition, it is expected that the citizens of Denton will be asked to approve a $20.4 million bond program in November 2012 to fully reconstruct many of the streets in the community. Combined with the additional street maintenance funding outlined above, the City has taken a dramatic step to improve our roadways and fulfill the goals established in the Strategic Plan. In addition to improving the City’s street infrastructure, the enhancement of public safety in the community is also identified in the Strategic Plan as a major initiative. Accordingly, the FY 2012-13 Budget recommends approximately $1.3 million in funding enhancements for public safety programs. In particular, a new front line medic unit with staffing is proposed for the Fire Department, and additional personnel are also recommended for the Police Department to improve service delivery. Finally, the Budget includes increased funding and personnel for the new Animal Care and Adoption Center which is planned for construction beginning in 2013. The City also continues to strive to contain costs while providing essential services to the community. Over the past two fiscal years, the City instituted a “managed vacancies” program. Throughout the fiscal year, as position vacancies and attrition rates dictate, vacant positions are evaluated by City management and according to the needs of the organization, positions are filled or left vacant. For FY 2012-13, the managed vacancy program will be continued, and the savings for the fiscal year will be approximately $0.9 million. The overall FY 2012-13 Budget is $745.0 million and includes 1,403.33 full-time equivalent positions (FTEs). A comprehensive summary of the budget is provided in the Budget Overview section of this document. The key elements of the Budget include the following: No tax rate increase. The total tax rate is maintained at $0.68975 per $100 of assessed

valuation. Of this amount, $0.47088 is provided for operations and maintenance and $0.21887 is provided for debt service. The effective tax rate is $0.68046.

As detailed in the Budget Overview section of this document, a combined net increase of 50.15 FTEs for all funds compared to the FY 2011-12 estimate including:

o 7.27 FTEs in Neighborhood Services o 9.5 FTEs in Public Safety o 2.0 FTEs in Administrative and Community Services o 1.0 FTE in Airport o 3.0 FTEs in the Street Improvement Fund



o 22.38 FTEs in Utilities o 1.0 FTE in Materials Management o 2.0 FTEs in Technology Services

An enhanced five-year Denton Municipal Electric (DME) capital improvement program

for FY 2013-17. An increase in street maintenance funding of $0.7 million. No base rate increases for our Electric customers. An average base rate increase of 8.0% for our Water customers. An average base rate increase of 9.0% for our Wastewater customers. An increase in the monthly standard refuse cart fee from $19.25 to $20.10 and other Solid

Waste fee changes as detailed in the Budget Overview section of this document. A 3% average merit increase for non-civil service employees (3% pay adjustment for

civil service employees) and normally programmed step increases for Police and Fire civil service employees is included. In addition, funding has been included for equity pay adjustments for employees whose salary is below the market rate for their positions.

The FY 2012-13 Budget has been developed within the context of a five-year financial plan. The purpose of this approach is to provide a long-term perspective for decisions in the coming fiscal year. As we develop future forecasts, we will continue to evaluate our ability to fund our strategic priorities and sustain a balance between revenues and expenditures. Each utility budget is also developed within the context of a long-range financial plan and is based on various financial strategies that support and strengthen the financial health of each utility. Additional rate increases are planned in the future to address aging infrastructure issues and ensure that adequate working capital and rate stabilization reserves are maintained. The Five-Year Financial Forecast will be reviewed and revised annually as necessary to support these utility financial objectives, and the key assumptions for these plans are described in this document. I sincerely thank the members of the Denton City Council for their hard work and dedication to the citizens of Denton. The input of the City Council and Public Utilities Board has been invaluable in the preparation of the FY 2012-13 Budget, Capital Improvement Plan (CIP), and Five-Year Financial Forecast. Appreciation is also expressed to members of the professional staff, particularly in the Finance Department for their diligence in the preparation of the Budget. It is an exciting time for the City of Denton. The Rayzor Ranch project is nearing completion on the northern section of the development, and the southern section of the project is planned to begin in the near future. A redevelopment of the Golden Triangle Mall and Fry Street areas is also underway to bring new features and amenities to the community. In addition, the City is beginning work to expand the Bonnie Brae Street and Mayhill Road thoroughfares. These significant roadway improvements are expected to cost approximately $114 million, with about $91 million being provided from Regional Toll Revenue (RTR) funds.

Recently, the City completed the Downtown Implementation Plan (DTIP) and several developments are planned for this important section of the community. The Denton County Transportation Authority (DCTA) also voted to continue Friday night service of the A-Train



offering citizen’s access to alternate transportation on the weekend. With these new developments, the downtown area is positioned for future growth.

With significant investments in our organization, people, and infrastructure, I am confident that this Budget prepares the City of Denton for future success as well. With your support, and the dedication of our capable staff, we will ensure that quality services are provided to the citizens of Denton.

Sincerely,

George C. Campbell, City Manager



January 31 City Council Retreat – Discussion of Strategic Goals.

March 9 March 27

Internal Services Budget Due. Budget Kick-Off: Operating and Capital Improvement Program.

April 30

Departmental budgets due to Budget Office (Operating and CIP).

May 7 Public Utilities Board reviews Utility budgets and CIP.

May 21 Public Utilities Board reviews Utility budgets and CIP.

May 18-June 5 Budget reviews with City Manager.

June 5 City Council Meeting – Preliminary Five-Year Financial Forecast and Budget Discussions.

June 11 Public Utilities Board reviews Utility budgets and CIP.

June 25 Public Utilities Board approves Utility budgets and CIP.

July 23

Certified appraisal rolls due from Denton Central Appraisal District.

July 27 Proposed budget and CIP submitted to City Council and placed on file with City Secretary. Submission of certified appraisal roll. Submission of ad valorem effective and rollback tax rates to City Council. Submission of certified ad valorem collection rate to City Council.

August 2 City Council Budget Workshop.

August 7

Vote to Consider a Proposal for a Tax Increase Prior to Publishing Notice of Hearing. Budget Work Session with the City Council.

August 21 First Public Hearing on Tax Increase. Public Hearing on Budget. Budget Work Session with the City Council.

August 28 Second Public Hearing on Tax Increase. Budget Work Session with the City Council.

September 11 City Council adopts Annual Program of Services. City Council adopts first year of Capital Improvement Program budget. City Council approves tax rate. City Council approves utility rates. City Council approves the 2012 tax roll.

BUDGET CALENDAR 2012-13



BUDGET INSTRUCTION MANUAL

CITY COUNCIL DISCUSSIONS/FIVE YEAR FORECAST

ADOPTED BUDGET

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

LONG RANGE FINANCIAL FORECAST

TRAINING FOR SUPPORT STAFF/BUDGET GUIDELINE REVIEW

CITY COUNCIL ISSUE DEVELOPMENT

BUDGET DEVELOPMENT

BUDGET ANALYSIS/COMPILATION

CITY COUNCIL BUDGET STUDY

PUBLIC HEARING/BUDGET ADOPTION

COMPILATION OF ADOPTED BUDGET

END OF CURRENT FISCAL YEAR START OF NEW FISCAL YEAR

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

PRODUCTION AND SUBMISSION OF MAJOR BUDGET DOCUMENTS

OPERATING BUDGET CYCLE

BUDGET MAINTENANCE

PROPOSED BUDGET/BUDGET OVERVIEW

AND MANAGER'S MESSAGE



The Reader's Guide provides an overview of the City of Denton’s budget process and budget documents. The City of Denton has prepared a budget designed to meet the highest standards of performance in municipal budgeting. This document provides a summary of all budgeted funds, including both revenue and expenditure summaries. Major budget documents, the budget process, and organization of the budget itself are described below.

MAJOR BUDGET DOCUMENTS

The City of Denton’s budget process includes the production of five key documents. It is important to understand the timing and purpose of these documents in order to fully understand the process itself.

1. The Budget Instruction Manual - March

Prior to budget development and training of departmental support staff, the Budget Instruction Manual is drafted and completed in March. This document serves as a development guide and includes sections on annual budget highlights and specific development instructions, as well as, appendices with rate calculations, format examples, and supplemental forms.

2. Long-Range Financial Forecast – June

In June, the City Council meets to discuss the preliminary Long-Range Financial Forecast for the city. After this meeting, staff prepares a five-year forecast to address key service areas. The forecast is finalized at the end of July and included in the proposed budget document.

3. The Budget Overview and Manager’s Message - Late July

The Budget Overview and Manager’s Message is submitted to the City Council in late July as part of the proposed budget. This report summarizes and identifies key issues with regard to revenues and expenditures for the coming year.

4. The Proposed Budget - Late July

The proposed budget is submitted to the City Council in late July of each fiscal year. This document represents a balanced version of departmental budget requests versus projected resources. The proposed budget is a product of policy as expressed by the City Council and is prepared by the City Manager.

5. The Adopted Budget – September

The adopted budget represents a modified version of the proposed budget after public hearings and City Council review in August/September. Any changes deemed necessary by City Council to funding levels or revenue projections are reflected in the adopted budget. Revisions may also be made to reflect any updates to budget information.

READER’S GUIDE

2012-13 ANNUAL PROGRAM OF SERVICES

(OPERATING BUDGET)



THE BUDGET PROCESS

The City of Denton uses a program-oriented budgeting process. Each budgeting unit or division is given a "baseline" funding level based upon the previous year's funding level. Any funding request that represents new expenditures and programs, or that is in excess of adjusted baseline funding, must be submitted as a separate request or "package."

1. Budget Training for Support Staff/Budget Guideline Review Review

March is the time when existing budget guidelines, procedures, and forms are reviewed. Changes may be made to the budget process in order to make budget development more efficient and address format changes.

Preliminary budget training for departments is available prior to budget kickoff. During preliminary training, staff is informed of budgeting concepts and the budget process, as well as, given a quick introduction to the City's budget forms.

During budget kickoff, departments receive the budget instruction manual so that they may have specific instructions and a review of any changes to the budget process.

2. Long-Range Financial Forecast

A workshop is held in June with the City Council to discuss the preliminary Long-Range Financial Forecast for the city. After this meeting, staff refines the forecast to address key service areas. The recommended version of the forecast is included in the proposed budget document that is submitted to the City Council in July.

3. Revenue Projection

The budget revenue projections for the new fiscal year begin early in the current fiscal year. The projections are made by the departments responsible for the revenues with help from the Finance Department staff. Projections are based upon consultations with state and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions with directly associated staff members. Although revenue projections are prepared early in the budget process, the budget revenue analysis continues with departmental budget development and extends until the budget is adopted based upon any new information.

4. Proposed Budget Development

During budget development, the Finance Department staff work with departments to analyze requests, provide advice, and lend assistance. Budget requests are based upon a baseline funding level, and any additional funding is made in the form of supplemental requests.

5. Proposed Budget Analysis/Compilation

Once division and departmental budget requests are completed, the Finance Department reviews and compiles a preliminary draft of departmental budgets to present to the Management Team, which is comprised of the City Manager and Assistant City Managers.

A total recommended funding level is determined from both baseline and proposed supplemental packages. At this time, the funding level is weighed against available resources. A tax rate increase may or may not be recommended depending upon City Council program priorities and issues previously expressed in the budget process.



6. City Council Budget Study

The proposed budget, including the Budget Overview, is compiled as soon as possible after final appraised property value and other data are received. This report highlights and summarizes funding requirements, major changes in programs, and alternatives for funding.

A budget work session is held with the City Council to review and discuss the proposed budget. Discussions and study may follow at subsequent work sessions until budget adoption.

7. Public Hearing/Budget Adoption

A public hearing on the budget and two public hearings on the tax rate (if necessary) are held in September prior to final budget consideration. At the public hearings, citizens may make formal comments concerning the proposed budget and tax rate.

Budget adoption occurs in September after City Council deliberations and the public hearings. City Council may take action to modify the proposed budget. The City Council also adopts a tax rate to support adopted funding levels. Pursuant to City Charter, the proposed budget as submitted by the City Manager becomes the adopted budget if no City Council action is taken before the end of the fiscal year, September 30.

8. Compilation of Adopted Budget/Budget Maintenance

An adopted budget is compiled and published during the first months of the new fiscal year. The adopted budget in the form of an amended proposed budget is available for public inspection in December.

Budget maintenance is a year-round activity of the organization. Spending controls consist of budget holds, position control reviews, and budget transfer authorizations for unbudgeted expenses. Additional spending control mechanisms include monthly review of expenditures by the Finance Department.

During the budget process, departments make revenue and expenditure estimates for the current year.

Finally, program goals, objectives, and measures are evaluated during budget development to determine effectiveness of program activities and levels of appropriate funding for subsequent years.

ORGANIZATION OF THE BUDGET

Included in the Financial Summary section is a schedule entitled “Projected Appropriable Fund Balances.” This schedule provides the projected appropriable fund balances anticipated at the end of each fiscal year. The 2012-13 fiscal year-end fund balance is based on proposed 2012-13 revenue and expenditures. This information will be most helpful in determining whether fund balances are too high or too low with regard to goals set forth by the City Council. The General Fund Revenue Summary in the Financial Summary section describes the major revenue categories for the City of Denton, as well as, the various individual sources of those revenues.

BUDGETARY POLICIES

The City of Denton has developed administrative policies, which govern the formulation and administration of the annual budget. These administrative policies are incorporated within the City's Administrative Policies and Procedures Manual.



FINANCIAL STRUCTURE

The financial structure of the budget is organized by funds. A fund is generally defined as a fiscal and accounting entity which has its own self-balancing set of accounts for recording cash and other financial resources, as well as, any liabilities or residual equities or balances. Normally, funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. However, when appropriate, funds are made up of departments. The two types of funds utilized in this budget are Governmental and Proprietary. The specific funds that make up the Governmental Fund type are General Fund, Recreation Fund, Street Improvement Fund, General Debt Service Fund, Tourist and Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Non-Airport Gas Wells Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government (PEG) Fund, McKenna Trust Fund, Park Land Dedication and Development Trust Funds, Downtown Tax Increment Financing (TIF) Fund, and Miscellaneous Special Revenue Funds. The Proprietary Fund types are Electric Fund, Water Fund, Wastewater Fund, Solid Waste Fund, Airport Fund, Materials Management Fund, Fleet Management Fund, Technology Services Fund, Risk Retention Fund, and the Health Insurance Fund. Each of the above-mentioned funds operates separately and independently from one another; therefore, they are budgeted separately and include separate financial statements.

BUDGETED FUNDS

The City of Denton’s budget consists of various funds. Each fund represents a specific function and maintains individual objectives. The City of Denton’s budget includes the following funds:

General Fund – The General Fund reflects the City’s general service operations such as public safety, libraries, and parks. The General Fund’s two major revenue sources are sales and ad valorem taxes.

Debt Service Fund – The Debt Service Fund is used to record and control the accumulation of resources for payment of general obligation long-term debt principal and interest. The City issues debt to acquire or construct capital assets such as roads or parks for the general benefit of Denton citizens. Resources include an applicable portion of the ad valorem tax levy and related interest income usable from debt service.

Special Revenue Funds – Special Revenue Funds are used to account for the receipt of specific revenue sources that are restricted for expenditures for a specified purpose. Included in the special revenue funds are: the Recreation Fund, Street Improvement Fund, Tourist and Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Non-Airport Gas Wells Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government (PEG)Fund, McKenna Trust Fund, Park Land Dedication and Development Trust Funds, Downtown Tax Increment Financing Fund, and Miscellaneous Special Revenue Funds.

Recreation Fund − The Recreation Fund is used to account for the Parks and Recreation programs, such as children’s programs and recreation center programs, which are self-supporting.

Street Improvement Fund –The purpose of the fund is to provide a dedicated mechanism to account for street maintenance and improvement activities. The fund will receive revenue from a portion of the franchise fees previously accounted for in the General Fund, as well as, street cut reimbursements. Additionally, interest cost savings associated with the sale of Certificate’s of Obligation in lieu of Revenue Bonds will also be recorded as revenue.

Downtown Tax Increment Financing Fund – The TIF fund will be used for downtown development projects, and it accounts for the tax revenues that are collected above the FY 2010-11 level in the downtown area.



Tourist and Convention Fund –This fund reports the receipt and distribution of the City’s Hotel Occupancy Tax, which is levied at 7% of room rental rates. Each October the City Council enters into contracts with various organizations that will promote tourism and the convention and hotel industry in Denton.

Police Confiscation Fund – The Police Confiscation Fund is used to record the receipt and expenditure of confiscated contraband that is used in the commission of a variety of criminal offenses. Expenditures from this fund are allocated to the Police Department for materials, supplies, and operations costs.

Traffic Safety Fund – The Traffic Safety Fund is used to record the receipt of citations from red light camera violations. Revenues from this fund are used for materials to enhance traffic safety operations in the Police Department and Traffic Department.

Non-Airport Gas Wells Fund – The Non-Airport Gas Wells Fund is used to record the receipt of royalty, pooling, tax, and lease revenue related to gas wells. Expenditures from this fund will be used for projects with no ongoing costs.

Parks Gas Well Fund - The Parks Gas Well Fund was established to record the receipt of restricted gas well revenues on park property. Expenditures from this fund will be used for park system projects.

Tree Mitigation Fund – The Tree Mitigation Fund is used to purchase, plant, and maintain trees on public property, to preserve wooded property that remains in a naturalistic state in perpetuity, to perform and maintain a citywide tree inventory, and to educate citizens and developers on the benefits and value of trees.

Public Education Government (PEG) Fund – The PEG Fund provides for the acquisition of production equipment, capital, and other lawful PEG purposes. PEG fees are remitted to the city on a quarterly basis from cable subscribers.

McKenna Trust Fund – The McKenna Trust Fund is used to account for interest received from the George McKenna Trust, which was established in 1958 and is currently managed by JP Morgan Chase Bank. One half of the net income from this trust is distributed to Cook Children’s Hospital in Fort Worth and one half of the net income is distributed to the City of Denton for use only in maintaining, developing, preserving, and improving the George McKenna Park in the City.

Park Land Dedication and Development Trust Funds – The Park Land Dedication and Development Trust Funds are funds received from developers. These fees provide for neighborhood parks and projects within ½ to 1 mile radius of the development. The Park Land Dedication funds will be used on Owsley Park, Milam Park, Carl Young Park and Mack Park. The Park Development projects include neighborhood parks at Owsley Park, McKamy-Evers Park and North Pointe Park.

Miscellaneous Special Revenue Funds – The Miscellaneous Special Revenue Funds are comprised of the Animal Control Donation Fund, Police Donation Fund, and Fire Donation Fund.

Enterprise Funds – Enterprise funds are used to account for governmental activities that are similar to those found in private businesses. The City budget includes Electric, Water, Wastewater, Solid Waste, and Airport Enterprise Funds. Each fund reflects the services denoted in the title of each fund. The major revenue source for these enterprise funds is the rate revenue generated from the customers who receive the services provided.

Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services provided by one department to another department within the same government organization. Financing is based on reimbursement of actual costs. The internal service funds are Fleet Management, Technology Services, Materials Management, Risk Retention, and Health Insurance. Each internal service fund listed is funded through payments from various City departments for the actual services received from the specific fund.



Fleet Management Fund - The Fleet Management Fund accounts for the maintenance and repair of the City’s vehicle and equipment fleet.

Technology Services Fund – The Technology Services Fund provides computer services such as programming, support, training, and maintenance of the City’s computer resources and telephone maintenance.

Materials Management Fund – The Materials Management Fund is comprised of purchasing and warehouse operations. This internal service fund is responsible for procuring goods and services for City departments and the warehouse maintains an inventory of materials and supplies used by City departments.

Risk Retention Fund – The Risk Retention Fund records the activities associated with providing general liability insurance coverage and self funded activities for City operations.

Health Insurance Fund – The Health Insurance Fund accommodates self-insurance operations.

BUDGET BASIS

The budget for the General, Special Revenue, Debt Service, and Capital Improvement Program (CIP) Funds are prepared on the modified accrual basis of accounting. Under this basis of accounting, revenues are recognized when they become both "measurable" and "available" to finance expenditures of the current period except where the accrual basis is specified by generally accepted accounting principles. Expenditures are recognized when the related fund liability is incurred, except for (1) inventories of material and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long-term debts which are generally recognized when due. Budgets for the Enterprise and Internal Service Funds are prepared on the full accrual basis of accounting under which transactions are recognized when they occur regardless of timing or related cash flows.

ORGANIZATIONAL RELATIONSHIPS

A department is a major administrative segment of the City, which indicates overall management responsibility for an operation or a group of related operations within a functional area. The smallest organizational unit budgeted is the division. The division indicates responsibility for one functional area, and in many cases these functional areas are put together to demonstrate a broader responsibility. When this is done, the divisions are combined to make up a department.



Stra

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STRATEGIC PLAN

The City of Denton uses a Strategic Plan as a roadmap to achieve long‐term goals and objectives that capture the City’s Vision, Mission, and Value statements. The Strategic Plan is a product of the input generated from the 2008/2009 Citizen Survey, two City Council Planning Sessions, two Leadership Retreats, a special appointed Strategic Planning Steering Committee, and various City Council discussions. The Strategic Plan was formally approved by the City Council in April 2011, and in January 2012, the Strategic Plan was reviewed and affirmed by the City Council during their annual planning retreat.

The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the FY 2012‐13 Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified below.

Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Provide exemplary customer service. Goal 1.5 Utilize technology to enhance efficiency and productivity.

Key Focus Area 2: Public Infrastructure

Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.

Key Focus Area 3: Sustainable Economic Development & Environmental Stewardship

Goal 3.1 Manage and facilitate growth, development, and redevelopment opportunities. Goal 3.2 Encourage economic development. Goal 3.3 Promote environmental sustainability.

Key Focus Area 4: Safe, Livable and Family Friendly Community

Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.

Key Focus Area 5: Partnerships and Regional Leadership

Goal 5.1 Actively participate in regional, state, and federal initiatives. Goal 5.2 Maintain visible and effective relationships with governmental and non governmental organizations.

In addition to the above KFAs and goals, the Strategic Plan also identifies a number of specific and actionable objectives for the organization. The complete version of the strategic plan is provided on the following pages. In addition, specific performance indicators have been developed to track the City’s progress in accomplishing the goals and objectives identified. The annual performance indicators are published in this document, and periodic updates are published quarterly in the City’s financial report, and the annual performance information is continued in this section of the Annual Program of Services.



CITY OF DENTONSTRATEGIC PLAN

KFA 1: ORGANIZATIONAL EXCELLENCE

Goal 1.1. Manage financial resources in a responsible manner.

Objective 1.1.1. Utilize benchmarking, performance measurement, and progress evaluation to improve operations.

Objective 1.1.2. Develop and implement long‐range strategic plans.Objective 1.1.3. Provide timely, accurate, and relevant financial information. Objective 1.1.4. Ensure adequate internal controls are in place to prevent waste, fraud, and

abuse. Objective 1.1.5. Manage enterprise funds to achieve financial self‐sufficiency. Objective 1.1.6. Minimize fees and rates that are charged to our citizens and customers.

Goal 1.2. Develop a high performance work force.

Objective 1.2.1. Create succession and workforce management strategy to ensure organizational sustainability and continuity.

Objective 1.2.2. Attract, retain, and motivate qualified and diverse staff to ensure consistent implementation of established vision.

Objective 1.2.3. Establish a culture where employees feel valued and respected. Objective 1.2.4. Facilitate open inter‐ and intra‐departmental communication and collaboration.Objective 1.2.5. Establish a culture of accountability at all levels of governance.

Goal 1.3. Promote effective internal and external communication.

Objective 1.3.1. Maintain on‐going staff communication with City Council, Boards, and Commissions.

Objective 1.3.2. Utilize both traditional and non‐traditional forms of communication to disseminate accurate information.

Objective 1.3.3. Actively seek feedback from citizens and employees, in order to identify and implement programmatic changes, as appropriate.

Goal 1.4. Provide exemplary customer service.

Objective 1.4.1. Ensure all customer interactions are conducted in a professional and courteous manner.

Objective 1.4.2. Respond to customer inquiries in a timely fashion.Objective 1.4.3. Provide convenient methods of conducting business with the City.

Goal 1.5. Utilize technology to enhance efficiency and productivity.

Objective 1.5.1. Develop Information technology systems to automate routine processes.Objective 1.5.2. Utilize data analysis to make informed management and operational decisions.Objective 1.5.3. Reduce reliance on paper‐based systems.




KFA 2: PUBLIC INFRASTRUCTURE

Goal 2.1. Optimize resources to improve quality of City roadways.

Objective 2.1.1. Manage City street funding based on Overall Condition Index (OCI) methodology.Objective 2.1.2. Develop a long‐range strategy to transition street funding to achieve the OCI

criteria. Objective 2.1.3. Improve the design criteria for all dedicated roadways.Objective 2.1.4. Maintain an acceptable level of service on all City roadways. Objective 2.1.5. Design and construct all capital street projects on a 40‐year design life. Objective 2.1.6. Update the Mobility Plan every five years.

Goal 2.2. Seek solutions to mobility demands and enhance connectivity.

Objective 2.2.1. Coordinate with DCTA to provide effective multi‐modal connectivity. Objective 2.2.2. Coordinate with TxDOT to maintain and enhance the state road network.Objective 2.2.3. Improve walkability/pedestrian access.Objective 2.2.4. Encourage and improve bicycle mobility.Objective 2.2.5. Enhance aviation infrastructure at the Denton Airport.

Goal 2.3. Promote superior utility services and facilities.

Objective 2.3.1. Plan for long‐term resource acquisition and development. Objective 2.3.2. Assure regulatory compliance and legislative oversight.Objective 2.3.3. Protect public health and provide reliable service.Objective 2.3.4. Ensure operational and environmental sustainability.Objective 2.3.5. Effectively maintain and operate municipal facilities.Objective 2.3.6. Develop and support rates to provide funding for strategic objectives.

Goal 2.4. Manage drainage infrastructure.

Objective 2.4.1. Require new drainage infrastructure to design 100‐year flood protection, based on fully developed conditions.

Objective 2.4.2. Rehabilitate existing drainage system in compliance with 100‐year flood protection criteria.

Objective 2.4.3. Develop funding mechanism to rehabilitate inadequate drainage system components over a 20‐year period.

Objective 2.4.4. Require finished floor elevation certification on studied and unstudied drainage basins.

Objective 2.4.5. Maintain street sweeping in compliance with the municipal good housekeeping management practices associated with storm water regulations.

Goal 2.5. Develop Capital Improvement Program (CIP) based on community needs.

Objective 2.5.1. Manage existing and future infrastructure needs to meet projected growth trends.

Objective 2.5.2. Develop and implement financing plans for identified infrastructure needs.




KFA 3: SUSTAINABLE ECONOMIC DEVELOPMENT & ENVIRONMENTAL STEWARDSHIP

Goal 3.1. Manage growth, development, and redevelopment opportunities.

Objective 3.1.1. Update Comprehensive Plan.Objective 3.1.2. Execute Downtown Implementation Plan (DTIP).Objective 3.1.3. Promote Smart Growth/Infill initiatives in assessing development projects.Objective 3.1.4. Preserve and maintain historic structures and culture of Denton. Objective 3.1.5. Encourage environmentally‐sustainable development, business, and construction

practices.

Goal 3.2. Encourage economic development.

Objective 3.2.1. Create comprehensive Economic Development incentive policy to maximize Return on Investment to community.

Objective 3.2.2. Develop marketing effort to build on existing assets.Objective 3.2.3. Create Industrial Park Master Plan, identifying challenges and opportunities for

sound growth. Objective 3.2.4. Focus on economic development efforts that enhance the development of the

University of North Texas Discovery Park. Objective 3.2.5. Increase growth of visitor industry in Denton.

Goal 3.3. Promote environmental sustainability.

Objective 3.3.1. Establish sustainability goals and actions.Objective 3.3.2. Improve local and regional air quality.Objective 3.3.3. Manage natural resources responsibly.Objective 3.3.4. Provide public education and involvement opportunities.Objective 3.3.5. Ensure financial integrity of sustainability efforts.




KFA 4: SAFE, LIVABLE AND FAMILY FRIENDLY COMMUNITY

Goal 4.1. Enhance public safety in the community.

Objective 4.1.1. Expand departmental collaboration and community partnerships by increasing involvement, communication, education, and utilizing technology.

Objective 4.1.2. Secure and deploy public safety resources in the most effective and efficient manner possible.

Objective 4.1.3.

Evaluate existing and future public safety facility needs in order to provide the most effective delivery of emergency response services.

Objective 4.1.4.

Focus on prevention programs to heighten awareness, minimize loss, and support a safer community.

Objective 4.1.5. Maintain a high level of preparedness through planning, training, and the utilization of resources.

Goal 4.2. Seek clean and healthy neighborhoods in the City of Denton.

Objective 4.2.1. Provide effective code enforcement services that meet community expectations.Objective 4.2.2. Promote positive environmental behaviors and practices for the City of Denton

and its residents. Objective 4.2.3. Enhance the quality, livability, and sustainability of the neighborhoods in Denton.Objective 4.2.4. Support revitalization efforts of existing low‐moderate income neighborhoods.

Goal 4.3. Provide quality, diverse, and accessible neighborhood services for the community.

Objective 4.3.1. Meet customer needs through quality and diverse programs. Objective 4.3.2. Provide quality parks, libraries, and recreation services to promote leisure,

cultural, and educational opportunities in the community. Objective 4.3.3. Promote a family friendly environment.Objective 4.3.4. Co‐sponsor annual community events and festivals.




KFA 5: PARTNERSHIPS AND REGIONAL LEADERSHIP

Goal 5.1. Actively participate in regional, state, and federal initiatives.

Objective 5.1.1. Maintain dialogue with state and federal delegation and agencies. Objective 5.1.2. Promote bi‐annual legislative agenda and congressional priorities. Objective 5.1.3. Pursue effective representation at the state and federal levels. Goal 5.2. Maintain visible and effective relationships with governmental and non governmental organizations.

Objective 5.2.1. Maintain dynamic presence at the local Chambers of Commerce. Objective 5.2.2. Participate in regional, state, national, and international coalitions (RTC,

NCTCOG, TML, NLC, ICMA, etc). Objective 5.2.3. Support staff participation in regional, state, national, and international

professional organizations. Objective 5.2.4. Build relationships with key organizations to enhance community and social

services. Objective 5.2.5. Cultivate mutually beneficial relationships with local educational and

governmental institutions.



The matrix below organizes the Key Focus Areas (KFAs) by service area in the organization. While every

department has some level of responsibility for each KFA, the matrix is intended to only highlight the primary

department responsible for each KFA. A detailed matrix of performance measures related to the KFA’s can be

found in the following pages.

SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 UTILITIES

Electric

Water Wastewater Solid Waste INTERNAL SUPPORT Technology Services Materials Management Fleet Risk NEIGHBORHOOD SERVICES Building Inspection Code Enforcement

Libraries Parks and Recreation Planning Development Review Engineering Gas Well Review

Community Development

PUBLIC SAFETY Animal Services

Fire

Police

Municipal Court

Municipal Judge

TRANSPORTATION Airport Streets Traffic/Transportation ADMINISTRATIVE SERVICES City Manager’s Office

Economic Development Facilities Management Finance Human Resources Internal Audit Legal Public Communications Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Sustainable Economic Development & Environmental Stewardship Key Focus Area 4: Safe, Livable and Family Friendly Community Key Focus Area 5: Partnerships and Regional Leadership



General Overview of the 201112 Strategic Plan

Key Focus AreaNumber of Measures On or Above Target

Number of Measures Below Target

Number of Measures Significantly Below

Target

1. Organization Excellence 18 3 3

2. Public Infrastructure 17 3 3

3. Sustainable Economic Development and Environmental Stewardship 14 2 1

4. Safe, Livable, and Family Friendly Community 20 5 5

5. Partnerships and Regional Leadership3 0 0

Total 72 13 12

* There are 6 dashboard measures where data is not yet available from departments .

CITY OF DENTON

STRATEGIC PLAN EXECUTIVE SUMMARY

74.2%

13.4%

12.4%Number of Measures On or Above Target

Number of Measures Below Target

Number of Measures Significantly Below Target

These measures have either reached or exceeded established goals.

The measures rated “Below Target” are within 5% of reaching established goals

The measures rated “Significantly Below” are greater than 5% from reaching established goals.



Key Focus Area 1: Organizational Excellence

Key Performance Indicators (KPIs) DepartmentProgress Indicator

Goal 1.1 Manage financial resources in a responsible manner.

% of Invoices paid within 30 days Finance 91% 95% 92% 95%

General Fund revenue as a % of budget 1 Finance 101% 100% 102% 100%

General Fund reserves as a % of expenditures 2 Finance 24% 20% 29% 20%

Utility Funds expenditures as a % of budget Finance 87% 100% 95% 100%

Investment return achieved / benchmark rate Finance 0.62%/ 0.008%

0.45%/ 0.05%

0.57%/ 0.16%

0.42%/ 0.10%

Number of Internal Control Monitoring Plan Projects Completed Internal Audit 6 4 4 7

Employee turnover rate HR 7.30% <10.0% 9.67% <10.0% % of performance reviews completed within 30 days of due date HR 47% 100% 61% 100.00%

Number of Health Risk Assessments Performed Risk Mgmt. * 780 794 800Clinic Utilization Rate (% of available appointments) Risk Mgmt. * 85% 79% 80%

Workers compensation costs per $100 of payroll Risk Mgmt. $0.57 $0.75 $0.65 $0.75

Fiscal Year 201011 Actual

Fiscal Year 201213 Target


Fiscal Year 201112 Estimate

Goal 1.2 Develop a high performance work force.

STRATEGIC PLAN PERFORMANCE REPORT DASHBOARDCITY OF DENTON

p p p y g

Number of hits on City’s website (in millions) Pub. Comm. 1.3 1.5 1.4 1.5

Number of followers on all social media sites Pub. Comm. 3,632 10,000 18,241 25,000% of online citizen inquiries responded to within 10 business days

City Manager’s Office * 100% 100% 100%

% of solicitations completed within 90 days of the bid opening date Materials Mgt. * 80% 87% 80%

% of contracts reviewed within 5 days Legal 100% 100% 100% 100%% of Customer Service requests responded to within 24 hours

Planning & Development 98% 100% 100% 95%

Number of permits issued within 10 days of receiving application

Building Inspections 87% 95% 84% 95%

% of first contact resolution for customers Customer Service 96% 85% 92% 85%

Average speed of calls answered (in seconds) Customer Service 49 60 47 60

* Data not currently available, performance measure information will be compiled in future periods.

Goal 1.3 Promote effective internal and external communication.

Goal 1.4 Provide exemplary customer service.



Key Focus Area 1: Organizational Excellence


% of employees that rate IT services as good or better

Technology Services 98% 98% 98% 98%

% of work requests completed within 5 days Technology Services 88% 95% 90% 95%

% of Customer Service payment transactions completed electronically

Customer Service 26% 30% 38% 40%

% of customers that receive electronic billing statements

Customer Service 1.4% 2.0% 6.1% 7.0%


% of intersections which need signalization Traffic * 5% 14% 12%

Number of traffic signals serviced per month Traffic 118 93 94 95

Lane markings replaced per year (feet) Traffic 225,000 200,000 158,461 200,000Square yards of asphalt roadway reconstructed per year Streets 47,004 21,111 26,985 21,111Square yards of asphalt roadway overlayed per year Streets 47,227 52,000 61,118 52,000Square yards of asphalt roadway micro‐sealed per year Streets 67,201 131,523 132,432 67,201Goal 2.2 Seek solutions to mobility demands and





Goal 2.1 Optimize resources to improve quality of City roadways.

Goal 1.5 Utilize technology to enhance efficiency and productivity.

CITY OF DENTONSTRATEGIC PLAN PERFORMANCE REPORT DASHBOARD

Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Ridership on DCTA transit system (bus and A‐Train) In millions

Transportation 2.4 2.4 2.9 3.2

Miles of sidewalk constructed per year Engineering * 2 * * 2

Miles of bicycle lane accommodations per year Engineering 3.6 7 * * 7

Number of airport takeoffs/landings Airport 148,074 151,010 156,073 149,300

Number of work orders completed Facilities 13,420 16,104 17,021 11,500

Production of finished water (billion of gallons) Water 6.804 6.487 6.751 6.487

Water mains replaced (feet) Water 10,740 11,000 11,596 11,000

New water meters installed Water 313 285 346 285Wastewater treated through plant (billions of gallon) Wastewater 4.748 5.194 4.966 5.194

Wastewater mains replaced (feet) Wastewater 10,812 8,000 12,638 8,000


Goal 2.3 Promote superior utility services and facilities.





Wastewater lines cleaned (feet) Wastewater 398,518 350,000 456,105 35,000

Pounds of waste disposed per capita Solid Waste 1,856 1,850 2,014 1,850

% of waste diverted from the landfill Solid Waste 24% 40% 37% 40%

% of electric system utilized (load factor) Electric 48.54% 48% 46% 48%

Lane miles of street sweeping completed Drainage 4,865 4,800 5,760 4,800Cubic yards of material collected in street sweeping Drainage 2,509 2,500 2,467 2,500

Feet of concrete channel cleaned Drainage 23,254 25,000 22,285 25,000

Number of projects in process CIP 659 750 705 750% of bonds (based on amount) spent within five years of sale date CIP 81% 85% 98% 85%Key Focus Area 3: Sustainable Economic Development and Environmental Stewardship

% of Certificates of Occupancy (COs) and Tenant Building





Goal 3.1 Manage growth, development, and redevelopment opportunities.

Goal 2.4 Manage drainage infrastructure.

Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.


% of Certificates of Occupancy (COs) and Tenant Finish Outs (TFOs) reviewed within 10 days


% of Pre‐Applications reviewed within a five (5) day period by all DRC members DRC 96% 98% 97% 98%% of Plats reviewed within a ten (10) day period by all DRC members DRC 92% 95% 98% 98%% p ( ) ppreviewed within a ten (10) day period by all DRC members DRC 66% 90% 100% 95%Number of new companies contacted for business recruitment

Economic Development 36 40 43 40

City of Denton unemployment rate Economic Development 6.6% 6.0% 5.8% 5.9%

Net sales tax collections related to economic development incentive agreements (in millions)

Economic Development $2.1 $2.3 $2.4 $2.1

Number of business retention visits Economic Development 51 80 84 90

Value of commercial building permits issued (in millions)

Building Inspections $197.4 $114.7 $143.5 $150.0


Goal 3.2 Encourage economic development.



Key Focus Area 3: Sustainable Economic Development and Environmental Stewardship

Key Performance Indicators (KPIs) Department




Progress Indicator


Square feet of commercial development completed (in millions)

Building Inspections 1.3 1.2 0.9 1.0

g pnumber of grant fund applications (increased acres/grants filed)

Environmental Services 1.94/1

Increase Acreage/ 1.94/1 1.94/1

% of city with tree canopy Planning 19% 19% 19% 19%Volunteer hours for Keep Denton Beautiful (KDB) and environmental services

/Environmental Services 7,325 6,930 16,443 6,930

% pp p(ADP) addressing water quality as a component of landscaping or parking

Environmental Services 100% 100% 100% 100%

Gallons of fuel consumed ( In millions) Fleet 1.3 1.3 1.2 1.1Square feet of new (infill) commercial development buildings

Building Inspections 2,284,906 1,250,000 2,136,393 2,000,000

Number of participants in energy rebate and audit programs (residential/commercial) Electric 584 600 468 600Key Focus Area 4: Safe, Livable and Family Friendly Community

STRATEGIC PLAN PERFORMANCE REPORT DASHBOARD

Goal 3.3 Promote environmental sustainability.

Goal 3.3 Promote environmental sustainability.

Goal 4.1 Enhance Public Safety in the Community.

CITY OF DENTON

Number of stakeholder meetings conducted Police * 48 91 100Average patrol response time from dispatch to arrival on scene (in minutes) Police 5:18 6:45 5:37 6:45Major crime (Part I) clearance rate compared to National Part I crime clearance rate for prior year (City of Denton/National) Police 60%/45% 50%/45% 59%/45% 55%/45%Minor crime (Part II) clearance rate compared to National Part II crime clearance rate for prior year (City of Denton/National) Police 28%/17% 25%/17% 22%/17% 25%/17%

Total number of online citizen self‐reports Police 1,236 1,360 1,800 2,000Live animal release rate for all animals housed at the Denton Animal Shelter Police * 75% 82% 75%

Number of bicycle safety courses taught Police * 1 1 2Deploy Advanced Life Support (ALS) first responders to all emergency medical incidents Fire *

90% of responses * * *

Number of Public Education programs conducted targeting identified high risk groups Fire * 12 17 24% of cleared inspection violations within 30 days of annual inspection in commercial / industrial / multi‐family structures Fire * 75% 87% 75%




Key Focus Area 4: Safe, Livable and Family Friendly Community


% of incendiary fires with identified suspects Fire * 100% 63% 100%

Cases processed Muni Court 38,377 39,480 39,474 41,139Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton.

Number of food establishments inspectedBuilding Inspections 1,552 1,200 1,930 2,000

% of food establishments with an 80 or better rating


Number of health (Food Handler) cards issued Building Inspections 2,738 2,800 2,858 3,000

Number of code compliance or complaints inspected

Building Inspections 1,834 1,900 2,948 3,000

Number of nuisance violations abated Code Enforcement 12,038 12,000 10,926 12,000

Number of minimum building standard violations abated

Code Enforcement 332 340 383 340

Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton.

Number of zoning violations abated Code Enforcement 464 470 422 470

% of public improvement funding expended within the program year for which it was

Community Development 65% 70% 7% 70%

% of gas well drilling and production sites that passed semi annual inspections Gas Wells * 95% 98% 95%






passed semi‐annual inspections Gas Wells * 95% 98% 95%

Acres of parks maintained per full‐time equivalent Parks 57.3 57.3 55.3 57.3Total attendance at park facilities per full‐time equivalent Parks 17,103 17,592 18,483 17,592

Park acres per 1,000 population Parks 36.6 36.6 36.6 36.6Satisfaction rating of “good” or “excellent” for programming /number of ratings received Parks 4.85/2,500 4.9/3,000 4.5/3,494 4.9/3,000 % of programs offered that made participation requirements Parks 92.4% 98.0% 93.5% 98%

% of active registered card holders Library * 30% 29% 29%

Total program attendance per FTE Library 2,275 1,960 2,269 2,100

Total number of library visits Library 601,989 625,511 583,390 600,000

% of library items obtained by self‐check usage Library 23% 24% 29% 32% E‐book checkouts as a % of total library circulation Library 1.50% 2.00% 2.76% 3.00%


Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.

Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.



Key Focus Area 5: Partnership and Regional Leadership


% of major legislative initiatives accomplished City Manager’s Office 100% 100% 100% 100%

%of Denton‐area delegation at the local, state, and federal level contacted and educated regarding City of Denton legislative initiatives

City Manager’s Office 100% 100% 100% 100%

Number of city personnel, elected, and appointed officials serving in leadership roles in regional, City‐Wide * TBD 49 49Number of joint projects/initiatives with local governmental partners City‐Wide * TBD * * *Number of joint projects/initiatives with local non‐governmental partners City‐Wide * TBD * * *

Number of local Chambers of Commerce events supported

City Manager’s Office * TBD * * *




Goal 5.2 Maintain visible and effective relationships with governmental and non‐governmental organizations.

Goal 5.1 Actively participate in regional, state, and federal initiatives.






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FY 2012-13 Budget Overview

GENERAL FUND

RESERVE LEVEL

The City of Denton maintains a General Fund reserve balance for unanticipated expenditures, unforeseen

revenue fluctuations, or other adverse circumstances. In response to the economic downturn, rating agencies

have indicated that a reserve level below 15% would be considered low compared to similarly rated cities. As

a result, the reserve balance recommendation was increased from 12-15% to 20% of budgeted expenditures

in FY 2010-11, which is more commensurate with similarly rated cities our size. The fund balance level,

however, may be reduced to the equivalent of 15% of budgeted expenditures in unusual financial

circumstances. If such a situation occurs, the City will implement necessary corrective action within a five-

year plan to restore the fund balance to the equivalent of 20% of budgeted expenditures. The City of Denton’s

very good ratings for General Obligation debt are AA+ by Fitch Ratings and AA by Standard and Poor’s.

The estimated ending reserve balance of $25,747,978 at the end of FY 2011-12 represents approximately

29.1% of budgeted expenditures and is well above the targeted goal of 20%. The chart below provides a

listing of the ending fund balances for the past two years, a projected balance for the fiscal year ending

September 30, 2012, and the projected balance for the fiscal year ending September 30, 2013. As detailed in

the chart, the City has continued to maintain strong reserve balances over the past several years. Going

forward, the reserve fund balance is expected to remain above the target range for the next several years in

the financial forecast. While the financial forecast projects the fund balance level will be below 20% in FY

2015-16, this should only be interpreted as a planning estimate based on information available at this time.

City management will continue to monitor our financial performance, and make appropriate expenditure

and/or revenue adjustments as necessary.

As of 9/30/10

As of 9/30/11

Estimated 9/30/12

Projected 9/30/13

Ending Balance

$21,526,779 $24,424,003 $25,747,978 $25,083,084

% of Total Expenditures

23.6% 27.1% 29.1% 26.6%

Target Goal % 12-15% 20% 20% 20%



REVENUES

The key General Fund revenue sources are discussed below. The first chart shows the source of our major

revenues for FY 2012-13:

Property Tax

Approximately one-third of the total General Fund revenue is generated from ad valorem taxes. As shown

below, the 2012 certified value increased by 4.75% or a net $304,336,364 from the 2011 certified value.

Analysis of the increase shows there was $133 million in new value added to the appraisal roll due to new

growth and construction.

The chart below provides a 10-year historical trend on property tax growth by percent.

In 2009, the City Council approved an increase in the over age 65 property tax exemption in $5,000

increments over a five-year period until a $50,000 exemption level is reached. The current exemption level is

$40,000 and, the Budget includes an increase in this exemption level to $45,000 in FY 2012-13.

34%

28%

8%

15%

15%

Ad Valorem Tax Sales Tax Franchise Fees Transfers In Fees, Permits, Use of Reserves

4.75%

2.93%

-1.60%

0.58%

3.31%

11.91%

13.61%

9.47%

8.23%

9.15%

-2% 3% 8% 13% 18%

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

10-Year History: Property Value Growth (Annual Percentage Changes)



The FY 2012-13 Budget does not include any adjustment to the tax rate. The current tax rate of $0.68975 per

$100 of assessed valuation is above the estimated effective tax rate of $0.68045. Below is a 10-year history of

certified assessed values and tax rates.

Certified Values and Tax Rate History

Fiscal Year Certified Assessed Value

Operations and Maintenance Tax

Rate

Debt Service Tax Rate

Total Tax Rate

2003-04 $ 4,042,202,871 $ 0.34928 $ 0.19887 $ 0.54815 2004-05 $ 4,374,943,831 $ 0.39928 $ 0.19887 $ 0.59815 2005-06 $ 4,789,376,811 $ 0.42928 $ 0.17887 $ 0.60815 2006-07 $ 5,441,228,909 $ 0.44765 $ 0.17887 $ 0.62652 2007-08 $ 6,089,499,775 $ 0.44765 $ 0.21887 $ 0.66652 2008-09 $ 6,291,359,112 $ 0.44765 $ 0.21887 $ 0.66652 2009-10 $ 6,327,909,022 $ 0.44765 $ 0.21887 $ 0.66652 2010-11 $ 6,230,117,958 $ 0.47088 $ 0.21887 $ 0.68975 2011-12 $ 6,412,375,004 $ 0.47088 $ 0.21887 $ 0.68975

2012-13* $ 6,716,711,368 $ 0.47088 $ 0.21887 $ 0.68975 *Certified Assessed Value includes $10,248,781 which is captured for the Downtown TIF in FY 2012-13.

Sales Tax

The second largest revenue source in the General Fund is sales tax. Sales tax has provided consistent monthly

gains compared to last year and is expected to exceed budgeted levels. The FY 2011-12 year-end estimate of

$25,655,444 is $2,208,866 or 9.4% higher than the original budgeted amount and 12.2% or $2,784,163 more

than was received in FY 2010-11.

The FY 2012-13 Budget estimates sales tax will be $26,466,107, 3.2% above the FY 2011-12 estimate. The

City has economic development agreements with Denton Crossing, Unicorn Lake and Rayzor Ranch for sales

tax rebates. In FY 2011-12, the Rayzor Ranch development reached established square footage thresholds

which trigger the economic development agreement incentive payments. The five-year financial forecast

projects a 3% increase in base sales tax receipts annually which is consistent with collection trends over the

past five years. The forecast also estimates additional collections related to the Rayzor Ranch development in

FY 2013-14.

The following chart illustrates a 10-year history of sales tax collections:

*Sales Tax is an Estimated Amount

7% 7.5% 7.1% 3.7% 4.2% -4.7% 0.3% 8.8% 12.2% 3.2%

$0

$10

$20

$30

Sales Tax History by Fiscal Year (With Percentage Increases Noted) (in millions)



Franchise Fees

Approximately 8% of the General Fund’s revenues are related to franchise fees. Typically assessed as a

percentage of gross revenues, the purpose of the franchise fee is to provide compensation to the City in return

for allowing utilities to access the City’s rights-of-way. The FY 2012-13 Budget includes $14,154,609

($7,592,570 in the General Fund) in franchise fees from various utilities operating in the City, including city-

owned utilities. The total estimated franchise fee contribution to the Street Improvement Fund in FY 2012-13

is $6,562,039. Since franchise fees are generally considered to be compensation for the use of the city-owned

right-of-way, the city is designating a portion of the franchise fees received in FY 2012-13 to the Street

Improvement Fund, which was created in FY 2011-12. By doing so, the linkage between the payment of

franchise fees and the use of these funds on street maintenance activities increased. With this in mind,

however, it is important to also note that the city is not required to spend franchise fees on street

maintenance or any other specific activity. Rather, franchise fees are meant to be a General Fund resource,

and as such, they may be spent on any activity deemed appropriate by the City Council.

In an effort to increase street maintenance funding over time, the growth in franchise fees will be allocated to

the Street Improvement Fund. In FY 2012-13, 100% of the growth in franchise fees compared to the FY

2010-11 Budget will be allocated to the Street Improvement Fund. Based on this plan, we project that street

maintenance funding will approach $7.6 million annually by FY 2016-17. These estimates are based on the

current five-year financial forecast, and as such, the level of funding may need to be modified in the future as

circumstances warrant. Additional details regarding franchise fee allocations are contained in the Street

Improvement Fund section of this document.

Other Major Revenues

Each year, the City completes a study to determine the cost of providing internal services to the organization.

This process is primarily designed to recover General Fund costs associated with providing services to other

funds. Examples of these costs include expenses for the Human Resources, Finance, and Legal departments.

Based on a recent study, the cost allocation transfers associated with these services, and others, are expected

to increase transfers into the General Fund by approximately $1.3 million (net) for FY 2012-13.

EXPENDITURES

Over several past fiscal years, various expenditure reductions were implemented, and the majority of these

reductions will be maintained for FY 2012-13. One such measure is the vacancy management program, which

began in FY 2010-11. Under this plan, savings are achieved by establishing a target level of savings and

monitoring vacancies to achieve this objective. As personnel turnover and attrition occur in the organization,

vacant positions are evaluated to determine if they need to be filled or kept vacant according to the

organization’s priority needs. This approach allows the City to respond to service demands while continuing

to properly manage resources.

The vacancy management program is recommended again for the upcoming fiscal year, and the targeted

savings is projected at approximately $900,000. By maintaining the reductions implemented in prior years,

and continuing the vacancy management program, enhanced programming is possible for FY 2012-13.



General Fund Expenditure Enhancements

In accordance with priorities established through the Strategic Plan, several General Fund expenditure

enhancements are recommended for funding. The FY 2012-13 Budget recommends $2,087,348 in funding for

program enhancements in the General Fund. In addition, $1,686,721 in enhancements is recommended from

other funds to directly benefit General Fund operations. The chart below illustrates the funding amounts and

the percentage of total enhancements recommended by service category:

For each respective service area identified in the Strategic Plan, a summary of the major funding

enhancements for FY 2012-13 are shown on the following pages. Additionally, the primary Key Focus Area

(KFA) for each of these service areas is also identified.

PUBLIC SAFETY ($1,251,480 in Total Enhancements)

KEY FOCUS AREA 4: SAFE, LIVABLE AND FAMILY-FRIENDLY COMMUNITY

Fire

General Fund Support

Other Fund Support

Total Enhancement Funding

$625,005 $303,223 $928,228

A new front line medic unit and staffing is included for the FY 2012-13 Budget. This includes a crew of five

firefighters and a new ambulance. An additional Commercial Plans Examiner is also included in response to

increased demand in the development community. An Administrative Assistant position, which was

previously frozen, is also included. Funding is also provided for Aircraft Rescue and Firefighting (ARFF)

vehicle equipment.

0% 5% 10% 15% 20% 25% 30% 35% 40%



Transportation

Public Safety

% of Total Enhancements Received

Enhancements by Service Category

$1,166,053

$1,251,480

$1,251,480

$821,745

$534,791



Police


Other Fund Support


$203,887 $0 $203,887

Two new positions are included in the Police Department. A Lieutenant position is included for additional

supervisory oversight in the department and a Property Technician position is included to process items

collected during search warrants and other investigation activities. In addition, supplemental funding for

ammunition is included.

Municipal Court


Other Fund Support


$8,688 $0 $8,688

Funding is included for the Scofflaw program, which allows the City to work with the Texas Department of

Transportation to collect unpaid fines when a defendant applies to renew a vehicle registration.

Animal Services


Other Fund Support


$110,677 $0 $110,677

Two new positions are included in the Animal Services division, a new Shelter Manager and an Animal

Services Officer position. Since the new Animal Care and Adoption Center is slated to open at the end of the

next fiscal year, new personnel are necessary for the expansion of these operations.

TRANSPORTATION ($1,166,053 in Total Enhancements)

KEY FOCUS AREA 2: PUBLIC INFRASTRUCTURE

Traffic


Other Fund Support


$100,000 $1,066,053 $1,166,053

New traffic signals are identified below:

Brinker Road at Colorado Boulevard ($164,077) Brinker Road at Spencer Road ($273,730)

State School Road at Unicorn Lake Drive ($95,014)

Allegra Vista Drive at Dallas Drive ($273,232)

Country Club 1830 at Hickory Creek Road ($130,000)

Country Club 1830 at Ryan Road ($130,000)



Certificates of Obligation (COs) will be issued to provide $1,066,053 in funding for these enhancements. It is

also expected that the City will receive $200,754 in funding from the Texas Department of Transportation. An

additional $100,000 in funding is also included for FY 2012-13 for the implementation of the bike plan.

Including existing funds, the total resources for the bike plan are $200,000 for the upcoming fiscal year.

NEIGHBORHOOD SERVICES ($821,745 in Total Enhancements)

KEY FOCUS AREA 3: SUSTAINABLE ECONOMIC DEVELOPMENT & ENVIRONMENTAL STEWARDSHIP;

KEY FOCUS AREAS 4: SAFE, LIVABLE AND FAMILY-FRIENDLY COMMUNITY

Library


Other Fund Support


$54,670 $0 $54,670

A Technology Librarian is included in the FY 2012-13 Budget. This position will assist with the coordination

of all technology within the library system including the library’s internet presence, integrated library system,

catalog, downloadable materials, electronic databases, and other customer-related technology issues.



Other Fund Support


$112,442 $25,000 $137,442

Two positions are included in the Building Inspections division. The first position, a Commercial Plans

Examiner, is included to assist with new development projects in the City. The second position, a Residential

Inspector, is included to assist with new multi-family residential projects that are projected to be developed

in the City.

Planning


Other Fund Support


$346,301 $0 $346,301

The equivalent of three positions are included for the Planning Department in the FY 2012-13 Budget. An

Assistant Planner and Planning Technician are included to assist with development projects. In addition, the

Department will begin an internship program to give students an opportunity to work on various projects

and provide additional support to the department. An additional $50,000 is included for the Neighborhood

Incentive Grant Program. With this increased funding, a total of $84,000 is allocated for the City of Denton

Neighborhood Planning Program (CDNPP). Finally, funding in the amount of $150,000 has been included to

hire a consultant to provide recommendations on how to improve the City’s development code process.



Parks and Recreation


Other Fund Support


$181,887 $101,445 $283,332

In the Parks and Recreation Department, a variety of enhancements are included for FY 2012-13. Lifeguards

and Swim Instructors are included at the Civic Center pool, Natatorium, and Waterpark. In addition, a

Recreation Specialist at the Senior Center will be funded out of the Parks and Recreation operating fund,

while a Customer Service Representative, and a Recreation Coordinator at the Martin Luther King, Jr. (MLK)

Center are recommended for funding out of the Recreation Fund. Point of sale equipment for registrations at

the Natatorium, as well as additional mowing and tree spade services are also included.

ADMINISTRATIVE & COMMUNITY SERVICES ($534,791 in Total Enhancements)

KEY FOCUS AREA 1: ORGANIZATIONAL EXCELLENCE; KEY FOCUS AREA 2: PUBLIC INFRASTRUCTURE; KEY FOCUS AREA 3: SUSTAINABLE ECONOMIC DEVELOPMENT & ENVIRONMENTAL STWEARDSHIP

City Manager’s Office


Other Fund Support


$195,955 $0 $195,955

A new Assistant City Manager position is included for FY 2012-13. This position provides additional

administrative oversight for the organization. To maximize the effectiveness of the City Manager’s Office,

various reporting structures have also been revised in conjunction with the addition of this new position.



Other Fund Support


$29,349 $191,000 $220,349

A new Facilities Assistant position is included for FY 2012-13. With this additional support, trade technicians

will be able to focus on non-administrative tasks and improve service levels. In addition, COs are to be issued

to provide $191,000 in funding for building needs associated with public health and safety issues such as the

replacement of a fire alarm system at City Hall West, replacement of a generator at Fire Station 3, and needed

improvements at the North Branch Library.



Public Communications


Other Fund Support


$9,000 $0 $9,000

Funds for improving the City’s website are programmed in FY 2012-13 for the Public Communications Office.

As more of the City’s programs utilize an online interface, resources are needed to support this method of

communication with our citizens.

Finance


Other Fund Support


$59,487 $0 $59,487

A Senior Financial Analyst position is included in the Finance Department. This position will provide

additional financial oversight for the organization. Additionally, this position will provide updates to the City-

wide cost allocation plan to reduce expenses for outside consultants.



Other Fund Support


$50,000 $0 $50,000

To provide additional resources for the Downtown Reinvestment Grant Program, an additional $50,000 is

included for FY 2012-13. Combined with existing funds, the funding for this program will be $100,000 in FY

2012-13. The City Council will need to determine whether or not these funds will be available outside of the

downtown area.

Other Expenditure Items

In addition to the funding included for FY 2012-13, several items are included in FY 2011-12 from existing

appropriations. In particular, the Municipal Court front counter area ($70,330) will be improved. This project

will allow better accessibility for customers with special needs, as well as enhance the security of the front

counter area and work space for the Municipal Court clerks.

To assist with parking issues along the street corridors of the campuses of the University of North Texas and

Texas Woman’s University, select street curbs will be marked as “no parking” ($22,443).

In the Human Resources Department, funding for a city-wide salary survey and compensation analysis

($59,000) and a laserfiche system update ($14,400) is included.

In the Code Enforcement and Gas Well divisions, new vehicles and equipment are included ($76,802).

In the Parks and Recreation Department, $85,000 is included to fund an engineering study of the Lake Forest

Park Dam as required by the state.



For the Fire Department, funding is included for a hazardous materials service contract ($30,000) and

equipment for the Aircraft Rescue and Firefighting (ARFF) vehicle ($38,354).

In summary, funding in the amount of $213,975 will be expended in the General Fund in FY 2011-12 for the

purposes mentioned above. Additionally, funding in the amount of $182,354 is provided from other funding

sources.

Compensation

For FY 2012-13, an average 3% merit increase for non-civil service employees (3% pay adjustment for civil

service employees) is included. To address changing labor market conditions, the five-year financial forecast

also includes an average 3% merit increase for employees in each year of the financial plan.

Compensation for positions in the City is organized by pay (market) bands. The pay bands identify a

minimum, midpoint, and a maximum pay for each position classification in the City. The midpoint represents

an estimate of the average wage for an equivalent position in the marketplace. Due to a number of factors, a

large percentage of employees within the City receive compensation below the marketplace average. As a

result, it is recommended that employees be considered for an equity adjustment if their pay is below the

midpoint and they are performing at a satisfactory level. The Budget also includes normally scheduled step

increases for civil service public safety personnel.

Below is a summary of compensation increases for employees over the past three years:

Compensation Increase History

Fiscal Year Compensation Equivalent (Non Civil Service)

2010-11 No Increase Recommended

2011-12 2% Average Merit Based Increase

2012-13 3% Average Merit Based Increase and Equity Pay Adjustments for affected employees

Civil Service Compensation Increases History

Fiscal Year Compensation Equivalent

2010-11 No increase recommended but eligible step pay increases for both Police and Fire civil service

positions were included.

2011-12 2% Increase. Eligible step pay increases for both Police and Fire civil service positions were included.

2012-13 3% Increase. Eligible step pay increases for both Police and Fire civil service positions also included.

Through meet and confer deliberations, City management and Police and Fire employee associations agreed

to three-year agreements in 2006 and again in 2009 that include provisions for compensation. Both

agreements apply to civil service employees only and include a similar pay philosophy. The goal of each

compensation plan is to achieve a pay structure that is equal to the market survey averages plus 5% in each

rank compared to twelve Metroplex police and fire agencies. City management and the Denton Police

Association have agreed to a two-year extension of the current agreement through 2014. The Denton Fire



Fighter Association has also tentatively agreed, pending ratification, to a two-year extension of their current

agreement. As part of each agreement, the increases for Police and Fire civil service employees may be

limited to an amount equal to the average compensation increases budgeted for civilian employees. After

reviewing appropriate recommended compensation market data and the availability of financial resources,

and in consideration of the above mentioned policy, a 3% increase in compensation is provided for civil

service employees in FY 2012-13. In some cases, this will result in various ranks receiving a higher increase

then would be applied using the agreement pay language.

Other Agency Contributions

Other agency contributions represent allocations for the City of Denton to outside organizations for specific

agreed upon purposes. The Human Services Committee received requests totaling $414,599 for FY 2012-13.

The Human Services Committee recommended total funding of $297,119 which is a 23% increase from the FY

2011-12 funding level. This funding is split between support from the Community Development Block Grant

(CDBG) and the General Fund. Funding in the amount of $101,210 is also provided to support the Children’s

Advocacy Center (CAC). This represents the City of Denton’s “fair share” as calculated by the CAC and is below

the $121,648 provided last year. The total support provided in the General Fund is approximately $1.50 per

capita compared to $1.00 per capita in the FY 2011-12 Budget. In future years, City management intends to

increase the per capita funding level by an incremental amount each year.

Grants

The City benefits from a variety of federal, state and local grants. In addition, the City routinely provides

matching funds for various programs. A complete list of grants is provided in the Budget in the miscellaneous

funds section of the document. The total grant budget for FY 2012-13 is $6,296,010.

Capital Improvement Program

The Capital Improvement Program (CIP) represents the City’s five-year plan for infrastructure and equipment

funding. The CIP is reviewed each year to reflect changing priorities and to provide a framework for

identifying capital requirements, the impact of capital projects on operating budgets, and project

scheduling/coordination.

The General Government CIP includes non-utility projects such as streets, parks, and other general

government facilities that are typically funded through general obligation bonds or certificates of obligation.

Approximately every five-years, the City has appointed a citizen bond committee to make recommendations

to Denton residents on capital improvement needs.

The City formed a citizen’s bond advisory committee in April 2012 to focus primarily on developing

recommendations for street infrastructure improvements for a November 2012 election. The citizen’s bond

advisory committee recommended various streets projects, valued at $20 million and public art

improvements of $0.4 million. Beyond the November 2012 election, the City is preparing for an additional

voter approved bond election in FY 2014-15 or FY 2015-16. Further, due to the age and condition of various

fire stations within the City, a bond election to improve these facilities may also be proposed for FY 2012-13.

As information is provided to the City Council over the coming weeks, a formal determination will be made on

the additional bond program.



The General Government CIP also includes funding to expand the Bonnie Brae Street and Mayhill Road

thoroughfares. These projects are expected to cost approximately $114 million, of which about $91 million is

provided from Regional Toll Revenue (RTR) funding.

Additionally, the Airport CIP includes $2 million for the issuance of Certificates of Obligation (COs) associated

with property acquisitions at the Denton Airport.

The Utility CIP includes projects for the City’s enterprise funds, such as Electric, Water, Wastewater and

Drainage that are funded from non-tax revenue. The Utility CIP is designed to make sufficient investments in

infrastructure in order to provide reliable service to our customers. The CIP for Solid Waste is also included

and reflects the anticipated level of projects to be funded from certificates of obligation. The Public Utilities

Board (PUB) is responsible for developing a recommendation of the Utility CIP to be presented to the City

Council for approval.

UTILITY RESERVE LEVELS

The Utility Departments and the Public Utilities Board have developed financial strategies and objectives to

achieve and maintain reserve fund balances that provide adequate working capital and rate stabilization

reserve levels. These reserve fund targets are based in large part on the Government Finance Officers

Association (GFOA) best practices for enterprise funds. The working capital target for each utility is 30 days

(8%) of average budgeted expenditures. This reserve fund balance should provide sufficient resources to

address a short term unforeseen revenue loss or an increase in expenses.

The rate stabilization reserve targets vary and are based on the unique operational characteristics of each

utility. Factors that affect the target rate stabilization reserve levels include revenue stability, expense

volatility, age of infrastructure, debt levels, and management plans for use of reserve funds.

The working capital and rate stabilization reserve fund balance targets are as follows (presented as a

percentage of expenses):

Electric Water Wastewater Solid Waste Working Capital

8.0% 8.0% 8.0% 8.0%

Rate Stabilization

12.0% 16.0% 12.0% 4.0%

Total 20.0% 24.0% 20.0% 12.0% Equivalent Days of Operating Expenses

(75 days) (90 days) (75 days) (45 days)

In addition to the above amounts, the Water and Wastewater Funds maintain separate impact fee and

development plan line reserves. For FY 2012-13, the Wastewater Fund will create a separate reserve to be

used for repairs of the drainage system in the event of major unforeseen circumstances. The Solid Waste

Fund also maintains a separate reserve for Landfill Closure/Postclosure purposes.

The operating budgets, capital improvement plans and rate increases projected in the utilities five-year

financial plans have been developed to support these targeted reserve fund balances and are addressed

below.



AGING INFRASTRUCTURE

Another major utility financial strategy addresses the issue of aging infrastructure. Previously, significant

percentages of asset replacements were funded with debt. The new goal is to replace an increasing

percentage of existing assets with current revenue instead of debt, with the issuance of debt generally to be

reserved for the addition of new assets. This strategy will reduce the reliance on debt issuance and maintain

adequate debt coverage ratios for the Electric, Water, and Wastewater utilities in the future. By doing so, the

overall cost of these projects will be reduced.

The projected operating budgets, capital improvement plans and rates contained in the five-year financial

plan contemplate a phased approach to revenue funded asset replacements and maintain debt coverage

ratios at bond covenant levels.

UTILITY FUNDS

KEY FOCUS AREA 2: PUBLIC INFRASTRUCTURE

ELECTRIC FUND

The FY 2012-13 Electric Budget includes $142,741,301 in revenues and $158,987,525 in expenditures. The

Electric Budget will use $16,246,224 in reserves to balance the budget. This planned use of reserves is

primarily related to scheduled expenses associated with the Texas Municipal Power Agency (TMPA) contract.

Rates

The FY 2012-13 Denton Municipal Electric (DME) Budget includes no base rate increases. The Energy Cost

Adjustment (ECA) rate will be adjusted as necessary based on changes in energy costs. For FY 2012-13, the

ECA rate is budgeted as 3.700 cents/kWh.

Personnel Changes

The FY 2012-13 DME Budget includes an increase of 11.5 new FTEs, of which 6.0 FTEs are related to the

enhanced CIP program discussed below.

1.0 FTE in Electric Administration for North American Electric Reliability Corporation (NERC)

Compliance technical support.

1.0 FTE in Power Supply Administration for technical support.

2.0 FTEs in System Operations for switchman positions.

1.5 FTEs in Distribution for maintenance and crew foreman positions.

5.0 FTEs in Electric Engineering

o 2.0 FTEs for Distribution Engineers.

o 3.0 FTEs for technical support positions.

1.0 FTE in Metering for system and data coordination.

Return on Investment (ROI) and Franchise Fee

The DME Budget includes a 3.5% ROI payment and a 5.0% franchise fee payment to the General Fund. The

ROI and franchise fee payments are calculated using an estimated annual average ECA of 3.00 cents/kWh,

which is the cap for both payments set by the City Council.



Major CIP Projects

The Electric Fund CIP budget includes funding for the following major capital projects in FY 2013:

Transmission Lines: $ 35.0 million

Transmission Substations: $ 20.3 million

Feeder Extensions and Improvements: $ 8.9 million

New Residential and Commercial Service: $ 3.1 million

Automated Meter Reading: $ 3.0 million

TOTAL: $ 70.3 million

Including the improvements discussed above, the FY 2013-17 five-year capital improvement program is $302

million, approximately $130 million more than the prior five-year plan approved in FY 2011-12. The

enhanced program is necessary to improve the reliability of the electric system, meet the expected growth in

demand for electric services, replace aging infrastructure, and comply with new regulatory requirements.

WATER FUND

The FY 2012-13 Water Fund Budget includes revenues of $42,964,597 and expenditures of $43,867,930. For

FY 2012-13, rate stabilization reserves in the amount of $903,333 will be used to balance the budget. The

table on the following page illustrates budgeted water sales for FY 2011-12 and projected sales for FY 2012-

13.

Treated Water Sales by Customer Type (In Billions of Gallons)

FY 2011-12 FY 2012-13 Difference

Retail Customers 6.077 6.143 0.066

Wholesale Customers 0.099 0.109 0.010

Total 6.176 6.252 0.076

Rates

An average 8% rate increase for retail water customers is programmed. The five-year financial forecast

includes future rate increases to support the replacement of aging infrastructure, maintenance and reserve

fund goals. Wholesale rates will be updated per their respective agreements.

Personnel Changes

The Water Department budget includes 3 new FTE’s.

1.0 FTE for a Sustainability Coordinator in Utility Administration.

1.0 FTE for a Senior Engineer in Water Production.

1.0 FTE in Water Production for an Operator I position.

Major CIP Projects

The Water Fund CIP budget includes funding for the following major capital projects in FY 2013:

North South Water Main Phase 2: $6.7 million

Hwy 380 Utility Line Relocate Ph I&II: $4.9 million

Robson Elevated Storage Tank: $5.5 million

TOTAL: $17.1 million



Consistent with the financial strategies discussed earlier regarding the City’s aging infrastructure

replacement plans, a significant portion of the CIP for FY 2012-13 is funded with revenue instead of debt. The

FY 2012-13 revenue funded projects total approximately $4.1 million. By way of comparison, the FY 2011-12

Budget included only $2.8 million in revenue funded projects.

WASTEWATER FUND

The FY 2012-13 Wastewater Budget includes revenues of $27,776,462 and expenditures of $28,252,407. For

FY 2012-13, rate stabilization revenues in the amount of $475,945 will be used to balance the budget. On the

following page is a table illustrating budgeted wastewater billed volumes in FY 2011-12 and projections for

FY 2012-13.

Wastewater Billed Volumes (In Billions of Gallons)


Retail 3.753 3.917 0.164

Effluent 0.105 0.093 -0.012

Wholesale 0.212 0.215 0.003

Total 4.070 4.225 0.155

Rates

A 9% rate increase is for retail wastewater customers. The Five-Year Financial Forecast includes future rate

increases to support the replacement of aging infrastructure, maintenance and reserve fund goals.

Personnel Changes

The Wastewater Department budget includes 2.88 new FTE’s. 1.0 FTE for a Wastewater Utility Electrician II in Water Reclamation. 0.5 FTE for an Environmental Monitoring Tech in Industrial Pretreatment. 1.0 FTE for a Transportation Permit Specialist in Industrial Pretreatment. 0.38 FTE for a Watershed Protection Intern in Watershed Protection.

Major CIP Projects

The Wastewater Fund CIP budget includes funding for the following major capital projects:

Hwy 380 Utility Line Relocate Phase II: $2.2 million

Pecan Creek Interceptor II, III & IV: $4.8 million

State School Interceptor II: $2.3 million

Co-Digestion at Pecan Creek Water Reclamation Plant: $2.2 million

TOTAL: $11.5 million

Consistent with the financial strategies discussed earlier regarding the City’s aging infrastructure

replacement plans, a significant portion of CIP for FY 2012-13 will be funded with revenue instead of debt.

The FY 2012-13 revenue funded projects total approximately $3.3 million. By way of comparison, the FY

2011-12 Budget included only $2.4 million in revenue funded projects.



SOLID WASTE FUND

The FY 2012-13 Solid Waste Budget includes $25,147,589 in revenues and expenditures of $25,124,689. The chart below illustrates Solid Waste production.

Solid Waste Production (In Tons)


Gross Tons of Waste 247,062 255,583 8,521

Recycled Tons (74,328) (76,847) (2,519)

Total Landfill Tonnage 172,734 178,736 6,002

Rates and Fees

The following are monthly fee increases to the Solid Waste schedules:

Personnel Changes

Eight additional personnel (equaling 5.0 FTEs) are included for FY 2012-13:

2 FTEs for the Curbside Recycling Program.

1 FTE for Commercial and Multi-Family Recycling Coordinator.

1 FTE for Household Chemicals Collections.

0.50 (2 Temporary Positions) FTE for Residential Yard Waste Collection.

0.50 (2 Temporary Positions) FTE for Construction and Demolition Processing.

Major CIP Projects

The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2013:

Vehicle additions/replacements: $1.8 million

Landfill Facility Expansion and Capital Costs: $4.4 million

TOTAL: $6.2 million

Utility Rate Change Summary

Below is a chart which depicts the rate increases discussed above and the monthly financial impact to an

average residential customer.

Rate Increase FY 2011-12 FY 2012-13 Variance

Residential Refuse (Standard Cart)

$19.25 $20.10 $0.85

Residential Refuse (Large Cart)

$21.95 $24.20 $2.25

Residential Refuse (Small Cart)

$17.10 $19.10 $2.00

Residential Recycling $5.15 $5.15 $0.00

Commercial Dumpster 3.9% 5.0% 1.1%

Commercial Roll-Off 0.0% 1.0% 1.0%

Landfill $43.50 $43.50 $0.00



FY 2012 FY 2013 Increase %Change Electric 1 $119.86 $123.76 $3.90 3.3%

Water $42.35 $45.60 $3.25 7.7%

Wastewater $27.50 $30.00 $2.50 9.1%

SW – Standard Cart $19.25 $20.10 $0.85 4.4%

SW – Recycling Services

$5.15 $5.15 $0.00 0.0%

Total $214.11 $224.61 $10.50 4.9%

1 FY 2013 includes an average Energy Cost Adjustment (ECA) rate of $0.037 and FY 2012 includes an average

ECA rate of $0.034. The base rate of $0.0582 is the same for FY 2012 and FY 2013.

Miscellaneous and Internal Service Funds


The Street Improvement Fund was a new fund in FY 2011-12. The purpose of the fund is to provide a

dedicated mechanism to account for street maintenance and improvement activities. The Street

Improvement Fund receives revenue from a portion of franchise fees previously accounted for in the General

Fund. Fees associated with streets cuts are also recorded in the Street Improvement Fund.

Interest cost savings associated with issuing Certificates of Obligation in lieu of Revenue Bonds are also

transferred to the Street Improvement Fund from the utility funds. Beginning in 2010, the City changed the

manner by which the utilities issue debt to fund capital improvements by selling General Obligation Bonds

instead of Revenue Bonds. Using the AA credit rating of the General Obligation Bonds, rather than the AA-

credit rating of the Revenue Bonds, the City was able to lower the interest costs to the Utility funds. As such,

this budget proposes to transfer $265,251 in interest cost savings from the utility funds to the Street

Improvement Fund in FY 2012-13.

In addition, the FY 2012-13 Budget includes three new FTEs for maintenance positions and a crew foreman.

These positions will be used to provide enhanced street maintenance services to the community. For FY

2012-13, revenues and expenditures are budgeted to be $7,158,774. This level of expenditures represents all

street operations that were previously recorded in the General Fund prior to FY 2011-12. Of this amount,

approximately $4.2 million in funding is dedicated to street maintenance activities and this represents an

increase of 18.7% compared with FY 2011-12 funding. As discussed previously, the City needs to be spending

approximately $10.0 million each year on street maintenance to avoid further deterioration of the overall

street condition in the City.



The chart below depicts the recommended increases in street maintenance funding over the next five fiscal

years.

** Includes 100% of the growth in franchise fees compared to the FY 2010-11 Budget in FY 2012-13 and

subsequent years.

DOWNTOWN TAX INCREMENT FINANCING FUND

The Downtown Tax Increment Fund (TIF) was a newly created fund in FY 2011-12 through Ordinance No.

2010-316, which was adopted on December 7, 2010. The fund accounts for the tax revenues that are collected

above the FY 2010-11 levels in the downtown area. The base value for the TIF is $79,356,854, and the

certified value for FY 2012-13 is $89,605,635, which represents an increase of 12.9% or $10,248,781. For FY

2012-13, revenues of $70,691 are included. No expenditures have been identified by the TIF board at this

time.

TOURIST AND CONVENTION FUND

The Tourist and Convention Fund records the receipt and distribution of the City’s Hotel Occupancy Tax,

which is levied at 7% of room rental rates. The City Council Hotel Occupancy Tax Committee is responsible

for determining a recommendation on the allocation of funds annually. The Committee has recommended

allocations for FY 2012-13 based on the most recent hotel occupancy tax forecast. The recommendation for

funding is included in the Budget.

A joint partnership with the University of North Texas and a private developer to build and operate a

convention center is also under consideration. To provide financial capacity for expenses associated with this

project, $100,000 is budgeted for contingency purposes.

RISK RETENTION FUND

The Risk Retention Fund is established to record the activities of providing insurance coverage and self-

funded activities for City operations including vehicle, property, general liability and workers compensation

claims. An appraisal of City property will be funded from FY 2011-12 budget savings.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

FY 2010-11 Budget $2,800,000 $2,800,000 $2,800,000 $2,800,000 $2,800,000

Bond Sale Savings $265,251 $413,780 $639,309 $764,618 $853,364

Franchise Fee Growth ** $1,141,765 $1,732,638 $2,362,582 $3,342,230 $3,948,270

Annual Funding $4,207,016 $4,946,418 $5,801,891 $6,906,848 $7,601,634

Cumulative Funding $4,207,016 $9,153,434 $14,955,325 $21,862,173 $29,463,807




When the City switched to a self-funded health insurance plan in 2008, long-term savings were projected for

the Health Insurance Fund. While the self-funded program has provided considerable savings as expected (an

estimated $4.9 million through 2011), the rising cost of health care continues to be a concern.

In an effort to address those rising costs, the City opened the Employee Health Center (clinic) in December

2011. This clinic provides primary care benefits at no cost to our employees, retirees, and dependents that

are covered under the City’s self-funded program. As of July 20, 2012, 3,277 patient appointments have been

provided and 743 employees have completed a Health Risk Assessment (HRA) at the clinic. The HRA includes

a comprehensive blood draw and a 40 minute follow-up appointment with the clinic physician.

Staff will be bringing forward a budget amendment for this fund to the Audit and Finance Committee on

August 7, 2012, and a subsequent City Council meeting. Health claim costs have been higher than projected

this fiscal year. At this time, staff is estimating that total health insurance expenses will be $2,345,466 more

than the budgeted amount. There are many factors that contribute to this increase including fees related to

United Healthcare’s administration of our self-funded health plan, discovery of previously undiagnosed

conditions by our employees due to the completed HRAs, and more claims over $25,000 than in the prior

year.

Staff is currently evaluating employee/retiree rate and plan design changes that may be necessary for FY

2012/2013. We are uncertain whether an increase in employee premiums or changes to benefit design will

be needed, but a 6% increase to the City contribution is necessary.


The Materials Management Fund is comprised of purchasing and warehouse operations. Materials

Management is an internal service fund responsible for procuring goods and services for City departments,

which is regulated by local, state and federal law. The department is also responsible for the warehousing of

materials and supplies necessary for City departments to serve the community. To assist with administrative

duties, a temporary administrative support position has been recommended. In addition, a Senior Buyer

position has been included in the FY 2012-13 Budget. This position will be primarily responsible for assisting

with purchasing tasks associated with the enhanced Denton Municipal Electric capital improvement program

which was discussed previously.


The Fleet Management Fund reflects the costs for providing vehicle maintenance and equipment-related

support services to City departments. This internal service fund is comprised of four functional areas,

including vehicle maintenance, fuel purchasing, vehicle parts contract and motor pool administration.

Compared to FY 2011-12, the Fleet Management Fund reflects a decrease of 9.0 FTEs and associated funding

for a planned joint use maintenance agreement with the Denton County Transportation Authority (DCTA).

Since contract negotiations were not successful, these costs have been removed for FY 2012-13. Additionally,

two new vehicles are recommended to be purchased from FY 2011-12 savings. These vehicles will be rented

to city departments among other uses.




The Technology Services Fund reflects the costs for providing technology support services to the various City

departments. This internal service fund is comprised of seven separate functional areas, including

administration, telecommunications, geographic information systems, application development, user support,

public safety support, reprographics, and regulatory compliance.

With the multitude of technology devices used by the public safety group, it has become necessary to devote

personnel focused solely on police and fire needs. As such, the addition of two FTEs is included in the FY

2012-13 Budget to provide technical support for these operations.

RECREATION FUND

The Recreation Fund includes fee-based recreation programs and activities that are self-supporting. Fees that

are charged recover the costs associated with the programs they support. Funding is included for point of sale

software at all recreation centers, recreation equipment, and golf driving range improvements. Additionally, a

Customer Service Representative and Recreation Coordinator will again be funded from the Recreation Fund

in FY 2012-13.

POLICE CONFISCATION FUND

The Police Confiscation Fund was established to record the receipt of confiscated contraband and the

expenditures funded by that revenue as approved by the courts. Expenditures in this fund include $155,000

for facility upgrades and a new security system for the jail.

TRAFFIC SAFETY FUND

The Traffic Safety Fund is comprised of revenues and expenditures associated with the red light enforcement

cameras. The City operated red light enforcement cameras at various intersections across the City. The fine

revenue derived from violations has been earmarked for public safety and new traffic safety enhancements.

AIRPORT FUND

The Airport Fund was first established in FY 2010-11 and is a self-sustaining enterprise. The fund is

comprised of both operating expenses for the Airport and Airport Gas Well revenues. New expenditures for

the Airport Fund include a grant match for the Routine Airport Maintenance Program (RAMP) ($50,000), the

addition of a Property Coordinator position ($76,211), various road improvement projects ($250,000) and

Airport improvement projects ($750,000). In addition, the Budget includes the issuance of $2,000,000 in

Certificates of Obligation (COs) for planned property acquisitions at the Airport.

SPECIAL REVENUE FUNDS

The Tree Mitigation Fund is used to purchase, plant and maintain trees on public property. While no exact

cost information is available at this time, a citizens committee is currently exploring potential expenses in the

upcoming year. Accordingly, $50,000 is programmed for contingency purposes.

The Public Education Government (PEG) Fund provides for the acquisition of production equipment, capital

and other lawful PEG purposes. PEG fees are remitted to the city on a quarterly basis. Resources are



programmed to support four public education government channels for the University of North Texas, Texas

Woman’s University, Denton Independent School District and Public Access.

The McKenna Trust Fund is used to account for interest received from the George McKenna Trust, which was

established in 1958 and currently is managed by JP Morgan Chase Bank. One half of the net income from this

trust is distributed to Cook Children’s Hospital in Fort Worth and one half of the net income is distributed to

the City of Denton for use only in maintaining, developing, preserving, and improving the George McKenna

Park in the City.

Periodically the City receives donations from the community for special purposes. The Miscellaneous Special

Revenue Fund consists of separate donation collections for the police department, fire department and

animal control. Revenue and expenses for these funds will be represented individually for budgeting

purposes.

The Parks Land Dedication and Development Trust Funds are funds received from developers which provide

for neighborhood parks and projects within ½ to 1 mile radius of the development or platting. Because of the

specific use of these funds, projects planned for next fiscal year are concentrated in neighborhood park areas

in the community. The Park Land Dedication funds will be used on Owsley Park, Milam Park, Carl Young Park

and Mack Park. The Park Development Trust funds include neighborhood park development at Owsley Park,

McKamy-Evers Park, and North Pointe Park.

GAS WELL FUNDS

The City has three gas well funds: Parks Gas Well Fund, Airport Gas Well Fund, and the Non-Airport Gas Well

Fund.

The City currently has several producing gas wells located on City owned property and throughout the

community. Because gas well revenue is considered a short-term resource, the expenditures programmed

from these funds for FY 2012-13 will be used to fund one-time needs. These expenditures are consistent with

a City Council established policy that royalty, pooling and lease revenue from gas wells not be used to fund

on-going operational expenses.

In FY 2012-13, the Non-Airport Gas Well Fund includes $40,000 for expenses associated with a planned

property acquisition.

The Parks Gas Well Fund will use $800,000 for property acquisition at North Lakes Park ($500,000),

construction at the golf driving range ($200,000), and construction of an adult soccer field ($100,000).

As mentioned previously, the Airport Gas Well Fund is reported as part of the Airport Fund which was

established in FY 2010-11.



Fin

an

cial S

um

ma

ry

BUDGET RESOURCE & EXPENDITURE SUMMARY

2012-13

2010-11 2011-12 2011-12 2012-13

RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED

General Fund 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286$

General Debt Service Fund 31,361,366 39,575,035 39,240,749 40,462,208

Electric Fund 131,797,060 142,027,668 131,620,878 158,987,525

Water Fund 39,955,662 38,740,430 38,551,368 43,867,930

Wastewater Fund 23,456,113 25,105,047 24,996,509 28,252,407

Solid Waste Fund 21,203,005 23,073,303 22,840,671 25,147,589

Airport Fund 11,923,294 2,170,000 1,885,544 2,492,925

Technology Services Fund 6,619,733 8,025,502 8,023,532 8,972,973

Materials Management Fund 8,944,927 6,102,754 5,400,015 7,438,866

Fleet Management Fund 9,139,046 13,277,347 10,733,185 12,867,975

Risk Retention Fund 2,835,622 2,731,038 2,570,027 2,719,945

Health Insurance Fund 17,758,277 19,953,113 19,953,113 21,812,160

Street Improvement Fund - 7,066,972 7,322,553 7,158,774

Recreation Fund 1,426,681 1,605,351 1,530,496 1,950,348

Tourist & Convention Fund 1,513,468 1,461,103 1,508,740 1,508,740

Police Confiscation Fund 192,999 216,748 121,146 185,500

Traffic Safety Fund 668,227 385,000 895,316 913,200

Non-Airport Gas Well Fund 392,900 1,600,000 1,600,000 40,000

Parks Gas Well Fund 474,881 350,000 416,610 800,000

Miscellaneous Funds(1)1,288,822 968,049 1,331,596 944,191

TOTAL OPERATING RESOURCES 401,193,151$ 422,897,210$ 409,444,155$ 460,843,542$

Grant Program 6,657,580 7,074,219 2,640,594 6,296,010

Capital Improvements Program (2)51,671,497 162,714,356 57,067,945 278,909,663

TOTAL RESOURCES 459,522,228$ 592,685,785$ 469,152,694$ 746,049,215$

2010-11 2011-12 2011-12 2012-13

EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED

General Fund 87,343,844$ 88,462,750$ 87,578,132$ 94,320,286$

General Debt Service Fund 31,361,366 39,075,952 38,925,663 39,913,999

Electric Fund 122,320,215 140,391,103 131,620,878 158,987,525

Water Fund 35,610,365 38,740,430 37,833,377 43,867,930

Wastewater Fund 22,559,372 24,801,568 24,362,108 28,252,407

Solid Waste Fund 20,824,008 22,904,336 22,814,999 25,124,689

Airport Fund 1,818,493 1,669,896 1,622,663 2,492,925

Technology Services Fund 6,619,733 8,025,502 8,023,532 8,972,973

Materials Management Fund 8,944,927 6,102,754 5,400,015 7,438,866

Fleet Management Fund 9,139,046 13,269,934 10,680,832 12,819,861

Risk Retention Fund 2,172,300 2,731,038 2,570,027 2,719,945

Health Insurance Fund 17,206,842 19,953,113 19,953,113 21,812,160

Street Improvement Fund - 6,145,193 6,143,594 7,158,774

Recreation Fund 1,426,681 1,605,351 1,530,496 1,950,348

Tourist & Convention Fund 1,250,249 1,315,360 1,315,360 1,508,740

Police Confiscation Fund 192,999 207,000 121,000 155,000

Traffic Safety Fund 668,227 377,000 837,884 896,505

Non-Airport Gas Wells Fund 392,900 1,600,000 1,600,000 40,000

Parks Gas Well Fund 53,000 350,000 350,000 800,000

Miscellaneous Funds(1)

700,472 939,605 882,490 554,427

TOTAL OPERATING EXPENDITURES 370,605,039$ 418,667,885$ 404,166,163$ 459,787,360$ Grant Program 6,657,580 7,074,219 2,640,594 6,296,010

Capital Improvements Program (2)51,671,497 162,714,356 57,067,945 278,909,663

TOTAL EXPENDITURES 428,934,116$ 588,456,460$ 463,874,702$ 744,993,033$

(2)FY 2012-13 Budget includes approximately $91 million in Regional Toll Revenue (RTR) funds received for the Mayhill Road

and Bonnie Brae Street expansion projects.

(1)Miscellaneous Funds include the Tree Mitigation Fund, Public Education Government Fund, McKenna Trust Fund, Downtown

Tax Increment Financing Fund, Miscellaneous Special Revenue Funds, Park Land Dedication Trust Fund, and Park Development

Trust Fund.



2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Actual Estimate Adopted Actual Estimate Adopted Actual Estimate Adopted

BEGINNING BALANCE 21,526,779$ 24,424,003$ 25,747,978$ 9,494,728$ 10,014,761$ 9,899,266$ 3,354,535$ 3,279,080$ 3,594,166$

REVENUES

Ad Valorem Taxes 30,239,749$ 30,869,599$ 32,285,809$ -$ 15,871$ 70,691$ 13,907,958$ 14,228,255$ 14,815,514$

Sales Tax 22,871,281 25,655,444 26,466,107 - - - - - -

Franchise Agreements 13,409,611 7,800,883 7,592,570 - 5,673,238 6,562,039 - - -

Other Taxes 381,634 297,464 303,413 1,513,468 1,508,740 1,508,740 - - -

Service Fees 5,656,550 5,807,102 5,943,989 1,993,040 1,903,343 2,240,631 - - -

Fines and Fees 4,216,247 4,426,443 4,564,093 847,526 995,916 1,014,200 - - -

Licenses and Permits 1,460,548 1,393,731 1,413,195 107,781 300,000 200,000 - - -

Return on Investment 5,278,980 5,969,816 6,206,110 - - - - - -

Utilities Operating - - - - - - - - -

Miscellaneous 1,281,993 1,610,381 1,547,113 742,746 836,880 509,449 17,377,953 25,012,494 25,646,694

Subtotal Revenues 84,796,593$ 83,830,863$ 86,322,399$ 5,204,561$ 11,233,988$ 12,105,750$ 31,285,911$ 39,240,749$ 40,462,208$

Transfers from other funds 5,444,475$ 5,071,244$ 7,332,993$ -$ 1,431,341$ 586,735$ -$ -$ -$

TOTAL REVENUES 90,241,068$ 88,902,107$ 93,655,392$ 5,204,561$ 12,665,329$ 12,692,485$ 31,285,911$ 39,240,749$ 40,462,208$

TOTAL RESOURCES 111,767,847$ 113,326,110$ 119,403,370$ 14,699,289$ 22,680,090$ 22,591,751$ 34,640,446$ 42,519,829$ 44,056,374$

APPROPRIATIONS

Personal Services 63,467,185$ 64,069,723$ 68,765,863$ 422,829$ 2,396,432$ 2,795,799$ -$ -$ -$

Purchased Power - - - - - - - - -

Material and Supplies 1,916,248 1,855,499 2,033,820 490,487 537,633 669,413 - - -

Maintenance and Repair 4,855,465 2,304,960 2,406,079 89,421 3,721,921 4,473,978 - - -

Insurance 1,282,627 1,017,202 1,029,951 16,091 56,318 68,185 - - -

Miscellaneous 440,465 621,254 1,015,319 659,168 839,534 6,000 - - -

Operations 10,450,389 11,244,860 12,271,587 544,436 1,440,838 3,008,343 - - -

Fixed Assets 568,041 692,953 787,953 1,011,917 2,145,000 300,000 - - -

Return on Investment - - - - - - - -

Franchise Fees - - - - - - - - -

Debt Service - - - - - - 31,361,366 38,925,663 39,913,999

Inventory Purchases - - - - - - - - -

Tourist and Convention - - - 1,250,249 1,315,360 1,508,740 - - -

Subtotal Appropriations 82,980,420$ 81,806,451$ 88,310,572$ 4,484,598$ 12,453,036$ 12,830,458$ 31,361,366$ 38,925,663$ 39,913,999$

Transfers to other funds 4,363,424$ 5,771,681$ 6,009,714$ 199,930$ 327,788$ 233,336$ -$ -$ -$

TOTAL APPROPRIATIONS 87,343,844$ 87,578,132$ 94,320,286$ 4,684,528$ 12,780,824$ 13,063,794$ 31,361,366$ 38,925,663$ 39,913,999$

ENDING FUND BALANCE 24,424,003$ 25,747,978$ 25,083,084$ 10,014,761$ 9,899,266$ 9,527,957$ 3,279,080$ 3,594,166$ 4,142,375$

CONSOLIDATED FUNDS SUMMARY CONSOLIDATED FUNDS SUMMARY

2012-13 2012-13

Governmental Fund Types

General Fund Special Revenue Funds General Debt Service Fund



2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 TOTAL ALL FUNDS

Actual Estimate Adopted Actual Estimate Adopted FY 2012-13 ADOPTED

12,322,972$ 13,152,353$ 11,896,817$ 92,701,810$ 117,904,491$ 119,252,486$ 170,390,713$ BEGINNING BALANCE

REVENUES

-$ -$ -$ -$ -$ -$ 47,172,014$ Ad Valorem Taxes

- - - - - - 26,466,107 Sales Tax

- - - - - - 14,154,609 Franchise Agreements

- - - - - - 1,812,153 Other Taxes

- - - - - - 8,184,620 Service Fees

- - - - - - 5,578,293 Fines and Fees

- - - - - - 1,613,195 Licenses and Permits

- - - - - - 6,206,110 Return on Investment

- - - 209,759,533 214,739,004 234,571,885 234,571,885 Utilities Operating

22,405,633 20,258,437 23,540,519 - - - 51,243,775 Miscellaneous

22,405,633$ 20,258,437$ 23,540,519$ 209,759,533$ 214,739,004$ 234,571,885$ 397,002,761$ Subtotal Revenues

22,532,159$ 25,113,546$ 28,212,251$ 18,575,601$ 4,863,016$ 6,159,866$ 42,291,845$ Transfers from other funds

44,937,792$ 45,371,983$ 51,752,770$ 228,335,134$ 219,602,020$ 240,731,751$ 439,294,606$ TOTAL REVENUES

57,260,764$ 58,524,336$ 63,649,587$ 321,036,944$ 337,506,511$ 359,984,237$ 609,685,319$ TOTAL RESOURCES

APPROPRIATIONS

5,295,262$ 5,685,515$ 6,351,297$ 22,295,568$ 23,954,110$ 26,861,884$ 104,774,843$ Personal Services

- - - 76,766,074 79,048,502 103,345,172 103,345,172 Purchased Power

466,185 553,343 579,292 2,262,653 2,543,181 2,944,426 6,226,951 Material and Supplies

1,819,203 2,468,059 2,857,994 1,776,950 2,769,796 3,065,465 12,803,516 Maintenance and Repair

18,387,849 21,166,524 23,113,809 458,301 464,514 527,051 24,738,996 Insurance

208,832 276,320 1,487,000 16,784,855 18,053,103 21,923,364 24,431,683 Miscellaneous

4,202,706 5,309,463 4,987,554 30,298,802 38,208,591 37,292,371 57,559,855 Operations

235,356 751,215 612,122 162,766 304,200 422,000 2,122,075 Fixed Assets

- - - 5,954,596 5,969,816 6,206,110 6,206,110 Return on Investment

- - - 9,446,604 9,717,472 10,133,015 10,133,015 Franchise Fees

990,843 889,409 549,841 22,754,061 23,658,387 25,565,657 66,029,497 Debt Service

11,645,120 8,879,315 10,835,120 - - - 10,835,120 Inventory Purchases

- - - - - - 1,508,740 Tourist and Convention

43,251,356$ 45,979,163$ 51,374,029$ 188,961,230$ 204,691,672$ 238,286,515$ 430,715,573$ Subtotal Appropriations

857,055$ 648,356$ 2,389,776$ 14,171,223$ 13,562,353$ 20,438,961$ 29,071,787$ Transfers to other funds

44,108,411$ 46,627,519$ 53,763,805$ 203,132,453$ 218,254,025$ 258,725,476$ 459,787,360$ TOTAL APPROPRIATIONS

13,152,353$ 11,896,817$ 9,885,782$ 117,904,491$ 119,252,486$ 101,258,761$ 149,897,959$ ENDING FUND BALANCE

CONSOLIDATED FUNDS SUMMARY

2012-13

Proprietary Funds

Internal Service Funds Enterprise Funds



BUDGET SUMMARY BUDGET SUMMARY

EXPENDITURES BY CLASSIFICATION EXPENDITURES BY CLASSIFICATION

GENERAL

DEBT SOLID

CATEGORY GENERAL SERVICE ELECTRIC WATER WASTEWATER WASTE AIRPORT

Personal Services 68,765,863$ -$ -$ 11,049,920$ 6,910,361$ 8,398,223$ 503,380$

Purchased Power - - 100,928,672 1,595,500 821,000 - -

Materials & Supplies 2,033,820 - - 1,694,929 910,128 292,644 46,725

Maintenance & Repair 2,406,079 - - 1,243,446 1,287,347 455,675 78,997

Insurance 1,029,951 - - 203,693 135,833 168,962 18,563

Miscellaneous 1,015,319 - 21,717,613 99,548 44,381 60,322 1,500

Operations 12,271,587 - 25,890,126 2,624,276 2,315,667 6,242,914 219,388

Fixed Assets 787,953 - - 42,000 10,000 370,000 -

Return on Investment - - 4,303,400 1,140,060 762,650 - -

Franchise Fees - - 6,147,714 1,618,168 1,089,501 1,241,561 36,071

Debt Service - 39,913,999 - 13,209,294 6,751,660 5,378,055 226,648 Inventory

Inventory Purchases - - - - - - -

Transfers 6,009,714 - - 9,347,096 7,213,879 2,516,333 1,361,653

TOTAL 94,320,286$ 39,913,999$ 158,987,525$ 43,867,930$ 28,252,407$ 25,124,689$ 2,492,925$

the Parks Gas Well Fund, the Tree Mitigation Fund, the PEG Fund, the McKenna Trust Fund, the Miscellaneous

Special Revenue Funds, the Park Development Trust Fund, the Receation Fund, and the Park Land Dedication Trust Fund.

* Other Funds include the Police Confiscation Fund, the Tourist & Convention Fund, the Traffic Safety Fund, the Non-Airport Gas Well Fund,

2012-13



BUDGET SUMMARY

EXPENDITURES BY CLASSIFICATION

STREET

TECHNOLOGY MATERIALS FLEET RISK HEALTH IMPROVEMENT OTHER

SERVICES MANAGEMENT MANAGEMENT RETENTION INSURANCE FUND FUNDS * TOTAL

2,931,736$ 1,122,540$ 1,742,128$ 554,893$ -$ 2,141,141$ 654,658$ 104,774,843$

- - - - - - - 103,345,172

386,219 28,353 155,220 9,500 - 67,706 601,707 6,226,951

2,604,342 9,652 96,000 148,000 - 4,257,024 216,954 12,803,516

24,463 17,357 83,652 1,205,650 21,812,160 47,751 20,434 24,768,469

- 1,000 1,250,000 226,000 - 6,000 - 24,421,683

1,370,878 81,230 3,184,210 351,236 - 557,647 3,959,436 59,068,595

612,122 - - - - - 300,000 2,122,075

- - - - - - - 6,206,110

- - - - - - - 10,133,015

246,369 45,287 258,185 - - - - 66,029,497

- 5,334,970 5,500,150 - - - - 10,835,120

796,844 798,477 550,316 224,666 - 81,505 151,831 29,052,314

8,972,973$ 7,438,866$ 12,819,861$ 2,719,945$ 21,812,160$ 7,158,774$ 5,905,020$ 459,787,360$

2012-13



APPROPRIABLE ESTIMATED ESTIMATED

FUND BALANCE (1)REVENUES EXPENDITURES

10-1-11 2011-12 2011-12

General Fund 24,424,003$ 88,902,107$ 87,578,132$

General Debt Service Fund 3,279,080 39,240,749 38,925,663

Enterprise Funds

Electric Fund 87,163,325 131,327,928 131,620,878

Water Fund (2)12,720,934 38,551,368 37,833,377

Wastewater Fund (2)8,775,491 24,996,509 24,362,108

Solid Waste Fund (3)3,145,136 22,840,671 22,814,999

Airport Fund 6,099,605 1,885,544 1,622,663

Enterprise Funds Subtotal 117,904,491 219,602,020 218,254,025

Internal Service Funds

Technology Services Fund 684,249 7,864,955 8,023,532

Materials Management Fund 1,171,655 5,343,699 5,400,015

Fleet Management Fund 295,977 10,733,185 10,680,832

Risk Retention Fund 6,463,750 2,542,214 2,570,027

Health Insurance Fund 4,536,722 18,887,930 19,953,113

Internal Service Funds Subtotal 13,152,353 45,371,983 46,627,519

Special Revenue Funds

Street Improvement Fund - 7,322,553 6,143,594

Recreation Fund 596,338 1,463,343 1,530,496

Tourist & Convention Fund 538,294 1,508,740 1,315,360

Police Confiscation Fund 152,975 121,146 121,000

Traffic Safety Fund 234,087 895,316 837,884

Non-Airport Gas Wells Fund 1,633,551 3,500 1,600,000

Parks Gas Wells Fund 761,256 416,610 350,000

Tree Mitigation Fund 831,379 305,500 5,288

Public Education Government Fund 472,103 285,000 272,927

McKenna Trust Fund 44,031 3,000 34,275

Park Land Dedication Trust Fund 1,524,202 179,200 330,000

Park Development Trust Fund 3,181,789 120,950 215,000

Downtown Tax Increment Financing Fund - 15,871 -

Miscellaneous Special Revenue Funds 44,756 24,600 25,000

Special Revenue Funds Subtotal 10,014,761 12,665,329 12,780,824

TOTAL 168,774,688$ 405,782,188$ 404,166,163$

(1) Appropriable fund balance reflects working capital available for appropriation.

(3) Excludes Closure/Post Closure reserves ($5,385,000).

(2) Excludes Development Plan Line reserves ($1,000,000) for each Water and Wastewater and Impact Fee reserves for

Water ($2,756,549) and Wastewater ($1,949,310).

PROJECTED APPROPRIABLE FUND BALANCES

2012-13



PROJECTED ADOPTED ADOPTED PROJECTED

APPROPRIABLE BUDGETED BUDGETED APPROPRIABLE

FUND BALANCE (1)REVENUES EXPENDITURES FUND BALANCE (1)

9-30-12 2012-13 2012-13 9-30-13

25,747,978$ 93,655,392$ 94,320,286$ 25,083,084$

3,594,166 40,462,208 39,913,999 4,142,375

86,870,375 142,741,301 158,987,525 70,624,151

13,438,925 42,964,597 43,867,930 12,535,592

9,409,892 27,776,462 28,252,407 8,933,947

3,170,808 25,147,589 25,124,689 3,193,708

6,362,486 2,101,802 2,492,925 5,971,363

119,252,486 240,731,751 258,725,476 101,258,761

525,672 8,794,170 8,972,973 346,869

1,115,339 7,044,192 7,438,866 720,665

348,330 12,867,975 12,819,861 396,444

6,435,937 2,626,390 2,719,945 6,342,382

3,471,539 20,420,043 21,812,160 2,079,422

11,896,817 51,752,770 53,763,805 9,885,782

1,178,959 7,158,774 7,158,774 1,178,959

529,185 1,762,631 1,950,348 341,468

731,674 1,508,740 1,508,740 731,674

153,121 185,500 155,000 183,621

291,519 913,200 896,505 308,214

37,051 2,949 40,000 -

827,866 228,500 800,000 256,366

1,131,591 205,500 50,000 1,287,091

484,176 288,000 154,427 617,749

12,756 3,000 10,000 5,756

1,373,402 209,000 200,000 1,382,402

3,087,739 121,000 100,000 3,108,739

15,871 70,691 - 86,562

44,356 35,000 40,000 39,356

9,899,266 12,692,485 13,063,794 9,527,957

170,390,713$ 439,294,606$ 459,787,360$ 149,897,959$

PROJECTED APPROPRIABLE FUND BALANCES

2012-13



POSITION SUMMARY

2012-13

PERSONNEL 2010-11 2011-12 2011-12 2012-13

Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED

Neighborhood Services 227.81 228.81 227.31 234.58

Public Safety 406.98 407.98 408.98 418.48

Transportation 39.00 14.00 14.00 14.00

Administrative & Community Services 85.50 88.00 88.75 90.75

TOTAL GENERAL FUND 759.29 738.79 739.04 757.81

PERSONNEL 2010-11 2011-12 2011-12 2012-13


Electric Fund 129.50 131.50 131.50 143.00

Water Fund 157.50 158.00 158.00 161.00

Wastewater Fund 88.37 92.37 92.37 95.25

Solid Waste Fund 98.50 105.50 105.50 110.50

Airport Fund 5.00 5.00 5.50 6.50

Street Improvement Fund - 27.00 27.00 30.00

Technology Services Fund 27.00 27.00 27.00 29.00

Materials Management Fund 13.50 12.00 12.00 13.00

Fleet Management Fund 21.00 31.00 22.00 22.00

Risk Retention Fund 5.00 6.00 6.00 6.00

Recreation Fund 24.27 24.27 24.27 24.27

Public Education Government Fund 1.50 - - -

Community Development Block Grant Prog. 6.00 5.00 5.00 5.00

TOTAL OTHER FUNDS 577.14 624.64 616.14 645.52

TOTAL ALL FUNDS 1,336.43 1,363.43 1,355.18 1,403.33



ESTIMATED AD VALOREM TAX COLLECTIONS & DISTRIBUTION

2012-13

City of Denton Overall Tax Collections

Assessed Valuation for 2011 6,412,375,004$

Gain or Loss in Value 304,336,364

Loss of Downtown TIF Value (10,248,781)

Net Assessed Valuation for 2012 6,706,462,587$

Tax Rate Per $100 Valuation x 0.68975

46,257,826$

Estimated Collections x 100.00%

TOTAL GENERAL FUND AND DEBT SERVICE REVENUE 46,257,826$

TIF Value 10,248,781$

Tax Rate Per $100 Valuation x 0.68975

70,691$

Estimated Collections x 100.00%

TOTAL TIF REVENUE 70,691$

TOTAL TAX REVENUE 46,328,517$

TAX RATE PER $100

2012-13

DISTRIBUTION 2011-12 2012-13 REVENUE PERCENT

General Fund 0.47088$ 0.47088$ 31,579,391$ 68.27%

General Debt Service Fund 0.21887 0.21887 14,678,435 31.73%

Sub-Total 0.68975$ 0.68975$ 46,257,826$ 100.00%

Downtown TIF Fund 0.68975$ 0.68975$ 70,691$ 100.00%

TOTAL 46,328,517$



Human Services Advisory Committee2012-13 Funding

Agency CDBG General Fund

Camp Summit 2,000 20,000 2,000

Court Appointed Special Advocates (CASA) 9,500 15,000 10,000

City of Denton - PARKS - MLK Program 12,000 37,599 15,000

Communities in Schools 7,000 15,000 8,000

Day Stay for Adults 5,100 10,000 5,100

Denton Christian Preschool 22,056 22,500 22,500

Denton City County Day School 26,550 35,000 31,520

Health Services of North Texas (formerly AIDS Services of North TX) 21,990 57,500 26,519

Denton County Friends of the Family 24,940 30,000 25,000

Family Health Care, Inc 19,000 19,000 19,000

Fred Moore Day Nursery 23,556 50,000 35,000

HOPE, Inc., - Transitional Housing 20,930 24,000 24,000

HOPE, Inc., - HMIS 18,000 18,000 18,000

PediPlace - 10,000 4,480

Retired Senior Volunteer Program (RSVP) 7,900 10,000 10,000

Salvation Army - 20,000 20,000

Special Programs for Aging Needs (SPAN) 21,000 21,000 10,080 10,920

SUBTOTAL 241,522 414,599 127,119 170,000

Administrative Support Costs 221,560 234,547

TOTAL 463,082$ 414,599$ 127,119$ 404,547$

2011-12 Approved CDBG and General Fund

Contributions 2012-13 Requested

2012-13 Funding

Funding for the Children's Advocacy Center has been recommended at $101,210 (the fair share amount) and is reflected in the Police Department FY 2012-13 budget.

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GENERAL FUND 2012-13 Five Year Forecast

Major Assumptions

Revenue 2012-13 2013-14 2014-15 2015-16 2016-17

Property Tax Growth 4.75% 3% 4% 4% 4%

Tax Rate - O&M $ 0.47088 $ 0.47088 $ 0.47088 $ 0.48088 $ 0.48088

Tax Rate - Debt $ 0.21887 $ 0.21887 $ 0.21887 $ 0.21887 $ 0.21887

Property Tax Increase* -$ -$ 0.01000$ -$ -$

Total Tax Rate 0.68975$ 0.68975$ 0.69975$ 0.69975$ 0.69975$

Sales Tax Growth 3% 3% 3% 3% 3%

Fund Balance 20% 20% 20% 20% 20%

Expenditures 2012-13 2013-14 2014-15 2015-16 2016-17

Compensation

Equity adjustments Non-

Civil Service Employees;

STEP increases for

Police and Fire Civil

Service employees, Plus

3% Merit for all

Employees (3% pay

adjustment for Civil

Service)

3% Merit 3% Merit 3% Merit 3% Merit

Health Insurance 6% Self-Insured 6% Self-Insured 6% Self-Insured 6% Self-Insured 6% Self-Insured

Vehicle Replacements Bond Funded Bond Funded Bond Funded Bond Funded Bond Funded

Service Enhancements

Traffic, Parks, Police,

Fire, Animal Services,

Facilities, Library,

Planning

$1,000,000 $1,000,000 $1,000,000 $1,000,000

* Potential Property Tax Increase in FY 2014-15.

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2012-13 Five Year Forecast (in millions)

Estimated Adopted Proposed Proposed Proposed Proposed

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

24.42$ 25.75$ 25.09$ 23.33$ 21.41$ 20.27$

88.90$ 93.66$ 96.77$ 99.68$ 103.21$ 106.40$

PROPOSED $0.01 TAX INCREASE 0.72$ 0.75$ 0.78$

TOTAL REVENUES 88.90$ 93.66$ 96.77$ 100.40$ 103.96$ 107.18$

TOTAL AVAILABLE RESOURCES 113.32$ 119.41$ 121.86$ 123.73$ 125.37$ 127.45$

87.57$ 94.32$ 97.53$ 100.57$ 102.60$ 105.82$

ONE-TIME EXPENSES -$ 0.25$ 0.25$ 0.25$ 0.25$

FUTURE RECURRING EXPENSES -$ 0.75$ 1.50$ 2.25$ 3.00$

TOTAL EXPENDITURES 87.57$ 94.32$ 98.53$ 102.32$ 105.10$ 109.07$

NET INCOME (LOSS) 1.33$ (0.66)$ (1.76)$ (1.92)$ (1.14)$ (1.89)$

25.75$ 25.09$ 23.33$ 21.41$ 20.27$ 18.38$

EFFECTIVE FUND BALANCE 29.1% 26.6% 23.7% 20.9% 19.3% 16.8%

RESERVE TARGET (percent) 20% 20% 20% 20% 20% 20%

BEGINNING FUND BALANCE

REVENUES

EXPENDITURES

ENDING FUND BALANCE

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2011-12

Estimate

2012-13

Adopted

2013-14

Proposed

2014-15

Proposed

2015-16

Proposed

2016-17

Proposed

WORKING CAPITAL BALANCE (Target 30 Days - 8% Exp) $3.0 $3.5 $3.5 $3.8 $4.0 $4.1

RATE STABILIZATION BALANCE (Target 60 days - 16% Exp) $10.5 $9.1 $8.9 $8.3 $8.5 $8.9

TOTAL ENDING FUND BALANCE $13.5 $12.6 $12.4 $12.1 $12.5 $13.0

8.0% 8.0% 8.0% 8.0% 8.1% 8.0%

27.7% 20.7% 20.2% 17.4% 17.2% 17.2%

8.0% 5.0% 5.0% 5.0% 4.0%

Note: Fund Balance excludes Development Plan Line and Impact Fee Reserves.

$51.7

NET INCOME (LOSS) $0.8 ($0.9) ($0.2) ($0.3)

$0.3

WORKING CAPITAL BALANCE % OF EXPENSES

RATE STABILIZATION BALANCE % OF EXPENSES

PROPOSED RATE INCREASES

$0.0 $0.0

OPERATING EXPENDITURES $37.8

$0.4 $0.5

TOTAL EXPENDITURES $37.8 $43.9 $44.0 $47.8 $49.3

PLANNED RESERVE EXPENDITURES $0.0 $0.9 $0.2

$52.2

$56.5 $56.4 $59.9

$51.7

$61.8 $64.7

$49.7

$43.0 $43.8 $47.5 $49.3

TOTAL RESOURCES AVAILABLE $51.3

WATER


BEGINNING FUND BALANCE $12.7 $13.5 $12.6 $12.4 $12.1 $12.5

REVENUES $38.6 $43.0 $43.8 $47.5

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2011-12

Estimate

2012-13

Adopted

2013-14

Proposed

2014-15

Proposed

2015-16

Proposed

2016-17

Proposed

WORKING CAPITAL BALANCE (Target 30 Days - 8% Exp) $2.0 $2.3 $2.4 $2.6 $2.8 $2.8

RATE STABILIZATION BALANCE (Target 45 days - 12% Exp) $6.4 $5.6 $5.0 $4.4 $4.4 $4.9

DRAINAGE RESERVE $1.0 $1.0 $1.0 $1.0 $1.0 $1.0

TOTAL ENDING FUND BALANCE $9.4 $8.9 $8.4 $8.0 $8.2 $8.7

8.2% 8.1% 8.0% 8.0% 8.2% 8.0%

26.2% 19.8% 16.5% 13.5% 12.8% 14.0%

9.0% 9.0% 8.0% 8.0% 3.0%

Note: Fund Balance excludes Development Plan Line and Impact Fee Reserves.

WORKING CAPITAL BALANCE % OF EXPENSES

RATE STABILIZATION BALANCE % OF EXPENSES


$34.9

NET INCOME (LOSS) $0.6 ($0.5) ($0.5) ($0.4) $0.2

$0.0 $0.0

OPERATING EXPENDITURES $24.4

$0.5

TOTAL EXPENDITURES $24.4 $28.3 $30.3 $32.5 $34.3

PLANNED RESERVE EXPENDITURES $0.0 $0.5 $0.5 $0.4

$27.8 $29.8 $32.1 $34.3

$35.4

$37.2 $38.7 $40.5

$34.9

$42.5 $43.6

$34.5

TOTAL RESOURCES AVAILABLE $33.8

WASTEWATER



REVENUES $25.0 $27.8 $29.8 $32.1

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Estimate

2012-13

Adopted

2013-14

Proposed

2014-15

Proposed

2015-16

Proposed

2016-17

Proposed


REVENUES $22.8 $25.1 $26.4 $27.7 $28.6 $29.7

TOTAL RESOURCES AVAILABLE $25.9 $28.2 $29.5 $30.7 $31.7 $32.8

OPERATING EXPENDITURES $22.8 $25.1 $26.4 $27.6 $28.6 $29.7

PLANNED RESERVE EXPENDITURES $0.0 $0.0 $0.1 $0.0 $0.0 $0.0

TOTAL EXPENDITURES $22.8 $25.1 $26.5 $27.6 $28.6 $29.7

NET INCOME (LOSS) $0.0 $0.0 ($0.1) $0.1 $0.0 $0.0

Working Capital Balance (Target 30 days 8% Exp) 1.8$ 2.0$ 2.1$ 2.2$ 2.3$ 2.4$

Rate Stabilization Balance (Target 15 days 4% Exp) 1.3$ 1.1$ 0.9$ 0.9$ 0.8$ 0.7$

Total Ending Fund Balance 3.1$ 3.1$ 3.0$ 3.1$ 3.1$ 3.1$

WORKING CAPITAL BALANCE % OF EXPENSES 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%

RATE STABILIZATION BALANCE % OF EXPENSES 5.7% 4.4% 3.4% 3.3% 2.8% 2.4%


RESIDENTIAL REFUSE (Large cart) 21.95$ 24.20$ 25.65$ 26.45$ 26.95$ 27.45$

RESIDENTIAL REFUSE (Standard cart) 19.25$ 20.10$ 20.75$ 21.25$ 21.75$ 22.25$

RESIDENTIAL REFUSE (Small cart) 17.10$ 19.10$ 19.75$ 20.25$ 20.75$ 21.25$

RESIDENTIAL RECYCLING 5.15$ 5.15$ 5.40$ 5.50$ 5.55$ 5.65$

COMMERCIAL (Average) 3.9% 5.1% 3.7% 3.5% 3.0% 3.1%

Note: Fund Balance Excludes the Landfill Closure/Post Closure Reserve.

SOLID WASTE


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CITY OF DENTON

GENERAL FUND ORGANIZATIONAL CHART


Code Enforcement

Development Review

Gas Well Review

Library - Administration

Library - Emily Fowler

Library - North Branch

Library - South Branch

Parks - Administration

Parks - Aquatic Center

Parks - Leisure Services

Parks-Maintenance

Planning


Animal Services

Fire Administration

Fire Operations

Fire Prevention

Municipal Court

Municipal Judge

Police

Public Safety

Street Lights

Traffic Operations

Transportation Operations

Transportation

Accounting

Budget and Treasury

Cable Television

City Manager's Office



Finance Administration

Human Resources

Internal Audit

Legal Administration

Public Communications Office


City Manager

City Council

Citizens

GENERAL FUND

RESOURCE & EXPENDITURE SUMMARY

2012-13

2010-11 2011-12 2011-12 2012-13


Ad Valorem Taxes 30,239,749$ 31,002,840$ 30,869,599$ 32,285,809$

Sales Tax 22,871,281 23,446,578 25,655,444 26,466,107

Franchise Agreements 13,409,611 7,800,883 7,800,883 7,592,570

Total Other Taxes 381,634 297,464 297,464 303,413

Service Fees 5,656,550 5,842,393 5,807,102 5,943,989

Fines and Fees 4,216,247 4,502,886 4,426,443 4,564,093

Licenses and Permits 1,460,548 1,390,126 1,393,731 1,413,195

Miscellaneous Revenues 1,281,993 1,542,053 1,610,381 1,547,113

Transfers 10,723,455 11,047,632 11,041,060 13,539,103

TOTAL REVENUES 90,241,068$ 86,872,855$ 88,902,107$ 93,655,392$

Use of Reserves - 1,589,895 - 664,894

TOTAL RESOURCES 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286$

2010-11 2011-12 2011-12 2012-13


Personal Services 63,467,185$ 64,702,421$ 64,069,723$ 68,765,863$

Materials & Supplies 1,916,248 1,855,499 1,855,499 2,033,820

Maintenance & Repairs 4,855,465 2,282,517 2,304,960 2,406,079

Insurance 1,282,627 1,017,202 1,017,202 1,029,951

Miscellaneous 440,465 904,930 621,254 1,015,319

Operations 10,450,389 11,301,849 11,244,860 12,271,587

Transfers 4,363,424 5,705,379 5,771,681 6,009,714

Fixed Assets 568,041 692,953 692,953 787,953


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Neighborhood Services 227.81 228.81 227.31 234.58

Public Safety 406.98 407.98 408.98 418.48

Transportation 39.00 14.00 14.00 14.00

Adminstrative & Community Services 85.50 88.00 88.75 90.75

TOTAL PERSONNEL 759.29 738.79 739.04 757.81



RESOURCES

$94,320,286

EXPENDITURES

$94,320,286

GENERAL FUND RESOURCES & EXPENDITURES

RESOURCES & EXPENDITURES

Personal Services 72.91%

Materials & Supplies 2.16%

Maintenance & Repair 2.55%

Insurance 1.09%

Miscellaneous 1.08%

Operations 13.00%

Transfers 6.37%

Fixed Assets 0.84%

Ad Valorem Taxes 34.23%

Sales Tax 28.06%

Franchise Agreements

8.05%

Total Other Taxes 0.32%

Service Fees 6.30%

Fines and Fees 4.84%

Licenses and Permits 1.50%

Miscellaneous Revenues 1.65%

Transfers 14.35%

Use of Reserves 0.70%



1. Ad Valorem Tax The 2012-13 total certified appraised value for the City of Denton is $6,716,711,368 which is an increase

of 4.75% over the prior year’s certified value. The net assessed valuation for the General Fund is $6,706,462,587 and $10,248,751 for the Downtown TIF fund. The ad valorem tax rate remains the same as the prior year. The current adopted tax rate is $0.68975 per $100 of valuation.

2. Sales Tax The second largest revenue source in the General Fund is sales tax receipts. The FY 2012-13 adopted

amount for sales tax is $26,466,107, which is 3.2% above the FY 2011-12 estimate of $25,655,444. Because of the volatility of this resource, future years of the financial forecast assume a conservative 3% growth rate for sales tax receipts.

3. Franchise Agreements Revenue from franchise agreements is budgeted to decrease $208,313, which is a 2.7% decrease over the

2011-12 budget. This decrease is due to the creation of a separate Street Improvement Fund. The Street Improvement Fund is primarily funded from franchise fees previously allocated to the General Fund.

4. Service Fees Revenue from service-related fees is budgeted to increase $101,596, or 1.7% above the prior year’s

budget. One primary area of expected growth are building inspection and development review related fees.

5. Fines and Fees Overall, fines and fees are budgeted to increase $61,207, or 1.4% above the prior year’s budget. The

overall budget for fines and fees is relatively flat. However, parking fines are expected to increase by $198,790 over last year due to an additional parking enforcement officer and an increase in fine amounts. Other incremental fluctuations offset this increased revenue.

6. Licenses and Permits Revenue from licenses and permits related to development is anticipated to increase $23,069, or a 1.7%

increase over the prior year’s budget. The increase is attributed to a slight increase in building permit revenue.

7. Miscellaneous Revenues Miscellaneous revenue is budgeted to increase by $5,060, or less than 1% above the prior year’s budget.

These revenues are not expected to fluctuate.

8. Transfers Overall, transfers to the General Fund are budgeted to increase by approximately $1.3 million over the

prior year budget. The primary reason for the increase is related to completion of a cost allocation study by an independent consultant. Each year the city completes a study to determine the costs provided by the General fund to the other funds. The model was updated this year to include costs not previously identified and recovered from internal service funds. These costs were previously internalized by the General Fund, and are now being recovered.

GENERAL FUND MAJOR REVENUE SUMMARY

2012-13



2010-11 2011-12 2011-12 2012-13

DESCRIPTION ACTUAL BUDGET ESTIMATE ADOPTED

Current Year Ad Valorem 29,654,055$ 30,183,756$ 30,183,756$ 31,579,391$ Delinquent Ad Valorem 259,749 416,745 349,000 359,470 Current Year - Penalties and Interest 183,511 230,496 165,000 169,950 Prior Year - Penalties and Interest 124,521 149,205 149,205 153,681 Rendition Penalties 17,913 22,638 22,638 23,317

Ad Valorem Taxes 30,239,749$ 31,002,840$ 30,869,599$ 32,285,809$

Sales Tax 22,871,281$ 23,446,578$ 25,655,444$ 26,466,107$ Sales Tax 22,871,281$ 23,446,578$ 25,655,444$ 26,466,107$

Franchise - Atmos Gas 1,145,119$ 677,636$ 677,636$ 640,389$ Franchise - Charter Communications 398,105 219,865 219,865 218,852 Franchise - CoServ Electric 219,071 113,984 113,984 123,104 Franchise - TXU Electric 72,801 42,556 42,556 40,217 Franchise - CoServ Gas 152,783 84,446 84,446 83,711 Franchise - Miscellaneous Cable 54,235 25,000 25,000 27,357 ROW - DISD Fiber 27,500 15,921 15,921 14,751 Franchise - Verizon Telecommunications 617,913 413,609 413,609 305,750 Franchise - Verizon -Cable 1,008,066 480,773 480,773 574,487 Franchise - Telecommunications 235,667 118,977 118,977 128,576

Franchise - DMU Electric (1) 6,113,728 3,511,736 3,511,736 3,297,649

Franchise - DMU Water (1) 1,438,172 857,266 857,266 867,990

Franchise - DMU Wastewater (1) 857,616 567,909 567,909 584,411

Franchise - Solid Waste 1,028,873 650,930 650,930 665,977 Franchise - Airport 39,962 20,275 20,275 19,349

Franchise Agreements 13,409,611$ 7,800,883$ 7,800,883$ 7,592,570$

Mixed Beverage Tax 359,671$ 272,494$ 272,494$ 277,944$ Bingo Tax 21,963 24,970 24,970 25,469

Other Taxes 381,634$ 297,464$ 297,464$ 303,413$

RESOURCE SUMMARY

2012-13

GENERAL FUND

(1) Denton Municipal Utilities.



2010-11 2011-12 2011-12 2012-13


RESOURCE SUMMARY

2012-13

GENERAL FUND

Community Building Rentals 310,755$ 226,350$ 300,000$ 310,500$ Ambulance Service Fees 2,374,337 2,575,000 2,400,000 2,472,000 Hazardous Materials Billing 1,789 1,900 1,900 1,900 Fire Inspections 184,666 178,500 185,000 223,700 Restaurant Inspections 196,933 206,000 206,000 212,180 Swimming Pool Inspections 25,570 35,700 35,700 36,414 Reinspection Fees 14,963 18,025 18,025 18,566 Electrical Inspections 38,138 38,110 45,000 46,350 Plumbing Inspections 86,219 111,100 96,300 97,263 Gas Well Inspections 106,620 204,921 350,000 350,000 Library Non-Resident Fees 35,823 42,420 42,420 42,844 Parks Identification Card Fees 22,863 25,500 25,500 26,010 Athletic Program Fees 67,659 71,482 71,482 73,626 Special Events - Parks 1,350 1,683 1,683 1,717 Natatorium Fees 284,673 335,335 335,335 377,800 Water Works Parks Fees 706,465 729,341 729,341 779,686 Charges to Bond Fund 152,870 232,836 232,836 122,000 Swimming Pool 48,657 50,000 50,000 51,000 Cemetery Fees 28,645 24,000 24,000 24,720 Development Fees 350,986 310,000 350,000 360,500 External Development Review Fees 24,900 84,660 - - Sale of Documents 226 510 510 520 Plan Review Fees 402,726 272,950 240,000 247,200 Parking Meter Receipts 24,691 18,437 18,437 18,990 Development Postage 8,609 8,312 8,312 8,395 Traffic/Police Reports 32,155 37,944 37,944 38,703 Street Cut Reimbursements 121,687 - - - Animal Carcass Pick-Ups 660 1,377 1,377 1,405 Interest Charge Past Due Balance 915 - - -

Service Fees 5,656,550$ 5,842,393$ 5,807,102$ 5,943,989$



2010-11 2011-12 2011-12 2012-13


RESOURCE SUMMARY

2012-13

GENERAL FUND

Warrant Fees 241,298$ 284,625$ 284,625$ 294,587$ Juvenile Case Manager Fees 117,161 132,600 132,600 135,252 Library Fines & Fees 195,888 189,520 189,520 195,206 Animal Pound Fees 231,302 194,169 202,000 208,060 Animal Services Fines 11,606 9,270 12,000 12,360 Auto Pound Fees 5,486 6,000 10,000 10,000 Mowing Recovery Fees 9,104 4,040 4,040 4,080 Police Escort & Guard Fees 18,075 22,248 22,248 22,915 Civil Fines 27,347 30,900 30,900 31,827 Arrest Fees 115,857 121,200 121,200 122,412 Inspection Fines & Fees 38,524 78,294 39,000 40,170 Fire Department Fines 5,800 3,570 3,570 3,641 School Crossing Fines 11,456 12,240 12,240 12,485 Denton Municipal Fines 1,684,018 1,771,600 1,600,000 1,648,000 UNT Police Fines 167,242 229,500 210,000 214,200 TWU Police Fines 30,741 27,540 37,000 37,740 Parking Fines 56,741 58,710 250,000 257,500 Uniform Traffic Fees 53,923 66,100 66,100 67,422 False Alarm Fees 57,516 38,760 57,000 58,140 Court Cost Service Fees 187,491 192,400 192,400 200,096 Court Administration Fees 949,671 1,029,600 950,000 988,000

Fines and Fees 4,216,247$ 4,502,886$ 4,426,443$ 4,564,093$

Food Handler Permits 61,470$ 59,405$ 62,000$ 63,240$ Zoning Permits 60,422 72,800 72,800 75,712 Moving Permits 470 1,010 1,200 1,212 Demolition Permits 6,590 9,180 9,180 9,364 Pool, Spa, Hot Tub Permits 12,950 12,875 12,875 13,261 Building Permits 1,026,594 825,000 825,000 849,750 Electrical & Plumbing Licenses 16,700 15,300 15,300 15,606 Curb Cut Permits 714 918 918 936 Mobile Home Park Licenses 11,410 11,410 11,410 11,410 Sign Permits 33,935 35,000 35,000 36,050 Fence Permits 18,328 22,440 22,440 22,889 Mechanical Permits 49,273 41,200 41,200 42,436 Certificate of Occupancy Fees 71,820 65,000 65,000 67,600 Variance Fees 150 773 773 796 Landscape Fees 1,950 2,060 2,060 2,122 Temporary Gas Permits 9,489 6,500 6,500 6,695 Gas Well Permits 41,100 155,530 155,530 160,196 Park Vendor Fees 20,220 24,180 25,000 25,250 Beer & Wine Permits 9,288 25,000 25,000 4,080 CPR Training 7,675 4,545 4,545 4,590

Licenses and Permits 1,460,548$ 1,390,126$ 1,393,731$ 1,413,195$



2010-11 2011-12 2011-12 2012-13


RESOURCE SUMMARY

2012-13

GENERAL FUND

Interest Income 172,719$ 250,000$ 225,000$ 225,000$ County Vehicle Registration Fee 140,699 130,391 141,000 142,410 County Contribution - Ambulance Service 139,642 140,000 140,000 140,000 DISD Reimbursement - Water Park 375,140 452,632 452,632 466,211 DISD Contribution - School Resource Officer 124,008 138,018 138,018 140,778 State - Signal Reimbursement 16,082 16,062 16,062 16,062 Non-Grant State Reimbursement - Fire 6,919 - 38,773 2,500 Williams Square Parking Fees 16,538 15,000 15,000 15,000 Miscellaneous Revenues 100,501 156,000 156,000 156,001

Grant Revenues 23,059 - 51,346 5,000 Recovery of Prior-Year Expenditures 49,345 108,000 108,000 108,000 Mowing Administration Fees 3,750 2,550 2,550 2,601 Mowing Liens 14,283 8,400 25,000 26,250 Police Phone Commissions 8,609 10,000 10,000 10,300 Sale of Surplus Supplies and Fixed Assets 90,699 115,000 91,000 91,000

Miscellaneous Revenues 1,281,993$ 1,542,053$ 1,610,381$ 1,547,113$

Return on Investment - Water 1,006,720$ 1,043,772$ 1,050,328$ 1,140,060$

Return on Investment - Wastewater 600,331 686,648 683,499 762,650 Return on Investment - Electric 4,279,609 4,245,968 4,235,989 4,303,400 Return on Investment - Airport 27,973 19,832 19,832 - Admin Transfer - Bond Sale 101,915 - - - Cost of Service Transfer - Electric Fund 1,414,008 1,475,624 1,475,624 1,614,375 Cost of Service Transfer - Water Fund 1,316,109 1,398,972 1,398,972 1,631,715 Cost of Service Transfer - Solid Waste Fund 774,657 797,897 797,897 888,373 Cost of Service Transfer - Wastewater Fund 713,683 735,093 735,093 969,706 Cost of Service Transfer - Airport 178,124 178,124 178,124 294,997 Cost of Service Transfer - Risk Retention Fund 66,848 124,794 124,794 183,520 Cost of Service Transfer - Insurance Fund - - - 19,473 Cost of Service Transfer - Recreation Fund 152,168 156,733 156,733 80,668 Cost of Service Transfer - Municipal Crt Security 71,006 100,000 100,000 100,000 Cost of Service Transfer - Fleet Services - - - 371,303 Cost of Service Transfer - Materials Management - - - 709,589 Cost of Service Transfer - Technology Services - - - 469,274 Cost of Service Transfer - Other 20,304 84,175 84,175 -

Transfers 10,723,455$ 11,047,632$ 11,041,060$ 13,539,103$

TOTAL REVENUES 90,241,068$ 86,872,855$ 88,902,107$ 93,655,392$

Use of Fund Balance -$ 1,589,895$ -$ 664,894$

TOTAL RESOURCES 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286$



GENERAL FUND

EXPENDITURES BY PROGRAM SUMMARY

2012-13

2010-11 2011-12 2011-12 2012-13

ACTUAL BUDGET ESTIMATE ADOPTED

NEIGHBORHOOD SERVICES

Building Inspections 1,634,974$ 1,795,631$ 1,782,067$ 2,002,510$

Code Enforcement 1,202,720 1,322,391 1,274,705 1,363,633

Libraries 4,754,785 5,018,691 5,007,068 5,424,927

Parks and Recreation 9,547,371 9,882,257 9,738,058 10,814,857

Planning 1,832,133 2,102,422 2,043,721 2,338,174

Development Review Engineering 246,225 332,383 332,383 346,363

Gas Well Review 174,250 349,266 387,068 456,772

Social Services 267,635 334,357 334,357 404,547

19,660,093$ 21,137,398$ 20,899,427$ 23,151,783$

PUBLIC SAFETY

Animal Services 906,916$ 896,602$ 880,005$ 1,049,446$

Fire 20,904,565 21,480,167 21,638,752 22,860,521

Municipal Court 1,145,211 1,225,061 1,221,919 1,337,989

Municipal Judge 320,709 396,842 396,842 420,464

Police 21,856,190 23,089,980 22,724,491 24,154,219

45,133,591$ 47,088,652$ 46,862,009$ 49,822,639$

TRANSPORTATION

Streets 5,298,117$ -$ -$ -$

Traffic Operations 1,480,716 1,861,919 1,861,581 2,019,805

Transportation Operations 339,498 357,101 357,101 372,232

Street Lighting 645,439 735,000 735,000 735,000

7,763,770$ 2,954,020$ 2,953,682$ 3,127,037$

ADMINISTRATIVE & COMMUNITY SERVICES

City Manager's Office 2,190,954$ 2,189,404$ 2,186,303$ 2,528,457$

Economic Development 1,242,984 1,765,422 1,653,533 2,258,390

Facilities Management 2,791,390 2,905,645 2,900,504 3,123,463

Finance 3,170,682 3,272,445 3,256,055 3,436,623

Human Resources 1,439,424 1,453,261 1,450,634 1,535,392

Internal Audit 136,717 150,863 150,863 150,906

Legal Administration 1,682,634 1,849,244 1,854,660 1,970,567

Public Communications Office 563,208 668,883 666,625 722,180

Non-Departmental 1,568,397 3,027,513 2,743,837 2,492,849 14,786,390$ 17,282,680$ 16,863,014$ 18,218,827$




GENERAL FUND

POSITIONS BY PROGRAM SUMMARY

2012-13

2010-11 2011-12 2011-12 2012-13



Building Inspections 21.00 21.00 21.00 22.00

Code Enforcement 15.00 15.00 15.00 15.00

Libraries 49.50 49.50 49.50 50.50

Parks and Recreation 118.31 118.31 116.81 119.08

Planning 17.00 17.00 17.00 20.00

Development Review 2.00 2.00 2.00 2.00

Gas Well Operations 4.00 4.00 4.00 4.00

Social Services 1.00 2.00 2.00 2.00

227.81 228.81 227.31 234.58

PUBLIC SAFETY

Fire 163.25 163.25 163.25 168.75

Municipal Court 16.00 16.00 17.00 17.00

Municipal Judge 2.50 2.50 2.50 2.50

Police and Animal Services 225.23 226.23 226.23 230.23

406.98 407.98 408.98 418.48

TRANSPORTATION

Streets 27.00 0.00 0.00 0.00

Traffic Operations 11.00 13.00 13.00 13.00

Transportation Operations 1.00 1.00 1.00 1.00

39.00 14.00 14.00 14.00


City Manager's Office 13.00 13.00 14.00 14.00

Economic Development 5.00 5.00 4.75 4.75

Facilities Management 12.00 13.00 13.00 14.00

Finance 23.50 23.50 23.50 24.50

Human Resources 13.00 13.00 13.00 13.00

Internal Audit 1.00 1.00 1.00 1.00

Legal Administration 13.00 13.00 13.00 13.00

Public Communications Office 5.00 6.50 6.50 6.50

85.50 88.00 88.75 90.75

TOTAL POSITIONS

759.29 738.79 739.04 757.81



201011 201112 201112 201213EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTEDPersonal Services 12,831,141$ 13,788,648$ 13,473,875$ 15,073,870$ Materials & Supplies 896,364 927,725 927,725 962,378 Maintenance & Repair 785,941 792,599 792,599 835,303 Insurance 355,975 305,023 305,023 300,727 Miscellaneous 160,065 149,978 149,978 257,181 Operations 2,683,745 2,912,814 2,923,314 3,195,380 Debt Service ‐ ‐ ‐ ‐ Transfers 1,431,690 1,770,432 1,836,734 2,036,765 Fixed Assets 515,172 490,179 490,179 490,179 TOTAL EXPENDITURES 19,660,093$ 21,137,398$ 20,899,427$ 23,151,783$

PERSONNEL 201011 201112 201112 201213Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDPlanning 17.00 17.00 17.00 20.00Building Inspections 21 00 21 00 21 00 22 00


EXPENDITURE AND PERSONNEL SUMMARY201213

Building Inspections 21.00 21.00 21.00 22.00Code Enforcement 15.00 15.00 15.00 15.00Development Review Engineering 2.00 2.00 2.00 2.00Gas Well Operations 4.00 4.00 4.00 4.00Social Services 1.00 2.00 2.00 2.00Library‐Administration 11.00 11.00 11.00 12.00Library‐Emily Fowler Branch 13.00 13.00 13.00 13.00Library‐North Branch 14.50 14.50 14.50 14.50Library‐South Branch 11.00 11.00 11.00 11.00Parks‐Administration 9.00 9.00 8.00 8.00Parks‐Aquatics 34.46 34.46 34.46 35.41Parks‐ Leisure Services 29.49 29.49 28.99 30.31Parks‐Maintenance 45.36 45.36 45.36 45.36TOTAL PERSONNEL 227.81 228.81 227.31 234.58



Note: For a complete description of this department’s Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document.

Program Description

Planning is comprised of the following divisions: Building Inspections, Code Enforcement, Community Development, Gas Well Inspections, and Planning. The Planning Division works to create convenient, equitable, efficient, and attractive environments for present and future generations. The Building Inspections Division is responsible for reviewing applications for building and health permits. The Code Enforcement Division provides enforcement services to ensure the health, safety, and general welfare of the citizens of the City of Denton. The Gas Well Inspections Division oversees the permitting, regulating, and inspecting, gas well drilling and production sites, facilities, and operations that are located within the City’s jurisdictions. The Community Development Division focuses on citizen input to develop and implement programs intended to regenerate aged neighborhoods.

Future Goals in FY 201213

The Planning Division launches the kick‐off the Denton Plan (Comprehensive Plan) update.

The Building Inspections Division plans to create the Green Building Program by the summer of 2013, and adopt the 2009 International Building Codes.

Prior Year Accomplishments in FY 201112

The Planning Division received the Celebrating Leadership in Development Excellence Award from the North Central Texas Council of Governments.

The Code Enforcement Division successfully implemented a first‐ever Minimum Building Standards Enforcement program, and abated 406 violations on properties.

Formed a Gas Well Inspections Division to regulate all drilling and/or production sites and activities within the City of Denton’s jurisdiction.

The Community Development Division closed out the Homeless Prevention and Rapid Re‐Housing (stimulus) program, with total funding of $782,330.


Planning and Development

Strategic Plan Emphasis

KFA 1: Organizational Excellence

KFA 3: Sustainable Economic Development & Environmental Stewardship

KFA 4: Safe, Livable and Family Friendly Community



2010-11 2011-12 2011-12 2012-13EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTEDPlanning 1,832,133$ 2,102,422$ 2,043,721$ 2,338,174$ Building Inspections 1,634,974 1,795,631 1,782,067 2,002,510 Code Enforcement 1,202,720 1,322,391 1,274,705 1,363,633 Development Review Engineering 246,225 332,383 332,383 346,363 Gas Well Operations 174,250 349,266 387,068 456,772 Social Services 267,635 334,357 334,357 404,547 TOTAL EXPENDITURES 5,357,937$ 6,236,450$ 6,154,301$ 6,911,999$

2010-11 2011-12 2011-12 2012-13ACTUAL BUDGET ESTIMATE ADOPTED

Personal Services 4,259,305$ 4,770,712$ 4,611,761$ 5,222,606$ Materials & Supplies 163,080 145,971 145,971 140,181 Maintenance & Repair 2,583 10,100 10,100 6,100 Insurance 120,220 89,258 89,258 86,190 Miscellaneous 160,065 149,828 149,828 257,031 Operations 256,258 543,748 554,248 640,313 Transfers 396,426 526,833 593,135 559,578 TOTAL EXPENDITURES 5,357,937$ 6,236,450$ 6,154,301$ 6,911,999$

PERSONNEL BY DIVISION 2010-11 2011-12 2011-12 2012-13Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDPlanning 17.00 17.00 17.00 20.00Building Inspections 21.00 21.00 21.00 22.00Code Enforcement 15.00 15.00 15.00 15.00Development Review Engineering 2.00 2.00 2.00 2.00 Gas Well Operations 4.00 4.00 4.00 4.00 Social Services 1.00 2.00 2.00 2.00TOTAL PERSONNEL 60.00 61.00 61.00 65.00

MAJOR BUDGET ITEMSFY 2011-12 FY 2012-13

The budget reflects the addition of 1 FTE, Human Services

Coordinator in the Social Services Division. The budget also

reflects $800,000 for the Comprehensive Plan, $600,000 is in the

Non-Airport Gas Well Fund, and $200,000 is in the Planning

operating budget.

The budget reflects the addition of 1 FTE, Assistant Planner; 1

FTE, Planning Technician; and 1 FTE, Intern for a total of 3 FTEs

in the Planning Division. In addition $150,000 was added for the

Clarion Study, $50,000 to increase the Neighborhood Planning

Program, and $5,000 for board training.

NEIGHBORHOOD SERVICESPLANNING DEPARTMENT SUMMARY


The budget reflects the addition of 1 FTE, Commerical Plans

Examiner in the Building Inspections Division.



PROGRAM DESCRIPTION

SOCIAL SERVICES 201011 201112 201112 201213EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTEDCourt‐Appointed Special Advocates 10,083$ 9,500$ 9,500$ 10,000$ HOPE Inc.,‐ Transitional Housing ‐ 17,685 17,685 24,000 HOPE Inc., HMIS 29,265 18,000 18,000 18,000 PediPlace ‐ ‐ ‐ 4,480 Salvation Army ‐ ‐ ‐ 20,000 Fred Moore Day Nursery School 21,478 23,556 23,556 35,000 Day Stay for Adults 6,840 5,100 5,100 5,100 Camp Summit 2,944 2,000 2,000 2,000 Special Program for Aging Needs ‐ ‐ ‐ 10,920 Denton Christian Preschool 16,500 22,056 22,056 22,500 Retired Senior Volunteer Program 6,924 7,900 7,900 10,000 Denton County Child Advocacy Center 22,167 ‐ ‐ ‐ Communities in School 4,583 7,000 7,000 8,000 Subtotal 120,784 112,797 112,797 170,000

Personal Services 121,355 189,604 189,604 199,577 Insurance 1,062 1,101 1,101 3,026 Operations 1,936 3,390 3,390 3,142 Transfers 22,498 27,465 27,465 28,802 TOTAL EXPENDITURES 267,635$ 334,357$ 334,357$ 404,547$

PERSONNEL 201011 201112 201112 201213Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDTOTAL PERSONNEL 1.00 2.00 2.00 2.00

The Social Services Agency contributions from the General Fund represent funding at approximately one dollar andfifty cents per capita. Also included in this funding is the Community Development Manager and costs associated withtechnology for the Community Development Department.

SOCIAL SERVICES





Program Description

The Denton Public Library enriches and advances the community by providing quality materials and services of informational, educational, leisure and cultural value. The Denton Public Library is continuing to fulfill its role as a viable community resource by focusing on five statements of direction for its service activities in FY 2013: Customer‐Focused Services, Partnership Building, Technology Enhancements, Buildings and Spaces, and Staff Resources and Training.


Completion of the radio frequency identification technology upgrade.

Expansion of downloadable titles including youth eBooks, music and videos.

Implementation of Book‐a‐Librarian program, an appointment service for one‐on‐one assistance with a librarian.

Implementation of the new DPL Mobile, the library’s new application for mobile devices.


Provided resources, services, and programming that meet customer needs and empower library users, individuals, and community members.

Actively sought partnerships with key organizations and institutions in order to promote literacy, education, and library usage.

Pursued technology enhancements that meet customer needs and enable staff to provide improved customer service.


Libraries






LIBRARY DEPARTMENT SUMMARY

201011 201112 201112 201213EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTEDLibrary Administration 1,497,768$ 1,557,552$ 1,529,869$ 1,663,466$ Emily Fowler Library 1,129,287 1,165,796 1,181,978 1,279,953 North Branch Library 1,237,517 1,324,530 1,324,530 1,437,813 South Branch Library 890,213 970,813 970,691 1,043,695 TOTAL EXPENDITURES 4,754,785$ 5,018,691$ 5,007,068$ 5,424,927$

201011 201112 201112 201213

EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTEDPersonal Services 3,001,823$ 3,088,613$ 3,076,990$ 3,343,119$ Materials & Supplies 147,616 151,197 151,197 151,197 Maintenance & Repair 26,689 45,226 45,226 45,226 Insurance 59,164 61,981 61,981 63,947 Operations 390,031 404,271 404,271 417,385 Transfers 641,810 777,224 777,224 913,874 Fixed Assets 487,652 490,179 490,179 490,179 TOTAL EXPENDITURES 4,754,785$ 5,018,691$ 5,007,068$ 5,424,927$

PERSONNEL BY DIVISION 201011 201112 201112 201213Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDLibrary Administration 11.00 11.00 11.00 12.00Emily Fowler Library 13.00 13.00 13.00 13.00North Branch Library 14.50 14.50 14.50 14.50South Branch Library 11.00 11.00 11.00 11.00TOTAL PERSONNEL 49.50 49.50 49.50 50.50

MAJOR BUDGET ITEMSFY 201112 FY 201213

The budget reflects the addition of $25,000 for downloadable materials.

The budget reflects the addition of 1 FTE, Technology Librarian.

The Library division was approved for $243,787 from CIP funds to purchase Radio Frequency Identification (RFID) Book Return equipment for all branches.




Program Description

The mission Parks and Recreation Department is: “enriching lives and building community through the stewardship of public parks and open space and diverse recreational opportunities that foster lifelong wellness, creativity, and, learning.” The five divisions within Parks and Recreation support this mission through strategic planning, CIP planning and design; the provision of a variety of passive and active recreation opportunities, programs, and special events utilizing our parks, athletic fields, walking trails and aquatic facilities for the broad demographic segments of our city.


Purchase property and begin design‐build of four adult soccer fields in North Lakes Park.

Complete renovation of Golf Driving Range and bring operation in‐house.

Enter into new joint use agreement with DISD for use of the McMath Middle School gym.

Finalize the City’s sponsorship policy.


Constructed Ernest Dallas Park, Wheeler Ridge Trail, and Quakertown Walking Trails, and renovation of North Lakes Park softball fields where collegiate softball tournaments are held.

Received awards from LULAC, World Water Park Association, Texas Recreation and Parks Society Region 2‐3, and the Parks Maintenance Division won the TRAPS Region 2‐3 Parks Rodeo for the fifth time.

Reorganized department to include a dedicated manager at Denia Recreation Center.








PARKS AND RECREATION DEPARTMENT SUMMARY

2010-11 2011-12 2011-12 2012-13

EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED

Parks Administration 853,067$ 836,825$ 836,825$ 841,589$

Parks Aquatics 1,861,589 1,912,610 1,912,610 2,094,824

Parks Leisure Services 2,115,367 2,293,995 2,293,995 2,699,042

Parks Maintenance 4,717,348 4,838,827 4,838,827 5,179,402


2010-11 2011-12 2011-12 2012-13

EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED


Materials & Supplies 585,668 630,557 630,557 671,000

Maintenance & Repair 756,669 737,273 737,273 783,977

Insurance 176,591 153,784 153,784 150,590

Miscellaneous - 150 150 150

Operations 2,037,456 1,964,795 1,964,795 2,137,682

Transfers 393,454 466,375 466,375 563,313

Fixed Assets 27,520 - - -

9,547,371$ 9,882,257$ 9,738,058$ 10,814,857$

PERSONNEL 2010-11 2011-12 2011-12 2012-13


Parks Administration 9.00 9.00 8.00 8.00

Parks Aquatics 34.46 34.46 34.46 35.41

Parks Leisure Services 29.49 29.49 28.99 30.31

Parks Maintenance 45.36 45.36 45.36 45.36

TOTAL PERSONNEL 118.31 118.31 116.81 119.08

The Parks Leisure Services budget reflects the addition of

1 FTE, Recreation Specialist at the Senior Center, 0.5 FTE,

Recreation Coordinator at the Martin Luther King

Recreation Center.

The Parks Maintenance budget reflects the addition of

$41,000 for rail trail maintenance, and $19,000 for

annexation mowing.

The Parks Leisure Services budget reflects no major

changes.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13

The Parks Administration budget reflects the addition of

$55,500, for the DISD rental agreement.

The Parks budget reflects the addition of $25,957, for

Point of Sale Equipment, $75,000 for Non-CIP and TxDot

Mowing, and $50,000 for Natatorium and Water park

maintenance.

The Parks Aquatics budget reflects no major changes. The Parks Aquatic budget reflects the addition 0.32 FTE, a

lifeguard at the Civic Center Pool.



201011 201112 201112 201213EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTEDPersonal Services 39,213,960$ 40,893,035$ 40,636,392$ 43,144,261$ Materials & Supplies 709,973 646,677 646,677 771,878 Maintenance & Repair 385,607 447,914 447,914 450,218 Insurance 653,694 583,500 583,500 601,736 Miscellaneous 41,106 168,498 168,498 154,760 Operations 2,533,556 2,424,852 2,454,852 2,562,104 Transfers 1,569,382 1,839,176 1,839,176 2,057,682 Fixed Assets 26,313 85,000 85,000 80,000 TOTAL EXPENDITURES 45,133,591$ 47,088,652$ 46,862,009$ 49,822,639$

PERSONNEL BY DEPARTMENT 201011 201112 201112 201213Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDFire Department 163.25 163.25 163.25 168.75Municipal Court 16.00 16.00 17.00 17.00Municipal Judge 2.50 2.50 2.50 2.50Police & Animal Services 225.23 226.23 226.23 230.23TOTAL PERSONNEL 406.98 407.98 408.98 418.48

PUBLIC SAFETY

EXPENDITURE AND PERSONNEL SUMMARY

201213




Program Description

The Denton Fire Department, including Fire Administration, Fire Operations, and Fire Prevention,

provides a broad range of prevention and safety services capable of dynamic and flexible response

whenever called upon. The department, in partnership with other City Departments and the

community; safely, efficiently, and effectively deploys its resources in intelligent and planned

responses.

Future Goals in FY 2012-13

Implement a “Fit for Duty” Standard Operating Procedure (SOP).

Certify 24 shift Captains as certified Fire Inspectors.

Conduct a fire station location study.

Work with Budget to develop a plan for the remodeling of Stations 2, 3, and 4.

Explore the expansion of the Aircraft Rescue and Firefighting program to include facilities

and staffing.

Prior Year Accomplishments in FY 2011-12

Collaborated with the Denton Municipal Airport in the creation of an aircraft rescue and

firefighting (ARFF) unit.

Purchased mobile data computer (MDC) replacement units.

Adopted the 2009 International Fire Code (IFC) with associated local amendments.

Implemented Phase 1 of the Emergency Operations Center (EOC) upgrade.

Implemented supplemental package programs.

Public Safety

Fire





PUBLIC SAFETY

FIRE DEPARTMENT SUMMARY

2010-11 2011-12 2011-12 2012-13


Fire Administration 1,571,029$ 1,696,568$ 1,696,568$ 1,764,172$

Fire Operations 18,426,863 18,846,193 19,004,778 20,062,373

Fire Prevention 906,673 937,406 937,406 1,033,976


2010-11 2011-12 2011-12 2012-13





Insurance 285,436 241,867 241,867 255,236

Miscellaneous 41,010 46,850 46,850 48,350

Operations 1,163,656 1,153,172 1,183,172 1,216,426

Transfers 583,762 532,720 532,720 535,580

Fixed Assets 26,313 85,000 85,000 80,000


PERSONNEL BY DIVISION 2010-11 2011-12 2011-12 2012-13


Fire Administration 8.00 8.00 8.00 7.50

Fire Operations 148.00 148.00 148.00 153.00

Fire Prevention 7.25 7.25 7.25 8.25

TOTAL PERSONNEL 163.25 163.25 163.25 168.75

The budget reflects $115,500 for personal protective

equipment, self-contained breathing apparatuses, and lifepak

defibrillators. An additional $34,550 is budgeted in the

Technology Services Fund for mobile data communication

(MDC) units.

MAJOR BUDGET ITEMS

The budget reflects $540,983 for 5.0 FTEs for a new medic

unit, $68,962 for a new Fire Inspector position, $15,060

for a 0.5 FTE Administrative Assistant position and

$37,625 for aircraft rescue and firefighting (ARFF)

equipment.

FY 2011-12 FY 2012-13




Program Description

The Municipal Court is responsible for administration and clerical support for all municipal court proceedings required by state statute. These responsibilities include collection of fines, fees and state costs, filing of all appropriate documentation, coordinating court appearances of participants, and providing statistical reporting to City and state entities. The Municipal Court has custodial duties over all documents and records that become part of the legal process. Municipal Court remits mandated fees to the State of Texas.


Remodel the front counter area to better serve a paperless environment and meet ADA

compliance requirements.

Enhance workflow processes to move toward a paperless environment. Utilize work

queues, automated macros and batch processing.

Work with Community Service Administrator to develop an effective community service

program that best serves the needs of the Court.

Pass the first audit of our Collections Improvement program performed by the Office of

Court Administration tentatively scheduled in August 2012.


Designated by City Ordinance a new juvenile case manager and adopted a mission

statement and code of ethics in order to comply with the new State legislation that became

effective December 1st, 2011.

Created a new permanent position for our Teen Court and Community Service

Administrator.

Implemented the Collections Improvement Program to meet State mandated requirements

by the Office of Court Administration.

Public Safety

Municipal Court





PUBLIC SAFETY

MUNICIPAL COURT DEPARTMENT SUMMARY

2010-11 2011-12 2011-12 2012-13


Personal Services 953,730$ 988,631$ 985,489$ 1,123,595$


Maintenance & Repair 2,988 - - -

Insurance 10,600 13,184 13,184 14,982

Miscellaneous - - - 5,200

Operations 109,042 94,079 94,079 20,193

Transfers 4,171 71,398 71,398 108,237




TOTAL PERSONNEL 16.00 16.00 17.00 17.00

The budget reflects an increase of $8,688 for the

implementation of the Scofflaw program.

The FY 2011-12 budget estimate includes the addition of

1.0 FTE for Teen Court and Community Service

Coordinator position, and $70,330 for a front counter

remodel project.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13




Program Description

The Municipal Judge's office performs all discretionary functions of an independent judiciary on behalf of the City of Denton. As required by law, the judge presides over all trials or hearings held in the Denton Municipal Court. Judicial functions include: jury trials, non-jury (bench) trials, pre-trials, bond, summons, plea dockets, bond forfeiture hearings, indigency hearings, payment plans, compliance and default hearings, and juvenile pleas. In addition to the judicial functions observed by the general public in open court, the Municipal Judge establishes court policies, implements processes and court work flow, and revises court policies and procedures in accordance with applicable statutory mandate. The Judge determines municipal fine schedules, issues municipal arrest, inspection warrants, and orders for the seizure of dangerous or cruelly treated animals. The Judge acts as a magistrate for criminal enforcement procedures for the Denton Police Department through the issuance of writs, warrants and other process as to all levels of misdemeanor and felony prosecution.


Insure that the Denton Municipal Court remains a Court of Record and meets all requirements of Chapter 30, Government Code.

Re-evaluate and refine processes and procedures related to Denton Code Enforcement cases filed with the Court and develop methods or processes designed to better dispose of and enforce judgments rendered under the Denton Development Code or City ordinances.

Evaluate the implementation, efficiency and effect of the Incode Software Case Management System and report to Council regarding the strengths and weaknesses of the system as implemented in the Denton Municipal Court.


Actively observed and monitored legislation proposed and adopted by the 82nd Texas State Legislature that affected process, procedure, fees or fines assessed by the Denton Municipal Court.

Reviewed Ch. 54 and Ch. 214 of the Texas Local Government Code to evaluate conversion of the current criminal enforcement processes to a civil administrative process.

Public Safety

Municipal Judge





PUBLIC SAFETY

MUNICIPAL JUDGE DEPARTMENT SUMMARY

201011 201112 201112 201213EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTEDPersonal Services 289,008$ 359,349$ 359,349$ 376,061$ Materials & Supplies 3,545 4,943 4,943 4,943 Insurance 3,056 3,087 3,087 4,266 Miscellaneous ‐ ‐ ‐ ‐ Operations 4,389 4,488 4,488 4,488 Transfers 20,711 24,975 24,975 30,706 TOTAL EXPENDITURES 320,709$ 396,842$ 396,842$ 420,464$

PERSONNEL BY DIVISION 201011 201112 201112 201213Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTEDTOTAL PERSONNEL 2.50 2.50 2.50 2.50

MAJOR BUDGET ITEMSFY 201112 FY 201213

The budget reflects no major changes. The budget reflects no major changes.




Program Description

The Police Department is a full-service law enforcement and public safety agency that provides

services within the city limits of Denton. The department is divided into three bureaus, Operations

Bureau, Criminal Investigations Bureau, and Administrative Services Bureau. The mission of the

Denton Police Department is to positively impact the quality of life throughout the community. The

department is committed to forming practical partnerships with the citizenry, which include a

mutual goal-setting process aimed at resolving problems, reducing fear, preserving the peace, and

enforcing the law, thereby providing a safer environment for all citizens.


Develop a Departmental Strategic Plan, tied to a financial forecast, emphasizing crime

reduction, community policing initiatives, expansion of police facilities, and adequate

staffing levels.

Identify and pursue sources of funding to conduct a staffing study.

Identify core service areas where improvements can be developed and implemented.


Enhanced the Department’s ability to retrieve and analyze data related to criminal activity

and offenders by increasing our use and understanding of analytical software programs.

Successfully utilized technology including social media to communicate with citizens

regarding crime prevention and reporting.

Partnered with Denton Independent School District and various civic groups to expand our

summer juvenile outreach program.

Public Safety

Police





PUBLIC SAFETY

POLICE AND ANIMAL SERVICES DEPARTMENT SUMMARY

2010-11 2011-12 2011-12 2012-13


Animal Services 906,916$ 896,602$ 880,005$ 1,049,446$

Police 21,856,190 23,089,980 22,724,491 24,154,219


2010-11 2011-12 2011-12 2012-13





Insurance 354,602 325,362 325,362 327,252

Miscellaneous 96 121,648 121,648 101,210

Operations 1,256,469 1,173,113 1,173,113 1,320,997

Transfers 960,738 1,210,083 1,210,083 1,383,159




Animal Services 8.00 9.00 9.00 11.00

Police 217.23 217.23 217.23 219.23

TOTAL PERSONNEL 225.23 226.23 226.23 230.23

The budget reflects an increase of $182,488, for uniforms,

overtime, and support for Children's Advocacy Center.

FY 2011-12 FY 2012-13

MAJOR BUDGET ITEMS

The budget reflects an increase of $25,000 for

ammunition, 1.0 FTE for a Lieutenant position and 1.0

FTE for a Property Technician position for the Police

Department. The Animal Services Department includes

an addition of 1.0 FTE for a Shelter Manager position

and 1.0 FTE for a Animal Services Officer. The budget

includes $101,210 for the Children's Advocacy Center.



EXPENDITURES 2010-11 2011-12 2011-12 2012-13




Maintenance & Repairs 3,060,117 480,394 502,837 479,242

Insurance 66,002 18,553 18,553 28,007

Miscellaneous 5,886 2,766 2,766 2,766

Operations 1,343,109 1,091,862 1,091,862 1,089,038

Transfers 393,270 100,185 100,185 98,270

Fixed Assets - 100,000 100,000 200,000


PERSONNEL BY DEPARTMENT 2010-11 2011-12 2011-12 2012-13


Streets 27.00 - - -



TOTAL PERSONNEL 39.00 14.00 14.00 14.00


2012-13

TRANSPORTATION



Note: For a complete description of this department’s Strategic Plan performance measures, please see the Strategic Plan Performance Report section in this document.

Program Description

Traffic and Transportation Operations provide for the safe operation and support services for the

transportation systems and industry. The Traffic Department monitors traffic volumes, maintains traffic

signals, pavement markings, and signage. The Transportation Operations support transportation related

planning activities for the regional transportation infrastructure to improve mobility and enhance air quality;

all of which impacts the quality of life and economic vitality of the City of Denton and surrounding region.

Both departments respond to citizen requests, provide emergency response, manage transportation issues,

review new development, and assure compliance with federal, state, and local standards.


Complete field inspections throughout the city for a total footage of pavement marking and to complete data entry in Cartegraph MarkingView database.

Continue support of IH-35E Managed Lane Project to ensure enhancements best meet the needs of Denton residents.

Assist Regional Transportation Council Chair with regionally significant transportation initiatives (IH-35E, IH-35W, Cotton Belt, and legislative efforts to improve transportation revenue options).


Supported elected officials efforts to ensure the IH-35E Managed Lane Project included capacity improvements through Denton (US 380).

Substantially completed design and construction of the Hickory Street Sidewalk Enhancement project.

Assisted with maintaining Friday night A-train rail service and expansion of rail service to mid-day on weekdays.

Installed new traffic signals at Teasley at Montecito and Teasley at Wheeler Ridge.

Transportation

Traffic and Transportation Operations


KFA 2: Public Infrastructure



TRAFFIC AND TRANSPORTATION OPERATIONS DEPARTMENT SUMMARY

2010-11 2011-12 2011-12 2012-13


Streets 5,298,117$ -$ -$ -$

Traffic Operations 1,480,716 1,861,919 1,861,581 2,019,805

Street Lighting 645,439 735,000 735,000 735,000

Transportation Operations 339,498 357,101 357,101 372,232


2010-11 2011-12 2011-12 2012-13




Repair & Maintenance 3,060,117 480,394 502,837 479,242

Insurance 66,002 18,553 18,553 28,007

Miscellaneous 5,886 2,766 2,766 2,766

Operations 1,343,109 1,091,862 1,091,862 1,089,038

Transfers 393,270 100,185 100,185 98,270

Fixed Assets - 100,000 100,000 200,000




Streets 27.00 - - -



TOTAL PERSONNEL 39.00 14.00 14.00 14.00

MAJOR BUDGET ITEMS

Six new traffic control signals totaling $1,066,053 are planned as

part the capital budget for the Traffic Control division.

The Traffic Control operating budget includes 2 additional FTEs.

A Traffic Signal Technician and a Traffic Signal/ Marking

Technician.

Three new traffic control signals totaling $410,000 are planned

as part the capital budget for the Traffic Control division.

The Street Maintenance Department funding and 27 FTEs were

moved to a newly established special revenue fund.

An additional $100,000 is allocated for the continuation of a bike

plan.

TRANSPORTATION

FY 2011-12 FY 2012-13

$100,000 is allocated for the implementation of a bike plan. This

is part of a matching agreement with Denton County.



2010-11 2011-12 2011-12 2012-13





Insurance 206,956 110,126 110,126 99,481

Miscellaneous 233,407 583,688 300,012 600,612

Operations 3,889,979 4,872,321 4,774,832 5,425,065

Transfers 969,082 1,995,586 1,995,586 1,816,997

Fixed Assets 26,556 17,774 17,774 17,774




City Manager's Office 13.00 13.00 14.00 14.00

Economic Development 5.00 5.00 4.75 4.75

Facilities Management 12.00 13.00 13.00 14.00

Finance 23.50 23.50 23.50 24.50

Human Resources 13.00 13.00 13.00 13.00

Internal Audit 1.00 1.00 1.00 1.00

Legal Administration 13.00 13.00 13.00 13.00


TOTAL PERSONNEL 85.50 88.00 88.75 90.75



2012-2013



Note: For a complete description of this department’s Strategic Plan performance measures, please see the

Strategic Plan Performance Report section of this document.

Program Description

The City Manager serves under the policy direction of the City Council and provides the leadership for

implementation of the City Council policies to ensure residents and businesses receive exceptional city

services and Denton maintains a high quality of life. The City Manager’s Office facilitates the coordination and

implementation of City Council policy direction, provides administration of the organization, and develops

methods for the effective and efficient delivery of services to the Denton citizens. The City Secretary’s Office

supports the City Council and City Manager by safeguarding the records management process, enhancing

access to municipal records, overseeing the election process, and providing daily assistance to internal and

external stakeholders.


Implement effective and efficient service delivery in accordance with Council policy.

Strengthen relationships with government, education, and community groups.

Ensure that customer service is conducted in a professional and courteous manner that meets or exceeds customer satisfaction expectations.

Explore opportunities to utilize technology to make access to information and communication with our stakeholders more efficient.


Facilitated implementation of City Council policy direction and goals as set forth in the Strategic Plan.

Strengthened and cultivated relationships with education and government entities by coordinating regular

meetings with the City Council and key staff members including county, state, and federal legislators, University

of North Texas, Texas Woman’s University, and Denton Independent School District to address issues of

common interest and concern.

Responded to citizen and staff information inquiries in a friendly and timely manner often directing inquiries to

additional information on the City’s website.

Coordinated regular City Council Meetings, provided packets of background information supplied by staff to

assist the Council in making policy decisions, and posted all pre and post meeting information on the website for

public viewing.


City Manager’s Office


KFA 1: Organizational Excellence KFA 5: Partnerships and Regional Leadership




CITY MANAGER'S OFFICE SUMMARY

2010-11 2011-12 2011-12 2012-13





Insurance 144,292 47,491 47,491 29,483

Miscellaneous 25,018 38,075 38,075 38,075

Operations 91,356 101,676 101,676 130,371

Transfers 92,336 124,193 124,193 134,841


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 13.00 13.00 14.00 14.00

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects no major changes.

The budget estimate reflects the addition of 1 FTE, Assistant

City Manager position.





Program Description

The Economic Development Department's objective is to promote and assist positive development in Denton

through programs, partnerships, and redevelopment efforts. The department acts as the liaison to partners

in higher education, chambers of commerce, developers, businesses, and for specific CIP projects. Staff

compiles and distributes community statistics, information, and provides responses to concerns and

informational requests. Staff serves as liaisons for the Economic Development Partnership Board and

Downtown Tax Increment Reinvestment Zone Board.


Implement Downtown plan through business recruitment, design assistance, and grant programs.

Create Industrial Park Master Plan, identifying challenges and opportunities for sound growth.

Assist existing businesses by identifying needs through comprehensive business retention program.

Promote and support the development of the Denton Airport.


Implemented Downtown plan through business recruitment, designed way finding signs, created

marketing plan, and facilitated the Downtown Reinvestment Grant Program where the City saw a

return on investment of $118 for each dollar granted in the program.

Attended six trade shows to market Denton; recruited and located Labinal Inc., bringing 700 jobs to

Denton.

Retained Mayday Mfg. (250 jobs) and provided research and assistance to over 100 businesses and

made business retention visits to 51 existing businesses.

Airport Branding Taskforce was formed and a consulting company retained to assist with branding

and marketing plan for Airport.







2010-11 2011-12 2011-12 2012-13


Personal Services 485,279$ 507,557$ 507,557$ 518,112$


Insurance 3,653 4,116 4,116 4,416

Miscellaneous 10,708 22,000 22,000 22,000

Operations 58,173 74,949 74,949 124,274 Transfers 35,992 30,895 30,895 30,348

Subtotal 623,777 674,394 674,394 734,027

380 Agreements - Ad Valorem 64,518 66,455 68,982 90,611

380 Agreements - Sales Tax 549,809 963,676 849,260 1,372,855

Chamber of Commerce Contribution 4,880 60,897 60,897 60,897

Subtotal 619,207 1,091,028 979,139 1,524,363


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 5.00 5.00 4.75 4.75

The budget reflects an additional $50,000 for the Downtown

Reinvestment Grant Program, details provided in the Budget

Overview section.


ECONOMIC DEVELOPMENT

The budget esitmate reflects reduction of .25 FTE, the Economic

Development Analyst position has been reduced to .75 FTE.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13





Program Description

The Facilities Management Department is responsible for the preventative maintenance & care of forty-four

buildings, vertical construction of all City owned facilities, card access systems for eighteen buildings, access

ID cards for all employees, janitorial services for twenty-six buildings. The department maintains

construction contracts, which includes supervision of architects, consultants and contractors. The

department Capital Improvement Program (CIP) encompasses all City vertical construction (excluding

electric substations, lift stations, pump stations, etc) and the Facilities Maintenance Program (formerly Roofs,

Flooring & HVAC). Facilities Management is also responsible for supervising approved one-time building

need projects.


Continue to provide excellent customer service.

Maintain City facilities and equipment in the most cost effective manor possible.


Completed: DCTA Downtown Transit Center, Airport LESA building, Fuel Island/Truck Wash, DME

Engineering & System Operations, EECBG lighting retrofit, EECBG chiller replacement, HR remodel,

DME Admin remodel, and City Hall East (CHE) roof replacement.

Started the planning phase of the Linda McNatt Animal Care Center, City Hall “west” parking lot

replacement, CHE “west” parking lot replacement, Pecan Creek Operation building, Joint Training

Facility at CHE PD, Bonnie Brae Substation wall, DME Meter Shop Expansion.

Performed preventative maintenance on City facilities and equipment to ensure the longest possible

lifespan with as little interruption as possible for customers and employees.








FACILITIES MANAGEMENT

2010-11 2011-12 2011-12 2012-13





Insurance 19,322 13,546 13,546 14,668

Miscellaneous 337 1,503 1,503 1,503

Operations 1,022,498 1,069,934 1,069,934 1,077,619

Transfers 71,037 97,447 97,447 115,160


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 12.00 13.00 13.00 14.00

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the increase of 1 FTE, a licensed facilities

trade tech, and an increase in overtime funding.

The budget reflects the addition of 1 FTE, a facilities assistant

position, details provided in the Budget Overview section.





Program Description

The Finance Department is comprised of the Accounting, Budget and Treasury, and Finance Administration

divisions. The department is responsible for a variety of functions. These include: accounts payable and

receivable, payroll, cash management, managing the City’s investment portfolio, debt management,

budgeting, and long-range financial planning. The department produces quarterly financial reports, prepares

the Comprehensive Annual Financial Report (CAFR) and the Annual Program of Services (Budget).


Enhance Capital Improvement Program budget development and monitoring processes.

Begin implementation of payroll self-service module.

Implement a benchmarking program to complement the Strategic Plan Performance Report.

Compare existing financial policies to the Government Finance Officers Association (GFOA)

recommended practices and update City of Denton policies as appropriate.

Improve the frequency and accuracy of projections for each of the operating departments and funds

within the City.


Achieved the Distinguished Budget Presentation Award from the Government Finance Officers

Association.

Finalized performance measures which are included in the Strategic Plan Performance Report.

Completed preparations for the November 2012 bond election.

Developed strategic plan for the Finance Department to guide future decision making.

Upgraded JD Edwards Enterprise Resource Planning (ERP) software from version 8.11 to 9.0.


Finance






2010-11 2011-12 2011-12 2012-13


Accounting 1,612,202$ 1,650,867$ 1,634,477$ 1,722,900$

Budget and Treasury 1,249,598 1,295,407 1,295,407 1,413,971

Finance Administration 308,882 326,171 326,171 299,752


2010-11 2011-12 2011-12 2012-13


Personal Services 2,163,465$ 2,224,344$ 2,207,954.00$ 2,369,906$

Materials & Supplies 81,281 73,363 73,363.00 70,178

Repair & Maintenance 1,345 675 675.00 675

Insurance 16,607 18,877 18,877.00 20,598

Miscellaneous 1,702 1,415 1,415.00 1,915

Operations 768,880 785,063 785,063.00 793,166

Transfers 137,402 168,708 168,708.00 180,185




Accounting 15.00 15.00 15.00 15.00

Budget and Treasury 6.50 6.50 6.50 7.50

Finance Administration 2.00 2.00 2.00 2.00

TOTAL PERSONNEL 23.50 23.50 23.50 24.50

MAJOR BUDGET ITEMS

FINANCE DEPARTMENT SUMMARY

FY 2012-13FY 2011-12The budget reflects the addition of 1 FTE, a Senior Financial

Analyst position in the Budget division, details provided in the

Budget Overview section.

The budget reflects no major changes.




INTERNAL AUDIT

2010-11 2011-12 2011-12 2012-13EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED

Insurance 1,409$ 863$ 863$ 906$

Operations 124,233 150,000 150,000 150,000

Transfers 11,075 - - -

TOTAL EXPENDITURES 136,717$ 150,863$ 150,863$ 150,906$

PERSONNEL 2010-11 2011-12 2011-12 2012-13



MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects no major changes. The budget reflects no major changes.





Program Description

The Human Resources Department is a partner that provides departments within the organization advice, support, and recommendations to effectively utilize and manage the City's human resources. The department's strategic role is to provide an avenue by which managers can attract and retain quality employees. This includes a competitive compensation and benefits package, dynamic recruiting program, cutting-edge training program, and recommending short-term and long-term strategic human resource management decisions. The Department is also a resource for employees when they need a neutral, objective party to help them work through challenges or concerns they may have related to the workplace, their position, and/or their supervisor(s).


Continue with supervisory awareness and training on various employment related laws, with an

emphasis on privacy issues in the workplace and the American’s with Disabilities Act.

Continue enhancing the Intranet site to improve accessibility to Human Resources information, with

an emphasis on including more on-line self-help tools and training.

Upgrade the Human Resources Laserfiche Imaging System to better reflect Human Resources

processes, incorporate Risk Management imaging, and identify options to better share electronic

documents with other departments such as Police and Fire.


Conducted a 16-hour mandatory supervisory training for all supervisors June 2011 through August

2012, designed to positively influence the organizational culture and reduce liability by ensuring

supervisors are exposed to vital employment laws and have an understanding of important

supervisory responsibilities.

Continued enhancement of Intranet site to improve accessibility to Human Resources information

(e.g., processes, procedures, tips, training).

Created a non-exempt performance feedback form that was designed to be less writing intensive and

better suited for the nature of the work performed by such positions.

Developed a draft strategic plan for Human Resources/Risk Management.


Human Resources





2010-11 2011-12 2011-12 2012-13




Maintenance & Repair - 500 500 500

Insurance 9,470 10,680 10,680 12,349

Miscellaneous 35,034 50,773 50,773 50,873

Operations 153,793 171,522 185,922 191,115

Transfers 83,397 83,536 83,536 86,308


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 13.00 13.00 13.00 13.00



HUMAN RESOURCES

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects no major changes.





Program Description

The Legal Department serves as general counsel to the City of Denton and provides transactional and

advisory services and litigation services in support of the City Council, boards, and City staff. The office

further approves all proposed ordinances before the City Council, drafts all proposed ordinances granting

franchises, inspects and reviews papers, documents, contracts and other instruments in which the City may

be interested. In addition, prosecutors are provided through the department to represent the State of Texas

in Municipal Court proceedings.


Continue to achieve favorable results in pending litigation and reduce litigation costs for the City.

Maintain the effectiveness of the transactional work of the City Attorney’s Office.

Attain a high level and broad based knowledge of Denton-specific ordinances in the City Attorney’s

Office.

Continue participation in organizations which enhance Denton’s City Attorney’s Office, such as TCAA,

IMLA and TML.

Continue to provide timely and accurate responses to legal questions.


Agenda items completed within the required time frame.

Special projects completed in a timely manner.

Provided prompt and appropriate advice to City Council, City boards and City management.


Legal






LEGAL ADMINISTRATION

2010-11 2011-12 2011-12 2012-13




Insurance 8,558 10,444 10,444 11,188

Operations 108,908 197,553 197,553 197,426

Transfers 36,597 56,788 56,788 65,779

Fixed Assets 26,556 17,774 17,774 17,774


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 13.00 13.00 13.00 13.00

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects an increase of $3,530 in the fixed assets line

for the purchase of LexisNexis Texas Litigation Guide.






Program Description

The Public Communications Office (PCO) assists the organization with the dissemination of information to the

public. The department conducts programs which are designed to inform and educate citizens regarding City

programs, services, and issues. PCO helps to create and maintain a positive public image of the City. Oversight

is provided regarding the City's website, social media outlets, and the City's television channel. The

department facilitates internal communication in order to keep employees informed. Advertising, print

material, video production, and public relations support is provided along with public education efforts to

enhance programs for the Utility Departments and a variety of general government departments.


Double the number of YouTube subscribers.

Increase participation in use of cityofdenton.com services by 10%.

Increase City-wide social media followers by 15%.

Expand PCO involvement with departments who do not traditionally use our services.


Successfully launched engagedenton.com.

Successfully met goal of having 10,000 social media participants.

Expanded access to both live and on-demand meeting coverage.

Reached the goal of 10,000 views on YouTube.


Public Communications Office






PUBLIC COMMUNICATIONS SUMMARY

2010-11 2011-12 2011-12 2012-13


Public Communications Office 396,150 425,168 425,168 452,495

Cable TV 167,058 243,715 241,457 269,685


2010-11 2011-12 2011-12 2012-13

EXPENDITURES BY CLASSIFCATION ACTUAL BUDGET ESTIMATE ADOPTED



Maintenance & Repair 46 1,500 1,500 1,500

Insurance 3,645 4,109 4,109 5,873

Miscellaneous 420 349 349 349

Operations 83,334 119,222 119,222 125,357

Transfers 31,637 37,453 37,453 39,480


PERSONNEL 2010-11 2011-12 2011-12 2012-13



Cable TV 2.00 2.00 2.00 3.50


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the combined budgets of the Public

Communications Office and Cable TV division.

The budgets reflects a transfer of 1.5 FTE's, from the Public

Education Government (PEG) Grant fund. 1 FTE, a video

producer, and .50 FTE, part-time photographer/editor.

The budget reflects additional funding of $9,000 to improve the

City's website, details provided in the Budget Overview section.



2010-11 2011-12 2011-12 2012-13


Unemployment Insurance 76,109$ 50,000$ 50,000$ 50,000$ Salary Adjustments - - - (372,918)

Medical Insurance 2,880 - - 33,600

Materials and Supplies 15 - - -

Kiwanis Fireworks - - - 20,000

Code Supplements 7,489 20,000 20,000 20,000

Flex Benefits Plan 35,885 50,000 50,000 50,000

Refund Prior Year Revenue 7,380 - - -

Campus Theatre Utilities 104,554 55,000 55,000 105,000 Fuel Contigency - - - 250,000 Council Intiatives - 283,676 - -

Dues and Publications 55,955 54,563 54,563 54,563

Miscellaneous 31,371 200,000 200,000 200,000

Special Services 175,521 171,000 171,000 188,100

Bad Debt 596 - - -

Miscellaneous - 112,503 112,503 109,108

Collection Expense - 14,205 14,205 500

Engineering Transfer 601,033 620,000 620,000 620,000

Transfer to Capital Projects 30,000 - - -

Transfer to Electric - - - 113,089

Transfer to Water Shed Protection 106,090 106,090 106,090 269,962

Transfer to Water Fund - 7,000 7,000 239,698

Transfer to Solid Waste - - - 7,966

Transfer to Material Mgmt 194,230 252,206 252,206 448,590

Transfer to Street Improvement - 921,779 921,779 - Transfer to Airport 38,875 - - -

Transfer to Utility Admin 17,839 23,900 23,900 - Transfer To Customer Service 82,575 85,591 85,591 85,591



NON-DEPARTMENTAL



Ge

ne

ral D

eb

t Se

rvice

Fu

nd

The General Debt Service Fund accumulates and makes payments of principal and interest on long-term debt secured by the general taxing powers pertaining to the City’s jurisdiction. Resources include an applicable portion of the Ad Valorem Tax Levy and related interest income, as well as transfers from internal service funds for their portion of the debt service payment.

DEBT MANAGEMENT SUMMARY

A. Debt Issuance. The City will issue debt primarily for the purpose of acquiring or constructing capital

assets for the general benefit of its citizens and to allow it to fulfill its various missions as a city. Debt may be issued for the purposes of purchasing land or rights-of-way and/or improvements to land, for construction projects to provide for the general good, or for capital equipment.

B. Types of Debt.

1. General Obligation Bonds (GOs). General Obligation Bonds will be used only to fund capital assets of the general government and are backed by the full faith and credit of the City and its ad valorem tax authority. They are not to be used to fund operating needs of the City. General Obligation Bonds must be authorized by a vote of the citizens of the City of Denton.

2. Revenue Bonds (RBs). Revenue Bonds will be issued to provide for the capital needs of any activities where the capital requirements are necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonably be expected to provide for an income stream to fund the debt service requirements. Prior to FY 2009-10 the City of Denton issued utility system revenue bonds for all utility financing needs. Beginning in June 2010, management elected to discontinue this practice in favor of issuing Certificates of Obligation. The purpose of this change is to take advantage of interest savings associated with the higher AA bond rating for COs.

3. Certificates of Obligation (COs). Certificates of Obligation may be issued to:

Finance permanent improvements and land acquisition, the need for which arose

between bond elections;

Finance costs associated with capital project overruns;

Acquire equipment/vehicles;

Leverage grant funding;

Renovate, acquire, construct facilities and facility improvements;

Construct street improvements;

Provide funding for master plans/studies; or

Address necessary life safety needs.

In accordance with state law, an ordinance authorizing publication of notice of intent to issue Certificates of Obligation shall be presented for the consideration of the City Council. The notice of intent shall be published in a newspaper of general circulation in the City once a week for two consecutive weeks with the first publication to be at least fifteen (15) days prior to the sale date.

Certificates of Obligation may be backed by a tax pledge under certain circumstances as defined by law. They may also be backed by a combination of tax and revenue pledge eligible under state law.

GENERAL DEBT SERVICE FUND 2012-13



Some revenues are restricted as to the uses for which they may be pledged. Electric, Water,

Wastewater, and Solid Waste revenues may be pledged without limit for Electric, Water, Wastewater, and Solid Waste purposes but may only be pledged up to $10,000 for non-utility system purposes.

The life of the obligation will not exceed the estimated useful life of the projects financed.

4. Method of Sale. The City will use a competitive bidding process in the sale of bonds unless the nature of the issue warrants a negotiated sale. In situations where a competitive bidding process is not elected, the City will present the reasons why, and will actively participate with the financial advisor in the selection of the underwriter or direct purchaser.

5. Bidding Parameters. The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of the existing market conditions and other prevailing factors. Parameters to be examined include:

• Limits between lowest and highest coupons; • Coupon requirements relative to the yield curve; • Method of underwriter compensation, discount or premium coupons; • Use of true interest cost (TIC) versus net interest cost (NIC); • Use of bond insurance; • Deep discount bonds; and • Call provisions. C. Analysis of Financing Alternatives. Staff will explore alternatives to the issuance of debt for capital

acquisitions and construction projects. These alternatives will include, but not be limited to: 1) grants in aid, 2) use of reserves, 3) use of current revenues, 4) contributions from developers and others, 5) leases, and 6) impact fees.

D. Disclosure. Full disclosure of operations will be made to the bond rating agencies and other depositories of financial information including the Electronic Municipal Market Access (EMMA) System, as well as the Texas Municipal Advisory Council (State Information Depository) as required by the Securities and Exchange Commission (SEC) Rule 15c2-12.

E. Rating Agency Communication. The City staff will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit preserved. The City staff, with the assistance of financial advisors and bond counsel, will prepare the necessary materials for presentation to the rating agencies, will aid in the production of Official Statements, and will take responsibility for the accuracy of all financial information released.

F. Federal Requirements. The City will maintain procedures to comply with arbitrage rebate and other federal requirements.

G. Debt Limit. The State of Texas limits the ad valorem tax rate to $2.50 per $100 valuation. Denton's adopted rate of $0.68975 per $100 valuation falls well below this limit.

H. Bond Ratings. Denton's bonds currently have the following ratings:

Moody’s Standard & Poor’s Fitch

General Obligation Bonds Aa2 AA AA+

Revenue Bonds A1 AA- Not Rated

These ratings directly affect the cost of debt. The City's policies are focused on issues which maintain high bond ratings and keep debt costs reasonable.



AD VALOREM TAX DISTRIBUTION

BETWEEN DEBT SERVICE AND OPERATIONS AND MAINTENANCE

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

Mill

ion

s

Operations & Maintenance Debt Service





2012-13

2010-11 2011-12 2011-12 2012-13


Ad Valorem Taxes 13,783,518$ 14,029,730$ 14,118,000$ 14,678,435$

Delinquent - Ad Valorem Taxes 124,440 137,079 110,255 137,079

Interest Income 35,231 50,000 40,000 50,000

Transfer In - Drainage 556,244 920,802 920,802 464,419

Transfer In - Solid Waste 3,645,631 4,529,003 4,520,549 5,378,055

Transfer In - Fleet 265,376 258,558 257,029 255,024

Transfer In - Materials Mgmt 48,354 48,692 44,028 45,287

Transfer In - Technology 645,476 546,746 546,746 137,700

Transfer In - Communication 31,638 35,413 35,413 34,213

Transfer In - Airport 224,815 219,455 211,496 226,648

Transfer In - Electric 7,996,977 11,089,039 11,187,689 12,362,406

Transfer In - Water 2,845,849 4,921,916 4,926,722 3,742,450

Transfer In - Wastewater 1,082,362 2,788,602 2,322,020 2,950,492

TOTAL REVENUES 31,285,911 39,575,035 39,240,749 40,462,208

Use of Reserves 75,455 - - -

TOTAL RESOURCES 31,361,366$ 39,575,035$ 39,240,749$ 40,462,208$

2010-11 2011-12 2011-12 2012-13


General Debt Service 14,945,663$ 14,536,443$ 14,407,231$ 14,722,242$

Drainage Debt Service 556,244 541,225 541,225 617,774

Solid Waste Debt Service 3,645,631 4,529,003 4,520,549 5,378,055

Materials Mgmt Debt Service 48,354 48,692 44,028 45,287

Airport Debt Service 224,815 219,455 211,496 226,648

Electric Debt Service 7,996,977 11,089,039 11,089,039 12,362,406

Water Debt Service 2,845,849 4,921,916 4,921,916 3,742,450

Wastewater Debt Service 1,082,362 3,168,179 3,168,179 2,797,137

Fiscal Charges 15,471 22,000 22,000 22,000




General Debt General Debt

Year Principal Interest Total

2012-13 24,835,000$ 14,956,999$ 39,791,999$

2013-14 24,670,000 13,671,520 38,341,520

2014-15 27,070,000 12,741,310 39,811,310

2015-16 26,050,000 11,720,073 37,770,073

2016-17 24,935,000 10,642,691 35,577,691

2017-18 23,565,000 9,559,908 33,124,908

2018-19 23,515,000 8,491,755 32,006,755

2019-20 23,820,000 7,399,631 31,219,631

2020-21 24,210,000 6,287,065 30,497,065

2021-22 23,660,000 5,186,031 28,846,031

2022-23 18,935,000 4,227,620 23,162,620

2023-24 16,710,000 3,446,634 20,156,634

2024-25 16,555,000 2,737,264 19,292,264

2025-26 10,945,000 2,172,546 13,117,546

2026-27 10,635,000 1,731,720 12,366,720

2027-28 9,460,000 1,307,618 10,767,618

2028-29 8,505,000 912,565 9,417,565

2029-30 8,930,000 525,354 9,455,354

2030-31 4,730,000 212,313 4,942,313

2031-32 2,805,000 49,088 2,854,088

TOTAL 354,540,000$ 117,979,705$ 472,519,705$

GENERAL LONG-TERM DEBT

PRINCIPAL & INTEREST REQUIREMENTS

AS OF OCTOBER 1, 2012




PRINCIPAL/INTEREST DEBT REQUIREMENTS

2012-2032

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

'13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32

INTEREST PRINCIPAL



GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT

PRINCIPAL & INTEREST REQUIREMENTS PRINCIPAL & INTEREST REQUIREMENTS

2012-13 2012-13

Issue Issue Date Final Maturity Coupon Rate*

2003 General Obligation Ref & Imp 03-14-03 02-15-2023 3.00 to 4.75

2003 Certificates of Obligation 03-14-03 02-15-2023 2.10 to 5.07

2004 General Obligation Refunding 12-10-04 02-15-2020 2.50 to 5.00


2005 General Obligation 05-25-05 02-15-2025 3.00 to 5.00






2007A General Obligation Refunding 09-17-07 02-15-2022 4.00 to 5.00

2007A Certificates of Obligation 10-01-07 02-15-2027 4.00 to 5.00




2010 Combination Tax & Revenue Refunding** 03-02-10 02-15-2025 2.00 to 5.00

2010 Certificates of Obligation** 06-15-10 02-15-2030 2.00 to 5.00


2010A General Obligation Refunding** 07-28-10 02-15-2014 3.00 to 5.00

2011 General Obligation Refunding & Improvement** 04-01-11 02-15-2031 2.00 to 4.75


2012 General Obligation Refunding & Improvement** 04-15-12 02-15-2032 2.00 to 5.00


* Actual yields on bonds may differ from stated coupons.

** Includes Utility System debt previously sold as Utility System Revenue Bonds.



GENERAL LONG-TERM DEBT


2012-13

Original Amount Net Amount Principal & Interest Requirements for 2012-13

Amount of Refunded Outstanding

of Issue Issues 10/01/12 Principal Interest TOTAL

8,080,000$ 5,965,000$ 720,000$ 300,000$ 24,637$ 324,637$

7,405,000 5,630,000 750,000 400,000 23,575 423,575

9,410,000 9,410,000 4,965,000 805,000 216,856 1,021,856

14,000,000 5,610,000 1,255,000 615,000 41,068 656,068

5,000,000 5,000,000 3,780,000 220,000 156,700 376,700

7,145,000 7,145,000 3,630,000 215,000 146,193 361,193

3,695,000 3,695,000 2,935,000 150,000 136,950 286,950

12,665,000 12,665,000 6,250,000 805,000 260,521 1,065,521

15,925,000 15,925,000 13,205,000 625,000 620,975 1,245,975

11,445,000 11,445,000 6,045,000 495,000 271,243 766,243

28,270,000 28,270,000 27,000,000 1,335,000 1,166,775 2,501,775

7,065,000 7,065,000 6,135,000 260,000 268,085 528,085

7,300,000 7,300,000 6,340,000 270,000 278,433 548,433

10,685,000 10,685,000 6,475,000 1,180,000 234,531 1,414,531

7,525,000 7,525,000 1,910,000 625,000 51,488 676,488

58,820,000 58,820,000 53,625,000 3,210,000 2,244,038 5,454,038

61,085,000 61,085,000 55,810,000 3,155,000 2,337,344 5,492,344

4,115,000 4,115,000 3,870,000 145,000 153,114 298,114

39,165,000 39,165,000 34,210,000 4,675,000 1,559,525 6,234,525

10,845,000 10,845,000 6,790,000 550,000 203,275 753,275

32,100,000 32,100,000 30,575,000 2,195,000 1,067,388 3,262,388

33,590,000 33,590,000 33,590,000 160,000 1,387,413 1,547,413

44,675,000 44,675,000 44,675,000 2,445,000 2,106,872 4,551,872

TOTAL 354,540,000$ 24,835,000$ 14,956,999$ 39,791,999$



Ele

ctric Fu

nd

CITY OF DENTON ELECTRIC UTILITIES

Administration

Wholesale Power

Power Supply Administration

Customer Accounts

Safety and Training

Operations & Maintenance

Distribution

System Operations

Substations

Engineering

Electric Communications

Metering Operations

General Operations Administration

Electric Operations

Utility Fund

Program Description

The Electric Department provides competitive and reliable electric service for the ratepayers of Denton

Municipal Electric. The departments include Power Supply Administration, Electric Wholesale Power, Electric

Operations & Maintenance, Electric Systems Operations, Electric Distribution, Electric Substations,

Engineering, Electric Metering, and Electric Communications.


Maintain competitive position with other adjoining electric utilities while ensuring the electric system has the capability to provide reliable electric service for all present and future customers.

Ensure the safety of DME employees and the general public.

Manage DME infrastructure needs to meet future growth and development plans.

Ensure DME is compliant with state and federal regulations.


Completed construction and placed in service Bonnie Brea Substation & Distribution Exit Feeders, Ryan Road Feeder Extension, and Jim Christal Road Double Circuit Rebuild in order to ensure the electric system has capability to provide reliable electric service for all persent and future customers.

Worked with UNT and completed tie into electric system of three wind generators.

Completed construction on and moved into new state-of-the-art System Operations/Engineering Center which will improve operational efficiencies and reliability of electric system.

Completed detailed engineering study of the electric system, which identified areas that need redesign or improvement. Management updated the DME CIP to reflect these needs in order to meet growth and development plans.

Formed Regional Planning Group with TMPA, Oncor, Brazos Electric Cooperative, and Garland Power

& Light to analyze and evaluate future power flows into the electric system which will improve system efficiencies and operations.

Utilities – Electric Fund

Denton Municipal Electric


KFA 2: Public Infrastructure KFA 3: Sustainable Economic Development & Environmental Stewardship



2010-11 2011-12 2011-12 2012-13


Operating Revenues 131,135,037$ 139,711,427$ 130,841,111$ 142,248,302$

Non-Operating Revenues 662,023 2,316,241 486,817 492,999

TOTAL REVENUES 131,797,060 142,027,668 131,327,928 142,741,301

Use of Reserves - - 292,950 16,246,224

TOTAL RESOURCES 131,797,060$ 142,027,668$ 131,620,878$ 158,987,525$

2010-11 2011-12 2011-12 2012-13


Fuel & Purchased Power 74,761,817$ 84,405,872$ 76,922,163$ 100,928,672$

Operation & Maintenance 20,531,628 22,302,358 26,541,468 25,890,126

Return on Investment 4,279,610 4,245,968 4,235,989 4,303,400

Franchise Fee 6,121,943 6,065,668 6,051,412 6,147,714

Non-Operating Expenditures 16,625,217 23,371,237 17,869,846 21,717,613


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 129.50 131.50 131.50 143.00

ELECTRIC FUND


The format of this budget is being used to provide financial information in a manner that is commensurate to what is

publicly available from the other municipal utilities and investor-owned utilities operating in Texas.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects no base rate increase. The budget reflects

the addition of 11.5 FTEs, including 6 FTEs for an enhanced

Capital Improvement Program (CIP) as discussed in the Budget

Overview section of this document.

The budget reflects no base rate increase. The budget reflects

the addition of 2 FTEs for NERC (North American Electric

Reliability Corporation) Compliance and analytical support.

2012-13



RESOURCES

$158,987,525

Operating RevenuesNon-Operating RevenuesUse of Reserves

EXPENDITURES

$158,987,525

ELECTRIC FUND RESOURCES & EXPENDITURES

Franchise Fee 3.87%

Fuel & Purchased Power

63.48%

Operation & Maintenance

16.28%

Return on Investment 2.71%

Non-Operating Expenditures

13.66%

Operating Revenues 89.47%

Non-Operating Revenues

0.31%




Wa

ter F

un

d

CITY OF DENTON WATER UTILITIES

Administration

Utilities Administration

Production

Distribution

Metering

Engineering

Public Works Inspection

Laboratory

Customer Service

Water Operations

Utility Fund


Program Description

The primary function of the Water Utility is to produce, distribute, and meter potable water for the City of

Denton. The treated water must meet or exceed all state and federal regulations. Other responsibilities

include water system capital improvement planning, development coordination and liaison with local, state,

and federal regulatory authorities. This Fund also includes Utilities Administration, Engineering, Public

Works Inspection and Customer Service divisions.


Begin design and construction of 2.5 million gallon elevated storage tank to serve the Southwest

Upper Pressure Zone (Robson Ranch).

Begin design and construction of the North-South Water Transmission Line Phase II to expand water

service delivery capacity for the southwest portion of the city.

Continued construction on the Lake Lewisville Water Treatment Plant Rehabilitation and Upgrade

Project.


Completed 3 million gallon elevated storage tank located off of Roselawn Drive in south central

Denton.

Continued construction on the Lake Lewisville Water Treatment Plant Rehabilitation and Upgrade Project.

Completed fiscal year expenses under budget.

Projected to complete fiscal year without restrictions or curtailments to Water Customers.

Utility Services

Water





WATER FUND


2010-11 2011-12 2011-12 2012-13


Interest Operating 53,986$ 144,894$ 61,000$ 233,000$

Water Sales Residential 14,918,441 14,685,599 14,858,735 16,277,324

Water Sales Commercial 12,762,906 13,612,870 13,789,106 14,869,171

Water for Resale 1,617,352 638,723 676,525 677,760

Other Water 870,770 884,863 685,002 748,882

Public Works Fees & Permits 433,364 392,000 424,097 482,000

Engineering Fees & Permits 10,287 11,000 10,730 12,616

Engineering Charges 2,121,979 1,928,883 1,881,706 2,212,374

Public Works Charges 211,825 261,636 227,860 285,243

Cost of Service - General Fund 105,638 112,552 107,318 332,289

Cost of Service - Electric 2,165,760 2,423,823 2,353,682 2,512,886

Cost of Service - Wastewater 702,200 852,689 807,459 877,788

Cost of Service - Solid Waste 681,154 800,205 768,148 817,243 Other Transfers - - - 26,021 Impact Fee Revenues 3,300,000 1,900,000 1,900,000 2,600,000

TOTAL REVENUES 39,955,662$ 38,649,737$ 38,551,368$ 42,964,597$

Use of Reserves - 90,693 - 903,333

TOTAL RESOURCES 39,955,662$ 38,740,430$ 38,551,368$ 43,867,930$

2010-11 2011-12 2011-12 2012-13


Water Administration 1,039,329$ 1,685,675$ 1,471,241$ 1,642,231$

Water Production 5,185,230 6,001,290 5,528,167 6,678,873

Water Distribution 4,004,147 4,334,444 4,393,574 6,861,572

Water Metering 1,524,275 1,860,566 1,824,204 1,856,095

Water Engineering 1,882,856 1,939,883 1,892,436 2,224,990

Public Works Inspections 636,648 653,636 651,957 767,243

Water Laboratory 374,601 400,698 400,319 433,805

Utilities Administration 722,500 981,485 881,485 1,053,872

Customer Service 3,788,817 4,148,203 4,048,137 4,375,085

Miscellaneous 16,451,962 16,734,550 16,741,857 17,974,164


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Water Administration 9.00 9.50 9.50 9.50

Water Production 31.00 31.00 31.00 33.00

Water Distribution 22.00 22.00 22.00 22.00

Water Metering 14.00 14.00 14.00 14.00

Water Engineering 21.50 21.50 21.50 21.50

Public Works Inspections 9.50 9.50 9.50 9.50

Water Laboratory 4.00 4.00 4.00 4.00

Utilities Administration 7.00 7.00 7.00 8.00

Customer Service 39.50 39.50 39.50 39.50

TOTAL PERSONNEL 157.50 158.00 158.00 161.00

2012-13



RESOURCES

EXPENDITURES

$43,867,930

$43,867,930

WATER FUND RESOURCES & EXPENDITURES

Purchased Power 3.64%




Return on Investment 2.60%

Franchise Fee 3.69%

Miscellaneous 0.69%

Operations 5.99%

Debt Service 30.15%

Cost of Service Transfers 7.92%

Fixed Assets 0.10%

Transfer to Capital Projects 13.29%

Interest Operating 0.53%

Water Sales Residential 37.10%

Water Sales Commercial 33.90%

Water for Resale 1.55%

Other Water 1.71%

Public Works Fees & Permits 1.10%

Engineering Fees & Permits 0.03%

Engineering Charges 5.04%

Public Works Charges 0.65%

Cost of Service

Transfers 10.34%

Other Transfers 0.06%

Impact Fee Revenues

5.93%




WATER FUNDEXPENDITURES BY CLASSIFICATION

2012-13

2010-11 2011-12 2011-12 2012-13


Purchased Power 1,148,199$ 1,435,800$ 1,270,000$ 1,504,000$

Purchased Water 85,676 91,500 86,339 91,500

Personal Services 9,526,841 10,526,963 10,024,524 11,049,920

Materials & Supplies 1,427,142 1,646,106 1,473,400 1,694,929

Maintenance & Repair 729,862 1,214,507 1,177,754 1,243,446

Insurance 201,425 197,382 197,728 203,693

Return on Investment 1,006,720 1,043,772 1,050,328 1,140,060

Franchise Fee 1,438,172 1,480,717 1,490,083 1,618,168

Miscellaneous 73,329 94,435 91,488 99,548

Operations 1,682,567 2,518,593 2,493,970 2,624,276

Fixed Assets - 10,000 - 42,000

Debt Service 12,311,136 12,371,898 12,364,199 13,209,294

Cost of Service - General Fund 1,355,136 1,355,593 1,355,593 1,631,715

Cost of Service - Electric Fund 565,748 653,820 653,820 587,374 Cost of Service - Other - 43,379 40,716 52,863

Cost of Service - Wastewater 116,815 120,319 120,319 123,929

Cost of Service - Fleet Services 25,272 26,832 26,832 26,208

Cost of Service - Technology 668,887 778,407 778,407 844,154

Cost of Service- Safety & Training 85,273 87,184 87,184 88,965

Cost of Service - Materials Mgmt 70,648 72,767 72,767 167,601

Transfer to Capital Projects 3,091,517 2,970,456 2,977,926 5,824,287


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13A 9.5% rate increase for water customers is included in the budget.

The budget reflects a 0.5 FTE increase in the Water Administration

division, and the decrease of 1 FTE in the Customer Service division,

for a net decrease of 0.5 FTE.

An 8.0% rate increase for water customers is included in the

budget. The budget reflects the addition of 3 FTEs: 1 FTE for a

Sustainability Coordinator in Utility Administration; 1 FTE for a

Senior Engineer in Water Production; and 1 FTE for an Operator

I in Water Production.



WATER UTILITIES



YEAR PRINCIPAL INTEREST TOTAL

2012-13 7,465,000$ 5,744,294$ 13,209,294$

2013-14 7,860,000 5,339,256 13,199,256

2014-15 8,210,000 4,968,175 13,178,175

2015-16 8,545,000 4,573,987 13,118,987

2016-17 8,965,000 4,150,568 13,115,568

2017-18 9,275,000 3,709,968 12,984,968

2018-19 9,745,000 3,256,987 13,001,987

2019-20 10,210,000 2,791,406 13,001,406

2020-21 8,850,000 2,344,160 11,194,160

2021-22 7,755,000 1,940,806 9,695,806

2022-23 5,810,000 1,615,153 7,425,153

2023-24 6,140,000 1,338,260 7,478,260

2024-25 6,440,000 1,050,441 7,490,441

2025-26 4,285,000 814,281 5,099,281

2026-27 4,475,000 631,141 5,106,141

2027-28 3,920,000 453,176 4,373,176

2028-29 3,775,000 287,344 4,062,344

2029-30 3,955,000 121,338 4,076,338

2030-31 420,000 25,900 445,900

2031-32 440,000 7,700 447,700

TOTAL 126,540,000$ 45,164,341$ 171,704,341$

Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds.



WATER UTILITIES WATER UTILITIES


BY ISSUE BY ISSUE

2012-13 2012-13

Final Coupon

Issue Issue Date Maturity Rate*

2002A Utility System Revenue 03-28-02 12-01-2021 4.25 to 5.25

2003 Utility System Revenue & Refunding 03-28-03 12-01-2022 3.62 to 5.62

2004 Utility System Refunding 09-07-04 12-01-2024 2.00 to 5.25




2008 Utility System Revenue 08-19-08 12-01-2028 3.50 to 5.00



2011 General Obligation Refunding & Improvement 04-01-11 02-15-2021 2.00 to 4.75




Capital Improvements in the Utility System are partially funded through the sale of bonds.

The debt above represents consolidation of prior issues and funding for future growth.

The Utility System - Electric, Water, and Wastewater - is currently expanding to

accommodate the needs of the community and surrounding area which are

also dependent upon the system.



WATER UTILITIES


BY ISSUE

2012-13

Original Amount Principal & Interest Requirements for 2012-13

Amount of Outstanding

Issue 10/1/2012 Principal Interest Total

31,030,000 1,495,000 1,495,000 39,244 1,534,244

5,845,000 100,000 50,000 2,781 52,781

23,985,000 22,840,000 1,285,000 1,122,525 2,407,525

27,215,000 26,135,000 1,090,000 1,266,188 2,356,188

26,730,000 26,290,000 985,000 1,086,944 2,071,944

9,690,000 8,005,000 375,000 360,550 735,550

4,205,000 3,595,000 155,000 153,613 308,613

12,585,000 11,855,000 465,000 500,313 965,313

20,030,000 17,825,000 1,210,000 840,850 2,050,850

3,780,000 1,985,000 205,000 52,562 257,562

490,000 490,000 - 21,100 21,100

5,925,000 5,925,000 150,000 297,624 447,624

TOTAL 7,465,000$ 5,744,294$ 13,209,294$



Wa

stew

ate

r Fu

nd

CITY OF DENTON WASTEWATER UTILITIES

Administration

Water Reclamation

Collection

Beneficial Reuse

Laboratory

Industrial Pretreatment

Drainage

Watershed Protection

Wastewater Operations

Utility Fund


Program Description

The Wastewater Fund provides the citizens of Denton a safe and environmentally responsible means of

recycling wastewater. This service includes divisions of Wastewater Collection, Water Reclamation,

Laboratory, Pretreatment, effluent reuse program and composting operation. Other responsibilities include

wastewater system capital improvement planning, grant administration, and financial reporting. This Fund

also includes drainage operations and maintenance, street sweeping, floodplain management, drainage

engineering and watershed protection management.


Anticipate completion of Pecan Creek Interceptor Phase II project which will replace sewer from Oakland Street and Congress Street to Sycamore Street and Crawford Street.

Expected to finalize option for Graveyard Branch Lift Station and Force Main project, which will create storage basin and a smaller lift station and force main to serve the Hickory Creek Basin.

Anticipate design completion of the Co-digestion project to generate electricity from food waste and grease at the Pecan Creek Water Reclamation Plant.

Prior Year Accomplishments in FY 2011-12 Implementation of a Fats, Oils and Grease (FOG) program to increase the quality of the wastewater

collection system.

Completion of the 319 Grant funding which established the Storm Water Quality Best Management Practices at Cross Timbers Park and South Lakes Park, promoting water quality in the entire Lake Lewisville Watershed.

Completion of Pecan Creek Interceptor Phase I project which included replacement of sewer from Crawford Street and Sycamore Street to east of Woodrow Lane.

Conclusion of West Prairie Drainage Channel project installing a box culvert storm drain on West Prairie Street.

Utility Services

Wastewater






WASTEWATER FUND


2010-11 2011-12 2011-12 2012-13


Interest Operating 48,228$ 122,589$ 48,600$ 192,000$

Wastewater Residential 7,699,649 8,908,366 8,391,299 9,311,742

Wastewater Commercial 8,221,608 9,041,594 9,469,922 10,546,220

Wastewater Effluent Irrigation 100,254 143,353 113,140 126,640

Wastewater Wholesale 466,562 482,961 516,173 522,519

Other Wastewater 1,148,607 1,042,235 1,038,000 1,282,890

Drainage Fees 4,148,300 4,134,357 4,189,783 4,275,310

Transfer in - General Fund - - - 269,962

Transfer In - Other 222,905 229,592 229,592 149,179

Impact Fee Revenues 1,400,000 1,000,000 1,000,000 1,100,000

TOTAL REVENUES 23,456,113$ 25,105,047$ 24,996,509$ 27,776,462$

Use of Reserves - - - 475,945

TOTAL RESOURCES 23,456,113$ 25,105,047$ 24,996,509$ 28,252,407$

2010-11 2011-12 2011-12 2012-13


Wastewater Administration 965,937$ 1,210,001$ 1,175,020$ 1,309,405$

Water Reclamation 3,410,620 3,839,274 3,751,055 4,146,261

Wastewater Collection 3,485,402 4,324,789 4,359,899 5,960,366

Beneficial Reuse 986,846 1,214,399 1,167,794 1,398,341

Wastewater Laboratory 455,354 536,020 519,786 534,601

Industrial Pretreatment 521,830 597,786 528,350 753,424

Drainage 2,204,853 2,129,640 2,059,947 2,536,355

Watershed Protection 570,752 573,356 574,001 641,116

Drainage Miscellaneous 1,585,790 1,580,915 1,556,867 1,433,616

Miscellaneous 8,371,988 8,795,388 8,669,389 9,538,922


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Wastewater Administration 8.50 10.00 10.00 10.00

Water Reclamation 21.00 21.00 21.00 22.00

Wastewater Collection 22.00 24.00 24.00 24.00

Beneficial Reuse 6.75 6.75 6.75 6.75

Wastewater Laboratory 4.00 4.00 4.00 4.00

Industrial Pretreatment 5.50 6.00 6.00 7.50

Drainage 16.00 16.00 16.00 16.00

Watershed Protection 4.62 4.62 4.62 5.00

TOTAL PERSONNEL 88.37 92.37 92.37 95.25

2012-13



RESOURCES

$28,252,407

EXPENDITURES

$28,252,407

WASTEWATER FUND RESOURCES & EXPENDITURES

Interest Operating 0.68%

Wastewater Residential 32.96%

Wastewater Commercial 37.33%

Wastewater Effluent Irrigation

0.45%

Wastewater Wholesale 1.85%

Other Wastewater 4.54%

Drainage Fees 15.13%

Transfer in - General Fund

0.96%

Transfer In - Other 0.53%

Impact Fee Revenues 3.89%

Use of Reserves

1.68%

Purchased Power 2.91%




Insurance 0.48%

Miscellaneous 0.16%

Operations 8.20% Return on Investment

2.70%

Franchise Fee 3.86%

Debt Service 23.90%

Cost of Service Transfers 9.91%

Fixed Assets 0.04%

Transfer for Capital Projects 15.60%



WASTEWATER FUND

EXPENDITURES BY CLASSIFICATION2012-13

2010-11 2011-12 2011-12 2012-13


Purchased Power 770,382$ 820,000$ 770,000$ 821,000$

Personal Services 5,514,164 6,526,499 6,261,882 6,910,361


Maintenance & Repair 848,277 1,266,124 1,251,768 1,287,347

Insurance 113,173 102,253 102,253 135,833

Miscellaneous 37,427 43,944 32,387 44,381

Operations 1,836,519 2,040,350 2,112,034 2,315,667

Return on Investment 600,331 686,648 683,499 762,650

Franchise Fee 857,616 980,925 976,427 1,089,501

Debt Service 6,572,479 5,756,369 6,553,689 6,751,660

General Obligation Debt Service - 920,802 - -





Transfer to Electric Fund 254,789 267,556 267,556 276,335

Transfer to Street Fund - 15,016 41,328 95,975

Cost of Service - Utilities Admin 232,269 316,651 284,389 275,742

Cost of Service-Customer Service 469,931 536,038 523,070 566,586

Cost of Service-Safety & Training 85,273 87,184 87,184 90,355

Cost of Service- Water - - - 35,460

Fixed Assets 47,491 71,500 - 10,000

Transfer for Capital Projects 2,697,177 2,421,216 2,508,016 4,413,213


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The Wastewater budget reflects a 9.0% increase in rates. The

budget reflects the addition of 2.88 FTEs in the Wastewater

budget: 1 FTE for a WW utility electrician II in Water

Reclamation; 0.5 FTE for an environmental monitoring tech in

Industrial Pretreatment; 1 FTE for a transportation permit

specialist in Industrial Pretreatment; and 0.38 FTE for a

Watershed Protection intern in Watershed Protection.

The Wastewater budget reflects the addition of 3.5 FTEs to

address regulatory compliance. An additional 0.5 FTE is included

for a one half of a Water/ Wastewater coordinator position. The

Wastewater budget reflects an 11.0% increase in rates.



DRAINAGE (1)


2012-13

2010-11 2011-12 2011-12 2012-13


Interest Operating -$ 40,000$ -$ -$

Drainage Fees 4,148,300 4,060,917 4,189,783 4,275,310

Wastewater Resources 59,769 59,769 61,562 65,815

General Government Resources 106,090 106,090 109,273 269,962

TOTAL RESOURCES 4,314,159$ 4,266,776$ 4,360,618$ 4,611,087$

2010-11 2011-12 2011-12 2012-13


Drainage 2,204,853$ 2,129,640$ 2,059,947$ 2,536,355$

Watershed Protection 570,752 573,356 574,001 641,116

Drainage Miscellaneous 1,585,791 1,580,915 1,556,867 1,433,616


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Drainage 16.00 16.00 16.00 16.00

Watershed Protection 4.62 4.62 4.62 5.00

TOTAL PERSONNEL 20.62 20.62 20.62 21.00

2010-11 2011-12 2011-12 2012-13





Insurance 18,413 17,908 17,908 19,891

Miscellaneous 2,083 2,740 2,234 2,750

Operations 525,539 451,940 490,863 566,258

Debt Service 729,991 316,802 292,049 370,657

General Obligation Debt Service 556,244 920,802 930,083 617,774


Cost of Service - Fleet Services 9,672 9,984 984 9,984



Cost of Service - Utilities Admin 39,671 52,254 46,930 81,866

Cost of Service-Customer Service 109,601 133,720 130,468 151,378

Cost of Service-Safety & Training 10,233 10,462 10,462 13,901

Transfer for Capital Projects 1,028,332 389,766 389,766 651,141


(1) NOTE: The Drainage operation is a component of the Wastewater Fund.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The Drainage budget reflects no major changesThe Drainage budget reflects no major changes.



WASTEWATER UTILITIES




2012-13 4,574,368$ 2,177,293$ 6,751,661$

2013-14 4,764,652 1,912,655 6,677,307

2014-15 4,485,000 1,718,431 6,203,431

2015-16 4,500,000 1,522,857 6,022,857

2016-17 4,475,000 1,315,256 5,790,256

2017-18 4,465,000 1,107,962 5,572,962

2018-19 4,320,000 906,462 5,226,462

2019-20 4,525,000 702,781 5,227,781

2020-21 3,215,000 525,819 3,740,819

2021-22 2,695,000 387,144 3,082,144

2022-23 1,620,000 281,519 1,901,519

2023-24 605,000 228,269 833,269

2024-25 630,000 203,644 833,644

2025-26 660,000 181,669 841,669

2026-27 685,000 158,468 843,468

2027-28 715,000 130,144 845,144

2028-29 760,000 96,169 856,169

2029-30 795,000 60,159 855,159

2030-31 485,000 29,625 514,625

2031-32 500,000 8,750 508,750

TOTAL 49,474,020$ 13,655,075$ 63,129,095$

Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds for Wastewater

and Drainage.



WASTEWATER UTILITIES WASTEWATER UTILITIES


BY ISSUE BY ISSUE

2012-13 2012-13

Final Coupon

Issue Issue Date Maturity Rate *


2003 Utility System Refunding & Revenue 03-28-03 12-01-2022 3.62 to 5.62


2004 General Obligation Refunding (1) 12-07-04 02-15-2017 2.50 to 5.00



2007A General Obligation Refunding (1) 09-15-07 02-15-2018 4.00 to 5.25

2009 General Obligation Refunding (1) 05-05-09 02-15-2016 3.00 to 5.00







* Actual yields on bonds may differ from stated coupons. (1) Includes Drainage funds

Capital Improvements in the Utility System are partially funded through the sale of bonds. The

debt above represents consolidation of prior issues and funding for future growth.

The Utility System - Electric, Water, and Wastewater - is currently expanding to accommodate the

needs of the community and surrounding area which are also dependent upon the system.



WASTEWATER UTILITIES


BY ISSUE

2012-13




17,120,000 825,000 825,000 21,656 846,656

18,151,142 1,524,020 739,368 42,826 782,194

865,000 630,000 315,000 22,050 337,050

730,000 260,000 45,000 11,256 56,256

10,165,000 9,930,000 190,000 491,750 681,750

5,030,000 4,940,000 490,000 199,100 689,100

1,235,000 1,025,000 175,000 38,338 213,338

1,405,000 550,000 180,000 14,825 194,825

4,355,000 4,105,000 160,000 173,319 333,319

11,185,000 9,915,000 1,060,000 458,750 1,518,750

500,000 415,000 100,000 7,300 107,300

1,735,000 555,000 60,000 14,288 74,288

7,635,000 7,635,000 - 327,700 327,700

7,165,000 7,165,000 235,000 354,135 589,135

TOTAL 4,574,368$ 2,177,293$ 6,751,661$



So

lid W

aste

Fu

nd

CITY OF DENTON SOLID WASTE FUND

Administration

Residential Collection

Commercial Collection

Landfill

Recycling

Construction and Demolition

Keep Denton Beautiful

Solid Waste Operations

Utility Fund


Program Description

The Solid Waste Department provides dependable and efficient municipal solid waste (MSW) and recycling

collection, processing and disposal services to the City of Denton. The Residential Collection Services Division

services include refuse collection, yard waste and brush collection, curbside recycling collection, home

chemical collections, large household waste items collection, special collection for mobility impaired

customers, drop-off recycling collections centers, and electronics recycling service. Commercial Collection

Services Division offers a variety of volume-based services to our commercial business, institutional, and

industrial customers providing commercial customers refuse container collection, recycling container

collection, construction & demolition waste collection and drop-off recycling collections centers. The

Disposal and Processing Division provides landfill disposal and special waste stream processing operations to

support the community’s needs.


Expand commercial and multi-family recycling to move toward the 40% waste diversion goal set by

City Council.

Internalize the residential curbside recycling collection program at the completion of the current

agreement with our current contractor.

Initiate and complete the excavation phase of the next landfill cell construction project.


The Solid Waste Department began providing food waste (organics) recycling and processing

services working with the Beneficial Reuse Division to produce an organic based compost for the

community.

The Solid Waste Department acquired a NCTCOG grant for the purchase of fourteen Big Belly solar

powered refuse compactors and recyclables receptacles which are being placed in public areas to

reduce litter and increased waste diversion.

Utility Services

Solid Waste





2010-11 2011-12 2011-12 2012-13


Refuse Fees - Residential $ 6,530,099 $ 7,037,509 $ 6,952,366 $ 8,749,295

Refuse Fees - Commercial 9,344,971 9,700,246 9,705,849 11,395,798

Landfill Fees 1,950,411 3,250,137 2,909,289 3,106,292

Recycling 2,721,246 3,075,411 3,163,167 1,214,705

Other Revenues 656,278 10,000 110,000 681,499

TOTAL REVENUES $ 21,203,005 $ 23,073,303 $ 22,840,671 $ 25,147,589

Use of Reserves - - - -

TOTAL RESOURCES $ 21,203,005 $ 23,073,303 $ 22,840,671 $ 25,147,589

2010-11 2011-12 2011-12 2012-13


Solid Waste Administration $ 612,149 $ 670,096 $ 629,381 $ 946,039

Residential Collection 5,104,860 5,982,875 5,970,592 7,695,415

Commercial Collection 6,085,877 6,438,629 6,415,340 8,212,309

Solid Waste Landfill 5,773,344 6,218,290 6,205,417 6,422,162

Solid Waste Recycling 2,425,416 3,237,421 3,237,423 1,271,317

Construction 186,652 - - 226,280

Keep Denton Beautiful (KDB) 345,343 357,025 356,846 351,167

Miscellaneous 290,367 - - -

TOTAL EXPENDITURES $ 20,824,008 $ 22,904,336 $ 22,814,999 $ 25,124,689

PERSONNEL 2010-11 2011-12 2011-12 2012-13


Solid Waste Administration 4.00 4.00 4.00 4.00

Residential Collection 31.50 31.50 31.50 40.00

Commercial Collection 23.50 23.50 23.50 28.50

Solid Waste Landfill 25.50 26.50 26.50 22.50

Construction - - - 4.50

Solid Waste Recycling 11.00 17.00 17.00 8.00

Keep Denton Beautiful (KDB) 3.00 3.00 3.00 3.00

TOTAL PERSONNEL 98.50 105.50 105.50 110.50

SOLID WASTE FUND


2012-13



RESOURCES

$25,147,589

EXPENDITURES

$25,124,689

SOLID WASTE FUND RESOURCES & EXPENDITURES

Refuse Fees - Residential 34.79%

Refuse Fees - Commercial

45.32%

Landfill Fees 12.35%

Recycling 4.83%

Other Revenues 2.71%


Materials & Supplies

1.13%

Maintenance & Repair

1.20%

Insurance 0.68%

Miscellaneous 0.24%

Operations 25.22%

Debt Service 21.73% Franchise Fee

5.02%

Landfill Closure 1.32%

Transfers 8.85%




Insurance 0.67%

Miscellaneous 0.24%

Operations 24.85%

Debt Service 21.41%

Franchise Fee 4.94%

Landfill Closure 1.30%

Transfers 8.72%

Fixed Assets 1.47%



SOLID WASTE FUND


2010-11 2011-12 2011-12 2012-13

EXPENDITURE ACTUAL BUDGET ESTIMATE ADOPTED

Personal Services $ 6,914,062 $ 7,315,794 $ 7,283,402 $ 8,398,223



Insurance 125,382 146,658 146,659 168,962

Franchise Fee 1,028,873 1,124,323 1,144,698 1,241,561

Miscellaneous 46,871 51,265 58,082 60,322

Operations 5,627,675 6,528,230 6,477,504 6,242,914

Debt Service 3,645,631 4,529,003 4,529,003 5,378,055


Landfill Closure 394,618 375,950 375,950 325,950

Cost of Service - Technology Services 192,268 241,362 241,362 281,642


Cost of Service - Safety and Training 81,213 84,344 84,344 86,201

Cost of Service - Electric 970 2,375 2,375 691

Cost of Service -Materials Mgmt 50,042 50,693 50,693 71,188

Cost of Service - Utility Admin 115,140 160,677 160,677 146,855

Cost of Service - Customer Service 566,014 637,733 637,731 670,388

Fixed Assets 115,275 304,200 304,200 370,000

Capital Projects 713,795 - - -

TOTAL EXPENDITURES $ 20,824,008 $ 22,904,336 $ 22,814,999 $ 25,124,689

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the addition of 6 FTEs for the curbside

Recycling program, and 1 FTE for Landfill operations.

The budget reflects the addition of 5 FTEs and the re-

establishment of a Construction and Demolition Materials

Recovery operation: 2 FTEs for Residential Curbside Recycling,

1 FTE for a Recycling Coordinator, and 1 FTE for the Household

Chemical Collection program. Additionally, 1 Temporary FTE for

Residential Yard Waste collection, and the Construction and

Demolition Materials Recovery processing program.

2012-13



SOLID WASTE FUND




2012-13 4,317,100$ 1,060,955$ 5,378,055$

2013-14 3,978,200 892,792 4,870,992

2014-15 4,025,000 771,795 4,796,795

2015-16 3,080,000 657,891 3,737,891

2016-17 2,130,000 560,925 2,690,925

2017-18 1,260,000 489,225 1,749,225

2018-19 1,300,000 432,956 1,732,956

2019-20 1,350,000 372,094 1,722,094

2020-21 1,085,000 316,847 1,401,847

2021-22 1,030,000 270,038 1,300,038

2022-23 750,000 229,563 979,563

2023-24 785,000 194,436 979,436

2024-25 765,000 159,238 924,238

2025-26 735,000 126,234 861,234

2026-27 620,000 97,159 717,159

2027-28 545,000 72,168 617,168

2028-29 495,000 49,621 544,621

2029-30 515,000 27,387 542,387

2030-31 305,000 8,687 313,687

2031-32 40,000 700 40,700

TOTAL 29,110,300$ 6,790,711$ 35,901,011$

Note: The above debt service schedules represent a portion of the City of Denton's General Obligation Bonds.



SOLID WASTE FUND SOLID WASTE FUND


BY ISSUE BY ISSUE

2012-13 2012-13

Issue Issue Date Final Maturity Coupon Rate *

















Note: Solid Waste Fund bond issue is part of General Debt Service Fund.



SOLID WASTE FUND


BY ISSUE

2012-13




857,000 80,300 67,100 1,870 68,970

1,755,000 85,000 85,000 1,700 86,700

2,040,000 455,000 140,000 17,225 157,225

1,195,000 75,000 35,000 2,494 37,494

1,570,000 605,000 35,000 24,381 59,381

5,450,050 1,975,000 495,000 77,408 572,408

2,590,000 1,135,000 55,000 51,514 106,514

2,245,000 2,185,000 10,000 96,125 106,125

2,820,000 1,720,000 305,000 61,763 366,763

795,000 420,000 135,000 11,363 146,363

8,410,000 6,730,000 925,000 273,350 1,198,350

430,000 365,000 210,000 13,000 223,000

7,895,000 7,130,000 945,000 202,225 1,147,225

540,000 540,000 - 22,100 22,100

5,610,000 5,610,000 875,000 204,437 1,079,437

TOTAL 4,317,100$ 1,060,955$ 5,378,055$



Airp

ort F

un

d

CITY OF DENTON AIRPORT FUND

Airport Fund

Airport Gas Well Fund

Enterprise Fund


Program Description

Denton Airport has grown over the past decade to become the eighth (8th) busiest airport in the State of Texas

measured by takeoffs and landings. Private aviation business at the Airport has invested tens of millions of

dollars in facilities and generates over 450 jobs at the Airport. The City of Denton has constructed over $26

million dollars of public infrastructure during this same period to serve existing aviation industry and to

attract new private investment at the Airport. Service demand has risen for the Airport to provide

infrastructure and landscape maintenance, manage contracts for air traffic control, and flight line service to

pilots. With increasing development and aircraft traffic, the requirement for interface with regional, state and

federal regulators and other stakeholders has expanded.


Increase ground lease revenue by $75,000 annually.

Complete construction of 90,000 square feet of new aircraft ramp.

Incorporate new logo, tag line, anthem and Airport name proposed by the Economic Development

Partnership Board.

Conduct target marketing plan for new aviation industry to locate at Airport.


Completed construction of a 1,000 foot runway extension.

Completed construction of a Landscape Equipment Maintenance Facility, including a service bay to

house an Airport Rescue and Fire Fighting vehicle with access to the aircraft movement area.

Acquired through a public/private partnership an Airport Rescue and Fire Fighting (ARFF)vehicle

and inaugurated ARFF service on the Airport operated by the Denton Fire Department.

Enterprise Fund

Airport Fund





2010-11 2011-12 2011-12 2012-13


Airport Ground Leases 320,552$ 375,000$ 341,329$ 561,802$

FBO Commissions 260,361 245,000 262,213 350,000

Airport Gas Royalties 2,561,321 1,500,000 1,220,044 1,125,000

Airport Leases 15,152 - - -

Miscellaneous 46,040 15,000 34,958 40,000

Interest Income 40,225 35,000 27,000 25,000

Transfers In 8,679,643 - - -

TOTAL REVENUES 11,923,294$ 2,170,000$ 1,885,544$ 2,101,802$

Use of Reserves - - - 391,123

TOTAL RESOURCES 11,923,294$ 2,170,000$ 1,885,544$ 2,492,925$

2010-11 2011-12 2011-12 2012-13




Repair & Maintenance 63,463 79,497 70,097 78,997

Insurance 18,321 17,874 17,874 18,563

Miscellaneous 2,011 1,500 1,300 1,500

Operations 225,795 260,835 207,665 219,388

Transfers 691,857 489,681 489,681 1,066,656

Debt Service Transfer 224,815 219,455 211,496 226,648

Cost of Service Transfer - General Fund 178,124 178,124 178,124 294,997

Franchise Fees & Return On Investment 67,935 54,852 54,852 36,071


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Total Personnel 5.00 5.00 5.50 6.50


AIRPORT FUND

The budget reflects $250,000 in funds for year one (1) of a five (5)

year program to repair and/or resurface approximately 5.5 miles of

Airport roads; $50,000 is for Grant matching to update the 2003

Master Plan; $60,056 for the purchase of a utility tractor; and

$50,000 for the creation of an airport marketing program.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget includes $250,000 in funds for year two (2) of a five

(5) year program to repair and/or resurface approximately 5.5

miles of Airport roads; $50,000 is for Grant matching to update

the 2003 Master Plan; $76,211 for an additional 1 FTE for a

Property Coordinator position; and $750,000 for capital

improvement programming. The budget includes an additional

$37,625 for items related to the Aircraft Rescue and Firefighting

(ARFF) vehicle added in FY11-12.

2012-13

RESOURCE AND EXPENDITURE SUMMARY



RESOURCES

$2,492,925

EXPENDITURES

$2,492,925

AIRPORT FUND RESOURCES & EXPENDITURES

Airport Ground Leases 22.54%

FBO Commissions 14.04%

Airport Gas Royalties 45.13%

Miscellaneous 1.60%

Interest Income 1.00%




Repair & Maintenance 3.17%

Insurance 0.74%

Miscellaneous 0.06%

Operations 8.80%

Transfers 42.80%

Debt Service Transfer 9.09%

Cost of Service Transfer - General Fund

11.83%

Franchise Fees & Return On Investment

1.45%



Te

chn

olo

gy

Fu

nd

CITY OF DENTON TECHNOLOGY SERVICES FUND

Administration

Telecommunications

Geographic Information Systems

Applications Development

User Support

Public Safety / Projects

Reprographics

Regulatory Compliance

Technology Services

Internal Service Fund


Program Description

The Technology Services Department contributes to an efficient and productive City government by using

modern information technologies to improve both worker productivity and citizen access to government

information and services.


Implement PANO infrastructure to support 900 virtual user sessions.

Implement ITRON software for Denton Municipal Electric’s AMI Project.

Continue Laserfiche imaging implementations for user departments to reduce reliance on paper-

based systems.


Redundant data center for critical applications implemented at Denton Municipal Electric.

Upgraded JD Edwards Human Resources and Financial software.

Implemented Map Web Portal for easy user access for Geographical Information.


Technology Services Fund







2010-11 2011-12 2011-12 2012-13


Transfer - Communication Services 521,545$ 720,841$ 720,841$ 495,662$

Cost of Service - General Fund 3,365,064 4,096,876 4,096,876 4,636,170

Cost of Service - Electric Fund 720,983 875,533 875,533 1,289,740

Cost of Service - Water Fund 668,887 778,407 778,407 844,155

Cost of Service - Wastewater Fund 224,240 257,818 257,818 294,863

Cost of Service - Solid Waste Fund 227,504 222,899 222,899 281,642

Cost of Service - Fleet Services Fund 67,882 71,379 71,379 89,779

Cost of Service - Materials Management 55,032 65,950 65,950 70,832

Cost of Service - Risk Retention 21,406 25,189 25,189 27,787

Cost of Service - Reprographics 14,776 17,161 89,284 83,716

Cost of Service - Street Improvement - 65,328 65,328 80,034

Cost of Service - Aquatic - 62,508 62,508 64,495

Cost of Service - Other - 37,809 37,809 47,495

Transfer - Municipal Court Tech Fund 94,699 125,000 125,000 100,000

Sale of Documents 335,641 349,980 275,359 290,000

Copy Sales 95,245 94,775 94,775 97,800

Miscellaneous 9,727 - - -

Interest Income 4,816 - - -

TOTAL REVENUES 6,427,447$ 7,867,453$ 7,864,955$ 8,794,170$

Use of Reserves 192,286 158,049 158,577 178,803

TOTAL RESOURCES 6,619,733$ 8,025,502$ 8,023,532$ 8,972,973$

2010-11 2011-12 2011-12 2012-13


Administration 1,734,884$ 2,204,037$ 2,204,037$ 2,171,960$

Telecommunications 1,027,935 1,162,820 1,162,820 1,172,732

Geographic Information Systems 303,437 422,963 422,963 450,918

Applications Development 1,701,091 2,025,357 2,025,357 2,285,514

User Support 806,345 1,039,967 1,039,967 1,368,353

Public Safety/Projects 609,638 522,657 522,657 712,914

Regulatory Compliance - 203,474 203,474 356,841

Reprographics 436,403 444,227 442,257 453,741


PERSONNEL 2010-11 2011-12 2011-12 2012-13


Administration 5.00 5.00 5.00 5.00

Telecommunications 3.00 3.00 3.00 3.00

Geographic Information Systems 2.00 2.00 2.00 2.00

Applications Development 8.00 8.00 8.00 8.00

User Support 6.00 6.00 6.00 8.00

Regulatory Compliance 1.00 1.00 1.00 1.00

Reprographics 2.00 2.00 2.00 2.00

TOTAL PERSONNEL 27.00 27.00 27.00 29.00

2012-13



TECHNOLOGY SERVICES FUND RESOURCES & EXPENDITURES

RESOURCES

$8,972,973

EXPENDITURES

$8,972,973




Insurance 0.27%

Operations 15.29%

Debt Payment 2.75%

Transfers 8.88%

Fixed Assets 6.82%

Transfer - Communication Services 5.52%

Cost of Service - General Fund

51.67%

Cost of Service - Electric Fund

14.37%

Cost of Service - Water Fund

9.41%

Cost of Service - Wastewater Fund

3.29% Cost of Service - Solid Waste Fund

3.14%

Cost of Service - Street Improvement

0.89%

Cost of Service - Other 5.40%

Sale of Documents 3.23%

Revenue - Copier Service 1.09%






2010-11 2011-12 2011-12 2012-13

EXPENDITURE ACTUAL BUDGET ESTIMATE ADOPTED



Maintenance & Repair 1,708,847 2,241,307 2,241,307 2,604,342

Insurance 18,201 21,268 21,268 24,463

Operations 894,967 1,154,156 1,152,186 1,370,878

Debt Payment 677,114 582,159 582,159 246,369

Transfers 357,637 279,607 279,607 796,844

Fixed Assets 206,106 681,215 681,215 612,122


The budget reflects the addition of a 1 FTE, and a division for Electric

regulatory compliance.

The budget reflects the addition of 2 FTEs (Public Safety

Network Administrators), in the User Support Division, for

enhanced support functions to public safety departments.

2012-13

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13



Ma

teria

ls Ma

na

ge

me

nt F

un

d

CITY OF DENTON MATERIALS MANAGEMENT FUND

Purchasing

Warehouse

Materials Management



Program Description

The Materials Management Division is composed of two separate components: 1) the Purchasing area

manages the acquisition of commodities and services, and 2) the Warehouse area is responsible for storage

and distribution of applicable commodities. Our mission is to provide commodities and services that achieve

“best value”, are obtained in a fair and competitive manner, and lessen the overall risk to the City of Denton.

This is coupled with the requirement to efficiently and accurately perform storage, inventory, financial

control, and distribution of commodities throughout the City. Our Division ultimately arrives at maximizing

value of commodities and services, and minimizes the risks related to sourcing and inventory management.


Implementation of the revised City purchasing manual, and education of staff regarding this policy.

Implement a local preference training and education initiative.

Implement a process to better manage warehouse distribution of materials for projects and operations and maintenance.


Implemented an electronic supplier registration process, creating efficiency in contacting suppliers

with potential opportunities.

Utilized more electronic methods of communication and web presence (publication of solicitations)

to achieve both savings in time, and created savings by maximizing participation in the competitive

processes.


Materials Management Fund







2010-11 2011-12 2011-12 2012-13


Sale of Scrap Material 2,752$ 3,250$ 200$ -$

Postage Fees 55,198 54,570 50,000 45,000

Warehouse Sales 8,044,081 5,123,958 4,536,354 5,627,081

Miscellaneous Income 45,495 44,200 39,745 40,760


Cost of Service - Electric Fund 108,573 111,830 111,830 262,400

Cost of Service - Water Fund 70,648 72,767 72,767 167,601

Cost of Service - Wastewater Fund 57,259 58,977 58,977 161,012

Cost of Service - Solid Waste Fund 50,042 51,543 51,543 71,185

Cost of Service - Other Funds 120,884 119,300 119,300 180,063

Auction Proceeds 40,506 35,300 38,000 40,500

TOTAL REVENUES 8,789,668$ 5,940,678$ 5,343,699$ 7,044,192$

Use of Reserves 155,259 162,076 56,316 394,674

TOTAL RESOURCES 8,944,927$ 6,102,754$ 5,400,015$ 7,438,866$

2010-11 2011-12 2011-12 2012-13


Personal Services 843,994$ 940,054$ 909,396$ 1,122,540$


Inventory 7,798,545 4,895,140 4,232,784 5,334,970


Insurance 17,987 18,106 18,106 17,357

Miscellaneous 986 1,000 1,000 1,000

Operations 44,205 94,225 85,249 81,230

Debt Service 48,353 48,692 48,692 45,287

Transfers 126,391 67,822 67,822 798,477



PERSONNEL 2010-11 2011-12 2011-12 2012-13


Purchasing 8.00 7.00 7.00 8.00

Warehouse 5.50 5.00 5.00 5.00

TOTAL PERSONNEL 13.50 12.00 12.00 13.00

2012-13

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13

The budget reflects a reduction of 1.5 FTEs; 1 FTE in the

Purchasing division and 0.5 FTE in the Warehouse.

The budget reflects the addition of 1 FTE for a Senior Buyer to

assist with the enhanced DME capital program , and additional

funding for a temporary position.



RESOURCES

$7,438,866

EXPENDITURES

$7,438,866

MATERIALS MANAGEMENT RESOURCES & EXPENDITURES


Materials & Supplies

0.38%

Inventory 71.73%


Insurance 0.23%

Miscellaneous 0.01%

Operations 1.09%

Debt Service 0.61%

Transfers 10.73%

Postage Fees 0.60%

Warehouse Sales 75.65%

Miscellaneous Income 0.55%

Cost of Service Transfers

17.35%

Auction Proceeds 0.54%




Fle

et M

an

ag

em

en

t Fu

nd

CITY OF DENTON FLEET MANAGEMENT FUND

Vehicle Maintenance

Fleet Management



Program Description

Fleet Management is responsible for providing high quality, cost effective preventive and corrective

maintenance on all city vehicles and equipment. Fleet Services provides for an extensive preventative

maintenance program to ensure dependability and safety while minimizing downtime. Total Fleet

Management includes procurement, up-fitting and in-servicing of new equipment, diagnostics,

troubleshooting, inspection and repair as well as asset disposal through on-line auction. Fleet Services

provides fuel and warehouse administration and outside contract compliance along with oversight of fuel

purchasing, dispensing and billing operations at two locations. In addition Fleet Services is responsible for

generating monthly reports for operating departments outlining repair labor, parts, sublet and fuel costs as

well as mileage for each of their vehicles.


Maintain inclusion in the top 100 Best Fleets in America.

Advance sustainability and reduce reliance on foreign oil through the use of alternative fuels and vehicle purchases utilizing the latest emission technology available.

Continued improvement of preventative maintenance scheduling and compliance to meet or exceed accepted industry standards.


Installed an automated fueling terminal to the fuel truck for wireless downloads ensuring accurate meter readings and gallons dispensed for field fueling of equipment.

Completed conversion to Faster Asset Solutions fleet management web product.

Completed two auctions for disposal of City vehicles and equipment.


Fleet Management Fund





2010-11 2011-12 2011-12 2012-13


Fuel Sales 4,414,183$ 6,596,950$ 5,023,713$ 7,167,150$

Parts Vehicle Maintenance 4,337,179 4,737,565 5,338,255 5,309,560

DCTA Fleet Maintenance - 1,173,708 - -

Federal Transit Administration Grant - 450,000 - -

Miscellaneous 86,404 1,300 72,789 91,300

Interest Income 743 - 1,394 1,300

Fleet Rental 7,156 25,168 4,690 7,605

Fleet Admin Transfers 281,112 292,656 292,344 291,060

TOTAL REVENUES 9,126,777$ 13,277,347$ 10,733,185$ 12,867,975$


TOTAL RESOURCES 9,139,046$ 13,277,347$ 10,733,185$ 12,867,975$

2010-11 2011-12 2011-12 2012-13




Inventory (Fuel only) 3,846,575 5,010,250 4,646,531 5,500,150


Insurance 142,150 83,652 83,652 83,652

Miscellaneous - 1,250,000 - 1,250,000

Operations 2,910,932 3,337,112 3,679,653 3,184,210

Debt Service 265,376 258,558 258,558 258,185

Transfers 282,346 145,971 145,971 550,316

Fixed Assets - 140,000 70,000 -


PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 21.00 31.00 22.00 22.00

DCTA and the City were unable to successfully negotiate a fleet

maintenance agreement due to a variety of factors. As a result, the

FY 2012-13 Budget excludes 9 FTEs and associated funding which

was included in the FY 2011-12 Budget for this purpose.



2012-13

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the addition of 1 FTE, Heavy Equipment

Technician.

In addition, the budget reflects an agreement with DCTA for fleet

maintenance. The DCTA maintenance agreement will result in

an additional 9 FTEs to the Fleet fund.



RESOURCES

$12,867,975

EXPENDITURES

$12,819,861

FLEET MANAGEMENT RESOURCES & EXPENDITURES

Fuel Sales 55.70%

Fleet Admin Transfers 2.26%

Parts Vehicle Maintenance

41.26%

Miscellaneous 0.72%

Fleet Rental 0.06%



Inventory (Fuel only) 42.93%


Insurance 0.65%

Miscellaneous 9.75%

Operations 24.84%

Debt Service 1.99%

Transfers 4.29%



Risk

Re

ten

tion

Fu

nd

CITY OF DENTON RISK RETENTION FUND

Risk Retention



Strategic Plan Performance Report section in this document.

Program Description

The Risk Management Department is responsible for identifying and evaluating potential exposures to loss.

This is achieved by developing policies, procedures, and training to eliminate and/or mitigate the cost of

claims associated with any losses. Risk Management is also responsible for the administration of the City's

benefits program. This includes compliance with applicable laws, fund and trend analysis, and planning. The

department administers the Risk Retention Fund, Health Insurance Fund, and Wellness Program.


Perform updated valuations of all City facilities.

Explore the feasibility of developing an approved medical network for our workers’ compensation

injuries.

Facilitate regular planning meetings between Risk Management and Utilities Safety & Training.


Revised Policy #409.01 – Occupational Injury Benefits.

Received funding, purchased and implemented a new Risk Management Information System (RMIS).

Received approval to create and hired a new position of Benefits & Leave Coordinator.


Risk Retention Fund





RISK RETENTION FUND


2010-11 2011-12 2011-12 2012-13


Commercial Insurance 610,878$ 548,233$ 548,233$ 538,713$

Self Insurance 1,495,672 1,273,956 1,273,956 1,364,902

Worker's Compensation 650,516 675,525 675,525 677,775

Interest Income 38,651 35,000 33,000 35,000

Other Revenues 39,905 - 11,500 10,000

TOTAL REVENUES 2,835,622$ 2,532,714$ 2,542,214$ 2,626,390$

Use of Reserves - 198,324 27,813 93,555

TOTAL RESOURCES 2,835,622$ 2,731,038$ 2,570,027$ 2,719,945$

2010-11 2011-12 2011-12 2012-13





Depreciation Expense - 1,200 - -

Insurance 997,106 1,206,072 1,143,705 1,205,650

Miscellaneous 187,846 222,000 222,000 226,000

Operations 352,602 416,228 392,375 351,236


Cost of Service- Other 2,427 2,500 2,500 13,359

Cost of Service-Tech Services 21,406 27,662 27,662 27,787


PERSONNEL 2010-11 2011-12 2011-12 2012-13



2012-13

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13 The budget reflects no major changes. The budget reflects the addition of 1 FTE, a benefits leave

coordinator position. Also, funding of $68,750 for Risk

Management Information System (RMIS) database software

and $6,300 for a drug disposal kiosk is included. The estimate

includes $17,500 for a city-wide asset appraisal.



RISK RETENTION FUND RESOURCES & EXPENDITURES

RESOURCES

EXPENDITURES

$2,719,945

$2,719,945

CommercialInsurance19.81%

Self Insurance50.18%

Worker's Compensation24.92%

Interest Income1.29%

Use of Reserves3.44%

Other Revenues0.36%

Personal Services20.40%

Materials & Supplies0.35%

Maintenance & Repair5.44%

Depreciation Expense0.01%

Insurance44.33%

Miscellaneous8.31%

Operations12.91%

Cost of Service-Tech Services1.01%

Cost of Service - General Fund

6.75%

Cost of Service- Other0.49%



He

alth

Insu

ran

ce F

un

d

CITY OF DENTON HEALTH INSURANCE FUND

Health Insurance



Strategic Plan Performance Report section in this document.

Program Description

The Health Insurance Fund (HIF) was established for the 2007 budget as an internal service fund to

administer the self-insurance program that the City began on January 1, 2008. The Fund receives revenue

and pays out claims and/or premiums for the health, dental, vision, long-term disability, short-term disability,

life, supplemental life, and post-65 retiree benefit programs.


Measure the success of Healthy Incentives Program (HIP) and evaluate the next phase of the

program.

Offer on-line open enrollment for employees for the 2013 benefit programs.

Evaluate operations, staff, and services being provided at the Employee Health Center to measure

outcomes and future growth.


Opened the Employee Health Center which provides no cost primary medical care to City employees,

retirees, and dependents.

Implemented Phase III of the Healthy Incentives Program (HIP).

Completed the Request For Proposal (RFP) process for the City’s health and pharmacy benefits third-

party administrator

(TPA).


Health Insurance Fund





2010-11 2011-12 2011-12 2012-13


Employee Contributions - Health 1,921,145$ 2,133,620$ 2,035,099$ 2,061,577$

Employee Contributions - Dental 650,959 709,580 768,670 850,000

Employee Contributions - Vision 88,882 97,150 108,820 121,340

Employee Contributions - STD 98,907 100,100 104,330 104,330

Retiree Contributions 484,396 480,000 561,960 513,000

City Contributions - Health Insurance 12,455,262 13,845,902 13,944,187 15,340,012

City Contributions - LTD 261,454 132,500 134,124 201,084

City Contributions - Life Insurance 303,086 279,850 285,240 285,200

Pharmacy Rebates 96,441 125,000 177,000 175,000

Stop Loss Recovery 1,370,171 500,000 750,000 750,000

Other 27,574 25,000 18,500 18,500

TOTAL REVENUES 17,758,277$ 18,428,702$ 18,887,930$ 20,420,043$

Use of Reserves - 1,524,411 1,065,183 1,392,117

TOTAL RESOURCES 17,758,277$ 19,953,113$ 19,953,113$ 21,812,160$

2010-11 2011-12 2011-12 2012-13


Long Term Disability 150,564$ 132,500$ 134,120$ 134,120$

Life Insurance 298,475 279,850 285,200 285,200

Short Term Disability 85,757 100,100 104,330 104,330

Dental Insurance 702,155 709,580 768,670 850,000

Vision Insurance 87,961 97,150 108,820 121,340

Health Insurance 15,861,930 18,633,933 18,498,653 20,287,697

Transfers - - - 19,473

Health Clinic Costs 20,000 - 53,320 10,000


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13



2012-13

The budget reflects no increases in employee health insurance

premiums.

The budget reflects no increases in employee health insurance

premiums. The City Council passed a formal budget amendment to

recognize increased FY 11/12 expenditures in August 2012 totaling

$1,428,251.



HEALTH INSURANCE FUND RESOURCES & EXPENDITURES

RESOURCES

EXPENDITURES

$21,812,160

$21,812,160

Long Term Disability 0.61%

Life Insurance 1.31%

Short Term Disability 0.48%

Dental Insurance 3.90%

Vision Insurance 0.56%

Health Insurance 93.00%

Transfers 0.09%

Health Clinic Costs 0.05%

Employee Contributions - Health 9.45%

Employee Contributions - Dental 3.90%

Employee Contributions - Vision 0.56%

Employee Contributions - STD

0.48% Retiree Contributions

2.35%

City Contributions - Health Insurance

70.33%

City Contributions - LTD 0.92%

City Contributions - Life Insurance

1.31%

Pharmacy Rebates 0.80%

Stop Loss Recovery 3.44%


Other 0.08%



Stre

et Im

pro

ve

me

nt F

un

d

CITY OF DENTON STREET IMPROVEMENT FUND

Streets

Street Improvment Fund


Program Description

The Street Improvement department provides maintenance services that give the City of Denton a safe and

reliable transportation system. These maintenance activities include: repairing potholes, providing street

utility cuts, repairing base failures, replacing curbs and gutters and installing crack sealing. In addition to

minor repairs, the Street Improvement department repairs major base failures, overlays and total street

reconstruction. The street department responds to street related emergencies 7 days a week; such as debris

removal, high water safety, and sanding during inclement weather.


Establish a full time Pothole Crew.

Expand Street reconstruction program using 5 year Street bond program funds.

Increase preventative maintenance program using the increased programmed resources.


Implemented Trimble Handheld Mobile Units for work order entry by Crew Leaders promoting a

paperless cost efficient process.

Established a Utility Cut Crew Leader, coordinator, and repair process which enabled more repairs to

be done in a timely manner.

Expanded project coordination efforts with Utility Departments utilizing GIS mapping systems.

Special Revenue Fund

Street Improvement Fund





2010-11 2011-12 2011-12 2012-13

RESOURCES ACTUAL BUDGET ESTIMATE ADOPTEDStreet Cut Reimbursements -$ 315,180$ 315,180$ 321,484$ Bond Sale Savings - 156,775 194,382 265,251 Franchise - Atmos Gas - 492,814 492,814 553,470 Franchise - Charter Communications - 159,898 180,135 189,148 Franchise - CoServ Electric - 82,895 111,016 106,396 Franchise - TXU Electric - 30,949 30,949 34,758 Franchise - CoServ Gas - 61,414 68,554 72,349 Franchise - Verizon Cable - - 226,400 496,513 Franchise - Miscellaneous Cable - 367,827 367,827 23,643 ROW - DISD FIBER - 11,579 11,579 12,749 Franchise - Verizon Telecommunications - 300,799 186,391 264,250 Franchise - Telecommunications - 86,527 116,023 111,124 Franchise - DMU Electric - 2,553,932 2,539,676 2,850,065

Franchise - DMU Water - 623,451 632,817 750,178 Franchise - DMU Wastewater - 413,016 408,518 505,090 Franchise - Solid Waste - 473,392 493,768 575,584 Franchise - Airport - 14,745 14,745 16,722 Transfer from General Fund - 921,779 921,779 - Interest Income - - 10,000 10,000 TOTAL REVENUES -$ 7,066,972$ 7,322,553$ 7,158,774$ Use of Reserves - - - -

TOTAL RESOURCES -$ 7,066,972$ 7,322,553$ 7,158,774$

2010-11 2011-12 2011-12 2012-13


Personal Services -$ 1,825,754$ 1,886,761$ 2,141,141$

Materials & Supplies - 65,550 63,350 67,706

Maintenance & Repairs - 3,613,230 3,561,522 4,257,024

Insurance - 37,163 37,163 47,751

Miscellaneous - 4,550 5,500 6,000

Operations - 516,770 507,122 557,647

Transfers - 82,176 82,176 81,505

TOTAL EXPENDITURES -$ 6,145,193$ 6,143,594$ 7,158,774$

PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL - 27.00 27.00 30.00



2012-13

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the addition of 3 FTEs (1 Crew Leader and 2

Field Service Worker II's) for a new maintenance crew to perform

additional street repairs.

The budget reflects the creation of a special revenue fund to account

for street operations. A one-time transfer from the General Fund of

$921,779 is included to establish a beginning fund balance and

represents 15% of budgeted expenditures for FY 2011-12.



RESOURCES

$7,158,774

EXPENDITURES

$7,158,774

STREET IMPROVEMENT FUND RESOURCES & EXPENDITURES

Street Cut Reimbursements

4.49%

Bond Sale Savings 3.71%

Franchise Fees 91.66%




Maintenance & Repairs 59.47%

Insurance 0.66%

Miscellaneous 0.08%

Operations 7.79%

Transfers 1.14%



Re

crea

tion

Fu

nd

CITY OF DENTON RECREATION FUND

Athletics

Civic Center Pool

McMath

Golf Driving Range

Youth / Teen Services

Programs / Specialty Areas

American Legion Hall

Civic Center

Denia Center

Goldfield Tennis Center

Martin Luther King Jr. Center

North Lakes Center

Senior Center

Recreation Centers

RecreationLeisure Services

Recreation Fund


Program Description

The mission Parks and Recreation Department is: “enriching lives and building community through the stewardship of public parks and open space and diverse recreational opportunities that foster lifelong wellness, creativity, and, learning.” The five divisions within Parks and Recreation support this mission through strategic planning, CIP planning and design; the provision of a variety of passive and active recreation opportunities, programs, and special events utilizing our parks, athletic fields, walking trails and aquatic facilities for the broad demographic segments of our city.


Purchase property and begin design‐build of four adult soccer fields in North Lakes Park.

Complete renovation of Golf Driving Range and bring operation in‐house.

Enter into new joint use agreement with DISD for use of the McMath Middle School gym.

Finalize the City’s sponsorship policy.


Constructed Ernest Dallas Park, Wheeler Ridge Trail, and Quakertown Walking Trails, and renovation of North Lakes Park softball fields where collegiate softball tournaments are held.

Received awards from LULAC, World Water Park Association, Texas Recreation and Parks Society Region 2‐3, and the Parks Maintenance Division won the TRAPS Region 2‐3 Parks Rodeo for the fifth time.

Reorganized department to include a dedicated manager at Denia Recreation Center.

Recreation Fund






2010-11 2011-12 2011-12 2012-13


Special Projects 5,772$ 2,535$ 2,950$ 3,096$

Marketing 19,984 25,247 25,247 28,166

Civic Center 23,084 23,384 23,384 24,071

Denia Rec Center 120,026 124,679 124,679 137,462

North Lakes Rec Center 255,714 269,932 263,000 269,767

Senior Center 101,529 81,962 101,529 99,017

Youth and Teen Services 409,072 358,043 358,043 383,303

Goldfield Tennis Center 126,923 162,000 162,000 177,646

Civic Center Pool 33,581 46,968 39,600 41,078

Martin Luther King Jr. Rec Center 36,637 81,298 81,298 166,412

Golf - - - 143,175

Athletics 252,780 266,613 266,613 279,438

Miscellaneous Income 900 - - -

Interest Income 4,232 15,000 15,000 10,000

TOTAL REVENUES 1,390,234$ 1,457,661$ 1,463,343$ 1,762,631$

Use of Reserves 36,447 147,690 67,153 187,717

TOTAL RESOURCES 1,426,681$ 1,605,351$ 1,530,496$ 1,950,348$

2010-11 2011-12 2011-12 2012-13





Insurance 16,091 19,155 19,155 20,434

Operations 339,732 393,342 392,226 504,114

Transfer - General Fund 152,168 156,733 156,733 80,668

Transfer - Capital Projects 35,000 - - -

Transfer - Materials Mgmt 4,567 4,704 4,704 31,163



PERSONNEL 2010-11 2011-12 2011-12 2012-13


24.27 24.27 24.27 24.27

RECREATION FUND

RESOURCE AND EXPENDITURE SUMMARY

2012-13

MAJOR BUDGET ITEMSFY 2011-12 FY 2012-13

The budget includes funding for the purchase of a new tennis

ball machine, carnival games for department special events, ping

pong table, kayaks, new basketball rims for the recreation

centers, and improvements to the Golf Driving Range Center.

The budget includes funding for replacement kayaks used in the

outdoor programs, a replacement TV for Martin Luther King

Recreation Center, sound system for Denia Recreation Center,

and the addition of benefits for one full time employee.



RESOURCES

$1,950,348

EXPENDITURES

$1,950,348

RECREATION FUND RESOURCES & EXPENDITURES

Special Projects 0.16%

Marketing 1.44%

Civic Center 1.23%

Denia Rec Center 7.05%

North Lakes Rec Center

13.83%

Senior Center 5.08%

Youth and Teen Services 19.65%

Goldfield Tennis Center 9.11%

Civic Center Pool 2.11%

Martin Luther King Jr. Rec Center

8.53%

Golf 7.34%

Athletics 14.33%






Insurance, Misc. 1.05%

Operations 25.85%

Cost of Service Transfers

5.73%



Misce

llan

eo

us F

un

d

TOURIST & CONVENTION FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Hotel Occupancy Tax 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740$

TOTAL REVENUES 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740$


TOTAL RESOURCES 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740$

2010-11 2011-12 2011-12 2012-13


Convention & Visitor Bureau 650,076$ 650,080$ 650,080$ 733,100$

North Texas State Fair Association 73,610 73,620 73,620 73,620

Greater Denton Arts Council 117,776 117,780 117,780 117,780

Denton Civic Center 16,991 7,500 7,500 7,500

Denton Festival Foundation 82,811 82,820 82,820 82,820

Denton Black Chamber of Commerce 16,572 16,580 16,580 16,580

Denton Holiday Festival Association 7,638 7,640 7,640 7,640

Denton Community Theatre 23,003 23,010 23,010 23,010

Denton Air Fair 10,234 10,240 10,240 10,240

Denton Main Street Association 23,003 23,010 23,010 23,010

Denton County Museums 54,395 90,840 90,840 90,840

Denton Firefighter Museum 20,227 20,790 20,790 20,690

Denton County Historical Commission - 17,730 17,730 17,730

Cinco de Mayo Committee 8,392 8,400 8,400 8,000

Juneteenth Committee 9,700 12,430 12,430 12,430

Tejas Storytelling Association 50,607 50,610 50,610 50,610

Water Works Park 10,978 11,040 11,040 11,040

Denton Dog Days 14,586 14,590 14,590 14,590

Denton Public Art Committee 34,260 35,070 35,070 36,210

Susan G. Komen - - - 10,000

Denton Square Maintenance 9,695 11,050 11,050 11,050

Square Lighting Maintenance 5,250 5,530 5,530 5,250

Contingency 445 15,000 15,000 15,000

Convention Center Contingency - - - 100,000

Music Theater of Denton 5,000 5,000 5,000 5,000

Texas Filmmakers 5,000 5,000 5,000 5,000


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects no major changes. The budget includes $100,000 as a contingency for unknown but

anticipated expenses related to the planned Convention Center.



POLICE CONFISCATION FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Seizures 96,446$ 189,248$ 95,698$ 160,000$

Auction Proceeds 14,423 26,000 24,000 24,000

Interest Income 1,384 1,500 1,448 1,500

TOTAL REVENUES 112,253 216,748 121,146 185,500


TOTAL RESOURCES 192,999$ 216,748$ 121,146$ 185,500$

2010-11 2011-12 2011-12 2012-13


Materials & Supplies 60,233$ 76,000$ 33,000$ 42,000$

Operations 87,057 131,000 88,000 113,000



MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget includes $18,000 for facility upgrades, and $10,000

to upgrade the jail security system.

The budget included $29,000 for ammunition and $40,000 for

uniforms.



TRAFFIC SAFETY FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Red Light Camera Fees 616,416$ 385,000$ 895,316$ 913,200$

TOTAL REVENUES 616,416 385,000 895,316 913,200


TOTAL RESOURCES 668,227$ 385,000$ 895,316$ 913,200$

2010-11 2011-12 2011-12 2012-13



Operations 49,910 25,000 25,000 25,000

Red Light Camera Contract 616,416 350,000 630,134 525,960

Payment to State of Texas - - 78,900 191,695

Contingency - - 100,000 150,000


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13

The budget includes $25,000 for solar school flashers. The

budget reflects 50% revenue payments to the State of Texas.

Appropriations have also been included in the budget to provide

a contingency for items such as unanticipated payments to the

State of Texas or additional red light camera installations.

The budget includes $25,000 for solar school flashers. The

estimate reflects higher than anticipated revenues, and

corresponding higher than expected contract expenditures and

payments to the State of Texas. The City Council will consider a

formal budget amendment to recognize these changes in

August 2012.



NON-AIRPORT GAS WELL FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Interest Income 11,857$ 13,500$ 3,500$ 2,949$

Miscellaneous 11,501 - - - TOTAL REVENUES 23,358$ 13,500$ 3,500$ 2,949$ Use of Reserves 369,542 1,586,500 1,596,500 37,051 TOTAL RESOURCES 392,900$ 1,600,000$ 1,600,000$ 40,000$

2010-11 2011-12 2011-12 2012-13


Transfer to Capital Projects 392,900$ 1,600,000$ 1,600,000$ 40,000$

TOTAL EXPENDITURES 392,900$ 1,600,000$ 1,600,000$ 40,000$

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget included $1,000,000 for property acquisition, and

$600,000 for the Comprehensive Plan update.

The budget includes $40,000 for potential expenses related to a

planned property acquisition.



PARKS GAS WELL FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Gas Well Royalties 472,236$ 310,000$ 413,000$ 225,000$

Interest Income 2,645 2,500 3,610 3,500

Miscellaneous Income - - - -

TOTAL REVENUES 474,881$ 312,500$ 416,610$ 228,500$

Use of Reserves - 37,500 - 571,500

TOTAL RESOURCES 474,881$ 350,000$ 416,610$ 800,000$

2010-11 2011-12 2011-12 2012-13


Operations 53,000$ 350,000$ 350,000$ 800,000$


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget includes $500,000 for property acquisition at North

Lakes Park; $200,000 for construction at the golf driving range;

and $100,000 for the adult soccer field construction.

The budget included $15,000 for bleachers at North Lakes

Park; $90,000 to purchase property at Mack and Milam Park;

$10,000 for scoreboards at Mack Park; $15,000 for shade

coverings at Water Works Park; $95,000 for adult soccer field

construction; $15,000 for continuous river pump at Water

Works Park; $60,000 for irrigation at Evers Park baseball

fields; and $50,000 for phase I irrigation at Quaker Town Park.



TREE MITIGATION FUND


2010-11 2011-12 2011-12 2012-13


Landscaping Fee 107,781$ 45,000$ 300,000$ 200,000$

Interest Income 4,603 5,500 5,500 5,500

TOTAL RESOURCES 112,384$ 50,500$ 305,500$ 205,500$


TOTAL RESOURCES 112,384$ 50,500$ 305,500$ 205,500$

2010-11 2011-12 2011-12 2012-13


Operations 2,896$ 50,000$ 5,288$ 50,000$


The budget included $50,000 for contingency purposes. The budget includes $50,000 for potential expenses associated

with the tree mitigation program.

2012-13

MAJOR BUDGET ITEMS

FY 201-12 FY 2012-13



PUBLIC EDUCATION GOVERNMENT (PEG) FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Subscriber Fees 272,749$ 285,000$ 285,000$ 288,000$

Charter Grant 2,000 - - -

TOTAL REVENUES 274,749$ 285,000$ 285,000$ 288,000$


TOTAL RESOURCES 274,749$ 285,000$ 285,000$ 288,000$

2010-11 2011-12 2011-12 2012-13


Personal Services (1)39,514$ -$ -$ -$

Materials and Supplies 1,911 2,500 2,500 -


Miscellaneous 470 - - -

Operations 11,841 38,927 38,927 40,927

Transfer 8,195 84,175 84,175 -



PERSONNEL 2010-11 2011-12 2011-12 2012-13


TOTAL PERSONNEL 1.50 - - -

(1) Personal services are funded from Charter Grant monies.

The budget includes $50,000 for contributions to 4 PEG channels

which include: UNT, TWU, Denton ISD, and Public Access.

Additionally, the budget reflects a reduction in transfers related

to the Charter Grant monies and a reimbursement of the Grande

fiber expense.

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13

The budget reflects a one-time transfer of $11,175 to reimburse

the General Fund for prior year expenses related to the

extension of Grande fiber to the Robson Ranch Development.

The budget reflects the transfer of 1.5 FTE's to the General

Fund and the transfer of $73,000 of remaining Charter Grant

monies which are designated to pay for the salaries of these

positions.

The budget included $50,000 for contributions to 4 PEG

channels which include: UNT, TWU, Denton ISD, and Public

Access.



MCKENNA TRUST FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Interest Income 2,973$ 2,820$ 3,000$ 3,000$

TOTAL REVENUES 2,973$ 2,820$ 3,000$ 3,000$

Use of Reserves - 43,858 31,275 7,000

TOTAL RESOURCES 2,973$ 46,678$ 34,275$ 10,000$

2010-11 2011-12 2011-12 2012-13


Operations -$ 46,678$ 34,275$ 10,000$

TOTAL EXPENDITURES -$ 46,678$ 34,275$ 10,000$

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget includes $10,000 for eligible expenses associated

with the McKenna Trust.

The budget included $34,275 for the pavilion at McKenna Park.

An additional $12,403 is budgeted for contingency purposes.



PARK LAND DEDICATION TRUST FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Fees in lieu of Property Dedication 376,828$ 30,000$ 170,000$ 200,000$

Interest Income 8,128 9,500 9,200 9,000

TOTAL REVENUES 384,956$ 39,500$ 179,200$ 209,000$

Use of Reserves - 290,500 150,800 -

TOTAL RESOURCES 384,956$ 330,000$ 330,000$ 209,000$

2010-11 2011-12 2011-12 2012-13


Fixed Assets -$ 330,000$ 330,000$ 200,000$

TOTAL EXPENDITURES -$ 330,000$ 330,000$ 200,000$

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13

The budget includes funding for the acquisition of prospective

neighborhood park land.

The budget includes funding for Owsley Park, Milam Park, Carl

Young Park, and Mack Park.



PARK DEVELOPMENT TRUST FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Development Fees 231,110$ 146,000$ 100,600$ 101,000$

Interest Income 20,437 22,000 20,350 20,000

TOTAL REVENUES 251,547$ 168,000$ 120,950$ 121,000$

Use of Reserves 216,124 47,000 215,000 -

TOTAL RESOURCES 467,671$ 215,000$ 335,950$ 121,000$

2010-11 2011-12 2011-12 2012-13


Fixed Assets 467,671$ 215,000$ 215,000$ 100,000$


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget included funding for development at Owsley Park,

McKamy-Evers Park, and North Pointe Park.

The budget includes funding for improvements to existing

neighborhood parks.



DOWNTOWN TAX INCREMENT FINANCING FUND


2012-13

2010-11 2011-12 2011-12 2012-13


Ad Valorem -$ 15,871$ 15,871$ 70,691$

TOTAL REVENUES -$ 15,871$ 15,871$ 70,691$

2010-11 2011-12 2011-12 2012-13


-$ -$ -$ -$

TOTAL EXPENDITURES -$ -$ -$ -$

MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The budget reflects the creation of this new fund in

accordance with Ordinance No. 2010-316 adopted on

December 7, 2010. The 2010 base value of the TIF is

$79,356,854 and the 2011 value is $81,657,808, which

reflects a $2,300,954 or 2.9% increase compared to the

base year.

The 2010 base value of the TIF is $79,356,854 and the 2012

value is $89,605,635, which reflects a $10,248,781 or 12.9%

increase compared to the base year.



MISCELLANEOUS SPECIAL REVENUE FUNDS


2012-13

2010-11 2011-12 2011-12 2012-13


Police Donations 9,430$ 3,000$ 3,000$ 3,000$

Fire Donations 3,472 2,600 2,600 2,000

Animal Control Donations 33,187 19,000 19,000 30,000

TOTAL REVENUES 46,089$ 24,600$ 24,600$ 35,000$

Use of Reserves - 400 400 5,000

TOTAL RESOURCES 46,089$ 25,000$ 25,000$ 40,000$

2010-11 2011-12 2011-12 2012-13


Police Donations 10,960$ 5,000$ 5,000$ 5,000$

Fire Donations 769 5,000 5,000 5,000

Animal Control 30,553 15,000 15,000 30,000


MAJOR BUDGET ITEMS

FY 2011-12 FY 2012-13The Police Donations budget includes funding for

community oriented policing activities, and citizen and

departmental awards. The Animal Control Donations

budget include $15,000 for the adoption program, and

other shelter related expenses. The Fire Donations budget

includes $5,000 for the Fire Museum, tactical paramedics,

and public education programs.

The Police Donations budget includes funding for community

oriented policing activities, and citizen and departmental awards.

The Animal Control Donations budget includes $30,000 for the

adoption program, and other shelter related expenses. The Fire

Donations budget fund includes $5,000 for the Fire Museum,

tactical paramedics, and public education programs.



2012-13

DESCRIPTION

GRANT EXPIRATION GRANT UNSPENT

YEAR DATE AMOUNT TYPE AMOUNT

Community Development Block Grant 2007-08 - 897,709 Federal 158,356






Sub-Total CDBG 5,315,908$ 1,825,602$

HOME Investment Partnership Grant 2004-05 - 672,160 Federal 5,006







Sub-Total HOME 3,733,761$ 1,366,080$

Emergency Solutions Grant 2012-13 472,140$ Federal 472,140$

Total Community Development 9,521,809$ 3,663,822$

Public Safety Traning Facility 2009-10 12/25/2013 350,738 Federal 350,738

2009 Congressional Setaside 2009-10 12/31/2013 500,000 Federal 500,000

2010 Congressional Setaside 2010-11 9/30/2013 1,000,000 Federal 1,000,000

2011 UASI -LETPA 2012-13 8/31/2013 253,000 Federal 253,000

Emergency Management Performance Grant 2012-13 9/30/2013 68,844 Federal 68,844

Total Public Safety 2,172,582$ 2,172,582$

CWA 319 Grant 2009-10 8/31/2013 405,291 Federal 247,672

Texas Historical Commission Grant 2011-12 8/30/2013 21,934 Federal 21,934

Summer Food Grant 2012-13 9/30/2013 140,000 Federal 140,000

Airport RAMP Grant 2012-13 8/31/2013 50,000 State 50,000

Total Other 617,225$ 459,606$

Grand Total 12,311,616$ 6,296,010$

GRANTS BUDGET

EXPENDITURE SUMMARY

The grants budget is a summary of local, state and federal grants awarded to the City of Denton. Grants are awarded to supportprograms in the City and are not funded with City resources.

GRANT NAME



Sta

tistical In

form

atio

n

,297.411

Denton is a unique community whose diversity gives it strength. Although Denton is no longer a small town, there are certain qualities of small town life that our citizens hold dear. The historic downtown is the heart of Denton; the square and surrounding streets are used every day and night as a gathering place for commerce, civic events and entertainment.

The City of Denton is 97.411 square miles and strategically positioned within the Dallas/Fort Worth/Denton region, 37 miles northwest of Dallas and 35 miles northeast of Fort Worth. Located on the Interstate 35 corridor at the intersection of I-35E and I-35W, Denton is 18 miles from DFW International Airport and 15 miles north of Alliance Airport. Proximity to these major international transportation facilities gives Denton an unparalleled advantage. With an estimated population of 117,397 Denton is a

unique community in a high-growth area, but with a long history as the county seat and a major city in Denton County. It was founded in 1857 so that residents would have a county seat near the center of the county. Our historic downtown is the heart of Denton; the square and surrounding streets are filled every day and night

with residents and visitors who come there for work and shopping, to dine, and to enjoy civic events, theater and clubs with live music. Since the 19th century, Denton has been a major higher education center. It is the home of two major state universities, the University of North Texas (UNT) and Texas Women’s University (TWU). UNT has the most enrollments in the Dallas/Fort Worth/Denton region at more than 36,000 students. TWU has an enrollment of over 14,000 students, and is a leader in health science and service related gradates.

Denton is rapidly becoming a major center for medical services. Its two major hospitals, Denton Regional Medical Center and Presbyterian Hospital of Denton, have been joined by a wide range of specialty hospitals, surgery and treatment centers, and outpatient clinics. These facilities draw patients from all over North Texas and from southern Oklahoma.

The City of Denton is also a major banking center. Several banks have built their new central facilities in the downtown area and are building branch banks around the city and the county, while banks based in small Texas and Oklahoma towns are locating major centers in Denton. The City of Denton and the Denton Chamber of Commerce joined forces in 1987 and entered into a formal agreement to establish a joint Economic Development Partnership (EDP). The EDP is charged with aggressively broadening the tax base, expanding employment, and marketing Denton for economic growth. The City of Denton enlisted TIP Strategies Inc. in 2003 to assist in the formulation of an economic development action plan for the City. The contract for this work was sponsored by the City of Denton and the following partners: the Denton Chamber of Commerce, UNT, TWU, and the Denton Independent School District.

The City has been a driving force in organizing the Denton County Transportation Authority (DCTA), the only regional rail authority organized in a Texas

county that joins a highly urban county with an established transportation authority. During the summer of 2011 DCTA began light rail service between Denton and Carrollton. The DCTA provides connectivity to the Dallas Area Rapid Transit Authority (DART).

Denton has a growing

municipal airport with over 900 acres available for public/private investment. The airport recently celebrated its 1 millionth flight operation. The installation of a runway extension and taxiway lighting system at the Denton Airport greatly enhanced the safety of Denton-based and visiting pilots. Controlled by an FAA-certified air traffic control tower, the system provides pilots with three lighting intensities that enable safe runway environments, day or night, regardless of weather conditions. The increased safety margins of the control tower translate to increased visitors, businesses, growth, and greater prosperity for Denton.

PROFILE OF DENTON 2012-13



Many performing groups provide Denton with an endless supply of cultural and entertainment opportunities. The Greater Denton Arts Council, Denton Community Theater, Black Box theatre, Bach Society, UNT College of Music, UNT Dance and Drama Department, and TWU Dance and Theater Arts Department top the list. In addition, more than 100 festivals and events draw hundreds of thousands of visitors from outside the Denton area.

Denton offers a myriad of recreational activities. For boating enthusiasts, there are two large area lakes, Lake Lewisville to the south and Lake Ray Roberts to the north, both within 20 minutes of Denton. For race

enthusiasts, Texas Motor

Speedway, which is part of the NASCAR circuit, is just 16 miles south of Denton on I-35W. The City of Denton maintains 30

parks and open spaces and eight recreational facilities that offer expansive leisure opportunities and appeal to everyone from rock climbers to jazz enthusiasts. The City Parks and Recreation Department has won the National Gold Medal Award for Excellence three times. In May 2003, Denton opened Water Works Park, an Aquatics Center with indoor and outdoor pools and a water recreation park - a partnership between the City of Denton and the Denton Independent School District. Community leaders are passionate about planning for the future. Evidence of that is seen in their approach to light rail and transit-oriented development, and the City’s continued commitment to economic development through business, higher education and government partnerships.

City of Denton Fast Facts:

Form of Government Council-Manager

Area 97.411 square-miles

Date of Incorporation September 26, 1866

Average Unemployment Rate (Denton County)

7.3%

Total City Full-Time Equivalents (FTE) 1,405.33

By the Numbers:

Parks 30

Parks Acreage

1,209.86

Libraries 3

Library Circulation Items 259,840

Fire Stations

7

Fire Fighters 152

Police Stations

1

Police Officers 155

Solid Waste Customers

30,630

Electric Meters Maintained 48,337

Street Lights

6,998

Lane Miles of Streets Maintained 1,249

Building Permits Issued (Total)

1204

Annual Water Production 6.8 Billion Gallons

Miles of Water Main

565

Annual Wastewater Discharge 4.9 Billion Gallons

Miles of Wastewater Main

501



Plano

Irving

Arlington

Frisco

Garland

Wylie

Grand Prairie

McKinney

Allen

Ennis

Midlothian

Mesquite

Lewisville

Mansfield

Carrollton

Cedar Hill

Cleburne

Grapevine

Prosper

RockwallKeller

Flower Mound

Lancaster

Burleson

DeSoto

Richardson

Euless

Little Elm

Southlake

Forney

Azle

CoppellBriar CDP

Hurst

Reno

Argyle

Corsicana

Bedford

Corinth Fairview

Alma

Anna

Wilmer

Waxahachie

Celina

Rowlett

Lucas

Northlake

Heath

Rendon CDP

Sunnyvale

Seagoville

Melissa

Red Oak

The Colony

HasletSachse

Colleyville

Fate

Parker

Benbrook

Pecan Acres CDP

Haltom City

Royse City

Sanger

Joshua

Ovilla

HutchinsDuncanville

Weston

New Fairview

Combine

North Richland Hills

Crowley

Saginaw

Ferris

Rhome

Princeton

Westlake

Murphy

Farmers Branch

Terrell

Alvarado

Balch Springs

Keene

Talty

Kennedale

Bartonville

Roanoke

Oak Point

Rice

McLendon-Chisholm

Decatur

Aurora

Boyd

Addison

Glenn Heights

Cross Roads

Italy

Watauga

Ponder

Krum

Kaufman

Forest Hill

Eagle Mountain CDP

Highland Village

Crandall

Lavon

Justin

Milford

Palmer

Cresson

Pilot Point

Venus

Trophy Club

Rosser

Hickory Creek

Farmersville

Copper Canyon

White Settlement

Scurry

Aubrey

Godley

Oak Leaf

University Park

Richland HillsLake Worth

Pecan Hill

Shady Shores

DISH

NevadaDouble Oak

Everman

Powell

River Oaks

St. Paul

Lakeside

Lowry Crossing

Cottonwood

Lake Dallas

Grandview

Highland Park

Josephine

Oak Grove

New Hope

Blue Ridge

Frost

Pantego

Westworth Village

Krugerville

Rio Vista

BriaroaksCross Timber

Hebron

Garrett

Newark

Sansom Park

Maypearl

Barry

Edgecliff Village

Dalworthington Gardens

Pelican Bay

Aledo

Blooming Grove

Westover Hills Cockrell Hill

Blue Mound

Lakewood VillageHackberry

Bardwell

Emhouse

Corral City

Lincoln Park

Mobile City

Dallas

Fort Worth

Denton

30

45

2075

35W

67

35

80

35E

635

360

183

81

820

175

121

11412

287

97

121 BYP

408

557

PRESIDENT GEORGE BUSH

35 W

161

310

North TexasDallas/Forth Worth Metroplex

0 105 Miles = 1"

/ CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES


Single Family 44%

Multi-Family 10%

Commercial/ Industrial/

Utilities 21%

Undeveloped 2%

Tangible Personal, Other 23%

CERTIFIED VALUES BY PROPERTY CLASS

Organization Certified Value

• Columbia Medical Center of Denton (Denton Regional Hospital)

• Paccar, Inc (Personal Property)

• Inland Western Denton Crossing

• Cypress Denton Station

• Flowers Baking LLC

• Verizon Southwest

• HRA University Courtyard LLC

• Enervest Operating LLC

• DP Funding Corporation

• Paccar, Inc (Real Property)

$78,858,310

$60,267,591

$48,545,001

$41,777,266

$33,140,418

$28,442,640

$28,000,000

$27,968,770

$26,292,705

$25,898,168

TOP 10 TAXPAYERS



Tax Certified Combined Inc./-Dec. Percent of Levy

Year Assessed Value Tax Rate in Value Collected2003 4,042,202,871$ 0.54815$ 9.15% 98.47%2004 4,374,943,831$ 0.59815$ 8.23% 98.33%2005 4,789,376,811$ 0.60815$ 9.47% 97.68%2006 5,441,228,909$ 0.62652$ 13.61% 98.26%2007 6,089,499,775$ 0.66652$ 11.91% 97.98%2008 6,291,359,112$ 0.66652$ 3.31% 98.79%2009 6,327,909,022$ 0.66652$ 0.58% 98.95%2010 6,230,117,958$ 0.68975$ -1.55% 98.99%2011 6,412,375,004$ 0.68975$ 2.93% 96.72%2012 6,716,711,368$ 0.68975$ 4.75% **

** Percentage available July, 2012.

0.989287261

COMBINED CERTIFIED PROPERTY VALUE

10-YEAR HISTORY

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MIL

LIO

NS

YEAR

COMBINED CERTIFIED ASSESSED VALUES



ASSESSED AND ESTIMATED ACTUAL VALUE OF

TAXABLE PROPERTY

TEN YEAR HISTORY

Gain (Loss)

Certified Final Tax Rate in Final

Real Personal Assessed Assessed Per $100 Value Over

Year Property Property Value (1)Value * Valuation Prior Year

2003 3,490,020,517$ 622,434,286$ 4,042,202,871$ 4,112,454,803$ 0.54815$ 9.48%2004 3,602,470,935 772,472,896 4,374,943,831 4,423,864,582 0.59815 7.57%2005 4,130,707,103 658,669,708 4,789,376,811 4,858,132,742 0.60815 9.82%2006 4,584,691,730 856,537,179 5,441,228,909 5,470,513,668 0.62652 12.61%2007 5,289,219,325 800,280,450 6,089,499,775 6,104,461,510 0.66652 11.59%2008 5,492,299,164 799,059,948 6,291,359,112 6,463,245,498 0.66652 5.88%2009 5,560,236,339 767,672,683 6,327,909,022 6,433,989,553 0.66652 -0.45%2010 5,573,270,071 656,847,887 6,230,117,958 6,360,138,028 0.68975 -1.15%2011 5,570,767,137 841,607,867 6,412,375,004 6,503,285,525 0.68975 2.25%2012 5,703,149,620 1,013,561,748 6,716,711,368 N/A ** 0.68975 N/A

(1) Denton Central Appraisal District* The Final Assessed Value includes supplements for each fiscal year through September 30.** Value of supplementals not yet available.Source: Certified Appraisal Roll



SALES AND PROPERTY TAX

TEN YEAR HISTORY

Fiscal Year Combined

Tax City Rate Ending Value Rate Levy Tax Total

2003-04 17,684,899$ 1.50% 4,112,454,803$ 0.54815$ 22,542,421$ 40,227,320$ 2004-05 18,998,058$ 1.50% 4,423,864,582$ 0.59815$ 26,461,346$ 45,459,404$ 2005-06 20,343,413$ 1.50% 4,858,132,742$ 0.60815$ 29,544,734$ 49,888,147$ 2006-07 20,653,932$ 1.50% 5,470,513,668$ 0.62652$ 34,273,862$ 54,927,794$ 2007-08 21,440,839$ 1.50% 6,104,461,510$ 0.66652$ 40,687,457$ 62,128,296$ 2008-09 20,466,772$ 1.50% 6,463,245,498$ 0.66652$ 43,078,824$ 63,545,596$ 2009-10 20,483,418$ 1.50% 6,433,989,553$ 0.66652$ 42,883,827$ 63,367,245$ 2010-11 22,871,281$ 1.50% 6,360,138,028$ 0.68975$ 43,869,052$ 66,740,333$ 2011-12 23,446,578$ 1.50% 6,503,285,525$ 0.68975$ 44,856,412$ 68,302,990$ 2012-13** 26,446,107$ 1.50% 6,716,711,368$ 0.68975$ 46,328,517$ 72,774,624$ ** Sales Tax is budgeted amount and Property Tax is actual levy amount.

Sales Tax Property Tax

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Combined Tax Chart

Property Tax

Sales Tax



ApproximateNumber of

Employer* Description Employees

University of North Texas Higher Education 8,887 Denton Independent School District Education 3,300 Peterbilt Motors – Headquarters and Plant Diesel Trucks 2,100 Texas Woman's University Higher Education 1,787 Denton County Government 1,554 Denton State School Mental Healthcare 1,500 City of Denton Government 1,300 FEMA Regional HQ & Call Center 612 up to 1,100Presbyterian Hospital of Denton Hospital/Healthcare 1,074 Denton Regional Medical Center Hospital/Healthcare 911 Thermadyne/Victor Equipment/Tweco Welding Equipment 600 Jostens Class Ring Manufacturer 450 Sally Beauty International Headquarters Beauty Supply Distributor 450 Flowers Baking Company Bakery 450 Anderson Merchandisers Distribution 450 University Behavioral Health of Denton Hospital/Healthcare 310 Texas Department of MHMR Mental Healthcare 302 James Wood Auto Park Car/Truck Sales/Service 300 Progressive Industries MHMR Mental Healthcare 240 CBS Mechanical Mechanical Contractor 220 Morrison Milling Flour Grain Mill 200 Integrated Alliance LP Call Center 200 United Copper Industries Copper Wire 196 Acme Brick Brick Manufacturing 185 Denton Rehab. and Nursing Center Retirement/Rehabilitation 180 Keller Williams Real Estate 170 DeCrane Aerospace Precision Pattern Jet Interior Manufacturing 165 Tetra Pack Aseptic Packaging 150 Senior Care & Rehabilitation Center Retirement/Rehabilitation 145 Safety Kleen Systems Chemical Recycling 140 The Vintage Retirement/Nursing Home 140 Wells Fargo Financial Institution 134 Mayhill Hospital Hospital/Healthcare 130 Good Samaritan Lake Forest Village Retirement Center 130 Denton Good Samaritan Village Retirement Center 125 Jim McNatt Toyota-Dodge Vehicle Sales/Service 125 General Telemarketing International Call Center 120 Ben E. Keith Beers Distributor 103 Business Air/Jetworks Air Center FBO & Aircraft Sales, Paint & Interiors 101 North Texas Hospital Hospital/Healthcare 100 Mayday Manufacturing/Tailwind Tech Aerospace Machined Parts 100 Hulcher Services Railroad Emergency Response 100 DATCU Financial Institution 100 E Instruction Interactive Systems & Student Assmt. 100

Source: Denton Chamber of Commerce, updated July 2012

*Retail employers not included

MAJOR EMPLOYERS



Year

Estimated Population

1960 26,844 1970 39,874 1980 48,063 1990 66,270 2000 82,976 2010 113,383 2011 114,517 2012 115,662 2013 117,397

Source: City of Denton Planning Department

POPULATION

TREND ANALYSIS

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Ca

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The Capital Improvement Program (CIP) represents the City's five-year plan for infrastructure and equipment funding. The CIP is reviewed each year to reflect changing priorities and to provide a framework for identifying capital requirements, as well as to monitor the impact of capital projects on operating budgets and for project scheduling and coordination. The General Government CIP includes non-utility projects such as streets, parks, airport, and other general government facilities that are typically funded through general obligation bonds or certificates of obligation. Internal service funds such as fleet services, communications, technology services, and materials management will also utilize the same financing methods. The last general obligation bond program was approved by voters on February 5, 2005. The remaining $3.9 million from this program was expected to be sold in the FY 2010-11; however, due to the economic downturn, those bonds were postponed until FY 2011-12. Approximately every five years the City will appoint a committee comprised of citizenry to make recommendations to Denton residents for capital improvement needs. The criteria listed below serve as the basis for staff recommendations regarding CIP projects related to general obligation bond sales. 1. Public safety, health and life 2. Service demands 3. Legal requirements, liability or mandate 4. Quality and reliability of current service level 5. Economic growth and development 6. Recreational, cultural, and aesthetic value 7. Funding ability 8. Operating budgets The Utility CIP has historically been funded though revenue bonds and includes projects that benefit the City’s enterprise funds such as electric, water and wastewater. Beginning in June 2010, management elected to discontinue issuing utility system revenue bonds in favor of issuing certificates of obligation. The purpose of this change is to take advantage of interest savings associated with the higher AA bond rating for certificates of obligation. The CIP for solid waste is also financed through the issuance of certificates of obligation. The Public Utilities Board is responsible for developing Utility CIP project recommendations to the City Council for approval. In January 2012, a “streets only” general obligation bond program was presented to the City Council. A Citizens Bond Advisory Committee (CBAC) was formed to provide public input concerning the proposed street improvement projects. The result of the CBAC and staff collaboration was presented as a bond package to the City Council. A vote is scheduled for November 2012. The proposed bond program involves the issuance of $20.4 million in general obligation bonds beginning in FY 2012-13, if approved by Denton residents. These bonds would be dedicated to improving the City’s streets in the community.

CAPITAL IMPROVEMENT PROGRAM 2013-2017



March 27 General Fund Budget Kick-Off: Operating and Capital Improvement Program.

April 30 Departmental budgets due to Budget Office (Operating and CIP).

June 5 July 23

Preliminary Five Year Forecast Meeting with City Council. Certified appraisal rolls due from Denton Central Appraisal District.

July 27 Proposed budget and CIP submitted to City Council and placed on file with the City Secretary.

Submission of certified appraisal roll.

August 2 August 7

City Council Budget Workshop. City Council Budget Workshop.

August 21 Public hearing on budget and City Council Budget Workshop.

August 28 City Council Budget Workshop.

September 11 City Council adopts Capital Improvement Program budget.

CAPITAL IMPROVEMENT PROGRAM CALENDAR 2013-17



TOTAL

PROGRAMMED OTHER CO GO TOTAL

DIVISION AVAILABLE1FUNDING ISSUANCES2 ISSUANCES3

ADOPTED

General Government 114,332,051$ -$ 9,155,000$ 4,080,000$ 127,567,051$

Electric 41,484,102 3,104,302 40,000,000 - 84,588,404

Water 5,630,503 9,481,863 9,000,000 - 24,112,366

Wastewater 7,417,008 4,377,826 13,500,000 - 25,294,834

Solid Waste 6,559,743 361,000 7,811,000 - 14,731,743

Airport 615,265 - 2,000,000 - 2,615,265

TOTAL 176,038,672$ 17,324,991$ 81,466,000$ 4,080,000$ 278,909,663$

1Expected balance as of October 1, 2012 including approximately $91 million in Regional Toll Revenue (RTR) funds received for

the Mayhill Road and Bonnie Brae Street expansion projects.

2Certificates of Obligation (COs) sold for the Electric, Water, Wastewater, Solid Waste and Airport divisions are self-supporting

from revenues associated with these operations. Utililty System Revenue Bonds were previously sold for the Electric, Water and

Wastewater utilities, but Certificates of Obligation (COs) are now utilized due to the substantial cost savings associated with this

financing method.

3Represents first debt sale associated with proposed $20.4 million bond program which will be considered by the voters in

November 2012.

CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET

The Capital Improvement Program (CIP) represents the City's plan for development. The CIP is reviewed each year to reflect

changing priorities, to provide a framework for identifying capital requirements, and to assess the impact of capital projects on

operating budgets and the scheduling and coordination of related projects.

The CIP proposed budget appropriates all available programmed funds, planned funding from other sources, and planned

issuances of new General Obligation (GOs) Bonds and Certificates of Obligation (COs). Available programmed funds include

unspent bond proceeds, internal revenue transfers and outside contributions. Internal revenue transfers and outside

contributions comprise the bulk of planned other funding. Provided below is a summary of the total FY 2012-13 CIP proposed

budget. Further CIP detail for planned issuances is provided in the following pages for each division.

PLANNED



CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY

The General Fund FY 2013-17 five-year CIP includes transportation, vehicles, building projects, police and airport projects.

The decision to propose and ultimately build any capital project must consider the impact that the capital project will have on the operating budget. The operating impact of any capital project included in the CIP has been evaluated, and where necessary, resources were included in the budget to accommodate any associated expenses.

1. Transportation Projects

Major transportation projects scheduled for FY 2012-13 include Bonnie Brae and Mayhill widening; traffic signalization; reconstruction of other miscellaneous roadways and residential streets.

2. Building Projects

The FY 2012-13 building projects include a facility maintenance program for flooring, roof replacements and heating, ventilation and air conditioning (HVAC) systems. The program emphasizes projects that will improve the overall public health and safety of city owned facilities.

3. Police/ Animal Control

Resources are included to begin construction of an animal care and adoption center. A police training facility is programmed as well.

4. Vehicles

Resources are included to fund vehicle replacements for FY 2012-13. An additional medic unit is planned for FY 2012-13.

5. Airport

The Airport has a planned $2 million issuance of CO’s for land acquisition in FY 2012-13. The land acquisition will allow continued development and expansion of the airport.

.

EXECUTIVE SUMMARY GENERAL GOVERNMENT CAPITAL IMPROVEMENT PROGRAM

2013-17



DIV./DEPT. CATEGORY 2012-13Trans Streets 4,000,000$ Trans Public Art 80,000 Trans Traffic Signals 1,100,000

Airport Land Acquisition 2,000,000 Police Training Facility 1,000,000 Fleet Vehicles and Vehicle Replacements 3,000,000

Build/Equip Facility Maintenance Program** 1,500,000 Police Animal Care and Adoption Center 2,555,000 Trans Matching Funds for Road Improvements -

Various Future GO Bond Program - TOTAL 15,235,000$

General Obligation Bonds - New 4,080,000$ Certificates of Obligation - New 11,155,000 Grand Total 15,235,000$

*Does not reflect Available Programmed Funds or ongoing capital projects.

** Facility Maintenance Program is for HVAC, Flooring, Roof Replacements and Facility Improvements.

ADOPTED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

GENERAL GOVERNMENT*CASH REQUIREMENTS



2013-14 2014-15 2015-16 2016-17 TOTAL4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 20,000,000$

80,000 80,000 80,000 80,000 400,000 - - - - 1,100,000 - - - - 2,000,000 - - - - 1,000,000

2,000,000 2,500,000 2,500,000 2,500,000 12,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000

- - - - 2,555,000 9,000,000 - - - 9,000,000

- - 10,000,000 10,000,000 20,000,000 16,580,000$ 8,080,000$ 18,080,000$ 18,080,000$ 76,055,000$

4,080,000$ 4,080,000$ 14,080,000$ 14,080,000$ 40,400,000$ 12,500,000 4,000,000 4,000,000 4,000,000 35,655,000

16,580,000$ 8,080,000$ 18,080,000$ 18,080,000$ 76,055,000$


GENERAL GOVERNMENT*CASH REQUIREMENTS



CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY

The fiscal year 2013-17 Utilities CIP totals $504.5 million as compared to $340.5 million in the 2012-16 CIP. The total 2013-17 CIP reflects a $164.0 million increase compared to the 2012-16 CIP. A comparison of the 2013-17 and 2012-16 CIP, by department, is shown below:

FY 2013-17 FY 2012-16

Electric $302.2 million $171.8 million

Water 86.9 million 64.2 million

Wastewater 85.3 million 77.8 million

Solid Waste 30.1 million 26.7 million

Utilities – Total $504.5 million $340.5 million

Electric’s 5-year CIP increased by $130.4 million compared to the 2012-16 CIP, primarily the result of a $48.3 million increase related to transmission substations and a $56.7 million increase related to transmission line projects for the 69 and 138 Kv system upgrades.

Water’s 5-year CIP increased by $22.7 million, primarily due to the addition of $11.0 million for upgrades to the Lake Lewisville treatment plant, and a $5.6 million increase for transmission line improvements.

Wastewater’s 5-year CIP increased by $7.5 million due primarily to the addition of $5.4 million for replacements and improvements to line infrastructure and $2.1 million for wastewater treatment plant improvements.

Solid Waste’s 5-year CIP increased by $3.4 million, primarily the result of an additional $1.9 million for landfill capital projects, $0.9 million for a grease and grit trap facility, and a $0.9 million increase for vehicle and equipment purchases. The 5-year CIP includes $9.8 million for vehicles, and $4.4 million for equipment.

EXECUTIVE SUMMARY UTILITIES CAPITAL IMPROVEMENT PROGRAM

2013-2017



GROUPASSIGNMENTNUMBERS * CATEGORY 2012-13

1 Automated Meter Reading 2,955,487$ 3 Building Construction 40,000 7 Communications Equipment 445,000 8 Contingency 300,000

13 Distribution Substations 10,139,000 14 Distribution Transformers 1,778,214 19 Feeder Extensions & Improvements 8,883,548 25 New Residential & Commercial 3,131,025 28 Over to Under Conversions 350,000 32 Power Factor Improvement 180,234 40 Street Lighting 139,594 43 Tools & Equipment 136,000 45 Transmission Lines 35,050,000 46 Transmission Substation 20,348,000 50 Vehicles 712,302

TOTAL 84,588,404$

Revenue 3,104,302$ Available Programmed Funds** 41,484,102 Certificates of Obligation - New 40,000,000 Grand Total 84,588,404$

*GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major

category of expense.

**Includes unspent bond proceeds, internal revenue transfers, and outside contributions.


ELECTRIC UTILITYCASH REQUIREMENTS



2013-14 2014-15 2015-16 2016-17 TOTAL2,677,921$ 2,681,313$ 2,850,695$ 425,802$ 11,591,218$

950,000 - - - 990,000 275,000 335,000 290,000 285,000 1,630,000 300,000 300,000 300,000 300,000 1,500,000

9,760,000 8,419,000 4,834,000 4,303,000 37,455,000 1,863,178 1,952,201 2,045,285 2,142,431 9,781,309

10,170,500 9,288,000 7,495,000 6,968,700 42,805,748 3,289,313 3,480,361 3,521,918 3,388,723 16,811,340

350,000 350,000 350,000 350,000 1,750,000 180,000 182,500 185,000 187,500 915,234 159,500 167,100 173,500 180,450 820,144

85,000 85,000 85,000 85,000 476,000 22,000,000 21,055,000 7,820,000 4,290,000 90,215,000 32,622,000 10,180,000 11,290,000 6,870,000 81,310,000

226,000 951,064 845,898 1,421,015 4,156,279 84,908,412$ 59,426,539$ 42,086,296$ 31,197,621$ 302,207,272$

2,571,000$ 3,288,064$ 3,174,898$ 3,741,015$ 15,879,279$ 22,337,412 16,138,475 8,911,398 7,456,606 96,327,993 60,000,000 40,000,000 30,000,000 20,000,000 190,000,000

84,908,412$ 59,426,539$ 42,086,296$ 31,197,621$ 302,207,272$


ELECTRIC UTILITYCASH REQUIREMENTS



GROUP ASSIGNMENTNUMBERS * CATEGORY 2012-13

2 Booster Station 480,000$ 7 Communications Equipment 35,000

12 Distribution System Upgrade 7,105,503 17 Elevated Storage 5,595,000 18 Engineering 60,000 20 Field Services Replacement 2,003,742 24 Miscellaneous 1,025,000 27 Office Furniture/Computer/Equipment 64,000 29 Oversize Lines 200,000 36 Replacement Lines 800,000 38 State Highway Relocations 4,955,000 42 Taps, Fire Hydrants, Meters 936,121 43 Tools & Equipment 40,000 45 Transmission Lines - 48 Plant Improvements 465,000 50 Vehicles 348,000

TOTAL 24,112,366$






WATER UTILITYCASH REQUIREMENTS



2013-14 2014-15 2015-16 2016-17 TOTAL4,150,000$ -$ -$ -$ 4,630,000$

174,000 - - - 209,000 3,137,520 - - - 10,243,023

- - - - 5,595,000 - - - - 60,000

1,241,299 1,408,793 1,539,934 1,424,213 7,617,981 25,000 25,000 25,000 25,000 1,125,000

- - - - 64,000 200,000 200,000 200,000 200,000 1,000,000

1,200,000 1,900,000 2,300,000 2,700,000 8,900,000 6,823,692 5,127,000 2,500,000 2,500,000 21,905,692 1,102,926 1,170,573 1,251,602 1,308,557 5,769,779

25,000 10,000 55,000 10,000 140,000 - 1,000,000 2,600,000 1,950,000 5,550,000

760,000 20,000 1,020,000 10,020,000 12,285,000 425,000 299,000 176,000 588,000 1,836,000

19,264,437$ 11,160,366$ 11,667,536$ 20,725,770$ 86,930,475$

5,275,225$ 8,060,366$ 6,517,536$ 8,075,770$ 37,410,760$ 489,212 100,000 150,000 650,000 7,019,715

13,500,000 3,000,000 5,000,000 12,000,000 42,500,000 19,264,437$ 11,160,366$ 11,667,536$ 20,725,770$ 86,930,475$


WATER UTILITYCASH REQUIREMENTS



GROUPASSIGNMENTNUMBERS * CATEGORY 2012-13

5 Collection System Upgrade 10,963,008$ 16 Drainage Improvements 380,000 20 Field Services Replacement 1,333,500 21 Infiltration/Inflow 2,000,000 24 Miscellaneous 1,050,000 27 Office Furniture/Computer/Equipment 49,000 29 Oversize Lines 200,000 36 Replace Lines 1,357,036 38 State Highway Relocations 2,214,000 42 Taps, Fire Hydrants, Meters 108,290 43 Tools & Equipment 65,000 47 Wastewater Effluent Reuse 25,000 48 Plant Improvements 4,909,000 50 Vehicles 641,000

TOTAL 25,294,834$






WASTEWATER UTILITYCASH REQUIREMENTS



2013-14 2014-15 2015-16 2016-17 TOTAL8,211,812$ 3,305,185$ 1,845,704$ 1,973,895$ 26,299,604$

30,000 55,000 380,000 380,000 1,225,000 1,118,000 - - - 2,451,500 1,500,000 1,500,000 1,500,000 1,500,000 8,000,000

25,000 25,000 25,000 25,000 1,150,000 - - - - 49,000

200,000 200,000 200,000 200,000 1,000,000 2,294,798 3,873,925 4,622,646 4,672,825 16,821,230 3,824,608 3,852,000 1,200,000 1,200,000 12,290,608

108,290 108,290 108,290 108,290 541,450 63,000 90,000 100,000 115,000 433,000 25,000 25,000 25,000 25,000 125,000

6,478,130 135,325 68,000 70,000 11,660,455 626,000 1,116,000 330,000 522,000 3,235,000

24,504,638$ 14,285,725$ 10,404,640$ 10,792,010$ 85,281,847$

4,253,218$ 5,148,540$ 5,693,936$ 5,953,115$ 25,426,635$ 251,420 637,185 210,704 338,895 8,855,212

20,000,000 8,500,000 4,500,000 4,500,000 51,000,000 24,504,638$ 14,285,725$ 10,404,640$ 10,792,010$ 85,281,847$


WASTEWATER UTILITYCASH REQUIREMENTS



GROUPASSIGNMENTNUMBERS ** CATEGORY 2012-13

6 Commercial Collections 370,000$ 11 Disposal / Landfill 4,415,000 24 Administration 900,000 34 Recycling 141,000 37 Residential Collections 260,000 43 Equipment 250,000 50 Vehicles 1,836,000

TOTAL 8,172,000$

Revenue 361,000$ Certificates of Obligation - New 7,811,000 Grand Total 8,172,000$

*Does not reflect Available Programmed Funds or ongoing capital projects.

**GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major



SOLID WASTE *CASH REQUIREMENTS



2013-14 2014-15 2015-16 2016-17 TOTAL130,000$ 240,000$ 150,000$ 260,000$ 1,150,000$

2,175,000 1,930,000 1,580,000 1,550,000 11,650,000 - - - - 900,000

155,000 160,000 165,000 170,000 791,000 270,000 280,000 290,000 300,000 1,400,000 250,000 1,550,000 1,070,000 1,250,000 4,370,000

1,584,000 2,316,000 2,069,000 2,002,000 9,807,000 4,564,000$ 6,476,000$ 5,324,000$ 5,532,000$ 30,068,000$

204,000$ 296,000$ 244,000$ 382,000$ 1,487,000$ 4,360,000 6,180,000 5,080,000 5,150,000 28,581,000

4,564,000$ 6,476,000$ 5,324,000$ 5,532,000$ 30,068,000$


SOLID WASTE *CASH REQUIREMENTS



Fin

an

cial P

olicie

s

I. Budget Period

A. Establishment of Fiscal Year. The City of Denton's fiscal year shall begin on October 1 and end on September 30.

B. Term of Appropriations. "All appropriations that have not been expended or lawfully encumbered shall lapse at the end of the budget year". (Charter Section 8.06)

II. Budget Development

A. Determining Council Priorities. "The budget shall provide a complete financial plan for the fiscal year, and the budget shall be prepared on the basis of policy priorities defined by the Council for the City Manager at least one hundred twenty (120) days before the end of the fiscal year." (Charter Section 8.03)

B. Budget Prepared from Departmental Requests. The City of Denton departments shall prepare budgetary decision packages in a manner directed by the City Manager. Department directors shall indicate funding priorities.

C. Deadline for Budget Submission. "At least thirty (30) days before the date the governing body of the municipality makes its tax levy for the fiscal year." (Charter Section 8.03, revised 2006)

D. Public Hearing on Budget. "The Council shall hold a public hearing on the proposed budget. Any taxpayer of the municipality may attend and may participate in the hearing, which shall be set for a date after the 15th day after the date the proposed budget is filed with the City Secretary but before the date the City Council makes its tax levy. The Council shall provide for public notice of the date, time, and location of the hearing. In addition to this notice, the City Council shall publish notice before the public hearing related to the budget in at least one newspaper of general circulation in Denton County. This notice shall be published no earlier than the thirtieth or later than the tenth day before the date of the public hearing. The City Council shall provide such other notice as may be required by state and all other applicable law. The City Council may make such changes in the budget that it considers warranted by the law or by the best interests of the municipal taxpayers and may increase or decrease the items of the budget provided the total proposed expenditures shall not exceed the total anticipated revenue." (Charter Section 8.04)

E. Truth in Taxation. Budget development procedures will be in conformance with the State law outlined in the Truth in Taxation process. In the event of a tax increase, notices will be provided and public hearings held in conformance to this State law.

F. Adoption of Budget. "The budget shall be finally adopted by the favorable votes of at least a majority of all members of the Council after the conclusion of the public hearing. Should the Council take no final action at the conclusion of the public hearing and before the end of the fiscal year, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council." (Charter Section 8.05)

G. Budget, a Public Record. The budget, budget message, and all supporting schedules shall be a public record in the office of the City Secretary open to public inspection. The City Manager shall prepare sufficient copies of the budget and budget message for distribution to interested persons.

BUDGET AND INVESTMENT POLICIES BUDGET ADMINISTRATION AND DEVELOPMENT



III. Budget Administration

A. Balanced Budget Required. The City of Denton will develop balanced budgets in which current resources (current revenues plus fund balance) will equal or exceed current expenditures. The City will avoid budgetary procedures that balance the budget at the expense of meeting future years' expenses, such as: postponing expenditures, accruing future years' revenues, or rolling over short-term debt. The budget will provide for adequate maintenance and replacement of capital plant and equipment.

B. Funding of Current Expenditures with Current Revenues. The budget will assure that current expenditures are funded with current revenues. Current operating expenses will not be capitalized or funded through the use of long-term debt.

C. Use of Non-Recurring Resources. The City of Denton will use non-recurring resources to fund non-recurring expenditures.

D. Performance Measures and Productivity Indicators. An annual budget where possible will utilize performance measures and productivity indicators.

E. Departmental Budget Reporting. Regular monthly reporting on budgetary status will be provided by departments. The reporting will be structured to provide projected balances for the end of the year.

F. Return on Investment. The Utilities shall transfer to the General Fund a return on investment based upon three and one-half percent (3.5%) of utility revenues. The maximum amount to be transferred will not exceed six percent (6%) of equity in the Electric and Water/Wastewater Utility. Equity is assets net of accumulated depreciation, less the book value of any contributed capital.

IV. Revenue Policies

A. Revenue Goal. The City will try to maintain a diversified and stable revenue system to shelter it from short-run fluctuations in any one-revenue source.

B. Development of Revenue Projection. The City will estimate its annual revenues using an objective, analytical process. The City will project revenues for the next two years and five years; and these projections will be updated annually. Each existing and potential revenue source will be examined annually.

C. User Charges and Fees Required. User charges and fees will be established at a level related to the cost of providing the services. The City will recalculate a full cost of activities supported by user fees to identify the impact of inflation and other cost increases. The City will automatically revise user fees when necessary to adjust for the effects of inflation, program changes, and policy changes.

For Enterprise Funds, the City shall establish user fees and charges that fully support the total direct and indirect cost of the activity. Indirect costs include the cost of administration borne by other operating funds.

The fees shall be reviewed annually and adjusted when necessary to maintain the proper level.

For programs within the General Fund, the City shall establish and maintain fees for those cost activities to be supported by the user. For each supported activity, the City shall establish the level of support The fees shall be reviewed annually and adjusted when necessary to maintain the proper level.

D. Tax Collection. The City will follow an aggressive policy of collecting property tax revenues.

E. Tax Assessment. The City will monitor the appraisal procedures of the Denton Central Appraisal District and provide necessary input to assure that sound appraisal procedures are maintained. Property will be assessed at one hundred percent (100%) of full market value.



V. Reserve Policies

A. Minimum Unassigned Fund Balance. It is the goal of the City to achieve and maintain an unassigned fund balance in the General Fund equal to 20% of the budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. The fund balance level, however, may be reduced to the equivalent of 15% of budgeted expenditures in unusual financial circumstances. However, if such a situation occurs, the City will implement necessary corrective action within a five-year plan to restore the unassigned fund balance to the equivalent of twenty percent (20%) of budgeted expenditures.

B. Non-governmental Fund Balances. The fund balance categories discussed above do not apply to proprietary funds according to GASB 54. While not required by the GASB, the City recognizes the need to apply a minimum balance policy to the proprietary funds maintained by the City. Therefore, the City shall maintain a minimum ending working capital balance (current assets minus current liabilities) of at least eight percent (8%) of budgeted expenditures for each of the proprietary funds. If the working capital level should fall below the desired minimum, the City will implement necessary corrective action with a five-year plan to restore the working capital balance to 8% of budgeted expenditures.

Additionally, the Electric, Water, Wastewater, and Solid Waste funds, minimum rate stabilization reserve balance levels are also established according to the unique operational aspects of each utility. The rate stabilizations funds are intended to minimize the fluctuation in rates due to unforeseen revenue and expenditure variances. The minimum rate stabilization balance is established as 12% of expenses for the Electric and Wastewater funds, 16% for expenses for the Water fund, and 4% of expenses for the Solid Waste fund. If the rate stabilization balance falls below the desired level, the City will implement necessary corrective action within a five-year plan to restore the rate stabilization balances to the levels outlined above.

VI. Budget Amendment and Modification

A. Transfer of Appropriations. "At any time during the fiscal year, the City Manager may transfer any part of the unencumbered appropriation balance or the entire balance thereof between programs or general classifications of expenditures within an office, department, agency, or organizational unit within the same fund. At any time during the fiscal year, at the request of the City Manager, the Council may, by resolution, transfer any part of the unencumbered appropriation balance or the entire balance thereof from one office, department, agency, or organizational unit to another." (Charter Section 8.07)

B. Amending the Budget. "In case of grave public necessity, emergency expenditures to meet unusual and unforeseen conditions, which could not by diligent thought and attention have been included in the original budget, may be authorized by the affirmative vote of at least five (5) of the members of the Council as an amendment to the original budget. In every case where such amendment is made, a copy of the ordinance adopting the amendment shall be filed with the City Secretary, published in the next issue of the official newspaper of the City, and attached to the budget originally adopted." (Charter Section 8.08)

C. Authority to Reduce Appropriations. The City Manager may at any time reduce appropriations for a department, office, or agency.

D. Funds Requiring Appropriations Established by Ordinance. In accordance with generally accepted accounting practices, an appropriations ordinance shall create appropriations for Government Funds. These funds include the General Fund. The remaining funds shall have budgets prepared and submitted to the City Council for approval.



VII. Investment Policy

A. Investment Objectives and Strategies.

It is the policy of the City that, giving due regard to the safety and risk of investments, all available funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, adopted Investment Policy and adopted investment strategies.

In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance) in accordance with the Tex. Gov’t. Code Sec. 2256.005(d) apply for each of the City’s investment strategies:

1. Suitability – Understanding the suitability of the investment to the financial requirements of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds.

2. Safety – Preservation and safety of principal are the primary objectives of the Investment Policy. All investments shall be in high quality securities with no perceived default risk.

3. Liquidity – The City’s investment portfolio will remain sufficiently liquid to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive investment alternative to fixed income instruments.

4. Marketability – Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market “spreads” between the bid and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market.

5. Diversification – Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk.

6. Yield – Attaining a competitive market yield, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio, is the desired objective. The goal of the City’s investment portfolio is to regularly meet or exceed the average rate of return on U.S. Treasury bills at a maturity level comparable to the portfolio’s weighted average maturity in days. The yield of an equally weighted, rolling twelve month moving average of one year U.S. Treasury bill portfolio shall be the minimum yield objective or “benchmark”. Six-month U.S. Treasury bill information is derived from the Federal Reserve Statistical Release H.15 for constant maturities. A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool or money market mutual fund.

The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Although steps will be taken to obtain this goal, the City’s staff will follow the “Prudent Person” statement relating to the standard of care that must be exercised when investing public funds as expressed in the Tex. Gov’t. Code Sec. 2256.006(a-b). The Investment Officers shall avoid any transactions that might impair public confidence in the City’s ability to govern effectively. The governing body recognizes that in adequately diversifying the maturity structure within the portfolio to meet the City’s expenditure needs, occasional measured unrealized losses due to market volatility and rising interest rates are inevitable, and must be considered within the context of the overall portfolio’s investment return. The prudence of the investment decisions shall be measured in accordance with the tests set forth in the Tex. Gov’t. Code Sec. 2256.006(b).



B. Investment Strategy for Specific Fund Groups.

In order to better diversify, maximize interest earnings and otherwise meet stated objectives, fund groups may be combined into one or more internal investment pools. Although fund monies may be combined into a single asset portfolio, proportional fund ownership will be accounted for separately. The City also maintains separate portfolios for some individual funds or groups of funds that are managed in accordance with the terms of this Policy and by the corresponding investment strategies listed below.

1. Investment Pool Strategy – The City’s Investment Pool is an aggregation of the majority of City Funds which includes tax receipts, enterprise fund revenues, fine and fee revenues, reserve funds for outstanding utility system revenue bonds, as well as some, but not necessarily all, bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet anticipated daily cash needs for the City’s operations, capital projects and debt service. In order to ensure the ability of the City to meet obligations and to minimize potential liquidation losses, the dollar-weighted average stated maturity of the investment pool shall not exceed 1.5 years or 550 days. The objectives of the portfolio are to :

A. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists.

B. Ensure that anticipated cash flow needs are matched with adequate investment liquidity.

C. Limit market and credit risk through diversification.

D. Attain the best feasible yield commensurate with objectives and restrictions set forth in the Investment Policy actively managing the portfolio to meet or exceed the twelve month moving average yield on a one year month U.S. Treasury bill as derived from the Federal Reserve Statistical Release H.15 for constant maturities.

2. Bond Funds Strategy – Occasionally, separate non-pooled portfolios are established with the

proceeds from bond sales in order to maximize earnings within the constraints of arbitrage regulation. The objectives of the portfolios are to:

A. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists.



D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy and bond ordinance by actively managing the portfolio to meet or exceed the bond yield.

3. Endowment Fund Strategy – Funds received as gifts to the City with instructions that the income

generated by the investment of said funds be used for specific purposes are invested as separate non-pooled portfolios in order to maximize return. The objectives of the portfolio are to:




D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy.



4. Trust and Escrowed Funds & Security Deposit Strategy – Funds that are held outside the City by a trust or escrow agent or as a security deposit but belonging to the City are governed by their respective trust, escrow, or security deposit agreement and are subject to the provisions of the Investment Policy. The objectives of the portfolios are to:




D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy and the trust/escrow agreement.



Glo

ssary

The Annual Program of Services contains specialized and technical terminology that is unique to public finance and budgeting. To assist the reader of this document in understanding these terms, a budget glossary has been included in the document.

Accrual Basis. The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows.

Accrued Expenses. Expenses incurred but not due until a later date.

Administrative Services. Administrative Services charges are allocated to all Enterprise Fund activities (e.g., electric, water/wastewater and solid waste) for indirect management and administrative support given by general fund departments.

Administrative Transfer. An inter-fund transfer designed to recover General Fund expenditures conducted on behalf of Proprietary funds.

Ad Valorem Taxes. (Current) All property, real, personal, tangible, intangible, annexations, additions, and improvements to property located within the taxing unit’s jurisdiction, which are subject to taxation on January 1 of the current fiscal year. Each year, by ordinance, the City Council exempts taxes on automobiles and other items from the tax levy. Following the final passage of the appropriations ordinance, City Council sets the tax rate and levy for the fiscal year beginning October 1 and continuing through the following September 30th.

Ad Valorem Taxes. (Delinquent) All taxes are due on receipt of bill and are delinquent if not paid before February 1 of the fiscal year in which they are imposed, except when the taxing unit postpones the delinquency date due to late mailing of tax bills or successful rollback elections.

Ad Valorem Taxes. (Penalty and interest) A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of the month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. However, the delinquent tax on July 1 incurs a total penalty of twelve percent (12%) of the amount of the delinquent tax without regard to the number of months the tax has been delinquent.

Appropriation. A legal authorization granted by a governing body to make expenditures and to incur obligations for specific purposes.

Appropriable Fund Balance. The cash remaining from the prior year which is available for appropriation and expenditure in the current year.

Appropriation Ordinance. The official enactment by the City Council to establish legal authority for City officials to obligate and expend resources.

Assessed Valuation. A value that is established for real or personal property for use as a basis for levying property taxes. (Note: Property values are established by the Denton Central Appraisal District.)

Balanced Budget. A budget in which estimated revenues equal estimated expenditures.

Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds. These are most frequently used for construction of large capital projects, such as buildings, streets and bridges.

Budget. A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice. Sometimes it designates the financial plan presented to the governing body for adoption and sometimes the financial plan finally approved by that body. It is usually necessary to specify whether the budget under consideration is preliminary and tentative or whether it has been approved by the governing body.

BUDGET GLOSSARY



Budget Adjustments. A legal procedure utilized by the City staff and City Council to revise a budget appropriation.

The City of Denton's Charter requires City Council approval through the adoption of a supplemental appropriation ordinance (which specifies both the source of revenue and the appropriate expenditure account) for any inter-fund adjustments. City staff has the prerogative to adjust expenditures within a departmental budget.

Budget Calendar. The schedule of key dates or milestones, which the City departments follow in the preparation, adoption, and administration of the budget.

Budget Document. The instrument used by the operational authority to present a comprehensive financial program to the City Council.

Budget Message. The opening section of the budget, which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and the views and recommendations of the City Manager.

Budgeted Funds. Funds that are planned for certain uses but have not been formally or legally appropriated by the governing body.

Cash Basis. A basis of accounting under which transactions are recognized only when cash changes hands.

Cash Management. The management of cash necessary to pay for government services, while investing temporary cash excesses in order to earn interest revenue. Cash management refers to the activities of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking relationships, and investing funds in order to achieve the highest interest and return available for temporary cash balances.

CDBG. Community Development Block Grant.

CDBG-R. Community Development Block Grant Recovery Fund.

Cost. (1) The amount of money or other consideration exchanged for property or services. (2) Expense.

Cost Accounting. That method of accounting, which provides for assembling and recording of all the elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job.

Current Taxes. Taxes that are levied and due within one year.

CWA 319 Grant. Nonpoint Source Water Quality Management Planning Implementation Grant.

Debt Services. The City's obligation to pay the principal and interest of all bonds and other debt instruments according to a pre-determined payment schedule.

Deficit. (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting period.

Delinquent Taxes. Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached.

Department. An administrative segment of the City, which indicates management responsibility for one functional area. Departments are the basic units of the budget upon which divisions are composed.

Depreciation. The process of estimating and recording the lost usefulness, expired useful life or diminution of service from a fixed asset that cannot or will not be restored by repair and will be replaced. The cost of the fixed asset's lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its useful life.

Division. An administrative segment of the City, which indicates management responsibility for an operation or a group of related activities within a functional area.

EECBG. Energy Efficiency and Conservation Block Grant.



Encumbrances. Commitments related to unperformed (executory) contracts for goods or services.

Enterprise Fund. A fund established to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) for providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Examples of Enterprise Funds are those for water, gas, and electric utilities; swimming pools; airports; parking garages; and transit systems.

Expenditure. This term refers to the outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expense is actually paid. This term applies to all funds. Note: An encumbrance is not an expenditure. An encumbrance reserves funds to be expended.

Expenses. Charges incurred (whether paid immediately or unpaid) for operation, maintenance, interest and other charges.

Federal Energy Regulatory Commission (FERC). This is the federal commission governing public utilities and licensing. The commission sets the standards and guidelines for accounting and reporting.

Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Denton has specified October 1 to September 30 as its fiscal year.

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, machinery and equipment.

Franchise Fee. This is a charge paid for the use of City streets and public right of way and is in lieu of all other municipal charges, fees, street rentals, pipe taxes or rentals, easement or other like franchise fees, inspections, fees, and/or charges of every kind except only Ad Valorem and special assessment taxes for public improvements (e.g., gas, telephone, cable TV, and banks).

Full-time Equivalent (FTE). A unit of measure based on the number of hours that an employee works during the fiscal year. One FTE is equal to 2080 hours.

Function. A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible.

Fund. An accounting entity that has a set of self balancing accounts and that records all financial transactions for specific activities or government functions. Eight commonly used funds in public accounting are: general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, trust and agency funds, internal service funds, and special assessment funds.

Fund Balance. Fund balance is the excess of assets over liabilities and is therefore also known as surplus funds.

General Fund. The fund used to account for all financial resources except those required to be accounted for in another fund.

General Obligation Bonds. Bonds that finance a variety of public projects, such as streets, buildings, and improvements. The repayment of these bonds is usually made from the General Debt Service Fund, and these bonds are backed by the full faith and credit of the issuing government.

Generally Accepted Accounting Principles (GAAP). Uniform minimum standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. They encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. They provide a standard by which to measure financial presentations.

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, General Debt Service).



Grants. Contributions or gifts of cash or other assets from another government to be used or expended for a

specified purpose, activity, or facility.

HOME. HOME Investment Partnership Grant.

Hotel/Motel Tax. A tax levied upon the cost of occupancy of any room or space furnished by any hotel where such costs of occupancy is at the rate of two dollars ($2.00) or more per day. The law authorizes a room tax of not more than seven percent (7%) of the consideration paid by the occupant of such room to the hotel. This is budgeted in the Tourist and Convention Fund.

HPRP. Homelessness Prevention and Rapid Re-housing Program.

Income. A term used in proprietary fund type accounting to represent (1) revenues or (2) the excess of revenues over expenses.

Inter-fund Transfers. Amounts transferred from one fund to another to recover the charge for administrative services.

Internal Service Fund. Funds used to account for the financing of goods or services provided by one department to another department on a cost reimbursement basis (for example, the Technology Services Fund and the Materials Management Fund).

Investments. Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. The term does not include fixed assets used in governmental operations.

Levy. (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments, or service charges imposed by a government.

Long Term Debt. Debt with a maturity of more than one year after the date of issuance.

Mixed Beverage Tax. A tax imposed on the gross receipts of a Licensee for the sale, preparation, or service of mixed beverages or from the sale of ice or non-alcoholic beverages and consumed on the premises of the permittee.

Modified Accrual Basis. The accrual basis of accounting adapted to the governmental fund type spending measurement focus. Under it, revenues are recognized when they become both "measurable " and "available to finance expenditures of the current period." Expenditures are recognized when the related fund liability is incurred except for (1) inventories of materials and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period, but for which larger than normal accumulations must be disclosed in the notes to the financial statements; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long term debt which are generally recognized when due.

Object Code. Expenditure classification according to the types of items purchased or services obtained; for example, personal services, materials & supplies, and operations.

Operating Budget. Plans of current expenditures and the proposed means of financing them. The annual operating budget (or, in the case of some states governments, the biennial operating budget) is the primary means by which most of the financing acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Even where not required by law, however, annual operating budgets are essential to sound financial management and should be adopted by every government.

Operating Expenses. Fund expenses which are directly related to the fund's primary service activities.

Operating Grants. Grants which are restricted by the grantor to operating purposes or which may be used for either capital or operating purposes at the discretion of the grantee.

Operating Income. The excess of fund operating revenues over operating expenses.

Operating Revenues. Fund revenues, which are directly related to the fund's primary service activities. They consist primarily of user charges for services.



Operating Transfers. All inter-fund transfers other than residual equity transfers.

Ordinance. A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Ordinarily, the statutes or charter will specify or imply those legislative actions, which must be by ordinance and those which may be by resolution. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, universally require ordinances.

Other Post-Employment Benefits (OPEB). Post-employment benefits provided to retired employees, other than pension benefits. These benefits for the City of Denton include Medical, Prescription, Dental, and Vision. GASB 45 requires the recognition of the costs of these benefits over the service period of the employee.

Other Financing Sources. Governmental fund general long term debt proceeds, operating transfers out, and material proceeds of fixed asset dispositions. Such amounts are classified separately from revenues.

Overlapping Debt. The proportionate share of the debts of local governments located wholly or in part within the limits of the reporting government, which must be borne by property within each government.

Payment in Lieu of Taxes. Payments made only by the electric division for Franchise Fees (4% of gross revenue) and Return on Investment (3.5% of gross revenue), both capped.

Performance Audits. Examinations intended to assess (1) the economy and efficiency of the audited entity's operations and (2) program effectiveness, the extent to which program objectives are being attained.

Productivity Measures. Productivity measures should reflect how well a program is performing its activities to meet the needs of the public and the organization. They should measure productivity, effectiveness, efficiency or the impact of a service provided. While activity measures indicate "how much" activity the division/department is performing, productivity measures identify "how well" the division/department is performing.

Program Description. Describes the nature of service delivery provided at this level of funding. It clearly explains how service delivery will be different from the prior budget year.

Program Goals. Program goals describe the purpose or benefit the division/department plans to provide to the community and/or organizations it serves. Goals identify the end result the division/department desires to achieve with its activities, but goals are often ongoing and may not be achieved in one year.

Program Objectives. Program Objectives are quantifiable steps toward accomplishing stated goals. They should have a specific time frame or measurable achievement. Objectives should be able to be reached or completed within the current fiscal year. Objective statements are not required for every activity performed, but should focus on the major steps necessary for achieving established goals.

Property Tax. Property taxes are levied on both real and personal property according to the property's valuation and the tax rate.

RAMP Routine Airport Maintenance Program.

Reserve. An account to use 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.

Residual Equity Transfers. Non-recurring or non routine transfers of equity between funds.

Return on Investment. Return on Investment (ROI) involves the transfer of funds from the Utility System Fund to the General Fund on the discretionary basis, which shall not be more than six percent (6%) of the net investment. Current ROI is based on 3.5% of rate revenue. The intent of the discretionary transfer is to reimburse the citizenry by contributing revenues to the General Fund, thereby easing the ad valorem tax burden.

Revenue Bonds. Bonds whose principal and interest are payable exclusively from earnings of an Enterprise Fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the Enterprise Fund's property.



Revenues. (1) Increases in governmental fund type net current assets from other than expenditure refunds and

residual equity transfers. Under NCGA Statement 1, general long term debt proceeds and operating transfers in are classified as "other financing sources" rather than revenues. (2) Increases in proprietary fund type net total assets from other than expense refunds, capital contributions, and residual equity transfers. Under NCGA Statement 1, operating transfers in are classified separately from revenues.

Sales Tax. A general "sales tax" is levied on persons and businesses selling merchandise or services in the city limits on a retail basis. The categories for taxation are defined by state law. Monies collected under authorization of this tax is for the use and benefit of the City; however, no city may pledge anticipated revenues from this source to secure the payment of funds or other indebtedness.

Shared Revenues. Revenues levied by one government but shared on a pre-determined basis, often in proportion to the amount collected at the local level, with another government or class of governments.

SHSP. State Homeland Security Program Grant.

SHSP-LEAP. State Homeland Security Program Grant – Law Enforcement Activity Program.

Street Cuts. These revenues are derived by the Street Department for the repairing of the street following the construction of various utility companies (e.g., gas, telephone, water and sewer).

Tax Rate. The amount of tax stated in terms of a unit of the tax base; for example, $.50 per $100 (one hundred dollars) assessed valuation of taxable property.

Tax Rate Limit. The maximum rate at which a government may levy a tax. The limit may apply to taxes raised for a particular purpose, or to taxes imposed for all purposes, and may apply to a single government, to a class of governments, or to all governments operating in a particular area. Overall tax rate limits usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given area.

Tax Roll. The official list showing the amount of taxes levied against each taxpayer or property. Frequently, the tax roll and the assessment roll are combined, but even in these cases the two can be distinguished.

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.

Transfer of Construction Bond Funds. These revenues are payments to the General Fund from the Bond Fund for General Fund labor expenditures on bond financed projects.

Trial Balance. A list of the balances of the accounts in a ledger kept by double entry with the debit and credit balances shown in separate columns.

Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purchases.

UASI. Urban Areas Security Initiative.

UASI-LEAP. Urban Areas Security Initiative – Law Enforcement Activity Program.

Working Capital. Budgeted working capital is calculated as a fund’s current assets less current liabilities and outstanding encumbrances.



ADA/EOE/ADEA 215 E. McKinney St. Denton, TX 76201

TDD: (800) 735-2989 [email protected]

www.cityofdenton.com Published 12/2012