Loading...
Ord 665 Revising the Budget for Fiscal Year 10-11 and Adopting the Budget for Fiscal Year 11-12TOWN OF WESTLAKE ORDINANCE NO. 665 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, REVISING THE BUDGET FOR THE 2010-2011 FISCAL YEAR; ADOPTING THE BUDGET FOR THE TOWN OF WESTLAKE, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 309 2012 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, COMMITTED AND ASSIGNED FUND BALANCES; PROVIDING AUTHORIZATION TO THE TOWN MANGER TO APPROVE APPROPRIATED FUNDS UP TO $25,000; PROVIDING THAT THE BUDGET TO BE KEPT IN CITY SECRETARY'S OFFICE; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. . WHEREAS, public notice of a public hearing on the proposed annual budget, stating the date, time, and place and subject matter of the public hearing, was given as required by the laws of the State of Texas and; and WHEREAS, a public hearing was duly held and all interested persons were given an opportunity to be heard for or against any item therein on September 12, 2011; and, WHEREAS, as required by Texas Local Government Code 102.002, the budget officer has prepared a municipal budget to cover the proposed expenditures of the municipal government for the succeeding year; and, WHEREAS, the Town Council finds that the passage of this Ordinance is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety SECTION 2: That the Town Council hereby adopts the revised budget for the fiscal year beginning October 1, 2010 and eliding September 30, 2011 as shown in Exhibit "A." SECTION 3: That the Town Council does hereby approve the proposed Municipal Budget attached as Exhibit "A", adopting the budget for the Fiscal Year Beginning October 1, 2011, and for Fiscal Year Ending September 30, 2012. SECTION 4: That the Town Council hereby gives the Town Manager authorization to approve any appropriated funds up to the amount of $25,000. SECTION 5: That a copy of the official adopted 2011-2012 budget documents shall be kept on file in the office of the Town Secretary Ordinance 665 Page 1 of 2 SECTION b; If any portion of this Ordinance shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Ordinance without the invalid provision. SECTION 7. That this Ordinance shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 12TH DAY OF SEPTEMBER 2011. ATTEST: 4--1"&boVffi1 �U� - Kelly dwar , Town Secretary .).�� Laura L. Wheat, Mayor WF �o s<7. m MIN in "lager Ordinance 665 Page 2 of 2 T �- TheTown O The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 * www.westiake-tx.org 1'4-jTr7r1, l` ell IN 01J11 Fi1'1'[1 lel: �► WORK IN PROGRESS UNDER CANS'1'RjJI;' 101 Fiscal Year 2011-2012 OPFIRDATING 'iDDUDGET &L r This page is intentionally blank VISION STATEMENT WESTLAKE IS AN OASIS OF TRANQUILITY AND NATURAL BEAUTY AMIDST AN EVER EXPANDING URBAN LANDSCAPE. VISION POINTS A SENSE OF PLACE DISTINCTIVE NEIGHBORHOODS, ARCHITECTURALLY VIBRANT CORPORATE CAMPUSES, GRAZING LONGHORNS, SOARING RED-TAILED HAWKS, MEANDERING ROADS AND TRAILS, LINED WITH NATURAL STONE AND NATIVE OAKS. 'tP' WE ARE LEADERS 'LACE TO LIVE, LEADERSHIP IN PUBLIC EDUCATION, CORPORATE AND GOVERNMENTAL PARTNERSHIPS, AND HIGH DEVELOPMENT STANDARDS. WE ARE A CARING COMMUNITY - � INFORMED RESIDENTS, SMALL TOWN CHARM AND VALUES, HISTORICAL PRESERVATION. %tP° TOWN OFFICIALS, BOTH ELECTED AN PPOINTED, EXHIBIT RESPECT, STEWARDSHIP, VISION, AND TRANSPARENCY. ':�>- SERVICE EXCELLENCE PUBLIC SERVICE THAT IS RESPONSIVE AND PROFESSIONAL, WHILE BALANCING EFFICIEN=, EFFECTIVENESS AND FINANCIAL STEWARDSHIPAP- COMMUNITY VALUES INNOVATION EDUCATIONAL LEADERS FAMILY FRIENDLY AND WELCOMING ENGAGED CITIZENS PRESERVATION OF OUR NATURAL BEAUTY STRONG AESTHETIC STANDARDS TRANSPARENT GOVERNMENT FISCAL RESPONSIBILITY MISSION STATEMENT "ON BEHALF OF THE CITIZENS, THE MISSION OF THE TOWN OF WESTLAKE IS TO BE A ONE -OF -A -KIND COMMUNITY THAT BLENDS OUR RURAL ATMOSPHERE WITH OUR VIBRANT CULTURE AND METROPOLITAN LOCATION." TOWN OF WESTLAKE COUNCIL MEMBERS MAYOR PRO -TEM COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER LAURA WHEAT CAROL LANGDON TIM BRITTAN CLIFTON COX DAVID LEVITAN RICK RENNHACK TOWN OF WESTLAKE ADMINISTRATIVE OFFICIALS TOWN MANAGER ASSISTANT TO THE TOWN MANAGER AND COURT ADMINISTRATOR TOWN SECRETARY DIRECTOR OF COMMUNICATIONS AND COMMUNITY AFFAIRS DIRECTOR OF FINANCE DIRECTOR OF PUBLIC WORKS DIRECTOR OF HUMAN RESOURCES AND ADMINISTRATIVE SERVICES DIRECTOR OF PARKS & RECREATION AND FACILITIES MAINTENANCE DIRECTOR OF PLANNING AND DEVELOPMENT TOM BRYMER AMANDA DEGAN KELLY EDWARDS GINGER AWTRY DEBBIE PIPER .JARROD GREENWOOD TODD WOOD TROY MEYER EDDIE EDWARDS FIRE CHIEF RICHARD WHITTEN TOWN OF WESTLAKE BOARDS Et COMMISSIONS WESTLAKE HISTORICAL PRESERVATION SOCIETY STEPHEN THORNTON, KRISTI LAYTON, ALLAN WERST, FRED HELD, KELLY BRADLEY, KAREN STOLTENBERG, BERT SCHULTZ " WESTLAKE ACADEMY FOUNDATION ROBERT SCOTT, LEAH RENNHACK, KELLY COX, ZAN JONES, CASEY PAULSON, BILL GREENWOOD, CATHY LEE, CHARLOTTE RYAN, KEVIN HANSEN, APRIL GALLAGHER PLANNING & ZONING COMMISSION BILL GREENWOOD, WALTER COPELAND, ALLEN HEATH, SHARON SANDEN, WAYNE STOLTENBERG -f,- TEXAS STUDENT HOUSING AUTHORITY JIM CARTER, GEORGE LEDAK, JILL MCKEAN, SCOTT BRADLEY, GREGG MALONE PUBLIC ARTS COMMITTEE BRYAN BIDDLE, LEAH RENNHACK, KELLY COX, AMELIA JOHNSON, TRISH BIDDLE, APRIL GALLAGHER, MIKE SILLIMAN, GAIL JAMES, DEBRA HALE � 4B ECONOMIC DEVELOPMENT BOARD LAURA WHEAT, RICK RENNHACK, TIM BRITTAN, CAROL LANGDON, DAVID BROWN, GREGG MALONE `�- ARBOR DAY ADVISORY COMMITTEE TROY MEYER uJ GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Town of Westlake Texas For the Fiscalyear Beginning October 1, 2010 PrLsidcnt Executive Director THE GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA (GFOA) HAS PRESENTED A DISTINGUISHED BUDGET PRESENTATION AWARD TO THE TOWN OF WESTLAKE FOR ITS ANNUAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2010. IN ORDER TO RECEIVE THIS AWARD, A GOVERNMENTAL UNIT MUST PUBLISH A BUDGET DOCUMENT THAT MEETS PROGRAM CRITERIA AS A POLICY DOCUMENT, AS AN OPERATIONS GUIDE, AS A FINANCIAL PLAN, AND AS A COMMUNICATION DEVICE. THIS AWARD IS VALID FOR A PERIOD OF ONE YEAR ONLY. WE BELIEVE OUR CURRENT BUDGET CONTINUES TO CONFORM TO PROGRAM REQUIREMENTS, AND WE ARE SUBMITTING IT TO GFOA TO DETERMINE ITS ELIGIBILITY FOR ANOTHER AWARD. Table of Contents 1. INTRODUCTION Transmittal Letter Introduction FY201 1-12 Budget Theme: "Investing in our Future" ------------------------------------3 FY12010-1 1: A Good Year, A Year of Progress ---------------------------------------------4 Preparing and "Scrubbing" the FY 2011-12 Budget ------------------------------------6 Governing and Managing for Outcomes ---------------------------------------------------7 Vision, Values, Mission Statement 8 Guideposts Along the Way: There is Still Work to Do -----------------------------------9 FY201 1-12 Adopted Budget in a Five Year Context, ---------------------------------1 1 - Closing Thoughts for FY 2011-12 ------------------------------------------------------------------ I 1- Property Tax - Revenue Allocation _________ _______13 Budget Overview and Framework Introduction 15 ----------------------------------------------------------------------------------------------------- Basis of Accounting/Budgeting,-----------------------------------------------------------------16 TheBudget Process-------------------------------------------------------------------------------------20 Budget Amendment Process---------------------------------------------------------------------20 Financial Policies 21 Y� Financial Analysis and Summaries - All Funds Three Year Analysis Comparison----------------------------------------------------------------23 Fund Balances - All Source 24 Revenues and Other Financing Sources ---------------------------------------------------28 Expenditures and Other Operating Uses --------------------------------------------------- 30 Personnel and Organization Organizational Chart----------------------------------------------------------------------------------35 PositionSummary----------------------------------------------------------------------------------------36 Personnel Summary-------------------------------------------------------------------------------------37 2. GENERAL FUND ProgramSummary--------------------------------------------------------------------------------------39 Fund Overview ------------------------------------------------------------------------------------------------ 40 Dept 10 - General Services-------------------------------------------------------------------------48 Dept 1 1 - Town Manager---------------------------------------------------------------------------52 Dept 12 - Planning and Zoning-------------------------------------------------------------------58 Dept 13 - Town Secretary---------------------------------------------------------------------------62 Dept 14 - Emergency Services-------------------------------------------------------------------68 Dept 15 - Municipal Court--------------------------------------------------------------------------74 Dept 16 - Public Works--------------------------------------------------------------------------------80 Dept 17 - Facilities Maintenance---------------------------------------------------------------84 Dept 18 - Finance-------------------------- --------- ------------------------------------ ------- 90 Dept 19 - Parks and Recreation-----------------------------------------------------------------96 Dept 20 - Information Technology------------------------------------------------------------ 102 Dept 21 - Human Resources and Administrative Services----------------------- 106 Dept 22 - Communications and Community Affairs ------------------------------1 10 Dept 23 - Police Services--------------------------------------------------------------------------1 14 The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 Table of Contents 3. SPECIAL REVENUE FUNDS Yj Westlake Academy Fund 199 Program SummarY----------------------------------------------------------------------------------- 119 Fund Overview 120 z+ 413 Economic Development Fund 200 Program Summary----------------------------------------------------------------------------------- 123 Fund Overview 124 ------------------------------------------------------------------------------------------------ Inter -fund Repayment Schedule--------------------------------------------------------------125 :+ Economic Development Fund 210 ProgramSummary ----------------------------------------------------------------------------------- 127 Fund Overview128 ------------------------------------------------------------------------------------------------ Tax Reimbursement Schedule - Fidelity Phase 1-------------------------------------129 Visitors Association Fund 220 ProgramSummary------------------------------------------------------------------------------------131- Fund Overview132 ------------------------------------------------------------------------------------------------ ProgramBudget--------------------------------------------------------------------------------------- 133 ,+ Property Tax Reduction Sales Tax Fund 260 ProgramSummary ----------------------------------------------------------------------------------- 135 Fund Overview136 ------------------------------------------------------------------------------------------------ r+ Lone Star Public Facilities 418 Program Summary----------------------------------------------------------------------------------- 139 Fund Overview140 ------------------------------------------------------------------------------------------------ 4. DEBT SERVICE FUND ProgramSummary ----------------------------------------------------------------------------------- 143 Fund Overview 144 Long Term Debt Summary----------------------------------------------------------------------- 145 2011 Series -Certificates of Obligation ----------------------------------------------------- 146 2008 Series - General Obligation Bonds --------------------------------------------------147 2007 Series - General Obligation Refunding Bonds --------------------------------148 2003 Series - Certificates of Obligation ----------------------------------------------------- 149 2002 Series - Certificates of Obligation -- ------------150 The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 Table of Contents 5. ENTERPRISE FUND Utility Fund 500 ProgramSummary----------------------------------------------------------------------------------- 153 Fund Overview 154 ProgramBudget-----------------------------------------------------------------------------------------158 Capital Project Goals and Objectives------------------------------------------------------------------------------ 159 Inter -fund Repayment Schedule-------------------------------------------------------------- 161_ Debt Payable Schedule - Keller Overhead Storage-- --------- --------- 1 ----- 62 Capital Project - Stagecoach Hills Waterline Connection ----------------------163 Capital Project - TRA Assumption of N-1 Sewer Line -------------------------------- 164 Capital Project - N-1 Sewer Line/Inflow & Infiltration Repair -------------------165 Capital Project Capital Project - Ground Storage tank --------------------------------------------------166 191_ lo Cemetery Fund 255 ProgramSummary -------------------------------------------------------------------------- 169 Fund Overview 170 Via. INTERNAL SERVICE FUNDS Utility Major Maintenance Fund 510 ProgramSummary----------------------------------------------------------------------------------- 173 Fund Overview174 ------------------------------------------------------------------------------------------------ Capital 5 Year Projection .------------------------------------------------------------------------ 175 tr� General Major Maintenance Fund 600 ProgramSummary----------------------------------------------------------------------------------- 177 Fund Overview178 ------------------------------------------------------------------------------------------------ Capital 5 Year Projection .------------------------------------------------------------------------ 179 Y� Vehicle & Equipment Replacement Fund 257 ProgramSummary ------------------------------------------------------------------------------------- 81_ Fund Overview 182 7. CAPITAL PROJECT FUNDS �- Capital Projects Fund 410 ProgramSummary----------------------------------------------------------------------------------- 185 Fund Overview186 ------------------------------------------------------------------------------------------------ Capital Project - FM1938 Streetscape/Wayfinding________________________________ 187 Capital Project - Dove & Ottinger Reconstruction & Drainage -------------188 Capital Project - Street Survey-----------------------------------------------------------------189 Capital Project - Stagecoah Hills Reconstruction & Drainage -------- ----- 190 Capital Project - Roanoke Road Reconstruction & Drainage ---------------- 191_ Capital Project -Trail Connection at 1 14/Solana-----------------------------------192 Capital Project - Dove/Randol Mill Traffic Circle ------------------------------------193 The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 Table of Contents tr+ Arts and Sciences Center Fund 411 Program Summary ----------------------------------- Fund Overview S. CAPITAL IMPROVEMENTS Capital Improvement Plan ................................. Approved Capital Projects - 5 Year Projection 9. FIVE YEAR FORECAST Five Year Financial Forecast Narrative Five Year Year Financial Forecast All Municipal Funds - 10. PROGRAM BUDGETING Program Budgeting Narrative Program Budgeting Detail ------ 1 1 . WESTLAKE ACADEMY Excerpt from Westlake Academy Budget Five Year Financial Forecast 12. COMMUNITY PROFILE General Information History of Westlake_______ Local Government_______ Community Events_______ Westlake Academy ----- Facts, Figures, Statistics Area Employers ............ 13. APPENDIX Glossaryof Terms ----------------------------------------------------------------------------- Fiscal and Budgetary Policies --------------------------------------------------------- Investment Policy---------------- --------- --------- --------- --------- ---------------- FY 10 - 1 1 Budget Calendar------------------------------------------------------------ Ordinance No. 665 - Adoption of FY 2011-12 Operating Budget The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 195 196 199 200 203 205 -21-1- -2-1-3 213 265 288 291 292 293 294 295 296 297 299 305 317 322 323 I This page is intentionally blank 1NCVj41JSFri `G I\ 01J11 1441j'rijull WORK IN PROGRESS The Transmittal Letter is written to the Town Council by the Town Manager and provides a high- level preview of the Town Manager's adopted budget. k WEq It contains hard numbers including the adopted tax rate and fund summaries as well as excerpts =,C9, = - . ) from the Town's most recent citizen's survey. &//1 Y'4 f� r' a sAeAoAff.0'AV #'AV Ar J September 12, 2011 Honorable Mayor and Town Council: INTRODUCTION TRANSMITTAL LETTER I am presenting, on behalf of the Staff Leadership Team for the Council's consideration, the Town of Westlake's FY 2011-12 budget totaling $20,093,931 (including $2,769,950 transfers in from fund balance for operating, debt service, capital projects, major maintenance and equipment replacement needs) for all funds. This represents a 21% decrease from the FY 2010-2011 estimated budget which is due to large transfers made in FY 2010-11 ($2,805,000 from General Fund and $1,205,000 from the Property Tax Reduction Fund) for various capital projects. If the above referenced transfers for capital projects in FY 2010-11 were removed for comparison purposes, the adopted FY 2011-12 budget would show a 16% increase over the FY 2010-11 estimated which is primarily due to expenditures for capital projects and Westlake Academy. This is a direct result of the inclusion in the financial summary section of the Westlake Academy's FY 201 1- 12 operating expenditures and transfers out totaling $5,384,252. This will be the second municipal budget in which we have included Westlake Academy's operating budget for purposes of presenting a complete picture of the Town's financial position and the services we provide to our residents and stakeholders. As required by State law, this adopted FY 2011-12 municipal budget was prepared with the base assumption that the Town's first priority is to have a balanced budget. Further, that it is a Town priority to fund and deliver basic, but high quality, municipal services to our residents and businesses. Service levels are in alignment with resident feedback regarding priorities from our 2011 Direction Finders (citizens') survey results and the Town's Strategic Plan. This adopted budget continues the development and use of a program approach begun in the prior fiscal year. A summary of the changes in Fund Balance from the projected beginning fund balances to the Adopted FY 2011-12 fund balances is as follows: Beginning Fund Fund Type Balance Revenues and Expenditures Other Funding and Other Sources Funding Uses Ending Fund Balance Net Change Inc(Dec) Percent General Fund 2,748,308 5,754,361 5,976,599 222,238) 2,526,069 -8% Westlake Academy 760,220 5,281,035 5,384,252 103,217 657,003 -14% Special Revenue 1,368,523 1,430,963 1,570,024 139,061 1,229,462 -10% Debt Service Fund 1,656,032 1,656,032 0% Enterprise Funds 2,131,012 2,724,741 3,009,759 285,018 1,845,995 -13% Internal Services 694,762 580,350 449,720 130,630 825,392 19% Capital 4,638,409 27,800 2,047,545 2,019,745 2,618,664 -44% TOTAL $ 12,341,234 $ 17,455,282 $ 20,093,931 $(2,638,649) $9 1 702,585 -21% i TRANSMITTAL LETTER As can be seen, the FY 2011-12 budget shows new and important positive changes and trends in fund balances for the Town's major funds. These are: The Capital Projects Fund is planned to have a significant fund balance reduction due to our planned investment of cash to fund a portion of the Town Council's approved Capital Improvement Program (CIP), i.e. the Town's CIP is being implemented and capital projects are being built in accordance with the plan. Cash on hand was utilized in the CIP to reduce the amount of debt issued to fund the projects. Largely as a result of this capital spending, the combined overall fund balance for these six (6) major funds types has been reduced. The General Fund's ending balance is projected to decrease due primarily to a transfer to the General Maintenance & Replacement Fund. Comparing revenues to expenditures, the General Fund is in good financial condition. This is due to: a) implementation in FY 2010-11 of a municipal ad valorem tax, b.) improved sales tax revenue performance over original budget, c.) reimbursement of indirect cost for Westlake Academy operation, and d.) simplifying our fund structure to bring Property Tax Reduction sales tax funds directly into the General Fund (instead of the transfer in from a separate fund as was the past practice). The ad valorem tax rate used in this adopted FY 2011-12 budget and compared to the rate used for FY 2010-11 is as follows: FY 10-11 FY 11-12 Adopted Adopted Tax Rate Tax Rate Variance M&O $ 0.15620 $ 0.13835 $ (0.01785) I &S $ 0.00390 $ 0.01849 $ 0.01459 Total $ 0.16010 $ 0.15684 $ (0.00326) In FY 2011-12, the General Fund utilizes an adopted municipal ad valorem tax that is 2% less than the FY 2010-11 rate of $0.1601 per $100 of assessed valuation. The adopted FY 2011-12 tax rate of $0.1568 is 14% less than the effective rate we are allowed to use by law in FY 2011-12 of $0.17944 per $100 of the assessed valuation. Although we have experienced a five percent (5%) decrease in the appraised values for the 2011 tax year, we are able to use this lower tax rate because of (a) modest on-going sales tax revenue improvement, and (b) one-time sales tax revenue in FY 2010-11 from the Deloitte University project. The Utility Fund shows a projected decrease in its fund balance by the end of FY 2011-12 because of scheduled utility capital projects for FY 2011-12 that will be cash funded. Water revenue for FY 2011-12 has been increased due to rising rates in wholesale water costs (10.6% increase from City of Fort Worth effective 10-1-11) and additional retail water sales. Wholesale sewer treatment costs are also forecast to rise for the Town (11.5% increase from Trinity River Authority effective 12-1-11). Both these wholesale water and sewer costs will be passed along to our retail customers per our rate ordinance adopted last year by the Town Council. Special Revenue funds project a decrease in total fund balance in the amount of $139,061 by the end of FY 2011-12. This reduction is related to the Visitors Association Fund where TRANSMITTAL LETTER o Debt service payment is transferred for the bond issue related to construction of the Westlake Academy Sam and Margaret Lee Arts & Sciences Center and o funds will be transferred to the General Fund to cover costs related to the new Communications Department. Internal Service funds show a projected increase of $130,630 due to the transfer of funds into two major maintenance and equipment replacement funds (Utility and General) to accumulate funds for various repair and replacement items. FY 2011-12 BUDGET THEME: "INVESTING IN OUR FUTURE" Beginning in FY 2009-10, as the nation's economic recession reduced Westlake's primary revenue source of sales tax, we began using a thematic approach to bring focus to the major issue or issues for that particular budget. That year's budget theme was "Critical Challenges, Critical Choices", intending to signal the need for meaningful community -wide dialogue as to how Westlake would come to grips with its vision, as well as an associated financial future. We fostered this dialogue using primarily meetings in every Westlake neighborhood, our electronic newsletter, email blasts, focus group meetings, and placing extensive financial information about the Town's financial sustainability challenges on our website. In FY 2010-11 the budget theme was "Securing the Vision". The focus of that budget's theme was to progress from the FY 2009-10 discussions, and seek viable solutions to Westlake's challenge of becoming financially sustainable. Ultimately, this resulted in the Town Council adopting a $.15684 per $100 of assessed valuation municipal property tax rate. This is the lowest property tax rate of any city in our area, but it stabilized the General Fund's downward fund balance trend and has allowed us to begin dealing with our road infrastructure. Having "Secured the Vision", the theme for the adopted 2011-12 budget is "Investing in Our Future". Selection of this budget theme is intended to reflect that with the hard choices having been made in FY 2010-11, we can now use the resources available to reinvest in our community to maintain Westlake in a manner that is fiscally conservative, responsible, and consistent with its vision, mission, and values. To achieve this focus of "Investing in Our Future", the adopted FY 2011-12 budget reflects three areas of major emphasis. They are: Investment in Service Delivery Sustainability $700,000 ➢ Vision Points Impacted: ■ We are Leaders ■ Service Excellence Fund transfer of $530,000 to the General Maintenance & Replacement Fund for the following: o New ambulance: $200,000 o Replacement of Westlake Academy and other Town building HVAC, heaters, security camera, etc. as needed: $68,320 o Trail repairs: $10,000 o Information technology equipment replacement $27,800 o Westlake Academy physical plant maintenance and building refurbishment: $112,400 o Balance to serve as funding contribution towards fire pumper truck replacement purchase in FY2015-16 TRANSMITTAL LETTER Funding allocated in the General Fund for: o Purchase of attack fire (brush) truck: $170,000 (note: self-funded by gas well pad site reforestation fees) Investment in Core Service Delivery Quality ➢ Vision Point Impacted: • Service Excellence $ 120,927 o Work Force Attraction and Retention: Funding for 1% market pay adjustment: $24,928 o Work Force Attraction and Retention: One-time performance pay: $45,000 o Public Safety Services: Cost increase in annual Keller Police services contract: $28,899 o Additional combined 0.5 positions allocations for new maintenance worker (0.25) and IT technician (0.25) positions: $22,100 Investment in Infrastructure (Capital Improvements Plan) $3,888,542 ➢ Vision Point Impacted: • Sense of Place ■ We are Leaders • Service Excellence o Street, drainage, streetscape, and trail projects $2,047,545 o Water & sewer utility capital improvements 603,603 o Hillwood - Dove/Ottinger Road contributions 1,237,394 FY 2010-11: A GOOD YEAR, A YEAR OF PROGRESS Certainly the purpose of this adopted budget is to have a forward focus on the upcoming 2011-12 fiscal year. However, it is also important to recognize the strategic priorities and milestones achieved by the Town of Westlake organization during FY 2010-11. During FY 2010-11 the following milestones and strategic priorities were achieved: Major progress continued on construction of the $300 million Deloitte University project which is on schedule and set to open in the fall of 2011. This is the largest private construction project now underway in Texas. For the third consecutive year, the Town continued its "Westlake Windows" initiative for transparent government with citizen outreach meetings held in every Westlake neighborhood. The initiative was expanded to Westlake Academy parents residing in the Academy's secondary boundaries. The Town's Leadership Team was realigned to create a full-time Director of Communications & Community Affairs position. This was accomplished by adjusting existing positions (i.e. no new positions were created) so to bring even more focus to the function of outreach and communication. 4 TRANSMITTAL LETTER Work began on revamping the Town's Five (5) Year Strategic Plan and tying it to a Balanced Scorecard, outcome measures, and program budgeting as well as reviewing and updating the Town's vision, mission, and value statements. In conjunction, the Town conducted its third annual Direction Finders citizens' survey for comparison to prior years' surveys, establishing multi-year performance measures, as well as to help guide the adopted budget preparation process. • Implementation of the Town Council's approved Five (5) Year Capital Improvement Plan (CIP) was begun. This CIP covers mostly street improvement projects, allowing us to re -invest in the Town's street infrastructure on a planned basis. Perhaps most significantly, for the first time the Town's CIP was adequately funded via a combination of cash -on -hand and debt issuance of $2.2 million in Certificates of Obligation. • Construction progressed on the State's $15 Million Phase 1 FM 1938 (Precinct Line Rd) Improvement Project. This will be a major north/south arterial roadway with a positive impact on mobility for the region, our residents, and employees of Westlake businesses. It will also impact future business attraction and economic development in Westlake. Estimated completion date is September 2012. • Phase 1 of the Stagecoach Hills Water Distribution System Improvements Project was completed. • The Town entered into a Development Agreement with Hillwood Properties for $4.6 million in street improvements to sections of Dove and Ottinger Roads. Improvements to portions of Ottinger Road are currently underway. • The Town continued to receive recognition for the transparency and high quality of its financial reporting, receiving the Certificate of Achievement for Excellence in Financial Reporting, as well as the Distinguished Budget Presentation Award from the Governmental Finance Officers Association (GFOA) for both its FY 2010-11 Comprehensive Annual Financial Report (CAFR), also known as the annual audit, and the FY 2010-11 budget. • According to Town Council/Board of Trustee direction, we began a two fiscal year phased approach of placing Westlake Academy's operating budget on a full cost basis. The first phase, completed in FY 2010-11, moved all direct operating costs for maintenance of the campus from the municipal budget to the Academy's operating budget. • Westlake's second gas well pad site was successfully drilled in Solana under the standards and requirements of the Town's Oil and Gas Drilling/Production Ordinance adopted in 2009. • New retail growth began to occur along the Town's western boundary at the northwest corner of SH 170 and SH377 with construction commencing on a new Quik Trip convenience store and a Centennial Liquors store. • Westlake received national recognition from Forbes Magazine as the wealthiest community in the United States, and the Dallas Morning News ran a front page story on Westlake's growth and attraction as a high-end residential community. • The Town's open enrollment charter school, Westlake Academy, finished its eighth year of operation. It was a "banner year" with the Academy having its largest enrollment ever and the second graduating class had an 86% success rate in obtaining the prestigious International Baccalaureate diploma. The 32 member class collectively garnered approximately $4.2 million in scholarships and grants. TRANSMITTAL LETTER PREPARING AND "SCRUBBING" THE FY 2011-12 BUDGET Certain assumptions, parameters, and approaches were utilized as the FY 2011-12 budget was prepared consistent with those used for the prior two fiscal years' budgets. These were: a.) to continue to easily track cost increases as they relate to maintaining or increasing service levels, b.) identify use of fund balances and inter -fund transfers, c.) delineate the amount for employee compensation increases, and d.) understand the approach used for revenue estimating. Also, the Town Council's financial policies (contained in the appendix of the budget), were followed in preparation of this adopted budget for 2011-12. Highlights of these approaches and parameters are: Maintained minimum fund balances to exceed Town Council policy requirements (90 day fund balance) Conservative revenue estimating that identified one-time and on-going revenues. Increased focus on more intense "drill down" analysis to better determine our actual on- going sales tax revenue stream has been made for this upcoming fiscal year. Estimated expenditures for current levels of service in FY 2011-12 were achieved by: a) Adjusting for actual spending in FY 2010-11 b) Deducting one-time FY 2010-11 expenditures to create the FY 2011-12 adopted base budget. Any anticipated cost increases in the current level of service, due to inflation and other cost increases, were identified and kept separate from the current level of service base budget in the form of "current service level adjustments" (SLA's). Allocating resources to provide an average one percent (leo) market pay adjustment for municipal employees at a total annual cost of $24,928. The majority of the Town's municipal positions continue to have associated pay levels that are far below the market average for similar municipal positions in our immediate area. Some positions are as much as 40% below the market average. Budgeting funds of $45,000 for one-time performance pay increases (i.e. they do not get built into employee base pay, thus becoming an on-going cost). These funds would not be administered until mid -fiscal year, but only if overall revenue performance shows it is prudent to do so, and would be performance based on employee evaluation. Service levels budgeted are based on the current level of service, with the exception of the addition of the equivalent of .5 positions in the General Fund. This is comprised of part of two new positions needed primarily for Westlake Academy operations. Twenty five percent (25%) of an IT Technician necessary for school operations (to replace an IT Technician going into the class room as a teacher) will be expensed to the municipal budget (for services rendered to municipal operations. Also, twenty-five percent (25%) of a new Maintenance Technician position for Westlake Academy operations is adopted to be expensed to the municipal budget (for services that position will be providing Town operations). Per Council Direction, the second phase of placing Westlake Academy's operating budget on a full cost basis is addressed in this adopted budget. The second phase of this initiative involves the Academy assuming $302,900 of indirect costs for support services provided by the Town government to successfully operate Westlake Academy. These indirect costs cover managerial oversight, human resource services, finance and accounting, risk management, information technology, and facilities maintenance. The $302,900 amount TRANSMITTAL LETTER reflects $325,000 of indirect cost less $22,100 which represents the twenty-five percent (25%) transfer to the Academy for the new IT Tech and the Maintenance Technician positions. All costs for base budgets as well as service level adjustments due to cost increases/inflation were "scrubbed" by extensive review and analysis by the Town Manager and Finance Director. Programs of service were extensively analyzed and discussed in budget review sessions with each Leadership Team member, the Town Manager, and Director of Finance. This ensures maximum efficiency, effectiveness, and utilization of both additional and requested financial resources. The sustainability of the funding request, as well as the economy realities we currently face, were a primary concern during this review process. GOVERNING AND MANAGING FOR OUTCOMES Three fiscal years ago, the Town began moving its leadership and management systems to a framework utilizing a more program based budget designed to link desired outcomes with budgeted resources and accountability for results. This FY 2011-12 budget represents the next step in this continuous improvement process. This budget document utilizes a systemic framework designed to link together critical governance and management decision making tools called "Governing and Managing for Outcomes" and is designed to integrate: Vision driven strategic planning, strategy mapping, and outcome based performance indicators • Five (5) year financial forecasting, budgeting, and performance measurement linked to strategic priorities, objectives, and outcomes to ensure a long term approach that provides financial sustainability • Aligning resources to prioritized outcomes • Reporting to monitor progress in outcome achievement and accountability for results • Utilizing citizen surveys to gauge service satisfaction levels with Town services and resident willingness to pay for those services • Maintaining core services • Funding and implementing a five (5) year capital improvement plan This budget focuses on the next twelve months of the Town's future. However, the Council's initiative to pursue a strategic planning approach to the Town's governance is critical to providing the Council, and the community, with a multi-year focus that couples strategic priority setting with good financial stewardship decisions that achieve the long-term vision set by the Council for Westlake. The vision, values, and mission that that drive this adopted budget are: TRANSMITTAL LETTER VISION STATEMENT Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. VISION POINTS A SENSE OF PLACE Distinctive neighborhoods, architecturally vibrant corporate campuses, grazing longhorns, soaring red-tailed hawks, meandering roads and trails, lined with natural stone and native oaks. WE ARE LEADERS A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. — WE ARE A CARING COMMUNITY Informed residents, small town charm and values, historical preservation. — EXEMPLARY GOVERNANCE Town officials, both elected and appointed, exhibit respect, stewardship, vision, and transparency. SERVICE EXCELLENCE Public service that is responsive and professional, while balancing efficiency, effectiveness and financial stewardship. 9 - COMMUNITY VALUES Innovation Educational Leaders Family Friendly and Welcoming Engaged Citizens Preservation of Our Natural Beauty Strong Aesthetic Standards Transparent Government Fiscal Responsibility MISSION STATEMENT "On behalf of the citizens, the mission of the Town of Westlake is to be a one -of -a -kind community that blends our rural atmosphere with our vibrant culture and metropolitan location." 8 TRANSMITTAL LETTER GUIDEPOSTS ALONG THE WAY: THERE IS STILL WORK TO DO In addition to using our vision, values, and mission statements to guide our budget process, we also utilize our citizens' perceptions of our service quality and the issues facing Westlake to help shape the adopted budget. With that in mind, the following excerpted charts on key points of feedback from this year's DirectionFinders citizens' survey tell us the following: First, how are we doing as a service organization? 01 . Overall Satisfaction With Town Services by Major Category by percentage of respondents who rated the item as a 1 to 5 on a 5 -point scale {excluding don't knowsl Quality of public safety services W estlake's emergency preparedness efforts Effectivene:,s DfTown communication Quality of customer service provided by Town Overall code enforcement Quality of utility services Parks, trails, recreation programs/facilities Maintenance of Town streets 36-6.. 420! 19'f 25/0 49% 21% 31% 41% 19% 10% 239/6 46% 27% 27% 4010 24% L-- %25 251/6 to 38%a 20% 18% 171/. 44% 271/. 1— 1g% 41% 21% 18% 01k 20% 409'0 601/. 80% 1001/6 FE3Very satisfied (5) Satisfied (4) ONeutral (3) o©issatistied (112) .Soarer: FTC h-rirrear f5ir.>:-srrnaFe'ndr-a 1'.2017 W—rL�k x, Tx) Second, what is important to our citizens when it comes to their Town services? Q2. Major Categories of Town Services That Residents Felt Were Most Important by percentage of respondents who selected the item as one of their bop three choices Quality of public safety services Maintenance of Town street, Qudity of utility services Westlake"s emergency preparedness efforts Parks, trails, recreation programslfacilities Effectiveness of Town communication Quality of customer service provided by Town Overall code enforcement 715% 51% 41% 339' 30% 12% 12% i 0% 20/ 40 % 60�/a 'moist Choice 17 -32nd Chace 111111113YdChoice Sor-- ETC I xrh,, - Di-0—FP'—i— (2011 - W—IL ks, TX) 9 SO% TRANSMITTAL LETTER Third, what is the priority order of Town services based on our citizens' importance -satisfaction ratings? Importance -Satisfaction Rating 2011 Town of Westlake Resident Survey Major Categories of Town Services Finally, how do we compare on service satisfaction to previous years' surveys? Trends: Overall Satisfaction With Town Services by Major Category (201 1 vs. 2010 vs. 2009) by percentage of respondents who rated the item as a 4 or 5 on a 5 -point scale (excluding don`t knows) Quality of public safety services Wesllakes emergency preparedness effort -- M ai n tanance fforts Maintenance of the Town park Effectiveness of Town co m m lin icati on Quatity of customer service provided by Town Quality of wastewater utility services Parks, trails, recreation programslfacidues Maintenance of Town streets Town effariv to manage storm water run-off 0% Source: ETC bmeetute DucetionFinder (Jame 2011 Westlake, 7X) 10 w� �! AFibr�, r 789er Ory, ® 1 7% r HL r r Else r Y r 7(W 1 � r 20% 401/6 Bo! 801! 100% X2011 1=2010 ®2009 Mast Most Importance - Important Important Satisfaction Satisfaction Satisfaction IS Rating Category of Service % Rank % Rank Rating Rank Very H01i Pdordy OSr.291 Maintenance of Town streets 51% 2 60% 8 0.2040 1 IfIgh NOW 8S, 101- 201 Qualliy of public safety services 76% 1 78% 1 0.1597 2 Quality of utility services 41% 3 63% 6 0.1537 3 Quellty of parks, trails and facilities 30% 5 61% 7 0.1159 4 14 fUumPtfor7lv11S ,10) Emergency preparedness 33% 4 74% 2 0.0859 5 Quality ofcustomer senAces. 12% 7 69% 4 0,0378 6 Effectiveness of Town commuriiaetion 12% 6 72% 3 0.0342 T Overall code enforcement 9% 8 67% 5 0.0297 0 Finally, how do we compare on service satisfaction to previous years' surveys? Trends: Overall Satisfaction With Town Services by Major Category (201 1 vs. 2010 vs. 2009) by percentage of respondents who rated the item as a 4 or 5 on a 5 -point scale (excluding don`t knows) Quality of public safety services Wesllakes emergency preparedness effort -- M ai n tanance fforts Maintenance of the Town park Effectiveness of Town co m m lin icati on Quatity of customer service provided by Town Quality of wastewater utility services Parks, trails, recreation programslfacidues Maintenance of Town streets Town effariv to manage storm water run-off 0% Source: ETC bmeetute DucetionFinder (Jame 2011 Westlake, 7X) 10 w� �! AFibr�, r 789er Ory, ® 1 7% r HL r r Else r Y r 7(W 1 � r 20% 401/6 Bo! 801! 100% X2011 1=2010 ®2009 TRANSMITTAL LETTER We can see not only what our citizens' priorities are, but how well we are doing. And, we have work to do in 2011-12. While the latest survey results are good, there are some areas we have declined in that we need to address as an organization. This may include obtaining additional, more detailed information in "drill down" surveys on those areas where we have lost ground. Overall, this budget reflects these citizen priorities and perceptions. FY 2011-12 ADOPTED BUDGET IN A FIVE YEAR CONTEXT Evaluating the adopted budget within a forecast context is important as it shows whether we are on the right road financially in FY 2011-12 with the theme of "Investing in Our Future". This excerpt from an updated Five (5) Year Financial Forecast for the Town's General Fund illustrates the improvement trend that can now begin to happen: DESCRIPTION ACTUAL ESTIMATED ADOPTED PROJECTION Beg Fund Balance FY 09-10 $2,675,312 FY 10-11 $3,731,332 FY 11-12 $2,748,308 FY 12-13 $2,526,069 FY 13-14 $2,672,800 FY 14-15 $2,788,586 FY 15-16 $2,631,267 Total Revenues 4,932,215 4,754,320 5,208,978 5,381,697 5,525,787 5,398,572 5,550,434 Total Transfers In 1,439,006 545,383 577,462 604,328 632,955 663,491 Total Expenditures (3,786,136) (4,487,309) (4,809,663) (4,998,283) (5,196,993) i (5,406,542) (5,627,741) Total Transfers Out (90,059) (2,689,040) (1,166,936) (814,145) (817,336) (782,305) (781,727) Net Total 3,731,332 2,748,308 2,526,069 2,672,800 2,788,586 2,631,267 2,435,724 Total Restricted Funds 214,751 415,021 255,079 262,078 267,319 272,666 278,119 Ending Balance (projected) $3,516,581 $2,333,287 $2,270,990 $2,410,723 $2,521,267 $2,358,601 $2,157,605 Operating Days 339 207 168 175 176 161 142 Excerpt from Five Year Forecast (General Fund Section) This budget transmittal message is different than the ones I have written for the two prior fiscal years. While the nation's economy is still suffering, certainly Westlake, like all communities, has challenges ahead. However, with the steps the Town Council courageously took in FY 2010-11, we are in a much better position today than we were twelve months ago at this time in terms of the Town's financial sustainability. It has not only improved our financial position, but most important, it now also gives us the ability to reinvest in our Town's infrastructure and services in a prudent, responsible way that can ensure Westlake's vision to be a unique, one -of -a -kind community with an extraordinary quality of life for the long-term. Even with this improvement in our financial position, the Town staff is acutely aware that the Town of Westlake does not create wealth, but instead only spends public dollars collected on behalf of our citizens. We are stewards. We exist as a municipal corporation for one reason and one reason only: to prioritize and deliver the best services possible with the resources provided to achieve an exceptional quality of life. I would like to, once again, point out what Osborne and Hutchinson observed regarding citizens' view of funding government: TRANSMITTAL LETTER "...they (citizens) want government to provide what only the public sector can provide ... But they want their money's worth. They want value for dollars. When they can't get it, they often opt for tax cuts and private services. When they do get value from public institutions, however, they are often willing to invest in them." This is a challenge the Staff and Town Council takes very seriously, one that we pursue with vigor every day. High commendation is due to the Staff Leadership Team for their work on this adopted budget. The key to our organizational success lies in having an effective Council -Staff team. Additional recognition and thanks are due to Director of Finance Debbie Piper, Management Intern Scott Dixon, and Finance Assistant Jaymi Ford, for their efforts in assembling this budget document. It takes long hours to make this not only a financial document, but a policy document that is easy for our citizens to read and understand. I appreciate their dedication and the effort they have invested in this process. Finally, I also extend thanks and appreciation volunteer hours, invested in governing Westlake critical for our success. Town Staff appreciates behalf of our citizens. Sincerely yours, J�'47 159 to the Westlake Town Council. Your countless to make it the best community we can be, is the leadership and direction you provide us on Thomas E. Brymer Town Manager/Superintendent Westlake Academy Resources Cited Osborne, David, and Hutchinson, Peter, The Price of Government, " Getting the Results We Need in an Age of Permanent Fiscal Crisis, 2004. PROPERTY TAX REVENUE ALLOCATION 2012 Total Certified Values Protested Values Less Properties not under protect or not certified 2011 tax ceilings Total Taxable Value Adopted Tax Rate Per /$100 Valuation Estimated Tax Levy Estimated Percent of Collections Estimated Current Tax Collections TAX RATE DISTRIBUTION GENERAL FUND Current DEBT SERVICE FUND Current Total General & Debt Service Funds Tax Rate per $100 Percent Valuation of Levy $0.13835 88.21% $0.01849 $0.15684 100.00% HISTORICAL TAX INFORMATION AMOUNT $ 797,747,546 (+) 30,218,721 (+) 38,135,329 H 29,930,860 (_) 836,170,736 (x) $ 0.15684 (_) 1,31 1,450 (x) 100% (=) $ 1,31 1,450 Estimated Collections $ 1,156,842 154,608 $ 1,31 1,450 Fiscal Net General Debt Service Total Year Taxable Value Fund Rate Fund Rate Tax Rate 2012 $ 836,170,736 $ 0.1384 $ 0.0185 $ 0.15684 2011 $ 880,672,075 $ 0.1562 $ 0.0039 $ 0.16010 1NCVj44ASFflNjTG INC ()jjjj f4jjFfjjUE WORK IN PROGRESS This section attempts to help explain the meaning behind the numbers which are presented in this budget document. It gives perspective to the Town's budgeting process, basis of budgeting and accounting, how the budget is amended and the fund accounting system. BUDGET OVERVIEW AND FRAMEWORK The Town of Westlake's 2012 fiscal year begins on October 1, 2011 and ends September 30, 2012. It provides the framework to implement the Town's vision, mission and value statements as set out by the Town Council. The Town's annual budget is prepared in the context of a five (5) year financial forecast. The adopted budget is submitted to the Council approximately thirty to forty-five days before the beginning of the fiscal year for their consideration. The Town's budget is allocated by fund. It is designed to provide a clear picture of adopted Town spending, allocation of financial resources, and priorities as well as how they are set to carry out the policy direction of the Council. In addition to a fund format, the budget is the beginning of efforts to show the allocation of the Town's resources in concert with the Town's strategic planning efforts. A "bottom-up" approach is used to solicit input from the staff Leadership Team as to their operations' needs with an emphasis on: • Identifying costs to provide the current level of services. • Identifies additional cost increases needed to maintain the current level of service. • Additional resources necessary to provide new or increased levels of service. • Delineating changes in fund balance levels for each fund. The Town of Westlake staff is pleased to present the 2011-12 annual operating budget, which is the product of many hours of preparation as well as a response to ever-changing internal and external influences. As in previous years, efforts have been made to control expenditures while continuing to deliver an excellent level of service to our citizens. Concentrated efforts have been made to produce a document that clearly illustrates the uses of Town resources in a format that may be utilized as a resource tool by the Town Council, Town staff, and the citizens of Westlake. Our budget preparation process continues to be refined on an annual basis, operating within clearly defined budget preparation guidelines. The following procedures, which are guided by generally accepted budgeting practices, has been established: The annual operating budget presents appropriations of expenditures and estimates of revenues for all local government funds. These revenues include sales and use taxes, ad valorem property tax, citation revenue, franchise taxes, mixed beverage taxes, license and permit fees, development fees, sales of printed material, interest income, water and sewer utility revenue, duct bank leases, and miscellaneous revenues. The annual operating budget illustrates expenditures, anticipated revenues, and the estimated impact on reserves. Budgets for each department are broken down into specific cost components, including payroll/salaries, payroll related & benefits, supplies, services, insurance, repair & maintenance, rent & utilities, economic development incentives, and capital outlay. 4. Revenue projections are prepared for each revenue source based on an analysis of historical revenue trends and current fiscal conditions. The budget process includes a multi-year projection of required capital improvements. 15 BUDGET OVERVIEW AND FRAMEWORK Goals and objectives have been developed for each department and are incorporated into the evaluation of employees and performance of the organization. 7. A budget message summarizing local financial conditions and principal budget issues is presented to the governing council along with the annual budget. The layout and organization of the budget is designed to help the reader locate both financial and non-financial information in a timely fashion. The General Fund is divided into twelve departments. Each department has the following information included: • Description of the fund and it's program's trends, goals, highlights, measures and Vision Point Strategic Plan Impacts • Summary of Employee Staffing and Expenditures • Program budgeting for the Department The Fund Sections are broken down between Special Revenue Funds, Debt Service Fund, Enterprise Funds, Internal Service Funds, and Capital Projects Funds. Each Fund contains the following information: "Fund Overview" describing the function of the fund and explaining the variances between the revenues and expenditures of FY 2010-11 and FY 2011-12 "Program Summary" of revenues and expenditures. Also included are sections detailing the Capital Improvement Plan and Long -Term Planning. The final four components include a Program Budgeting section, Community Profile, excerpts from Westlake Academy FY 2011-12 adopted budget and an Appendix section. The Community Profile contains historical and current information regarding the Town of Westlake. The Program Budgeting Measures section includes a summary of what the Town is trying to achieve along with detailed program costs, goals and objectives of each program identified by the Town's leadership team. The appendices section consists of a Glossary of Budget Terms, the Town's Fiscal and Budgetary Policy, Investment Policy, and the Town ordinance related to the adoption of the budget. The budget contains financial data spanning two fiscal years. The current budget year ending September 30, 2011 is presented in its original adopted form, as well as an amended estimate. Actual totals for the fiscal year ending September 30, 2010 are also presented for comparison. BASIS OF ACCOUNTING/BUDGETING The accounts of the Town are organized on the basis of funds, each of which is considered to be a separate accounting entity. All governmental fund types are budgeted and accounted for on a Generally Accepted Accounting Practice (GAAP) basis for financial statement presentations. The Governmental Fund types use a financial resources measurement focus and utilize the modified accrual basis for accounting and budgeting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, meaning that it is measurable and available. Available revenues are defined as those funds that are collectable within the current period, or collectable within a timeframe to pay liabilities of the current period. Expenditures generally represent a decrease in net BUDGET OVERVIEW AND FRAMEWORK financial resources and are recorded when a measurable fund liability is incurred. In some instances, such as the incurrence of long-term debt, expenditures related to interest on the debt is recorded in the period that it is due. The Proprietary Fund types are accounted and budgeted for on a cost of services, or "Capital Maintenance" measurement focus using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recognized when incurred. For purposes of this budget presentation, depreciation is not displayed and capital expenditures and bond principal payments are shown as uses of funds. Governmental Fund Types Governmental fund types are those through which most governmental functions of the Town are financed. The acquisition, use, and balances of the Town's expendable financial resources and the related liabilities (except those accounted for in the Proprietary and Fiduciary Fund types) are accounted for through Governmental Fund types. Descriptions of each fund contained in the Town's budget are as follows: The General Fund is the general operating fund of the Town. It is used to account for all Town revenues and expenditures except those required to be accounted for in other funds. Major functions financed by the General Fund include Administration, Building & Code Compliance, Fire/EMS, Public Works, Facilities/Grounds Maintenance, Finance and Human Resources, Parks and Recreation, Information Technology, and Engineering. Sources of revenue include sales and use taxes, development fees and permits, court revenue, and franchise taxes. 2. Westlake's Visitors Association Fund receives its primary funding from a 7% hotel occupancy tax adopted by the Town of Westlake in FY 1999-2000. Proceeds from the hotel occupancy tax are required to be used in accordance with statutory parameters including the promotion of travel and tourism in the Town of Westlake. 3. The Economic Development Fund was set up to maintain all receipts and disbursements of agreements between the Town and various corporations for economic development. There was confusion regarding the additional revenues being recorded in the General Fund and offset by expenditures. These balances offset to zero but skewed the analysis of each. The Town is hoping this fund will create more transparency to the public regarding these receipts and payments. 4. The 4B Economic Development Corporation Fund is a local option established under the Texas local government code. 4B funds are generated from a '/2 cent sales tax levy and proceeds are used for debt service. 5. The Westlake Property Tax Reduction Sales Tax Fund formerly received its funding from a '/2 cent sales tax levy that was formerly earmarked for the 4A Economic Development Corporation. The purpose of this fund was to reduce local property tax rates throughout Texas by providing cities with an additional unrestricted revenue source. These funds may be used for general Town expenditures, capital projects, or debt service. This fund was closed at year-end of fiscal year 2010-2011 and will now be recorded in the General Fund. BUDGET OVERVIEW AND FRAMEWORK The Lone Star Public Facilities Corporation was founded in 1996 and was designed "to provide for the acquisition, construction, rehabilitation, repair, equipping, furnishing and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing costs." The ideas was to "acquire, through the issuance of installment sale obligations, office buildings located within the State of Texas but outside the boundaries of Westlake, whose tenants will be limited to those entities which are qualifying tenants under applicable federal income tax law so that the interest payable with respect to the installment sale obligations will be exempt from federal income taxation." There has been no activity in the fund for several years. The Debt Service Fund is established to account for, and the payment of, general long-term debt principal and interest. This fund provides a clearer accounting of ongoing debt obligations compared to operating budgets. The Debt Service Fund is used to make scheduled payments for all bond issues associated with the building of the Civic Campus as well as a partial refunding of the 2002 series and various street/trail projects. 8. The Capital Projects Fund tracks the infrastructure and building projects (other than those financed by proprietary fund types), funded with general operating transfers, intergovernmental revenue, bond funds and other special funding methods. Capital expenditures are clearly identified by their respective funding sources, and projects are shown in a clear, concise format. 9. The Arts & Sciences Center Fund tracks the monies related to the new building to be located on the Westlake Academy Civic Campus. Construction of the building was completed in FY 09/10 and the fund has been closed. Proprietary Fund Types Proprietary fund types operate in a manner similar to private business utilizing an accrual basis of accounting. Enterprise Funds Account for operations of governmental facilities operated in a manner similar to commercial enterprises where the intent is to recover, in whole or in part, the costs and expenses of providing goods and services to the public. Revenues are typically generated through usage fees based on individual demands of each customer. Enterprise funds may be used when the governing body has determined that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Cemetery Fund includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road which was acquired during the year ended September 2008. The Utility Fund accounts for water, wastewater and telecommunications conveyance (duct bank) services for the residents of the Town. All activities necessary to provide such services are accounted for in the Fund, including administration, operations, maintenance, financing and related debt service, and billing and collection. Additionally, the Town collects monthly solid collection fees in this fund which are paid to the Town's solid waste franchisee. BUDGET OVERVIEW AND FRAMEWORK Internal Service Funds Accounts for services and/or commodities furnished by a designated program to other programs within the Town. Funds include the following: 1. The Vehicle & Equipment Replacement Fund (V&E) formerly provided a mechanism for long-term repair and replacement of vehicles and equipment. The V&E Fund receives planned portions of revenue from the General Fund to set aside for future vehicle and equipment repairs and replacement. This fund has been closed and the remaining fund balance has been transferred to General - Maintenance & Replacement Fund. 2. The General Maintenance & Replacement Fund (GMR) is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use. Contributions from the Town's General Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. 3. The Utility Maintenance & Replacement Fund (UMR) is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use. Contributions from the Town's Utility Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. 19 O a EU U U_ O .� UN U O N .O 00 07 N O } •� O) a O� U N U O Q U = U O O •� N o f C 3 O N w �' U c Q D 6 C d O U O U o a� s= Q p o ~ ~ E Q = 06 o U General Fund ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 413 Economic Development ✓ Visitors Association ✓ ✓ ✓ ✓ ✓ Cemetery Fund Lone Star Public Facilities ✓ Debt Service ✓ Utility Fund ✓ ✓ ✓ ✓ Utility - Maint. & Replacement ✓ General - Maint & Replacement ✓ ✓ ✓ Capital Projects ✓ ✓ 19 BUDGET OVERVIEW AND FRAMEWORK THE BUDGET PROCESS The Town Manager submits the budget to the Town Council. The Town's fiscal year begins each year on October 15' and ends on September 30th of the following calendar year. Prior to the beginning of the fiscal year, the Town Manager must submit a proposed budget, which includes: • A budget message • A consolidation statement of anticipated revenues and proposed expenditures for all funds • General fund resources in detail • Special fund resources in detail • A summary of proposed expenditures by department and activity • Detailed estimates of expenditures shown separately to support the proposed expenditure • A description of all bond issues outstanding • A schedule of the principal and interest payments of each bond issue The proposed revenues and expenditures must be compared to prior year revenues and expenditures. The budget preparation process begins early in the calendar year with the establishment of overall town goals, objectives, and analysis of current year operations compared to expenditures. Budget policies and procedures are reviewed at the same time to reduce errors and omissions. In May, the Finance Department prepares such items as budget forms and instructions for estimating revenues and expenditures. Department heads submit proposed baseline expenditures for current service levels and any additional one-time or on- going request they may have for their department. Meetings are subsequently held with the Town Manager, the Finance Director and each department head. After all funding levels are established and agreed upon; the proposed budget is presented by the Town Manager to the Town Council. A public hearing on the budget is conducted in accordance with state and local law. This meeting is held after the Council has reviewed the budget during a workshop. The Town Council approves a level of expenditure (or appropriation) for each fund to go into effect on October 1 st, prior to the expenditure of any Town funds for that budget year. BUDGET AMENDMENT PROCESS The Town Manager may request that the current year budget be amended. In this process, the Town Manager will review the documentation and draft an ordinance to formally amend the current budget. This ordinance is presented to the Town Council for consideration. Following the consideration of the proposed amendment, the Town Council will vote on the amendment ordinance. If the amendment is approved, the necessary budget changes are then made. All budget amendments will be approved by the Town Council prior to the expenditure of funds in excess of the previously authorized budgeted amounts within each department. BUDGET OVERVIEW AND FRAMEWORK FINANCIAL POLICIES The Town of Westlake is committed to financial management through integrity, prudent stewardship, planning, accountability, full disclosure and communication. The broad purpose of the Fiscal and Budgetary Policy is to enable the Town to achieve and maintain a long-term stable financial position and provide guidelines for the day-to-day planning and operations of the Town's financial affairs. The Town Council annually reviews and approves these policies as part of the budget preparation process. A copy of these Policies can be found in the "Appendix" section of this budget. INV141ASIL"rING I1C% 01J11 Y1JFrijUll WORK IM PROGRESS I IIID Jl-1-1 -1 51 Yt-J -ll- 1\-U<Al-1 - 1111) -5- document an analysis of the amounts between the adopted budget for FY 2010/2011 and the estimated budget for the same year, as well as the variance explanations between the FY 2010/2011 estimated budget and the FY 2011/2012. Also several different tables are presented of all fund revenues, expenditures and fund balance amounts. THREE YEAR ANALYSIS COMPARISON REVENUES, EXPENDITURES, FUND BALANCE ALL SOURCES FISCAL YEAR 2011/2012 Description REVENUES & OTHER SOURCES General Sales Tax Property Tax Beverage Tax Franchise Fees Permits & Fees Fines & Forfeits Investment Earnings Misc Income Charge for Services Hotel Tax Revenues Contributions Academy Total Revenues Transfers In Other Sources WA -Other Sources Increase/(Decrease) FY 09/10 FY 10/11 FY 11/12 FY 11/12 vs FY 10/11 Actual Estimated Adopted Amount Percent 3,790,533 4,142,000 2,900,000 (1,242,000) -30% - 1,360,704 1,31 1,450 (49,254) -4% 17,902 17,750 17,750 0% 603,233 583,650 582,550 (1,100) 0% 1,738,536 473,150 472,090 (1,060) 0% 647,171 598,990 536,611 (62,379) -10% 45,806 57,137 56,790 (347) -1% 193,082 198,809 152,475 (46,334) -23% 2,107,664 2,512,266 2,644,166 131,900 5% 457,693 515,000 535,000 20,000 4% 679,059 327,300 302,900 (24,400) -7% 1,704,575 6,968,577 2,662,465 - 2,118,000 - Total Other Sources 1,704,575 9,740,619 2,699,432 Total Revenues and $ 16,265,977 $ 25,117,478 $ 17,455,282 Other Sources (4,306,112) (2,118,000) (617,075) -62% -100% -94% (7,041,187) -72% $ (7,662,196) -31% EXPENDITURES & OTHER USES Payroll/Salaries 1,777,560 1,880,738 1,993,764 113,026 6% Payroll Related 484,994 610,156 633,278 23,122 4% Supplies 127,438 180,551 194,841 14,290 8% Service 2,633,510 3,086,946 3,171,913 84,967 3% Insurance 31,596 31,419 30,649 (770) -2% Maintenance 234,977 254,819 256,979 2,160 1% Rent & Utilities 352,966 397,829 397,329 (500) 0% ED Incentives 333,830 580,768 185,758 (395,010) -68% Capital Outlay 148,502 146,822 210,000 63,178 43% Capital Projects 729,495 1,444,034 3,100,868 1,656,834 115% Debt 1,607,518 1,891,456 1,872,506 (18,950) -1% Academy 3,917,886 4,610,062 5,334,445 724,383 16% Total Expenditures 12,380,271 15,115,600 17,382,330 2,266,730 15% Transfers Out 1,704,575 7,048,836 2,661,794 (4,387,042) -62% Other Uses - - - 0% WA -Other Uses 100,000 641,354 49,807 (591,547) -92% Total Other Uses 1,804,575 7,690,190 2,711,601 (4,978,589) -65% $ 20,093,931 $ (2,711,859) -12% Total Expenditures $ 14,184,847 $ 22,805,790 and Other Uses $ 2.081,130 $ 2,311,688 $ (2,638,649) $ (4,950,337) 214% Excess Revenues Over (Under) Expenditures BEGINNING FUND BALANCE $ 7,948,415 $ 10,029,545 $ 12,341,234 $ 2,311,689 23% ENDING FUND BALANCE $ 10,029,545 $ 12,341,234 $ 9,702,585 $(2,638,648) -21% 23 ADOPTED FUND BALANCES ALL SOURCES FISCAL YEAR 2011/2012 TOTAL $12,341,234 $14,755,850 $2,699,432 $17,455,282 $17,382,330 $2,711,601 $20,093,931 $ (2,638,649) $9,702,585 100% $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Beginning Fund Balance Revenues & Other Expenses & Other Ending Fund Balance Financing Sources Financing Uses 24 Projected Projected Beginning Ending % Fund Balance Adopted FY 2011/2012 Adopted FY 2011/2012 Net Fund Balance of all Fund Name 10/1/2011 Revenues UTher5ources Total Expenditures Other Uses Total Change 9/30/2012 Funds General $ 2,748,308 $ 5,208,978 $ 545,383 $ 5,754,361 $ 4,809,663 $ 1,166,936 $ 5,976,599 $ (222,238) $ 2,526,069 26% Fund Westlake 760,220 5,244,068 36,967 5,281,035 5,334,445 49,807 5,384,252 (103,217) 657,003 7% Academy 4B Economic 318,096 688,000 - 688,000 - 717,730 717,730 (29,730) 288,366 3% Development Economic - 150,000 35,758 185,758 185,758 - 185,758 - 0% Development Visitors 1,036,799 557,175 - 557,175 221,102 445,434 666,536 (109,361) 927,438 10% Association Lone 13,628 30 - 30 - - - 30 13,658 0% Star Debt - 154,708 1,501,324 1,656,032 1,656,032 1,656,032 - - 07. Service Capital Projects 4,638,409 27,800 - 27,800 2,047,545 2,047,545 (2,019,745) 2,618,664 27% Utility 1,982,463 2,721,266 2,721,266 2,672,965 331,694 3,004,659 (283,393) 1,699,070 18% Fund Cemetery 148,549 3,475 3,475 5,100 - 5,100 (1,625) 146,924 2% Fund Utility-Maint. & 42,628 100 50,000 50,100 31,200 31,200 18,900 61,528 1% Replacement General- Maint. & Replacement 652,134 250 530,000 530,250 418,520 418,520 111,730 763,864 8% TOTAL $12,341,234 $14,755,850 $2,699,432 $17,455,282 $17,382,330 $2,711,601 $20,093,931 $ (2,638,649) $9,702,585 100% $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Beginning Fund Balance Revenues & Other Expenses & Other Ending Fund Balance Financing Sources Financing Uses 24 ALL FUNDS OVERVIEW FY 2011/2012 FUND BALANCE COMPARISON • FY 09/10 actual vs. FY 10/1 1 estimated o The September 30, 2011 estimated ending fund balance totals $12,341,234; • a 23% increase of $2,311,689 from the September 30, 2010 actual ending fund balance of $10,029,545 Fund Balance FY09/10 Actual vs FY10111 Estimate FY 09/10 FY 10/11 Variance Variance Fund Name Actual Estimated Amount Percent %of Total General Fund 3,731,332 2,748,308 (983,024) -26% -43% Westlake Academy 767,489 760,220 (7,269) 0% 0% 46 Economic Development 297,308 318,096 20,788 7% 1% Visitors Association 1,100,941 1,036,799 (64,142) -6% -3% Cemetery 141,149 148,549 7,400 5% 0% Vehicle/Equipment 57,256 0 (57,256) -100% -2% Property Tax Reduction 1,569,749 0 (1,569,749) -100% -68% Capital Projects 220,279 4,638,409 4,418,130 2006% 191% Arts & Sciences 16,896 0 (16,896) -100% -1% Lone Star 13,598 13,628 30 0% 0% Utility Fund 2,009,366 1,982,463 (26,903) -1% -1% Utility - Maint & Replacement 42,528 42,628 100 0% 0% General - Maint. & Replacement 61,654 652,134 590,480 958% 26% TOTAL $ 10,029,545 $ 12,341,234 $ 2,311,689 23% 100% The primary sources of this increase are noted below by fund: Capital Projects Fund • Fund balance increased $4,418,130 o Transfers In from General Fund increased by $2,035,700 o Transfers In from Property Tax Reduction Fund increased by $1,160,000 o Bond Proceeds of $2,095,000 for streets, drainage, and streetscape and trail projects to be completed over the next two years were received; these funds were previously unbudgeted as the sale of bonds had not been approved when FY 09/10 began. o Capital Project expenditures increased by $878,274 upon approval of the 5 year CIP Property Tax Reduction Fund • Fund balance decreased $1,569,749 o Represents transfers to the Debt Service Fund, Capital Projects Fund and to the General Fund at FY10/1 1 year end to close the fund. General Fund • Fund balance decreased $983,024 o Transfers Out to Capital Projects increased by $2,035,700 o Payroll salaries and benefits increased by $430,982 o Transfers In from Property Tax Reduction Fund increased from $0 to $899,270 o Permits & Fees decreased by $1,357,433 due to Deloitte fees in FY 09/10 o Property tax was implemented increasing revenues by $1,205,323 25 ALL FUNDS OVERVIEW • FY 10/11 estimated vs. FY 11/12 Adopted o The September 30, 2012 adopted ending fund balance totals $9,701,914; ■ a 21% decrease of $2,639,320 from the September 30, 2011 estimated ending fund balance of $12,341,234 Fund Balance FY10111 Estimate vs FY11112 Adopted FY 10/11 FY 11/12 Variance Variance Fund Name Estimated Adopted %of al Amount Percent %cfTotal General Fund 2,748,308 2,526,069 26% (222,238) -8% 8% Westlake Academy 760,220 657,003 7% (103,217) -14% 4% 46 Economic Development 318,096 288,366 3% (29,730) -9% 1% Visitors Association 1,036,799 927,438 10% (109,361) -11% 4% Cemetery 148,549 146,924 2% (1,625) -1% 0% Capital Projects 4,638,409 2,618,664 27% (2,019,745) -44% 77% Lone Star 13,628 13,658 0% 30 0% 0% Utility Fund 1,982,463 1,699,070 18% (283,393) -14% 11% Utility- Maint & Replacement 42,628 61,528 1% 18,900 44% -1% General - Maint. & Replacement 652,134 763,864 8% 111,730 17% -4% TOTAL $ 12,341,234 $ 9,702,585 100% $ (2,638,649) -21% 100% The primary sources for this decrease are indicated below by Fund: Capital Projects Fund • Fund balance decreased $2,019,745 o Capital Projects expenditures totaled $2,032,545 o There were no transfers in from the General Fund, PTR Fund or proceeds from the sale of bonds to offset these expenditures Utility Fund • Fund balance decreased $283,393 o Overall revenues increased $36,500 o Capital Projects expenses increased by $250,384 o Repair & maintenance expenses increased by $20,000 o Expenses related to services increased by $76,000 General Fund • Fund balance decreased $222,238 o Indirect contributions increased $302,900 o Transfers Out to Debt Service increased $601,178 26 ADOPTED REVENUES AND OTHER FINANCING SOURCES ALL SOURCES FISCAL YEAR 2011 /2012 337 GF WA 4B ED VA CF DS CP LS OF UMR GMR 100 199 200 210 220 255 300 410 418 500 510 600 100% TOTAL Sales Tax $ 2,062,500 $ $ 687,500 $ 150,000 $ $ - $ - $ $ - $ $ $ $ 2,900,000 20% Property Tax 1,156,842 - - - - - 154,608 - - - - - 1,311,450 97. Beverage Tax 17,750 - - - - - - - - - - - 17,750 0% Franchise Fees 582,550 - - - - - - - - - - - 582,550 4% Permits/Fees 472;090 - - - - - - - - - - - 472,090 3% Fines/Forfeits 536,611 - - - - - - - - - - - 536,611 47 Interest 15,035 500 2,900 75 100 27,800 30 10,000 100 250 56,790 0% Contributions 302,900 - - - - - - - - - 302,900 2% Misc Income 62,700 - - - 19,275 - - - - 70,500 - - 152,475 1% Chg for Services - - - - 0 3,400 - - - 2,640,766 - - 2,644,166 18% Hotel Tax - - - - 535,000 - - - - - - - 535,000 4% Academy - 5,244,068 - - - - - - - - - - 5,244,068 36% Total Revenues $ 5,208,978 $ 5,244,068 $ 688,000 $ 150,000 $ 557,175 $ 3,475 $ 154,708 $ 27,800 $ 30 $ 2,721,266 $ 100 $ 250 $ 14,755,850 100% Transfers in 545,383 - - 35,758 - - 1,501,324 - - - 50,000 530,000 2,662,465 Other Sources - 36,967 - - - - - - - - - - 36,967 Total All Funds $ 5,754,361 $ 5,281,035 $ 688,000 $ 185,758 I $ 557,175 $ 3,475 $ 1,656,032 $ 27,800 $ 30 $ 2,721,266 $ 50,100 $ 530,250 $ 17,455,282 IS Hotel Tax 17 0 3% ■ Franchise Fees 3% IN Permits/Fees 3% Fines/Forfeits 3% cations 27 Y GMR 3% ALL FUNDS OVERVIEW FY 2011/2012 REVENUES AND OTHER FINANCING SOURCES Comparing the FY 10/1 1 estimated revenues to FY 1 1/12 adopted revenues: • Total Town revenues (all funding sources) are budgeted at $17,455,282 • 31%decrease of $(7,662,195) from the FY 10/11 estimate Revenues and Other Financing Sources The primary source is: • a decrease of $5,460,950 in the Capital Projects Fund • a decrease of $1,063,820 in the Property Tax Reduction Fund • a decrease of $438,965 in the General Fund Capital Projects Fund • Transfers in from General Fund decreased by $2,085,000 • Transfers in from the PTR Fund decreased by $1,205,000 • Bond Proceeds decreased by $2,095,000 Property Tax Reduction Fund • Fund balance was transferred to the General Fund at FY10/1 1 year end. General Fund • Transfer in from Utility Fund - Impact Fees were reduced by $103K due to the loss of one- time revenue from the Deloitte project • One-time revenues of $175K received in FY 10/11 for Tree Reforestation • One-time sales tax revenues reduced by $191,000 FY 10/11 FY 11/12 %of Variance Fund Name Estimated Adopted Total Amount Percent 100 General Fund $ 6,193,326 $ 5,754,361 33% $ (438,965) -7% 199 Westlake Academy 5,244,146 5,281,035 30% 36,889 1% 200 413 Economic Development 1,049,750 688,000 4% (361,750) -34% 210 Economic Development 580,768 185,758 1% (395,010) -68% 220 Visitors Association 537,175 557,175 3% 20,000 4% 252 FM1938 1,875 - 0% (1,875) -100% 255 Cemetery 13,600 3,475 0% (10,125) -74% 257 Vehicle/Equipment 86,607 - 0% (86,607) -100% 260 Property Tax Reduction 1,063,820 - 0% (1,063,820) -100% 300 Debt Service 1,530,744 1,656,032 9% 125,288 8% 410 Capital Projects 5,488,750 27,800 0% (5,460,950) -99% 418 Lone Star 30 30 0% - 0% 500 Utility Fund 2,684,766 2,721,266 16% 36,500 1% 510 Utility - Maint. & Replacement 100 50,100 0% 50,000 50000% 600 General - Maint. & Replacement 642,020 530,250 3% (111,770) -17% TOTAL $ 25,117,478 $ 17,455,282 100% $ (7,662,195) -31% The primary source is: • a decrease of $5,460,950 in the Capital Projects Fund • a decrease of $1,063,820 in the Property Tax Reduction Fund • a decrease of $438,965 in the General Fund Capital Projects Fund • Transfers in from General Fund decreased by $2,085,000 • Transfers in from the PTR Fund decreased by $1,205,000 • Bond Proceeds decreased by $2,095,000 Property Tax Reduction Fund • Fund balance was transferred to the General Fund at FY10/1 1 year end. General Fund • Transfer in from Utility Fund - Impact Fees were reduced by $103K due to the loss of one- time revenue from the Deloitte project • One-time revenues of $175K received in FY 10/11 for Tree Reforestation • One-time sales tax revenues reduced by $191,000 ALL FUNDS OVERVIEW • Sales tax increased by $675K due to changes in bookkeeping: revenues that were previously recorded in the Property Tax Reduction Fund are now recorded in the General Fund • Indirect contribution from Westlake Academy increased by $302,900 (no contribution in prior years) • The expenditures related to the new department of Communications and Community Affairs increased the transfer in from Visitors Association by approximately $88K Largest Revenue Streams 1. General Fund 33% o 36% - General Sales Tax - $2,062,500 o 20% -Property Tax - $1,156,842 o 10% - Franchise Fees $ 582,550 0 9% - Fines & Forfeits - $ 536,611 0 8% - Permits & Fees - $ 472.090 2. Westlake Academy 30% 0 85% -State Revenues - $4,490,086 0 14% - Local Revenues - $ 753,982 3. Utility Fund 16% 0 74% -Water Revenue - $2,011,000 0 19% -Sewer Revenue - $ 528,600 ADOPTED EXPENDITURES AND OTHER OPERATING USES ALL SOURCES FISCAL YEAR 2011/2012 30% 27% 4% 1% 3% 07. 8% 10% 15% 0% 2% 100% GF WA 4B ED VA CF DS CP OF UM GM 100 199 200 210 220 255 300 410 500 510 600 TOTAL Payroll Salaries $ 1,993,764 $ $ $ - $ $ - $ $ $ $ - $ $ 1,993,764 117o Payroll Related 633,278 633,278 4% Supplies 150,991 36,850 7,000 194,841 1% Services 1,451,470 150,075 3,100 2,925 1,564,344 3,171,913 187o Insurance 24,822 - - - 5,827 30,649 0% Repair & Maint 113,479 - - 2,000 141,500 256,979 1% Rent/Utilities 251,860 34,177 - 111,292 397,329 2% ED Incentives - 185,758 - - 185,758 1% Capital Outlay 190,000 - 20,000 210,000 1% Capital Projects - 2,047,545 603,603 31,200 418,520 3,100,868 18% Debt 1,653,107 - 219,399 1,872,506 11% Academy 5,334,446 - - 5,334,446 31% Total Expenditures $4,809,663 $5,334,446 $0 $185,758 $221,102 $5,100 $1,656,032 $2,047,545 $2,672,965 $31,200 $418,520 $17,382,331 100% Transfers Out 1,166,936 - 717,730 445,434 - 331,694 - - 2,661,794 Other Uses - 49,807 - - - - - - 49,807 Total All Funds $5,976,599 $5,384,253 $717,730 $185,758 $666,536 $5,100 $1,656,032 $2,047,545 $3,004,659 $31,200 $418,520 $20,093,932 ■ Pavroll Related Yo Supplies 1% Rent/Utilities 2% 30 1, GIM 2% ALL FUNDS OVERVIEW FY 2011/2012 EXPENDITURES AND OTHER OPERATING USES Comparing the FY 10/11 estimated expenditures to FY 1 1 /12 adopted expenditures; • Total Town expenditures (all funding uses) are budgeted at $20,093,931 • 12% decrease of $(2,711,859) from FY 10/11 estimated expenditures Expenditures and Other Operating Uses The primary source is: • a decrease of $2,633,569 in the Property Tax Reduction Fund • a decrease of $1,199,750 in the General Fund • a decrease of $395,010 in the Economic Development Fund • a decrease of $311,232 in the 4B Economic Development Fund • an increase of $976,925 for projected capital projects • an increase of $292,990 primarily due to projected capital projects in Utility Fund • an increase of $366,980 due to anticipated expenditures related to General maintenance and replacement Property Tax Reduction Fund • Fund balance was transferred to the General Fund at FY10/1 1 year-end. General Fund • Transfers Out to Capital Projects decreased by $2,085,000 Economic Development Fund • Construction phase of Deloitte University has been completed; therefore, the economic development amounts will be reduced FY 10/11 FY 11/12 % of Variance Fund Name Estimated Adopted Total Amount Percent 100 General Fund $ 7,176,349 5,976,599 30% (1,199,750) -17% 199 Westlake Academy 5,251,416 5,384,252 27% 132,836 3% 200 4B Economic Development 1,028,962 717,730 4% (311,232) -30% 210 Economic Development 580,768 185,758 1% (395,010) -68% 220 Visitors Association 601,317 666,536 3% 65,219 11% 252 FM1938 1,875 - 0% (1,875) -100% 255 Cemetery 6,200 5,100 0% (1,100) -18% 257 Vehicle/Equipment 143,863 - 0% (143,863) -100% 260 Property Tax Reduction 2,633,569 - 0% (2,633,569) -100% 300 Debt Service 1,530,744 1,656,032 8% 125,288 8% 410 Capital Projects 1,070,620 2,047,545 10% 976,925 91% 411 Arts & Sciences 16,898 - 0% (16,898) -100% 418 Lone Star - - 0% - 0% 500 Utility Fund 2,711,669 3,004,659 15% 292,990 11% 510 Utility-Maint. & Replacement - 31,200 0% 31,200 100% 600 General- Maint. & Replacement 51,540 418,520 2% 366,980 712% TOTAL $ 22,805,790 $ 20,093,931 $ (2,711,859) -12% The primary source is: • a decrease of $2,633,569 in the Property Tax Reduction Fund • a decrease of $1,199,750 in the General Fund • a decrease of $395,010 in the Economic Development Fund • a decrease of $311,232 in the 4B Economic Development Fund • an increase of $976,925 for projected capital projects • an increase of $292,990 primarily due to projected capital projects in Utility Fund • an increase of $366,980 due to anticipated expenditures related to General maintenance and replacement Property Tax Reduction Fund • Fund balance was transferred to the General Fund at FY10/1 1 year-end. General Fund • Transfers Out to Capital Projects decreased by $2,085,000 Economic Development Fund • Construction phase of Deloitte University has been completed; therefore, the economic development amounts will be reduced ALL FUNDS OVERVIEW 4B Economic Development Fund • Transfers out to Debt Service Fund decreased by $311,232 due to the reduction of one- time sales tax revenues Largest expenditures types include: 1. General Fund 30% 0 440 - Payroll and Related Taxes - $2,627,042 0 24% - Service Expenditures - $1,451,470 o 20% - Transfers Out - $1,166,936 2. Utility Fund 15% 0 520 - Service Expenditures - $1,564,344 0 20% - Capital Projects - $ 603,603 0 11 % - Transfers Out - $ 331,694 3. Capital Projects Fund 10% 0 57% - FM 1938 Town Improvements Project - $1,155,155 0 24%- Stagecoach Hills Reconstruction & Drainage - $ 496,000 This page is intentionally blank 33 INV141ASIL"rING Ilc% 01jil Y1JFrijUl.A WORK IM PROGRESS T Westlake Town Town Texas Student Academy Manager Attorney Housing Asst to the Town Intern Executive Manager 75% 75% Director Town Secretary Communications Planning & Public Works Development Administrative Clerk 33% Technician Facilities Maintenance Z Administrative Clerk 33% Information Technology 50% Academy Technician 25% Fire Chief 2 Lieutenants 6 Firefighter Paramedics Finance Finance Assistant 14 Finance Clerk Parks & Recreation Z Academy Technician 25% Human Resources 50% T Administrative Clerk 33% 25% Court Administrator Supervisor Judge Marshal Deputy Clerk — Part Time Clerk 35 Position Summary FY 2011/2012 Position FY 04/05 Actual FY 05/06 Actual FY 06/07 Actual FY 07/08 Actual FY 08/09 Actual FY 09/10 Actual FY 10/11 Estimated FY 11/12 Adopted change Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 Assistant to the Town Manager 0.00 0.00 0.00 1.00 1.00 1.00 1.00 0.75 (0.25) Part -Time Clerk 0.00 0.00 0.00 0.00 0.25 0.00 0.00 0.00 Part -Time Intern 0.50 0.50 0.00 0.00 0.50 0.50 0.75 0.75 - Utility & Building Technician 0.00 0.00 0.00 0.50 0.50 0.50 0.50 1.00 0.50 Planning & Development Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Part -Time Clerk 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 - Administrative Clerk 0.00 0.00 0.00 0.00 0.00 0.33 0.33 0.33 (0.25) Part -Time Clerk 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 Town Secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Fire/EMS Coordinator 1.00 1.00 1.00 1.00 0.00 0.00 0.00 0.00 Fire Chief 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Lt. Firemen/Paramedics 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Firemen/Paramedics 7.00 8.00 8.00 8.00 7.00 6.00 6.00 6.00 Parks & Recreation Director 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Court Administrator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.25 (0.75) Supervisor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 Deputy Clerk (1) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 (1.00) Deputy Clerk (2) 0.75 0.75 1.00 1.00 1.00 1.00 1.00 1.00 0.50 Judge 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 Marshal 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 Warrant Officer 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 Part -Time Clerk 0.00 0.00 0.00 0.00 0.25 0.50 0.50 0.50 Public Works Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - Utility & Building Technician 0.00 0.00 0.00 0.50 0.50 0.50 0.50 1.00 0.50 Facilities Maintenance Director 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 - Utility & Building Technician 0.00 0.00 0.00 0.25 0.25 0.25 0.25 0.00 (0.25) Part -Time Clerk 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 Administrative Clerk 0.00 0.00 0.00 0.00 0.00 0.33 0.33 0.33 Finance Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Finance Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Records & Revenue Clerk 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 Parks & Recreation Director 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Utility & Building Technician 0.00 0.00 0.00 0.25 0.25 0.25 0.25 0.00 (0.25) Westlake Academy Technician 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.25 Information Technology Director 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.50 Westlake Academy Technician 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.25 Human Resources Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.50 (0.50) Part -Time Clerk 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 Administrative Clerk 0.00 0.00 0.00 0.00 0.00 0.33 0.33 0.33 Marketing Director 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 - Communications Director 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 TOM own 27.E 36 FY 2011/2012 BUDGET SUMMARY PERSONNEL SUMMARY Overall staffing for the Town will increase by .50 FTE. Dept # Department Name Total Percent 1 1 Town Manager 2.50 9% 12 Planning & Development 1.33 5% 13 Town Secretary 1.00 4% 14 Emergency Services 9.00 320 15 Municipal Court 4.75 17% 16 Public Works 2.00 7% 17 Facilities Maintenance 0.83 3% 18 Finance Dept 3.00 11% 19 Park & Recreation 0.75 3% 20 Information Technology 0.75 3% 21 Human Resources 0.83 3% 22 Communications 1.00 4% Total Employees 27.75 100% N Human Resources, 0 Communications, 0.83 1.00 0 Information Technology, ■ Town Manager, 0.75 2.25 J Parks & Recreation, 0.50 ■ Planning & Development, 1.33 V Finance Dept, 3.00 0 Town Secretary, 1.00 Facilities Maintenance, 0.83 ■ Public Works, 2.00 ■ Emergency o Municipal Court, Services,9 4.75 .00 lNCVj41jSrrjlj%TG INC 01jil FiJ'1'[11i1: WORK IN PROGRESS ' .F AFAF A` AFffAFc'AVArA7AFAF AVAFO AAFAr-a General Fund Program Summary Fiscal Year 2011/2012 REVENUES & OTHER SOURCES 2,675,312 Adopted Estimated Adopted General Sales Tax On-going Actual Budget Budget Budget General Sales Tax One-time FY 09/10 FY 10/11 FY 10/11 FY 11/12 REVENUES & OTHER SOURCES 2,675,312 3,731,332 3,731,332 2,748,308 General Sales Tax On-going 1,597,195 1,200,000 1,275,000 1,337,500 General Sales Tax One-time - 50,000 223,500 37,500 General Sales Tax PTR Allocation 239,911 - - 687,500 Property Tax - 1,000,430 1,327,901 1,156,842 Contributions 89,097 10,000 175,000 - Contributions Indirect from Academy 100,000 - - 302,900 Beverage Tax 17,902 17,750 17,750 17,750 Franchise Fees 603,233 612,000 583,650 582,550 Permits & Fees 1,738,536 358,055 463,150 472,090 Fines & Forfeitures 647,171 550,190 598,990 536,611 Investment Earnings 24,166 9,235 9,345 15,035 Misc Income 114,915 80,767 80,034 1 62,700 Total Revenues 4,932,215 3,888,427 4,754,320 5,208,978 Transfers In from OF - Impact Fees - 18,000 133,000 30,000 Transfers In from A&S - - 4,473 - Transfers In from PTR - 899,270 - Transfers In from VA - for Dept 22 5,000 - - 9,020 Transfers In from VA- Payroll 90,059 174,971 174,971 253,998 Transfers In from OF - Payroll 3,876,195 227,292 227,292 252,365 Total Other Sources 420,263 1,439,006 545,383 TOTAL REVENUES & OTHER SOURCES 4,932,215 4,308,690 6,193,326 5,754,361 EXPENDITURES & OTHER USES 2,675,312 3,731,332 3,731,332 2,748,308 Payroll Salaries 1,454,868 1,887,698 1,880,738 1,993,764 Payroll M/D/L Insurance 151,887 248,954 256,829 293,871 Payroll Taxes/Benefits 239,911 352,022 353,327 339,407 Supplies 112,140 141,556 149,701 150,991 Services 1,315,060 1,347,878 1,401,623 1,451,470 Insurance 25,882 25,283 25,533 24,822 Repair & Maintenance 159,749 108,194 129,669 113,479 Rent & Utilities 234,978 251,610 252,360 251,860 Capital Outlay 91,661 - 37,530 190,000 Capital Projects - - - - Total Expenditures 3,786,136 4,363,194 4,487,309 4,809,663 Transfer Out to ED 35,758 35,758 35,758 35,758 Transfer Out to DS - - - 601,178 Transfer Out to CP 49,301 2,085,000 2,085,000 - Transfer Out to FM 1938 - - 1,875 - Transfer Out to GMM - 500,000 530,000 Transfer Out to V&E 5,000 - 66,407 - Total Other Uses 90,059 2,120,758 2,689,040 1,166,936 TOTAL EXPENDITURES & OTHER USES 3,876,195 6,483,952W 7,176,349 5,976,599 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1,056,020 1 (2,175,263) (983,024) (222,238) FUND BALANCE, BEGINNING 2,675,312 3,731,332 3,731,332 2,748,308 FUND BALANCE, ENDING 3,731,332 1,556,069 2,748,308 2,526,069 Restricted/Assigned/Committed Funds 214,751 197,800 415,021 255,079 UNASSIGNED FUND BALANCE, ENDING 3,516,581 1,358,269 2,333,287 2,270,990 # Days Operating 337 124 207 168 Restricted/Assigned/Committed Funds C Court Technology 100 10112 00 000 72,162 66,000 86,076 90,380 C Court Security 100 10113 00 000 93,854 89,000 104,355 109,573 C Court Efficiency 100 10116 00 000 4,047 2,800 4,902 5,147 R Tree Reforestation 100 10110 00 101 15,540 16,000 190,540 20,540 R Street Escrow 100 10110 00 102 29,147 24,000 29,147 29,439 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 214,751 2330.7:2 39 GENERAL FUND Revenues and Transfers In FUND OVERVIEW Total General Fund revenues and transfers in for FY 2011-12 are projected to be $5,754,361 • A 7% decrease of $438,965 from the FY 2010-11 estimated revenues and transfers in of $6,193,326 o A large percentage of the decrease is due to a transfer in from the Property Tax Reduction Fund in FY 2010-11 (closing the Fund) of $(899,270) o Property Tax Reduction sales tax receipts will be recorded in the General Fund which is indicated by the increase of $669,500 o Contributions of indirect payroll costs are being received by the Town from the Academy in the amount of $302,900 for FY 2011-12; the contribution for FY 2010-11 represents tree reforestation funds REVENUES & FY 10/11 FY 11/12 Variance TRANSFERS IN Estimated Adopted % of Total amount percent Sales Tax $ 1,498,500 $ 2,062,500 36% $ 564,000 38% Property Tax 1,327,901 1,156,842 20% (171,059) 100% Contributions 175,000 302,900 5% 127,900 73% Beverage Tax 17,750 17,750 0% - 0% Franchise Fees 583,650 582,550 10% (1,100) 0% Permits & Fees 463,150 472,090 8% 8,940 2% Fines & Forfeits 598,990 536,611 9% (62,379) -10% Interest 9,345 15,035 0% 5,690 61% Misc Income 80,034 62,700 1% (17,334) -22% Transfers In 1,439,006 545,383 9% (893,623) -62% TOTAL $6,193,326 $5,754,361 100% $ (438,965) -7% ■ Properl M ■ Contributions ■ Franchise Fees q0/ 10% 36% ?rmits & Fees 8% Fines & Forfeits 9°% Il Misc Income 1% ® Transfers In 9% FY 11/12 Adopted Revenues FUND OVERVIEW General Sales Tax • Sales taxes are collected on the sale of goods and services within the Town as authorized by the State of Texas. • The maximum sales tax allowed in the State of Texas is 8.25% per dollar on all taxable goods and services. Funds are collected by the Texas Comptroller of Public Accounts and remitted to the Town on a monthly basis. • An amount equal to 1.50% of the taxable sales (75% of local collections) is appropriated to the Town's General Fund. • The Town also receives an additional .50% sales tax that is recorded in the 4B Economic Development Corporation Fund. • Sales tax receipts comprise 36% of FY 2011-12 General Fund revenues. • Sales taxes for the General Fund are budgeted to increase by $669,500 due to the inclusion of the Property Tax Reduction portion of the taxes. • On-going sales tax is anticipated to increase by 6% based on current year trend and analysis. • Presumed one-time amounts are projected to decrease by $186,000 (these one-time amounts are not budgeted) $3.75 - 10 Year Sales Tax Analysis $3.50 $3.25 $3.00 9 • $2.75 • ".7� $2.50 4 4' 4 $2.25 $2.00 N $1.75 $1.50 o $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated projected ■ Base Sales Tax ® Economic Development Agreement ■ Audit Payment ■ Presumed One -Time Payment Property Tax • Property tax receipts comprise 20% of FY 2011-12 General Fund revenues. • FY 2010-11 was the first year the Town of Westlake imposed an ad valorem property tax. • Anticipate a decrease in total tax rate of $.0037 from FY 2010-11 Fiscal Net M&O Debt Service Total Year Taxable Value Fund Rate Fund Rate Tax Rate 2012 $ 836,170,736 $ 0.1384 $ 0.0185 $ 0.15684 2011 $ 880,672,075 $ 0.1562 $ 0.0039 $ 0.16010 FUND OVERVIEW Contributions • Westlake Academy payment for indirect payroll costs of $302,900 o Total is $325,000 o Deduct 25% pay for Facilities Maintenance employee $8,250 o Deduct 25% pay for Information Technology employee $13,850 Beverage Tax • The Town collects a 14% gross receipt tax on mixed beverages. • Of this percentage, 10.7% of gross liquor receipts are remitted to the Town, and the remaining 3.3% is retained by the State of Texas. • No increase of Alcoholic beverage tax revenue is anticipated. Franchise Taxes • Franchise taxes represent revenues collected from utilities operating within the Town that use the Town rights-of-way to conduct their business. • A flat rate is charged to both telephone operators (adjusted annually) and Tri -County Electric based on the number of access lines and services rendered, respectively. • These fees are anticipated to remain substantially flat for FY 2011-12. $800,000 $600,000 $400,000 $200,000 $0 10 Year Franchise Fee Revenue Analvsis FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 actual actual actual actual actual actual actual Estimated 582,550 7 d FY 11/12 Projected Permits and Fees • License and permit revenues include fees charged by the Town for certain types of operator licenses, as well as permits for construction and other items regulated by Town ordinances. • Projected revenues for FY 2011/2012 are $472,090 • No major permits/fees are anticipated for FY 2011-12. $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 10 Year Permit and Fee Revenue Analysis FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 actual actual actual actual actual actual actual Estimated Projected FUND OVERVIEW Court Revenue • The revenue generated from the Municipal Court is based on citations and warrants issued. • The Keller Police Department will continue to perform its contractual patrol of Westlake roads in FY 2011-12. $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 10 Year Municipal Court Revenue Analysis FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 actual actual actual actual actual actual actual Estimated Projected Transfers In • Transfers In represents those funds transferred from one fund to another. These transfers may be utilized as a means to fund projects or debt service from multiple sources. Transfers In may also be used to transfer funds collected by one fund and should be properly recorded in a different fund. • Transfer in from the Utility fund is $30,000 o This is for collection of Fort Worth Impact Fees, which are collected with initial water deposits and tap fees on new water meters. o These funds are collected by the Utility Fund and transferred to the General Fund as a result of an agreement with the City of Fort Worth. o When the transferred total reaches $2,000,000 (remaining balance is $1.6M) these funds will be paid to the City of Fort Worth in compliance with the wholesale water customer agreement. • Transfer in from the Visitor Fund $ 9,020 o Funds represent operating expenditures for Department 22 - Communications & Community Affairs • All payroll and related expenditures for the Town are paid via the General Fund. Portions of these expenditures are subsidized by the Utility Fund and the Visitor Fund. o Transfers in from the Utility Fund are $252,365. o Transfers in from the Visitor Fund are $253,998 FUND OVERVIEW Expenditures and Transfers Outs • Total General Fund expenditures and transfers out for FY 2011-12 are projected to be $5,976,599 o A 17% decrease of $1,199,750 from the FY 2010-12 estimated expenditures and transfers out $7,176,349. This amount is composed primarily of transfers out to the Capital Projects Fund in FY 2010/2011 of $2M offset by $601 K of a debt service fund payment being made from the General Fund instead of the Property Tax Reduction Fund for FY 2011/2012 due to its closure. EXPENDITURE & TRANSFERS OUT FY 10/11 Estimated FY 11/12 Adopted % of Total Variance amount percent Payroll & Related $ 2,490,894 $ 2,627,042 44% $ 136,148 5% Operating Expenses 1,958,885 1,992,621 33% 33,736 2% Capital Outlay 37,530 190,000 3% 152,470 406% Transfers Out 2,689,040 1,166,936 20% (1,522,104) -57% TOTAL $7,176,349 $5,976,599 100% $ (1,199,750) -17% ■ Operatin Expenditu 33% ❑ Capital Outlay, ■ Transfers Out FY 11/12 Adopted Expenditures 'ayroll & Related 44% • As in recent years, Town staff continues to operate conservatively by controlling costs while maintaining the highest possible levels of service. o These goals are only possible through continued strategic planning and the innovative use of available resources. o Our overall budget philosophy focuses on meeting stated goals and objectives and maintaining a 90 day fund balance. FUND OVERVIEW Payroll/Salaries and Related Taxes/Benefits • Comprise 44% of expenditures with a total of $2,627,042 • This is a 5% increase of $136,148 from the FY 2010-11 estimated payroll expenditures $2,490,894 o This increase includes a lea increase for staff as well a possible $45K one-time performance payment based on revenues at mid -year • All payroll and related expenditures for the Town are paid via the General Fund. o Portions of these expenditures are subsidized by the Utility Fund and the Visitor Fund. o Transfers in from the Utility Fund are $252,365 o Transfers in from the Visitor Fund are $253,998 Operating Expenditures • Comprise 33% of expenditures with a total of $1,992,621 • This is a n increase of $33,736 from the FY 2010-11 estimated expenditures of $1,958,885 Capital Outlay • Comprise 3% of expenditures with a total of $190,000 • This is a an increase of $152,470 from the FY 2010-11 estimated expenditures of $37,530 • Attack Fire Truck - $170,000 Transfers Out • Comprise 20% of expenditures with a total of $1,166,936 and includes these transfers o Transfer out $35,758 to Economic Development Fund o Transfer out $601,178 to Debt Service Fund o Transfer out $530,000 to General Maintenance Fund Fund Balance • The audited fund balance of the General Fund as of October 1, 2010 was $3,731,332 45 FY 10/11 FY 10/11 Adopted vs FY 11/12 FUND BALANCE Adopted Estimated Estimated Adopted Receipts $3,888,427 $4,754,320 $ 865,893 $5,208,978 Transfers In 420,263 1,439,006 1,018,743 545,383 Deductions 4,363,194 4,487,309 124,115 4,809,663 Transfers Out 2,120,758 2,689,040 568,282 1,166,936 Net $ (2,175,263) $ (983,024) $ 1,192,239 $ (222,238) Beginning Fund Balance 3,731,332 3,731,332 - 2,748,308 Ending Fund Balance 1,556,069 2,748,308 1,192,239 2,526,069 Designated funds 197,800 415,021 217,221 255,079 Undesignated Fund Balance $ 1,358,269 $ 2,333,287 $ 975,018 $ 2,270,990 45 FUND OVERVIEW FY 2010-11 Adopted Budget o Projected an excess of expenditures and other financing uses over revenues and other financing sources by $(2,175,263) which was primarily due to the transfer out of $2,085,000 to the Capital Projects Fund based on the Town's approve Five Year Capital Improvement Plan. o This would have resulted in a budgeted ending fund balance of $1,556,069. FY 2010-11 Estimated Budget o Projects an excess of expenditures and other financing uses over revenues and other financing sources by $(983,024) o This represents an increase in fund balance of $1,192,239 from the adopted budget o This increase is due primarily to the following: ■ Transfer in of $899,270 from the Property Tax Reduction Fund (Closure of fund) ■ Transfer in of $133,000 from Utility Fund for impact fees related to the construction of Deloitte University ■ Additional property taxes of $327K. FY 2010/2011 was the Town's first year to implement a property tax and a conservative amount of property valuation was used from the Tarrant Appraisal District ■ Additional sales taxes of $143K made up primarily of one-time receipts • Contributions were originally budgeted at $10K and $175,000 was received from Range Resource for tree reforestation. ■ Additional $566,407 transferred out to the General Maintenance & Replacement Fund as well as the Vehicle and Equipment Replacement Fund. o The fund balance as of September 30, 2011 is estimated at $2,748,308 o The undesignated balance of $2,333,287 represents coverage for 189 operating days FY 2011-12 Adopted Budget o Projects an excess of expenditures and other financing uses over revenues and other financing sources of $(223,207) due primarily to a transfer out to the General Maintenance & Replacement Fund of $530,000. o Results in a budgeted ending fund balance of $2,526,069 o The unassigned balance of $2,270,990 represents coverage for 168 operating days This page is intentionally blank 47 Fund 100 General Fund Department 10 General Services Fiscal Year 2011/2012 venues Adopted Estimated Adopted $ $ 1,250,000 $ Actual Budget Budget Budget 1,327,901 FY 09/10 FY 10/11 FY 10/11 FY 11/12 venues General Sales Tax $ $ 1,250,000 $ 1,498,500 $ 2,062,500 Property Tax 1,000,430 1,327,901 1,156,842 Hotel Tax - - - Charges for Services 21,365 24,225 - Contributions - - 302,900 Beverage Tax 17,750 17,750 17,750 Franchise Fees 612,000 583,650 582,550 Permits & Fees 2,810 2,960 2,960 Fines & Forfeitures - - - Investment Earnings 7,765 7,875 13,565 Misc Income 11,600 12,100 11,600 Total 17 2,902,355 1,450,736 $ 4,150,667 $4,500,000 - $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Actual FY09/10 Adopted Budget FY10/11 Estimated Budget FY10/11 Adopted Budget FY11/12 WRevenues 6d Expenditures 48 Payroll $ $ $ $ Payroll Related - Supplies 18,399 21,365 24,225 23,515 Services 172,033 158,179 211,879 198,094 Insurance 21,131 20,390 20,390 20,186 Maintenance 4 - - - Rent & Utilities 154,173 154,518 154,518 154,518 E/D Incentives - - - - Capital Outlay $ 313 $4,500,000 - $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Actual FY09/10 Adopted Budget FY10/11 Estimated Budget FY10/11 Adopted Budget FY11/12 WRevenues 6d Expenditures 48 General Services Department 10 PROGRAM BUDGET Department Directorl Thomas Brymer Department Phone 817-490-5720 Academic Governance 1 2 3 Com Legislative & Authorizing Agency Affairs 15,313 3.86% Pro ram Activity Budget I Percent Municipal Governance 5,173 1.31% Comprehensive Planning 1 Legislative Affairs 23,091 5.83% Development Oversight and Regulation 2 Policy Development, Council Meetings and Workshops 20,101 5.07% 3 Council Governance Training and Education 18,489 61,681 4.67% 15.56% Academic Governance 1 2 3 Com Legislative & Authorizing Agency Affairs 15,313 3.86% Policy Development, Board Meetings and Workshops 6,785 1.71% Board Governance Training and Education 5,173 1.31% Comprehensive Planning 27,270 6.88% 3 Development Oversight and Regulation prenensive Planning ana tconomic uevelopment 1 Managing and Budgeting for Outcomes 9,414 1 Development Recruiting and Assistance 15,664 3.95% 2 Comprehensive Planning 20,601 5.20% 3 Development Oversight and Regulation 12,951 3.27% 4 Development Agreement Oversight 12,951 3.27% 6 7 3 62,167 15.69% Financial Management 1 1 Managing and Budgeting for Outcomes 9,414 2.38% Financial Management and Budget Preparation 2 Oversight of Five -Year Financial Forecast 5,414 1.37% Municipal 3 Administration 1 Review and Planning for Financial Sustainability Departmental Coordination and Employee Management 9,414 24,243 52,976 2.38% 6.12% 13.37% 1.31% 2 Contract Management 16,123 4.07% 6 7 3 Agenda Preparation and Calendar Maintenance 15,148 3.82% 4 Strategic Plan Development and Implementation 15,023 3.79% 5 Professional Development 18,635 4.70% 6 Direction of Leadership Team 17,273 4.36% 7 Affiliate Board Liaison and Support 15,023 3.79% Academic Administration 150,200 37.90% 1 Departmental Coordination and Employee Management 13,138 3.31% 2 Financial Management and Budget Preparation 5,173 1.31% 3 Agenda Preparation and Calendar Maintenance 5,173 1.31% 4 Strategic Plan Development and Implementation 5,173 1.31% 5 Organizational Development 7,423 1.87% 6 7 Parent and Student Communication Affiliate Board Liaison and Support 5,173 5,173 46,424 1.31% 1.31% 11.71% Citizen Engagement and Communication 1 2 3 4 Communication 5,248 1.32% Neighborhood Gatherings and Outreach 8,735 2.20% Community Activities 5,173 1.31% Direction Finders and Other Surveys 5,173 1.31% 24,328 6.14% $ 396,313 100% 49 General Services Vision Points o Service Excellence Program Description GOALS AND OBJECTI\,` • The General Service Program is comprised of costs in the budget that may not be specifically identifiable to any operational budget. The activity is administered by the Finance Department and funds various charges that are not defined or directly related to any specific department or activity of the Town. • Examples of cost include, electricity, insurance, professional services, contingencies, etc. These types of expenditures affect all budgets and are generally not prorated. This page is intentionally blank 51 Fund 100 General Fund Department 11 Town Manager Fiscal Year 2011/2012 Employee Staffing Town Manager 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 - Assistant Town Manager - - - 0.75 Part Time Intern 0.50 0.50 0.25 0.75 Total Revenues Adopted Estimated Adopted Actual Budget Budget Budget FY 09/10 FY 10/11 FY 10/11 FY 11/12 Employee Staffing Town Manager 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 - Assistant Town Manager - - - 0.75 Part Time Intern 0.50 0.50 0.25 0.75 Total Revenues General Sales Tax 1,597,195 Property Tax - 7 Hotel Tax 246,344 Charges for Services - Contributions 183,250 Beverage Tax 17,902 Franchise Fees 603,233 Permits & Fees 3,610 Fines & Forfeitures - Investment Earnings 22,808 Misc Income 24,554 Total $ 2,452,552 is $ $ Expenditures Payroll 183,396 246,344 253,544 252,356 Payroll Related 47,657 80,425 81,125 79,453 Supplies 6,259 4,125 4,195 4,125 Services 19,317 36,643 26,843 26,843 Insurance - - - - Maintenance Rent & Utilities E/D Incentives - ,Capital Outlay 83,250 - - NEW $ 339,879 $ 367,537 $ 365,707 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Actual FY09/10 Adopted Budget FY10/11 Estimated Budget FY10/11 Adopted Budget FY11/12 0 Revenues 0 Expenditures 52 Town Manager Department 11 PROGRAM BUDGET Department Directorl Thomas Brymer Department Phone 817-490-5720 Program I Activity Budget IPercent Municipal Governance Comprehensive Planning and Economic Development 1 Legislative Affairs $ 3,513 0.97% 7,531 2 Policy Development, Council Meetings and Workshops 6,831 1.88% 6,831 3 Council Governance Training and Education 6,831 1.88% Academic Governance 18.45% $ 17,175 4.73% 4.98% 1 Legislative & Authorizing Agency Affairs $ 3,513 0.97% 2 3 Policy Development, Board Meetings and Workshops Board Governance Training and Education 6,831 6,831 $ 17,175 1.88% 1.88% 4.73% Comprehensive Planning and Economic Development Financial Management 1 1 Development Recruiting and Assistance $ 3,513 0.97% $ 22,316 2 Comprehensive Planning 7,531 2.08% 6.15% 3 Development Oversight and Regulation 6,831 1.88% 6.15% 4 Development Agreement Oversight 195 0.05% 18.45% $ 18,070 4.98% Financial Management 1 Managing and Budgeting for Outcomes $ 22,316 6.15% 2 Oversight of Five -Year Financial Forecast 22,316 6.15% 3 3 Review and Planning for Financial Sustainability 22,316 6.15% Municipal Administration 0.97% $ 66,947 18.45% 17,370 1 Departmental Coordination and Employee Management $ 7,581 2.09% 2 Contract Management 6,831 1.88% 3 Agenda Preparation and Calendar Maintenance 16,785 4.63% 4 Strategic Plan Development and Implementation 16,785 4.63% 5 Professional Development 30,106 8.30% 6 Direction of Leadership Team 7,031 1.94% 7 Academic Administration Affiliate Board Liaison and Support 6,831 $ 91,951 1.88% 25.35% 1 Departmental Coordination and Employee Management $ 16,785 4.63% 2 Financial Management and Budget Preparation 33,376 9.20% 3 Agenda Preparation and Calendar Maintenance 16,785 4.63% 4 Strategic Plan Development and Implementation 33,376 9.20% 5 6 7 Organizational Development Parent and Student Communication Affiliate Board Liaison and Support 16,785 13,467 3,513 $ 134,088 4.63% 3.71% 0.97% 36.96% Citizen Engagement and Communication 1 Communication $ 6,831 1.88% 2 Neighborhood Gatherings and Outreach 3,513 0.97% 3 Community Activities 3,513 0.97% 4 Direction Finders and Other Surveys 3,513 0.97% $ 17,370 4.79% $ 362,777 100% 53 Town Manager Vision Points • A Sense of Place ® We are Leaders ® We are a Caring Community ® Exemplary Governance ® Service Excellence Program Description ® The Administration Department coordinates and manages all facets of the Town's operations. GOALS AND OBJECTIVES • The Town Manager, reporting to the Town Council, serves as the chief executive officer for all Town operations including serving as Superintendent for Westlake Academy. His duties include implementation of the goals and objectives established by the Town Council, preparation and submission of an annual municipal budget for Board review and adoption, as well as the implementation and oversight of the adopted budget throughout its effective fiscal year. • The Town Manager guides, coordinates, and facilitates recommendations to the Council on strategic planning initiatives and policies as well as their implementation. ® Responsible for attracting, retaining, and developing a municipal/educational work force for delivering top quality municipal and Academy services. Trends Residential growth remains comparable with the previous year's permit requests. • Fidelity continues to transition employees to the recently completed Phase II section of their facility; Deloitte University is projected to officially open in the Fall of FY 1 1 /12; Work has begun on the new Centennial Fine Wine and Spirits store located at the intersection of Hwy 170 and 377; The QT convenience store at the same location will begin within the next few months. ® The Town's on-going sales tax sources continue to remain at a consistent number when compared to the previous year's sales tax revenue income. • Capital Improvement Projects (CIP) have been funded for the next three years to maintain and improve the Town's infrastructure, including various road (through bond issuance) and water/sewer projects (through the Utility Fund). ® With the implementation of the ad valorem property tax, an additional revenue stream was allocated to stabilize the General Fund and maintain the current levels of service without falling below the 90 day fund balance along with providing for dedicated funding for future major maintenance and vehicle replacement. Program Broad Goals ® Assure all growth is compliant with Westlake development standards. ® Maintain and develop a competent and competitive municipal/Academy work force. GOALS AND OBJECTIVES Town Manager • Analyze and report new revenue generating ventures as well as analyze and report new ways to partner with public and private sector service providers to control cost and improve services. ® Monitor the municipal and Academy budget and oversee all finances of the Town so as to apprise Town Council of the Town's financial condition and future needs in a timely manner. ® Assist the Board of Trustees/Town Council with the growth and development of Westlake Academy. ® Provide support for Council appointed advisory committees and commissions. ® The Town Manager's Office participates in the following specific programs of service: o Municipal governance o Academic governance o Comprehensive Planning and Economic Development o Financial Development o Municipal Administration o Academic Administration o Citizen Engagement and Communication 2011 Highlights ® Anticipated opening of the $300 million Deloitte University campus in the Fall of 2011. ® Graduated our second class of seniors from Westlake Academy with each student being accepted into at least one 4 -year college; one National Merit Finalist was named by the National Merit Scholarship Corporation; projected student enrollment of 620 (K-12) for the 2011/2012 school year; expanded options at the secondary level with the additional of a third section per class in grades 7 -11; and the Academy was ranked as one of the top 20 high schools in the nation for the first time. ® Approval of a long-range CIP along with the sale of Certificates of Obligation in the amount of $2,095,000 and cash transfers totaling $3,290,000 to invest in the Town's infrastructure through street improvements. ® FM 1938 (Precinct Line Rd) Phase I- Construction of this $15.2 million dollar TxDOT project is progressing; the Town also allocated funding for the comprehensive streetscape plan. ® Entered into an agreement with Hillwood properties for $4.6 million dollars of improvements to the Dove Road and J. T. Ottinger Road; along with an additional northern access point to Westlake Academy. ® Implemented a Memo of Understanding (MOU) with the surrounding municipalities of Trophy Club and Roanoke to foster cooperative projects to the betterment of the region; initial agreement will consist of the Hwy 114/170 beautification project. 55 GOALS AND OBJECTIVES Town Manager The Town Council, in partnership with Town Staff, is continually working to improve our processes and as such, began the transition to a Balanced Scorecard strategic planning system along with a strategy map to identify and drive the objectives integral to staff efforts and Town governance. This information will work in tandem with the program based budget. 2012 Goals and Objectives ® Continue the work toward updating the Town's comprehensive plan; review the use of a consultant to facilitate the project. • Continue intergration of the Municipal and Academy operations into a cohesive, unified organization. Strengthen Academy management and internal support systems. • Monitor and facilitate the Academy and Town's approved strategic plans while transitioning to the comprehensive Balanced Scorecard format with the corresponding strategy map objectives. ® Consolidate and prioritize the efforts of the Director of Communication position to foster constant improvement of citizen outreach and communication. ® Further advancement of the strategic planning systems at the Academy and Town, building on the vision, mission, and values and objectives identified by the elected officials. Efficiency/Effectiveness Measures Objective I Actual Actual Estimated Adopted FY08/09 FY09/10 FY10/11 FY11/12 1 I Produce monthly update forI 100% 90% 90% 90% Town Council 2' 100% 100% Complete program of services within 100% 100% adopted or amended budget u 3 Maintain annual 90 day balance in 230 days 380 days 134 days 160 days General Fund