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Ord 592-2012 Adopting The Budget for 2012-2013FY.pdf
CITY OF ANNA, TEXAS Ordinance No. - A D 12 Ordinance Adopting the Budget For the 2012 - 2013 Fiscal Year AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF ANNA FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013 AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF ANNA FOR THE 2012 - 2013 FISCAL YEAR. WHEREAS, the budget, appended here as Exhibit A, for the fiscal year beginning October 1, 2012 and ending September 30, 2013, was duly presented to the City Council by the City Manager and a public hearing was ordered by the City Council and a public notice of said hearing was caused to be given by the City Council and said notice was published in the Anna -Melissa Tribune and said public hearing was held according to said notice; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA THAT: SECTION 1. The appropriations for the fiscal year beginning October 1, 2012, and ending September 30, 2013 for the support of the general government of the City of Anna, Texas, be fixed and determined for said terms in accordance with the expenditures shown in the City's fiscal year 2012 - 2013 budget, a copy of which is appended hereto as Exhibit A; SECTION 2. The budget, as shown in words and figures in Exhibit A, is hereby approved in all respects and adopted as the City's budget for the fiscal year beginning October 1, 2012 and ending September 30, 2013. SECTION 3. In addition to Exhibit A, and in accordance with Section 7.08 of the Anna City Charter, the budget also includes a contingency appropriation of $110,894. All expenditures from this contingency appropriation shall be in accordance with Section 7.08 of the Anna City Charter. PASSED AND APPROVED this, the 4th day of September, 2012. Ayes & Nays _ Abstained ATTESTED: Cly Secretary, Natha Wilkison Mayor, Mike ORD. -2012 Adopting Budget for 2012-2013 FY PAGE 1 of 1 09-04-12 n2 Y{OUR} HOMETOWN FY 2013 ADOPTED BUDGET THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR’S BUDGET BY $91,047 OR 3.86%, AND OF THAT AMOUNT, $85,207.92 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX TOLL THIS YEAR F Y 2 0 1 3 A d o p t e d B u d g e t 2 Table of Contents INTRODUCTION DEBT SERVICE FUND SUMMARY GENERAL FUND SUMMARY Budget Letter 3 City Organizatfon 17 Commitment and Vision 19 Statfstfcs 21 Budget Process 22 Budget Calendar 24 Fund Structure 25 Revenue 27 Expense 31 Departmental Summaries 32 Restricted Revenue Trusts 58 Revenue 62 Expense 63 Debt Schedule 64 COMPONENT UNITS UTILITY FUND SUMMARY SUPPLEMENTAL INFORMATION Fiscal Policies 89 Debt Management Plan 103 Capital Improvements Plan 124 Bond Ratfng 170 Budget Informatfon from City Charter 173 Budget Ordinance (included after adoptfon in Sept.) 180 Revenue 72 Expense 73 Departmental Summaries 74 Outstanding Debt 80 CAPITAL IMPROVEMENTS FUND Project Summaries 66 Five Year Summary 70 Summary of Units 83 Community Development Corporatfon 84 Economic Development Corporatfon 86 F Y 2 0 1 3 A d o p t e d B u d g e t 3 Budget Letter July 24, 2012 Honorable Mayor and Council Members: In accordance with the City Charter and the laws of the state of Texas governing home rule citfes, please ac- cept this letter as my budget transmittal and executfve summary of the fiscal year (FY) 2013 budget. The An- nual Budget and Plan of Municipal Services is the most important document that is adopted by the City Coun- cil each year. In developing this document, as always, a significant amount of tfme is devoted by City Council Members and City Staff. An Annual Budget is developed through an extensive process of reviewing requests received from various City departments then prioritfzing those requests in a manner that utflizes resources effectfvely, within fiscal constraints, while working to achieve goals set out by the City Council. GOALS The City Council has proposed a list of strategic goals that the City of Anna should strive toward on an ongo- ing basis. These goals were developed through a strategic planning process held in 2009 and have been adopted by the City Council. The strategic goals established by the City Council include the following: Promote the development of a full service community Encourage small business development Foster an environment that encourages multf-generatfonal living Exercise responsible stewardship over natural resources, and promote sustainable development Promote a strong sense of community pride Facilitate access to state-of-the-art technology Support the growth of a high quality educatfon system Enhance the safety and security of our citfzens The Budget includes a copy of those goals along with the adopted Commitment Statement. VALUE OF TAXABLE PROPERTY According to the most recent populatfon estfmates published by the North Central Texas Council of Govern- ments, the City of Anna has grown by 600% since the year 2000. Since 2008, the growth of the natfonal and local economy has slowed significantly. Uncertainty surrounding employment, housing prices, and our na- tfonal economy has had a significant effect on our local economy here in Anna. The most dramatfc impact of this economic uncertainty can be observed in the recent multf -year decline in local property values. This decline in property values has a direct and significant impact on our ability to fund the programs and infrastructure that we have invested so heavily in over the past decade. Over 55% of our General Fund revenue is derived from property taxes, and, with the exceptfon of the most recent year, the taxable value of existfng propertfes has declined an average of over 3% per year since 2008. This equates to a loss of over $42 million in taxable value based on a year to year comparison. Even with over $35 million in new buildings and property added to the tax roll since 2008, the taxable value of the 2012 tax role is nearly F Y 2 0 1 3 A d o p t e d B u d g e t 4 Budget Letter 2% lower than the 2008 roll. In additfon, the average value of a residentfal homestead in Anna has declined by 11% since 2008. *Total Taxable Value for 2012 includes 15 properties with a value of $1,615,685 that are still under appeal as of July 23, 20 12. Based on the most recent 2012 property appraisals, it appears that existfng propertfes have retained their value since 2011, and we are guardedly optfmistfc that this could mark the beginning of a trend toward mar- ket appreciatfon. In additfon we have observed a significant increase in the number of single family homes building permits issued since the beginning of the year. While this will most certainly add the city’s tax base, it will also increase the demand for municipal services that are funded primarily by property taxes. EMPLOYEE PAY AND BENEFITS The City of Anna has historically tried to adjust civilian employee wages based on changes in the Consumer Price Index for the Dallas/Fort Worth region. In FY 2009-10 civilian employees earning less than $40,000 per year received a 2% merit increase. Eligible police officers received their scheduled step pay increase. No merit or cost of living increases were included for civilian employees earning more than $40k per year. In FY 2010-11, a 2% merit increase was approved for all civilian employees, and eligible police officers received their scheduled step pay increase. In FY 2011-12, civilian employees received a one-tfme, non-recurring pay- ment equal to 2% of the employee’s base annual pay, and eligible police officers received their scheduled step pay increase. Over the last 24 months (May 2010 - May 2012), the CPI rose 4.9 percent (3.3% from May 2010-May 2011, and 1.6% from May 2011 – May 2012). The proposed FY 13 budget includes a 3% cost of living increase for civilian employees. Funding is also included for eligible police officers to receive their scheduled step pay in- crease. The City pays for health insurance for all City employees through a plan provided by the Texas Municipal 2008 2009 2010 2011 2012 Residentfal Homestead $ 125,137 $ 120,237 $ 115,135 $ 112,269 $ 111,927 Existfng Propertfes $ 369,504,964 $ 359,503,795 $ 354,749,323 $ 363,964,366 New Propertfes Added $ 8,648,746 $ 5,616,009 $ 8,281,764 $ 12,986,568 *Total Taxable Value $ 383,935,013 $ 378,153,710 $ 365,119,804 $ 363,031,087 $ 376,578,308 Decline/increase in Tax- able Value of Existfng Propertfes over the Pre- vious Year $ (14,430,049) $ (18,649,915) $ (10,370,481) $ 933,279 2008 to 2012 Net Taxable Property Value F Y 2 0 1 3 A d o p t e d B u d g e t 5 Budget Letter League Intergovernmental Employee Benefits Pool (TMLIEBP). In FY 2011-2012, the City paid TMLIEBP $408.36 per month for health insurance for each employee and additfonal $80 per month contributfon to each employee’s TMLIEBP Health Reimbursement Account (HRA) for a total health insurance payment of $488.36 per month. Funds in an employee’s HRA may only be used for pay for medical related expenses. TMLIEBP has advised us that the cost of our current health plan will increase 5% for the upcoming plan year. Last year, TMLIEBP began offering member citfes the optfon to purchase health insurance through a Consum- er Centered Pool Plan (CCPP). The CCPP offers eight health insurance plan optfons. The cost of each plan op- tfon varies depending on the deductfble and co-pay. The proposed FY 2012-13 budget would move employ- ee health coverage from a standard one-size fits all plan to a the TMLIEBP Consumer Centered Pool Plan. The City will pay $510 per month for health insurance for each employee. Employees will be required to select one of the CCPP plans and have the optfon to purchase additfonal spouse or dependent coverage. Any posi- tfve difference between the city’s contributfon and the cost of the plan selected by the employee will be de- posited into an employee Health Reimbursement Account (HRA) or Health Savings Account (HSA). This new approach will give employees greater control over and more responsibility for their health insurance choices. GENERAL FUND The General Fund is the City’s main operatfng fund, which is used to account for all financial resources except those required to be reported in another fund. The General Fund receives revenues from property taxes, permits, franchise taxes, sales tax, fines, fees for services, interest income, and several other miscellaneous general revenue sources. The General Fund includes the following departments: Revenue Revenues in the General Fund consist of a number of sources. As can be seen in the table below, the bulk of revenue, 57% is derived from property taxes. The significant increase in Development revenue is primarily attributable to expected increase in the number of permit applicatfons for single family homes. Intergovern- mental revenue is derived from allocatfons from the EDC and CDC to pay a portfon of the Assistant to the City Manager and Parks Superintendent salaries; and from the Anna ISD to pay for a portfon of the maintenance costs of the ball fields at Slayter Creek Park. Administratfon City Council City Manager City Secretary City Attorney Finance Development Ambulance Fire Animal Control Police Municipal Court Parks Streets F Y 2 0 1 3 A d o p t e d B u d g e t 6 Budget Letter The City receives the certffied tax roll from Collin County. The estfmated taxable value for 2012 is $376,533,308. The current property tax rate of $0.650332 cents per $100 of taxable assessed valuatfon is to remain the same. The total tax rate is divided between the General Fund and the Tax Interest and Sinking or Debt Service Fund with $0.559367 cents being utflized by the General Fund and $0.090965 cents being utf- lized by the Debt Service Fund. By adoptfng the same tax rate as last year, property taxes due on the average residentfal homestead will decline by $2.22. TYPE ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE Property Tax $ 2,037,838 $ 2,030,335 $ 2,030,335 $ 2,106,203 4% Sales Tax $ 542,239 $ 460,000 $ 494,000 $ 500,000 9% Development $ 241,652 $ 122,300 $ 397,300 $ 371,300 204% Franchise Tax $ 343,304 $ 335,000 $ 335,000 $ 340,000 1% Court $ 85,726 $ 131,175 $ 85,225 $ 130,300 -1% Intergovernmental $ 91,400 $ 93,600 $ 93,600 $ 96,450 3% Other $ 101,567 $ 103,294 $ 93,288 $ 83,929 -19% Fire $ 63,048 $ 107,500 $ 57,000 $ 78,000 -27% Total $ 3,506,774 $ 3,383,204 $ 3,585,748 $ 3,706,182 10% Total Tax Rate M&O Rate I&S Rate Average Taxable Value of a Resi- dence Homestead Annual Tax Im- posed on the Average Home- stead FY 2012 Adopted Budget 0.650332 0.559367 0.090965 $112,269 $730.12 FY 2013 Proposed Budget 0.650332 0.559367 0.090965 $111,927 $727.90 Effective Tax Rate 0.646813 0.555848 0.090965 $111,927 $723.96 Roll Back Rate 0.691646 0.600681 0.090965 $111,927 $774.14 F Y 2 0 1 3 A d o p t e d B u d g e t 7 Budget Letter Expenditures Expenditures in the Budget for the General Fund amount to $3,706,182. This represents a 10% increase com- pared to the amount budgeted in FY 2011-12. The budgeted expenses will fund some enhancements to ex- istfng services, and are a response to our contfnued growth and development. I have included a discussion of the significant budgetary issues affectfng the various departments. DEPARTMENT ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE ADMINISTRATION $99,460 $102,714 $112,025 $112,706 10% CITY COUNCIL $16,628 $15,710 $17,550 $19,998 27% CITY MANAGER $238,143 $239,143 $233,757 $243,483 2% CITY SECRETARY $85,854 $103,611 $86,758 $106,339 3% CITY ATTORNEY $124,305 $120,000 $165,000 $87,000 -28% FINANCE $241,960 $225,173 $217,756 $243,892 8% DEVELOPMENT $364,765 $310,914 $377,622 $380,439 22% ANIMAL CONTROL SERVICES $51,877 $51,338 $51,338 $56,643 10% FIRE $433,153 $442,244 $546,685 $598,249 35% AMBULANCE $102,793 $102,793 $114,800 $114,800 12% POLICE $1,182,487 $1,170,583 $1,189,421 $1,241,956 6% MUNICIPAL COURT $78,798 $86,168 $78,698 $104,148 21% PARK $107,496 $128,119 $131,130 $135,292 6% STREET $304,386 $259,500 $268,260 $261,237 1% Total $3,432,105 $3,358,010 $3,590,800 $3,706,182 10% F Y 2 0 1 3 A d o p t e d B u d g e t 8 Budget Letter Significant Budgetary Issues Development Inspectfon Fees. The 22% increase in the Development Department budget is driven primarily by the significant increase in the number of single family homes being constructed. The City uses a third par- ty building inspectfon company for building inspectfon services. Based on the current constructfon trend we are estfmatfng a 113% increase in the fees paid to our inspectfon contractor. Inspectfon fees collected by the City from contractors and home builders will off-set this increase and are also expected to increase signifi- cantly. Services Provided by Collin County. The City Contracts with Collin County for a number of services including, ambulance, animal control, dispatch, jail, child advocacy, and health inspectfons. The increases in Ambulance and Animal Control Budgets are directly attributable to Collin County’s decision to increase the cost of these services provided to the city. The Police Department budget has also been impacted by increases in Collin County’s charges for dispatch and child advocacy services. Fire Department Staffing and Volunteer Stfpend: The FY 2013 budget includes funding to improve Fire De- partment supervision and response to calls for service, and to address gaps in coverage. The additfonal staffing provided in this budget will provide better around the clock fire and EMS response. The FY 12 budget included two full-tfme fire fighter positfons. The FY 13 budget reclassifies these two positfons as Fire Cap- tains and includes funding for one additfonal full-tfme Fire Captain. Funding is also included for several part- tfme fire fighters to provide coverage on average of 60 hours per week. The three full -tfme captains will be assigned to work traditfonal 24 hour shifts which will provide more consistent response and management of physical and human resources on a 24 hour a day basis. The department will contfnue to use part -tfme fire- fighters during the day and volunteers in the evenings and weekends. Volunteers assigned to work an even- ing or weekend shift will received a stfpend of $20 per shift. Funding to pay an average of 28 volunteer stf- pends per week is included in the budget. The stfpend will only be paid to volunteers that are scheduled to work shifts during the week. Unscheduled volunteers who show up for a shift are welcome but will not re- ceive the stfpend. Personal Protectfve Equipment Purchase: The Fire Department budget includes $30K to purchase new and/ or replace personal protectfve equipment worn by the paid and volunteer fire fighters. Reassignment of Existfng Personnel: In order to better align the needs of the City with our existfng personnel, code enforcement responsibilitfes are being transferred to the Fire Department where the Fire Marshall will assume responsibility for the code enforcement program. The Code Enforcement Officer positfon will be re- classified as an Administratfve Assistant in the Planning and Development Department. Prior to 2009 when Anna was growing rapidly, the City employed a full-tfme permit clerk. When development actfvity declined, the permit clerk was reassigned to fill a vacancy in the finance department. Development actfvity has again surged and this reclassificatfon will provide the Planning Department with additfonal clerical help without the additfon of a new employee. City Attorney Cost Allocatfon: In the FY 2012 budget all legal fees from the City’s Attorney were charged to the City Attorney budget in the General Fund. In the FY 2013 budget we have reallocated the budget for le- F Y 2 0 1 3 A d o p t e d B u d g e t 9 Budget Letter gal fees associated with prosecutfng cases in municipal court to the Municipal Court budget in order to more accurately reflect the true cost of operatfng the court. We have also reallocated a portfon of the City Attor- ney’s normal administratfve support legal fees to the Utflity fund since a portfon of their work supports the operatfons of this fund. Investment Advisor: Since Staff does not currently possess the tfme or the expertfse to actfvely manage an investment portiolio, the City has historically taken a relatfvely passive approach to investment of financial assets. The Finance Department budget includes $9,000 to retain the services of an investment advisor. The advisor selected by the city will have specific expertfse in the management of governmental investment portiolios and compliance with the Public Funds Investment Act. By using an investment advisor to actfvely manage our portiolio, we antfcipate an increase in interest earnings to offset the additfonal cost. The City’s depository banking contract expires in the summer of 2013. The Finance Department budget includes $6,000 to retain the services of an investment advisor to manage the RFP and negotfate a new depository con- tract. This is a one-tfme fee that will provide the City with a stronger banking contract and improved banking services. Defibrillator Purchase: The Police Department budget includes the purchase of two portable defibrillators which will be carried in the vehicles of the officers on duty. DEBT SERVICE FUND The Debt Service Fund is a special fund established to account for the accumulatfon and expenditure of re- sources for payment of principal and interest on tax supported bond debt. Bonded debt includes general ob- ligatfon bonds, certfficates of obligatfons and combinatfon tax and revenue certfficates of obligatfon. The principal sources of revenue are assessed property taxes as established by ordinance, and transfers from oth- er funds. Revenue Revenues required to pay the City’s outstanding debt are transferred to this fund and all monies are restrict- ed to debt payments only. The revenue generated from the interest and sinking (I&S) portfon of the tax rate (0.090965 cents per $100 valuatfon) is used to fund the majority of our debt service obligatfons. Total reve- nue from the debt service tax rate is budgeted at $342,513. In recent years, the City has transferred money from the Utflity Fund to pay the principle and interest on the tax pledged debt instruments that have funded infrastructure and capital equipment in that fund. In the FY 2013 budget, debt expense for water and sewer capital projects will remain in the Utflity Fund budget. In order to further reduce the debt service tax rate, this fund is being subsidized with unspent revenue from the 2005 Certfficates of Obligatfon bond issue. The payment this year is $114,281 as recommended in our debt management strategy prepared by the city’s financial advisor First Southwest and presented to the City Council in June of this year. The subsidy to the debt service fund from the 2005 CO bond issue will contfnue through FY 2014. In 2014, the City will need to initfate a series of planned refundings of existfng debt to sta- bilize the debt service portfon of the City’s tax rate consistent with our debt management strategy. F Y 2 0 1 3 A d o p t e d B u d g e t 10 Budget Letter Expenditures Total expenditures in the Debt Service fund are $456,793. The budget pays for the principle and interest payments on one vehicle note and five bond issues. CAPTIAL PROJECTS FUND Revenue Total new revenue in the Capital Project Fund budget is estfmated at $4,076,696. Slayter Creek Park, Phase II - $ $2,065,470 Texas Parks and Wildlife Grant - $500K Anna Community Development Corporatfon - $1.6 million Slayter Creek Trail Extension - $301,560 Collin County Parks and Open Space Grant - $301,560 FM 455 Utflity Relocatfon Project - $1,600,000 2007 Collin County Bond Program - $800K Texas Department of Transportatfon Reimbursement - $800K FM 455 Median Break Public Improvement District (PID) - $74,623 PID Assessments - $74,623 Expenditures Total expenditures in the Capital Projects fund are $4,160,722. 2007 Bond Project Constructfon Fund - $3,700. The remaining money in the 2007 bond issue project account is budgeted to be spent on qualified projects. Slayter Creek Park, Phase II - $ $2,065,470. This project will be funded by a $500K grant from the Texas De- partment of Parks and Wildlife and a $1.6 million contributfon from the Anna Community Development Cor- poratfon. Slayter Creek Trail Extension - $301,560. This project is funded by a grant from the Collin County Open Space Grant Program. FM 455 Utflity Relocatfon Project - $1,600,000. Approximately ½ of the cost of this project ($800K) will be funded by the 2007 Collin County Bond Program. The remainder of the cost will be reimbursed to the City from the Texas Department of Transportatfon. FM 455 Median Break Public Improvement District (PID) - $74,623. PID assessments will fund a median break on FM 455 in front of the Anna Market Center shopping plaza. F Y 2 0 1 3 A d o p t e d B u d g e t 11 Budget Letter In additfon, $114,281 from the 2005 CO issue is being transferred to the Debt Service fund to help defease the bonds accounted for in the Debt Service fund. All unspent revenue from the 2005 CO bond will be used to reduce the overall debt service obligatfon consistent with the city’s debt management strategy. UTILITY FUND The Water and Sewer Fund in an enterprise fund that accounts for the water, sewer and refuse services that are provided to city residents and a few customers located outside the city limits. All actfvitfes to maintain these services are accounted for in this fund, including but not limited to; operatfons, maintenance, billing and collectfons, administratfon, financing, and related debt service. The Utflity Fund includes the following departments: Water Sewer Utflity Billing Revenue The Utflity Fund’s principle source of revenues are charges to customers for water consumptfon, wastewater collectfon, refuse collectfon, and fees related to providing consumers with water and wastewater services. Water and wastewater impact fees are collected whenever new homes are constructed in the City of Anna. These fees may only be used to pay for specific water and sewer projects listed in a capital improvement pro- gram adopted by the City Council. Impact fees not spent within ten years of collectfon must be refunded. The fees collected by the City are listed among the restricted assets on our audit report. The FY 2013 budget will use $350,000 of the water impact fees previously collected to make debt payments on previously con- structed water projects listed on our capital improvement program. As a result of this payment the Utflity Fund budget is expected to have a surplus of just over $200K in FY 2013. The additfonal surplus funds will be unrestricted assets and will help the city meet its goal of building a 90 -day operatfng reserve in working capi- tal. TYPE ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE WATER $2,986,169 $2,256,016 $2,365,793 $2,513,730 11% RESTRICTED NET ASSET ALLOCATION $0 $0 $0 $350,000 N/A SEWER $1,328,409 $1,274,200 $1,312,975 $1,324,821 4% TRASH COLLECTION $573,248 $580,000 $583,500 $589,000 2% TOTAL $4,887,826 $4,110,216 $4,262,268 $4,777,551 16% F Y 2 0 1 3 A d o p t e d B u d g e t 12 Budget Letter In order to ensure that our utflity rates will contfnue to support our operatfng costs and debt obligatfons, staff asked our rate consultant to update the 2008 rate study which established the baseline for our current rate structure. The updated utflity rate model recommends adjustfng utflity rates gradually by 2 to 3 percent each year startfng in FY 2014. The FY 2013 budget does not include a utflity rate increase. Expenditures Expenditures in the Budget for the Utflity Fund amount to $4,575,092. This represents a 12% increase com- pared to the amount budgeted in FY 2011-12. The budgeted expenses will fully fund the water meter re- placement program and some additfonal tools and equipment for the staff of the Public Works and Utflity Billing Departments. I have included a discussion of the significant budgetary issues affectfng the various de- partments. DEPARTMENT ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE WATER $2,691,680 $2,165,945 $2,424,967 $2,498,768 15% SEWER $1,833,990 $1,687,111 $1,745,806 $1,830,026 8% UTILITY BILLING $207,386 $226,505 $196,705 $246,298 9% TOTAL $4,733,056 $4,079,561 $4,367,478 $4,575,092 12% F Y 2 0 1 3 A d o p t e d B u d g e t 13 Budget Letter Significant Budgetary Issues Utflity Billing Staffing Changes: The FY 2013 budget includes proposals to implement new technologies relat- ed to utflity billing that will decrease the need to hire paid staff as we contfnue to grow. The city currently has one vacancy in the Utflity Billing Department which has not been filled. The FY 2013 budget eliminates funding for this vacancy. Payment Kiosk: The payment kiosk with replace the drive-up window at the utflity billing and court office. The kiosk will accept cash, check, and credit card payments for utflity bills and court payments. It is our goal to encourage utflity customers to take advantage of remote payment optfons, including e -bill and ACH trans- actfons, which reduce the city’s reliance on paid staff to collect payments. During the month of June just over 950 utflity payments were made using the drive-through drop box and drive-through window located at the utflity billing office. An estfmated additfonal 250 payments were made in -person inside the build- ing. The kiosk adds another remote payment optfon for drive-through and walk-in customers. Payments made using the kiosk are applied directly to the customer’s account eliminatfng the need for manual entry by city staff. The kiosk should decrease the need to hire paid staff as we contfnue to grow. The kiosk will also allow customers to make recorded payments after hours and on weekends. Purchase and installatfon will cost approximately $40K in FY 2013. On-going maintenance and software licensing will cost about $5,200 annually. Outsource Monthly Billing: The budget includes funding to outsource the compiling and mailing of monthly utflity bills. Our current cost of in-house monthly billing is $13,000 for hard costs such as paper, printfng and postage, and another $2,400 in labor for a total of $15,480. Outsourcing the billing will cost $24,000 annual- ly. The additfonal cost of outsourcing the bills will cost $8,500 annually which equates to about $0.21 per F Y 2 0 1 3 A d o p t e d B u d g e t 14 Budget Letter month for each of the city’s 3,355 utflity customers. The new utflity bills would be printed on a full letter - sized paper and will include informatfon about the customer’s consumptfon history. The new bill will also have space for the City to provide relevant informatfon to our customers. Customer bills sent through the mail will be placed in an envelope with a return payment envelope. E-bill customers will contfnue to receive an e-mail notfficatfon that their bill is due but will not receive a paper bill in the mail. Water Meter Replacement Program: Over the past several years, the City has been replacing standard water meters with radio read water meters. Water consumptfon informatfon from the radio read meters is auto- matfcally uploaded to a specially equipped laptop computer when the meter reader drives by the meter box. Convertfng all of our customer water meters to the radio read model will save a significant about of staff tfme each month. There are about 1,300 meters that stfll need to be replaced. The FY 2013 budget includes $247,000 to purchase the required number of water meters to complete the replacement project. Trackhoe Purchase: The Water Department includes $50K to purchase a small to mid -sized trackhoe vehicle. The trackhoe is a highly maneuverable vehicle which will allow repair crews better access to and movement within water and sewer repair locatfons. The track vehicle will also reduce damage to concrete and turf with- in a repair site. The vehicle will also be used to maintain areas around drainage ditches and water features in the city’s parks. Miscellaneous Equipment Purchases: Based on some of our recent experiences repairing major water main breaks, the water department budget includes $8,400 to purchase a tapping tool, pipe saw, and electric jack hammer. There is also $5,000 in the budget to purchase plan file cabinets for the permanent storage of utfli- ty infrastructure plans. North Texas Municipal Water District (NTMWD) Wastewater Treatment Fees: The cost of passing wastewater through to the NTMWD wastewater system is expected to increase as a result of the increase in single family home constructfon within that wastewater basin, and an expected increase in the NTMWD fees. The estfmated cost for FY 2013 has increased to approximately $279K. North Texas Groundwater Conservatfon District (NTGCD) Productfon Fees: The NTGCD was established by the Texas Legislature during the 2009 legislatfve session. The District, which covers Collin, Denton, and Cook Countfes, has been charged with regulatfng the productfon of groundwater in the three -county area with the goal of conserving groundwater for the future. The operatfons of the District are primarily paid for by the public and large commercial groundwater producers. Startfng in January 2012 the City is required to pay the District $0.10 for every 1,000 gallons of groundwater we produce. The City does not sell all the water it pro- duces (we average about a 34% water loss due to water used for fire protectfon, water breaks, routfne maintenance etc.) In order to pay the NTGCD water productfon fee, the City’s water customers pay a fee equal to $0.15 per 1,000 gallons of water they use per month. The NTGCD will not adopt their 2013 produc- tfon fee untfl September or October this year. We do not expect the District to increase their productfon fee; however, if they adopt a fee higher than the 2012 fee, we will recommend that the City’s customer fees and budget be amended appropriately. Utflity Fund Debt Obligatfons: The City’s total water and sewer debt service obligatfons increase gradually F Y 2 0 1 3 A d o p t e d B u d g e t 15 Budget Letter untfl FY 2015 at which tfme they will increase dramatfcally unless the City initfates a series of refundings to restructure our existfng debt. These restructurings are described in the debt management strategy prepared by First Southwest, the City’s financial advisor and presented to the City Council in June of this year. This budget does not include utflity system depreciatfon costs which ideally we would fund on an annual ba- sis to pay for system replacement. The city’s auditor will make adjustments for depreciatfon expense in the city’s annual audit. TRUST FUNDS The City has established a number of Trust Funds, the uses of which are restricted to certain pre -determined expense categories. The following is a summary of the revenue and expenditures that will be budgeted in the various Trust Funds. Revenue DEPARTMENT FY 2013 PROJECTED REVENUE WEST CROSSING WATER TRUST $66,000 WEST CROSSING SEWER TRUST $66,000 MISC. IMPACT FEE TRUST $134,000 WESTFIELD WATER TRUST $11,000 WESTFIELD SEWER TRUST $11,000 NORTHPOINTE WATER TRUST $22,000 NORTHPOINTE SEWER TRUST $22,000 W&S IMPROVEMENTS TRUST $134,000 PARK TRUST $132,800 SWEETWATER STREETS TRUST $14,000 ROAD CAPITAL IMPROVEMENT $15 FIRE DEPARTMENT TRUST $37,200 COURT BUILDING SECURITY FUND $2,085 COURT TECHNOLOGY FUND $3,015 CHILD SAFETY FUND $9,030 F Y 2 0 1 3 A d o p t e d B u d g e t 16 Budget Letter Expenditures CLOSING While budgets are always a challenge, we have worked diligently to bring a budget that is both balanced and sufficient to meet the needs of the coming FY. The staff of the Finance department has put tremendous effort into the development of this document, and I would like to thank them and each department director for their hard work during this process. On behalf of myself and the staff, I also want to express my appreciatfon to the City Council for your diligent efforts throughout the year in providing guidance, directfon and support for our efforts to serve the citfzens of Anna. As Anna contfnues to grow, the city remains committed to the Hometown ideal outlined in its Strategic Vi- sion. The FY 2013 budget is designed to preserve and enhance the quality of existfng services and respond appropriately to our city’s contfnuing growth and development. Respectiully Submitted, Philip Sanders City Manager DEPARTMENT FY 13 EXPENDITURES DESCRIPTION COURT BUILDING SECURITY FUND $3,000 Police overtfme for court security COURT TECHNOLOGY FUND $2,665 Brazos tfcket writer software licensing and sup- port PARK TRUST $25,00 Parks Furnishings and Equipment FIRE DEPARTMENT TRUST $43,000 Fire Department Furnishings and Equipment WATER IMPACT FEE TRUST FUNDS $350,000 Off-set debt payments for water capital pro- jects F Y 2 0 1 3 A d o p t e d B u d g e t 17 Michael Crist Mayor James T. Cook John Geren Place 1 Place 4, Mayor Pro Tem Vacant Nathan Bryan Place 2 Place 5 John Hopewell Becky Glover Place 3 Place 6, Deputy Mayor Pro Tem Philip Sanders City Manager Kenneth Jenks Maurice Schwanke Chief of Police/Deputy City Manager Director of Planning and Development Clayton Fulton James Parkman Director of Finance Director of Public Works Natha Wilkison Frank Roma City Secretary Interim Fire Chief City Organizatfon Elected Officials Administrative Officials F Y 2 0 1 3 A d o p t e d B u d g e t 18 Organization Chart City Organizatfon F Y 2 0 1 3 A d o p t e d B u d g e t 19 Our Commitment In order to enhance the quality of our community, the City of Anna is committed to principles of open and fair gov- ernment and progressive planning that honor the public trust, protect our common resources, and promote a safe, sustainable, and connected community. WHO ARE WE? The City of Anna is a municipal organizatfon that includes the City Council, Staff, Boards and Commissions, and any other entftfes who act on their behalf. WHY DO WE SERVE? We exist to act on behalf of the citfzens in a way that enhances the quality of our community. WHOM DO WE SERVE? We serve ALL members of the community including current and future citfzens, businesses, property owners, and any other individuals or organizatfons who comprise "the community of Anna". WHAT IS OUR COMMITMENT? Our decisions and actfons will be consistent with principles of open and fair government and progressive planning. HOW DO WE HONOR OUR COMMITMENT? We will honor the public trust and will be open, fair, consistent, and professional in all our dealings. We will protect the resources that have been entrusted to us, and will be prudent in the expenditure of public funds and the exercise of regulatory powers. We will promote a safe, sustainable, and connected community consistent with the model to which we aspire. Commitment and Vision F Y 2 0 1 3 A d o p t e d B u d g e t 20 Our Strategic Vision Anna is our hometown. In order to protect and promote our community vision, we will imple- ment policies that: Promote the development of a full service community Encourage small business development Foster an environment that encourages multf-generatfonal living Exercise responsible stewardship over natural resources, and pro- mote sustainable development Promote a strong sense of community pride Facilitate access to state-of-the-art technology Support the growth of a high quality educatfon system Enhance the safety and security of our citfzens Commitment and Vision F Y 2 0 1 3 A d o p t e d B u d g e t 21 Date of Incorporation 1913 Date of Home Rule Charter Adoption May 7, 2005 Form of Government Council/Manager Estimated Population January 1, 2012 8,580 Area in Square Miles 15 Planning Area in Square Miles ( includes ETJ) 62 Fire Protection Number of Full Time Employees 4 Number of Volunteers 30 Number of Calls for Service – entfre fire district (2011) 1,066 Police Protection Sworn Police Officers 12 Civilian Employees 1 Calls for Service (2011) 9,594 Arrests (2011) 130 Water and Sewer Utility Actfve Residentfal Accounts 2988 Actfve Non-Residentfal Accounts 116 Average Daily Water Consumptfon (2011) 1,200,000 gallons Ground Storage 1,000,000 gallons Elevated Storage 600,000 gallons Productfon Capacity 2,200,000 gallons per day Pump Capacity 3,500 gallons per minute Waste Water Treatment Capacity 750,000 gallons per day Building Permits Residentfal Building Permits (2011) 100 Residentfal Market Value (2012 Certffied Tax Roll) $287,805,608 Non-residentfal Building Permits (2011) 15 Non-residentfal Market Value (2012 Certffied Tax Roll) $184,767,328 Parkland Acreage Acres of Developed Parkland 63 Acres of Undeveloped Parkland 87 Statfstfcs F Y 2 0 1 3 A d o p t e d B u d g e t 22 Introductfon: The annual budget is the single most important financial responsibility of a local government. Citfzens are able to see how city officials and staff plan to spend taxpayer dollars. Once the budget is adopted, funds may only be spent in a manner consistent with the stated plans, objectfves, and policies outlined in the budget unless amended in accordance with the City Charter and approval of the City Council. The budget begins with a transmittal letter written by the City Manager to the City Council. This letter is to officially present the budget to the City Council and provide a general overview of budget conditfons and trends for the City of Anna. The budget is divided into four specific sectfons: introductfon, financial/operatfonal summaries by fund, component units, and supplemental informatfon. The introductfon contains the transmittal letter, policy statements to guide the City officials and staff, and an overview of budget practfces and administratfon within the City of Anna. The financial/ operatfonal sectfon of the budget will contain specific informatfon on each fund and subsequent departments the city operates. Actfvitfes, services, goals, and objectfves will be outlined for each department. Comparisons on revenue and expenses between the previous FY, the current FY budget, current FY estfmate, and proposed for the upcoming FY. General Budget process, practfce, and administratfon: The budget follows the fiscal year (FY) of October 1 through September 30. Each year the budget is adopted by the council and sets the legal spending limits for the government during the upcoming FY. In order the prepare for and adopt the budget on tfme the city must follow a schedule allowing for sufficient tfme to adequately evaluate current and past budgets, current economic conditfons, and project revenues and expenses for the upcoming budget. The budget is developed at the department level and adopted at the fund level. Many individuals are involved in the budget process. City officials, department directors and the public are all in- volved; however, the primary responsibility to assemble and create the document falls upon the City Manager and Fi- nance Director. There is also a schedule the city follows for the budget process. Following you will see a budget calen- dar the city follows(ed) for the preparatfon and adoptfon of this document. Throughout the year the finance department provides periodic and regular reports to department directors. These reports are used to analyze current and projected revenues expenditures. In this way, department heads are able to control their expenditures, maintain their budgets, and project future expenditures through out the year. This is cru- cial to the budget process as conditfons and situatfons may change throughout the year. Once the budget is adopted, it can only be amended under certain provisions established through the City’s charter. If amendments are required it is imperatfve that budget amendments be accurate and only occurs when absolutely necessary. In this way, the budg- et process occurs throughout the year; first to ensure that budgets are maintained, second to prepare for any amend- ments that may be necessary due to unforeseen circumstances, and third to evaluate trends in preparatfon for the up- coming budget. While the budget is ongoing, the bulk of the work occurs begins in the 3rd quarter of each fiscal year. By the end of April, department directors update their five year capital improvements plan with any projects and estfmated costs. By mid May all projected revenues and expenditures for the subsequent fiscal year are due. Throughout the month of June, the City Manager and Finance Director will meet jointly with each department head to review the department’s Budget Process F Y 2 0 1 3 A d o p t e d B u d g e t 23 budget proposal, including line item detail for each department’s budget. The City Council will also meet in workshop session in June to discuss budget prioritfes. The meetfng with the Council is a public meetfng where citfzens can come to partfcipate and hear each department director review their department’s current accomplishments and goals and discuss prioritfes for the subsequent year’s budget goals and prioritfes Upon a review of budget prioritfes with the Council and once all each department’s budget proposals have been dis- cussed with the City Manager and Finance Director, the budget will enter the balancing stage. During the month of July the City Manager and the Finance Department work in concert to ensure that revenues and expenditures are projected appropriately and create a balanced budget. Budget requests and prioritfes are carefully weighed to ensure that city functfons and services will be maintained while allowing for increased services where necessary. As will be discussed later, property taxes are a major driver of the City’s Budget. The Collin Central Appraisal District (CAD) provides the tax roll with informatfon on the taxable value within the City of Anna. Staff receives periodic re- ports from the CAD to evaluate trends in the taxable value in order to gauge taxable value for the purpose of estf- matfng revenue. Once certffied tax rolls are available from Collin County, the City will finalize the proposed budget in- cluding a recommended property tax rate that will allow the city to meet its budgetary obligatfons. The certffied tax rolls are typically available in late July and the proposed budget will be presented to the council in late July as well. Budget meetfngs and hearings occur throughout the month of August with formal adoptfon of the budget scheduled for early September. For more informatfon on the budget process and administratfon, please refer to Artfcle 7 of the City of Anna Charter included in the supplemental sectfon of the budget. Budget Process F Y 2 0 1 3 A d o p t e d B u d g e t 24 Budget Calendar F Y 2 0 1 3 A d o p t e d B u d g e t 25 Descriptfon of Fund Structure The budget is organized by funds with departments and line items all rolling up to the fund level. A fund is gener- ally defined as a fiscal/accounting entity with its own set of self-balancing accounts. Each fund can be presented independent of the other funds to illustrate that funds purpose for specific activities. The City of Anna deploys Governmental and Proprietary Funds. Governmental funds are used for the bulk of the activities carried out by the City. The focus of Governmental funds is the flow of current financial resources. It is also assumed that those receiving services are expected to pay a fee commensurate with the value of that service. The Governmental funds account for services like Police and Fire in the General Fund, as well as debt in the Debt Service Fund, capital projects in the Capital Improvements Fund, and restricted/special revenues. Propriety or Enterprise funds focus is that of a business which charges a fee to cover the cost of providing goods or services. The Utility Fund, which accounts for water, sewer, and trash services provided to the citizens of Anna, is an Enter- prise Fund. Governmental Fund Types General Fund – This is the primary operating fund for the City. The General Fund revenue is from taxes, fees, fines, licenses etc. General Fund expenditures are for typical municipal services such as Police, Fire, Ambulance, Parks, Streets, and Administration. Debt Service Fund – This fund accounts for all the long term debt supported by taxes and issued to support gov- ernmental fund type activities. A portion of the property tax levy (Interest and Sinking Rate) is dedicated to sup- port this fund. Principal and interest payments on long term debt are found in the Debt Service Fund. Capital Improvements Fund – This fund accounts for major capital projects and improvements such as streets, sidewalks, park projects etc. Revenues for this fund are restricted for the project. Revenue sources include bond proceeds, fund transfers, grants, and intergovernmental revenue from other governmental units like TxDOT and Collin County. Restricted Revenue Trusts Funds– With the exception of capital projects, this accounts for revenue sources that are legally restricted to expenditures for a specific purpose and in accordance with the enabling legislation. Cur- rently these trusts are accounted for in the general fund and reported in the audited as restricted fund balance. Proprietary/Enterprise Fund Types Utility Fund – This fund accounts for the operation and maintenance of the City’s water and waste water utility system as well and for contracting refuse collection services. This fund is financially supported solely by user charges for utility and trash service. The typical measure of financial health for each fund is the fund balance at year end. The fiscal policies which will follow this section will discuss those measures in more detail. A schedule of estimated and projected fund is be- low: Fund Structure F Y 2 0 1 3 A d o p t e d B u d g e t 26 2011 Audited Fund Balance 2012 Projected Fund Balance 2013 Proposed Fund Balance % Change General Fund $2,306,489 $2,358,668 $2,508,398 6% Restricted $156,274 $257,836 $407,566 58% Assigned $52,383 $0 $0 N/A Unassigned $2,097,832 $2,100,832 $2,100,832 0% Debt Service Fund $50,758 $53,945 $53,945 0% Restricted $50,758 $53,945 $53,945 0% Assigned $0 $0 $0 N/A Unassigned $0 $0 $0 N/A Capital Improvements Fund $264,563 $113,558 $100,000 -12% Restricted $264,563 $113,558 $100,000 -12% Assigned $0 $0 $0 N/A Unassigned $0 $0 $0 N/A Utility Fund $2,705,247 $3,039,353 $3,226,072 6% Restricted Net Assets $1,353,085 $1,618,345 $1,600,345 -1% Unrestricted Net Assets $1,352,162 $1,421,008 $1,625,727 14% Schedule of Fund Balance The Governmental Accountfng Standards Board (GASB) has issued a statement regarding the classificatfon of fund bal- ance. Fund balance in the Governmental Funds is classified as nonspendable, restricted, committed, assigned, and un- assigned. The City currently has no fund balance classified as nonspendable or committed. The Utflity Fund does not report fund balance, but reports net assets. For the purposes of this schedule, net assets re- ported in the Utflity Fund as restricted includes impact fees and other assets restricted for a specific use purpose and unrestricted net assets includes assets which hold no restrictfon upon their use. Fund Structure F Y 2 0 1 3 A d o p t e d B u d g e t 27 General Fund Revenue Revenue Mix The City of Anna finances its general fund actfvitfes from 3 types of revenue; taxes, fines & fees, and user charges. These include property and sales taxes, licenses and permits, fines, Beneficiaries of General Fund Services are not gen- erally required to pay a fee commensurate with the value of those services. Illustrated below, the majority of the Gen- eral Fund actfvitfes (70%) are financed through taxes. The top 3 revenue sources are (1) property taxes, (2) sales tax, and (3) development fees. The 3 sources comprise 80% of FY 13 revenue. Property Tax: The Ad Valorem Property Tax (57%) is a functfon of the tax rate the City formally adopts each year. The Collin Central Appraisal District (CCAD) estab- lishes the value of each property with the City of Anna and the city applies the maintenance and operatfons portfon of the rate to the certffied val- ue provided by CCAD. For FY13 the certffied taxa- ble value is $376,533,308. This represents and increase of 3.7% that is almost exclusively due to the additfon of new value as the result of increased building actfvity. With the exceptfon of the most recent year, the taxable value of existfng propertfes has declined an average of over 3% per year since 2008. This equates to a loss of over $42 million in taxable value based on a year to year comparison. Even with over $35 million in new buildings and property added to the tax roll since 2008, the taxable value of the 2012 tax role is nearly 2% lower than the 2008 roll. In additfon, the average value of a residentfal homestead in Anna has de- clined by 11% since 2008. Based on the most recent 2012 property appraisals, it appears that existfng propertfes have retained their value since 2011, and we are guardedly optfmis- tfc that this could mark the be- ginning of a trend toward mar- ket appreciatfon. In additfon we have observed a significant increase in the number of sin- F Y 2 0 1 3 A d o p t e d B u d g e t 28 General Fund Revenue gle family homes building permits issued since the beginning of the year. While this will most certainly add the city’s tax base, it will also increase the demand for municipal services that are funded primarily by property taxes. The following table illustrates the change in assessed value, tax rate(s), and property tax revenue since tax year 2000. Below is a summary of the FY 12 adopted tax rates of our comparison citfes Tax Year Assessed Value Total Tax Rate M&O Rate Debt Service Rate Total Property Tax Revenue 2000 $29,991,809 0.5299 0.2563 0.2735 $150,809 2001 $35,320,292 0.5799 0.1511 0.4288 $182,838 2002 $52,462,163 0.4997 0.4997 0 $288,103 2003 $79,351,888 0.4997 0.4997 0 $407,430 2004 $136,234,607 0.4997 0.4997 0 $693,504 2005 $211,508,957 0.525 0.525 0 $1,148,140 2006 $288,590,455 0.525 0.4386 0.0863 $1,541,817 2007 $356,238,071 0.575 0.4667 0.1082 $2,015,950 2008 $383,961,925 0.575 0.4794 0.0955 $2,207,626 2009 $378,153,710 0.622733 0.529939 0.0928 $2,354,888 2010 $365,119,804 0.650332 0.554225 0.096107 $2,374,491 2011 $362,969,678 0.650332 0.559367 0.090965 $2,360,508 2012 Proposed $376,533,308 0.650332 0.559367 0.090965 $2,448,717 F Y 2 0 1 3 A d o p t e d B u d g e t 29 General Fund Revenue Sales Tax: Sales tax accounts for 13% of General Fund Revenue. The City currently charges a 2% sales tax. This 2% is in additfon to the 6.25% the state charges. Of the additfonal 2% charged, 1% is allocated to the general fund while the remaining 1% funds the Economic and Community Development Corporatfons. As the City has grown, so has the sales tax base. Since 2008 the City has seen average annual sales tax growth of just under 14%. The forecast for FY 2013 is conservatfve based upon the economic climate natfonally and that fact that sales tax growth appears to be slowing down based upon recent years. FY 2011 sales tax revenue was adjust- ed down to account and an economic develop incentfve between the City of Anna and a local home builder. The incentfve expired in late 2011 and the num- bers are adjusted to account for actual sales tax revenue in the General Fund. The City contfnues to partner with its Economic Development Corporatfon to recruit business to Anna that will be successful and contribute to our sense of community. General Fund Sales Tax Revenue Fiscal Year Sales Tax Revenue % Change 1996 $29,149 15.89% 1997 $32,332 10.92% 1998 $41,271 27.65% 1999 $42,743 3.57% 2000 $37,586 -12.06% 2001 $43,827 16.60% 2002 $61,160 39.55% 2003 $79,132 29.38% 2004 $115,843 46.39% 2005 $155,399 34.15% 2006 $225,886 45.36% 2007 $293,934 30.12% 2008 $336,730 14.56% 2009 $384,642 14.23% 2010 $433,375 12.67% 2011 $515,381 18.92% 2011 Adjusted $458,432 5.78% 2012 Estfmate $494,000 7.76% 2013 Projectfon $500,000 1.21% F Y 2 0 1 3 A d o p t e d B u d g e t 30 General Fund Revenue Development: Development revenue is driven by building actfvity in the City. The revenue amount is a combinatfon of building per- mits, zoning fees, plat fees, contractor registratfon fees, and all other fees related to the permitting and approval of constructfon actfvity in the City. As you can see by the charge on the right, the City experienced a sharp decline in build- ing permits that coincided with the re- cession. However, as the economy has seen signs of improvement natfonally and locally, we are seeing increased building actfvity. Much of the increase is attributable by a large inventory of avail- able single family lots. As that inventory diminishes we expect to see a light drop in building actfvity untfl more develop- ments are platted and approved. Illustrated below is a brief history of rev- enue sources for the City of Anna. Pro- posed revenue for FY 13 is up 10% over the budgeted amount for FY 12. The estfmate for FY 12 is based upon perfor- mance over the first 3 quarters of the fiscal year including historical and seasonal trends. Of note is the significant in- crease in building actfvity. As discussed above, the City saw an unexpected increase in building actfvity and expect to see similar level of actfvity through FY 13. The increase in intergovernmental revenue is to offset personnel costs in Parks the Economic and Community Development Corporatfons. The decline in other revenue is due in part one tfme payments from insurance claims and gain on sale of assets such as retfred vehicles etc. The decline in Fire revenue is due to accountfng for grant revenue in a special revenue fund. Of note in the Fire Department for FY 13 is the inclusion of ALS fees charged for services administered by the Fire Depart- ment for advanced life support. General Fund Revenue Summary TYPE ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE Property Tax $ 2,037,838 $ 2,030,335 $ 2,030,335 $ 2,106,203 4% Sales Tax $ 542,239 $ 460,000 $ 494,000 $ 500,000 9% Development $ 241,652 $ 122,300 $ 397,300 $ 371,300 204% Franchise Tax $ 343,304 $ 335,000 $ 335,000 $ 340,000 1% Court $ 85,726 $ 131,175 $ 85,225 $ 130,300 -1% Intergovernmental $ 91,400 $ 93,600 $ 93,600 $ 96,450 3% Other $ 101,567 $ 103,294 $ 93,288 $ 83,929 -19% Fire $ 63,048 $ 107,500 $ 57,000 $ 78,000 -27% Total $ 3,506,774 $ 3,383,204 $ 3,585,748 $ 3,706,182 10% F Y 2 0 1 3 A d o p t e d B u d g e t 31 The General Fund Accounts for the expenditures associated with operatfng the general government services one typi- cally expects from their municipal government. These services include public safety, parks, streets, planning, and the general administratfve support for these services and the city council. The chart on the right illustrates the percentage of the budget each department is responsible for. For FY 13 public safety will account for 52% of the budget. This includes police, fire, and ambulance services. The table below illustrates each department of FY 11, FY 12, and FY 13. The table includes actual costs from FY 11, budgeted costs for FY 12, FY 12 estfmate of costs, FY 13 proposed budget, and the percent change from the FY 12 budget. The proposed FY 13 budget has an increase of 10% over the FY 12 budget. The departmental summaries demonstrate details on the increase. The 10% in- crease can be attributed to (1) costs associated with increased development actfvity, (2) new programs in various de- partments, (3) additfonal employees in the Fire Department, and (4) increases in personnel costs. These changes will all be discussed in the departmental summaries that follow. General Fund Expense Summary DEPARTMENT ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE ADMINISTRATION $99,460 $102,714 $112,025 $112,706 10% CITY COUNCIL $16,628 $15,710 $17,550 $19,998 27% CITY MANAGER $238,143 $239,143 $233,757 $243,483 2% CITY SECRETARY $85,854 $103,611 $86,758 $106,339 3% CITY ATTORNEY $124,305 $120,000 $165,000 $87,000 -28% FINANCE $241,960 $225,173 $217,756 $243,892 8% DEVELOPMENT $364,765 $310,914 $377,622 $380,439 22% ANIMAL CONTROL SERVICES $51,877 $51,338 $51,338 $56,643 10% FIRE $433,153 $442,244 $546,685 $598,249 35% AMBULANCE $102,793 $102,793 $114,800 $114,800 12% POLICE $1,182,487 $1,170,583 $1,189,421 $1,241,956 6% MUNICIPAL COURT $78,798 $86,168 $78,698 $104,148 21% PARK $107,496 $128,119 $131,130 $135,292 6% STREET $304,386 $259,500 $268,260 $261,237 1% Total $3,432,105 $3,358,010 $3,590,800 $3,706,182 10% General Fund Expense Summary F Y 2 0 1 3 A d o p t e d B u d g e t 32 Each departmental summary will include its purpose, FY 12 accomplishments, and FY 13 goals. Additfonally a summary of expenses will be illustrated as well as new programs or noteworthy changes from the FY 12 budget. Expenses will be summarized into the following categories: Payroll: Payroll expense includes all the costs associated with the employees in that department. The payroll category includes the following: salaries and wages, overtfme, payroll taxes, health insurance, retfrement, unemployment, workers com- pensatfon, and other miscellaneous payroll costs. Supplies: Supply expense includes office supplies, vehicle sup- plies, fuel, postage, medical supplies, clothing sup- plies, chemical supplies, protectfve gear and other miscellaneous items. Maintenance: Maintenance expense includes maintenance and repair costs for all city assets, equipment, and other city owned property. Items would include buildings, water and sewer system in the Utflity Fund, vehicles, equipment, etc. Services: Service expense includes services the city pays for. Items such as utflity costs, telephones, liability and property insur- ance, employee travel and educatfon, advertfsing for public notfces, etc. This category also includes contracted ser- vices such as the solid waste contract, IT services, dispatch services etc. Capital Expenditures: Capital expenditures includes items such as machinery and equipment, motor vehicles, building renovatfons, etc. The table below illustrates how departments will be summarized. The 10% increase is discussed above; however, illus- trated below is a 63% increase in supplies. This is due to fuel costs, supplemental requests for one tfme expenses, and the commitment to purchase protectfve gear in the Fire Department. Departmental Summaries General Fund Expense Summary by Category ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-213 % CHANGE PAYROLL $2,063,776 $2,125,036 $2,076,386 $2,311,109 9% SUPPLIES $126,009 $124,185 $146,747 $202,805 63% MAINTENANCE $98,981 $120,415 $132,895 $119,800 -1% SERVICES $915,794 $870,874 $999,177 $961,621 10% CAPITAL EXPENDITURES $227,545 $117,500 $235,595 $110,847 -6% TOTAL GENERAL FUND $3,432,105 $3,358,010 $3,590,800 $3,706,182 10% F Y 2 0 1 3 A d o p t e d B u d g e t 33 10-400 Administratfon Purpose/Description To provide general administrative support to all the functions, programs, activities, and projects in the General Fund. These activities have costs not readily assignable to any specific department. Administration covers a number of shared expenses at City Hall (utilities, supplies, etc.) as well as other General Fund expenses (IT services). Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % Change SUPPLIES $8,020 $9,500 $9,000 $8,300 -13% MAINTENANCE $2,488 $4,600 $4,500 $3,000 -35% SERVICES $88,361 $87,614 $97,415 $99,906 14% CAPITAL EXPENDITURES $590 $1,000 $1,110 $1,000 0% TOTAL 10-400E $99,459 $102,714 $112,025 $112,706 10% FY 12 Accomplishments Upgrade of Microsoft Office Suite from Office 2003 to Office 2010 Began electronic document management plan to scan, store, and disseminate critfcal documents i.e. ordinances, resolutfons, council minutes etc. FY 13 Objectives Execute electronic document management plan Provide ongoing IT support to all departments Make critfcal IT upgrades such as security cameras at parks, networking capacity, and other IT upgrades. F Y 2 0 1 3 A d o p t e d B u d g e t 34 10-400 Administratfon Proposed Budget Breakdown Administration FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 N/A Total New and Noteworthy for FY 13 Ongoing maintenance for document imaging Additfonal funds for critfcal IT projects F Y 2 0 1 3 A d o p t e d B u d g e t 35 10-403 City Council Purpose/Description In order to enhance the quality of our community, the City Council is committed to principles of open and fair govern- ment and progressive planning that honor the public trust, protect our common resources, and promote a safe, sustain- able, and connected community. The City Council is the legislative body of the city functioning under a Home Rule Charter adopted May 7, 2005. This department is designed to provide funding related to administration of legislative matters including, professional development of Council members. Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE SUPPLIES $1,077 $1,200 $1,500 $1,500 25% SERVICES $10,886 $14,510 $16,050 $18,498 27% CAPITAL EXPENDITURES $4,666 $0 $0 $0 0% TOTAL 10-403E $16,629 $15,710 $17,550 $19,998 27% New and Noteworthy for FY 13 Increased services budget for expanded travel and training opportunitfes for the Mayor and City Council F Y 2 0 1 3 A d o p t e d B u d g e t 36 10-406 City Manager Purpose/Description The City Manager’s Office oversees implementation of City Council policies and directives, manages the day-to-day op- erations of the city, responds to concerns and inquiries, and promotes the overall interest of the community. The City Manager advises the City Council on policy decisions and provides leadership to the departments as they implement City policies. The City Manager’s assistant also serves as the public relations manager and provides administrative support to the City’s Economic and Community Development Corporations. FY 12 Accomplishments Developed method for funding the constructfon of Phase II of Slayter Creek Park Commenced Constructfon on Phase II of Slayter Creek Trail Constructed parking lot and irrigatfon improvements at Geer Park and Bryant Park* Upgraded the Slayter Creek Park concession build- ing* Completed the 2010 TxCDBG (Highway 5) Water Line Project Initfated Highway 5 ground storage tank rehabilita- tfon project Completed water system Capital Improvement Plan study Constructed Hackberry Drive water line relocatfon project Updated the City’s water and sewer rate model Negotfated easement acquisitfon for the FM 455 water and sewer relocatfon project Commenced work on the FM 455 water and sewer relocatfon project Completed wastewater treatment optfon study Renewed wastewater treatment plant discharge permit Coordinated efforts with TxDOT and Collin County to schedule funding for US 75/FM 455 interchange re- constructfon project Negotfated median break agreements for the FM 455 expansion project Initfated conversatfon with TxDOT on the future re- constructfon and expansion of Powell Parkway (Hwy. 5) Completed design and constructfon of the 2012 street rehabilitatfon project* Completed Interurban storm sewer repair project* Coordinated adoptfon of a new Subdivision Ordi- nance Completed update of the City’s Standard Design Manual Initfated project to update land development codes including the City’s Zoning Ordinance Worked with developers to begin constructfon on over 30,000 square feet of new commercial space in downtown Anna. Implemented builder sign kiosk program Prepared the fiscal year operatfng budget without increasing the tax rate Updated the General Fund and Utflity Fund debt management strategies Completed the FY 2011 Audit Completed Fire Statfon Remodel project Implemented an advanced life support EMS program Implemented document management software pro- gram Improved on-line communicatfon with citfzens Initfated the “Shop Local” program Assisted the Economic Development Corporatfon’s remodel of the old post office as office space for an expanding local business Worked with local business and natfonal retail brands to expand business actfvity in Anna * expected to be complete by the close of the 2012 fiscal year The list below represents some of the major accomplishments achieved by the City through the cooperatfve efforts of the department directors and employees of the City of Anna. It is the privilege of the City Manager to partner with these outstanding individuals in moving the City forward. F Y 2 0 1 3 A d o p t e d B u d g e t 37 FY 13 Objectives Work with the City Council to conduct a comprehen- sive review and update of the City’s strategic vision Manage the implementatfon of programs and pro- jects approved in the FY 2013 Budget Contfnue to promote fiscally responsible practfces in the management of city operatfons Contfnue to improve citfzen communicatfon includ- ing expanding the use of social media Ensure quality and tfmeliness of website and social media content. Apply for and receive the GFOA budget presentatfon recognitfon Oversee the tfmely development of the fiscal year 2014 budget. Pursue grant opportunitfes that improve City facili- tfes, fund necessary staffing and build new facilitfes that improve the quality of life for Anna’s residents and businesses. Partner with the Economic Development Corpora- tfon and pursue actfvitfes and projects that promote business and the job growth within the city of Anna Effectfvely manage all media events and matters Develop and send tfmely notfficatfon to City Council of significant events. Update the Personnel Policy Manual Submit applicatfon for NTMWD wastewater custom- er status Work with TxDOT to begin constructfon on the FM 455 highway expansion project. Contfnue to work with TxDOT and other county, state and federal agencies to secure funding for U.S. 75 through Anna. Contfnue to work with TxDOT on the planning and design schematfc for the future Highway 5 expansion program. Effectfvely oversee constructfon of capital projects including; FM 455 water and sewer relocatfon pro- ject; 2013 street rehabilitatfon project; Phase II of Slayter Creek Park; property acquisitfon for Phase III of Slayter Creek Tail; Highway 5 ground storage tank rehabilitatfon project Oversee planning and design for wastewater treat- ment plan bypass line, and Phase I of the groundwa- ter/surface water blending project Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $231,373 $232,343 $229,937 $235,783 1% SERVICES $5,625 $6,200 $3,820 $7,100 15% CAPITAL EXPENDITURES $1,143 $600 $0 $600 0% TOTAL 10-406E $238,141 $239,143 $233,757 $243,483 2% 10-406 City Manager F Y 2 0 1 3 A d o p t e d B u d g e t 38 10-406 City Manager Proposed Budget Breakdown City Manager FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 City Manager 1 1 1 1 1 Assistant to the City Manager 0.5 0.5 0.5 0.5 0.5 Receptfonist 0.5 0.5 0.5 0.5 0.5 Administratfve Assistant 1 0 0 0 0 Total 3 2 2 2 2 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance F Y 2 0 1 3 A d o p t e d B u d g e t 39 10-409 City Secretary Purpose/Description The City Secretary's office provides administrative support to the City Council and City Manager, maintains records, ad- ministers elections, and responds to Public Information Act Requests. The City Secretary attends all the City Council meetings and keeps minutes of the proceedings; works with the City Manager to prepare agendas and support materi- als for City Council meetings; coordinates City elections; works with other departments and the City Attorney to ensure Public Information Requests are handled in compliance with the Public Information Act; oversees the Records Manage- ment Program for the City; serves as custodian of all official City records . FY 12 Accomplishments Held May 12, 2012 General Electfon and Special Electfon Worked on Records Management Program – working to scan, index and make available to staff old City docu- ments such as ordinances, resolutfons, etc. and scan and index new City documents as produced Support to City Council – Attend all public meetfngs and hearings and kept minutes of the proceedings Support to City Staff - making sure documents are available to staff Will begin the Electronic Document Management program using Sharepoint with RICOH before end of FY 12 FY 13 Objectives Hold a General Electfon on May 11, 2013 Contfnue work on Records Management Program Work on City Secretary certfficatfon Contfnue to support City Council and staff Contfnue Electronic Document Management program and incorporate Planning Department documents Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $75,385 $87,391 $72,802 $90,084 3% SERVICES $9,569 $16,220 $13,956 $16,255 0% CAPITAL EXPENDITURES $900 $0 $0 $0 0% TOTAL 10-409E $85,854 $103,611 $86,758 $106,339 3% F Y 2 0 1 3 A d o p t e d B u d g e t 40 10-409 City Secretary Proposed Budget Breakdown City Secretary FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 City Secretary 1 1 1 1 1 Total 1 1 1 1 1 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance F Y 2 0 1 3 A d o p t e d B u d g e t 41 10-411 City Attorney Purpose/Description Provide professional legal assistance and advice to the City Council, City Manger, and each department. The City Attor- ney serves as the legal advisor to the City Council and City Manager; represents the City in litigation and proceedings as directed by the City Council and City Manager; reviews and provides legal opinions as requested; serves as the prosecu- tor in municipal court. The City Attorney is appointed by the City Council and is a contracted service. The City Attorney does not include any personnel costs. Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE SERVICES $124,305 $120,000 $165,000 87000 -28% TOTAL 10-411E $124,305 $120,000 $165,000 $87,000 -28% SERVICES 100% City Attorney Expense Breakdown New and Noteworthy for FY 13 Assignment of direct costs of City Prosecutor’s tfme to Municipal Court Allocatfon of costs associated with City Council meetfngs and staff meetfngs to be shared between Utflity Fund and General Fund F Y 2 0 1 3 A d o p t e d B u d g e t 42 10-414 Finance Purpose/Description The Finance Department maintains the financial integrity of the city provides comprehensive and integrated financial management of the day-to-day financial operations of the city. The Finance Department is responsible to keep and maintain financial records; provide accurate financial reporting; invest public funds in compliance with applicable laws, ordinances, and policies; procurement; basic human resource activities; and information technology operations of the city. FY 12 Accomplishments Maintained Anna’s Gold Leadership Circle award for financial transparency Graduated two staff members from the Texas Tech Instftute of Public Finance Assisted one staff member with tuitfon to achieve a bachelor’s degree in Human Resource Management Increased fund balance in the General Fund and working capital in the Utflity Fund FY 13 Objectives Apply for the Distfnguished Budget Presentatfon Award from GFOA Develop a vehicle replacement reserve fund Develop an internal service fund Update inventory and disposal process for all city assets Conduct a cost allocatfon study between the utflity fund and the water fund Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $212,923 $204,506 $199,401 $209,204 2% SERVICES $27,593 $20,167 $17,655 $33,988 69% CAPITAL EXPENDITURES $1,446 $500 $700 $700 40% TOTAL 10-414E $241,962 $225,173 $217,756 $243,892 8% F Y 2 0 1 3 A d o p t e d B u d g e t 43 10-414 Finance Proposed Budget Breakdown Finance FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Finance Director 1 1 1 1 1 Finance/HR Supervisor 1 1 1 1 1 Payroll/Accountfng Assistant 1 1 1 1 1 Total 3 3 3 3 3 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Inclusion of supplemental request for support on RFP and negotfatfon of depository banking contract Inclusion of supplemental request for contract with investment advisors to support more actfve investment strategy Increase in capital expenditures for new computer for staff F Y 2 0 1 3 A d o p t e d B u d g e t 44 10-420 Development Purpose/Description The Development Department’s mission is to promote sustainable development consistent with our Strategic Vision through the fair, consistent and ethical enforcement of the City’s land development regulations. The Development De- partment ensures that new development occurring within the City and its extra-territorial jurisdiction is consistent and in compliance with the City’s comprehensive plan, zoning ordinance, subdivision ordinance, building codes, and other development regulations. FY 12 Accomplishments Oversee constructfon and inspectfon of 14 commercial projects and an antfcipated 250 single family homes Secured over $800,000 in park grants Applied for an additfonal $500,000 in park grants Established sign plaza program Created and adopted sustainable land use controls FY 13 Objectives Oversee an estfmated 200 single family building permits and potentfal new subdivisions Develop a record management system Update impact fees Contfnue work on facilitfes inventory Develop downtown implementatfon plan Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $219,028 $218,107 $218,500 $221,039 1% SUPPLIES $5,458 $6,250 $6,250 $4,350 -30% MAINTENANCE $3,483 $4,315 $6,695 $3,800 -12% SERVICES $136,216 $82,242 $146,177 $150,250 83% CAPITAL EXPENDITURES $580 $0 $0 $1,000 N/A TOTAL 10-420E $364,765 $310,914 $377,622 $380,439 22% F Y 2 0 1 3 A d o p t e d B u d g e t 45 10-420 Development Proposed Budget Breakdown Planning FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Director of Planning 1 1 1 1 1 Planning Assistant 1 1 1 1 1 Code Enforcement Officer 0.5 1 1 1 0 Administratfve Assistance 0 0 0 0 1 Total 2.5 3 3 3 3 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Reassignment of code enforcement officer to administratfve assistant Movement of code enforcement related costs to the Fire Department Increase in services due to antfcipated 200 single family building permits F Y 2 0 1 3 A d o p t e d B u d g e t 46 10-525 Animal Control Purpose/Description Animal control and animal shelter services are currently provided through a contract with Collin County. Services in- clude responding to citizen complaints regarding animal control issues. The contract also allows animals captured with- in the City of Anna to be housed at the Collin County animal shelter. Animal Control does not have any personnel relat- ed costs as it is a contracted service. The contract does not provide pro-active or routine patrols and enforcement of animal control ordinances. Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE SERVICES $51,877 $51,338 $51,338 $56,643 10% TOTAL 10-525E $51,877 $51,338 $51,338 $56,643 10% SERVICES 100% Animal Control Expense Breakdown New and Noteworthy for FY 13 Increase passed down from Collin County to pay for additfonal patrol officers and expanded shelter services F Y 2 0 1 3 A d o p t e d B u d g e t 47 10-543 Fire Purpose/Description The Fire Department provides professional fire suppression, first responder, rescue, fire prevention, fire education, and emergency medical response services to the community of Anna. FY 12 Accomplishments Obtained grant funding for training library, 6 sets of personal protectfve equipment (PPE), an LCD projector and wildfire fire shelters. Began Advanced Life Support First responder level service. Completed extensive renovatfon to AMR ambulance bay and sleeping quarters convertfng that space into kitch- en, dining area and day room; remodeled old kitchen area into two offices. Observed an increased level of interest in recruitment and retentfon of volunteer members. Held budget planning retreat with officers to identffy and develop supplemental items priority list, and developed department budget with input from membership Upgrade portable radios to 700mhz as required for interoperable status. FY 13 Objectives Move to 24 hour three shift coverage for fire and first responder level service with additfon of paid staff. Develop a capital facilitfes improvement plan and vehicle replacement schedule. Upgrade and improve availability of Personal Protectfve Equipment (PPE). Combine code enforcement and fire inspectfons within the Fire Department. Increase efficiency of training program through the appointment of a Training Officer (volunteer). Support ALS First Responder program with the appointment of an EMS Officer (volunteer). Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $271,351 $269,523 $247,425 $412,006 53% SUPPLIES $35,826 $29,150 $42,500 $94,035 223% MAINTENANCE $33,561 $28,700 $30,700 $38,000 32% SERVICES $91,589 $107,371 $100,176 $52,208 -51% CAPITAL EXPENDITURES $826 $7,500 $125,884 $2,000 -73% TOTAL 10-543E $433,153 $442,244 $546,685 $598,249 35% F Y 2 0 1 3 A d o p t e d B u d g e t 48 10-543 Fire Proposed Budget Breakdown Fire FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Fire Chief 0 1 1 1 1 Fire Marshall 1 1 1 1 1 Fire Captain 0 0 0 0 3 Part-tfme Fire Fighter 2 2 2 2 1.5 Total 3 4 4 4 6.5 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Additfon of 2.5 FTE’s Reassignment of current firefighter positfons to fire captain Additfon of code enforcement dutfes Inclusion of stfpend and accident insurance for volunteers Funding for replacement of Personal Protectfve Equipment Inclusion of one tfme supplemental requests for improvement to vehicles and equipment F Y 2 0 1 3 A d o p t e d B u d g e t 49 10-544 Ambulance Purpose/Description Ambulance service is currently provided by AMR through a contract with Collin County. The Ambulance Department does not have any personnel costs as it is a contracted service. Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE SERVICES $102,793 $102,793 $114,800 $114,800 12% TOTAL 10-544E $102,793 $102,793 $114,800 $114,800 12% SERVICES 100% Ambulance Expense Breakdown New and Noteworthy for FY 13 Increases in the American Medical Response contract with Collin County passed down Anna F Y 2 0 1 3 A d o p t e d B u d g e t 50 10-550 Police Purpose/Description The mission of the Anna Police Department is to work to enhance the quality of life for residents that make up our hometown. Our commitment to excellence in the professional and courteous delivery of police services while operating under the framework of the U.S. Constitution in enforcing laws, reducing fear, and preserving human life is the core of our "Community First" philosophy. The department responds to all calls for service, investigates criminal complaints, assists with the prosecution of suspects, and provides 24 hours a day, 365 days per year patrol coverage. FY 12 Accomplishments Obtained grant funding for the Actfve Shooter Response Program Installed a PC-based firearms video simulator in the Police Building Obtained personal protectfve equipment for all officers including ballistfc helmets ballistfc shields and gas masks Hosted area agencies in Actfve Shooter training at the Anna ISD High School Hosted the most popular Natfonal Night Out event in the area at Slayter Creek Park with over 275 attendees Will host the Child ID fair in August at Anna PD issuing over 200 child ID’s FY 13 Objectives Contfnue to host the Natfonal Night Out event in October Ensure that all Officers receive a min. 40 hours of training, including State mandated training by Sept. 2013 Apply for grants for Automated External Defibrillators and less-lethal electrical devices like Tasers for all sworn offices Conduct the Annual Children’s ID Fair. Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $938,935 $982,850 $975,850 $1,010,515 3% SUPPLIES $63,713 $62,585 $75,897 $80,270 28% MAINTENANCE $17,353 $11,300 $25,300 $14,000 24% SERVICES $95,429 $107,448 $105,974 $121,361 13% CAPITAL EXPENDITURES $67,054 $6,400 $6,400 $15,810 147% TOTAL 10-550E $1,182,484 $1,170,583 $1,189,421 $1,241,956 6% F Y 2 0 1 3 A d o p t e d B u d g e t 51 10-550 Police Proposed Budget Breakdown Police FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Police Chief 1 1 1 1 1 Executfve Assistant 0.5 0 0 0 0 Crime Scene Technician 0 1 1 1 1 Records Manager 1 1 1 1 1 Police Sergeant 1 1 1 1 1 Police Officer 8 9 9 9 9 Total 11.5 13 13 13 13 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Increase in fuel costs Increase in maintenance costs of aging patrol vehicles Increase in contracted services such as software support for mobile data computers in patrol cars Inclusion of supplemental request for automatfc external defibrillators Grant funded purchase of a Laser Radar F Y 2 0 1 3 A d o p t e d B u d g e t 52 10-552 Municipal Court Purpose/Description Provide the public a fair, impartial and unbiased court system for the person charged with the offenses, in accordance with the Code of Criminal Procedures and the Rules of Criminal Evidence. The Anna Municipal Court has jurisdiction over all fine-only offenses that have been committed within the Anna city limits. These offenses include Class C misde- meanors, traffic offenses and City ordinance violations. The court collects fines, conducts trials, and issues warrants of arrest. FY 12 Accomplishments Will begin taking credit card payments in the office Will begin taking credit card payments online Improved operatfng efficiency during court proceedings by utflizing court technology fund to purchase and de- ploy technology in the court room helping the court clerk and judge have access to court records and allowing the clerk to immediately process cases FY 13 Objectives Increase court collectfons by contractfng with a new collectfons agency and improving coordinatfon with PD, Code Enforcement, and other City offices Increase efficiency in the court related to code violatfons Increase partfcipatfon in professional associatfons Increase cross training with UB office Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $56,218 $56,601 $55,795 $57,490 2% SUPPLIES $4,602 $5,500 $3,350 $3,850 -30% SERVICES $17,977 $24,067 $19,553 $42,808 78% CAPITAL EXPENDITURES $0 $0 $0 $0 0% TOTAL 10-552E $78,797 $86,168 $78,698 $104,148 21% F Y 2 0 1 3 A d o p t e d B u d g e t 53 10-552 Municipal Court Proposed Budget Breakdown Municipal Court FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Municipal Court Clerk 1 1 1 1 1 Total 1 1 1 1 1 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Increase in services due to allocatfon of direct costs for city prosecutor’s tfme from City Attorney to Municipal Court F Y 2 0 1 3 A d o p t e d B u d g e t 54 10-555 Parks Purpose/Description The Parks department oversees the development and maintenance of parks and recreation facilities for the citizens of Anna. The department also supports community organizations that provide sports and recreation opportunities for the youth of our community. FY 12 Accomplishments Demolitfon of Slayter Creek ball fields in preparatfon for Phase II Complete outiit of the concession stand and Slayter Creek Park Installed irrigatfon for Bryant and Geer fields Built walking trail from Slayter Creek Park to Anna High School FY 13 Objectives Begin phase II constructfon on Slayter Creek Park Begin constructfon on Collin County grant funded projects Implement new parks fees Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $58,560 $73,715 $76,676 $74,988 2% SUPPLIES $6,468 $8,500 $6,500 $8,500 0% MAINTENANCE $12,650 $15,000 $15,200 $16,500 10% SERVICES $29,817 $29,404 $31,254 $33,804 15% CAPITAL EXPENDITURES $0 $1,500 $1,500 $1,500 0% TOTAL 10-555E $107,495 $128,119 $131,130 $135,292 6% F Y 2 0 1 3 A d o p t e d B u d g e t 55 10-555 Parks Proposed Budget Breakdown Parks FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Park Superintendent 0 0.5 0.5 0.5 0.5 Total 0 .5 .5 .5 .5 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Antfcipated increase in equipment maintenance Final payment on mower lease F Y 2 0 1 3 A d o p t e d B u d g e t 56 10-580 Street Purpose/Description Provide the citizens of Anna a street and drainage system that will allow efficient operations on a daily basis while plan- ning for future growth. The Street Department performs maintenance on 68 miles of streets within the city limits . Ser- vices include: cleaning streets, clearing rights of way, mowing rights of way, routine maintenance and repair, and street sign installation and maintenance. The Street Department also performs maintenance on the storm drainage system within the city limits. FY 12 Accomplishments Rehabilitatfon of Hackberry Street east from Powell Parkway to Riggins Street Repair of Hackberry Street west from Powell Parkway to Slayter Creek Repair of Interurban Street at the creek crossing FY 13 Objectives Complete annual street rehabilitatfon project Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE SUPPLIES $841 $1,500 $1,750 $1,500 0% MAINTENANCE $29,448 $56,500 $50,500 $44,500 -21% SERVICES $123,756 $101,500 $116,010 $127,000 25% CAPITAL EXPENDITURES $150,342 $100,000 $100,000 $88,137 -12% TOTAL 10-580E $304,387 $259,500 $268,260 $261,137 1% F Y 2 0 1 3 A d o p t e d B u d g e t 57 10-580 Street Proposed Budget Breakdown Street FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 N/A Total 0 0 0 0 0 New and Noteworthy for FY 13 Decrease in maintenance due to completfon planned storm sewer project Increase in services due to changes in allocatfon of engineering costs Decrease in capital expenditures due to changes in allocatfon of engineering costs F Y 2 0 1 3 A d o p t e d B u d g e t 58 Incorporated within the General Fund are some restricted revenue trusts. These trusts are a Governmental Fund type. When monies in the restricted revenue trusts are received, their uses are restricted based upon the circumstances of their receipt. Restrictfons are placed on the spending of the revenue for a number of reasons including, but not limited to laws, ordinances, grant contracts, donatfons etc. For example, the City of Anna manages a Court Technology Fund. The revenues in the Court Technology Fund are the result of a local ordinance that dedicates a portfon of court fines for court related technology purposes. The revenue in this fund can only be spent in accordance with the ordinance. The primary Restricted Revenue Trusts the City currently manages are outlined below: Park Trust Eastside Park Trust Fire Trust Court Technology Fund Court Building Security Fund Child Safety Fund Street Capital Improvements The Park Trust is funded by park development fees as stfpulated in either developer agreements or the subdivision or- dinance and are used to serve the City’s master parks plan through development, improvement, or maintenance to the City’s parks. Park Trust revenues and expenses are illustrated below. Estfmated and proposed revenues are the result of increased building actfvity in the City. Restricted Revenue Trusts Park Trust LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5106 INTERGOVERNMENTAL REVENUE $0 $0 $0 $0 N/A 5121 DEVELOPER FEES $26,550 $0 $150,000 $131,800 N/A 5329 DONATIONS ($116) $0 $0 $0 N/A 5499 MISCELLANEOUS REVENUE $0 $0 $0 $0 N/A 5530 INTEREST REVENUE $293 $0 $790 $1,000 N/A TOTAL REVENUES $26,727 $0 $150,790 $132,800 N/A LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 6931 LAND & IMPROVEMENTS $0 $0 $0 $0 N/A 6941 OTHER CAPITAL EXPENDITURES $13,852 $10,000 $10,000 $25,000 150% TOTAL EXPENSE $13,852 $10,000 $10,000 $25,000 150% F Y 2 0 1 3 A d o p t e d B u d g e t 59 The Eastside Park Trust was created from a private donatfon for improvements to the Eastside Park, otherwise known as Geer Park. The entfre trust fund will be expended in FY 12 for parking improvements at the park. The trust has had minimal interest earnings from the donatfon and all amounts from interest earnings and the donatfon will be used for the project. Restricted Revenue Trusts Eastside Park Trust LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 6941 OTHER CAPITAL EXPENDITURES $0 $28,700 $29,032 $0 -100% TOTAL EXPENSE $0 $28,700 $29,032 $0 -100% Fire Trust LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5121 DEVELOPER FEES $4,900 $0 $5,000 $12,200 N/A 5500 GRANT REVENUE $0 $20,657 $20,000 $25,000 21% 5530 INTEREST REVENUE $535 $0 $175 $100 N/A TOTAL REVENUES $5,435 $20,657 $25,175 $37,300 81% LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 6213 PROTECTIVE GEAR $0 $0 $13,968 $15,000 N/A 6721 EDUCATION & TRAINING $0 $0 $6,984 $7,000 N/A 6911 MACHINERY & EQUIPMENT $0 $0 $469 $3,000 N/A 6941 OTHER CAPITAL EXPENDITURES $34,160 $25,000 $25,000 $18,000 -28% TOTAL EXPENSE $34,160 $25,000 $46,421 $43,000 72% The Fire Trust accounts for fees negotfated with developers for support of the Anna Fire Department. Additfonally, grant projects typically funded through the Texas Forest Service, The Federal Emergency Management Agency, and other grantors are accounted for in the Fire Trust. In FY 12, the Fire Trust supported the Fire Department with protec- tfve gear, training and educatfon, machinery and equipment, and other capital expenditures. Fire Trust revenues and expenses are illustrated below. F Y 2 0 1 3 A d o p t e d B u d g e t 60 The Court Technology Fund accounts for portfon of court fines to support the use of technology in the court room. In FY 12 the Court Technology Fund purchasing a laptop and other equipment allowing the court to operate more effi- ciently when in session. In FY 13 this fund will begin to support the annual software costs of the electronic tfcket writ- ers that will interface with existfng court software. Court Technology Fund revenues and expenses are illustrated be- low. Restricted Revenue Trusts Municipal Court Technology Fund Municipal Court Building Security Fund The Building Security Fund is also funded like the Court Technology Fund by accountfng for portfon of court fines. This revenue is used to maintain security in the court room and is budgeted for overtfme pay to officers to act as a bailiff when necessary. Building Security Fund revenues and expenses are illustrated below. LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5111 MUNICIPAL COURT TECHNOLOGY FUND $3,115 $3,000 $2,300 $3,000 0% 5530 INTEREST REVENUE $3 $100 $19 $15 -85% TOTAL REVENUES $3,118 $3,100 $2,319 $3,015 -3% LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 6703 CONTRACT SERVICES $2,050 $0 $0 $2,665 N/A 6911 MACHINERY & EQUIPMENT $0 $3,000 $2,560 $0 -100% TOTAL EXPENSE $2,050 $3,000 $2,560 $2,665 -11% LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5112 MUNICIPAL COURT BUILDING SECURITY $7,645 $1,800 $1,800 $2,000 11% 5530 INTEREST REVENUE $27 $50 $80 $85 70% TOTAL REVENUES $7,672 $1,850 $1,880 $2,085 13% LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 6799 OTHER SERVICES - MISC. $0 $3,000 $0 $3,000 0% 6911 MACHINERY & EQUIPMENT $0 $0 $0 $0 N/A TOTAL EXPENSE $0 $3,000 $0 $3,000 0% F Y 2 0 1 3 A d o p t e d B u d g e t 61 The Child Safety Fund accounts for a portfon of court fees that can be used to fund various programs designed to en- hance child safety as outlined in State Code. The Child Safety Fund has no planned expenses in FY 12 or FY 13. Child Safety Fund revenues are illustrated below. Restricted Revenue Trusts Child Safety Fund Street Capital Improvement Fund The Street Capital Improvement Fund accounts for fees negotfated with developers for the improvements of streets. No expenses are planned for the Street Capital Improvement Fund in FY 12 or FY 13. This fund’s revenues are illustrat- ed below. LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5113 CHILD SAFETY FUND $0 $0 $9,000 $9,000 N/A 5499 MISCELLANEOUS REVENUE $4,195 $2,000 $0 $0 -100% 5530 INTEREST REVENUE $40 $60 $25 $30 -50% TOTAL REVENUES $4,235 $2,060 $9,025 $9,030 338% LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE 5125 ROAD CAPITAL IMPROV. IMPACT FEE $1,500 $0 $0 $14,000 N/A 5530 INTEREST REVENUE $0 $0 $12 $15 N/A TOTAL REVENUE $1,500 $0 $12 $14,015 N/A Changes in Fund Balance All restricted revenues trusts are reported in the annual audit under the general fund as restricted fund balance. The schedule below illustrates the projected changes in fund balance at year end. 2011 Audited Fund Balance 2012 Projected Fund Balance 2013 Proposed Fund Balance Court Technology $1,067 $826 $1,176 Building Security $7,669 $9,549 $8,634 Child Safety $74 $9,099 $18,129 Eastside Park $28,804 $0 $0 Park $66,094 $206,884 $339,684 Fire $32,546 $11,300 $5,600 Street $1,500 $1,512 $15,527 Other restricted $18,519 $18,665 $18,815 Total Restricted $156,274 $257,836 $407,566 F Y 2 0 1 3 A d o p t e d B u d g e t 62 The Debt Service Fund is a special revenue fund used to account for a portfon of the ad valorem property tax dedicated to support the principal and interest payments on debt issued for General Fund Purposes. Unlike Enterprise Funds, which are intended to operate like a business enterprise, the General Fund’s intent is to focus on the flow of current financial resources. Therefore, the Debt Service Fund is a self balancing set of accounts intended to account only for General Fund Debt. All debt accounted for in the Debt Service Fund is bonded debt supported by taxes. Bonded debt includes general obligatfon bonds, certfficates of obligatfons and combinatfon tax and revenue cer- tfficates of obligatfon. Revenues required to pay the City’s outstanding debt are transferred to this fund and all monies are restricted to debt payments only. The reve- nue generated from the interest and sinking (I&S) portfon of the tax rate (0.090965 cents per $100 valuatfon) is used to fund 75% of our debt service obligatfons. The remaining 25% needed is a transfer from excess bond proceeds that are the result of a certfficate of obligatfon issued to refinance debt in 2005. Excess proceeds are held in a reserve trust fund with the intent to support the I&S fund in an effort to hold down property taxes. Of partfcular note for FY 13 is the 100% decline of “transfer in - water fund”. Previously the transfer was to cover debt service associated with debt issued for water and sewer projects. At the recommendatfon of our auditor and to show the Utflity Fund’s true annual debt obligatfon, this transfer will no longer occur thereby decreasing that revenue item. Debt Service Fund Revenue Property Taxes 75% Transfer from CO 25% Debt Service Fund Revenue Debt Service Revenue Detail LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % Change 5101 PROPERTY TAX REVENUE - I&S FUNDS $344,413 $320,738 $320,738 $332,238 4% 5102 PROPERTY TAX REVENUE - DELINQUENT $5,117 $6,775 $6,775 $7,364 9% 5103 PROPERTY TAX PENALTY & INTEREST $4,181 $2,660 $2,660 $2,911 9% 5530 INTEREST REVENUE $1,175 $0 $0 $0 REVENUES $354,886 $330,173 $330,173 $342,513 4% 5801 TRANSFERS IN - WATER FUND $205,159 $221,079 $221,079 $0 -100% 5803 TRANSFERS IN - TRUST FUNDS $107,636 $136,750 $136,750 $114,281 -16% OTHER SOURCES OF FUNDS $312,795 $357,829 $357,829 $114,281 -68% TOTAL DEBT SERVICE REVENUE $667,681 $688,002 $688,002 $456,794 -34% F Y 2 0 1 3 A d o p t e d B u d g e t 63 The City of Anna currently holds just over $4.5 million in outstanding tax supported debt. The FY 13 debt service obli- gatfons are $269,527 in principal payments and $184,767 in interest payments for a total debt service of $454,294. An additfonal $2,500 is budgeted for paying agent fees as required under the bond covenants. Of partfcular note for FY 13 is an overall decline in expenses of 34% (illustrated below). To be clear, this decline is due to Utflity Fund debt obligatfons previously accounted for in the Debt Service Fund. At the recommendatfon of our auditor and to show the Utflity Fund’s true annual debt obliga- tfon, these water and sewer debt instruments will not longer be accounted for in the Debt Service Fund. All water and sewer debt will be accounted for in the Utflity Fund. Debt Service Fund Expense Prinicpal 59% Interest 40% Other Services 1% Debt Service Fund Expense Debt Service Expense Detail LINE ITEMS ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % Change 6789 DEBT-SERVICE PRINCIPAL $37,055 $42,124 $24,268 $19,527 -54% 6790 INTEREST EXPENSE $373,970 $378,477 $200,354 $184,767 -51% 6799 OTHER SERVICES - MISC. $1,400 $2,400 $2,500 $2,500 4% SERVICES $412,425 $423,001 $227,122 $206,793 -51% 8000 BOND PAYMENT $250,000 $265,000 $240,000 $250,000 -6% OTHER USES OF FUNDS $250,000 $265,000 $240,000 $250,000 -34% TOTAL DEBT SERVICE EXPENSE $662,425 $688,001 $467,122 $456,793 -34% F Y 2 0 1 3 A d o p t e d B u d g e t 64 The City has worked closely with our financial advisors, First Southwest to develop a sound debt management plan. Looking to the future, the City antfcipates a spike in our debt service in 2014, 2015, 2018, and 2019. Left unaddressed, this could lead to a spike in I&S tax rates as well. In 2014 the I&S rate may increase by over 30% dependent upon avail- able trust funds to support the Debt Service Fund, changes in property values, and new constructfon actfvity. The table below illustrates the total annual debt service supported by the I&S tax rate through FY 2029. In order to keep the I&S rate low, the City of Anna and First Southwest have developed a series of planned refundings of existfng debt to maintain the current I&S rate through 2026. This plan is based upon very conservatfve assumptfons in growth of the property tax base and interest rates. Additfonally, the planned refundings are scheduled to coincide with interest rate resets and, where possible, refunding bonds that are callable and advance refundable. In this way the plan will minimize the present value cost to the city. Refunding and restructuring of debt is scheduled to occur in 2013, 2016 and 2017. The following chart illustrates current and future debt obligatfons based upon existfng debt obli- gatfons and projected new debt obligatfons after the planned refunding/restructuring. Debt Service Fund Expense Debt Management Plan Outstanding Debt Schedule PERIOD ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE % CHANGE 9/30/2013 $269,527 $184,767 $454,294 -2% 9/30/2014 $270,115 $193,922 $464,036 2% 9/30/2015 $273,000 $202,286 $475,286 2% 9/30/2016 $289,000 $190,065 $479,065 1% 9/30/2017 $249,000 $222,728 $471,728 -2% 9/30/2018 $220,000 $286,646 $506,646 7% 9/30/2019 $258,000 $299,675 $557,675 10% 9/30/2020 $269,000 $275,275 $544,275 -2% 9/30/2021 $286,000 $248,781 $534,781 -2% 9/30/2022 $313,000 $219,231 $532,231 0% 9/30/2023 $324,000 $187,400 $511,400 -4% 9/30/2024 $361,000 $152,525 $513,525 0% 9/30/2025 $378,000 $114,131 $492,131 -4% 9/30/2026 $414,000 $72,281 $486,281 -1% 9/30/2027 $205,000 $34,875 $239,875 -51% 9/30/2028 $65,000 $14,625 $79,625 -67% 9/30/2029 $65,000 $4,875 $69,875 -12% TOTAL $4,508,641 $2,904,089 $7,412,730 F Y 2 0 1 3 A d o p t e d B u d g e t 65 Debt Service Fund Expense *This chart is provided by First Southwest and is for discussion purposes only. Actual results may vary based upon future econom- ic conditfons. F Y 2 0 1 3 A d o p t e d B u d g e t 66 The Capital Improvement Fund accounts for financial resources to be used for the acquisitfon or constructfon of major capital facilitfes. Capital Improvements Fund projects are the result of long term planning that occurs in the Capital Projects Plan. Each year projects are updated and projected across a 5 year tfme horizon and beyond. These projects are given priority based upon a combinatfon of factors including community needs /interests and available funding. In FY 12, the Capital Improvements Fund completed a CDBG grant funded project responsible for a new water line along Powell Parkway and an Actfve Shooter Response program funded through JAG grants. The City of Anna has been successful at obtaining grants to fund various capital projects. In FY 13, the Capital Improvements Fund will begin work on the following projects: Slayter Creek Park, Phase II Collin County Parks Grants FM 455 Utflity Relocatfon Project FM 455 PID 2005 Certfficate of Obligatfon 2007 Bond Project Each project will be discussed individually including revenue and expense items. As projects can span more than a sin- gle FY, they are presented here in graphical format rather than a table illustratfng expenses for each year. The Slayter Creek Park, Phase II project is the result of the City’s long range plans to develop a top rate parks system that will meet the needs of our community and attract new residents to Anna. This project is supported by the Texas Department of Parks and Wildlife by a $500,00 grant and a $1.6 million contribu- tfon from the Community Development Corporatfon. In total the project will be a $2.1 million park project that in- cludes the following improvements: Splash Pad Additfon to the Skateboard Park Disc Golf Course Additfonal athletfc fields Athletfc field improvements including lightfng and a scoreboard Expansion of the trail system Park facilitfes and furnishings including a ga- zebo, bleachers, benches, bike racks etc. Completfon of roads and parking Capital Improvements Fund Slayter Creek Park, Phase II F Y 2 0 1 3 A d o p t e d B u d g e t 67 The City will manage the bulk of the project self performing a portfon of the work and contract the remaining portfon. In terms of budget classificatfon, all costs are considered a capital expenditure; however, the project has 7 primary components outlined above. The chart below illustrates the types of capital outlay expended for this project. Total project cost is $2.1 million. Capital Improvements Fund Collin County Parks Grant The Collin County Parks Grants project is 100% grant funded from the Collin County Parks program and will provide funds for land acquisitfon, trail constructfon and a steel trail bridge. This project will provide a key component of our interconnected trail system. Upon completfon, this project will connect the Natural Springs Park and Slayter Creek Park via walking/biking trail with an underground street crossing at FM 455 via Total project cost is $301,560. F Y 2 0 1 3 A d o p t e d B u d g e t 68 The Texas Department of Transportatfon has planned to widen FM 455 from Highway 75 to Powell Parkway (Highway 5) from two lanes to a four lane divided road. In preparatfon for widening FM 455, the City of Anna must move the water and sewer utflitfes running along FM 455. The complete cost of this project is expected to be $1.6 million and is 100% reimbursable from Collin County and TxDOT. The FM 455 Utflity Relocatfon Project will expend the full $1.6 million for services and capital ex- penditures. Services include costs for engineering and project inspectfons. Capital expenditures in- clude costs to obtain rights of way, easements, and the cost of physically moving the water and waste water utflity lines. Capital Improvements Fund FM 455 Utility Relocation Project The FM 455 Public Improvement District (PID) Pro- ject funds a median break on FM 455 at the en- trance to Anna Market Center. TxDOT did not in- clude a median break in the FM 455 project but has agreed to construct the median break at the City’s expense. The property owners that will ben- efit from the median break have agreed to a PID assessment to pay for 100% of the $75,136 project costs. The project will be divided between services for administratfve/legal expense and capital ex- penditures. FM 455 Public Improvement District F Y 2 0 1 3 A d o p t e d B u d g e t 69 This project accounts for the excess bond proceeds used to refinance General Fund Debt. A portfon of the Debt Service Fund revenue is a transfer from this project. No other expenses are accounted for in this project. The only expense is for the transfer to support the Debt Service Fund. Funds in this project are expected to run out in FY 14. The budgeted expense is $114,281 with no budgeted revenue. All expenses are funded out restricted fund balance in the Capital Improvements Fund. Capital Improvements Fund 2005 Certificate of Obligation Expense Summary ACTUAL BUDGET ESTIMATE PROPOSED % Change 2010-2011 2011-2012 2011-2012 2012-2013 CAPITAL EXPENDITURES $968 $0 $0 $0 N/A OTHER USES OF FUNDS $107,636 $136,750 $136,750 $114,281 -16% TOTAL 50-625E $107,636 $136,750 $136,750 $114,281 -16% The 2007 Bond Project Constructfon Fund was undertaken to complete various infrastructure upgrades and improve- ments throughout the City. Eligible projects include: Constructfng and improving streets and roads including: Drainage, Signalizatfon, Landscaping, Lightfng and sign- age, Acquisitfon of land and interests in land Acquiring, constructfng, and installing additfons, extensions and improvements to the City’s waterworks and san- itary sewer system Constructfng and installing municipal drainage improvements Paying legal, fiscal, engineering and architectural fees in connectfon with these projects The 2007 bond fund has a balance of just under $3,700. The remaining funds will be expended in FY 13 on eligible pro- ject not yet determined. 2007 Bond Project F Y 2 0 1 3 A d o p t e d B u d g e t 70 5 Summary of Capital Projects FIVE YEAR CAPITAL IMPROVEMENTS PLAN Capital Projects Department FY13 FY14 FY15 FY16 FY17 Future BUILDINGS City Hall Additfon Admin $500,000 Central Fire Statfon Fire $2,700,000 Fire Statfon #2 Fire $1,500,000 New City Hall Admin $10,000,000 NSP Community Center Parks $1,500,000 WATER AND SEWER Hwy 5 Ground Storage Tank Repair Water $100,000 Blended Water System Water $2,250,000 WWTP Upgrades Sewer $800,000 WWTP Relief Line Sewer $950,000 Clemens Creek Sewer Ex- tension Sewer $700,000 Elevated Storage Tank Water $2,800,000 STREETS Annual Street Repair Streets $100,000 $100,000 $100,000 $100,000 $100,000 Ferguson Pkwy. Bypass Streets $50,000 Ferguson Pkwy. (FM 455 to Foster Crossing Rd. – Engi- neering) Streets $594,000 Construct Ferguson Pkwy. (FM 455 to CR 367) Streets $1,000,000 FM 455 (U.S. 75 to East Fork Creek – Engineering) Streets $520,000 Rosamond Pkwy. (Hwy 5 to U.S. 75 – Engineering) Streets $520,000 Reconstruct Hackberry (Hwy. 5 to Slayter Creek) Streets $423,000 Mantua Rd/CR 371 (Hwy. 5 to U.S. 75 – reconstructfon) Streets $6,600,000 PARKS Slayter Creek Park Ph. II Parks $2,100,000 Trail Extensions Parks $301,560 $300,000 $300,000 $300,000 Geer Park Phase I Parks $1,500,000 VEHICLES Vehicle Replacement Police $65,550 $64,000 $32,500 $32,500 $32,500 New Command Vehicle Fire $36,000 Replace R901 Fire $450,000 Quint Fire Engine Fire $1,000,000 Replace/Purchase Trucks Public Works $25,000 $30,000 F Y 2 0 1 3 A d o p t e d B u d g e t 71 5 Summary of Capital Projects FIVE YEAR CAPITAL IMPORVEMENTS PLAN Capital Projects Department FY13 FY14 FY15 FY16 FY17 Future Machinery & Equipment Payment Kiosk Utflity Billing $40,000 Mini Excavator Public Works $50,000 Mower Parks $12,000 Backhoe Trailer Public Works $15,000 Portable Generator Public Works $85,000 Purchase New Thermal Imaging Camera (TIC) Fire $10,000 Mobile Data Computers for Fire Apparatus Fire $7,500 Pump overhaul for E902 Fire $35,000 Purchase Gas Detector Fire $6,500 Purchase 10 Scott Air-Pacs Fire $20,000 TOTAL $4,441,560 $3,426,050 $585,500 $432,500 $132,500 $31,839,500 GRAND TOTAL $40,857,610 *All projects are subject to available funding resources in any given Fiscal Year; therefore, this document does not represen t a funding guarantee for any given project F Y 2 0 1 3 A d o p t e d B u d g e t 72 Utflity Fund Revenue The Utflity Fund in an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents and few residents outside the City. Enterprise Funds are used to account for operatfons that are fi- nanced and operated in a manner similar to private business. The intent is that the costs of providing goods or services are financed primarily through user charges. All operatfons and maintenance actfvi- tfes related water, sewer, and refuse services are accounted for in the utflity fund; including but not limited to; op- eratfons, maintenance, billing and col- lectfons, administratfon, financing, and related debt service. The Utflity Fund’s principle source of revenues are charges to customers for water consumptfon, wastewater col- lectfon, refuse collectfon, and fees re- lated to providing consumers with wa- ter and wastewater services. For FY 13 a transfer from water impact fee trusts is also included with the intent to use a portfon of water impact fee revenue to pay down existfng long term debt associated with our water infrastructure. The City of Anna utflity rates include a base charge and a volumetric rate for water consumptfon beyond 2,000 gallons per month. The base rate was instftuted to provide stability in our revenue as water sales are more volatfle than other revenue sources and change based upon the climate, principally upon precipitatfon. As water sales can be volatfle, we have been conservatfve in our approach to estfmatfng water revenue so as not to overstate projected revenue. The increase in water revenue for FY 13 is based in large part upon growth in our customer base. Growth in our customer base is also driving our increase in sewer revenue and trash collectfon revenue. In FY 12, the City engaged a consultant to analyze growth and consumptfon patterns to determine projected revenue against projected costs. The results of his study indicate that our water rates can sustain the utflity fund for FY 13; however, the updated utflity rate model recommends adjustfng utflity rates gradually by 2 to 3 percent each year startfng in FY 14. TYPE ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE WATER $2,986,169 $2,256,016 $2,365,793 $2,513,730 11% RESTRICTED NET ASSET ALLOCATION $0 $0 $0 $350,000 N/A SEWER $1,328,409 $1,274,200 $1,312,975 $1,324,821 4% TRASH COLLECTION $573,248 $580,000 $583,500 $589,000 2% TOTAL $4,887,826 $4,110,216 $4,262,268 $4,777,551 16% Utility Fund Revenue Summary F Y 2 0 1 3 A d o p t e d B u d g e t 73 Utflity Fund Expense As discussed above, the Utflity Fund accounts for all the costs associated with providing and maintaining utflity services. These services are provided by three departments; Water, Sewer, and Utflity Billing. Departmental summaries are pro- vided similar to the general fund with expenses categorized by type. These types are payroll, supplies, maintenance, and capital expenditures as discussed on page 32. In additfon, the utflity fund includes an- other type, “Other Uses of Funds”. This ex- penses includes amounts previously trans- ferred to the Debt Service Fund for utflity fund debt that was previously accounted for in the Debt Service Fund. Utflity Fund debt is now fully accounted for in the Utflity Fund. The chart on the right illustrates the percent- age of costs associate with each of the three Utflity Fund departments. Below, those de- partmental costs are broken down over FY 11, 12 and 13. The departmental summaries will provide greater detail on increased expenses; however, much of the increase is due to one tfme requests to fund new projects and an increase in debt service obligatfons. The table below illustrates the 12% increase is related to maintenance, services, and capital expenditures for new pro- jects. The increases will be discussed in the departmental summaries. DEPARTMENT ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE WATER $2,691,680 $2,165,945 $2,424,967 $2,498,768 15% SEWER $1,833,990 $1,687,111 $1,745,806 $1,830,026 8% UTILITY BILLING $207,386 $226,505 $196,705 $246,298 9% TOTAL $4,733,056 $4,079,561 $4,367,478 $4,575,092 12% Utility Fund Expense Summary by Department Utility Fund Expense Summary by Type ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $782,733 $847,020 $789,460 $814,700 -4% SUPPLIES $100,888 $113,775 $107,650 $120,525 6% MAINTENANCE $321,837 $310,400 $374,000 $533,600 72% SERVICES $2,251,750 $2,493,678 $2,785,665 $2,997,618 20% CAPITAL EXPENDITURES $1,070,689 $35,585 $31,600 $108,650 205% OTHER USES OF FUNDS $205,159 $279,103 $279,103 $0 -100% EXPENDITURES $4,733,056 $4,079,561 $4,367,478 $4,575,093 12% F Y 2 0 1 3 A d o p t e d B u d g e t 74 60-701 Water Purpose/Description To provide the City of Anna a quality potable water system that meets the demands of today and tomorrow. The water department is responsible for water production, operation, and maintenance of the City’s entire water distribution sys- tem including 7 wells and the GTUA surface water connection which will provide treated surface water from the North Texas Municipal Water District. FY 12 Accomplishments Completed water line replacement funded through the CDBG grant Installed new 8” water line on Hackberry drive from Powell Parkway west to Slayter Creek Completed water rate and water system studies Rehabbed and lowered well #2 allowing for sustained productfon capacity Contfnued installatfon of radio read water meters FY 13 Objectives Relocate water utflitfes along FM 455 Renovate ground storage tank for well #2 Disconnect water lines replaced by CDBG project Complete installatfon of radio read meter system Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $511,183 $569,414 $536,600 $571,388 0% SUPPLIES $73,022 $85,200 $79,375 $86,950 2% MAINTENANCE $259,711 $224,800 $312,300 $448,000 99% SERVICES $976,552 $908,743 $1,245,904 $1,325,780 46% CAPITAL EXPENDITURES $724,676 $30,000 $30,000 $63,400 111% OTHER USES OF FUNDS $146,534 $220,788 $220,788 $0 -100% TOTAL 60-701E $2,691,678 $2,038,945 $2,424,967 $2,495,518 22% F Y 2 0 1 3 A d o p t e d B u d g e t 75 60-701 Water Proposed Budget Breakdown Water FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Director of Public Works 1 1 1 1 1 Administratfve Assistant 1 1 1 1 1 Field Supervisor 1 1 1 1 1 Crew Leader 1 1 1 1 1 Equipment Operator 1 1 1 1 0 Water Operator 1 1 1 1 2 Maintenance Laborer 3 3 3 4 4 Seasonal Laborer 1 1 1 1 1 Total 10 10 10 11 11 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Increase in maintenance costs for project to complete change over to radio read water meters Increase in services due to allocatfon of legal and IT costs Increase in services due to Inclusion of debt service previously allocated to the Debt Service Fund Increase in capital expenditures due to supplemental request for small track-hoe F Y 2 0 1 3 A d o p t e d B u d g e t 76 60-705 Sewer Purpose/Description Provide wastewater collection and treatment services to the citizens of Anna in strict compliance with the standards established by the Texas Commission on Environmental Quality and the Environmental Protection Agency. The depart- ment is responsible for the collection and treatment of wastewater from all the Anna utility customers. FY 12 Accomplishments Upgraded pumps in the Throckmorton lift statfon Reactfvated North Point North sewer system Upgraded Sweetwater lift statfon Received new waste water treatment plant permit from the Texas Commission on Environmental Quality FY 13 Objectives Relocate sewer utflitfes along FM 455 Install new relief line at sewer treatment plant Prepare for upgrades to the waste water treatment plant Prepare for constructfon of a sewer relief line Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $107,824 $110,376 $110,085 $113,018 2% SUPPLIES $14,453 $13,500 $12,200 $16,750 24% MAINTENANCE $61,899 $85,000 $56,500 $85,000 0% SERVICES $1,245,179 $1,179,921 $1,507,706 $1,614,508 37% CAPITAL EXPENDITURES $346,013 $5,000 $1,000 $4,000 -20% OTHER USES OF FUNDS $58,625 $58,315 $58,315 $0 -100% TOTAL 60-705E $1,833,993 $1,452,112 $1,745,806 $1,833,276 26% F Y 2 0 1 3 A d o p t e d B u d g e t 77 60-705 Sewer Proposed Budget Breakdown Sewer FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Wastewater Operator 2 2 2 2 2 Total 2 2 2 2 2 New and Noteworthy for FY 13 Increase in payroll due to 3% COLA Movement to the consumer centered pool plan with defined contributfon of $510 per month per employee for health insurance Increase in treatment costs for wastewater treated by the North Texas Municipal Water District Increase in services due to inclusion of debt service previously allocated to the Debt Service Fund F Y 2 0 1 3 A d o p t e d B u d g e t 78 60-710 Utflity Billing Purpose/Description To ensure excellence in customer service through accuracy, efficiency, fairness, convenience, teamwork, leadership and integrity. Utility billing is responsible for the billing of water, sewer, and trash collection serviced provided to the citi- zens of Anna. FY 12 Accomplishments Began acceptfng credit cards payments in the office Increased employee productfvity Improved proficiency in operatfng Utflity Billing Software Instftuted a customer feedback system FY 13 Objectives Provide extended services online such as utflity billing applicatfon Improve online payment portal Evaluate customer feedback Expense Summary ACTUAL 2010-2011 BUDGET 2011-2012 ESTIMATE 2011-2012 PROPOSED 2012-2013 % CHANGE PAYROLL $163,727 $167,230 $142,775 $130,293 -22% SUPPLIES $13,413 $15,075 $16,075 $16,825 12% MAINTENANCE $229 $600 $5,200 $600 0% SERVICES $30,017 $43,015 $32,055 $57,330 33% CAPITAL EXPENDITURES $0 $585 $600 $41,250 6951% TOTAL 60-710E $207,386 $226,505 $196,705 $246,298 9% F Y 2 0 1 3 A d o p t e d B u d g e t 79 60-710 Utflity Billing Proposed Budget Breakdown Utility Billing FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Customer Service Supervisor 1 1 1 1 1 Senior Customer Service Rep. 1 1 1 1 1 Customer Service Rep. 1 1 1 1 0 Receptfonist 0.5 0.5 0.5 0.5 0.5 Total 3.5 3.5 3.5 3.5 2.5 New and Noteworthy for FY 13 Decrease in payroll due to not filling an FTE in Utflity Billing Increase in services due to supplemental request to outsource billing services Increase in capital expenditures due to supplemental request to install customer kiosk F Y 2 0 1 3 A d o p t e d B u d g e t 80 Unlike the General Fund, all Utflity Fund debt is accounted for within the Utflity Fund. An Enterprise Fund is focused upon the total cost of providing services. With that focus in mind the Utflity Fund includes all costs including long term debt service. All debt accounted for in the Utflity Fund is supported by the revenues generated from the Utflity Fund’s operatfons. While some debt instruments have a tax pledge, no Utfli- ty Fund debt is supported by taxes. In FY 13, debt service accounts for 29% of the total Utflity Fund budget. On page 73 debt service is included with “Services” for purposes of grouping expense types. How- ever, to clearly illustrate Utflity Fund debt it is specifically highlighted here. For FY 13, an allocatfon of restricted net as- sets from impact fee trusts will be issued to support the FY 13 debt obligatfons in the Utflity Fund. This is a one tfme transfer to support water related debt and is not planned to be an ongoing revenue source for the Utflity Fund. Not unlike the Debt Service Fund, the Utflity Fund also faces challenges with its outstanding debt. Currently the Utflity Fund holds just over $19.2 million in outstanding debt. The City has worked closely with our financial advisors, First Southwest, to develop a sound debt management plan for the Utflity Fund as well. Looking to the future, the City an- tfcipates a spike in debt service in 2014, 2015, 2018, and 2019. Left unaddressed, this could lead to significant spikes in utflity rates to support the debt payments. In order to appropriately manage Utflity Fund debt, the City and First Southwest developed a plan to take advantage of call dates and advance refundings of debt the City is currently obligated to pay. All effort has been made to minimize the present value costs to the City. The current plan makes very conservatfve assumptfons regarding interest rates and was reviewed and analyzed in conjunctfon with a water rate study to evaluate the current water rates. No water rate increases are expected for FY 13. This plan also includes new debt issues the City will need to make in order for the water and sewer system capacity to keep pace with growth. These projects are discussed in the Capital Projects Sectfon of the budget. However, the pro- jects include the following: Waste water relief line to divert peak flows directly into the North Texas Municipal Water District’s waste water treatment system Infrastructure and improvements necessary for the City accept surface water and gradually blend with our ground water supply Utflity Fund Debt Debt Management Plan F Y 2 0 1 3 A d o p t e d B u d g e t 81 Utflity Fund Debt Utility Fund Outstanding Debt Schedule PERIOD ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE % CHANGE 9/30/2013 $422,500 $847,743 $1,270,243 4% 9/30/2014 $532,500 $850,041 $1,382,541 9% 9/30/2015 $956,250 $838,692 $1,794,942 30% 9/30/2016 $990,000 $816,883 $1,806,883 1% 9/30/2017 $1,023,750 $774,715 $1,798,465 0% 9/30/2018 $1,067,500 $848,813 $1,916,313 7% 9/30/2019 $1,066,250 $998,924 $2,065,174 8% 9/30/2020 $1,008,750 $912,800 $1,921,550 -7% 9/30/2021 $1,021,250 $842,648 $1,863,898 -3% 9/30/2022 $1,058,750 $773,817 $1,832,567 -2% 9/30/2023 $1,106,250 $702,001 $1,808,251 -1% 9/30/2024 $1,150,000 $626,770 $1,776,770 -2% 9/30/2025 $1,207,500 $548,025 $1,755,525 -1% 9/30/2026 $1,370,000 $361,068 $1,731,068 -1% 9/30/2027 $818,750 $287,945 $1,106,695 -36% 9/30/2028 $658,750 $245,341 $904,091 -18% 9/30/2029 $450,000 $211,317 $661,317 -27% 9/30/2030 $458,750 $186,249 $644,999 -2% 9/30/2031 $485,000 $160,214 $645,214 0% 9/30/2032 $512,500 $132,714 $645,214 0% 9/30/2033 $222,500 $103,659 $326,159 -49% 9/30/2034 $236,250 $90,790 $327,040 0% 9/30/2035 $248,750 $77,134 $325,884 0% 9/30/2036 $263,750 $62,764 $326,514 0% 9/30/2037 $280,000 $47,500 $327,500 0% 9/30/2038 $185,000 $34,397 $219,397 -33% 9/30/2039 $197,500 $23,612 $221,112 1% 9/30/2040 $207,500 $12,097 $219,597 -1% TOTAL $19,206,250 $12,418,670 $31,624,920 Improvements to the current waste water treatment facility Constructfon of a new water tower The table below summarizes the outstanding debt service obligatfons for the Utflity Fund through 2040 F Y 2 0 1 3 A d o p t e d B u d g e t 82 *This chart is provided by First Southwest and is for discussion purposes only. Actual results may vary based upon future economic conditions. Debt Service Fund Expense F Y 2 0 1 3 A d o p t e d B u d g e t 83 Component Units The City of Anna is also closely involved with the Anna Economic Development Corporatfon (EDC) and the Anna Community Development Corporatfon (CDC). The corporatfons are sometfmes referred to as 4A and 4B corporatfons. These corpo- ratfons are presented in the annual budget as they are a component unit of the City of Anna. Each corporatfon acts under the directfon of a seven member board and has their own budget separate and distfnct from the City of Anna budget. However, the creatfon of these corporatfons was the result of an electfon as they are funded by city sales tax revenue. In additfon to being managed by their boards, both the EDC and CDC must obtain approval from the City Council for all expenditures. As dis- cussed previously in this budget, the city sales tax rate is 8.25%. The state takes 6.5% leaving 2% in the city. Of the remaining 2% the City of Anna receives 1%, the EDC and CDC each received .5%. Both corporatfons rely almost exclusively on sales tax for their revenue; however, the EDC also has an agreement for lease rev- enue of $30,000. Each corporatfon has projected $250,000 in sales tax revenue and interest revenue of less than $230 per corporatfon. EDC: The EDC is charged to provide land, buildings, equipment, facilitfes, targeted infrastructure, and improvements that are for the creatfon/retentfon of primary jobs; and that are found by the board of directors to be required/suitable for the development, retentfon, or expansion of: Manufacturing and industrial facilitfes; Research and development facilitfes; Military facilitfes, including closed/realigned military bases; Recycling facilitfes; Distributfon centers; Small warehouse facilitfes capable of serving as decentralized storage/distributfon centers; Primary job training facilitfes for use by of higher educatfon; and Regional or natfonal corporate headquarters facilitfes. CDC: The CDC has a charge similar to the EDC. Additfonally, the CDC can develop: water supply facilitfes; projects that improve a community’s quality of life, includ- ing parks, professional and amateur sport/athletfc facilitfes, tourism/ entertainment facilitfes, affordable housing, and other improvements or expendi- tures that promote new or expanded business actfvity that create or retain prima- ry jobs; projects designed to attract new military missions, prevent the closure of existfng missions, and redevelop a closed or realigned military base; direct incen- tfves for retail in communitfes with fewer than 20,000 residents and certain land- locked citfes; hangers, airport maintenance and repair facilitfes, air cargo facilitfes, related infrastructure located on or adjacent to an airport facility, airport facilitfes provided that the eligible municipality enter into an approved development agreement with an entfty that acquires a leasehold/possessory interest from the economic development corporatfon; and rail ports, rail switching facilitfes, ma- rine ports, and inland ports. F Y 2 0 1 3 A d o p t e d B u d g e t 84 Community Development Corporatfon Purpose/Description The Anna Community Development Corporation works to identify and fund community facilities and related projects to maintain and enhance the quality of life in Anna . FY 12 Accomplishments Partnered with the EDC to support the Greater Anna Chamber of Commerce and their 5 annual community events. Partnered with the EDC to launch a Shop Local, Shop Anna program which offers an online listfng of Anna Busi- nesses and helps connect Anna residents to local businesses Issued bonds for park improvements and Phase II of Slayter Creek Park Purchased a large canopy to cover playground at Slayter Creek Park Purchased irrigatfon system for both Bryant and Geer Parks FY 13 Objectives Contfnue to support the Greater Anna Chamber of Commerce Contfnue to push the Shop Local Shop Anna Program Collect and maintain payments to the Revolving Loan Fund (startfng June 2013) Maintain debt payments Maintain appropriate cash flow and coverage ratfos for sound fiscal health and ratfngs Expense Summary ACTUAL BUDGET ESTIMATE PROPOSED % Change 2010-2011 2011-2012 2011-2012 2012-2013 SUPPLIES $3,820 $1,250 $1,050 $1,500 20% SERVICES $208,042 $166,607 $150,882 $228,374 37% CAPITAL EXPENDITURES $175,859 $50,000 $50,000 $20,000 -60% TOTAL 89-825E $387,722 $217,857 $201,932 $249,874 15% F Y 2 0 1 3 A d o p t e d B u d g e t 85 Community Development Corporatfon Proposed Budget Breakdown CDC FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Parks Superintendent .5 .5 .5 Chief Administratfve Officer .25 .25 Total .25 .25 .5 .5 .5 New and Noteworthy for FY 13 Budgeted for increased debt payments for debt issues for the completfon of Slayter Creek Park Phase II Agreement with Buxton for consumer analytfcs related to community development F Y 2 0 1 3 A d o p t e d B u d g e t 86 Economic Development Corporatfon Purpose/Description The Anna Economic Development Corporation works to coordinate efforts to expand the city’s business tax base with a focus on creating primary jobs within the City of Anna. FY 12 Accomplishments Partnered with the CDC to support the Greater Anna Chamber of Commerce and their 5 annual community events Partnered with the CDC to launch a Shop Local, Shop Anna program which offers an online listfng of Anna Busi- nesses and helps connect Anna residents to local businesses Purchased and renovated the Old Post Office to create an incubator like space within the City to attract new pro- fessional businesses Attended the ICSC local and natfonal conferences to advance the Anna name and build relatfonships with retail- ers and developers FY 13 Objectives Contfnue to support the Greater Anna Chamber of Commerce Contfnue to push the Shop Local Shop Anna Program Collect and maintain payments for the Old Post Office Maintain the Old Post Office Property Maintain appropriate cash flow and coverage ratfos for sound fiscal health and ratfngs Attend the ICSC local and natfonal conferences to advance the Anna Name and build relatfonships with retailers and developers Expense Summary ACTUAL BUDGET ESTIMATE PROPOSED % Change 2010-2011 2011-2012 2011-2012 2012-2013 SUPPLIES $1,511 $5,375 $5,375 $3,125 -42% SERVICES $129,276 $149,164 $174,527 $214,537 44% CAPITAL EXPENDITURES $70,690 $65,500 $225,500 $34,000 -48% TOTAL 89-825E $201,477 $220,039 $405,402 $251,662 14% F Y 2 0 1 3 A d o p t e d B u d g e t 87 Economic Development Corporatfon Proposed Budget Breakdown EDC FTE Schedule Descriptfon FY 09 FY 10 FY 11 FY 12 FY 13 Chief Administratfve Office .25 .25 .5 .5 .5 Total .25 .25 .5 .5 .5 New and Noteworthy for FY 13 Lease revenue from incentfve agreement on EDC property Debt payments on rehabilitatfon of old post office Agreement with Buxton for consumer analytfcs related to economic development F Y 2 0 1 3 A d o p t e d B u d g e t 88 Supplemental Informatfon The Supplemental sectfon contains the following informatfon: Fiscal Policies Full Capital Improvements Plan Full report on debt management plan as presented by First Southwest to the City Council on June 12, 2012 Bond ratfng from Fitch Ratfngs Budget informatfon from the City of Anna Charter Budget ordinance (after budget adoptfon) F Y 2 0 1 3 A d o p t e d B u d g e t 89 Fiscal Policies BUDGET POLICY Introduction: The City of Anna, Texas financial policies set forth the basic framework for the fiscal management of the City. These policies are to ensure consistency in the City's financial processes related to revenue, expenditures, purchasing, ac- countfng, investfng, fiscal management and integrity, and fund balance. The City's financial policies are intended to as- sist the City council and City staff in evaluatfng current actfvitfes and proposals for future programs. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances and conditfons. The City of An- na will ensure long-standing policies that provide guidelines for current decision-making processes and future plans. Operating Budget Policies: The fiscal year of the City of Anna shall begin on October 1 of each calendar year and end on September 30 of the fol- lowing calendar year. The fiscal year will also be established as the accountfng and budget year. The operatfng budget will be balanced with current revenues and a portfon of beginning resources or fund balances which will be greater than or equal to current expenditures or expenses. The City Manager’s budget shall assume, for each fund, operatfng revenues that are equal to, or exceed operatfng expenditures. Annual estfmates of revenues in all funds will be based on historical trends, and reasonable expectatfons and assump- tfons regarding growth, the state of the economy, and other relevant factors. A conservatfve approach will be observed in estfmatfng revenues. Expenditures in all funds will be managed so as to ensure the fund’s obligatfons are met when due. Throughout the year the Finance Department will provide regular budgetary comparisons reports to Department Directors and the City Manager. These reports will highlight Adopted Budget, Adjusted Budget, Current, Year to Date, and Previous Year ex- penditures and revenues. These periodic budgetary comparisons statements of revenue and expenditures will allow department directors to adequately manage their department’s budget and antfcipate revenues and expenditures. Expenditures within the each Fund will remain within each department's original appropriatfon unless an intra-fund budget transfer is approved by the City Manager. The City Manager is authorized to approve intra-fund transfers. Only the City Council may approve inter-fund transfers. Budget amendments will occur when total actual expenditures ex- ceed budgeted expenditures in any fund(s). Budget amendments are authorized only by the City Council approved by ordinance. If at any tfme during a fiscal year the City Manager estfmates that current year expenditures in any fund will exceed available revenues, the City Manager will submit a plan to the City Council addressing the estfmated deficit in- cluding a plan of actfon to overcome the estfmated deficit. Anna's budget is coordinated to identffy major policy issues for the City Council to consider several months prior to the budget approval date. In this way, the Council has adequate tfme to evaluate decisions and ensure proper decisions are made. The budget review process will include City Council, City staff, and citfzen partfcipatfon through public hearings. Each department head is responsible for ensuring proper budgetary procedures are followed throughout his or her de- partment. Investments made by the City of Anna will be in compliance with policies contained in the City of Anna Investment Poli- cy and the Public Funds Investment Act. All investments will be evaluated upon safety, liquidity, and yield. Interest earned from investment of available funds is based on departmental ownership of the invested dollars and will be F Y 2 0 1 3 A d o p t e d B u d g e t 90 Fiscal Policies booked to the appropriate department’s fund when realized. After City council adoptfon, the budget shall be in effect for the budget year. Final adoptfon of the budget by the City council shall constftute the official appropriatfons for the current year and shall constftute the basis of the official levy of the property tax. Following the final adoptfon of the budget by ordinance, the City Council shall pass an ordinance levying property taxes for the current year. Fund Balance: A key element of the financial stability of the City is to establish guidelines or “safe harbors” for fund balance. Unas- signed fund balance is an important measure of economic stability. It is essentfal that the City maintain adequate lev- els of unassigned fund balance to mitfgate financial risk that can occur from unforeseen revenue fluctuatfons, unantfci- pated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the City’s general operatfons. For governmental funds, it is important to distfnguish between fund equity and fund balance. A fund’s equity is typical- ly the difference between its assets and liabilitfes. Fund balance is an accountfng distfnctfon made between the por- tfons of fund equity that are spendable and non-spendable. The Governmental Accountfng Standards Board has estab- lished 5 classificatfons of fund balance: 1. Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be main- tained intact. Examples are inventory or permanent funds (i.e. endowment funds). 2. Restricted fund balance – includes amounts that can be spent only for the specific purposes stfpulated by ex- ternal resource providers either constftutfonally or through enabling legislatfon. Examples include grants and child safety fees. 3. Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal actfon of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal actfon that imposed the constraint originally. a. The City Council is the City’s highest level of decision-making authority and the formal actfon that is re- quired to be taken to establish, modify, or rescind a fund balance commitment is a resolutfon approved by the Council at the City’s Council meetfng. The resolutfon must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount sub- ject to the constraint may be determined in the subsequent period. 4. Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund (i.e. only funds in the capital projects fund may be used for capital projects). a. The City Council has authorized the City Manager to assign fund balance to a specific purpose as ap- proved by this fund balance policy. 5. Unassigned fund balance – is the residual classificatfon of the general fund and includes all amounts not con- F Y 2 0 1 3 A d o p t e d B u d g e t 91 Fiscal Policies tained in other classificatfons. Unassigned amounts are technically available for any purpose. Minimum Unassigned Fund Balance The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain an unassigned fund balance in the General Fund of 25% of total appropriatfons. Minimum Unrestricted Net Assets The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain unrestricted net assets in the Utflity Fund (a non-governmental type fund) of 25% of total appropri- atfons. At the close of each fiscal year, the unencumbered balance of each appropriatfon shall revert to the fund from which it was appropriated. If minimum fund balance falls below the goals stated above, the City Manager will develop a strategy to initfally evalu- ate current government wide spending to determine areas where cost efficiencies may be realized and implement those efficiencies. Should the analysis prove insufficient to attain the goal, a multf-year strategy will be put in place to meet the goals through a combinatfon of cost cutting, cost recovery, and revenue enhancing strategies. Order of Expenditure of Funds When multfple categories of fund balance are available for expenditure (for example, a constructfon project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restrictfve category and spend those funds first before moving down to the next category with available funds. Financial Policies: The accounts of the City are organized and operated on the basis of funds and account groups. Fund accountfng segre- gates funds according to their intended purpose and is used to aid management in demonstratfng compliance with fi- nance-related legal and contractual provisions. The City's annual budget shall be prepared and adopted on a basis consistent with generally accepted accountfng prin- ciples for all governmental and proprietary funds except the capital projects fund, which adopts project-length budg- ets. Account balances shall be reported on the modified accrual basis of accountfng within the General Fund and other gov- ernmental funds and the accrual basis of accountfng in the Utflitfes Fund. Quarterly Reports: Revenues actually received will be regularly compared to budgeted revenues and variances will be investfgated. This process will be summarized in the quarterly budget reports prepared and submitted by the City Managers Office. The City Manager shall submit to the City Council each quarterly financial report of the City. The report will compare budget estfmates against the previous quarter’s realized revenues including year to date realized revenues. The previ- ous fiscal year’s performance will also be included. F Y 2 0 1 3 A d o p t e d B u d g e t 92 Fiscal Policies General Obligation Bonds/ Debt: Anna shall have the power to borrow money on the full faith and credit of the City and to issue general obligatfon bonds for permanent public improvements. The City will also be allowed to borrow money for any other public purpose not prohibited by the Constftutfon and laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be voted on and issued in conformity with the laws of the State of Texas. Any and all bond funds approved by the vote of the Citfzens of Anna will be expended only for the purposes stated in the bond issue. The City shall also from tfme to tfme borrow money utflizing other available instruments including revenue bonds, cer- tfficates of obligatfon, et al. In all cases, the City shall evaluate the following prior to incurring debt obligatfons: Ensure that the purpose of the debt is consistent with type of debt instrument Where possible, match the useful life of the asset with the maturity of the debt Review the maintenance & operatfons property tax rate against the debt service tax rate and ensure that no more than 35% of the total tax rate is used for debt obligatfons. The City will manage the length and maturity of its long-term debt in order to lower net interest cost and to maintain future flexibility by paying off debt earlier. Revenues: The City of Anna strives to maintain and enhance a diversified and stable revenue system to shelter it from fluctuatfons in any single revenue source. The City also pursues an aggressive policy of collectfng all money due to the City. The City will contfnue an aggressive policy to reduce the level of delinquent taxes. For every annual budget, the City shall levy two property tax rates: maintenance/operatfons (M&O) and debt service (I&S). The debt service levy shall be sufficient for meetfng all principal and interest obligatfons associated with the City's outstanding debt, less money transferred into the debt service fund from other funds and any self-sustaining debt such as revenue bonds, for the budget year. The operatfon and maintenance levy shall be accounted for in the General Fund. The City is primarily a bedroom community with a heavy reliance upon property taxes. In order to supplement proper- ty taxes, the City has and will contfnue to support economic development and community development to create a vibrant community with a growing sales tax base to defray the reliance upon property taxes. The City Manager shall project revenues from every source based on actual collectfons from the preceding years and estfmated collectfons of the current fiscal year. There are a variety of factors that may impact revenues for an upcom- ing fiscal year, and the City Manager will take these into account when projectfng collectfons. Sales tax revenue projec- tfons should be conservatfve due to the nature of this more volatfle revenue source. Types of City Funds: General Fund is the government's primary operatfng fund. Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term obligatfon debt of governmental funds. Capital Projects Fund accounts for the acquisitfon of capital assets or constructfon of major capital projects not F Y 2 0 1 3 A d o p t e d B u d g e t 93 Fiscal Policies being financed by any other fund. Utflity Fund is used to account for the City's water and wastewater operatfons and certain long-term debt. Financial Statements: An annual independent audit will be completed and filed with the City Secretary within one hundred eighty (180) days from the completfon of each fiscal year, the results of which shall be presented to and approved by the City Council. The financial statements to the City are to be prepared in conformity with generally accepted accountfng principles (GAAP) in the United States of America as applied to governmental units. The Governmental Accountfng Standards Board (GASB) is the accepted standard-setting body for establishing governmental accountfng and financial reportfng principles. The City shall contract with a qualified independent auditfng firm on an annual basis, and shall use the same firm no more than five consecutfve years. INVESTMENT POLICY A component part of the overall financial management of the City of Anna, Texas is an effectfve cash management plan. Many factors determine the amount of funds on hand during any fiscal year, but these funds are an important revenue source for the City budget. It is imperatfve that these funds be managed in such a way as to be responsive to the public need and consistent with a conservatfve cash management plan. To provide this framework for effectfve cash management, an Investment Policy and a Statement of Investment Strategy have been prepared. Purpose: The Investment Policy is authorized by the City Council of the City of Anna in accordance with Chapter 2256, Texas Gov- ernment Code, also known as the Public Funds Investment Act (PFIA). The Policy addresses the methods, procedures and practfces that must be exercised to ensure effectfve and judicious fiscal management of City funds. All such funds will be managed within the guidelines of this Policy with the exceptfon of the Deferred Compensatfon Agency (TMRS) fund. Bond funds, in additfon to this Policy, shall be managed in accordance with their issuing documentatfon and all applicable state and federal law. In additfon to the Policy, the Statement of Investment Strategy, also approved by the City Council, provides a separate written investment strategy for each of the City's funds. Each investment strategy describes the investment objectfves for each partfcular fund according to the following prioritfes: 1. Investment Suitability 2. Preservatfon and Safety of Principal 3. Liquidity 4. Marketability Prior to Maturity of each Investment 5. Diversificatfon 6. Yield. Annual Review: The Investment Policy and the Statement of Investment Strategy will be reviewed on an annual basis by the City Coun- cil. Revisions and/or amendments will be approved and documented by the City Council. F Y 2 0 1 3 A d o p t e d B u d g e t 94 Fiscal Policies Investment Objectives: The investment of funds will be governed by the following investment objectfves, in order of priority: 1. Preservatfon and Safety of Principal a. Preservatfon of capital is the foremost objectfve of the City. Each investment transactfon shall seek first to ensure that capital losses are avoided, whether they are from securitfes defaults, erosion of market value, or other risks 2. Liquidity a. The City's investment portiolio will remain sufficiently liquid to enable the City to meet all operatfng re- quirements that can be reasonably antfcipated. Liquidity will be achieved by matching investment ma- turitfes with forecasted cash flow requirements 3. Yield a. The investment portiolio of the City shall be designed to attain a market rate of return throughout budg- etary and economic cycles taking into account risk constraints and liquidity needs. Return on invest- ment, while important, is of less importance than safety and liquidity. Authorized Investments: While the Public Funds Investment Act allows a wide range of eligible securitfes, the City has chosen to allow only the following securitfes, which are somewhat more conservatfve and more restrictfve than some of the other investments permitted under the PFIA: 1. Direct obligatfons of the United States government with a maturity not to exceed two years from the date of purchase. 2. Fixed rate or discount notes with a maturity not to exceed two years from the date of purchase by, guaranteed by, or for which the credit of any of the following Federal Agencies and Instrumentalitfes is pledged for pay- ment: Federal Natfonal Mortgage Associatfon (FNMA), Federal Home loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Student loan Marketfng Associatfon (SLMA), and Federal Home loan Mortgage Corporatfon (FHLMC). The City may not invest more than 25% of the City's previous month's average balance of liquid finan- cial assets in instruments covered under this paragraph (2). 3. Bonds or other interest bearing obligatfons having a stated final maturity of two years or less of which the prin- cipal and interest are guaranteed by the full faith and credit of the United States Government. 4. FDIC insured Certfficates of Deposit issued by natfonal banks domiciled in Texas with a stated final maturity of two years or less. Certfficates of Deposit balances exceeding FDIC insurance limits will be fully collateralized by securitfes listed in 1 and 2 above. Collateral will be held by the City's third-party custodian. 5. Repurchase agreements collateralized with U.S. Treasury securitfes at a minimum market value of 102 percent of the dollar value of the transactfon, with any accrued interest accumulated on the collateral included in the calculatfon. The City may not lend securitfes but only invest excess cash against receipt of appropriate collat- eral. Repurchase agreements will be entered into only with primary government securitfes dealers (as defined by the Federal Reserve) who have executed a City-approved Master Repurchase Agreement. Collateral will be delivered to and held by an AAA rated (as raged by Fitch, Moody's or Standard & Poor's) third party safekeep- ing agent approved by the City and held in the City's name. The maximum term for direct repurchase agree- ments will be limited to 90 days or less. The City may not invest more than 10% of the City's previous month's average balance of liquid financial assets in repurchase agreements. 6. SEC-registered, AM-rated (as rated by Fitch, Moody's or Standard & Poor's), no-load money market mutual funds with a dollar-weighted average portiolio maturity of 90 days or less. Assets will consist exclusively of those securitfes listed as authorized investments in this sectfon. The investment objectfve of the fund must be to maintain a stable dollar net asset value of USD 1.00. The maximum stated maturity of any single security in F Y 2 0 1 3 A d o p t e d B u d g e t 95 Fiscal Policies the fund will be 13 months, and the dollar weighted average portiolio maturity will be 90 days or less. The City may not invest funds under its control in an amount that exceeds 10% of total assets of any individual money market mutual fund. The City may not invest more than 10% of the City's previous month's average balance of liquid financial assets in any single money market funds. Cumulatfvely, the City may not invest more than 25% of the City's previous month's average balance of liquid financial assets in money market funds. A fund pro- spectus shall be reviewed for compliance with policy prior to depositfng monies. 7. State or local investment pools organized under the Interlocal Cooperatfon Act and authorized by the City Council. The investment pool must be rated AM-rated (as rated by Fitch, Moody's or Standard & Poor's) and have a dollar-weighted average portiolio maturity of 60 days or less. Assets will consist exclusively of those se- curitfes listed in this sectfon D. The investment objectfve of the pool must be to maintain a stable dollar net asset value. All securitfes owned in the pool will have a stated remaining maturity of 13 months or less. The City may not invest more than 10% of the City's previous month's average balance of liquid financial assets in a sin- gle investment pool. Cumulatfvely, the City may not invest more than 55% of the City's previous month's aver- age balance of liquid financial assets in investment pools in aggregate, nor more than 25% in anyone pool. Prohibited Investments: The City is expressly prohibited from entering into optfons trading or futures contracts, hedging or purchasing any secu- rity that is not authorized by Texas State law, or any direct investment in asset backed or mortgage-backed securitfes. The City expressly prohibits the acceptance of Interest-only (IO) and Principal-only (PO) Collateralized Mortgage Obliga- tfons (CMOs) as collateral for bank deposits or repurchase agreements. "No transactfons may be entered for specula- tfon. No transactfon may be entered using leverage." Protection of Principal: The City shall seek to control the risk of principal loss due to the failure of a security issuer or grantor. Such default risk shall be controlled by investfng only in the safest types of securitfes as defined in the Policy, by collateralizatfon as re- quired by law, and through portiolio diversificatfon by maturity and type. The purchase of individual securitfes shall be executed by "delivery versus payment" (DVP) method through the City's safekeeping agent. By so doing, City funds are not released untfl the City has received, through the safekeeping agent, the securitfes purchased. Exceptfons would be deposits made to investment pools and mutual funds. Diversification by Investment Type: Diversificatfon by investment type shall be maintained by ensuring an actfve and efficient secondary market in portiolio investments and by controlling the market and opportunity risks associated with specific investment types. Undue con- centratfons of assets in a specific maturity sector shall be avoided. Bond proceeds may be invested in a single security of investment if it is determined that such an investment is necessary to comply with Federal arbitrage restrictfons or to facilitate arbitrage record-keeping and calculatfon. Diversification by Investment Maturity: In order to minimize risk of loss due to interest rate fluctuatfons, investment maturitfes will not exceed the antfcipated cash flow requirements of the funds. Maturity guidelines by fund are as follows: Operating Funds: The weighted-average days to maturity for the operatfng fund portiolio shall be fewer than 270 days and the maximum allowable maturity shall be two years. F Y 2 0 1 3 A d o p t e d B u d g e t 96 Fiscal Policies Construction and Capital Improvement Funds: The investment maturity of constructfon and capital improvement funds shall generally be limited to the antfcipated cash flow requirement or the "temporary period" as defined by Federal tax law. During the temporary period bond pro- ceeds may be invested at an unrestricted yield. After the expiratfon of the temporary period, bond proceeds subject to yield restrictfon shall be invested considering the antfcipated cash flow requirements of the funds and market condi- tfons to achieve compliance with the applicable regulatfons. The maximum maturity for all constructfon or capital im- provement funds shall not exceed the expected final expenditure date for the bond proceeds. Debt Service Funds: Debt Service Funds shall be invested to ensure adequate funding for each consecutfve debt service payment. Invest- ments will be made in such a manner as not to exceed an "unfunded" debt service date with the maturity of any invest- ment. An unfunded debt service date is defined as a coupon or principal payment date that does not have cash or in- vestment securitfes available to satfsfy said payment. Debt Service reserve funds shall have as the primary objectfve the ability to generate a dependable revenue stream with a low degree of volatflity. Purchased securitfes for reserve funds will have a stated final maturity of three years of less. Ensuring Liquidity: Liquidity shall be achieved by analyzing and antfcipatfng cash flow requirements, by investfng in securitfes with actfve secondary markets and by investfng in eligible money market mutual funds and local government investment pools. A security may be liquidated for the following reasons: To meet unantfcipated cash requirements To re-deploy cash into other investments expected to outperform current holdings To otherwise to adjust the portiolio. Depository Agreements: The City will select and designate a qualified bank depository for a three to five year period. Consistent with the requirements of state law, the City will require that all deposits be federally insured or collateral- ized with eligible securitfes. If deposits are collateralized, they will be held by the City's safekeeping agent. The deposi- tory will be required to sign a Safekeeping Agreement with the City and the City's safekeeping agent. The Agreement shall define the City's rights to the collateral in case of default, bankruptcy, or closing and shall establish a perfected security interest in compliance with Federal and State regulatfons. It shall further address any concerns in relatfon to acceptable collateral, levels of collateral, substftutfon and additfon of collateral, and reportfng and monitoring of collat- eral. Safekeeping and Custody: Securitfes purchased for the City's portiolios will be delivered in book entry form and will be held in third party safe- keeping by a Federal Reserve member financial instftutfon designated as the City's safekeeping and custodian bank. The City will execute Safekeeping Agreements prior to utflizing the custodian's safekeeping services. The safekeeping agreement must provide that the safekeeping agent will immediately record and promptly issue and deliver a safe- keeping receipt showing the receipt and the identfficatfon of the security, as well as the City's interest. All securitfes owned by the City will be held in a Customer Account naming the City as the Customer. Competitive Bidding: It is the policy of the City to require and document at least three competftfve bids or proposals for all security purchas- es and sales except for: 1. Transactfons with money market mutual funds and local government investment pools; F Y 2 0 1 3 A d o p t e d B u d g e t 97 Fiscal Policies 2. New agency securitfes purchased at issue through an approved broker/dealer; or 3. Overnight "sweep" transactfons with the City depository bank. Authority to Invest: Management responsibility for the investment program is assigned to the City Manager by the City Council. As such, the City Manager shall oversee and approve any deposit, withdrawal, investment, transfer, documentatfon, and other- wise manage City funds according to this policy. Any limitatfons placed on this authority will be specifically stated. No person may engage in an investment transactfon or the management of funds except as provided under the terms of the Investment Policy, the Statement of Investment Strategy, and other operatfonal procedures established by the City Manager. The Finance Director shall be considered the Investment Officer for the purposes of this policy. Within twelve (12) months after taking office or assuming dutfes, each Investment Officer shall attend a training session relatfng to his/her investment responsibilitfes and receive not less than ten (10) hours of instructfon. On an ongoing basis, all Investment Officers shall receive not less than ten (10) hours of instructfon in each subsequent two-year peri- od. Training must include educatfon in investment controls, security risks, strategy risks, market risks and compliance with the Public Funds Investment Act. Prudent Investment Management: The designated Investment Officer shall perform his/her dutfes in accordance with the adopted Investment Policy and internal procedures. In determining whether an Investment Officer has exercised prudence with respect to an invest- ment decision, the investment of all funds over which the Investment Officer had responsibility, rather than the pru- dence of a single investment, shall be considered. Investment Officers actfng in good faith and in accordance with these policies and procedures shall be relieved of personal liability. Standard of Care: The standard of care used by the City shall be the "prudent investor rule" and shall be applied in the context of manag- ing the overall portiolio within the applicable legal constraints. The Public Funds Investment Act states: "Investments shall be made with judgment and care, under circumstances then prevailing, that a person of pru- dence, discretion, and intelligence would exercise in the management of the person's own affairs, not for specula- tion, but for investment, considering the probable safety of capital and the probable income to be derived." Standard of Ethics: The designated Investment Officer shall act as custodian of the public trust avoiding any transactfon which might in- volve a conflict of interest, the appearance of a conflict of interest, or any actfvity which might otherwise discourage public confidence. The Investment Officer shall refrain from personal business actfvity that could conflict with proper executfon of the investment program, or which could impair his/her ability to make impartfal investment decisions. Additfonally, the Investment Officer shall file with the Texas Ethics Commission and the City a statement disclosing any personal business relatfonship with an entfty seeking to sell investments to the City or any relatfonship with the second degree by affinity or third degree of consanguinity to an individual seeking to sell investments to the City. Internal Controls: The City Manager will establish a system of internal controls that shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentatfon by third partfes, unantfcipated changes in financial markets, or imprudent actfons by investment officials. Controls deemed most important would include, but not be limited to: 1. Control of collusion 2. Separatfon of dutfes F Y 2 0 1 3 A d o p t e d B u d g e t 98 Fiscal Policies 3. Separatfng transactfon authority from accountfng and record-keeping 4. Custodial safekeeping 5. Avoidance of bearer-form securitfes 6. Clear delegatfon of authority 7. Written confirmatfon of telephone transactfons 8. Minimizing the number of authorized investment officials 9. Documentatfon of transactfons Marked to Market: The City's complete investment portiolio will be marked to market monthly with pricing informatfon coming from relia- ble and generally accepted sources. Should the price of a partfcular security not be available from reliable and generally accepted sources, the price may be estfmated but the City Manager and City Council must be informed immediately of such actfon. Investment Committee &: Reporting: To review strategies, policies and investment results under the City's Investment Policy, an investment committee com- prised of the City Manager, City Finance Director, Investment Officer(s), and the Finance Supervisor will meet on a quarterly basis. The Investment Committee will prepare a brief report for the City Council as appropriate but at a mini- mum every quarter. PURCHASING POLICY The City Manager is authorized to make purchases and enter into contracts on behalf of the City if the amount does not exceed $50,000. All purchases, transactfons and contracts for expenditures involving more than $50,000 must be expressly approved in advance by the City Council during a duly notfced public meetfng. Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulatfon or policy, all purchases, transac- tfons and contracts for expenditures regardless of amount must be expressly approved in advance by the City Council during a duly notfced public meetfng if—with respect to such purchase, transactfon or contract for expenditure—any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chap- ter 176 of the Texas Local Gov’t Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is de- scribed under Sectfon 176.002 of the Texas Local Gov’t Code, which includes actfng as an agent of a Vendor. Otherwise, the following purchasing procedure is outlined in accordance with the noted dollar thresholds of expenditures. Petty Cash: Any and all purchases under $15.00 should be paid from Petty Cash. This reduces paperwork and eliminates checks. Petty Cash may also be used for minor purchases of goods or services that are more than $15.00, where deemed ap- propriate. A receipt from the purchase is required at tfme of reimbursement and the employee requestfng reimburse- ment will be required to sign a receipt for the cash. Expenditures for Goods or Services $1-$500: Department Directors are allowed to make purchases for goods or services under $500 without seeking bids. Expenditures for Goods or Services $501-$2,999: Expenditures for good or services over $500 but not exceeding $2,999 may be approved at the department level by the Department Director. Department directors should request and review at least three different quotes or bids unless F Y 2 0 1 3 A d o p t e d B u d g e t 99 Fiscal Policies the purchase is listed under the General Exemptfons in Texas Local Government Code Chapter 252.022. This is an infor- mal bid process and can be done via mail, e-mail, delivery service, telephone or facsimile. In lieu of providing three different quotes or bids, and when authorized by the City Manager, Department Directors may purchase goods or ser- vices in this category through a local government purchasing cooperatfve or interlocal purchasing agreement of which the City of Anna is a member or eligible to partfcipate, where the products and services to be purchased have been submitted for competftfve procurement as outlined by state statute. Expenditures for Goods or Services $3000-$49,999: Expenditures for good or services equal to $3,000 but not exceeding $49,999 are also bid on an informal basis. At least three written bids or quotes are required unless the purchase is listed under the General Exemptfons in Texas Local Government Code Chapter 252.022. The City will contact Historically Underutflized Business as stfpulated in Texas Lo- cal Government Code Chapter 252.0215 unless the purchase is listed under the General Exemptfons in Texas Local Gov- ernment Code Chapter 252.022. In lieu of providing three different written quotes, goods or services in this category may be purchased through a local government purchasing cooperatfve or interlocal purchasing agreement of which the City of Anna is a member or eligible to partfcipate, where the products and services to be purchased have been sub- mitted for competftfve procurement as outlined by state statute. All purchases in this category must be approved in advance by the City Manager. Once the bids have been received and evaluated, the department collectfng bids or quotes shall submit a requisitfon accompanied with a memorandum recommending a bidder. After authorizatfon has been received from the City Man- ager, the purchase requisitfon is processed. Expenditures for Goods or Services $50,000 and over: All purchases above $50,000.00 must be purchased under formal competftfve sealed bidding rules or as other wise per- mitted by the Local Government Code under Chapters 252 and 271. No bid process shall begin untfl approved by the City Council and City Manager. The City Council hereby selects as its designated representatfve the City Manager of the City of Anna, Texas to discharge on its behalf any duty it may have now or in the future with respect to any purchase or contract to determine the method(s) of purchase that will provide the best value to the City. Professional Services: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulatfon or policy, purchases of professional services regulated by the Professional Services Procurement Act (PSPAP) shall be in accordance with the requirements outlined in the PSPA as amended. Emergency Purchases: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulatfon or policy, the City Manager is authorized to make or approve any emergency purchase necessary to respond to a public calamity, or to preserve or protect the public health or safety of the municipality’s residents in accordance with the General Exemptfons authorized in Sectfon 252.022 of the Texas Local Government Code without seeking bids or con- tactfng Historically Underutflized Businesses. The City Manager shall advise the City Council of any such emergency purchase in excess of $50,000. When an emergency occurs during office hours and the expense exceeds the normal department approval amount, the department director shall contact the City Manager to receive authorizatfon for the emergency purchase. F Y 2 0 1 3 A d o p t e d B u d g e t 100 Fiscal Policies PURCHASING CARD POLICY Purpose: The purpose of the Purchasing Card Program is to provide the City with an efficient and controllable method of making small dollar commodity, service, and travel purchases. The City will issue cards from a company that has received the State of Texas purchasing card contract or under a Co-operatfve purchasing agreement with another municipality with- in the State of Texas. The card will be primarily used in place of petty cash, small regular purchase orders, blanket pur- chase orders (where sales are made over-the-counter), emergency purchase orders, and all other credit cards. This card policy is not intended to replace, but rather supplement existfng purchasing, travel and other City policies. Partfci- patfng in the purchasing card program will be the optfon of the employer. Employees that are not issued a card may obtain travel advances or reimbursements Use: The card will be used for the following: 1. Any transactfon that does not exceed $1,500 or the cardholder's transactfon limit, whichever is less. 2. Over-the-counter type retail purchases normally made using a charge account or discontfnued credit cards. 3. Travel related purchases in compliance with the City of Anna Travel Policy. 4. Any other business related purchase as long as: 5. The vendor accepts credit cards, and the goods/services purchases are not covered under a City supply con- tract. Accountfng Department will periodically update staff via email of any commoditfes that cannot be pur- chased with the purchasing card. 6. All other purchases are to be made using the standard purchasing process. Transaction/Card Limits: Each individual purchasing card will have transactfon and/or spending limits. The Finance Director has the ability also to limit types of purchases, place of purchase and hours of day purchases can be made on individual cards. The total pur- chase price as printed on the individual credit card receipt is known as the "transactfon amount". The purchasing card may be limited by the merchant type, transactfon amount, and monthly transactfon limit. The Department Director, Finance Director, and City Manager determine limits. *The City Manager may set different limits for specific individuals as needed. Restrictions: Employees may NOT use the card for the following: 1. Any purchases of items for personal use 2. Cash refunds or advances Cardholder Class *Per Transaction *Per Month Management $ 2,500 $ 5,000 City Manager, Department Directors Supervisory $ 1,500 $ 3,000 Division Heads, Supervisors Intermediate Level Users $ 500 $ 2,000 F Y 2 0 1 3 A d o p t e d B u d g e t 101 Fiscal Policies 3. Any purchases of goods/services at a merchant type not considered prudent or of good judgment 4. Any transactfon amount greater than the cardholder's transactfon limit 5. Items under contract, unless an emergency exceptfon is granted by the Finance Department 6. Alcohol, liquor, and tobacco products of any kind 7. Separate, sequentfal and component purchases or any transactfon made with intent to circumvent City pur- chasing policy or state law 8. Any other purchase specifically excluded in the City purchasing policy Receipts: All purchases must be supported by a receipt for the purchaser. Any purchase without a receipt shall be the responsi- bility of the purchaser unless approved by the City Manager. Audit review: Purchases using the Anna Purchasing cards shall be reviewed for compliance with this policy by City Auditor during the annual audit process. ETHICS POLICY This Ethics Policy is cumulatfve of any provisions governing ethics or conflicts of interest under state law, the City of Anna’s Home-Rule Charter, and the Anna Code of Ethics, all as amended, and in the event of any conflict between any such provisions, the most restrictfve provision shall govern. This Ethics Policy will promote the objectfves of protectfng government integrity and facilitatfng the recruitment and retentfon of qualified ethical personnel needed by the City of Anna. Such policy is implemented by prescribing essentfal standards of ethical conduct without creatfng unnecessary obstacles to entering public service. As a public entfty, the City is expected to be able to demonstrate to the public that it has spent their tax dollars wisely. All partfcipants in the City are responsible for insuring that money is spent in accordance with the terms and conditfons of all the policies of the City of Anna. Public employees must discharge their dutfes impartfally so as to assure fair com- petftfve access to government procurement by responsible contractors. Public officials and employees must take pre- cautfons to avoid even the appearance of impropriety, self-dealing, favoritfsm, or undue influence. Therefore, all persons with the responsibility of handling City of Anna monies must obtain and/or create as appropriate adequate documentatfon, including a clear explanatfon of exactly what each purchase is for. General Ethical Standards: 1. It shall be a breach of ethics to attempt to realize personal gain through public employment with the City of Anna by any conduct inconsistent with the proper discharge of the employee's dutfes. 2. It shall be a breach of ethics to attempt to influence any public employee of the City of Anna to breach the standards of ethical conduct set forth in this code. 3. It shall be a breach of ethics for any employee of the City of Anna to partfcipate directly or indirectly in a pro- curement when the employee knows that: a. The employee or any member of the employee's immediate family has a financial interest in the procurement; b. A business or organizatfon in which the employee, or any member of the employee's immediate family, has a financial interest pertaining to the procurement; F Y 2 0 1 3 A d o p t e d B u d g e t 102 Fiscal Policies c. Any other person, business or organizatfon with whom the employee or any member of the employee's immediate family is negotfatfng or has an arrangement concerning prospectfve employment is involved in the procurement. 4. It shall be a breach of ethics for any employee of the City of Anna to accept, receive, or arrange for any gratuity or any offer of employment in connectfon with any decision, approval, denial, recommendatfon, preparatfon of any part of a program requirement or purchase request, influencing the content or any specificatfon or pro- curement standard, rendering of advice, investfgatfon, auditfng, or in any other advisory capacity in any pro- ceeding or applicatfon, request for ruling, determinatfon, claim or controversy, or other partfcular matter per- taining to any program requirement of a contract or subcontract, or to any solicitatfon or proposal thereof, pending before this government. 5. It shall be a breach of ethics for any employee of the City of Anna to approve or allow any purchase, transac- tfon or contract for expenditure regardless of the amount unless said employee has been expressly authorized to do so in advance by the City Council during a duly notfced public meetfng if—with respect to such purchase, transactfon or contract for expenditure—any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov’t Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is described under Sectfon 176.002 of the Texas Local Gov’t Code, which includes actfng as an agent of a Vendor. 6. It shall be a breach of ethics for any employee or former employee of the City of Anna knowingly to use confi- dentfal informatfon for actual or antfcipated personal gain, or for the actual or antfcipated gain of any person. BANK DEPOSITORY The City Council shall select a bank depository that will meet the needs of the City and comply with all state laws gov- erning such depositories and the management and safeguarding of public funds. The City shall issue a request for pro- posals/qualificatfons for bank depository services every five years, or more often if necessary. However, said require- ments shall not restrict the number of years, either cumulatfvely or consecutfvely, that any single bank depository shall be used. Depositories shall be selected based on a number of criteria, including, but not limited to, ability to comply with state and local statutes, customer service, hours of operatfon, yield on deposits, geographic proximity to City hall, services offered, etc. Contacts June 12, 2012 City of Anna, Texas James S. Sabonis Andre Ayala Senior Vice President Assistant Vice President 325 N. St. Paul Street, Suite 800 325 N. St. Paul Street, Suite 800 Dallas, Texas 75201 Dallas, Texas 75201 Direct 214.953.4195 Direct 214.953.4184 Fax 214.953.4050 Fax 214.953.4050 jim.sabonis@firstsw.com andre.ayala@firstsw.com Debt Management Analysis For discussion purposes only, actual results may vary Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S Table of Contents 1.Outstanding General Obligation Debt 2.Outstanding Notes Payable from I&S Taxes 3.Breakdown of General Obligation Debt and Notes 4.Analysis of Existing General Obligation Debt (I&S Fund) 5.Interest and Sinking Fund Debt Management Program 6.Outstanding Water & Sewer System Debt 7.Water and Sewer System Debt Management Program 1 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Outstanding General Obligation Debt as of June 12, 2012 2 lklklklk Series Name Amount Outstanding Interest Rates Call Date Final Maturity Supported by: 1976 GO Water Bonds $20,000 5.00% Currently Callable 1/1/2016 Water & Sewer Revenues 2006 Comb Tax & Ltd Surplus Rev C/O $1,975,000 3.50 – 5.25% 2/15/2016 2/15/2026 I&S Taxes 2007 Comb Tax & Rev C/O $1,055,000 3.95% through 2/15/2017 15% thereafter 2/15/2017 2/15/2027 I&S Taxes 2007 GO Ref Bonds $270,000 3.95% through 2/15/2017 15% thereafter 2/15/2017 2/15/2027 I&S Taxes 2009 Comb Tax & Rev C/O $825,000 4.28% through 2/15/2018 15% thereafter 2/15/2018 2/15/2029 I&S Taxes 2009 Comb Tax & Rev Ref Bonds $4,090,000 4.28% through 2/15/2018 15% thereafter 2/15/2018 2/15/2026 Water & Sewer Revenues 2011 PPFCOs $360,000 3.34% through 2/15/2014 Variable thereafter 2/15/2014 2/15/2026 I&S Taxes TOTAL $8,595,000 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Outstanding Notes Payable as of June 12, 2012 3 Series Name Amount Outstanding Interest Rates Call Date Final Maturity Supported by: 2009A Finance Contract (Backhoe) $37,571.48 5.00% n/a 2/2/2014 W&S Revs 2009C Finance Contract (Fire Truck) $23,641.37 5.00% n/a 2/3/2014 I&S Taxes TOTAL $61,212.85 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Breakdown of General Obligation Debt and Notes as of June 12, 2012 4 I&S Tax Supported Debt Water & Sewer Supported Debt Series Name Amount Outstanding Series Name Amount Outstanding 2006 Comb Tax & Ltd Surplus Rev C/O $1,975,000 1976 GO Water Bonds $20,000 2007 Comb Tax & Rev C/O $1,055,000 2009 Comb Tax & Rev Ref Bonds $4,090,000 2007 GO Ref Bonds $270,000 2009A Finance Contract (Backhoe) $37,571 2009 Comb Tax & Rev C/O $825,000 2009C Finance Contract (Fire Truck) $23,641 2011 PPFCOs $360,000 TOTAL $4,508,641 TOTAL $4,147,571 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Analysis of Existing General Obligation Debt (I&S Fund) 5 A B C D E F G H I J K L M Existing 97%I&S Tax Fiscal Existing Existing Budgeted Less:Net Less:Net Rate Variance Year Estimated Taxable General I&S Tax-Supp.Paying Self-General I&S General Projected Variance from Ending Growth Assessed Obligation Notes Agent Supporting Obligation Fund Obligation I&S from Fiscal '12 9/30 Factor(1) Valuation(2)Debt Service Debt Service (3) Fees(3)Debt Service Debt Service Drawdown(4)Debt Service Tax Rate(5)Fiscal '12 in Dollars 2012 362,969,678$ 644,526$ 26,696$ 1,900$ 206,200$ 466,923$ 136,750$ 330,173$ 0.0910$ 2013 1.01%366,631,486 646,957 12,729 1,900 205,392 456,194 132,500 323,694 0.0910 0.0001 (6,479) 2014 0.00%366,631,486 655,380 12,729 1,900 204,072 465,936 59,206 406,730 0.1144 0.0234 76,557 2015 0.00%366,631,486 1,069,478 - 1,900 594,192 477,186 - 477,186 0.1342 0.0432 147,013 2016 0.00%366,631,486 1,079,282 - 1,900 600,217 480,965 - 480,965 0.1352 0.0443 150,792 2017 0.00%366,631,486 1,067,132 - 1,900 595,404 473,628 - 473,628 0.1332 0.0422 143,455 2018 0.00%366,631,486 1,219,694 - 1,900 713,048 508,546 - 508,546 0.1430 0.0520 178,373 2019 0.00%366,631,486 1,350,925 - 1,900 793,250 559,575 - 559,575 0.1573 0.0664 229,402 2020 0.00%366,631,486 1,096,025 - 1,900 551,750 546,175 - 546,175 0.1536 0.0626 216,002 2021 0.00%366,631,486 932,156 - 1,900 397,375 536,681 - 536,681 0.1509 0.0600 206,508 2022 0.00%366,631,486 912,731 - 1,900 380,500 534,131 - 534,131 0.1502 0.0592 203,958 2023 0.00%366,631,486 863,525 - 1,900 352,125 513,300 - 513,300 0.1443 0.0534 183,127 2024 0.00%366,631,486 841,150 - 1,900 327,625 515,425 - 515,425 0.1449 0.0540 185,252 2025 0.00%366,631,486 793,756 - 1,900 301,625 494,031 - 494,031 0.1389 0.0480 163,858 2026 0.00%366,631,486 760,406 - 1,900 274,125 488,181 - 488,181 0.1373 0.0463 158,008 2027 0.00%366,631,486 239,875 - 1,900 - 241,775 - 241,775 0.0680 (0.0230) (88,398) 2028 0.00%366,631,486 79,625 - 1,900 - 81,525 - 81,525 0.0229 (0.0680) (248,648) 2029 0.00%366,631,486 69,875 - 1,900 - 71,775 - 71,775 0.0202 (0.0708) (258,398) 2030 0.00%366,631,486 - - - - - - - - (0.0910) (330,173) 2031 0.00%366,631,486 - - - - - - - - (0.0910) (330,173) 2032 0.00%366,631,486 - - - - - - - - (0.0910) (330,173) 14,322,499$ 52,154$ 34,200$ 6,496,900$ 7,911,953$ 328,456$ 7,583,497$ (1) For illustration purposes only. (2) Fiscal Year 2012 value is as reported by the Collin Central Appraisal District. Fiscal Year 2013 Value is preliminary as reported by the Appraisal District. (3) As reported by the City. (4) As reported by the City of Anna. Represents remaining balance of Series 2006 Certificates of Obligation and other receivables. Amount shown for 2012 represents current budget. (5) Tax Rate for 2012 is actual. Subsequent rates calculated at 97% tax collections. Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Analysis of Existing General Obligation Debt (I&S Fund) 6 $- $0.0200 $0.0400 $0.0600 $0.0800 $0.1000 $0.1200 $0.1400 $0.1600 $0.1800 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 I & S T a x R a t e De b t S e r v i c e City of Anna, Texas I&S Tax Debt Analysis (Existing) As of June 12, 2012 Net General Obligation Debt Service Projected I&S Tax Rate Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 1 of 6) 7 The City is currently subsidizing the Interest and Sinking (“I&S”) Fund Tax Rate by utilizing excess bond proceeds from the Series 2006 Certificates of Obligation. It is expected the excess funds in the I&S Fund (currently approx. $285,000 ) will run out after the Fiscal 2013 tax rate mitigation drawdown. The objective of this analysis is to refund debt for savings (when possible) and restructure principal payments in order to maintain the existing I&S Tax Rate. The assumed Taxable Assessed Valuation of $362,969,678 (Tax Year 2011 / Fiscal Year 2012 as reported by the appraisal district) is not inflated over time. Extension of maturity may be required under this stress scenario of no growth and no tax increase for as long as possible. This proposed I&S Fund Debt Management program is expected to be implemented in 3 phases, the first one being in Fiscal Year 2014, when excess funds in the I&S Fund run out. Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 2 of 6) 8 PHASE 1 – December 2013 (subject to change) –Escrowing of maturities 2014 – 2016 ($290,000) of the Series 2006 Certificates of Obligation –Refunding of Series 2011 PPFCOs before interest rate reset in 2/15/2014 –Present Value Cost of Phase 1 is estimated at approx. $0 – Possible PV benefit –Interest Rate of Refunding Bonds assumed at 3.25% for 12 years –No extension of original bond issues’ maturity, but rearranging of Series 2006 Certificates maturities Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 3 of 6) 9 PHASE 2 – December 2016 (subject to change) –Refunding of all outstanding Series 2006 Certificates of Obligation; maturities 2017 – 2026 ($1,520,000) –Refunding of all outstanding Series 2007 Certificates of Obligation; maturities 2018 – 2027 ($640,000) –Refunding of all outstanding Series 2007 GO Refunding Bonds; maturities 2018 – 2027 ($165,000) –Present Value Cost of Phase 2 is estimated at approx. $0 – Possible PV benefit –Interest Rate of Refunding Bonds assumed at 4.50% for 15 years –4 year extension of maturity for all refunded issues through 2031 PHASE 3 – December 2017 (subject to change) –Refunding of all outstanding Series 2009 Certificates of Obligation; maturities 2019 – 2029 ($600,000) –Present Value Cost of Phase 3 is estimated at approx. $0 – Possible PV benefit –Interest Rate of Refunding Bonds assumed at 4.75% for 15 years –3 year extension of maturity through 2032 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 4 of 6) 10 A B C D E F G H I J K L M Existing 97%I&S Tax Fiscal Net Less:Net Series 2013 Series 2016 Series 2017 NET NEW 100%Rate Variance Year Estimated Taxable General I&S General Refunding /Refunding /Refunding /General Projected Variance from Ending Growth Assessed Obligation Fund Obligation Restructuring Restructuring Restructuring Obligation I&S from Fiscal '12 9/30 Factor(1) Valuation(2) Debt Service (3) Drawdown(4)Debt Service Savings Savings Savings Debt Service Tax Rate(5)Fiscal '12 in Dollars 2012 362,969,678$ 466,923$ 136,750$ 330,173$ -$ -$ -$ 330,173$ 0.0910$ 2013 1.01%366,631,486 456,194 132,500 323,694 - - - 323,694 0.0910 0.0001 (6,479) 2014 0.00%366,631,486 465,936 59,206 406,730 80,764 - - 325,966 0.0917 0.0007 (4,207) 2015 0.00%366,631,486 477,186 - 477,186 153,106 - - 324,080 0.0911 0.0002 (6,093) 2016 0.00%366,631,486 480,965 - 480,965 158,213 - - 322,753 0.0908 (0.0002) (7,420) 2017 0.00%366,631,486 473,628 - 473,628 (24,563) 172,280 - 325,911 0.0916 0.0007 (4,262) 2018 0.00%366,631,486 508,546 - 508,546 (27,956) 167,213 45,781 323,509 0.0910 0.0000 (6,664) 2019 0.00%366,631,486 559,575 - 559,575 (6,069) 173,800 65,394 326,450 0.0918 0.0008 (3,723) 2020 0.00%366,631,486 546,175 - 546,175 (7,981) 169,438 60,306 324,413 0.0912 0.0003 (5,760) 2021 0.00%366,631,486 536,681 - 536,681 (14,038) 173,581 54,963 322,175 0.0906 (0.0004) (7,998) 2022 0.00%366,631,486 534,131 - 534,131 (15,313) 175,456 49,363 324,625 0.0913 0.0003 (5,548) 2023 0.00%366,631,486 513,300 - 513,300 (22,731) 170,500 43,763 321,769 0.0905 (0.0005) (8,404) 2024 0.00%366,631,486 515,425 - 515,425 (24,294) 178,213 37,906 323,600 0.0910 0.0000 (6,573) 2025 0.00%366,631,486 494,031 - 494,031 (31,075) 168,306 31,794 325,006 0.0914 0.0004 (5,167) 2026 0.00%366,631,486 488,181 - 488,181 (34,000) 175,656 25,425 321,100 0.0903 (0.0007) (9,073) 2027 0.00%366,631,486 241,775 - 241,775 - (235,225) 52,969 424,031 0.1192 0.0283 93,858 2028 0.00%366,631,486 81,525 - 81,525 - (386,475) 49,306 418,694 0.1177 0.0268 88,521 2029 0.00%366,631,486 71,775 - 71,775 - (386,288) 40,269 417,794 0.1175 0.0265 87,621 2030 0.00%366,631,486 - - - - (390,313) (28,894) 419,206 0.1179 0.0269 89,033 2031 0.00%366,631,486 - - - - (388,550) (28,181) 416,731 0.1172 0.0262 86,558 2032 0.00%366,631,486 - - - - - (276,413) 276,413 0.0777 (0.0132) (53,760) 7,911,953$ 328,456$ 7,583,497$ 184,064$ (62,408)$ 223,750$ 7,238,091$ (1) For illustration purposes only. (2) Fiscal Year 2012 value is as reported by the Collin Central Appraisal District. Fiscal Year 2013 Value is preliminary as reported by the Appraisal District. (3) Includes the Notes payable from I&S tax revenue and the budgeted paying agent fees, but excludes GO debt supported by the water and sewer fund. (4) Total Balance as reported by the City of Anna, Texas. Represents remaining balance of Series 2006 Certificates of Obligation and other receivables. Amount shown for 2012 represents current budget. (5) Tax Rate for 2012 is actual. Subsequent rates calculated at 97% tax collections. Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 5 of 6) 11 $- $0.0200 $0.0400 $0.0600 $0.0800 $0.1000 $0.1200 $0.1400 $0.1600 $0.1800 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 I & S T a x R a t e De b t S e r v i c e City of Anna, Texas I&S Tax Debt Management Program As of June 12, 2012 Existing Net GO D/S Net NEW Debt Servcie Existing Projected Tax Rate Projected Tax after Program Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Interest and Sinking Fund Debt Management Program (Part 6 of 6) 12 Sustainability and feasibility of Proposed Debt Management Program –If the tax base growth is 0% and the City does not issue additional tax supported debt, the 9 cent I&S tax rate can be maintained until Fiscal Year 2026. –A reduction of the current I&S tax rate will compromise the program. –This is a stress scenario of 0% growth, therefore the 9 cent tax rate would increase to 11.80 cents in Fiscal Year 2027. An average annual growth of 1.85% is necessary to avoid such increase in taxes assuming no additional debt is incurred between now and Fiscal Year 2026. Additional Debt Capacity - Driven by 3 factors: –City’s willingness to pay –Growth in the tax base –City’s willingness to increase the I&S property tax rate Credit Rating considerations –The City is currently rated “A” by Fitch Ratings, the outlook is stable. –“The rating reflects the City’s consistently strong financial performance and prudent management of spending pressures associated with a rapidly growing population and revenue enhancements to offset declines in taxable value.” –“Overall levels are quite high as is the fixed cost burden on the budget associated with direct debt levels, making the maintenance of high reserve levels even more important for financial flexibility.” –The economy remains relatively limited, despite the robust population growth over the last decade. –KEY RATING DRIVERS: “Maintenance of substantial financial reserves and continued stabilization of the City’s tax base.” Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Outstanding Water & Sewer System Debt as of June 12, 2012 13 lklklklk Series Name Amount Outstanding Interest Rates Call Date Final Maturity Repayment Pledge 1976 WW&SS Rev Bonds $15,000 5.00% Currently Callable 9/1/2014 W&S Revenues 1976 GO Water Bonds $20,000 5.00% Currently Callable 1/1/2016 General Obligation 2005 Contract Rev Ref Bonds $2,180,000 4.42% Non Callable 5/1/2028 GTUA Contract 2005 Contract Rev Bonds $581,250 4.39 – 5.74% 4/1/2015 10/1/2028 GTUA Contract 2006 Contract Rev Bonds $1,640,000 3.20 – 3.75% 12/1/2016 6/1/2026 GTUA Contract 2006 Contract Rev Bonds $2,168,750 5.68 – 5.83% N/A 2/1/2040 GTUA Contract 2007 Contract Rev Bonds $1,995,000 3.20 – 4.10% 12/1/2017 6/1/2028 GTUA Contract 2007-A Contract Rev Bonds $650,000 4.27 – 5.57% 5/1/2017 5/1/2027 GTUA Contract 2007-B Contract Rev Bonds $960,000 4.27 – 5.57% 11/1/2017 5/1/2027 GTUA Contract 2007-C Contract Rev Bonds $3,260,000 4.27 – 5.62% 11/1/2017 5/1/2032 GTUA Contract 2007 Contract Rev Bonds $1,191,250 4.12 – 5.62% 4/1/2017 10/1/2036 GTUA Contract 2008 Contract Rev Bonds $460,000 5.14% Any date @ 101% 5/1/2027 GTUA Contract 2009A Finance Contract (Backhoe) $37,571 5.00% N/A 2/2/2014 General Obligation 2009 Comb Tax & Rev Ref Bonds $4,090,000 4.28% through 2/15/2018 15% thereafter 2/15/2018 2/15/2026 General Obligation TOTAL $19,248,821 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 1 of 7) 14 The City’s water and sewer system debt obligations are mostly obligations to the Greater Texoma Utility Authority (“GTUA”) (78% of the total debt). The GTUA issues debt at higher interest rates and requires a debt service reserve fund. The City has previously refunded GTUA obligations (Series 2009 Bonds) by issuing City general obligation bonds, thus allowing for lower borrowing costs and avoidance of debt service reserves. The debt burden on the water and sewer fund is above average in comparison to similar cities. This proposed Debt Management program is expected to be implemented in several phases, and also includes the capital improvement program available at this time. The model conservatively assumes refunding of City and GTUA obligations to achieve the debt management program goal of a gradual escalation/stabilization of debt payments. Extension of maturity is required under this stress scenario if the City wants to avoid sudden rate increases to pay debt. Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 2 of 7) 15 PHASE 1 – Year 2013 –Funding of new Water and Wastewater Projects through state or federal programs offered by the Texas Water Development Board and the United States Department of Agriculture –Approx. $2.25 million of Water Projects assumed to be funded through the Texas water Development Board –Approx. $800k Wastewater Projects financed with debt through the USDA. Remainder of the project ($500k) to be funded with cash reserves PHASE 2 – Year 2014 –Escrowing of maturities 2015 – 2018 ($1,835,000) of the Series 2009 Tax & Revenue Refunding Bonds –Taxable transaction for maximum structuring and term flexibility –Present Value Cost of Phase 2 is estimated at approx. $190,000 –Interest Rate of Refunding Bonds assumed at 5.50% for 12 years –No extension of Bonds maturity, but rearrangement of principal payments toward the latter years 2019 -2026. PHASE 3A – Year 2017 –Refunding of all outstanding GTUA Anna/Melissa Project Bonds ($1,150,000 Series 2006 and $1,500,000 Series 2007 Anna/Melissa GTUA Contract Revenue Bonds) –Collapse of reserves currently held by GTUA for such bonds (approx. $300,000) –Present Value Cost of Phase 3A is estimated at approx. $215,000 –Interest Rate of Refunding Bonds assumed at 4.825% for 14 years –3-year extension of maturity through 2031 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 3 of 7) 16 PHASE 3B – Year 2017 –Refunding of all outstanding GTUA Anna Project Bonds except the Series 2005 which is Non Callable ($485,000 Series 2007-A; $715,000 Series 2007-B; $3,010,000 Series 2007-C and $345,000 Series 2008 Anna GTUA Contract Revenue Bonds) –Assumes the reserves associated with the Anna Project cannot be released since the 2005 series would remain outstanding –Present Value Cost of Phase 3B is estimated at approx. $50,000 –Interest Rate of Refunding Bonds assumed at 5% for 15 years –5-year extension of maturity through 2032 for all the Series 2007A,B&C bonds and no extension of maturity for the Series 2008 bonds PHASE 3C – Year 2017 –Refunding of all outstanding Series 2009 bonds ($2,205,000) before the interest rate reset on February 15, 2018 –Present Value Benefit of Phase 3C is estimated at approx. $670,000 –Interest Rate of Refunding Bonds assumed at 5% for 14 years –5-year extension of maturity through 2031 Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 4 of 7) 17 PHASE 4 – Year 2018 –Funding of new Water and Wastewater Projects through state or federal programs offered by the Texas Water Development Board –Tranche 1 - Approx. $2.8 million of Projects assumed to be funded through the Texas water Development Board –Tranche 2 - Approx. $1 million of Projects assumed to be funded through the Texas water Development Board –Assumes 4.125% interest rate Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 5 of 7) 18 A B C D E F G H I J K L M N Plus:Less:Less:Plus: Fiscal Projected Year Existing Series 2013 Debt Service Series 2014 Debt Service Series 2017A Series 2017B Series 2017C Debt Service Series 2018 NET NEW Ending W&S Fund TWDB C/Os USDA after Refunding after Refunding Refunding Refunding after TWDB C/Os W&S Fund 30-Sep Debt Service $2.25mm Proj.$800k Proj.Series 2013 Savings Series 2014 Savings Savings Savings Series 2017 $2.8mm Proj.$1mm Proj.Debt Service 2012 1,240,250$ -$ -$ 1,240,250$ -$ 1,240,250$ -$ -$ -$ 1,240,250$ -$ -$ 1,240,250$ 2013 1,290,235 - - 1,290,235 - 1,290,235 - - - 1,290,235 - - 1,290,235 2014 1,392,537 94,250 45,667 1,532,453 - 1,532,453 - - - 1,532,453 - - 1,532,453 2015 1,794,942 117,394 45,738 1,958,074 326,785 1,631,289 - - - 1,631,289 - - 1,631,289 2016 1,806,883 115,931 45,138 1,967,951 289,981 1,677,971 - - - 1,677,971 - - 1,677,971 2017 1,798,465 114,469 45,538 1,958,471 227,993 1,730,478 - - - 1,730,478 - - 1,730,478 2018 1,916,313 113,006 44,900 2,074,219 261,386 1,812,833 (607) (1,568) 12,130 1,802,877 - - 1,802,877 2019 2,065,174 111,544 45,263 2,221,980 (240,575) 2,462,555 162,864 53,211 495,750 1,750,730 148,867 53,167 1,952,763 2020 1,921,550 110,081 45,588 2,077,219 (236,638) 2,313,856 166,939 19,467 346,625 1,780,825 169,366 60,838 2,011,029 2021 1,863,898 108,619 44,875 2,017,391 (237,288) 2,254,679 170,591 14,372 285,250 1,784,466 167,097 60,013 2,011,575 2022 1,832,567 107,156 45,163 1,984,886 (237,388) 2,222,273 168,691 14,119 254,500 1,784,963 164,828 59,188 2,008,979 2023 1,808,251 105,694 45,413 1,959,357 (236,938) 2,196,294 171,536 23,432 213,000 1,788,326 162,559 58,363 2,009,248 2024 1,776,770 104,231 45,625 1,926,626 (240,800) 2,167,426 173,939 12,296 190,750 1,790,442 160,291 57,538 2,008,270 2025 1,755,525 102,769 45,800 1,904,094 (238,975) 2,143,069 175,826 11,563 167,000 1,788,680 158,022 56,713 2,003,414 2026 1,731,068 101,306 44,938 1,877,311 (241,463) 2,118,774 187,189 (4,442) 141,750 1,794,277 155,753 55,888 2,005,918 2027 1,106,695 272,000 45,075 1,423,770 - 1,423,770 (255,107) 9,380 (125,250) 1,794,746 153,484 55,063 2,003,293 2028 904,091 274,688 45,175 1,223,954 - 1,223,954 (254,579) 2,401 (323,125) 1,799,256 151,216 54,238 2,004,710 2029 661,317 272,131 45,238 978,686 - 978,686 (428,491) 117,882 (515,625) 1,804,920 148,947 53,413 2,007,280 2030 644,999 274,331 45,263 964,593 - 964,593 (429,674) 105,551 (517,250) 1,805,966 146,678 52,588 2,005,231 2031 645,214 271,288 45,250 961,751 - 961,751 (425,012) 98,252 (517,625) 1,806,136 144,409 51,763 2,002,308 2032 645,214 273,000 45,200 963,414 - 963,414 - (718,390) - 1,681,804 142,141 50,938 1,874,882 2033 326,159 274,388 45,113 645,659 - 645,659 - - - 645,659 389,613 138,256 1,173,528 2034 327,040 - 44,988 372,028 - 372,028 - - - 372,028 391,516 138,616 902,159 2035 325,884 - 45,825 371,709 - 371,709 - - - 371,709 392,800 138,769 903,278 2036 326,514 - 45,588 372,102 - 372,102 - - - 372,102 393,466 138,716 904,283 2037 327,500 - 45,313 372,812 - 372,812 - - - 372,812 393,513 138,456 904,781 2038 219,397 - 45,000 264,397 - 264,397 - - - 264,397 392,941 142,888 800,225 2039 221,112 - 45,650 266,762 - 266,762 - - - 266,762 - - 266,762 2040 219,597 - 45,225 264,822 - 264,822 - - - 264,822 - - 264,822 2041 - - 45,763 45,763 - 45,763 - - - 45,763 - - 45,763 2042 - - 45,225 45,225 - 45,225 - - - 45,225 - - 45,225 2043 - - 45,650 45,650 - 45,650 - - - 45,650 - - 45,650 32,895,158$ 3,318,275$ 1,360,179$ 37,573,612$ (803,919)$ 38,377,531$ (415,895)$ (242,474)$ 107,880$ 38,928,019$ 4,527,504$ 1,615,404$ 45,070,927$ Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 6 of 7) 19 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 City of Anna, Texas Water & Sewer System Fund Debt Analysis As of June 12, 2012 Existing W&S Fund D/S Projected W&S Fund D/S Member FINRA & SIPC © 2012 First Southwest Company C I T Y O F A N N A , T E X A S City of Anna, Texas Water and Sewer Debt Management Program (Part 7 of 7) 20 Sustainability and feasibility of Proposed Water & Sewer Fund Debt Management Program –Assumes additional capital needs ($7.35 million) are met using conservative assumptions of financed projects in 2013 and 2018. –The debt service will escalate to $2 million per year in Fiscal 2020 gradually versus a sudden increase of $500k in 2015. –This is a stress scenario therefore assumed rates and terms of refundings are conservative. Additional Debt Capacity - Driven by 3 factors: –City’s willingness to pay –Growth in water sales and water customers –Water/Sewer rates the City is willing to charge Credit Rating considerations –The City’s GO rating applies to this Program. –The City would not issue publicly traded Water & Sewer Revenue Bonds under this Program. 124 City of Anna FY 2013 Capital Improvements Plan *All projects are subject to available funding resources in any given Fiscal Year; therefore, this document does not represen t a funding guarantee for any given project 125 A relatively permanent enclosed construction over a plot of land, having a roof and usually windows and often more than one level, used for any of a wide variety of activities BUILDINGS 126 Budget Year: 2013 Project Name: City Hall Addition Department: Administration Project Description: Addition to City Hall to allow for all Finance, Planning and Development, and Administrative staff to work in a centralized location. This will create a better image of the city and allow for needed upgrades and consolida- tion of IT equipment. Regulatory or Legal Mandates: ADA requirements, competitive bids Operational Necessity/Justification: Current Planning and Development building is outdat- ed, dangerous, and needs to be replaced. City Sources of Funding: Non-City Sources of Funding: Bonds Total Project Cost: $500,000 Project Year(s): 2014-2015 FY 13 Budget Commitment: $500,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $450,000 $450,000 Const. Mgmt. Furn./Fixt./Equip. $10,000 $10,000 Professional Fees $40,000 $40,000 Contingencies Total $500,000 $500,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 127 Budget Year: 2014 Project Name: New Central Fire Station Department: Fire Project Description: The current fire station was built in 1967. Since this time, it has had several additions and renovations add- ed. It has served the community well. However, it is cur- rently not efficient or effective in serving the communi- ty beyond 2014. A new facility that incorporates drive through apparatus bays, offices, storage and administra- tive areas as well as training and crew quarters and amenities is greatly needed. This facility would be de- signed to meet the needs of a growing city for the next thirty years or more and would provide a much greater level of enhanced customer service then the current fa- cility. Additionally, it is expected that the design of this facility would serve as an anchor to future growth along the highway 5 corridor. Regulatory or Legal Mandates: None Operational Necessity/Justification: The current fire station is no longer able to support the effective and efficient operations of a growing Fire De- partment. City Sources of Funding: Non-City Sources of Funding: Bonds; Limited grant opportunities Total Project Cost: $2,700,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $2,700,000 $2,700,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 128 Budget Year: Future Project Name: Fire Station # 2 Department: Fire Project Description: As the city of Anna grows and population densities, sub –divisions and commercial development increases so does the need to provide timely service to those por- tions of our community that exceed benchmark re- sponse times. A second station will facilitate efficient and effective response to areas that may be under- served. Regulatory or Legal Mandates: None Operational Necessity/Justification: To maintain effective response capabilities in new growth areas of the city. City Sources of Funding: Non-City Sources of Funding: Bonds Total Project Cost: $1,500,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition $450,000 $450,000 Design Costs $95,000 $95,000 Construction Costs $955,000 $955,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $1,500,000 $1,500,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 129 Budget Year: Future Project Name: New City Hall Department: Administration Project Description: Consistent with the Downtown Revitalization Plan the City plans to build a new city hall. While conceptual at this point, the new space will provide a centralized loca- tion to interact with all city services. Regulatory or Legal Mandates: ADA requirements, competitive bids Operational Necessity/Justification: With current and future growth projections for the city and the region, we will outgrow our facilities. We will need new and updated facilities to accommodate the corresponding growth in staff City Sources of Funding: Non-City Sources of Funding: Bonds Total Project Cost: $10,000,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $10,000,000 $10,000,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 130 Budget Year: Future Project Name: Natural Springs Park Community Center Department: Parks Project Description: Using the property adjacent to Natural Springs Park the city would rehab the existing structure to create a 5,400 square foot community center. The plan includes office space, commercial kitchen, reading room, conference room, restrooms, and a 160 seat banquet hall. The ban- quet hall would serve as a multi-purpose space allowing for multiple types of activities. Regulatory or Legal Mandates: None Operational Necessity/Justification: Consistent with our master parks plan and the city’s goal to attract more residents, the community center is a vital component to accomplish our goals. City Sources of Funding: Non-City Sources of Funding: Bonds Total Project Cost: $1,500,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $1,350,000 $1,350,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies $150,000 $150,000 Total $1,500,000 $1,500,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 131 A transparent, odorless, tasteless liquid, a compound of hydrogen and oxygen; Liquid and solid waste carried off in sewers or drains WATER AND SEWER 132 Budget Year: 2013 Project Name: Highway 5 Storage Tank Repairs Department: Water Project Description: Rehab the 300,000 gallon tank on highway 5. Sandblast tank exterior, new paint, and bring the tank into compli- ance with current TCEQ code Regulatory or Legal Mandates: Ensure tank is compliant with TCEQ requirements Operational Necessity/Justification: Repairs need to made to keep this tank operational as it is a vital component to the city’s current and future wa- ter distribution plans. City Sources of Funding: Excess GTUA Bond Funds held from previous projects Non-City Sources of Funding: Total Project Cost: $100,000 Project Year(s): 2013 FY 13 Budget Commitment: $100,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $100,000 $100,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $100,000 $100,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 133 Budget Year: 2013 Project Name: Water System Improve- ments - Blended System Department: Water Project Description: Due to current system demands and expected growth over the next 10-years, the city has an immediate need to develop additional treated water sources. Through our existing contract with the Greater Texoma Utility Authority (GTUA), we can immediately receive as much as 0.1625 MGD of treated surface water. However, to mitigate problems with mixing ground water source with a treated surface water source within the distribu- tion system, we propose to receive GTUA treated sur- face water at each of our 4 well sites, and blend the sur- face and ground water in existing and proposed ground storage reservoirs before delivery to the water distribu- tion system. Regulatory or Legal Mandates: The city is approaching and may exceed the TCEQ man- dated maximum daily capacity our water system. Up- grades are necessary to keep pace with growth Operational Necessity/Justification: The city is prepared to accommodate future growth with our south take point and other potential GTUA take points. With out taking water from these other supplies we cannot continue to adequately serve out City Sources of Funding: Water Impact Fee Revenue Non-City Sources of Funding: Bonds; Texas Water Development Board Total Project Cost: $2,250,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition $58,240 $58,240 Design Costs Construction Costs $1,377,278 $1,377,278 Const. Mgmt. Furn./Fixt./Equip. $200,000 $200,000 Professional Fees $367,779 $367,779 Contingencies $246,403 $246,403 Total $2,250,000 $2,250,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 134 Budget Year: 2013 Project Name: Slayter Creek WWTP Reg- ulatory Upgrades Department: Sewer Project Description: Permit parameters upgrading equipment treat better, improve quality of effluent Regulatory or Legal Mandates: Texas Commission on Environmental Quality (TCEQ) requires certain standards be maintained in order to operate a WWTP. This project will allow to city to make the required upgrades to its WWTP Operational Necessity/Justification: In order to keep pace with growth and avoid costly and unnecessary TCEQ violations, the plant needs to be up- dated to meet TCEQ requirements City Sources of Funding: Sewer Impact Fee Revenue Non-City Sources of Funding: Bonds; USDA Loans Total Project Cost: $800,000 Project Year(s): 2013 FY 13 Budget Commitment: $800,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $500,000 $500,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees $250,000 $250,000 Contingencies $50,000 $50,000 Total $800,000 $800,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 135 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2013 Project Name: Slayter Creek Sewer Relief Line Department: Sewer Project Description: Construct a relief line to enable our sewer flows to be directly diverted to the existing North Texas Municipal Water District’s existing sewer lines at the Throckmor- ton Creek sewer meter. This allow the city to maintain compliance with TCEQ rules and regulations during pe- riods of heavy waste water flow. Regulatory or Legal Mandates: In order to avoid costly TCEQ violations the city can build a relief line that will connect to the North Texas Municipal Water District’s treatment facility Operational Necessity/Justification: The relief line will allow the city to continue to use the WWTP without undergoing an extremely expensive expansion to plant and more efficiently utilize regional resources. City Sources of Funding: Sewer Impact Fee Revenue Non-City Sources of Funding: Bonds; USDA Loans Total Project Cost: $950,000 Project Year(s): 2013 FY 13 Budget Commitment: $950,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition $126,000 $126,000 Design Costs Construction Costs $600,000 $600,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees $136,000 $136,000 Contingencies $88,000 $88,000 Total $950,000 $950,000 Proposed Budget Schedule 136 Budget Year: 2015/Future Project Name: Sewer Line Projects Department: Sewer Project Description: Extend Clemens Creek Sewer Line as a Future Project as development occurs in the project area. Regulatory or Legal Mandates: None Operational Necessity/Justification: Projects will be dictated by population growth overall in the city as well as by population growth in certain areas. City Sources of Funding: Sewer Impact Fee Revenue Non-City Sources of Funding: Bonds Total Project Cost: $700,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $700,000 $700,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $700,000 $700,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 137 Budget Year: Future/2018 Project Name: Elevated Storage Tank Department: Water Project Description: The city’s growth patterns suggest that we will need an additional .75 million gallon elevated storage tank. It is anticipated this project will need to be done in 2018. Regulatory or Legal Mandates: In order to meet TCEQ mandated storage capacity lev- els , the city will be required to build another elevated storage tank Operational Necessity/Justification: Our current system is reaching its maximum capacity. The blended system project will add some capacity; however, an elevated storage tank will be required to keep pace with growth City Sources of Funding: Water Impact Fee Revenue Non-City Sources of Funding: Bonds; Texas Water Development Board Total Project Cost: $2,800,000 Project Year(s): Future/2018 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $2,800,000 $2,800,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 138 A public thoroughfare, usually paved, in a village, town, or city STREETS 139 Budget Year: 2013-2017 Project Name: Annual Street Repair Pro- gram Department: Streets Project Description: Each year the city will reserve $100,000 of general fund revenues to repair a street. The particular street project each year will determined based upon the level of wear found upon city streets. Regulatory or Legal Mandates: Competitive bids, safety of citizens Operational Necessity/Justification: City streets have an anticipated life expectancy. As the city grows and the streets experience wear and tear roads will need to be repaired/replaced City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $500,000 ($100,000 annually) Project Year(s): Annually FY 13-17 FY 13 Budget Commitment: $100,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 140 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2013 Project Name: Fergusson Parkway By- pass Department: Streets Project Description: Create a bypass lane to avoid school related traffic at Ratton Elementary. Regulatory or Legal Mandates: Operational Necessity/Justification: Relieve traffic issues due to school drop off and pick up times. This project can be incorporated into the Fer- gusson Parkway reconstruction project. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $50,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $50,000 $50,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $50,000 $50,000 Proposed Budget Schedule 141 City of Anna—Capital Projects Plan Detail Sheet Budget Year: Future Project Name: Ferguson Parkway—FM 455 to Foster Crossing Department: Streets Project Description: Obtain right of way and engineering costs to run Fergu- son Parkway from FM 455 south to Ferguson Parkway. Ferguson Parkway currently terminates at CR 367. Esti- mated costs of $594,000 Reconstruct and improve the road from F.M. 455 to CR 367. The costs to reconstruct the road have not yet been determined. Estimated Costs of $1,000,000 Regulatory or Legal Mandates: Operational Necessity/Justification: In preparation for and response to growth, this is a fu- ture project the city anticipates to meet our transporta- tion needs. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Bonds Total Project Cost: $1,594,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition $434,000 $434,000 Design Costs Construction Costs $1,000,000 $1,000,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees $160,000 $160,000 Contingencies Total $1,594,000 $1,594,000 Proposed Budget Schedule 142 Budget Year: Future Project Name: FM 455—U.S. 75 to East Fork Creek Department: Streets Project Description: Engineering costs to expand FM 455 west of highway 75 to East Fork Creek. Regulatory or Legal Mandates: Operational Necessity/Justification: In preparation for and response to growth, this is a fu- ture project the city anticipates to meet our transporta- tion needs. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Bonds Total Project Cost: $520,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $520,000 $520,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 143 City of Anna—Capital Projects Plan Detail Sheet Budget Year: Future Project Name: Rosamond Parkway— Hwy 5 to U.S. 75 Department: Streets Project Description: Engineering costs to run Rosamond Parkway from Highway 5 to U.S. 75. Rosamond Parkway currently ter- minates at the Anna High School. Regulatory or Legal Mandates: Operational Necessity/Justification: In preparation for and response to growth, this is a fu- ture project the city anticipates to meet our transporta- tion needs. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Bonds Total Project Cost: $520,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $520,000 $520,000 Proposed Budget Schedule 144 City of Anna—Capital Projects Plan Detail Sheet Budget Year: Future Project Name: Hackberry Lane—Hwy 5 to Slayter Creek Department: Streets Project Description: Reconstruct Hackberry Lane from Highway 5 to Slayter Creek. Hackberry Lane transitions from a four lane di- vided road to a narrow two lane road. Project will im- prove the transition, install curb and gutter, and possi- bly create a turn lane. Regulatory or Legal Mandates: Safety of citizens Operational Necessity/Justification: With the growth in the West Crossing development, Hackberry lane is experiencing increased traffic. This particular section needs to be improved for safety rea- sons as well as road capacity. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Bonds Total Project Cost: $423,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $423,000 $423,000 Proposed Budget Schedule 145 City of Anna—Capital Projects Plan Detail Sheet Budget Year: Future Project Name: Mantua Rd./CR 371 Department: Streets Project Description: Reconstruct Mantua Rd./CR 371 from Highway 5 to U.S. 75 Regulatory or Legal Mandates: Operational Necessity/Justification: In preparation for and response to growth, this is a fu- ture project the city anticipates to meet our transporta- tion needs. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $6,6000,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $6,6000,000 $6,6000,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $6,6000,000 $6,6000,000 Proposed Budget Schedule 146 An area of land, usually in a largely natural state, for the enjoyment of the public, having facilities for rest and recreation, often owned, set apart, and managed by a city, state, or nation PARKS 147 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2014 Project Name: Slayter Creek Park Phase II Department: Parks/Planning & Development Project Description: Complete Slayter Creek Park with the following ameni- ties: Splash Pad Ball Fields Soccer Fields Frisbee Golf Tennis Courts Parking Athletic Lighting Trail Extensions Score Board et. al. Regulatory or Legal Mandates: The park has an outstanding $500,000 grant commit- ment by the state Operational Necessity/Justification: While construction is occurring we can maximize our investment and make other improvements. Further- more, the park fits with our master parks plan, creates more open space, and fits with the demographic profile City Sources of Funding: Non-City Sources of Funding: Texas Parks and Wildlife grant ($500,000 project com- mitment); CDC Bond (sales tax pledge) Total Project Cost: $2,100,000 Project Year(s): 2013-2014 FY 13 Budget Commitment: $2,100,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $1,877,700 $1,877,700 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies $222,300 $222,300 Total $2,100,000 $2,100,000 Proposed Budget Schedule 148 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2013-2016 Project Name: Trail System Extensions Department: Parks Project Description: The City has received matching grants for trail construc- tion and land acquisition for the development of Anna’s core north/south trail system which will be the back- bone for our walk way system throughout Anna. Regulatory or Legal Mandates: Operational Necessity/Justification: In order to keep Anna sustainable a fully linked inte- grated trail system needs to be implemented. These trail extensions will allow our parks to be integrated and serve as the backbone of our trail system. City Sources of Funding: Existing land resources as match for grants Non-City Sources of Funding: Collin County Parks Grant Total Project Cost: $1,201,560 Project Year(s): 2013-2016 FY 13 Budget Commitment: $301,560 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $301,560 $300,000 $300,000 $300,000 $1,201,560 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $301,560 $300,000 $300,000 $300,000 $1,201,560 Proposed Budget Schedule 149 City of Anna—Capital Projects Plan Detail Sheet Budget Year: Future Project Name: Geer Park Phase I Department: Parks Project Description: Geer park has been designed as a park geared towards middle school and younger. Fields for soccer, baseball, and other long muscle sports and planned as well as lights, parking, and other amenities. Regulatory or Legal Mandates: Operational Necessity/Justification: Geer park is part of the City’s master park plan. In order to provide the quality of life residents expect this park is a priority for expansion. City Sources of Funding: Sewer Impact Fee Revenue Non-City Sources of Funding: Total Project Cost: $1,500,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs $1,500,000 $1,500,000 Const. Mgmt. Furn./Fixt./Equip. Professional Fees Contingencies Total $1,500,000 $1,500,000 Proposed Budget Schedule 150 Any means in or by which someone travels or something is carried or conveyed VEHICLES 151 Budget Year: 2013-2017 Project Name: Police Vehicle Replace- ment Program Department: Police Project Description: Vehicle replacement schedule based on mileage and years of service. Police Equipment up-fits included for the appropriate patrol vehicles. FY 13: Patrol and admin vehicle FY 14: Two patrol vehicles FY 15: One patrol vehicle FY 16: One patrol vehicle FY 17: One patrol vehicle Regulatory or Legal Mandates: If over $50k, bid proposals will be obtained. If not, three (3) quotes will be obtained Operational Necessity/Justification: All vehicles have a life expectancy. Patrol vehicles have a rough life and their lifespan is reduced accordingly. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $227,050 Project Year(s): Annually FY 14-Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $65,550 $64,000 $32,500 $32,500 $32,500 $227,050 Professional Fees Contingencies Total $65,550 $64,000 $32,500 $32,500 $32,500 $227,050 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 152 Budget Year: 2013 Project Name: Replace Command Vehi-Department: Fire Project Description: The current Command Vehicle (C901) is a 2003 Chevy Suburban approaching 161,000 miles. This vehicle was donated to the AFD. It is beginning to experience maintenance issues (transmission slip, ,etc.) and it is reasonable to expect it will have increasing operational costs into the future. Additionally, the gas efficiency of the vehicle is not at what a similar vehicle would per- form at. Request is for a replacement vehicle such as a Chevy Tahoe Police Package model. Regulatory or Legal Mandates: None Operational Necessity/Justification: increased fuel efficiency and operating costs of a new vehicle compared to a vehicle that is in excess of nine years old. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $36,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $36,000 $36,000 Professional Fees Contingencies Total $36,000 $36,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 153 Budget Year: Future Project Name: Replace R901 Department: Fire Project Description: Replacement unit for Rescue 901 which is currently 16 years old. This vehicle will continue to see increased operating expenses as well as frequent breakdowns due to age and extended service life. A replacement unit would be smaller and more efficient while providing an equal or greater level of service to the community. Regulatory or Legal Mandates: None Operational Necessity/Justification: Required to provide air, light and heavy rescue ser- vices. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Bonds Total Project Cost: $450,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $450,000 $450,000 Professional Fees Contingencies Total $450,000 $450,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 154 Budget Year: Future Project Name: Quint Fire Engine Department: Fire Project Description: The design and purchase of a Quint fire apparatus to better be able to serve the City of Anna with a multi role piece of fire apparatus. This unit would have an aerial ladder of t least 75’, a pump of a capacity of at least 1500 gpm and a water tank of at least 300 gallon capac- ity in addition to carrying a compliment of ground lad- ders, hose , tolls and various other items of extrication and EMS equipment. Regulatory or Legal Mandates: None Operational Necessity/Justification: Will allow for an aerial device to better provide service to the community as well as receive ISO credit. City Sources of Funding: Non-City Sources of Funding: Bonds Total Project Cost: $1,000,000 Project Year(s): Future FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $1,000,000 $1,000,000 Professional Fees Contingencies Total $1,000,000 $1,000,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 155 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2014 & 2015 Project Name: PW Vehicle Replacements Department: Public Works Project Description: Vehicle replacement based upon mileage and years of service. Public Works plans to purchase a single cab and crew cab work trucks in 2014 and 2015 respective- ly. Regulatory or Legal Mandates: Operational Necessity/Justification: Existing fleet of work trucks is aging with high repair bills. City Sources of Funding: Utility Fund Revenues Non-City Sources of Funding: Total Project Cost: $55,000 Project Year(s): 2014 & 2015 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $25,000 $30,000 $55,000 Professional Fees Contingencies Total $25,000 $30,000 $55,000 Proposed Budget Schedule 156 An apparatus consisting of interrelated parts with separate functions, used in the performance of some kind of work; anything kept, furnished, or provided for a specific purpose MACHINERY AND EQUIPMENT 157 Budget Year: 2013 Project Name: Customer Kiosk Department: Utility Billing/Court Project Description: Use the current drive through window at the UB/Court offices to install an automated payment collection kiosk. This will allow customers to pay their bill at any time and will interface with our UB and Court programs. Regulatory or Legal Mandates: None Operational Necessity/Justification: Increase in customer service by providing an additional avenue for payment of court fines and utility bills. For the less than the price of one FTE, the city can add the capacity of one additional staff to process payments 24/7 City Sources of Funding: Utility Fund Revenues/Unrestricted net assets Non-City Sources of Funding: Total Project Cost: $40,000 Project Year(s): 2013 FY 13 Budget Commitment: $40,000 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design/IT Costs $3,000 $3,000 Construction Costs $3,500 $3,500 Const. Mgmt. Furn./Fixt./Equip. $32,430 $32,430 Professional Fees Contingencies $1,070 $1,070 Total $40,000 $40,000 Proposed Budget Schedule City of Anna—Capital Projects Plan Detail Sheet 158 City of Anna—Capital Projects Plan Detail Sheet FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $50,000 $50,000 Professional Fees Contingencies Total $50,000 $50,000 Proposed Budget Schedule Budget Year: 2013 Project Name: Excavator Department: Public Works Project Description: Mini Excavator Regulatory or Legal Mandates: None Operational Necessity/Justification: This is a track vehicle with 180 degree swing capability that would allow access to ponds, mud or rough terrain. This equipment would make repairs in neighborhoods with less damage to private property, streets & side- City Sources of Funding: Utility fund/CDC/proceeds from sale of Gradeall Non-City Sources of Funding: Total Project Cost: $50,000 Project Year(s): 2013 FY 13 Budget Commitment: $50,000 159 City of Anna—Capital Projects Plan Detail Sheet FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $12,000 $12,000 Professional Fees Contingencies Total $12,000 $12,000 Proposed Budget Schedule Budget Year: 2013 Project Name: New Parks Mower Department: Parks Project Description: Zero turn mower Regulatory or Legal Mandates: Operational Necessity/Justification: Replace 2005 model mower City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Cost: $12,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 160 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2014 Project Name: Backhoe Trailer Department: Public Works Project Description: Acquire a trailer to transport the Public Works’ backhoe Regulatory or Legal Mandates: Operational Necessity/Justification: The City currently does not have a means to transport the backhoe other than simply driving the machine. This is expensive and dangerous. The trailer would provide a more efficient means of transport around the city. City Sources of Funding: General and Utility Fund Revenues Non-City Sources of Funding: Total Project Cost: $15,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $15,000 $15,000 Professional Fees Contingencies Total $15,000 $15,000 Proposed Budget Schedule 161 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2015 Project Name: Portable Generator Department: Public Works Project Description: Purchase a portable generator with enough capacity to supply power to our critical water and wastewater op- erations in the event of mass power outage or other cat- astrophic event. Regulatory or Legal Mandates: Operational Necessity/Justification: Serve as an emergency power supply to provide for continuity of utility service in emergency situations. City Sources of Funding: Utility Fund Revenues Non-City Sources of Funding: Total Project Cost: $85,000 Project Year(s): 2015 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $85,000 $85,000 Professional Fees Contingencies Total $85,000 $85,000 Proposed Budget Schedule 162 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2013 Project Name: Thermal Imaging Cam- era/TIC Department: Fire Project Description: A hand held TIC allows for the ability of the user to “see” through smoke and darkness to be able to identify areas of high heat ,or differences in temperature rela- tive to the ambient atmosphere. Theses cameras facili- tate the early location of both victims that may be trapped in a building as well as the location of a fire. Additionally, they provide for a higher level of firefight- er safety . The use and deployment of thermal imaging cameras reflects a “best practice” in the fire service and should be carried on each piece of apparatus that might respond to structure fires. Regulatory or Legal Mandates: None Operational Necessity/Justification: Enhance Firefighter safety and help in the reduction of injury to members of community and reduce property damage. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $10,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $10,000 $10,000 Professional Fees Contingencies Total $10,000 $10,000 Proposed Budget Schedule 163 Budget Year: 2013,2014 Project Name: Mobile Data Computer for Fire Apparatus Department: Fire Project Description: The addition of fully functioning Mobile Data Comput- ers in E901 and E902 will allow for a greater availabil- ity of initial dispatch information as well as facilitate the ability to complete run reports . Firefighter safety is en- hanced through the ability to access pre plan infor- mation and data as well as a variety of information on hazardous materials and other hazards and risks. Regulatory or Legal Mandates: None Operational Necessity/Justification: To reflect industry best practices , increase firefighter safety and operational effectiveness as well as increase effective operations and reports management. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $7,500 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 City of Anna—Capital Projects Plan Detail Sheet FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $7,500.00 $7,500.00 Professional Fees Contingencies Total $7,500.00 $7,500.00 Proposed Budget Schedule 164 Budget Year: 2014 Project Name: Pump Overhaul E902 Department: Fire Project Description: E902 (Mfg. 2002) will require significant maintenance on the pump to maintain it in a first response capability. Regulatory or Legal Mandates: None Operational Necessity/Justification: required to maintain E902 in a first response capacity due to age and previous use. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $35,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 City of Anna—Capital Projects Plan Detail Sheet FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $35,000 $35,000 Professional Fees Contingencies Total $35,000 $35,000 Proposed Budget Schedule 165 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2014 Project Name: Multi Gas Detector Department: Fire Project Description: A Multi Gas Detector will allow for the safe and effective detection and monitoring of incidents involving the sus- pected or actual release or leaks of natural gas and oth- er combustible and or toxic gases. Regulatory or Legal Mandates: None Operational Necessity/Justification: Needed to effectively detect or monitor leaks or releas- es of various combustible and or toxic gases. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $6,500 Project Year(s): 2015 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $6,500 $6,500 Professional Fees Contingencies Total $6,500 $6,500 Proposed Budget Schedule 166 City of Anna—Capital Projects Plan Detail Sheet Budget Year: 2014 Project Name: Scott Air-Pacs Department: Fire Project Description: The purchase of ten new Scott Air-Pacs will allow for members involved in IDLH atmospheres and opera- tions to have state of the art respiratory protection. Self contained Breathing Apparatus are one of the most crit- ical elements in personal protective equipment utilized by our firefighters and keeping our SCBA at the state of the art of the industry is a critical standard. Regulatory or Legal Mandates: Required by OSHA and NFPA Operational Necessity/Justification: SCBA are CRITICAL to the safe operation and health of the members of the Anna Fire Department. City Sources of Funding: General Fund Revenues Non-City Sources of Funding: Total Project Cost: $20,000 Project Year(s): 2014 FY 13 Budget Commitment: $0.00 FY 13 FY 14 FY 15 FY 16 FY 17 Future Total Land Acquisition Design Costs Construction Costs Const. Mgmt. Furn./Fixt./Equip. $20,000 $20,000 Professional Fees Contingencies Total $20,000 $20,000 Proposed Budget Schedule 167 Total summary of economic costs of capital expenditures planned for the next 5 years and beyond TOTAL CAPITAL IMPROVEMENT PLAN 168 FIVE YEAR CAPITAL IMPORVEMENTS PLAN Capital Projects Department FY13 FY14 FY15 FY16 FY17 Future BUILDINGS City Hall Addition Admin $500,000 Central Fire Station Fire $2,700,000 Fire Station #2 Fire $1,500,000 New City Hall Admin $10,000,000 NSP Community Center Parks $1,500,000 WATER AND SEWER Hwy 5 Ground Storage Tank Repair Water $100,000 Blended Water System Water $2,250,000 WWTP Upgrades Sewer $800,000 WWTP Relief Line Sewer $950,000 Clemens Creek Sewer Ex- tension Sewer $700,000 Elevated Storage Tank Water $2,800,000 STREETS Annual Street Repair Streets $100,000 $100,000 $100,000 $100,000 $100,000 Ferguson Pkwy. Bypass Streets $50,000 Ferguson Pkwy. (FM 455 to Foster Crossing Rd. – Engi- neering) Streets $594,000 Construct Ferguson Pkwy. (FM 455 to CR 367) Streets $1,000,000 FM 455 (U.S. 75 to East Fork Creek – Engineering) Streets $520,000 Rosamond Pkwy. (Hwy 5 to U.S. 75 – Engineering) Streets $520,000 Reconstruct Hackberry (Hwy. 5 to Slayter Creek) Streets $423,000 Mantua Rd/CR 371 (Hwy. 5 to U.S. 75 – reconstruction) Streets $6,600,000 PARKS Slayter Creek Park Ph. II Parks $2,100,000 Trail Extensions Parks $301,560 $300,000 $300,000 $300,000 Geer Park Phase I Parks $1,500,000 VEHICLES Vehicle Replacement Police $65,550 $64,000 $32,500 $32,500 $32,500 New Command Vehicle Fire $36,000 Replace R901 Fire $450,000 Quint Fire Engine Fire $1,000,000 Replace/Purchase Trucks Public Works $25,000 $30,000 169 FIVE YEAR CAPITAL IMPORVEMENTS PLAN Capital Projects Department FY13 FY14 FY15 FY16 FY17 Future Machinery & Equipment Payment Kiosk Utility Billing $40,000 Mini Excavator Public Works $50,000 Mower Parks $12,000 Backhoe Trailer Public Works $15,000 Portable Generator Public Works $85,000 Purchase New Thermal Imaging Camera (TIC) Fire $10,000 Mobile Data Computers for Fire Apparatus Fire $7,500 Pump overhaul for E902 Fire $35,000 Purchase Gas Detector Fire $6,500 Purchase 10 Scott Air-Pacs Fire $20,000 TOTAL $4,441,560 $3,426,050 $585,500 $432,500 $132,500 $31,839,500 GRAND TOTAL $40,857,610 FITCH UPGRADES ANNA, TX LT BONDS TO 'A'; OUTLOOK STABLE Fitch Ratings-Austin-15 April 2011: In the course of routine surveillance, Fitch Ratings has taken the following action on Anna, Texas' limited tax bonds: --$2.18 million combination tax and limited surplus revenue certificates of obligation, series 2006 upgraded to 'A' from 'A-'; --$29,000 1976 general obligation water bonds upgraded to 'A' from 'A-'. The Rating Outlook is Stable. RATING RATIONALE: --The rating upgrade reflects the city's consistently strong financial performance and prudent management of spending pressures associated with a rapidly growing population and revenue enhancements to offset declines in taxable value. --The credit also benefits from access to the diverse economy of the Dallas/Fort Worth metroplex. --Overall debt levels are quite high as is the fixed cost burden on the budget associated with direct debt levels, making the maintenance of high reserve levels even more important for financial flexibility. -- The city's population grew at a robust growth rate over the last decade reaching 8,249 but the economy remains relatively limited. KEY RATING DRIVERS: --Maintenance of substantial financial reserves. --Continued stabilization of the city's tax base. SECURITY: The bonds secured by the levy of an ad valorem tax on all property within the limits of the city up to a maximum rate of $2.50 per $100 of taxable assessed value and by a pledge of limited surplus net revenues (not to exceed $1,000 of the city's waterworks and sewer system). CREDIT SUMMARY: The city is located 40 miles north of Dallas in Collin County. Easy access to Dallas from U.S. Highway 75 and affordable land made this former farm community an attractive location for many first time homebuyers. Officials estimate that 80% to 90% of residents commute outside the city for work. The city experienced dramatic growth in its population base during the early years of the last decade, which has continued into the present, albeit at a slower pace. Overall population increased at an average annual rate of 21% between 2000 and 2010 making it one of the fastest growing cities in the region. Significant commercial and retail development followed. With the onset of the recent recession, the city's expansion slowed down considerably. Single-family residential building permits, which annually exceeded 500 in 2003 and 2004, dropped precipitously to a low of seven in 2009. Recent signs of economic improvement include a nascent revival in building permits and boisterous growth in sales tax revenues. Collin County wealth indices are well above the state and national averages Financial operations are well managed as evidenced by historically large general fund balances. Despite general fund operating deficits in fiscals 2007 through 2009, reserves remained at healthy levels at over 60% of expenditures. In fiscal 2010, a substantial operating surplus was reported as general fund revenues, spurred by swelling property tax and sales tax collections, increased 11% over the prior year. Management has also been successful in moderating spending despite the demands of a burgeoning residential base. General fund expenditures have increased at a manageable 3.8% average annual rate since fiscal 2006. Public safety constitutes the largest and fastest growing spending item. For the current fiscal year, the city expects general fund operations to be balanced with little or no surplus. From 2003 through 2008, the city's tax base soared, growing by 384% during this time. However, as building activity dried up, taxable values leveled off and then declined, dropping by 5% over the past two years. Although new properties continue to be added to the tax rolls, the value of existing properties declined by nearly 8.5% during this period. Another reduction of the tax base of 3% is expected in fiscal 2012. There are no concentration issues as the top 10 taxpayers represent only 8.2% of total assessed values. Property tax rates are above average when compared with other cities in Collin County. The city's current rate of $.65 per $100 of assessed value represents a 13% rate hike since fiscal 2009, more than offsetting the decline in the tax base. Property tax collection rates are historically strong. Tax-supported debt consists of approximately $4.9 million of bonds, notes and leases. Direct debt levels are modest with direct debt to full value and direct debt per capita of 1.1% and $584, respectively. Overall debt levels are much higher due to recent bonding by the local school district. Total debt to full value rises to over 15%, 10% net of state funding of the school district's bond payments, and overall debt per capita is over $8,000. Amortization of tax-supported debt is above average with 60% of principal retired within 10 years. Most of the city's outstanding debt consists of obligations of its waterworks and sewer system. The city plans to restructure both its tax-supported and water and sewer debt within the next year in order to smooth out debt service requirements, which are scheduled to rise significantly in 2018. No additional tax-supported bonds are planned for the foreseeable future. The city's pension liabilities are limited to its participation in the Texas Municipal Retirement System (TMRS), the state pension plan. The city's annual contribution to TMRS, which is determined by state law, was $203,000 in fiscal 2010, or a manageable 6.55% of total spending. Using Fitch's more conservative 7% discount rate (0.5% below the actual assumed rate), the city's contribution would increase to $243,000 or 7.8% of expenditures. Contact: Primary Analyst Matt Dustin Analyst +1-512-215-2727 Fitch, Inc. 111 Congress Avenue Suite 2010 Austin, TX 78701 Secondary Analyst Larry Levitz +1-212-908-0054 Committee Chairperson Jessalynn Moro Managing Director +1-212-908-0608 Media Relations: Cindy Stoller, New York, Tel: +1 212 908 0526, Email: cindy.stoller@fitchratings.com. Additional information is available at 'www.fitchratings.com' In addition to the sources of information identified in the Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, LoanPerformance, Inc., IHS Global Insight, Applicable Criteria and Related Research: --'Tax-Supported Rating Criteria', Aug. 16, 2010. --'U.S. Local Government Tax-Supported Rating Criteria', Oct. 8, 2010. For information on Build America Bonds, visit www.fitchratings.com/BABs. Applicable Criteria and Related Research: Tax-Supported Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=548605 U.S. Local Government Tax-Supported Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=564566 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. 173 CITY OF ANNA, TEXAS HOME-RULE CHARTER Originally adopted by vote of the people of the City of Anna, Texas on May 7, 2005 Amended on November 4, 2008 and May 12, 2012 Codified as: PART I of The Anna City Code of Ordinances 174 ARTICLE 7—FINANCIAL PROCEDURES SECTION 7.01 Fiscal Year The fiscal year of the City begins on the first day of October and ends on the last day of September on the next succeeding year. Such fiscal year also constitutes the budget and accounting year. SECTION 7.02 Submission of Budget and Budget Message On or before the 15th day of August of the fiscal year, the City Manager must submit to the City Council a budget for the ensuing fiscal year and an accompanying budget message. SECTION 7.03 Budget Message The City Manager's message must explain the budget both in fiscal terms and in terms of the work programs. It must outline the proposed financial policies of the City for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures, and revenues together with the reasons for such changes, summarize the City's debt position and include such other material as the City Manager deems desirable. SECTION 7.04 Budget a Public Record The budget and all supporting schedules must be filed with the person performing the duties of City Secretary when submitted to the City Council and must be open to public inspection by anyone interested. SECTION 7.05 Public Hearing on Budget At the City Council meeting when the budget is submitted, the City Council must name the date and place of a public hearing and have published in the official newspaper of the City, at least twice, the time and place, which will be not less than ten days nor more than 30 days after the date of notice. At this hearing, interested citizens may express their opinions concerning items of expenditures, giving their reasons for wishing to increase or decrease any items of expense. SECTION 7.06 Proceeding on Adoption of Budget After public hearing, the City Council must analyze the budget, making any additions or deletions which they feel appropriate, and must, at least ten days before the beginning of the next fiscal year, adopt the budget by the affirmative vote of a majority of the full membership of the City Council. Should the City Council take no final action on or before such day, the current budget will continue to be in force on a month-to-month basis until a new budget is adopted. SECTION 7.07 Budget, Appropriation and Amount to be Raised by Taxation On final adoption, the budget is in effect for the budget year. Final adoption of the budget by the City Council constitutes the official appropriations as proposed by expenditures for the current year and 175 constitutes the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any item required for the same general purpose. SECTION 7.08 Contingent Appropriation Provision may be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than three percent of the total general fund expenditures, to be used in case of unforeseen items of expenditures. This contingent appropriation must apply to current operating expenses and must not include any reserve funds of the City. Such contingent appropriation is under the control of the City Manager and may be distributed by him only after prior approval by the City Council. The proceeds of the contingent appropriation may be disbursed only by transfer to other departmental appropriation, the spending of which must be charged to the departments or activities for which the appropriations are made. SECTION 7.09 Amending the Budget Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the City Council may, by the affirmative vote of a majority of the full membership of the City Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. These amendments must be by ordinance, and must become an attachment to the annual budget. SECTION 7.10 Certification; Copies Made Available A copy of the budget, as finally adopted, must be filed with the person performing the duties of City Secretary and such other places required by state law or as the City Council may designate. The final budget must be printed or otherwise reproduced and sufficient copies made available upon request for the use of all offices, agencies, interested persons and civic organizations. SECTION 7.11 Capital Program The City Manager must submit a five-year capital program as an attachment to the annual budget. The program as submitted must include: (1) a clear summary of its contents; (2) a list of all capital improvements which are proposed to be undertaken during the five fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements; (3) cost estimates, method of financing, and recommended time schedules for each improvement; and (4) the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition. 176 SECTION 7.12 Defect Does Not Invalidate the Tax Levy Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements do not nullify the tax levy or the tax rate. SECTION 7.13 Lapse of Appropriations Every appropriation, except an appropriation for a capital expenditure, lapses at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure continues in force until the purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation is deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered will be deemed excess funds. SECTION 7.14 Borrowing (a) The City has the right and power, except as prohibited by law or this Charter, to borrow money by whatever method it may deem to be in the public interest. (b) General Obligation Bonds. 1 The City has the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or any other public purpose not prohibited by law and this Charter, and to issue refunding bonds to refund outstanding bonds previously issued. All such bonds must be issued in conformity with state and federal law and must be used only for purposes for which they were issued. 2 Any bonds issued under the provisions of this Section may not be issued without an election. The City Council must prescribe the procedure for calling and holding such elections, must define the voting precincts and must provide for the return and canvass of the ballots cast at such elections. 3 If at such elections a majority of the vote is in favor of creating such a debt or refunding outstanding valid bonds of the City, it will be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the votes are against the creation of such debt or refunding such bonds, the City Council is without authority to issue the bonds. In all cases when the City Council orders an election for the issuance of bonds of the City, it must at the same time submit the question of whether or not a tax may be levied upon the property within the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption. (c) Revenue Bonds. 1 The City has the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, or any other self-liquidating municipal function not prohibited by state or federal law. 177 2 With an affirmative vote of at least two-thirds of the Council Members present and having authority to vote, the City has the power to issue revenue bonds and to evidence the obligation created thereby. 3 Such bonds are a charge upon and payable from all or any part of the properties pledged or from the income gained from the properties, or both. The holders of the revenue bonds are not entitled to demand payment on the bonds out of monies raised or to be raised by taxation. 4 All such bonds must be issued in conformity with state and federal law and must be used only for the purpose for which they were issued. (d) Emergency Funding. In any budget year, the City Council may, by affirmative vote of at least two-thirds of the Council Members present and having authority to vote, authorize the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year. SECTION 7.15 Purchasing (a) The City Council may by ordinance, give the City Manager general authority to contract for expenditure without further approval of the City Council for all budgeted items not exceeding limits set by the City Council within the ordinance. (b) All contracts for expenditures or purchases involving more than the limits must be expressly approved in advance by the City Council. All contracts or purchases involving more than the limits set by the City Council must be awarded by the City Council in accordance with state and federal law. (c) Emergency contracts as authorized by law and this Charter may be negotiated by the City Council or City Manager if given authority by the City Council, without competitive bidding, and in accordance with state and federal law. Such emergency may be declared by the City Manager if approved by the City Council, or may be declared by the City Council. SECTION 7.16 Administration of Budget (a) No payment may be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the City Manager, or the City Manager’s designee, first certifies that there is a sufficient unencumbered balance in the budget and that sufficient budget funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. (b) Any authorization of payment or incurring of obligation in violation of Subsection (a) of this Section is void and any payment so made illegal. (c) This prohibition does not prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness, or certificates of obligation, or to prevent the making of 178 any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance. (d) The City Manager must submit to the City Council each month a report covering the revenues and expenditures of the City in such form as requested by the City Council. SECTION 7.17 Depository All monies received by any person, department or agency of the City for or in connection with the affairs of the City must be deposited promptly in the City depository or depositories. The City depositories must be designated by the City Council in accordance with such regulations and subject to the requirements as to security for deposits and interest thereon as may be established by ordinance and law. Procedures for withdrawal of money or the disbursement of funds from the City depositories may be prescribed by ordinance. SECTION 7.18 Independent Audit When deemed necessary by the City Council, it may call—and at the close of each fiscal year—must call for an independent audit of all accounts of the City by a certified public accountant. No more than five consecutive annual audits may be completed by the same firm. The certified public accountant selected may have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers. The report of audit, with the auditor's recommendations, will be made to the City Council. Upon completion of the audit, the summary must be published immediately in the official newspaper of the City and copies of the audit placed on file in the office of the person performing the duties of City Secretary, as a public record. SECTION 7.19 Power to Tax (a) The City has the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by state or federal law. (b) The City has the power to grant tax exemptions in accordance with the laws of the State of Texas. SECTION 7.20 Office of Tax Collector There must be an office of taxation to collect taxes, the head of which is the City Tax Collector. The City Council may contract for such services. SECTION 7.21 Taxes; When Due and Payable (a) All taxes due in the City are payable at the office of the City Tax Collector, or at such location or locations as may be designated by the City Council, and may be paid at any time after the tax rolls for the year have been completed and approved. Taxes for each year must be paid before February 1 of the next succeeding year, and all such taxes not paid before that date are delinquent, and subject to penalty and interest as the City Council may provide by ordinance. The City Council may provide discounts for the payment of taxes before January 1 in amounts not to exceed those established by state law. 179 (b) Failure to levy and assess taxes through omission in preparing the appraisal rolls does not relieve the person, firm or corporation so omitted from obligation to pay such current or past due taxes as shown to be payable by recheck of the rolls and receipts for the years in question, omitting penalty and interest. SECTION 7.22 Tax Liens, Liabilities and Suits (a) All taxable property located in the City on January 1 of each year is charged from that date with a special lien in favor of the City for the taxes due. All persons purchasing any such property on or after January 1 in any year take the property subject to the liens provided above. In addition to these liens, on January 1 of any year, the owner of property subject to taxation by the City is personally liable for the taxes due for that year. (b) The City has the power to sue for and recover personal judgment for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgment and foreclosure. In any such suit where it appears that the description of any property in the City appraisal rolls is insufficient to identify such property, the City has the right to plead a good description of the property to be assessed, to prove the same, and to have its judgment foreclosing the tax lien or for personal judgment against the owners for such taxes.