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Ord 686 Revising the Budget for Fiscal Year 11-12 and Adopting the Budget for Fiscal Year 12-13TOWN OF WESTLAKE ORDINANCE NO. 686 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, REVISING THE BUDGET FOR THE 2011-2012 FISCAL YEAR; ADOPTING THE BUDGET FOR THE TOWN OF WESTLAKE, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013 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 24, 2012; 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, 2011 and ending September 30, 2012 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, 2012 and ending September 30, 2013. SECTION 4: That the Town Council hereby gives the Town Manager authorization to approve any appropriated fiends up to the amount of $25,000. SECTION 5: That a copy of the official adopted 2012-2013 budget document shall be kept on file in the office of the Town Secretary. Ordinance 686 Page 1 of 2 SECTION 6: 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 24TH DAY OF SEPTEMBER 2012. ATTEST: KellEdwardU, Town Secretary Laura L. Wheat, Mayor •rte •Wn Manager Ordinance 686 Page 2of2 THE TOWN OF ESTLAKE r ramp Fiscal Year 2012-2013 Proposed Annual Operating Budget PERFORMANCE LEADERSHIP TEANWORK DEDICATION ITE+ ITY -ng ServiceExcell 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. 't�>' WE ARE LEADERS A PREMIERE PLACE TO LIVE, LEADERSHIP IN PUBLIC EDUCATION, CORPORATE AND GOVERNMENTAL PARTNERSHIPS, AND HIGH DEVELOPMENT STANDARDS. I4 WE ARE A CARING COMMUNITY INFORMED RESIDENTS, SMALL TOWN CHARM AND VALUES, HISTORICAL PRESERVATION. 9- - EXEMPLARY GOVERNANCE TOWN OFFICIALS, BOTH ELECTED AND APPOINTED, EXHIBIT RESPECT, STEWARDSHIP, VISION, AND TRANSPARENCY. 'zP° SERVICE EXCELLENCE PUBLIC SERVICE THAT IS RESPONSIVE AND PROFESSIONAL, WHILE BALANCING EFFICIENCY, EFFECTIVENESS AND FINANCIAL STEWARDSHIPAP- COMMUNITY VALUES INNOVATION EDUCATIONAL LEADERS 1�11- 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 MAYOR PRO -TEM COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER LAURA WHEAT CAROL LANGDON MICHAEL BARRETT 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 8t COMMISSIONS WESTLAKE HISTORICAL PRESERVATION SOCIETY STEPHEN THORNTON, KRISTI LAYTON, MEGAN BRADY, JIM BUDARF, KAREN STOLTENBERG, BERT SCHULTZ WESTLAKE ACADEMY FOUNDATION KEN GORDEN, LEAH RENNHACK, KELLY COX, BILL GREENWOOD, ZAN JONES, SEAN SHOPE, REBECCA NEIDRICH, JEFF WATSON CHARLOTTE RYAN, KEVIN HANSEN, APRIL GALLAGHER � PLANNING & ZONING COMMISSION BILL GREENWOOD, WALTER COPELAND, ALLEN HEATH, SHARON SANDEN, WAYNE STOLTENBERG TEXAS STUDENT HOUSING AUTHORITY JIM CARTER, GEORGE LEDAK, SCOTT BRADLEY, GREGG MALONE � PUBLIC ARTS COMMITTEE BRYAN BIDDLE, GAIL JAMES, AMELIA JOHNSON, KELLY COX, TRISH BIDDLE, REBECCA NEIDICH, ALLISON ROSS � 4B ECONOMIC DEVELOPMENT BOARD LAURA WHEAT, RICK RENNHACK, MICHAEL BARRETT, CAROL LANGDON, DAVID BROWN, GREGG MALONE -,>. ARBOR DAY ADVISORY COMMITTEE TROY MEYER 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, 201 1. 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 1 �+ Budget Overview and Framework_____________________________________________________ 1.5 + Financial Analysis - All Funds_______________________________________________________________23 �+ Personnel and Organization ----------------------------------------------------------------- 35 2. GENERAL FUND ProgramSummary--------------------------------------------------------------------------------------41- Fund Overview 42 3. SPECIAL REVENUE FUNDS �+ 4B Economic Development Fund 200 ProgramSummary-------------------------------------------------------------------------------------51- Fund Overview 52 Inter -fund Repayment Schedule -------------------------------------------------------------- 53 + Economic Development Fund 210 Program Summary-------------------------------------------------------------------------------------55 Fund Overview 56 Tax Reimbursement Schedule - Fidelity Phase 1 _____________________________________57 E.+ Lone Star Public Facilities 418 Program Summary-------------------------------------------------------------------------------------59 Fund Overview 60 :+ Visitors Association Fund 220 Program Summary-------------------------------------------------------------------------------------63 Fund Overview 64 ProgramBudget----------------------------------------------------------------------------------------65 4. DEBT SERVICE FUND ProgramSummary-------------------------------------------------------------------------------------67 Fund Overview 68 Long Term Debt Summary---------------------------------------------------------------------70 5. ENTERPRISE FUND T+ Cemetery Fund 255 Program Summary-------------------------------------------------------------------------------------75 Fund Overview 76 Table of Contents 5. ENTERPRISE FUND (continued) Utility Fund 500 Program Summary ------------------------------------------------------------------------------------- Fund Overview 80 ProgramBudget----------------------------------------------------------------------------------------84 Inter -fund Repayment Schedule _________----------------------------------------------------- 85 Debt Payable Schedule - Keller Overhead Storage_------------------------------ 86 Project 30 - TRA Assumption of N 1 Sewer Line_______________ 87 -------------------------- Project 31 - N1 Sewer Line Transfer Inflow/Infiltration Repairs -----------------88 Project 36 - Ground Storage Tank ------------------------------------------------------------89 6. INTERNAL SERVICE FUNDS Utility Major Maintenance Fund 510 Program Summary ------------------------------------------------------------------------------------- 91 Fund Overview 92 Five Year Projection-----------------------------------------------------------------------------------93 + General Major Maintenance Fund 600 - FM 1938 Streetscape and Wayfinding----------------------------------- Program Summary-------------------------------------------------------------------------------------95 Project 28 Fund Overview 96 Five Year Projection-----------------------------------------------------------------------------------97 - SHl 14 and Hwyl70 Enhancements --------------------------------------128 7. WESTLAKE ACADEMY FUND 1.99 ProgramSummary-------------------------------------------------------------------------------------99 Fund Overview 100 ExecutiveSummary ----------------------------------------------------------------------------------- 101- H. CAPITAL PROJECT FUND ProgramSummary-------------------------------------------------------------------------------------123 Fund Overview 124 Five Year Projection-----------------------------------------------------------------------------------125 Project 20 - FM 1938 Streetscape and Wayfinding----------------------------------- 126 Project 28 - Streets Survey-------------------------------------------------------------------------127 Project 30 - SHl 14 and Hwyl70 Enhancements --------------------------------------128 Project 31 - Stagecoach Hills Reconstruction and Drainage, -----------------129 Project 34 - South Roanoke Road Reconstruction and Drainage ----------130 Project 40 - Sam School Road Reconstruction and Drainage---------------131- Project 41 - Dove Road Reconstruction and Drainage --------------------------132 Project 42 - Trail Connection at Hwy 114 and Solana Blvd ---------------------133 Project 45 - Westlake Portion of Hillwood Projects ----------------------------------134 Project 46 - Westlake Academy North Driveway Lighting ----------------------135 Project 47 - Hwy 377 Westport Parkway Signal ----------------------------------------136 Project 48 -Westlake Academy Expansion ----------------------------------------------137 Table of Contents 9. CAPITAL IMPROVEMENTS Capital Improvement Plan-----------------------------------------------------------------------139 Approved Capital Projects - 5 Year Projection ______________________________________140 Unfunded Capital Projects - 5 Year Projection ______________________________________141_ 10. FIVE YEAR FORECAST Five Year Financial Forecast Narrative 143 Five Year Financial Forecast All Municipal Funds ------------------------------------ 145 COMMUNITY PROFILE General Information 151 History of Westlake-------------------------------------------------------------------------------------152 LocalGovernment ------------------------------------------------------------------------------------ 1.54 CommunityEvents-------------------------------------------------------------------------------------155 WestlakeAcademy-----------------------------------------------------------------------------------156 Facts, Figures, Statistics------------------------------------------------------------------------------157 Population and Employers------------------------------------------------------------------------158 SalesTax Rates-------------------------------------------------------------------------------------------159 PropertyTax ----------------------------------------------------------------------------------------------- 1.60 12. APPENDIX Glossary of Terms 1.63 Fiscal and Budgetary Policies ------------------------------------------------------------------- 1.69 InvestmentPolicy --------------------------------------------------------------------------------------- 191_ StrategicPlan---------------------------------------------------------------------------------------------195 rIVIRC1. �eruice EXCello CC Alp THE TOWN €3F ESTLA E E _X TRANSMITTAL LETTER The Transmittal Letter is written to the Town Council by the Town Manager and provides a high-level preview of the Town Manager's proposed budget. It contains hard numbers including the proposed tax rate and proposed fund summaries as well as overviews of the departmental business plans. The letter helps tie together the core elements which make up the proposed budget and illustrates how those elements further the Town's goals found within the Strategic Plan. PERFORMANCE LEADERSHIP TEA I WORIS DEDICATION INTECRITY NOW— N I { 1 A khIrL.1ing Service_ September 18, 2012 Honorable Mayor and Town Council: INTRODUCTION TRANSMITTAL LETTER It is my pleasure to submit for your consideration the Proposed FY 2012-13 Budget for the Town of Westlake; the theme for which is "Driving Service Excellence." With this theme in mind, this budget has been prepared with the following three -fold strategic focus with the intent of achieving as an end product, an excellent quality of life for Westlake residents and businesses: • Continued substantial investment in the Town's infrastructure • Investing in our employees, our most important resource for achieving service excellence • Maintaining our position as a premiere knowledge based community, as well as a community recognized both statewide and nationally for our innovative approaches to local government service delivery. During my tenure as your Town Manager / Superintendent, our community has faced many important decisions which have helped to shape our future and guide our growth. We have expanded our capacity as an organization through: • the development of strategic plans and identifiable performance measures for both our municipal and educational operations. • conducting elected official governance and staff professional development sessions to improve our proficiency in those areas. • keeping a continued short and long-term focus on fiscal management that involves responsible budgeting and transparency for our citizens. • increasing our communication and outreach efforts to our community via the continued use of neighborhood meetings, corporate partnerships, and the re -design of our website. • expanding enrollment, providing new course offerings, and emphasizing high student achievement and student expansion at Westlake Academy. All of these tasks are necessary to create the one -of -a -kind community that Westlake residents cherish and enjoy. As a staff, we would like to say `thank you' for the time and effort the Town Council invests in both the Town and its school, Westlake Academy. PROPOSED BUDGET OVERVIEW On behalf of the Leadership Team and all staff members, I am presenting the Proposed Town of Westlake's FY 2012-13 budget document for the Council's consideration as follows: • The FY 12-13 budgeted amount totals $26,089,720 for all funds (including $1,923,218 transfers in from fund balance for operating, debt service, capital projects, major maintenance and equipment replacement needs). Page 1 TRANSMITTAL LETTER • This represents a 25% increase in the total fund balance from the FY 2011-2012 estimated budget. If only municipal operating expenses were taken into consideration (removal of all expenses related to capital projects, Westlake Academy and interfund transfers), the proposed FY 2012-13 budget would show a 47o decrease in municipal expenditures from the FY 2011-12 estimates. This is due in large to the cost reductions in our economic development fund resulting from the completion of the construction of Deloitte University during the 11-12 fiscal year; which in turn lowered our economic development sales tax rebates related to that project. This is also due to the FY 11-12 proposed transfer of $400,000 which represents a contribution to the Westlake Academy Foundation of the funds received from the Texas Student Housing. Three years ago, in order to provide a more holistic and comprehensive overview of all of our financial obligations, revenue sources, and program of services that fall under the umbrella of the Town of Westlake, we began including in the municipal budget the operational costs for Westlake Academy. A summary of the changes in Fund Balance from the projected beginning fund balances to the estimated FY 2011-12 fund balances are as follows: Beginning Revenues and Expenditures Ending Fund Other Funding and Other Net Fund Inc(Dec) Fund Type Balance Sources Funding Uses Change Balance Percent General Fund 4,226,543 5,518,605 7,247,103 1,728,499 2,498,044 -41% Special Revenue 1,248,742 1,668,203 1,833,126 (164,923 1,083,819 -13% Debt Service Fund 29,796 1,586,452 1,616,248 (29,796) (0) -100% Enterprise Funds 3,118,937 4,812,694 4,667,844 144,850 3,263,787 5% Internal Services 948,569 601,875 381,670 220,205 1,168,774 23% Westlake Academy 683,309 5,884,257 5,876,479 7,778 691,087 1% Capital 3,049,080 9,327,500 4,467,249 1 4,860,251 1 7,909,331 1 159% Total $13,304,976 $29,399,586 $26,089,720 1 $3,309,866 1 $16,614,842 1 257. As can be seen above, the FY 2012-13 budget shows the following changes and trends in fund balances for the Town's major funds: ® The Capital Projects Fund's fund balance will increase due to a proposed $8.5M issuance for Westlake Academy facility expansion. This increase as well as the ongoing implementation of the (5) Year Capital Improvement Program (CIP) will bring the fund balance to a proposed $3.3M. The CIP is reviewed, updated, and approved each year by the Town Council. The FM 1938/ Davis Blvd. streetscaping plan will begin in earnest this coming year and the final expenditures for the J. T. Ottinger/Dove Road improvements will wind down. We will also begin to implement the enhancement projects along SH 114/Hwy 170 during the 12-13 fiscal year and start reconstruction and drainage work on Dove Road east of FM 1938. ® The method for funding a second ground storage water tank for our water system is still under consideration. Because of that, it is proposed in this FY 12-13 budget to transfer, through an inter-fund loan, funds from the General Fund to the Utility Fund. The amount of $2,000,000 is proposed to be re-paid over five year with a $400,000 annual payment. However, if we can work out the ability to issue bonds for this project, that would be the preferred method of financing this needed facility and an inter-fund loan from the General Fund to the Utility Fund will not be necessary. Y Page 2 TRANSMITTAL LETTER ® A transfer from the General Fund to the Major Maintenance and Replacement Fund will continue in this fiscal year, with transfers out of $550,000. The expenditures will be used for plant/building maintenance at the Academy, trail repair work, replacement of an existing vehicle, as well as technology upgrades. A portion of the remaining balance will be held for the future replacement of the ladder truck for the Fire Department in FY 2016-17. Internal Service funds show a projected 23% increase of $220,205, due to the transfer of funds into the two major maintenance and equipment replacement funds (Utility and General), to accumulate funds for various repair and replacement items. The net change to Fund balance for Westlake Academy is positive due, in part, to a $300 thousand contribution from the Westlake Academy Foundation which is intended to help with the negative impact of the reduction in State funding for public schools across Texas. ® Special Revenue funds project a 13% decrease in total fund balance in the amount of $164,923 by the end of FY 2012-13. This reduction is primarily due to the Visitors Association Fund (i.e. Hotel -Motel Occupancy Tax Fund), where debt service payments are proposed to be transferred for the bond issue payment related to construction of the Westlake Academy Sam and Margaret Lee Arts & Sciences Center. As required by State law, the proposed FY 2011-12 municipal budget has been 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, high quality, municipal services to our residents and businesses. Service levels are in alignment with residential feedback regarding priorities from our most recent Direction Finders (citizens') survey results and the Town's Strategic Issues - focused Governance System (SIGS). In FY 2011-12 our previous strategic plan was redesigned into a comprehensive governance system and contains the Council -developed vision, mission and community value statements, an issues focused strategic plan, a strategy map, balanced score card, and financial allocations according to a program based budget. The goal is to increase our transparency with residents while providing the staff with clear directives and performance measures related to our comprehensive strategy map. FY 2012-13 PROPOSED 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 2012-13 with the theme of "Driving Service Excellence". This excerpt from the updated Financial Forecast for the Town's General Fund illustrates the trend for the next five years: DESCRIPTION ACTUAL FY 10-11 ESTIMATED FY 11-12 PROPOSED FY 12-13 FIVE YEAR PROJECTION FY 13-14 FY 14-15 1 FY 15-16 FY 16-17 FY 17-18 GENERAL FUND SECTION Beginning Fund Balance $3,731,332 $3,323,861 $4,226,543 $2,498,044 $2,601,693 $2,265,899 $2,140,582 $2,111,025 Total Revenues/Transfers In 6,308,147 6,169,127 5,518,605 6,049,681 6,183,870 6,321,468 6,462,566 6,607,255 Total Expenditures/Transfers Out 6,715,618 5,266,445 7,247,103 5,946,032 6,519,664 6,446,784 6,492,123 6,595,052 Net Total $3,323,861 1 $4,226,543 $2,498,044 $2,601,693 $2,265,899 $2,140,582 1 $2,111,025 $2,123,228 Total Restricted Funds 406,464 254,295 248,025 252,986 258,045 263,206 268,470 273,840 Ending Balance(projected) $2,917,397 $3,972,248 $2,250,019 $2,348,708 $2,007,854 $1,877,376 $1,842,554 $1,849,388 Operating Days 262 308 182 159 134 124 119 117 Excerpt from Five Year Forecast (General Fund section only) Page 3 TRANSMITTAL LETTER AD VALOREM TAX ANALYSIS Ad valorem taxes account for 21% of General Fund revenue ($1,183,514 proposed for FY 2012-13) and 4% of our overall revenues. This will be the third year the Town has assessed a property tax. Our ad valorem tax rate is the lowest for municipalities in the immediate area. The ad valorem tax rate per $100 of assessed valuation is proposed to remain at $.15684 for FY 12-13. This is less than the effective tax rate of $.19326 that we could levy. As a reminder, the effective tax rate is the tax rate calculated by a complex formula to determine the tax rate that could be levied to raise exactly the same amount of revenue as in the preceding fiscal year. Our assessed valuation increased by 11.2% for FY 12-13. However, the portion of this assessed valuation that we can actually use to levy an ad valorem tax decreased by 8%. This was due largely to tax abatements on Fidelity II and Deloitte University. Fidelity is eligible to receive these abatements in FY12-13; however, they were not eligible in FY 11-12 because they did not meet their employment targets required in our economic development agreements with them. However, even with these abatements lowering the portion of our assessed valuation on which we can levy our property tax in FY 12-13, we are able to use a lower tax rate than the effective tax rate because of; (a) on-going revenue streams, and (b) one-time sales tax revenue in FY 2011-12 from the Deloitte University project, as well as other businesses located in Westlake. The ad valorem tax rate used in this proposed FY 2012-13 budget and compared to the prior year rate is as follows: More property tax revenues than anticipated were received in the prior year. By being able to use those remaining funds to service our bond payment on the street improvements, we are able to lower the I&S rate; therefore, increasing the M&O rate to keep our proposed rate the same as FY 2011-12. The proposed FY 2012-13 tax rate of $0.15684 is 23% less than the effective rate we are allowed to use by law in FY 2011-12 of $0.19326 per $100 of the assessed valuation. Below is a table noting our prior year tax revenues as well as the proposed rate for FY 2012-13. Fiscal Year FY 11-12 Adopted Tax Rate FY 12-13 Proposed Tax Rate Variance M&O $0.138350 $0.141970 $0.003620 I&S $0.018490 $0.014870 $0.003620 Total $0.156840 $0.156840 $0.000000 More property tax revenues than anticipated were received in the prior year. By being able to use those remaining funds to service our bond payment on the street improvements, we are able to lower the I&S rate; therefore, increasing the M&O rate to keep our proposed rate the same as FY 2011-12. The proposed FY 2012-13 tax rate of $0.15684 is 23% less than the effective rate we are allowed to use by law in FY 2011-12 of $0.19326 per $100 of the assessed valuation. Below is a table noting our prior year tax revenues as well as the proposed rate for FY 2012-13. Fiscal Year Net Taxable Value Total Tax Rate Total Tax Revenue 2013 proposed $833,636,407 $0.156840 $1,307,483 2012 actual $913,119,313 $0.156840 $1,434,151 2011 actual $880,163,946 $0.160100 $1,257,246 Page 4 TRANSMITTAL LETTER FY 2012-13 BUDGET THEME: "DRIVING SERVICE EXCELLENCE" Over the course of the last several years, we have incorporated a 'theme' into our budget document to help guide and focus our efforts on the critical issues facing us for the coming budget year. • In FY 2009-10, the budget theme was "Critical Challenges, Critical Choices" as we initiated community -wide dialogue on how best to achieve our community's vision for Westlake, ensure our quality of life, as well as begin the task of identifying our challenges as it related to our future financial sustainability. In FY 2010-11, the budget theme was "Securing the Vision." After a lengthy community dialogue and Council discussions, the Council took the important step to institute our first ad valorem property tax to stabilize our revenue stream and shift from a revenue source to fund Town services that relied almost solely on a general sales and use tax. The decision reversed the preceding trend of depleting the General Fund and allowed for much needed reinvestment in our infrastructure. Decisions in FY10-11 led to the FY 2011-12 budget theme of "Investing in Our Future". This was because assessment of a small property tax has given us the ability to invest in the improvement of roadways and other infrastructure projects that will provide tremendous benefits to our residents and businesses over the next several years. In addition to the Town funded capital projects plan, Staff has worked hard to identify and secure infrastructure funding through public/private and inter -local funding partnerships, along with grant funding, to minimize the impact to our tax rate and General Fund while providing high- quality infrastructure. The results of the utilization of these non -Town resources to the benefit of Westlake can be seen in: ■ Construction of FM 1938/Davis Blvd, a $15 million dollar project funded primarily by State and Federal dollars ■ Dove Road/Pearson Lane intersection improvements, a new north entrance to Westlake Academy, as well as the Dove and J. T. Ottinger Road upgrades funded primarily by a $4.6 million dollar development agreement with Hillwood Properties. Landscaping of the medians on the soon to be completed FM 1938/Davis Blvd. project will be funded by a $670,000 Green Belt grant from TxDOT which helps us offset the associated costs for the streetscaping of this important north/south corridor. The selection of any budget theme is intended to bring into focus how resources are recommended to be prioritized and used in order to take the next step in achieving or creating our vision, mission and community values for Westlake. Over the history of our Town, budgets have been prepared with an eye toward being fiscally conservative, while providing for the highest quality of customer service that our residential population has come to expect in Westlake. In that light, the FY 2012-13 theme of "Driving Service Excellence" focuses on providing resources that will improve our ability to deliver excellent customer service, something that is integral to maintaining Westlake's quality of life and its status as a one -of -a -kind community. To achieve this focus of "Driving Service Excellence," the proposed FY 2012-12 budget reflects three major areas of emphasis as follows: Page 5 TRANSMITTAL LETTER ® Investment in Service Delivery Sustainability $714,260 ➢ Strategic Plan Vision Points Impacted: ■ We are Leaders ■ Service Excellence The following projects are allowable through prior/current funding, which was reserved through transfers to the General Maintenance & Replacement Fund (a fund established to continually set aside allocations for existing building refurbishment, as well as replacement of existing equipment/vehicles on an as needed basis). A portion of the reserve from the General Maintenance & Replacement Fund will fund the following in this fiscal year: Replacements/Repairs: ■ $ 49,000 - Fire Chief vehicle ■ $ 24,000 - Internally illuminated street signs on traffic signal poles ■ $ 21,250 - Fire hydrant repair and painting ■ $ 31,200 - Pump/motor repair/replacement at pump station Reserved for repairs/replacements/maintenance ■ $76,600 - Westlake Academy physical plant maintenance and building refurbishment ■ $ 10,000 - Trail repair work ■ $ 82,800 - HVAC at Westlake Academy, security system upgrades and refurbish classrooms ■ $ 31,500 - Technology upgrades Funds provided for future costs: ■ $ 276,100 towards replacement of our existing fire ladder truck in FY 2015-16 as well as on-going maintenance and replacement needs Additional funding allocated in the operating funds for the following: ■ $ 12,560 - Radio investment/communication (note: partially funded through the use of $4,000 from Court Security restricted fund) ■ $ 2,500 - Barricade /Cone replacement ■ $ 3,000 - Community `Code Red' emergency notification system ■ $ 2,650 - Fire equipment repair and maintenance ■ $ 12,000 - Marketing / Advertising / Promotional material ■ $ 23,100 - Pump station landscaping replacement, GIS conversion costs, ROW maintenance and additional State mandated water testing ■ $ 56,000 - Records Management/Document Control System -Laser Fiche to provide for scanning and electronic retrieval capabilities of Town records (note: partially - funded through shared allocations, $28,000 from GF, $14,000 from VA, $14,000 from OF ($12,500 from the Court Technology restricted fund will offset the $28,000 GF allocation)) ® Investment in Core Service Delivery Quality $ 152,369 ➢ Strategic Plan Vision Point Impacted: ■ Service Excellence $ 100,000 - Workforce Attraction and Retention: First year of a 2 -year program to fund for market pay adjustments (includes employer benefit costs) $ 16,425 - Maintenance of current payroll costs (health, property, vehicle, general liability) Page 6 TRANSMITTAL LETTER ■ $ 18,474 - Police Services: Cost increase in annual Keller Police services contract ■ $ 17,470 - Enhanced Professional Development Programs as well as increased funding for fuel and mileage adjustments ■ Addition of Part -Time Utility Billing Clerk: $-0- (Note: reduction in utility fund expenses and finance overtime will be used to offset this cost) ® Investment in Infrastructure (Capital Improvement Plan) $8,309,583 ➢ Strategic Plan Vision Point Impacted: • Sense of Place ■ We are Leaders ■ Service Excellence ■ $3,117,249 - Street, drainage, streetscape, and trail projects ■ $1,350,000 - Westlake Academy Facility Expansion ■ $2,000,000 - Water & sewer utility capital improvements ■ $1,842,334 - Hillwood Properties' remaining Dove/Ottinger Road improvements contribution FY 2011-12: INVESTMENTS AND ACHIEVEMENTS Over the past several months, we have accomplished many important milestones in pursuing our quest for Westlake to be a premiere place to live, work, and raise a family. These range from strategic -issues focused tasks to meeting various milestones, awards and recognitions, as follows: The Westlake Town Council received the award for "Council of the Year" from the Texas City Managers Association. This honor recognizes those governing bodies that have a demonstrated commitment to ethical service, put the welfare of the citizens above personal gain, function well as a governance unit, support staff professional development, and positively impact their community. The award nomination outlined the difficult ad valorem property tax decision, the continuing commitment to professional management and development, and the Westlake Town Council's ability to work together in difficult situations. This is a great honor and recognition for your commitment to Westlake. Congratulations! ® Received the International City/County Managers Association Community Sustainability Program Excellence Award for Westlake Windows: Transparent Government in Focus (TGIF). The category recognizes those communities who have shown a commitment to "innovation, excellence, and success in balancing that community's social, economic, environmental, and cultural needs". (ICMA). We submitted the award with an emphasis on our communication efforts as it related to financial sustainability, transparency with capital improvement efforts, neighborhood meetings, Westlake e -Tube, website redevelopment, email newsletters, and other forms of community outreach programs. ® Completed the first full year of operations for our Communications & Community Affairs office. Additional notifications and a streamlining of our community outreach was completed through the use of electronic email "mini -newsletters" which have allowed us to provide Westlake residents with more timely and relevant Westlake -related material on a bi- weekly (or more often, if needed) basis. Our Communications Office also assisted in preparation of materials for Westlake Academy to enhance our faculty recruitment and prospective parent outreach. These materials included: Page 7 TRANSMITTAL LETTER ■ Teacher recruitment brochures ■ Marketing brochures ■ Parent prospectus covering our school's three (3) IB curriculums The Town's previous strategic planning document was restructured from a traditional format to a comprehensive governance system which we call the Strategic Issues -focused Governance System (SIGS). The system follows a Balanced Scorecard format with a four - tiered strategy map, an issues -focused set of staff action items, outcome strategies that align with our community value statements and a program based budget allocation. ® Continued implementation of the Town Council's approved Five (5) Year Capital Improvement Plan (CIP). The public / private partnership between Hillwood Properties and the Town for Dove Road improvements will be finalized by mid-August. ® The Stagecoach Hills roadwork project is also now nearing completion, marking the end of a 3 year program to upgrade that subdivisions drainage, water distribution, and street systems. ® Construction on the State's $15 Million Phase 1 FM 1938 (Davis Blvd.) project will likely be finished in the 11-12 fiscal year. We have opened two initial north / south lanes of traffic to facilitate mobility, and expect the final completion this fall. Once road construction crews leave the area, Staff will begin working on the Town Council -approved streetscaping plan (contained in our CIP) to help identify this new and significant entry point and corridor for our community. ® The Town continued to receive recognition for the transparency and high quality of its financial reporting by: ■ 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) in FY 2011-12. This marks the 5th year in a row that we have received this honor for our municipal budget and the 3rd year for our educational services budget. ■ receiving recognition from the Association of School Business Officials International as a recipient of the International Award for Budget Excellence for the past three years. • completing the Comprehensive Annual Financial Report (CAFR), also known as the annual audit which has also been recognized through GFOA for the last five years. ® The Finance Department also created the Town's first Popular Annual Financial Report (PAFR) converting much of the budget document into an easy -to -read format for our residents. The goal is to encourage resident awareness as it relates to Town finances through the condensed version of the budget. The report provides an "overview of our financial position and policies, and conveys our commitment to delivering responsive services and programs in a fiscally responsible manner." (PAFR document). ® Invested significant time and effort in pursuing development of a facility plan for Westlake Academy, a process that is still underway. Deloitte University opened for full operation in October 2011 and has been an overwhelming success. While being built, it was the largest ($300 million) private construction project in Texas. It serves as Deloitte's state -of -the art national and international learning center for its employees bringing Deloitte employees to Westlake from all over the world. TRANSMITTAL LETTER ® What began as retail construction in FYI 0-1 1 came to fruition in FYI 1-12 with the opening of the new Quik Trip convenience store and the Centennial Fine Wine and Spirits store. This is Westlake's first retail development outside of Solana. It is located along the Town's western boundary at the northwest corner of SH 170 and SH377 and has already had a positive impact on our sales and use tax collection rates. ® In FYII-12 the Town neared completion of the implementation of a development agreement with Hillwood Properties whereby, as a part of commitments Hillwood had for development of Deloitte University, they invested $4.6 million in street improvements on Westlake's major roadways- Dove Road and JT Ottinger Road. ® Westlake was recognized again by Forbes Magazine as one of the wealthiest communities in the United States, with a median household income of $250,000. Our community shared this spotlight with Chevy Chase, MD, a city of twice our population size. The article mentioned Westlake's small town feel, limited population, and also touched on many of our high-profile residents. ® Westlake's Historic Preservation Society implemented their historic markers program with the first marker being located at the former Buck King homestead at Aspen and Pearson Lanes. The Society also held their first classic car show which was a major success both in terms of collector participation and attendance. The Town's open enrollment charter school, Westlake Academy, finished its ninth year of operations with another strong showing of academic and extra -curricular results by our students. This year's graduating class had an overall 89% success rate in obtaining the prestigious International Baccalaureate Diploma and the 28 graduates were offered collectively over $3.5 million in scholarships and grants. The Academy's enrollment continues to grow with a preliminary number of 675 students enrolled for 2012-13 School Year. ® Westlake Academy was also ranked among the best high schools in America. U.S. News & World Report ranked the school as 37th in the nation, 5th in Texas and 6th in national charter schools. They further designated the Academy as a Gold Medal recipient. Newsweek listed the school as the 18th best high school in the United States and the Washington Post shows them as 36th out of 1,800 schools across the nation. FY 2012-13 BUDGET PREPARATION METHODOLOGY Certain assumptions, parameters, and approaches were utilized as the FY 2012-13 budget document was prepared consistent with our overall Town philosophy of operating our community with a focus on fiscal responsibility. These include; readily identifying and tracking cost increases as they relate to maintaining or increasing service levels, identifying the use of fund balances and inter -fund transfers, delineating the amount for employee compensation increases, and clearly explaining the conservative approach used for revenue estimating. Also, the Town Council's financial policies (contained in the appendix of the budget), were followed in preparation of the numbers. Highlights of these approaches and parameters are: ® Maintained minimum fund balances to exceed Town Council policy requirements (90 day fund balance) Page 9 TRANSMITTAL LETTER ® Conservative revenue estimating that identified one-time and on-going revenues. With a focus on "drill down" analysis to determine our actual on-going sales tax revenue stream on an annual basis. Estimated expenditures for current levels of service in FY 2012-13 were achieved by: a) Adjusting for actual spending in FY 2011-12 b) Deducting one-time FY 2011-12 expenditures to create the adopted base budget for the coming fiscal year. Any anticipated cost increases, due to inflation or program cost escalations, were identified and separated from the current base budget in the form of "service level adjustments" (SLA's). ® Allocating resources to begin a two year process to move municipal employees to a market competitive position in terms of their compensation that mirrors our policy and practice in that regard for Westlake Academy faculty, (i.e. target being within 3% of the median of the market for our various municipal positions). This approach, recommended to be set by Council policy, has served our school well and Staff in turn recommends we utilize the same approach for the remainder of the organization, (i.e. target being within 3% of the market median for municipal employees as well). Most of our municipal positions are far below market in terms of compensation, even when taking into account the combined nature of many of our municipal positions (that they wear multiple "hats" in the execution of their job duties). This gives us the opportunity to not only invest in this important organizational investment and resource, but to address it in a way that reasonably assures we are market competitive and can attract and retain employees within reasonable economic boundaries. There would be no performance pay proposed for FY 12-13 since Staff is recommending addressing our pay market deficiencies over the next 2 fiscal years. ® All costs for base budgets, as well as service level adjustments due to cost increases/inflation, were "scrubbed" through review and analysis by the Town Manager and Finance Director. Programs of service were analyzed during budget review sessions with the Leadership Team. This helps ensures maximum efficiency, effectiveness, and utilization of our financial resources. The sustainability of the funding request, as well as the economy realities we currently face, are a primary concern during any review process. GOVERNING AND MANAGING FOR OUTCOMES As our organization has developed, we have created a framework through the progression from a traditional strategic plan to a comprehensive governance system that is outcome focused. The end result is to create a high performing team that is focused on the overall goals and objectives established by the Council, customer service, program provision, financial stewardship and organizational and personal development. This team focus, along with the governance system, makes Westlake a truly unique community that produces top-notch results with a small staff while maximizing the use of public funds for our Town. Further, the framework links together these critical governance and management decision making tools called "Governing and Managing for Outcomes" which is designed to integrate: ® Vision driven strategic planning, strategy mapping, and outcome based performance indicators ® Ten (10) year financial forecasting, budgeting, and performance measurement linked to strategic priorities, objectives, and outcomes to ensure a long term approach that provides financial sustainability Page 10 TRANSMITTAL LETTER ® 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 The proposed budget delineates the next twelve months of the Town's financial future and identifies the important projects and programs within our community. We will continue to focus on infrastructure development, community engagement, high-quality service provision and further develop the component of driving service excellence through our staff and program of services. All of these tasks are centered on the vision, values and missions statements the Council has identified as critical to our success. CLOSING THOUGHTS FOR FY 2012-13 As with all transmittal letters, this one is a little different than those from the previous few years. While we clearly understand the nation as a whole continues to try and recover from the economic downturn, the Town remains committed to budgeting and forecasting projections based on a fiscally conservative formula. We have accomplished many great things this past year through our use of partnerships and inventive strategies to govern our community. We have begun the process of reinvesting in our infrastructure and will continue to do so over the next several years - paying special attention to unique cost sharing opportunities, both public and private. Our overall goal is to provide our residents with a living experience that is second -to -none. The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted with public dollars collected on behalf of our citizens. We are stewards who are fully vested in the success of the Town of Westlake and Westlake Academy. 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. This is a challenge the Staff takes very seriously, one that we pursue with vigor every day. High commendation is due to the Leadership Team for their work on this proposed budget. Additional recognition and thanks are due to Director of Finance Debbie Piper, 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, on behalf of myself and the entire Town Staff, I would like to extend thanks and appreciation to the Westlake Town Council. Your countless volunteer hours, invested in governing Westlake to make it the best community we can be, is critical for our success. This year, all of your hard work and dedication was validated by receiving in the "Council of the Year" award. An honor that I know you will cherish, as it represents all the hard decisions, long debates, and many hours you put in each month, through your service as ambassadors for, and Council members of, the Town of Westlake! Sincerely yours, /f��j Phi Thomas E. Brymer Town Manager/Superintendent Westlake Academy Page 1 1 TRANSMITTAL LETTER VISION STATEMENT Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. VISION POINTS - 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. - LEADERSHIP A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. - 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. 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." Page 12 AD VALOREM PROPERTY TAX Revenue Allocation Fiscal year 2012/2013 Page 13 HISTORICAL TAX INFORMATION AMOUNT Total Certified Values Debt Total Fiscal Year $ 826,881,629 Protested Values Fund Rate Tax Rate H 7,888,336 Less Properties not under protest or not certified $0.01487 H 35,241,643 2011 tax ceilings $0.13835 $0.01849 H 36,375,201 Total Taxable Value $0.15620 $0.00390 (_) 833,636,407 Adopted Tax Rate Per /$100 Valuation (x) $ 0.15684 Estimated Tax Levy (_) 1,307,475 Estimated Percent of Collections (x) 100% Estimated Current Tax Collections (_) $ 1,307,475 TAX RATE DISTRIBUTION Tax Rate per $100 Percent Estimated Valuation of Levy Collections GENERAL FUND $0.14197 90.52% $1,183,514 DEBT SERVICE FUND $0.01487 9.48% $123,962 TOTAL $0.15684 100.00% $1,307,475 Page 13 HISTORICAL TAX INFORMATION Net General Debt Total Fiscal Year Taxable Value Fund Rate Fund Rate Tax Rate 2013 proposed $833,636,407 $0.14197 $0.01487 $0.15684 2012 actual $913,119,313 $0.13835 $0.01849 $0.15684 2011 actual $880,163,946 $0.15620 $0.00390 $0.16010 Page 13 THE TOWN OF :STLAKE BUDGET OVERVIEW & FRAMEWORK WA W 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. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION NTEG RITY ng Service E BUDGET OVERVIEW AND FRAMEWORK The Town of Westlake's 2013 fiscal year begins on October 1, 2012 and ends September 30, 2013. 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 proposed 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 proposed 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 2012-13 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. 5. The budget process includes a multi-year projection of all required capital improvements. Page 15 BUDGET OVERVIEW AND FRAMEWORK 6. Goals and objectives have been developed for each department and are incorporated into the evaluation of employees and performance of the organization. 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 General Fund, Westlake Academy Fund, Special Revenue Funds, Debt Service Fund, Enterprise Funds, Internal Service Funds, and Capital Projects Fund. 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 2011-12 and FY 2012-13 "Program Summary" of revenues and expenditures. Also included are sections detailing the Capital Improvement Plan and Long -Term Planning. The final two components include a Community Profile and an Appendix section. The Community Profile contains historical and current information regarding the Town of Westlake. The appendices section consists of a Glossary of Budget Terms, the Town's Fiscal and Budgetary Policy, Investment Policy, Strategic Plan and the Town ordinance related to the adoption of the budget (after adoption). The budget contains financial data spanning two fiscal years. The current budget year ending September 30, 2012 is presented in its original adopted form, as well as an amended estimate. Actual totals for the fiscal year ending September 30, 2011 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 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. Page 16 BUDGET OVERVIEW AND FRAMEWORK 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 TVDes 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 Finance, Administration, Building & Code Compliance, Fire/EMS, Public Works, Facilities and Grounds Maintenance, 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. The former Westlake Property Tax Reduction Sales Tax Fund received its funding from a '/2 cent sales tax levy that was previously 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 FY 2010-2011 year end and revenues are now being recorded in the General Fund. The Westlake Academy Fund incorporates all funds related to the Academy encompassing all operations and maintenance related to the school as well as State public school funding, Federal and state grants, and private donations used to support the daily school operations of the Academy. 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. 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. 5. 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. Page 17 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. 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: 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. 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. RELATIONSHIP BETWEEN FUNDS AND DEPARTMENTS Page 19 11 c i s Q O d D 30 N 18) O 4 O CL :U 2 6 Y N E c —~ 0 :)D O U O Z General Fund ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 413 Economic Development ✓ Visitors Association ✓ ✓ ✓ ✓ ✓ ✓ Cemetery Fund ✓ ✓ Lone Star Public Facilities ✓ Debt Service ✓ Utility Fund ✓ ✓ ✓ ✓ ✓ Utility Maintenance & Replacement ✓ General Maintenance & Replacement ✓ ✓ ✓ ✓ ✓ Capital Projects ✓ ✓ ✓ ✓ Westlake Academy ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Page 19 11 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 1st 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. A round -table meeting is subsequently held with the Town Manager, the finance staff and each department head for review. 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 fund. Page 20 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. FY 12/13 BUDGET CALENDAR MAR * ORIENTATION AND OVERVIEW OF 2012-13 BUDGET PROCESS * FIVE YEAR PROJECTION SPREADSHEETS DISTRIBUTED FOR INPUT * FORMS FOR CAPITAL PROJECTS AND MAJOR MAINTENANCE AVAILABLE * REVIEW OF CALENDAR AND PROCESSES WITH COUNCIL APR * YEAR-END ESTIMATE SPREADSHEETS DISTRIBUTED FOR 1 1 /12 AMENDMENTS * FINANCE AMENDS FY 11/12 BUDGET - BECOMES BASE FY 12/13 * DEPARTMENTS ACCESS BUDGET TO REMOVE ONE TIME REVENUES AND EXPENDITURES * OPERATING BASELINE BUDGET AVAILABLE FOR EDITING * SERVICE LEVEL ADJUSTMENT FORMS AVAILABLE ON SHARED DRIVE MAY * DETAIL REVIEW BY FINANCE DEPARTMENT * GOALS AND OBJECTIVES AVAILABLE FOR EDITING ON SHARED DRIVE * TOWN MANAGER AND FINANCE BEGIN REVIEWS WITH DEPARTMENTS JUN * BUDGET MODULE OPEN FOR CHANGES TO BUDGETS PER REVIEWS * PRESENTATION OF 5 -YEAR FORECAST ,JUL * PREPARATION FOR BUDGET RETREAT * PREPARATION OF POWER POINT AUG * BUDGET RETREAT * PUBLISH NOTICE REGARDING CONSIDERATION OF PROPERTY TAX * BUDGET WORKSHOP * NOTICE FOR PUBLIC HEARINGS POSTED IN NEWSPAPER * PRESENT PROPOSED FY12/13 MUNICIPAL BUDGET TO COUNCIL SEP * PUBLISH NOTICE OF PUBLIC HEARING ON BUDGET * PUBLIC HEARING ON BUDGET * ADOPTION OF FY 12/13 OPERATING BUDGET OCT * FISCAL YEAR 2012-2013 BEGINS Page 21 THE TOWN OF 1.STLA E FINANCIAL ANALYSIS ALL FUNDS This section gives the reader of this budget document an analysis of the amounts between the adopted budget for FY 2011/2012 and the estimated budget for the same year, as well as the variance explanations between the FY 2011/2012 estimated budget and the FY 2012/2013 proposed. Also several different tables are presented of all fund revenues, expenditures and fund balance amounts. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION TION INTEGRITY 4f Wool *,. Description General Sales Tax 1 Property Tax 2 Beverage Tax 3 Franchise Fees 4 Permits & Fees 5 Fines & Forfeits 6 Investment Earnings 7 Misc Income 8 Charge for Services 9 Hotel Tax Revenues 10 Total Revenues 1 1 Transfers In 12 Other Sources 13 Contributions 14 Total Other Sources 15 WA -Revenues 16 WA -Other Sources 17 Westlake Academy 18 THREE YEAR ANALYSIS COMPARISON REVENUES, EXPENDITURES, FUND BALANCE ALL SOURCES FISCAL YEAR 2012/2013 FY 10/11 FY 11/12 FY 12/13 Actual Estimated Proposed 4,609,625 » 3,800,000 20% 3,560,000 12% 1,257,246 5% 1,434,151 7% 1,307,483 4% 19,721 0% 32,750 0% 32,750 0% 586,836 2% 664,925 3% 664,925 2% 530,645 2% 476,150 27. 476,150 2% 605,705 2% 640,000 3% 560,000 2% 53,883 0% 42,715 - 39,965 0% 260,684 1% 180,013 1% 159,361 1% 3,140,125 127. 2,662,001 14% 2,713,085 9% 527,261 2% 535,000 3% 540,350 2% 11,591,731 43% 10,467,705 54% 10,054,068 34% 7,100,267 2% 2,166,830 11% 4,144,760 14% 2,152,000 3% 0 0% 8,500,000 29% 175,000 1% 725,000 4% 816,500 3% 9,427,267 35% 2,891,830 157. 13,461,260 46% 4,977,309 19% 5,782,921 30% 5,839,434 20% 659,704 2% 104,844 1% 44,823- 4,8230%5,637,013 5,637,01321% 5,887,765 sig 5,884,257 20% Total Revenues and 19 Other Sources $ 26,656,M$ 19,247,300 $ 29,399,586 Payroll Salaries 20 1,832,157 - 1,997,629 10% 2,056,805 3% Payroll Related 21 565,657 2% 630,988 3% 625,139 2% Total Payroll 22 2,397,814 10x 2,628,617 13% 2,681,944 10% Debt 23 2,277,551 10% 1,826,566 9% 1,834,266 2% ED Incentives 24 706,391 3% 240,758 1% 215,758 1% Insurance 25 29,725 ox 27,800 0% 29,776 0% Maintenance 26 234,089 1% 269,959 1% 259,047 1% Rent & Utilities 27 420,260 2% 399,149 2% 416,739 2% Service 28 1,827,168 - 2,534,448 13% 2,306,191 9% Supplies 29 142,811 1% 164,248 1% 164,669 1% Water Purchases 30 1,015,869 4% 1,110,600 5% 1,110,600- ,110,6004%Total TotalExpenditures 31 6,653,863 29% 6,573,528 3- 6,337,046 24% Transfers Out 32 7,100,267 31% 2,166,830 11% 4,144,760 16% Other Uses 33 0 07. 0 0% 0 0% Total Other Uses 34 7,100,267 31% 2,166,830 11% 4,144,760 16% Capital Outlay 35 126,326 1% 210,700 17. 38,700 0% Capital Projects 36 1,220,101 - 2,502,858 12% 7,010,790 27% Total Capital 37 1,346,428 67. 2,713,558 13% 7,049,490 277. WA - Expenditures 38 4,884,985 21% 5,947,146 29% 5,818,816 22% WA -Other Uses 39 603,000 3% 174,271 1% 57,663 0% Westlake Academy 40 5,487,985 24% 6,121,417 30% 5,876,479 23% $ 20,203,949 $ 26,089,720 $ (956,649) $ 3,309,866 $ 14,261,625 $ 13,304,976 -L-!L304 $ 16,614,842 Page 23 FY 10/11 FY 11/12 change change Amount Percent (809,625) -18% Total Expenditures 41 and Other Uses $ 22,986,357 13,029 66% Excess Revenues Over 42 (Under) Expenditures $ 3,669,655 Beginning Fund Balance 43 Ending Fund Balance 44 $ 10,591,970 14 261 625 $ 20,203,949 $ 26,089,720 $ (956,649) $ 3,309,866 $ 14,261,625 $ 13,304,976 -L-!L304 $ 16,614,842 Page 23 FY 10/11 FY 11/12 change change Amount Percent (809,625) -18% 176,905 14% 13,029 66% 78,089 13% (54,495) -10% 34,295 6% (11,168) -21% (80,671) -31% (478,124) -15% 7,739 1% (1,124,026) 10% (4,933,437) -69% (2,152,000) -100% 550,000 314% (6,535,437) -697. 805,612 0% (554,860) 0% 250,752 0% $ (7,408,7121 -28% 165,472 9% 65,331 12% 230,803 10% (450,985) -20% (465,632) -66% (1,925) -6% 35,870 15% (21,111) -5% 707,280 39% 21,437 15% 94,731 9% (80,336) -1% (4,933,437) -69% 0 0% (4,933,437) -69% 84,374 67% 1,062,161 (428,729) 0% 0% 633,432 0% 0 0% $ (2,782,408) -12% 6,304) $ 3,669,655 -126% 35% $ (956,648) -776 FY 12/13 �s FY 11/12 change change Amount Percent (240,000) -6% (126,668) -9% 0 0% 0 0% 0 0% (80,000) -13% (2,750) -6% (20,652) -11% 51,084 2% 5,350 1% (413,637) -4% 1,977,930 91% 8,500,000 0% 91,500 13% (60,021) -57% (3,508) 0% $ 10,152,286 53% 59,176 3% (5,849) -1% 53,327 2% 7,701 0% (25,000) -10% 1,976 7% (10,912) -4% 17,590 4% (228,257) -9% 421 0% 0 0% (236,481) -47. 1,977,930 91% 0 0% 1,977,930 91% (172,000) -82% (128,330) -2% (116,608) -67% (244,938) -47. $ 5,885,770 297. $ 4,266,515 -446% $ (956,648) -77. $ 3,309,866 25% 6 3 4 19 0 7 8 9 IN �y12 PROPOSED FUND BALANCES ALL SOURCES - VARIANCE REPORT FISCAL YEAR 2012/2013 Page 24 FY2012 vs FY2013 increase (decrease) Amount Percent FY2013 Total Total FY2013 0% Projected Revenues Expenditures Projected Percent -100% Beginning Fund and Other and Other Ending Fund per Fund Fund Name Balance Sources Uses Balance 4,860,251 General $3,309,866 25% 4,226,543 5,518,605 7,247,103 2,498,044 15% Fund 4B Economic 237,847 890,500 920,230 208,117 1% Development Economic - 215,758 215,758 - 0% Development Lone 13,576 45 - 13,621 0% Star Visitors 997,319 561,900 697,138 862,081 5% Association Debt 29,796 1,586,452 1,616,248 (0) 0% Service Cemetery 148,638 5,575 5,400 148,813 1% Fund Utility 2,970,299 4,807,119 4,662,444 3,114,974 19% Fund Utility 92,840 50,125 52,450 90,515 1% Maintenance General 855,729 551,750 329,220 1,078,259 6% Maintenance Westlake 683,309 5,884,257 5,876,479 691,087 4% Academy Capital 3,049,080 9,327,500 4,467,249 7,909,331 48% Projects TOTAL $13,304,976 $29,399,586 $26,089,720 $16,614,842 100% Page 24 FY2012 vs FY2013 increase (decrease) Amount Percent (1,728,499) -41% (29,730) -12% 0% 45 0% (135,238) -14% (29,796) -100% 175 0% 144,675 5% (2,325) -3% 222,530 26% 7,778 1% 4,860,251 159% $3,309,866 25% ALL FUNDS OVERVIEW FY 2012/2013 FUND BALANCE COMPARISON FY 10/11 ACTUAL vs. FY 11 /12 ESTIMATED • The estimated ending fund balance at September 30, 2012 totals $13,304,976; o a 7% decrease of $956,649 from the September 30, 2011 actual ending fund balance of $14,261,625 Fund # Fund Name FY 10/11 Actual FY 11/12 Estimated change Amount change Percent 100 General Fund 3,323,861 4,226,543 902,682 27% 200 46 Economic Development 267,577 237,847 29,730 -11% 210 Economic Development 0 0 0 0% 418 Lone Star 13,531 13,576 45 0% 220 Visitors Association 1,111,281 997,319 113,962 -10% 300 Debt Service 7,504 29,796 22,292 0% 255 Cemetery 148,963 148,638 325 0% 500 Utility Fund 3,103,441 2,970,299 133,142 4% 510 Utility Maintenance 42,640 92,840 50,200 118% 600 General Maintenance 691,535 855,729 164,194 24% 199 Westlake Academy 916,961 683,309 233,652 0% 410 Capital Projects 4,634,332 3,049,080 1,585,252 -34% TOTAL $14,261,625 $13,304,976 -$956,649 -7% The primary sources of this decrease are noted below by fund: General Fund increased $902,682 • General sales tax revenue increased $1,142,981 (Property tax reduction revenues are now being recorded in the General Fund. They were recorded in Property Tax Reduction Fund in FY 10/11). • Service expenses increased $183,614 o Capital outlay expenses increased $94,415 (Primarily due to the purchase of an attack fire brush truck). o Payroll and related expenses increased $79,442 (Funding for 1% market pay adjustments as well as one-time performance pay budgeted in FY 11/12). Capital Projects Fund decreased by $1,585,252 • Project expenditures totaled $1.6M (an increase of $687,735 from the prior year). • Based on 5 year CIP Project Description FY 10/11 Actuals FY 11/12 Estimated Change Aspen Lane Recon/Drainage $ 214,022 $ - $ 214,022 Mahotea Boone Reconst/Draina e 88,191 - 88,191 WA Dining Hall Improvements 78,085 - 78,085 Streets Survey 29,355 20,000 9,355 SH 1 14/Hwyl70 Enhancements 7,500 - 7,500 Roanoke Road Recon/Drain South 2,900 2,900 Westlake Academy Expansion - 35,000 35,000 Hwy 377 Westport Parkway Sign - 50,000 50,000 Westlake Portion of Hillwood Projects 4,740 85,000 80,260 Roanoke Road Recon/Drain North 3,348 192,443 189,095 FM 1938 Town Improvements 517,956 808,609 290,653 Stagecoach Hills Recon/Drain 1 7,220 1 450,000 1 442,780 $ 953,317 1 $ 1,641,052 1 $ 687,735 Page 25 ALL FUNDS OVERVIEW FY 11/12 ESTIMATED vs. FY 12/13 PROPOSED • The September 30, 2012 proposed ending fund balance totals $16,614,842; o a 25% increase of $3,309,866 from the September 30, 2012 estimated ending fund balance of $13,304,976 Fund # Fund Name FY 11/12 Estimated FY 12/13 Proposed change Amount change Percent 100 General Fund 4,226,543 2,498,044 1,728,499 -41% 200 413 Economic Development 237,847 208,117 29,730 -12% 210 Economic Development 0 0 0 0% 418 Lone Star 13,576 13,621 45 0% 220 Visitors Association 997,319 862,081 135,238 -14% 300 Debt Service 29,796 0 29,796 0% 255 Cemetery 148,638 148,813 175 0% 500 Utility Fund 2,970,299 3,114,974 144,675 5% 510 Utility Maintenance 92,840 90,515 2,325 -3% 600 General Maintenance 855,729 1,078,259 222,530 26% 199 Westlake Academy 683,309 691,087 7,778 0% 410 Capital Projects 3,049,080 7,909,331 4,860,251 159% TOTAL 1 $13,304,976 1 $16,344,842 1 $3,039,866 25% The primary sources for this decrease are indicated below by Fund: General Fund decreased $1,728,499 Contribution revenue decreased $325,000 (Academy will not transfer indirect costs to the Town during FY 2012/13) Transfers out increased $2,035,966 o This amount is composed primarily of a $2M transfer in (inter -fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Capital Projects Fund increased $4,860,251 • Contributions increased $416,500 • Service Expenses decreased $400,000 o Transfer of Texas Student Housing Funds to Westlake Academy Foundation in FY 2011/12 • Capital Project expense increased $2,826,198 (Based on 5 -Year CIP) • Bond Proceeds increased $8,500,000 (Proposed issuance for Academy facilities) o These proceeds will be used to fund construction of three new buildings at Westlake Academy; Cafetorium - includes stage, dressing area, storage and catering kitchen for dining and general purposes; approximately 9,600 sf. Three story Secondary School - includes 15 classrooms, flex and office space; will be designed to allow for future addition if needed; approximately18,900 sf. Field -house - will house locker rooms to be used for both athletics and PE; a visiting team locker room; storage for equipment; offices and space to be used for the PE program; approximately 9,600 sf. Page 26 PROPOSED REVENUES AND OTHER FINANCING SOURCES ALL SOURCES - VARIANCE REPORT FISCAL YEAR 2012/2013 19% 20% 3% I% 2% 07 5% 32% 07, 16% 0% 2% FY12 vs FY13 GF WA 48 ED VA CF DS CP LS OF UM GM FY 12/13 %of LE�Yfi 1/12 change change 100 199 200 210 220 255 300 410 418 500 510 600 Proposed Total atedAmount Percent General Sales Tax 2,490,000 890,000 180,000 - 3,560,000 12% 3,800,000 (240,000) -6% Property Tax 1,183,514 - - 123,969 1,307,483 4% 1,434,151 (126,668) -9% Beverage Tax 32,750 - 32,750 0.1% 32,750 0% Franchise Fees 664,925 664,925 2% 664,925 0% Permits/Fees 476,150 476,150 2% 476,150 0% Fines/Forfeits 560,000 - 560,000 2% 640,000 (80,000) -13% Interest 13,470 500 2,900 175 11,000 45 10,000 125 1,750 39,965 0% 42,715 (2,750) -6% Misc Income 51,277 - 18,650 - - - 89,434 - - 159,361 1% 180,013 (20,652) -11% Charge for Services - - 5,400 2,707,685 2,713,085 9% 2,662,001 51,084 2% Hotel Tax - 540,350 - - 540,350 2% 535,000 5,350 1% Total Revenues 5,472,086 890,500 180,000 561,900 5,575 123,969 11,000 45 2,807,119 125 1,750 10,054,068 347. 10,467,705 (413,637) -4% Transfers In 46,519 35,758 - 1,462,483 - 2,000,000 50,000 550,000 4,144,760 147. 2,166,830 1,977,930 91% Other Sources - - - 8,500,000 - - - 8,500,000 297. - 8,500,000 0% Contributions 816,500 816,500 37. 725,000 91,500 13% Total Other Sources 46,519 35,758 1,462,483 9,316,500 2,000,000 50,000 550,000 13,461,260 46% 2,891,830 10,569,430 365% WA Revenues 5,839,434 5,839,434 20% 5,782,921 56,513 1% WA Others Sources 44,823 44,823 0.2% 104,844 (60,021) -57% Westlake Academy 5,884,257 5,884,257 207. 5,887,765 (3,508) 07. Total All Funds $5,518,605 $5,884,257 $ 890,500 $ 215,758 $ 561,900 $ 5,575 $1,586,452 $9,327,500 $ 45 $4,807,119 $ 50,125 $ 551,750 $29,399,586 100% $19,247,300 $10,152,286 53% Page 27 ALL FUNDS OVERVIEW FY 2012/2013 REVENUES AND OTHER FINANCING SOURCES Comparing the FY 11 /12 estimated revenues to FY 12/13 proposed revenues: • Total Town revenues (all funding sources) are budgeted at $29,399,586 • A 53% increase of $10,152,286 from the FY 1 1/12 estimate Fund # Fund Name FY 11/12 Estimated FY 12/13 Proposed % of Total Change Amount Change Percent 100 General Fund 6,169,127 5,518,605 19% 650,522 -11% 199 Westlake Academy 5,887,765 5,884,257 20% 3,508 0% 200 4B Economic Development 950,500 890,500 3% 60,000 -6% 210 Economic Development 240,758 215,758 1 25,000 -10% 220 Visitors Association 556,550 561,900 2% 5,350 1 % 255 Cemetery 5,575 5,575 0% - 0% 300 Debt Service 1,642,320 1,586,452 5% 55,868 -3% 410 Capital Projects 455,800 9,327,500 32% 8,871,700 1946% 418 Lone Star 45 45 0% - 0% 500 Utility Fund 2,756,035 4,807,119 16% 2,051,084 74% 510 Utility Maintenance 50,200 50,125 0%(75)_0% 600 General Maintenance 532,625 551,750 2% 19,125 4% TOTAL $19,247,302 $29,399,586 1007. $10,152,286 53% The primary sources for this increase is noted below; General Fund decreased $650,522 • Contributions decreased by $325,000 (no indirect transfer from Academy during FY 12-13) • General Sales Tax decreased $155,000 (reduction of presumed one-time payments) • Fines and Forfeitures decreased $80,000 • Property Tax decreased $78,539 (based on certified tax rolls -see page 4 of Transmittal letter for additional detail) Capital Projects Fund increased $8,871,700 • Contributions increased $416,500 (primarily due to a $670K Green Belt grant from TxDot related to landscaping of the medians on FM 1938/Davis Blvd. • Bond Proceeds increased $8,500,000 (proposed Westlake Academy facility expansion) Utility Fund increased $2,051,084 • Transfers increased by $2,000,0000 (interfund loan from General Fund for construction of ground storage tank) WI Page 28 ALL FUNDS OVERVIEW • Charges for Services increased $51,084 (change in accounting practices - showing total revenues from waste management vs only showing net revenues after payments to vendor and state) Largest Revenue Streams: Capital Projects Fund 32% 0 91% Bond Proceeds $8,500,000 0 9% Contributions $ 816,500 2. Westlake Academy 20% 0 76% State Revenues $4,488,261 0 22% Local Revenues $1,281,934 3. General Fund 19% o 45% General Sales Tax $2,490,000 o 21% Property Tax- $1,183,514 o 12% Franchise Fees $ 664,925 0 10% Fines & Forfeits $ 560,000 0 9% Permits & Fees $ 476,150 4. Utility Fund 16% 0 73% Water Revenue $2,059,000 0 21% Waste/Sewer/Trash $ 528,600 Page 29 PROPOSED EXPENDITURES AND OTHER OPERATING USES ALL SOURCES - VARIANCE REPORT FISCAL YEAR 2012/2013 Payroll Salaries 28% GF 100 23% WA 199 4% 4B 200 1% 37 ED VA 210 220 0% CF 255 6% DS 300 17% CP 410 18% OF 500 0% UM 510 1% GM 600 FY 12/13 Proposed %of Total FY 11/12 Estimated FYI 2vsFYI 3 change change Amount Percent Payroll Related Payroll Salaries 1,527,768 255,225 273,812 2,056,805 8% 1,997,629 59,176 3% Payroll Related 625,139 - - 625,139 2% 630,988 (5,849) -1% Payroll & Related 2,152,907 255,225 273,812 2,681,944 10% 2,628,617 53,327 2% Debt - - 1,613,323 220,943 1,834,266 7% 1,826,566 7,701 07o ED Incentives - 215,758 - - - 215,758 1% 240,758 (25,000) -10% Insurance 23,678 - 6,098 29,776 0% 27,800 1,976 7% Maintenance 115,747 - 1,800 141,500 259,047 1% 269,959 (10,912) -4% Rent & Utilities 269,770 35,677 - 111,292 416,739 2% 399,149 17,590 4% Services 1,564,764 213,075 3,600 2,925 521,828 2,306,191 9% 2,534,448 (228,257) -9% Supplies 157,219 450 - - 7,000 164,669 17. 164,248 421 0% Water Purchases - - - - - - - - 1,110,600 - - 1,110,600 4% 1,110,600 - 0% Total Expenditures 2,131,177 215,758 249,202 5,400 1,616,248 2,119,261 6,337,046 24% 6,573,528 (236,481) -4% Transfers Out 2,944,319 - 920,230 - 192,711 - - - 87,500 - - 4,144,760 16% 2,166,830 1,977,930 91% Other Uses - - - - - - 0% - - 0% Total Other Uses 2,944,319 920,230 192,711 87,500 4,144,760 16% 2,166,830 1,977,930 917. Capital Outlay 18,700 - - 20,000 - - 38,700 0% 210,700 (172,000) -82% Capital Projects - 4,467,249 2,161,871 52,450 329,220 7,010,790 27% 2,502,858 4,507,933 180% Total Capital 18,700 4,467,249 2,181,871 52,450 329,220 7,049,490 27% 2,713,558 4,335,933 160% WA - Expenditures - 5,818,816 5,818,816 22% 5,947,146 (128,330) -2% WA- Other Uses 57,663 57,663 0% 174,271 (116,608) -67% Westlake Academy 5,876,479 5,876,479 23% 6,121,417 (244,938) -4% I Total All Funds $7,247,103 $5,876,479 $920,230 $215,7581 $697,138 $5,400 $1,616,248 $4,467,249 $4,662,444 $52,450 $329,220 $26,089,720 100% $20,203,949 $5,885,770 29% Page 30 ALL FUNDS OVERVIEW FY 2012/2013 EXPENDITURES AND OTHER OPERATING USES Comparing the FY 11/12 estimated expenditures to FY 12/13 proposed expenditures; • Total Town expenditures (all funding uses) are budgeted at $26,089,720 • A 29% increase of $5,885,770 from FY11/12 estimated expenditures FY 11/12 FY 12/13 % of Change Fund # Fund Name Estimated Proposed Total Amount L 100 General Fund 5,266,445 7,247,103 27% . 1,980,659 199 1 Westlake Academy (_6,121,417 5,876,479 22% 144,938) 200 413 Economic Development 980,230 920,230 3% (60,000) 210 Economic Development 240,758 215,758 1% (25,000) 220 Visitors Association 670,512 697,138 3% 26,626 255 Cemetery 5,900 5,400 0% (500) 300 Debt Service 1,620,028 1,616,248 6% (3,780) 410 Capital Projects 1 2,041,052 4,662,444 18% 2,426,198 418 Lone Star - -0% - 500 Utility Fund 2,889,177 4,662,444 18% 1,773,267 510 Utility Maintenance - 52,450 0% 52,450 600 General Maintenance 1 368,431 329,220 1% (39,211) 192,443 TOTAL $20,203,949 $26,089,720 1007. $5,885,770 The primary source of this increase is noted below: Capital Projects Fund increased $2,426,198 Page 31 Change Percent 38% -4% -6% 0% 61% 100% -11% 29% Project Description FY 11/12 Estimated Budget FY 12/13 Proposed Budget Variance 31 Stagecoach Hills Recon/Drain 450,000 41,680 (408,320) 99 Donation Expense 400,000 - (400,000) 32 Roanoke Road Recon/Drain North 192,443 - (192,443) 47 Hwy 377 Westport Parkway Sign 50,000 25,000 (25,000) 28 Streets Survey 20,000 30,645 10,645 42 Trail Connection at 114/Solana - 15,000 15,000 46 WA North Driveway Lighting - 40,000 40,000 41 Dove Vaquero to Terra Bella - 221,995 221,995 30 SH114/Hwy170 Enhancements - 345,460 345,460 20 FM1938 Town Improvements 808,609 1,353,469 544,860 45 Hillwood Misc Projects 85,000 1,044,000 959,000 48 Westlake Academy Expansion 35,000 1,350,000 1,315,000 $2,041,052 $4,467,249 $2,426,198 Page 31 Change Percent 38% -4% -6% 0% 61% 100% -11% 29% ALL FUNDS OVERVIEW General Fund increased $1,980,659 • Transfers Out to the Utility Fund $2,000,000 o This amount is composed primarily of a $2M transfer out (inter -fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Utility Fund increased $1,773,267 • Ground Storage Tank Capital Project $2,000,000 o This amount is composed primarily of a $2M transfer in (inter -fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Largest expenditures types include: 1. General Fund 29% 0 30%- Payroll and Related $2,152,907 o 29% - Operating Expenses $2,131,177 o 41 % - Transfers Out $2,944,824 2. Westlake Academy 22% 0 77% - Payroll and Related $4,492,764 0 13% - Services $ 749,490 0 5% - Supplies $ 286,576 0 5% - Other Operating $ 289,986 3. Utility Fund 19% 0 51%- Operating Expenses $2,393,073 0 47% - Capital Projects $2,219,796 Page 32 This page is intentionally blank Page 33 THE TOWN OF :STLAHE PERSONNEL AND ORGANIZATION PERFORMANCE LEADERSHIP TEAMWORK DEDICATION TION 111111 � r io INTEGRITY Service c AWA IkW'k. Texas Student Housing Executive Director [B7..rdSecretary Exemplary Governance Town Officials, Both Elected and Appointed, Exhibit Respect, Stewardship, Vision, and Transparency Town Manager _j Town Administrative Coordinator Administrative Assistants (3) Dining Hall Nurse Primary Principal PYP Coordinator PYP Teachers PYP Counselor PYP Special Ed. Librarian Town Secretary Planning & Development/ Building Administrative Clerk (.33) Facilities Maintenance/ Parks & Recreation Administrative 1 Clerk (.33) Administrative Intern Communications Public Works Technician w Part Time Utility l Billing Clerk Human Resources/ Information Technology Administrative Clerk (.33) Secondary Attorney Administrative Coordinator Administrative Assistants (3) Dining Hall Nurse Primary Principal PYP Coordinator PYP Teachers PYP Counselor PYP Special Ed. Librarian Town Secretary Planning & Development/ Building Administrative Clerk (.33) Facilities Maintenance/ Parks & Recreation Administrative 1 Clerk (.33) Administrative Intern Communications Public Works Technician w Part Time Utility l Billing Clerk Human Resources/ Information Technology Administrative Clerk (.33) Secondary Fire Chief Assistant to the Service PrincipalU p Town Manager Excellence and Court MYP/DP 6 Firefighter Administrator Public Service that is Coordinator 2 Lieutenants Param edics Responsive and MYP/DP Professional, while Teachers Supervisor balancing Efficiency, Effectiveness and MYP/DP e Financial Stewardship Counselors 7Assistant Judge Marshal MYP/DP Special Ed FinFinance Clerk Athletic j Deputy Clerk Part Time Clerk Director _ Personnel staffing levels for the Town of Westlake are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year (2,080 hours) equals one full-time equivalent position. An FTE position of .33 refers to a position that is funded for 686.40 hours per year. Page 35 Position Summary FY 2012/2013 Position IF FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Assistant to the Town Manager Actual Actual Actual Estimated Proposed change Town Manager 1.00 1.00 1.00 1.00 1.00 Assistant to the Town Manager 1.00 1.00 1.00 0.75 0.75 Part -Time Clerk 0.25 0.00 0.00 0.00 0.00 Part -Time Intern 0.50 0.50 0.75 0.75 0.75 0.00 0.50 0.25 (0.25) Planning & Development Director 1.00 1.00 1.00 1.00 1.00 Part -Time Clerk 0.33 0.00 0.00 0.00 0.00 Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 - Administrative Clerk 0.00 0.33 0.33 0.33 Town Secretary 1.00 1.00 1.00 1.00 1.00 Communications Director 0.00 0.00 Fire/EMS Coordinator 0.00 0.00 0.00 0.00 0.00 Fire Chief 1.00 1.00 1.00 1.00 1.00 Lt. Firefighter/Paramedics 2.00 2.00 2.00 2.00 2.00 Firefighter/Paramedics 7.00 6.00 6.00 6.00 6.00 Court Administrator 1.00 1.00 1.00 0.25 0.25 Supervisor 0.00 0.00 0.00 1.00 1.00 Deputy Clerk (1) 1.00 1.00 1.00 0.00 0.00 - Deputy Clerk (2) 1.00 1.00 1.00 1.00 1.00 Judge 1.00 1.00 1.00 1.00 1.00 - Marshal 1.00 1.00 1.00 1.00 1.00 Warrant Officer 0.00 0.00 0.00 0.00 0.00 Part -Time Clerk 0.25 0.50 0.50 0.50 0.50 Public Works Superintendent 1.00 1.00 1.00 1.00 1.00 Utility Technician 0.50 0.50 0.50 1.00 1.00 Part -Time Utility Billing Clerk 0.00 0.00 0.00 0.00 0.75 0.75 Facilities Maintenance Director 0.50 0.50 0.50 0.50 0.50 - Building Technician 0.25 0.25 0.25 0.00 0.00 Part -Time Clerk 0.33 0.00 0.00 0.00 0.00 - Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 0.00 Finance Director 1.00 1.00 1.00 1.00 1.00 - Finance Assistant 1.00 1.00 1.00 1.00 1.00 Finance Clerk 1.00 1.00 1.00 1.00 1.00 - Parks & Recreation Director 0.50 0.50 0.50 0.50 0.50 Park Technician 0.25 0.25 0.25 0.00 0.00 Information Technology Director 0.00 0.00 0.00 0.50 0.25 (0.25) Human Resources Director 1.00 1.00 1.00 0.50 0.75 0.25 Part -Time Clerk 0.33 0.00 0.00 0.00 0.00 - Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 Communications Director 0.00 0.00 0.00 1.00 1.00 27 25a til 175 Page 36 FY 2012/2013 BUDGET SUMMARY PERSONNEL SUMMARY Personnel staffing levels for the Town of Westlake are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year (2,080 hours) equals one full-time equivalent position. For firefighter/paramedic positions, an FTE of 2,912 hours per year, or an average of 56 hours per week is used. An FTE position of .50 refers to a position that is funded for 1,040 hours per year (2,080 x .50). The personnel count includes vacant positions. The total personnel staffing for the Town of Westlake in FY2013 is budgeted at 28 FTE positions. This represents an increase of .75 FTE from the FY2012 total of 27.25. • Public Works department added .75 positions for the addition of a utility billing clerk. • Information Technology changed departmental allocations of .25 FTE resulting in a decrease to this department and an increase to the Human Resources department. FY 11/12 FY 12/13 change change Dept # Department Name Estimated Proposed Amount Percent 11 Town Manager 2.50 2.50 - 9% 12 Planning & Development 1.33 1.33 - 5% 13 Town Secretary 1.00 1.00 - 4% 14 Emergency Services 9.00 9.00 - 32% 15 Municipal Court 4.75 4.75 - 17% 16 Public Works 2.00 2.75 0.75 10% 17 Facilities Maintenance 0.83 0.83 - 3% 18 Finance Dept 3.00 3.00 - 11% 19 Park & Recreation 0.50 0.50 - 2% 20 Information Technology 0.50 0.25 (0.25) 1% 21 Human Resources 0.83 1.08 0.25 4% 22 Communications 1.00 1.00 - 4% Total Employees 27.25 28.00 0.75 100% Town Manager 2.50 Planning & Development 1.33 Town Secretary 1.00 Emergency Services 9.00 Municipal Court 4.75 Public Works 2.75 Facilities Maintenance10.25 0.83 Finance Dept 3.00 Park & Recreation.50 Information TechnologyHuman Resources1.08Communications1.00 Page 37 Employee Allocations by Fund Visitor ■ Utility Fund General Utility Visitor Fund, 2.71, Department Name Fund Fund Fund TOTAL 3.29, 9/ Town Manager 1.98 0.26 0.26 2.50 12% Planning & Development 1.33 - - 1.33 Town Secretary 1.00 - - 1.00 Emergency Services 9.00 - - 9.00 Municipal Court 4.75 - - 4.75 Public Works 0.75 2.00 - 2.75 Facilities Maintenance 0.42 - 0.42 0.83 Finance Dept 1.25 1.00 0.75 3.00 Park & Recreation 0.25 - 0.25 0.50 Information Technology 0.25 - - 0.25 Human Resources 1.03 0.03 0.03 1.08 Communications - - 1.00 1.00 ■ General Total Employees 22.00 3.29 2.71 28.00 Fund, 22.00, 79 As of 2011, there were 992 residents in the Town of Westlake. For FY2013 this equals a ratio of 35.43 residents per each full-time equivalent employee. This is a decrease of .98 based on the FY2012 FTE postions of 27.25. Employees by Classsification Department Name Full Part Time Time TOTAL ■ Full Time, Town Manager 1.75 0.75 2.50 26.50, Planning & Development 1.33 - 1.33 95% Town Secretary 1.00 - 1.00 Emergency Services 9.00 - 9.00 Municipal Court 4.75 - 4.75 Public Works 2.00 0.75 2.75 Facilities Maintenance 0.83 - 0.83 Finance Dept 3.00 - 3.00 Park & Recreation 0.50 - 0.50 - Information Technology 0.25 - 0.25 Human Resources 1.08 - 1.08 Communications 1.00 - 1.00 ■ Part Total Employees 26.50 1.50 28.00 Time, 1.50,5% Page 38 This page is intentionally blank Page 39 PERFORMANCE LEADERSHIP TEAMWORK DEDICATION THE TOWN OF :STLAKE GENERAL FUND 0 INTEGRITY �� � � � c Service Exp 2C 21 2L '24 22- 2A 2,' 2E 2i 2E 25 3C 31 3' '34 32- 34 3� 3E 37 General Fund Program Summary Fiscal Year 2012/2013 EXPENDITURES & OTHER USES Actual FY 10/11 Adopted Budget FY 11/12 Estimated Budget FY 11/12 Proposed Budget FY 12/13 REVENUES & OTHER SOURCES 1,151,485 1,161,731 1,165,596 1,202,768 General Sales Tax On-going 799,043 1,737,500 1,970,000 1,965,000 General Sales Tax One-time 377,976 - 350,000 200,000 General Sales Tax WA Indirect 325,000 325,000 325,000 325,000 Property Tax 1,226,689 1,156,842 1,262,053 1,183,514 Hotel Tax - - - 23,678 Contributions 175,000 304,100 325,000 1 15,747 Charge for Services - - - 269,770 Beverage Tax 19,721 17,750 32,750 32,750 Franchise Fees 586,836 582,550 664,925 664,925 Permits & Fees 520,645 480,890 476,150 476,150 Fines & Forfeitures 605,705 536,611 640,000 560,000 Investment Earnings 10,408 15,035 13,470 13,470 Misc Income 96,079 52,700 63,929 51,277 Total Revenues 4,743,102 5,208,978 6,123,277 5,472,086 Transfers In 1,508,045 38,350 45,850 46,519 Other Sources 57,000 - - - TotalOtherSources 1,565,045 38,350 1 45,850 46,519 TOTAL REVENUES & OTHER SOURCES 6,308,147 5,247,328 6,169,127 5,518,605 EXPENDITURES & OTHER USES 3,731,332 3% 0% (5,000) Payroll Salaries 1,151,485 1,161,731 1,165,596 1,202,768 Payroll Salaries - WA Indirect 325,000 325,000 325,000 325,000 Payroll Related & Benefits 565,657 633,278 630,988 625,139 Supplies 139,482 150,991 155,918 157,219 Services 1,303,505 1,451,470 1,487,120 1,564,764 Insurance 24,977 24,822 22,966 23,678 Repair & Maintenance 129,639 113,479 112,109 1 15,747 Rent & Utilities 289,312 251,860 269,695 269,770 Interfund Advance - - - Debt - - - - Capital Outlay 94,285 190,000 188,700 18,700 Capital Projects - - - Total Expenditures 4,023,344 4,302,630 4,358,091 4,302,784 Transfers Out - Operating 37,633 636,936 378,354 394,319 Transfers Out - Non Operating 2,654,641 530,000 530,000 2,550,000 Total Other Uses 2,692,274 1,166,936 908,354 2,944,319 TOTAL EXPENDITURES & OTHER USES 6,715,618 5,469,566 5,266,445 7,247,103 Proposed FY 12/13 Vs Estimated FY 11/12 3,731,332 3% 0% (5,000) -43% (150,000) 0% 1% -6% (78,539) 0% - -100% (325,000) 0% 0% 0% 0% 0% 0% 0% -90% -13% (80,000) 0% -1% -20% (12,652) -117. (651,191) 1% 669 0% 38% 1% 669 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 -11% (650,522) 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 (407,471) (222,238) 902,682 1 (1,728,499)1 -291% (2,631,181) 38 35 4C 41 4� 4- 44 4,' 4E 47 4E 45 5C FUND BALANCE, BEGINNING 3,731,332 3% 37,172 0% - -1% (5,849) 1% 1,301 5% 77,644 3% 712 3% 3,638 0% 75 0% - 0% 262 -90% (170,000) 0% 2,800 -1% (55,307) 4% 15,966 381% 2,020,000 224% 2,035,966 38% 1,980,659 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 (407,471) (222,238) 902,682 1 (1,728,499)1 -291% (2,631,181) 38 35 4C 41 4� 4- 44 4,' 4E 47 4E 45 5C FUND BALANCE, BEGINNING 3,731,332 3,323,861 3,323,861 4,226,543 FUND BALANCE, ENDING 3,323,861 3,101,622 4,226,543 2,498,044 Restricted/Assigned/Com miffed Funds 406,464 197,800 254,295 248,025 UNASSIGNED FUND BALANCE, ENDING 2,917,397 2,903,822 3,972,248 2,250,019 # Days Operating 262 215 308 182 Restricted/Assigned/Committed Funds 39 -41% (1,728,499) 40 -2% (6,270) C Court Tech - $12.5K 100 10112 00 000 78,079 66,000 92,508 84,633 C Court Sec - $4K 100 10113 00 000 103,549 89,000 106,247 107,560 C Court Efficiency 100 10116 00 000 5,148 2,800 5,852 6,144 R Reforestation - $170K 100 10110 00 101 190,540 16,000 20,540 20,540 R Street Escrow (TB/RA) 100 10110 00 TOTAL RESTRICTED/ASSIGNED/COMMITTED 102 29,147 24,000 29,147 29,147 Page 41 27% 902,682 39 -41% (1,728,499) 40 -2% (6,270) 41 -43% (1,722,229) 42 -41% (126) 43 -9% (7,875) 1% 1,312 5% 293 0% - 0% 44 45 46 47 48 49 50 GENERAL FUND Revenues and Transfers In FUND OVERVIEW Total General Fund revenues and transfers in for FY 2012-13 are projected to be $5,518,605 • An 11% decrease of $650,522 from the FY 2011-12 estimated revenues and transfers in of $6,169,127 o General Sales Tax decreased $155,000 o Property Tax decreased 78,539 o Contributions decreased $325,000 - Academy indirect payroll costs o Municipal Court fines and forfeitures decreased $80,000 o Misc Income decreased $12,652- Facility Rental income Revenue Type FY 11/12 Estimated FY 12/13 Proposed FY 12/13 % of fft change amount change percent General Sales Tax 2,645,000 2,490,000 45% 155,000 -6% Property Tax 1,262,053 1,183,514 21% 78,539 -6% Contributions 325,000 - 0% 325,000 -100% Beverage Tax 32,750 32,750 1% - 0% Franchise Fees 664,925 664,925 12% - 0% Permits and Fees 476,150 476,150 9% - 0% Fines & Forfeitures 640,000 560,000 10% 80,000 -13% Interest 13,470 13,470 0% - 0% Misc Income 63,929 51,277 IT. 12,652 -20% Transfer In 45,850 46,519 1% 669 1 % TOTAL $6,169,127 $5,518,605 100% -$650,522 -11% FY 12/13 Proposed Revenues Page 42 FUN® OVERVIEW General Sales Tax • Sales tax receipts comprise 45% of FY 2012-13 General Fund revenues. • Sales taxes for the General Fund are budgeted to decrease by $155,000. • On-going sales tax is anticipated to decrease by $5,000 based on current year trend and analysis. • Presumed one-time amounts are projected to decrease by $150,000 (as an effort to be conservative with this type of projection). • 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 $4.75 $4.50 $4.25 $4.00 $3.75 10 Year General Sales Tax Analysis $3.50 Year $3.25 ' .2 $3.00 $833,636,407 v+ $2.75 4 $2.50 4 :4 o $2.25 $880,163,946 - $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 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 FY 12/13 estimated projected ■ Base Sales Tax []Economic Development Agreement ■ Audit Payment ■ Presumed One -Time Payment Development Corporation Fund. Property Tax • Property tax receipts comprise 21 % of FY 2012-13 General Fund revenues. • FY 2010-11 was the first year the Town of Westlake imposed an ad valorem property tax. • The total tax rate of $.15684 will remain unchanged for FY 2012-13 Fiscal Net Taxable General Year Value Fund Rate 2013 proposed $833,636,407 $0.14197 2012 actual $913,119,313 $0.13835 2011 actual $880,163,946 $0.15620 Page 43 Debt Fund Total Tax Rate Rate $0.01487 $0.15684 $0.01849 $0.15684 $0.00390 $0.16010 FUND OVERVIEW Contributions • Contributions from Westlake Academy for payment of indirect payroll costs of $325,000 were not budgeted for FY 2012-13. 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 2012-13. 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 2012/2013 are $476,150 are based on 10 new home permits • No major permits/fees are anticipated for FY 2012-13. $2.25 $2.00 $1.75 $1.50 c $1.25 c $1.00 $0.75 $0.50 $0.25 $0.00 10 Year Permit and Fee Revenue An X0.531 $0476 $p 476 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 FY 12/13 estimated projected Page 44 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 2012-13. $1,200 $1,000 W $800 M $600 0 $400 t ~ $200 $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 FY 12/13 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 Visitor Association Fund $ 9,019 0 Funds represent operating expenditures for Department 22 - Communications & Community Affairs • Transfer in from the Utility fund $37,500 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 $1.4M) these funds will be paid to the City of Fort Worth in compliance with the wholesale water customer agreement. Page 45 FUND OVERVIEW" Expenditures and Transfers Out Total General Fund expenditures and transfers out for FY 2012-13 are projected to be $7,247,103 o A 38% increase of $1,980,659 from the FY 2011-12 estimated expenditures and transfers out of $5,266,445. o This amount is composed primarily of a $2M transfer out (inter -fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five 5 ears Expense Type FY 11/12 Estimated FY 12/13 Proposed % of total change amount change percent Payroll & Related 2,121,584 2,152,907 30% 31,323 1 % Operating Expenses 2,047,807 2,131,177 29% 83,370 4% Capital Outlay/Projects 188,700 18,700 017. 170,000 -90% Transfers Out 908,354 2,944,319 41% 2,036,471 224% TOTAL $ 5,266,445 $ 7,247,103 100% $ 1,980,659 3817o 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. Payroll/Salaries and Related Taxes/Insurance • Comprise 30% of expenditures with a total of $2,152,907 • This is a 1 % increase of $31,323 from the FY 2011-12 estimated payroll expenditures $2,121,584 o This increase includes a $100,000 market pay increase (inclusive of taxes and insurance) for work force attraction and retention and is the first year of a 2 year program. A portion of this increased expenditure is subsidized by transfers in from the Utility Fund ($1 OK) and the Visitors Association Fund ($1 OK). o Another portion of this increase ($18,096) is for the addition of a part time utility billing clerk that will be subsidized 100% by a transfer in from the Utility Fund and offset by a reduction of overtime in the Finance Department o Performance pay budgeted in FYI 1/12 of approximately $46K was not budgeted in FY 2012-13. o Payroll taxes and insurance will decrease by $18,648 for FY 2012-13 due in large part to a reduction in medical insurance costs. • 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 Visitors Association Fund. o Operating transfers in from the Utility Fund are $273,812 o Operating transfers in from the Visitors Association Fund are $255,225 Operating Expenditures • Comprise 29% of expenditures with a total of $2,131,177 • The is an increase of $83,370 from the FY 2011-12 estimated expenditures of $2,047,807 c The biggest portion of this increase ($77,644) is related to service expenditures. ■ Records Management Loser Fische $27,800 ■ Keller Police Contract $18,474 ■ FM 1938 ROW Landscaping $10,000 ■ Training/Seminars/Meetings $12,835 Page 46 FUND OVERVIEW Capital Outlay • Comprises .3% of expenditures with a total of $18,700 • This is a decrease of $170,000 due to the purchase of an Attack Fire Truck for the Fire department in the prior year. Transfers Out • Comprise 41 % of expenditures with a total of $2,944,824 and includes these transfers o Increase - Transfer out to Utility Fund $2M - for ground storage tank project o Increase - Transfer out to Debt Service Fund $50,966 o Increase - Transfer out to General Maintenance Fund $20,000 o Decrease - Transfer out to Capital Projects Fund ($35,000) Fund Balance Adopted vs Estimated FY 11/12 Adopted FY 11/12 Estimated Change Percent Change Amount Receipts 5,208,978 6,123,277 18% 914,299 Transfers In 38,350 45,850 20% 7,500 Deductions 4,302,630 4,358,091 1% 55,461 Transfers Out 1,166,936 908,354 -22% (258,583) Net $ (222,238) $ 902,682 -323% $ 718,677 Beginning Fund Balance 3,323,861 3,323,861 0% - Ending Fund Balance 3,101,622 4,226,543 36% 1,124,921 Designated funds 197,800 254,295 29% 56,495 Undesignated Fund Balance $ 2,903,822 $ 3,972,248 37% $ 1,068,426 Operating Days 215 308 43% 93 • The audited beginning fund balance as of October 1, 2011 was $3,323,861 • FY 2011-12 Adopted Budget o Projected an excess of expenditures and other financing uses over revenues and other financing sources by $(222,238) due primarily to a transfer out to the General Maintenance and Replacement Fund of $530,000. This would have resulted in a budgeted fund balance of $2,903,822. FY 2011-12 Estimated Budget o Projects an excess of revenues and other financing sources over expenditures and other financing uses by $902,682. o This represents an increase in fund balance of $718,677 from the adopted budget and is due primarily to the following: ■ General Sales tax increased $582,500 (Primarily due to additional presumed one-time payments, audits and more than anticipated revenues related to our economic development agreement with Deloitte) ■ Property Tax increased $105,211 (Adopted budget was based on preliminary certified numbers. The values were updated subsequent to approval of the budget) ■ Beverage Tax Increased $15,000 (Additional beverage taxes due to the opening of Deloitte University) Page 47 FUN® OVERVIEW • Contributions increased $20,900 ■ Franchise fees increased $82,375 (Supplemental payment of $18K received in current year as well as a first time large payment receipt when typically a minimal amount) • Citation revenue increased $104,389 ■ Miscellaneous Income increased $11,229 (Rental income for Redeemer Church increased due to additional space they leased during the current year) ■ Services expenses increased $35,650 ■ Rent & Utility expenses increased $17,835 ■ Transfers Out decreased $258,583 (Due to additional sales tax receipts being paid from 4B Economic Development Fund; therefore, reducing funds needed from General Fund for debt service) The ending fund balance as of September 30, 2012 is estimated at $4,226,543 The undesignated balance of $3,972,248 represents coverage for 308 operating days. FY 2012-13 Proposed Budget o Projects an excess of expenditures and other financing uses over revenues and other financing sources of $(1,728,499) ■ due primarily to a transfer out to the Utility Fund of $2M for the ground storage tank project. o Results in a budgeted ending fund balance of $2,498,044 o The unassigned balance of $2,250,019 represents coverage for 182 operating days Estimated vs Proposed FY 11/12 Estimated FY 12/13 Proposed Change Percent Change Amount Receipts 6,123,277 5,472,086 -11% (651,191) Transfers In 45,850 46,519 1% 669 Deductions 4,358,091 4,302,784 -1% (55,307) Transfers Out 908,354 2,944,319 224% 2,035,966 Net 902,682 (1,728,499) 147% 1,330,136 Beginning Fund Balance 3,323,861 4,226,543 27% 902,682 Ending Fund Balance 4,226,543 2,498,044 -41% (1,729,004) Designated funds 254,295 248,025 -2% (6,270) Undesignated Fund Balance $ 3,972,248 $ 2,250,019 -43% $ (1,722,229) Operating Days 308 182 Page 48 This page is intentionally blank Page 49 THE TOWN OF :STLAKE 4B ECONOMIC DEVELOPMENT FUND The 4B Economic Development Fund collects a '/2 cent sales tax to be allocated to qualified development projects. The 4B Fund has been committed to the repayment of the debt incurred for the Town's Civic Campus project. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION 4F INTEGRITY" --a. NM=ft= �c Service Exp 1F 2( 21 2, 2: 21 2; 2� 2; 2F 21, 3( 31 3: 3; 3, 3! 3t 413 Economic Development Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES & OTHER SOURCES 38 -12% (29,730) General Sales Tax on-going 1,218,487 687,500 950,000 890,000 General Sales Tax one time - - - - Property Tax 42 Hotel Tax Charges for Services Contributions Beverage Tax Franchise Fees Permits & Fees Fines & Forfeitures Investment Earnings 396 500 500 500 Misc Income - - - - Total Revenues 1,218,883 688,000 950,500 890,500 Transfers In - - - - Total Other Sources 1,218,8 - - 890,500 EXPENDITURES & OTHER USES Payroll / Salaries Payroll Related & Benefits PR Transfer In PR Transfer Out Supplies Services Insurance Repair & Maintenance Rent & Utilities Interfund Advances Debt Capital Outlay Economic Development Incentives Capital Projects Total Expenditures Transfers Out 1,248,614 717,730 980,230 920,230 Total Other Uses 1,248,614 717,730 980,230 920,230 TOTAL EXPENDITURES & OTHER USES 1,248,614 717,730 980,230 JIF 920,230 Proposed FY 12/13 vs Estimated FY 11/12 37 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 (29,731) (29,730) (29,730) (29,730) 1 0% 37 32 39 4C 41 42 4: 4, 4: 4f 4', 4£ FUND BALANCE, BEGINNING 297,308 267,577 267,577 237,847 FUND BALANCE, ENDING 267,577 237,847 237,847 208,117 Restricted/Assigned/Committed Funds 267,577 237,847 237,847 208,117 ASSIGNED FUND BALANCE, ENDING - - Restricted/Assigned/Committed Funds Assigned 267,577 237,847 237,847 208,117 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 267,577 237,847 237,847 Page 51 -11% (29,730) 38 -12% (29,730) 39 -12% (29,730) 40 0% - 41 0% 42 43 -12% (29,730) 44 0% 45 0% 46 0% 47 48 FUND OVERVIEW 4B ECONOMIC DEVELOPMENT FUND The 4B Economic Development Fund collects a 1/2 cent sales tax to be allocated to qualified development projects. The 4B Fund has been committed to the repayment of the debt incurred for the Town's Civic Campus project. Revenues • FY 12/13 revenues are projected to be $890,500 • A 6% decrease of $60,000 from the FY 1 1 / 12 estimated budget of $950,500 Expenditures and Other Uses • Transfers out to the Debt Service Fund for FY 12/13 are projected at $920,230 • This represents the total of the anticipated revenues as well as an inter -fund repayment from the Utility Fund in the amount of $29,731. Page 52 413 Economic Development Fund Interfund Repayment Schedule Due from Utility Fund 0 Nov -03 $ 533,152 $ - $ 87,189 $ - $ 87,189 $ 445,962 1 Aug -05 $119,622 $293,842 $119,688 $533,152 29,731 Due Beginnig GW Farms Knox Road Knox Road Ending Pymt # Date Balance Waterline Connection Connection TOTAL Balance 0 Nov -03 $ 533,152 $ - $ 87,189 $ - $ 87,189 $ 445,962 1 Aug -05 445,962 7,975 13,777 7,979 29,731 416,232 2 Aug -06 416,232 7,975 13,777 7,979 29,731 386,501 3 Aug -07 386,501 7,975 13,777 7,979 29,731 356,770 4 Aug -08 356,770 7,975 13,777 7,979 29,731 327,039 5 Aug -09 327,039 7,975 13,777 7,979 29,731 297,308 6 Aug -10 297,308 7,975 13,777 7,979 29,731 267,577 7 Aug -11 267,577 7,975 13,777 7,979 29,731 237,846 8 Aug -12 237,846 7,975 13,777 7,979 29,731 208,116 9 Aug -13 208,116 7,975 13,777 7,979 C 29,731D 178,385 10 Aug -14 178,385 7,975 13,777 7,979 29,731 148,654 11 Aug -15 148,654 7,975 13,777 7,979 29,731 118,923 12 Aug -16 118,923 7,975 13,777 7,979 29,731 89,192 13 Aug -17 89,192 7,975 13,777 7,979 29,731 59,461 14 Aug -18 59,461 7,975 13,777 7,979 29,731 29,731 15 Aug -19 29,731 7,975 13,777 7,979 29,731 (0) TOTAL $ 119,622 $ 293,842 $ 119,688 $ 533,152 Page 53 THE TOWN OF :STLAKE ECONOMIC ir-1947 JV- 0A DEVELOPMENT FUND The Economic Development Fund was set up to maintain all receipts and disbursement of funds pertaining to agreements between the Town and various corporations for economic development. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION 4F INTEGRITY" --a. NM=ft= �c Service Exp I7 IE 15 2C 21 2' 22 2A 2,' 2E 2? 2E 25 3C 31 3' 32 3A 3� Economic Development Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Adopted Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES & OTHER SOURCES 0 Payroll / Salaries 0 0 Payroll Related & Benefits General Sales Tax 670,632 150,000 205,000 180,000 Property Tax - - - - Hotel Tax Repair & Maintenance Rent & Utilities Charges for Services Debt Capital Outlay Contributions Economic Development Incentives 706,391 185,758 240,758 215,758 Capital Projects - - - - Beverage Tax 706,391 185,758 240,758 215,758 Transfers Out 153 - - - Total Other Uses Franchise Fees TOTAL EXPENDITURES & OTHER USES 706,543 185,758 240,758 215,758 Permits & Fees Fines & Forfeitures Investment Earnings 153 Misc Income - Total Revenues 670,785 150,000 205,000 180,000 Transfers In 35,758 35,758 35,758 35,758 Total Other Sources 35,758 35,758 35,758 35,758 OTAL REVENUES & OTHER SOURCES 706,543 185,758 240,758 215,758 EXPENDITURES & OTHER USES 0 Payroll / Salaries 0 0 Payroll Related & Benefits 0 PR Transfer In 0 0 PR Transfer Out 0 Supplies 0 0 Services 0 Insurance 0 0 Repair & Maintenance Rent & Utilities Interfund Advances Debt Capital Outlay Economic Development Incentives 706,391 185,758 240,758 215,758 Capital Projects - - - - Total Expenditures 706,391 185,758 240,758 215,758 Transfers Out 153 - - - Total Other Uses 153 TOTAL EXPENDITURES & OTHER USES 706,543 185,758 240,758 215,758 Proposed FY 12/13 vs Estimated FY 11/12 361 EXCESS REVENUES OVER(UNDER) EXPENDITURES 10 1 0 1 0 1 0 11 0% 36 3i 3E 35 4C 41 FUND BALANCE, BEGINNING 0 0 0 0 FUND BALANCE, ENDING 0 0 0 0 Restricted/Assigned/Committed Funds 0 0 0 0 UNASSIGNED FUND BALANCE, ENDING 0 0 0 0 42 Restricted/Assigned/Committed Funds 43 44 45 46 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 0 0 0 0 Page 55 0% 37 0% 38 0% 39 0% 40 0% 41 42 0% 43 0% 44 0% 45 0% 46 0% 47 0%1 48 FUND OVERVIEW ECONOMIC DEVELOPMENT FUND The Economic Development Fund was set up to maintain all receipts and disbursement of funds pertaining to 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 bring more transparency to the public regarding these receipts and payments. • Fidelity (Phase 1) - A schedule has been set up to repay $35,758 regarding this agreement thru FY 15/16. • Deloitte's agreement includes a 50% reimbursement of sales tax receipts. Revenues and Transfers In • Total revenues for FY 12/13 are $215,758 • $180,000 sales tax from Deloitte • $35,758 transfer in from General Fund for the payment to Fidelity (Phase 1) Expenditures • Total expenditures for FY 12/13 are $215,758 Page 56 ECONOMIC DEVELOPMENT FUND Tax Reimbursement Schedule Fidelity (Phase 1) ** FY 02/03 Payment of $107,274.72 included FY 01 /02, FY 02/03, and FY 03/04 ($35,758.24 x 3) See Transfers Out in Economic Development Fund Page 57 Pymt # FY End Date Beginning Balance 100.46520.11 Principal 100.46522.11 Interest Total Pymt Due Ending Balance 1 Sep -02 $ 536,374 $ - $ - $ - $ 536,374 2 Sep -03 536,374 21,461 85,814 107,275 429,099 ** 3 Sep -04 429,099 - - - 429,099 4 Sep -05 429,099 17,477 18,281 35,758 393,341 5 Sep -06 393,341 16,426 19,333 35,758 357,582 6 Sep -07 357,582 15,314 20,444 35,758 321,824 7 Sep -08 321,824 14,138 21,620 35,758 286,066 8 Sep -09 286,066 12,895 22,863 35,758 250,308 9 Sep -10 250,308 11,581 24,178 35,758 214,549 10 Sep -11 214,549 10,190 25,568 35,758 178,791 11 Sep -12 178,791 8,720 27,038 35,758 143,033 12 Sep -13 143,033 7,166 28,593 (35,75,D8 107,275 13 Sep -14 107,275 5,522 30,237 35,758 71,516 14 Sep -15 71,516 3,783 31,975 35,758 35,758 15 Sep -16 35,758 1,944 33,814 35,758 0 TOTAL $ 146,616.20 $ 389,757.40 $ 536,373.60 $ - ** FY 02/03 Payment of $107,274.72 included FY 01 /02, FY 02/03, and FY 03/04 ($35,758.24 x 3) See Transfers Out in Economic Development Fund Page 57 ----- - - THE TOWN O F OA Jk 1.STLA E it LONE STAR PUBLIC FACILITIES FUND This fund was set up initially with donations from several involved corporations that were going to benefit from tax-exempt bonds. 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." PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY r If fV41)9 r v c ell s z 17 1£ 15 2C 21 2' 2' 2� 2: 2E Z 2£ 25 3( 31 3' 3` 31 3: Lone Star Public Facilities Fund Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES & OTHER SOURCES 13,598 13,531 13,531 13,576 0% 45 General Sales Tax 0% Property Tax 0% Hotel Tax 0% Charges for Services 0% Contributions 0% Beverage Tax 0% Franchise Fees 0% Permits & Fees 0% Fines & Forfeitures 0% Investment Earnings 36 30 45 45 0% Misc Income 0% Total Revenues 36 30 45 45 07. Transfers In 0% Total Other Sources 0% TOTAL REVENUES & OTHER SOURCES 36 30 45 45 07. EXPENDITURES & OTHER USES 13,598 13,531 13,531 13,576 0% 45 Payroll / Salaries 0% Payroll Related & Benefits 0% PR Transfer In 0% PR Transfer Out 0% Supplies 0% Services 0% Insurance 0% Repair & Maintenance 0% Rent & Utilities 0% Interfund Advances 0% Debt 0% Capital Outlay 0% Economic Development Incentives 0% Capital Projects 0% Total Expenditures 0% Transfers Out 102 0% Total Other Uses 102 0% TOTAL EXPENDITURES & OTHER USES 1102 1 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES (66) 30 1 45 1 45 11 0% - 36 37 3£ 35 4C 41 4' 4` 41 4: 4f 47 4£ FUND BALANCE, BEGINNING 13,598 13,531 13,531 13,576 0% 45 FUND BALANCE, ENDING 13,531 13,561 13,576 13,621 0% 45 Restricted/Assigned/Committed Funds 13,531 13,561 13,576 13,621 0% 45 UNASSIGNED FUND BALANCE, ENDING - - 0% Restricted/Assigned/Committed Funds A Cash 418 10110 00 000 13,531 13,561 13,576 13,621 0% 45 0% 0% 0% 0% TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 13,531 13,561 13,576 13,621 0%1 45 Page 59 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW LONE STAR PUBLIC FACILITIES FUND This fund was set up initially with donations from several involved corporations that were going to benefit from tax-exempt bonds. 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 the interest payable with respect to the installment sale obligations will be exempt from federal income taxation." No bonds were ever issued. The fund is earning interest annually. Revenues • Total revenues for FY 12/13 are $45 in interest earnings. Expenditures • There have been no expenditures from this fund since inception Page 60 This page is intentionally blank Page 61 THE TOWN OF :STLAHE WA SWI VISITORS ASSOCIATION FUND The Visitors Association Fund was established in late FY 1999/2000 and collects a 7% hotel occupancy tax from the Marriott Solana and any future Westlake hotels. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION TION 111111 J+* r io INTEGRITY r 3bbb & -.09 z li 1£ 1S 2( 21 2, 21 2< 2: 2e 2; 2£ 25 3( 31 3, 3: 31 3; Visitors Association Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES & OTHER SOURCES General Sales Tax 1,100,941 1,111,281 1,111,281 997,319 0% Property Tax - - - - 0% Hotel Tax 527,261 535,000 535,000 540,350 1% 5,350 Charges for Services - - - - 0% - Contributions - 0% (136,534) 10% 152,079 Beverage Tax 255,339 255,225 0% (114) 0% Franchise Fees 850 450 450 0% 0% Permits & Fees 170,978 186,075 188,300 213,075 0% Fines & Forfeitures - - - - 0% Investment Earnings 2,754 2,900 2,900 2,900 0% Misc Income 17,890 19,275 18,650 18,650 0% Total Revenues 547,904 557,175 556,550 561,900 17. 5,350 Transfers In - - - 0% - Total Other Sources - 0% 07. - TOTAI, REVENUES & OTHER SOURCES 547,904 557,1 6,550 561,900 0% EXPENDITURES & OTHER USES 1,100,941 1,111,281 1,111,281 997,319 -10% (113,962) Payroll / Salaries 1,111,281 1,001,920 997,319 862,081 0% (135,238) Payroll Related & Benefits 180,935 182,416 182,396 183,692 0% 1,296 PR Transfer In - 819,504 - - 0% (136,534) PR Transfer Out 152,079 - 255,339 255,225 0% (114) Supplies - 850 450 450 0% - Services 170,978 186,075 188,300 213,075 13% 24,775 Insurance - - - - 0% - Repair & Maintenance - - - - 0% Rent & Utilities 33,310 34,177 35,677 35,677 0% Interfund Advances - - - - 0% Debt 0% Capital Outlay 0% Economic Development Incentives 0% Capital Projects - - - - 0% Total Expenditures 356,368 221,102 479,766 504,427 57. 24,661 Transfers Out 181,197 445,434 190,746 192,711 1% 1,965 Total Other Uses 181,197 445,434 190,746 192,711 17. 1,965 TOTAL EXPENDITURES & OTHER USES 537,564 666,536 670,512 697,138 47. 26,626 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 10,340 (109,361) (113,962) (135,238) 19% (21,276) 36 3i 3£ 35 4( 41 4, 4: 41 4: 4t 4i 4£ FUND BALANCE, BEGINNING 1,100,941 1,111,281 1,111,281 997,319 -10% (113,962) FUND BALANCE, ENDING 1,111,281 1,001,920 997,319 862,081 -14% (135,238) Restricted/Assigned/Committed Funds 180,935 182,416 182,396 183,692 1% 1,296 UNASSIGNED FUND BALANCE, ENDING 930,346 819,504 814,922 678,389 -177. (136,534) # Days Operating 632 449 444 355 -20% (88) Restricted/Assigned/Committed Funds Debt Service 180,935 182,416 182,396 183,692 1% 1,296 0% - 0% 0% 0% TOTAL RESTRICTED/ASSIGNED/COMMITED FUNDS 180,935 182,416 363,351 183,692 Page 63 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW VISITORS ASSOCIATION FUND The Visitors Association Fund was established in late FY 1999/2000 and collects a 7% hotel occupancy tax from the Marriott Solana and any future Westlake hotels. FY 2004/2005 saw the launch of a new program in partnership with the Marriott to operate a shuttle service which delivers and returns Marriott visitors to DFW Airport. Hotel Occupancy Taxes are allocated to this fund and obtained through the assessment of a 7% hotel occupancy tax. Authority granted by the State of Texas allows cities to levy a tax not to exceed 7% of the rental rate for a hotel/motel room. Funds generated by the occupancy tax may be used in a manner that directly enhances and promotes tourism and the convention and hotel industry. Revenues • Total revenues for FY 12/13 are $561,900 • This is a I% increase of $5,350 compared to the FY 11 /12 estimated revenues. Expenditures and Transfers Out • Total expenditures for FY 12/13 are $697,138 • This represents a 4% increase of $26,626 from the FY 1 1/ 12 estimated expenditures. • A large portion of this increase ($14,000) is for an electronic records storage and management system (laserfische) intended to reduce the record storage footprint/space, improve records retrieval and management for all departments. This system is HIPPA and DOD certified and has been approved by the Texas State Library and Archives which establishes the record retention requirements. We currently use the Laserfiche software for the Town Council and Board of Trustees minutes. • Advertising costs increased $5,918 to place additional ads for better exposure and awareness in the Westlake community. • Transfers Out increased $1,965 of which $1,296 is for transfers out to the Debt Service fund for the 2008 bond payment on the Arts and Sciences center construction. Fund Balance • Fund balance is expected to decrease by $135,238 Page 64 Visitors Association Fund Department Director Ginger Awtry Department Phone 1817.490.5719 PROGRAM BUDGET Pro ram I Activity Budget Percent Municipal Administration Communication 117,450 16.55% 1 Support Services - Administrative 9,871 1.39% 2 Support Services - Facilities Maintenance 100 0.01% 3 Support Services - Human Resources 5,963 0.84% 4 Contract Management 77,917 10.98% 5 Affiliate Board Liaison & Support 100 0.01% $ 93,9511 13.24% Citizen Communication & Eneagement 1 Communication 117,450 16.55% 2 Neighborhood Gatherings & Outreach 80 0.01% 3 Community Activities 9,475 1.34% 4 Direction Finders and Other Surveys 6,170 0.87% 5 $ 133,175 18.77% Accountine Services - Municipal 1 Accounts Payable 2,288 0.32% 2 Accounts Receivable 2,288 0.32% 3 Payroll 2,288 0.32% 4 Financial Reporting 9,038 1.27% 5 Cash & Investment Management 2,288 0.32% 6 Budget Program 450,224 63.45% $ 468,4121 66.02% Municipal Governance 1 Policy Development, Council Meetings & Workshopsl 0.00% 1 0.00% Academic Governance 14,000 1.97% $ 0.00% - 0.00% 1 Strategic Plan Development & Implementation Policy Development, Council Meetings & Workshops 4 0.00% Comprehensive Planning & Economic Development $ 0.00% 1 14,0001 1.97% Development Recruiting & Assistance 0.00% 2 Development Oversight & Regulation 0.00% $ 0.00% Mur icipal Administration Departmental Coordination & Employee Management 0.00% 1 Contract Management 14,000 1.97% 2 Agenda Preparation & Calendar Maintenance - 0.00% 3 Strategic Plan Development & Implementation 0.00% 4 Professional Development 0.00% 5 Direction of Leadership Team - 0.00% $ 14,0001 1.97% Academic Administration 1 Departmental Coordination & Employee Management 0.00% 2 Agenda Preparation & Calendar Maintenance 0.00% 3 Strategic Plan Development & Implementation 0.00% 4 Organizational Development 0.00% 5 Parent & Student Communication 0.00% 6 Affiliate Board Liaison & Support 0.00% $ 0.00% Page 65 $ 709,538 1 100.00% THE TOWN OF :STLAKE DEBT SERVICE FUND The Debt Service Fund was created to clearly illustrate the Town's debt service picture. The Town's obligations are consolidated into one fund with payments being transferred from 413 Economic Development Fund, Property Tax Reduction Fund (in prior years), General Fund (in subsequent years) and the Visitors Association Fund. Future CO's and General Obligation debt issuances would also be paid from this fund. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION 4F INTEGRITY" --a. NM=ft= � Service 'At 16 17 le 19 2C 21 22 22 24 25 26 27 2e 29 3C 31 32 32 34 3E Debt Service Fund Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES & OTHER SOURCES 0 0% 7,504 0% General Sales Tax - - - - Property Tax 30,558 154,608 172,098 123,969 Hotel Tax - - - - Charges for Services 0% (5,575) 0% Contributions - - - - Beverage Tax 1,130 2,925 1,130 2,925 Franchise Fees - - - - Permits & Fees Fines & Forfeitures Investment Earnings 28 - - - Misc Income - 100 - - Total Revenues 30,586 154,708 172,098 123,969 Transfers In 1,505,539 1,501,324 1,470,222 1,462,483 Total Other Sources 1,505,539 1,501,324 1,470,222 1,462,483 TOTAL REVENUES & OTHER SOURCES 1,536,125 1,656,032 1,642,320 1,586,452 EXPENDITURES & OTHER USES 0 0% 7,504 0% Payroll / Salaries 0% 7,504 0% (0) Payroll Related & Benefits - 159% 1,795 0% Payroll Tranfser In 0% 0 0% 0 Payroll Tronfser Out 0% (5,575) 0% Supplies - - - - Services 1,130 2,925 1,130 2,925 Insurance - - - - Repair & Maintenance Rent & Utilities Interfund Advances - - - - Debt 1,527,490 1,653,107 1,618,898 1,613,323 Capital Outlay - - - - Economic Development Incentives Capital Projects - - - - Total Expenditures 1,528,620 1,656,032 1,620,028 1,616,248 Transfers Out - Total Other Uses TOTAL EXPENDITURES & OTHER USES 1,528,620 1,656,032 1,620,028 1,616,248 Proposed FY 12/13 vs Estimated FY 11/12 -3% 1 2 3 4 5 6 7 8 9 10 12 13 14 15 (55,868) 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 7,504 22,292 1 (29,796) -2347. (52,088) 36 37 3e 39 4C 41 FUND BALANCE, BEGINNING 0 0% 7,504 0% FUND BALANCE, ENDING 0% 7,504 0% (0) 0% - 159% 1,795 0% - 0% 0 0% 0 0% 0% (5,575) 0% 0% 0% 0% (3,780) 0% 0% 07. — (3,780) 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 7,504 22,292 1 (29,796) -2347. (52,088) 36 37 3e 39 4C 41 FUND BALANCE, BEGINNING 0 7,504 7,504 29,796 FUND BALANCE, ENDING 7,504 7,504 29,796 (0) Restricted/Assigned/Committed Funds 7,504 7,504 29,796 (0) UNASSIGNED FUND BALANCE, ENDING 0 0 0 0 42 Restricted/Assigned/Committed Funds 43 44 45 46 471 1 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS Page 67 297% 22,292 -1007. (29,796) 0% (29,796) 0% 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW DEBT SERVICE FUND The Debt Service Fund was created to clearly illustrate the Town's debt service picture. The Town's obligations are consolidated into one fund with payments being transferred from 4B Economic Development Fund, Property Tax Reduction Fund (in prior years), General Fund (in subsequent years) and the Visitors Association Fund. Future CO's and General Obligation debt issuances would also be paid from this fund. The Debt Service Fund is used for the payment of general long-term debt principal, interest and related costs of Town issued debt. The Town of Westlake implemented an ad valorem property tax for the first time during FY 2010-11. There is no direct limit on debt for the Town. The Constitution of the State of Texas provides that the ad valorem tax levied by the Issuer for general purposes and for the purpose of paying debt service requirements of the Issuer's general obligation debt shall not exceed $1.50 for each $100 of assessed valuation of taxable property. Shown below is the Town's debt position as of the beginning of FY 2012-13 for outstanding General Obligation Bonds and Certificates of Obligation; Principal 1 $ 21,057,000 Interestl 11,137,538 Total 1 $ 32,194,538 Debt service payments are made for the following: Issues made for the construction of the Westlake Academy facilities: $12,400,000 Series 2002 Certificates of Obligation $ 6,410,000 Series 2003 Certificates of Obligation $ 7,465,000 Series 2007 General Obligation Refunding Bonds (partial refund of $12.4 co issue) $ 2,500,000 Series 2008 General Obligation Bonds $ 7,375,000 Series 2011 General Obligation Refunding Bonds (partial refund of $12.4 co and $6.4M Issue) Additional issue for various street projects: $ 2,095,000 Series 2011 Certificates of Obligation If adopted - payments will also be made on (a) Series 2012 Certificates of Obligation in the amount of $8.5M for the construction of additional facilities at the Westlake Academy campus; (2) Series 2013 General Obligation Refunding amount of $4.6 of Series 2003 and 2008. If refunded, the Town will see approximately $650K savings. These estimated payments are detailed in the following schedules. Revenues and Transfers In • Current debt service on the Westlake Civic Campus is paid by o Transfers in from Visitors Association Fund o Transfers in from 4B Economic Development Fund o Transfers in from General Fund • Debt service on various street projects is paid by o Ad Valorem Property Taxes FUND OVERVIEW Expenditures • FYI 2/13 expenditures are $1,616,753 • This is a $3,275 decrease compared to FYI 1/12 estimated expenditures of $1,620,027. This is in conjunction with the 2011 issue of $7,375,000 that was for the partial refunding of the $12.4 CO 2002 issue as well as the proposed 2012 CO issuance and 2013 General Obligation refunding issuance. 0 C O $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 00 rn 0 Ln Ln 0 Annual Debt Requirements M 't ul lD n M M O N M -Ct Ul lD n M M O 11 N 1-1 1i 1--1 c-1 1 11 a- N N N N N N N N N N M M M C C C C C O C C C C C O O O C O O O C O N N N N N N N N N N N N N N N N N N N N Page 69 Interest ■ Principal This page is intentionally blank Page 70 Debt Service Fund Long -Term Debt Summary Page 71 SERIES 2013 GO -Refunding SERIES 2012 CO SERIES 2011 CO SERIES 2011 GO -Refunding (If Adopted) (If Adopted) "partial refunding of 2003/2008 Certificates of Obligation Certificates of Obligation "partial refunding of 2002/2003 funded by 48 Fund/General Fund funded by 48 Fund/General Fund funded by DS 300 Property Tax funded by 48 Fund/General Fund Pymt Fiscal - TOTAL - 12 TOTAL - TOTAL - - TOTAL No. Year Principal In}erest Principal Interest Principal Interest Principal Interes} 1 2013 125,000 62,717 187,717 - 175,474 175,474 90,000 63,765 153,765 100,000 225,200 325,200 2 2014 305,000 86,770 391,770 200,000 242,848 442,848 93,000 60,791 153,791 100,000 223,200 323.200 3 2015 320,000 85,360 405,360 200,000 238,848 438,848 97,000 57,704 154,704 440,000 217,800 657,800 4 2016 295,000 83,601 378,601 205,000 234,798 439,798 100,000 54,503 154,503 100,000 212,400 312,400 5 2017 130,000 82,090 212,090 210,000 230,648 440,648 75,000 79,475 154,475 275,000 207,275 482,275 6 2018 120,000 80,878 200,878 215,000 226,398 441,398 79,000 75,625 154,625 700,000 192,650 892,650 7 2019 130,000 79,340 209,340 220,000 222,048 442,048 83,000 71,575 154,575 715,000 171,425 886,425 8 2020 135,000 77,383 212,383 225,000 217,035 442,035 87,000 67,325 154,325 730,000 149,750 879,750 9 2021 135,000 75,088 210,088 230,000 211,060 441,060 91,000 62,875 153,875 750,000 127,550 877,550 10 2022 140,000 72,473 212,473 235,000 204,666 439,666 96,000 58,200 154,200 770,000 104,750 874,750 11 2023 140,000 69,603 209,603 245,000 198,066 443,066 101,000 53,275 154,275 790,000 81,350 871,350 12 2024 140,000 66,593 206,593 250,000 190,948 440,948 106,000 48,100 154,100 820,000 55,150 875,150 13 2025 145,000 63,385 208,385 255,000 183,373 438,373 111,000 42,675 153,675 260,000 36,250 296,250 14 2026 155,000 59,896 214,896 265,000 175,573 440,573 117,000 36,975 153,975 260,000 27,150 287,150 15 2027 150,000 56,275 206,275 275,000 167,473 442,473 123,000 30,975 153,975 275,000 17,100 292,100 16 2028 150,000 52,600 202,600 280,000 159,148 439,148 129,000 24,675 153,675 290,000 5,800 295,800 17 2029 455,000 44,810 499,810 290,000 150,598 440,598 136,000 18,050 154,050 - - - 18 2030 465,000 32,734 497,734 300,000 141,748 441,748 143,000 11,075 154,075 19 2031 480,000 20,093 500,093 310,000 132,598 442,598 150,000 3,750 153,750 20 2032 495,000 6,806 501,806 320,000 123,148 443,148 - - - 21 2033 - - - 325,000 113,473 438,473 22 2034 335,000 103,573 438,573 23 2035 345,000 93,373 438,373 24 2036 360,000 82,618 442,618 25 2037 370,000 71,303 441,303 26 2038 380,000 59,678 439,678 27 2039 395,000 47,369 442,369 28 2040 405,000 34,369 439,369 29 2041 420,000 20,963 440,963 30 2042 435,000 7,069 442,069 TOTAL $4,610,000 $1,258,492 $5,868,492 $8,500,000 $4,460,273 $12,960,273 $2,007,000 $921,388 $2,928,388 $7,375,000 $2,054,800 $9,429,800 Original Issue: $4,610,000 $8,500,000 $2,095,000 $7,375,000 Issue Date: f adopted - Anticipated -January, 201 1 adopted - Anticipated - November, 201 March 29, 2011 December 29, 2011 Use: Partial refunding of 2003 & 2008 Construction at WA Various street projects Partial refunding of 2002 & 2003 Page 71 SERIES 2008 GO SERIES 2007 GO -Refunding SERIES 2003* CO SERIES 2002* CO General Obligation Bonds *partial refunding of 2002 Certificates of Obligation Certificates of Obligation funded by Visitor Fund 220 funded by 4B Fund/General Fund funded by 4B Fund 200 funded by 4B Fund 200 am.aeem TOTAL TOTAL -4114-11 - TOTAL TOTAL ,Interest GRAND TOTAL Principal Interest Total Debf Principal Interests Principal Interest Principal Interest Principal 41,846 41,846 25,000 295,545 320,545 51,851 51,851 315,000 41,925 356,925 655,000 958,323 1,613,323 - 35,000 294,608 329,608 - - 330,000 21,450 351,450 1,063,000 929,666 1,992,666 35,000 293,295 328,295 1,092,000 893,006 1,985,006 410,000 291,983 701,983 1,110,000 877,284 1,987,284 425,000 276,608 701,608 1,115,000 876,095 1,991,095 40,000 259,608 299,608 1,154,000 835,158 1,989,158 40,000 258,008 298,008 1,188,000 802,395 1,990,395 45,000 256,408 301,408 1,222,000 767,900 1,989,900 50,000 254,608 304,608 1,256,000 731,180 1,987,180 55,000 252,608 307,608 1,296,000 692,696 1,988,696 60,000 250,408 310,408 1,336,000 652,701 1,988,701 65,000 248,008 313,008 1,381,000 608,798 1,989,798 645,000 245,408 890,408 1,416,000 571,090 1,987,090 670,000 219,608 889,608 1,467,000 519,201 1,986,201 700,000 192,808 892,808 1,523,000 464,630 1,987,630 730,000 164,808 894,808 1,579,000 407,030 1,986,030 760,000 134,695 894,695 1,641,000 348,153 1,989,153 790,000 103,345 893,345 1,698,000 288,901 1,986,901 825,000 70,560 895,560 1,765,000 227,000 1,992,000 855,000 35,910 890,910 1,670,000 165,864 1,835,864 - - - 325,000 113,473 438,473 335,000 103,573 438,573 345,000 93,373 438,373 360,000 82,618 442,618 370,000 71,303 441,303 380,000 59,678 439,678 395,000 47,369 442,369 405,000 34,369 439,369 420,000 20,963 440,963 435,000 7,069 442,069 $0 $41,846 $41,846 $7,260,000 $4,398,830 $11,658,830 $0 $51,851 $51,651 $645,000 $63,375 $708,375 $30,397,000 $13,250,854 $43,647,854 $2,500,000 $7,465,000 $6,410,000 $12,400,000 June 18, 2008 March 15, 2007 June 23, 2003 January 15, 2002 Second phase construction of Construction of A&S Center Partial refunding of Series 2002 First phase construction of WA I WA Page 72 This page is intentionally blank Page 73 THE TOWN O F OA 1. S i L �E" CEMETERY FUND The Cemetery program includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road. This includes interment, lot sales, record keeping, and all maintenance associated with the grounds, fences, trees and flower beds. The cemetery was donated and conveyed by deed to the Town during FY2008-09. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY r If �n Service cells z li 1£ 15 2C 21 2' 2` 2� 2: 2f 2; 2£ 25 3C 31 3' 3` 31 3: Cemetery Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES & OTHER SOURCES 0% (325) D BALANCE, ENDING 148,963 147,338 148,638 148,813 0% 175 Restricted/Assigned/Committed Funds 148,963 147,338 148,638 148,813 0% General Sales Tax Property Tax 0% 0% 07o Hotel Tax - - - - 0% Charges for Services 13,300 3,400 5,400 5,400 07. Contributions - - - - 0% Beverage Tax 07o Supplies 07o Franchise Fees 500 - -10017o (500) 0% Permits & Fees 3,100 3,600 3,600 057 0% Fines & Forfeitures - - - - 07o Investment Earnings 117 75 175 175 0% Misc Income - Rent & Utilities - - 07o Total Revenues 13,417 3,475 5,575 5,575 07. Transfers In - - - - 0% Total Other Sources 0% 0% TOTAL REVENUES & OTHER SOURCES 13, ,475 5,575 5,575 0% EXPENDITURES & OTHER USES 0% (325) D BALANCE, ENDING 148,963 147,338 148,638 148,813 0% 175 Restricted/Assigned/Committed Funds 148,963 147,338 148,638 148,813 0% 175 UNASSIGNED FUND BALANCE, ENDING Payroll / Salaries 0% 0% 017o 07. 175 Payroll Related & Benefits 0% Payroll Transfer In 07o Payroll Transfer Out - - 07o Supplies 450 - 500 - -10017o (500) Services 4,154 3,100 3,600 3,600 057 - Insurance - - - - 070 Repair & Maintenance 1,000 2,000 1,800 1,800 0% Rent & Utilities - - - - 0% Interfund Advances 070 Debt 0% Capital Outlay 070 Economic Development Incentives 0% Capital Projects - - - - 0% Total Expenditures 5,604 5,100 5,900 5,400 -8% (500) Transfers Out - - - - 0% - Total Other Uses - 0% - TOTAL EXPENDITURES & OTHER USES 5,604 5,100 5,900 5,400 -8% (500) 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES I j 7,813 1 j (1,625) (325) ]75 1 -1547. 500 36 3; 3£ 3S 4C 41 4` 4' 4z 4: 4E 4; 4£ FUND BALANCE, BEGINNING 141,149 148,963 148,963 148,638 0% (325) D BALANCE, ENDING 148,963 147,338 148,638 148,813 0% 175 Restricted/Assigned/Committed Funds 148,963 147,338 148,638 148,813 0% 175 UNASSIGNED FUND BALANCE, ENDING 0% - 0% Restricted/Assigned/Committed Funds A Cash 255 10110 00 000 50,784 49,159 50,459 50,634 0% 175 A Cemetery Lots 255 15100 00 000 98,179 98,179 98,179 98,179 0570 - 0% 0% 0% TOTAL RESTRICTED/ASSIGNED/COMMITTED FU ILD 147,338 148,638 148,813 07. 175 Page 75 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW" CEMETERY FUND The Cemetery program includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road. This includes interment, lot sales, record keeping, and all maintenance associated with the grounds, fences, trees and flower beds. The cemetery was donated and conveyed by deed to the Town during FY2008-09. Revenues • Total revenues for FY 2012-13 are $5,575 • Revenue will remain flat when compared to FY 11/12 estimated revenues. Expenditures • Total expenditures for FY 2012-13 are $5400 • This is an 8% decrease of $500 compared to FY 2011-12 estimated expenditures. Fund Balance • The projected ending fund balance for FY 2012-13 is $148,813. Page 76 This page is intentionally blank Page 77 47 Fla THE TOWN O F + 6 ;. 1.STLA E UTILITY FUND The Utility Fund is utilized for: the operation, maintenance, repair, and installation of 130,000 LF of water lines, 94,000 LF of waste water lines, and 57,000 LF of duct bank lines; maintaining public records and regulatory requirements PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY r If OWN& le lice Service 1 2 4 S 6 7 8 9 1C 11 12 13 14 I5 T lE 2( 21 2, 21- 2, :2, 2! 2t 2; 2E 2', 3( 31 31 3, Utility Fund Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES & OTHER SOURCES 2,571,347 0% 3,103,441 017 Charges for Services Water 2,386,093 2,059,000 2,059,000 2,059,000 Charges for Services Sewer 547,871 529,800 529,800 529,800 Charges for Services Trash 100% 5,216 6,966 6,966 58,050 Charges for Services Other 187,645 44,000 60,835 60,835 Contributions - - - 7,000 Franchise Fees 345,526 453,744 454,299 521,828 Permits & Fees 4,748 5,827 4,834 6,098 Fines & Forfeitures - - - 141,500 Investment Earnings 9,699 10,000 10,000 10,000 Misc Income 146,716 71,500 89,434 89,434 Total Revenues 3,283,239 2,721,266 2,756,035 2,807,119 Transfers In 1,015,869 1,110,600 1,110,600 2,000,000 Total Other Sources 2,392,565 2,069,362 2,308,302 2,000,000 TOTAL REVENUES & OTHER SOURCES 3,283,239 2,721,266 2,756,035 4,807,119 EXPENDITURES & OTHER USES 2,571,347 0% 3,103,441 017 Payroll / Salaries 0% 2,820,048 9% 22,118 Payroll Related & Benefits (380) 15% 67,529 26% PR Transfer In - (14,550) - 17,515 PR Transfer Out 203,592 - 251,694 273,812 Supplies 2,878 7,000 7,380 7,000 Services 345,526 453,744 454,299 521,828 Insurance 4,748 5,827 4,834 6,098 Repair & Maintenance 103,449 141,500 156,050 141,500 Rent & Utilities 97,638 111,292 93,777 111,292 Capital Outlay 15,007 20,000 22,000 20,000 Debt 603,858 219,399 207,668 220,943 Water Purchases 1,015,869 1,110,600 1,110,600 1,110,600 Total Expenses 2,392,565 2,069,362 2,308,302 2,413,073 Capital Projects 213,364 603,603 493,375 2,161,871 Transfers Out 145,216 331,694 87,500 87,500 Total Other Uses 358,580 935,297 580,875 2,249,371 TOTAL EXPENSES & OTHER USES 2,751,145 3,004,659 2,889,177 4,662,444 Proposed FY 12/13 vs Estimated FY 11/12 0% 0% 733% 51,084 0% - 0 0% 0% 0% 0% 0% 2% 51,084 100% 2,000,000 100% 2,000,000 74% 2,051,084 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 EXCESS REVENUES OVER(UNDER) EXPENSES 1 532,094 1 (283,393) (133,142) 144,675 1 -209% 277,817 34 3: 3e 3 3F 31, 4( 41 4, 4; 4, 4; 4� 4 4f FUND BALANCE, BEGINNING 2,571,347 0% 3,103,441 017 FUND BALANCE, ENDING 0% 2,820,048 9% 22,118 -5% (380) 15% 67,529 26% 1,264 -9% (14,550) 19% 17,515 -9% (2,000) 6% 13,275 0% - 5% 104,771 338% 1,668,496 0% - 287% 1,668,496 617, 1,773,267- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 EXCESS REVENUES OVER(UNDER) EXPENSES 1 532,094 1 (283,393) (133,142) 144,675 1 -209% 277,817 34 3: 3e 3 3F 31, 4( 41 4, 4; 4, 4; 4� 4 4f FUND BALANCE, BEGINNING 2,571,347 3,103,441 3,103,441 2,970,299 FUND BALANCE, ENDING 3,103,441 2,820,048 2,970,299 3,114,974 Restricted/Assigned/Committed Funds 143,780 149,050 149,050 153,522 UNASSIGNED FUND BALANCE, ENDING 2,959,661 2,670,998 2,821,249 2,961,453 Operating Expenditures 2,392,565 2,069,362 2,308,302 2,413,073 # Days Operating 452 471 446 448 Restricted/Assigned/Committed Funds R Water/Sewer Deposits Cash 10112 143,780 149,050 149,050 153,522 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS pso 149,050 153,522 Page 79 -4% (133,142) 5% 144,675 3% 4,472 5% 140,204 5% 104,771 109% 488 3% 4,472 0% - 0 017 0% 0% 3%1 4,47 35 36 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW UTILITY FUND REVENUES AND OTHER RESOURCES • Total revenues for FY 2012-13 are $4,807,119 • A 74% increase of $2,051,084 from the FY 11 /12 estimated revenues of $2,756,035. • This amount is composed primarily of a $2M transfer in (inter -fund loan) from the General Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years. REVENUES FY 11/12 Estimated FY 12/13 Proposed % of total change amount change percent Water Revenue 2,059,000 2,059,000 43% - Oho Sewer/Trash/Other 536,766 587,850 12% 51,084 10% Contributions - - 0% - 0% Tap/Impact Fees 60,835 60,835 1% - 0% Interest/Misc Income 99,434 99,434 2% - 0% Transfers In - 2,000,000 42% 2,000,000 100 TOTAL $2,756,035 $4,807,119 100% 1 $2,051,084 74% • Utility Fund revenue is primarily comprised of fees for water and wastewater service. • The fund also receives a small portion of its revenue through tap fees and interest income, and currently serves as a mechanism for collecting and distributing debt service and impact fees. FY12/13 Proposed Revenues o Sewer/Trash/ Other 12% o Transfers In L o Water Revenue Water Revenue 43% The Utility Fund is the recipient of all revenue generated from water sales in the Town. With the construction of Westlake's master -planned residential developments, the Town placed new water infrastructure into service in 2000. As Westlake's customer base continues to expand, additional demands will be placed on the utility system, requiring incremental expansion and maintenance of infrastructure. Effective October 1, 2012, Fort Worth rates increased by 2.9% ($1.7376/1000 gal to $1.6848/1000 gal). FUND OVERVIEW Wastewater Revenues Wastewater revenue is another major component of the Utility Fund. Wastewater revenue is expected to grow proportionate to future non -irrigation water demands. These future increases can be attributed to both residential and commercial growth. Effective December 1, 2012, TRA rates will increase by 22.7% ($3.902/1000 gal to $4.788/1000 gal) due to higher treated sewage volumes, capital project funding needs and associated operating costs. Waste Management During FY 2008-09, the Town took over the billing and collection of residential solid waste user fees for its franchised hauler. The Town changed from twice a week pick up schedule to once a week pick up schedule in lieu of a rate increase. The current rate for solid waste and recycling service remains unchanged since 2008. The Town receives a 12% fee from its franchisee for providing this service. Ductbank The ductbank is a series of Town owned conduit that houses underground telecommunication infrastructure in portions of Westlake. Revenues from the ductbank are contingent upon utility companies leasing out portions of the conduit. The Town continues to execute new leases with telecommunications companies. EXPENSES AND OTHER USES • Total expenditures for FY 2012-13 are $4,662,444 • A 61% increase of $1,773,267 from the FY 2011-12 estimated expenses. • Capital projects funded by the Utility Fund are described in the capital improvements portion of this overview. EXPENSES FY 11/12 Estimated FY 12/13 Proposed % of total change amount change percent Operating Expenses 2,286,302 2,393,073 51% 106,771 5% Capital Outlay/Projects 515,375 2,181,871 47% 1,666,496 323% Transfers Out 1 87,500 87,500 2% 1 - 0% TOTAL 1 $ 2,889,177 1 $ 4,662,444 1007. 1 $ 1,773,267 61% FUND OVERVIEW Services Provided The Utility Fund accounts for water and wastewater 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. This fund also contains the planning and implementation of the ductbank. This is a series of underground conduit designed to house telecommunications services in Westlake. The ductbank is a public/private partnership that utilizes public and private sector capital, town planning and engineering and town operation. Phase I was completed in FY 2000-01 and became ready for occupancy in FY 2001-02 with leases following completion of construction. FY 2004-05 saw the completion of the ductbank extension from Vaquero to Pearson Road with a lease following the construction. The development of the Terra Bella subdivision extended the ductbank from Sam School Road through the subdivision to Dove Road. In 2010, Deloitte University constructed new ductbank through their development that connected the section at Dove/Pearson Lane to Ottinger Road at the Deloitte service entrance with leases following completion of construction. The Utility Fund is responsible for all water, sewer, and telecommunications ductbank service in the Town. The Town continues to use new automated technologies to control inflows into our storage facilities and minimize the annual peak payment charges from the City of Fort Worth. The fund is also burdened with three outstanding long-term obligations. 1. The first is the proportionate buyout of infrastructure owned by the Hunt Trust which sold the Circle T Ranch to Hillwood. The Town's agreement with Hillwood is that in exchange for dissolution of the Municipal Utility Districts (MUDS), the Utility Fund will reimburse Hillwood the share of purchased MUDS infrastructure for each development based upon the acres removed from the MUDS. Hillwood, in turn, must deposit these funds into an escrow account owned by the Hunt Trust. Page 82 FUN® OVERVIEW 2. The second long term liability is the loan from Hillwood to the Town to construct the 16" and 20" transmission water lines and the US 377 Pump Station. The Town is contractually obligated to pay for this infrastructure through a surcharge on water rates. The Town is divided into two service areas, one being the Circle T Ranch, and the remaining areas within the Town's limits which constitute the "Town" service area. The Town pays Hillwood $.25 cents per 1,000 gallons of water distributed to consumers in these two service areas. Each service area pays its respective portion of the overall debt based on the volume of water used from the customers. The contract clearly stipulates that this is not a general obligation of the Town. It is, however, required to be paid back through this assessment being attached to the water rate. The rate would have to be significantly increased to pay this debt off in the twenty years contemplated under the agreement. Hillwood has stated that once the Town and Hillwood agree on proportionate future infrastructure funding, this liability will be erased. Nevertheless, the obligation does exist and water rates should always be reviewed with this obligation in mind. 3. The third longterm liability is the joint Westlake/Keller water tower that was constructed to provide the necessary water storage and pressures within Westlake. Staff is committed to maintaining an up to date utility rate analysis to maintain the integrity of the fund. The budget is based on an adjustment in water and sewer rates from a rate study conducted in FY 2010-11. The fund revenues were estimated based on a water and sewer rates approved by the Town Council on December 13, 2010 and became effective January 1, 2011. The purpose of the rate increase was to fully recover all system costs as well as provide for capital improvements and maintenance of our water and sewer utility. In addition to the rate increase on December 13, 2011, Council also approved a "pass-through" rate adjustment ordinance that provides for an automatic adjustment to rates based on unit volume costs from the Town's wholesale providers. Page 83 PROGRAM BUDGET Utility Fund Public Works Department Director Jarrod Greenwood Department Phone 817-490-5717 Program I Activity Budget Percent Water Services 1 Maintenance & Repairs 212,415 8.80% 2 Regulatory Monitoring & Reporting 43,257 1.79% 3 Water Conservation 19,685 0.82% 4 Customer Service 58,828 2.44% 5 Meter Testing & Replacement 71,507 2.96% 6 Wholesale Water Purchases 1,110,601 46.02% 7 Contract Management 166,711 6.91% $ 1,683,003 69.75% Sewer Services 1 Maintenance & Repairs 23,647 0.98% 2 Regulatory Monitoring & Reporting 5,969 0.25% 3 Wastewater Treatment 394,221 16.34% 4 Contract Management 24,393 1.01% $ 448,2301 18.58% Solid Waste & Recycling 1 Solid Waste 71,117 2.95% 2 Recycling 20,033 0.83% $ 91,151 3.78% Utility Billing Services 1 Utility Billing 68,011 2.82% $ 68,0111 2.82% Municipal Governance 1 Town Council Meetings/Workshops 47,922 1.99% $ 47,9221 1.99% Citizen Engagement and Communication 1 Neighborhood Gatherings & Outreachi 5,4251 0.22% $ 5,4251 0.22% Accounting Services - Municipal 4 1 Financial Reporting 19,470 0.81% $ 66,813 2.77% ** Represents Total Expenses net of Debt & Capital Projects I $ 2,413,073 100% Page 84 Utility Fund Interfund Repayment Schedule Due to 4B Economic Development Fund Pymt # Due Date Beginnig Balance $119,622 GW Farms Waterline $293,842 Knox Road Connection $119,688 Knox Road Connection $533,152 TOTAL Ending Balance 1 Nov -03 $ 533,152 $ - $ 87,189 $ - $ 87,189 $ 445,962 2 Aug -05 445,962 7,975 13,777 7,979 29,731 416,232 3 Aug -06 416,232 7,975 13,777 7,979 29,731 386,501 4 Aug -07 386,501 7,975 13,777 7,979 29,731 356,770 5 Aug -08 356,770 7,975 13,777 7,979 29,731 327,039 6 Aug -09 327,039 7,975 13,777 7,979 29,731 297,308 7 Aug -10 297,308 7,975 13,777 7,979 29,731 267,577 8 Aug -11 267,577 7,975 13,777 7,979 29,731 237,846 9 Aug -12 237,846 7,975 13,777 7,979 29,731 208,116 10 CAug- 208,116 7,975 13,777 7,979 C 29,731D 178,385 11 Aug -14 178,385 7,975 13,777 7,979 29,731 148,654 12 Aug -15 148,654 7,975 13,777 7,979 29,731 118,923 13 Aug -16 118,923 7,975 13,777 7,979 29,731 89,192 14 Aug -17 89,192 7,975 13,777 7,979 29,731 59,461 15 Aug -18 59,461 7,975 13,777 7,979 29,731 29,731 16 Aug -19 29,731 7,975 13,777 7,979 29,731 (0) TOTAL $ 119,622 $ 293,842 $ 119,688 $ 533,152 Page 85 UTILITY FUND Debt Payable Schedule Keller Overhead Storage Pymt Pymt TOTAL PAYABLE WESTLAKE'S PORTION OF PAYABLE 32% # Date Principal Interest Total Payable Principal Interest Total Balance 1 Sep -06 $ 190,000 $ 173,730 $ 363,730 $ 116,554 $ 60,884 $ 55,670 $ 116,554 $1,257,727 2 Sep -07 200,000 163,344 363,344 116,429.87 64,088.00 52,341.87 116,430 1,193,639 3 Sep -08 210,000 151,575 361,575 115,863 67,292 48,571 115,863 1,126,347 4 Sep -09 225,000 138,219 363,219 116,389.82 72,099.00 44,290.82 116,390 1,054,248 5 Sep -10 235,000 127,169 362,169 116,053 75,303 40,750 116,053 978,944 6 Sep -11 245,000 118,463 363,463 116,467.93 78,507.80 37,960.13 116,468 900,436 7 Sep -12 255,000 109,088 364,088 116,668 81,712 34,956 116,668 818,724 8 Sep -13 270,000 98,906 368,906 118,212.32 86,518.80 31,693.52 118,212 732,205 9 Sep -14 285,000 87,806 372,806 119,462 91,325 28,137 119,462 640,880 10 Sep -15 295,000 76,206 371,206 118,949.33 94,529.80 24,419.53 118,949 546,350 11 Sep -16 310,000 64,106 374,106 119,879 99,336 20,542 119,879 447,014 12 Sep -17 325,000 51,163 376,163 120,537.51 104,143.00 16,394.51 120,538 342,871 13 Sep -18 340,000 37,406 377,406 120,936 108,950 11,986 120,936 233,921 14 Sep -19 355,000 23,072 378,072 121,149.35 113,756.20 7,393.15 121,149 120,165 15 Sep -20 375,000 $4,115,000 7,875 $1,428,127 382,875 $5,543,127 122,688 $1,776,240 120,165 $1,318,611 2,523 $ 457,629 122,688 $1,776,240 - TOTAL �M TRA Assumption of N-1 Sewer Line Vision Point: Leadership 1 500-16600-00-30 This project is intended to transfer ownership of a section of sewer line from Westlake and Southlake to TRA. It includes the design and construction of a metering station with SCADA equipment at the proposed Town of Westlake "Point of Entry." Westlake will be required to conduct an extensive inflow and infiltration study and perform repairs (separate capital improvement). Page 87 Description Expense Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Engineering - 127,338 - - - 127,338 Construction 127,338 - - - - - - - - - - Equipment - - - - - Debt Service - - - TOTAL TOTAL - 127,338 - - - - 127,338 Page 87 Description PROJECT Planned Funding Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Utility Fund - Cash - 127,338 - - 127,338 - - - Services - - - - Equipment - - - - - Debt Service - - - TOTAL - - TOTAL - 127,338 - - - - 127,338 Page 87 Description Est. thru Proposed 09/30/12 FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - - Maintenance - - - - - Services - - - - Equipment - - - - - Debt Service - - - TOTAL - - - - - - - Page 87 N-1 Sewer Line Transfer / Inflow & Infiltration Repairs Vision Point: Leadership 1 500-16600-00-31 As a condition of the N-1 sewer line transfer Westlake was required to conduct an extensive inflow and infiltration study. The study will identify repairs that need to be made. Description Est. thru Expense Description 09/30/12 Proposed FY 12/13 113/14 Planned Project Total 14/15 15/16 16/17 Engineering 130,000 34,533 - - - 164,533 Construction - - - - - - - Services - - - - Equipment - - - - - Debt Service - - EXPENDITURES TOTAL 130,000 34,533 - - - - 164,533 Description PROJECT Planned Funding Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Utility Fund - Cash 130,000 34,533 - - 164,533 - - - Services - - - - Equipment - - - - - Debt Service - - - - OPERATING IMPACT TOTAL - - FUNDING TOTAL 130,000 34,533 - - - - 164,533 Description Est. thru Proposed 09/30/12 FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - Maintenance - - - - - Services - - - - Equipment - - - - - Debt Service - - - - OPERATING IMPACT TOTAL - - - - - - - Ground Storage Tank Vision Point: Leadership 500-16600-00-36 This project will consist of designing and constructing a new ground storage tank at the existing pump station. We anticipate this tank will be a 1,000,000 gallon tank and will be needed to augment services once Deloitte has become fully staffed. Maintenance (consisting of inspection and cleaning) would not be expected until year two. -,,,,fi�r• _� ,�, ,:�, -, , • Expense Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Engineering - - - - - - - Construction 2,000,000 2,000,000 - - - 2,000,000 - - to be repaid over five years - - - - - - - - - - - - - Debt Service - - - - - EXPENDITURES TOTAL - 2,000,000 - - - - 2,000,000 &W-IT"IES0101U1• Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Funding Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Utility Fund - Cash - 2,000,000 - - - - 2,000,000 interfund loan from General Fund - - - - - to be repaid over five years - - - - - - - - - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL - FUNDING TOTAL - 2,000,000 - - - - 2,000,000 &W-IT"IES0101U1• Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - Maintenance - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL - - - - - - THE TOWN O F OA Jk 1.STLA E it UTILITY MAINTENANCE & REPLACEMENT FUND The Utility -Maintenance & Replacement Fund (UMR) was created to provide a mechanism for repair and replacement of capital assets such as pump stations, lift stations, elevated and ground storage facilities, etc. This fund receives planned portions of revenues from the Utility Fund allocated to future capital repair and replacement. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY r If OWN& ng Service cell i z li 1£ 15 2C 21 2' 2` 2� 2: 2f 2; 2£ 25 3C 31 3' 3" 31 3: Utility - Maintenance & Replacement Fund Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES & OTHER SOURCES 07o Payroll / Salaries 07o Payroll Related & Benefits 0% General Sales Tax O% Payroll Transfers Out 07o 0% 0% Property Tax 0% Insurance 07o 07o 0% Hotel Tax 0% Interfund Advances 07o 0% 0% Charges for Services 07o Economic Development Incentives - - 0% 07. 100% 52,450 Contributions 100% 52,450 Transfers Out - - 0% - 0% 0% - Beverage Tax 100% 52,450 07o Franchise Fees 0% Permits & Fees 0% Fines & Forfeitures - - - - 07o Investment Earnings 112 100 200 125 -38% (75) Misc Income - - - 07. - Total Revenues 112 100 1 200 125 -38% (75) Transfers In 50,000 501000 50,000 0% - Total Other Sources 50,000 50,000 50,000 0% - TOTAL REVENUES & OTHER SOURCES 112 50,100 50,200 50,125 0% (i EXPENDITURES & OTHER USES 07o Payroll / Salaries 07o Payroll Related & Benefits 0% Payroll Transfers In O% Payroll Transfers Out 07o Supplies 0% Services 0% Insurance 07o Repair & Maintenance 0% Rent & Utilities 0% Interfund Advances 07o Debt 0% Capital Outlay 07o Economic Development Incentives - - 0% Capital Projects 31,200 52,450 100% 52,450 Total Expenditures 31,200 52,450 100% 52,450 Transfers Out - - 0% - Total Other Uses - - 0% - TOTAL EXPENDITURES & OTHER USES 31,200 52,450 100% 52,450 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 112 1 18,900 1 50,200 1 (2,325) -1057. (52,525) 36 37 3£ 35 4C 41 4' 4" 42 4: 4E 4; 4£ FUND BALANCE, BEGINNING 42,528 42,640 42,640 92,840 118% 50,200 FUND BALANCE, ENDING 42,640 61,540 92,840 90,515 -37. (2,325) Restricted/Assigned/Committed Funds 42,640 61,540 92,840 90,515 -3% (2,325) UNASSIGNED FUND BALANCE, ENDING 0% Restricted/Assigned/Committed Funds A Cash 510 10110 00 000 42,640 61,540 92,840 90,515 -3% (2,325) TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDSAiiiiiiiiiiiiiiiiiiiiii Moor 42,640 61,540 92,840 90,5. '. Page 91 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW UTILITY- MAINTENANCE & REPLACEMENT FUND The Utility -Maintenance & Replacement Fund (UMR) was created to provide a mechanism for repair and replacement of capital assets such as pump stations, lift stations, elevated and ground storage facilities, etc. This fund receives planned portions of revenues from the Utility Fund allocated to future capital repair and replacement. As in the General -Maintenance and Replacement Fund, this was anticipated to help avoid future bond programs and force a more conservative pattern of spending in light of uncertain future revenues. This fund consists of systematic water and sewer line repairs and major maintenance projects funded by an operating transfer from the Utility Fund. Projects are included each year from a long-range maintenance schedule which incorporates routine scheduled maintenance and recommended replacement and upgrading of lines and permanent capital assets. Revenues and Transfers In • FY2012/2013 revenues are $50,125 • A 0.1 % decrease of $75 from the FY 11 /12 estimated revenues of $50,200 Expenditures • FY2012/2013 expenditures are $52,450 • A 100% increase from the FY 1 1 /12 estimated expenses of $0 o $21,250 - Fire Hydrant Repair and Painting o $31,200 - Pump Motor Repair and Replacement Fund Ralmr-P Fund balance at FY 12/13 year-end is projected to be $90,515 Page 92 Utility - Maintenance and Replacement Fund 5 Year Projection Description Actuals 2003-2012 Estimated Proposed Projection TOTALS FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 Sewer R&M - SS I&I $ 23,864 $ - $ - $ - $ $ - $ - $ 23,864 Pump Station Gate Retro -Fit 7,500 7,500 WA -Ext Envrnmt Imprvmts Irrig - Fire Hydrant Repair & Painting 21,250 21,250 Pump/Motor Repair/Replacement 31,200 - - 31,200 Pump Station Equipment - 160,000 165,000 175,000 500,000 SCADA Replacement 88,000 - - - 88,000 Chevy Utility Truck - 25,000 25,000 Ground Storage Tank R&M GRAND TOTAL 100,000 - 100,000 188,000 000 iii 000 bm Page 93 THE TOWN OF 1.STLi.E ir-NIF �0 GENERAL MAINTENANCE & REPLACEMENT FUND The General Maintenance & Replacement Fund (GMR) was created to provide a mechanism for the long term repair and replacement of large capital assets such as HVAC, walls, floors and ceilings, plumbing, electric, roadways, etc. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY r OWN& ng Servicecell 5 6 7 8 9 10 11 12 13 14 15 16 TOTAL REVENUES & OTHER SOURCES 670,919 530,250 532,62 19,125 General Maintenance & Replacement Fund Program Summary Fiscal Year 2012/2013 REVENUES 8 OTHER SOURCES Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES 8 OTHER SOURCES 24%1 164,194 Payroll / Salaries ,530 26% 222,530 Payroll Related & Benefits 0% - Payroll Transfers In General Sales Tax Payroll Transfers Out Supplies Services 26% 222,530 Property Tax Repair & Maintenance Rent & Utilities Interfund Advances Hotel Tax Debt Capital Outlay Economic Development Incentives - - - - Charges for Services -11% (39711) Total Expenditures 41,037 418,520 368,431 329,220 -11% (39,211) Transfers Out - - - - Total Other Uses - - - - Contributions TOTAL EXPENDITURES 3 OTHER USES 41,037 418,520 368,431 329,220 -11% (39,211) Beverage Tax Franchise Fees Permits & Fees Fines & Forfeitures Investment Earnings 271 250 2,625 1,750 -33% (875) Misc Income - - - - Total Revenues 271 250 1 2,625 1,750 -33% (875) Transfers In 670,648 1 530,000 1 530,000 550,000 4% 20,000 Total Other Sources 670,648 1 530,000 1 530,000 550,000 4% 20,000 17 1£ 15 2( 21 2, 2` 2, 2; 2e 2; 2E 25 3( 31 3' 3` 31 3: EXPENDITURES & OTHER USES 24%1 164,194 Payroll / Salaries ,530 26% 222,530 Payroll Related & Benefits 0% - Payroll Transfers In Payroll Transfers Out Supplies Services 26% 222,530 Insurance Repair & Maintenance Rent & Utilities Interfund Advances Debt Capital Outlay Economic Development Incentives - - - - Capital Projects 41,037 418,520 368,431 329,220 -11% (39711) Total Expenditures 41,037 418,520 368,431 329,220 -11% (39,211) Transfers Out - - - - Total Other Uses - - - - TOTAL EXPENDITURES 3 OTHER USES 41,037 418,520 368,431 329,220 -11% (39,211) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 629,881 1 111,730 1 164,194 1 222,530 11 367. 58,336 36 3; 3E 31 4( 41 4, 4` 4, 4: 4t 4' 4E FUND BALANCE, BEGINNING 61,654 691,535 691,535 855,729 24%1 164,194 FUND BALANCE, ENDING 691,535 803,265 855,729 1,078,259 Restricted/Assigned/Committed Funds 691,535 803,265 855,729 1,078,259 ,530 26% 222,530 UNASSIGNED FUND BALANCE, ENDING 0% - Restricted/Assigned/Committed Funds A Cash 600 10110 00 000 691,535 803,265 833,729 1,056,259 27% 222,530 A Cash EMS 600 10110 14 101 - - 22,000 22,000 0% - TOTAL RESTRICTED/ASSIGNED/COMMITTED-FtU 855,729" 078,259 26% 222,530 Page 95 37 38 39 40 41 42 43 44 45 46 47 48 FUND OVERVIEW GENERAL MAINTENANCE & REPLACEMENT FUND The General Maintenance & Replacement Fund was created to provide a mechanism for the long term repair and replacement of large capital assets such as HVAC, walls, floors and ceilings, plumbing, electric, roadways, etc. This fund receives planned portions of revenues from each operating fund that owns and maintains capital assets to set aside for future capital repair and replacement. This helps to avoid future bond programs and encourages a more conservative pattern of spending in light of uncertain future revenues. Currently, because of our financial situation, the fund is not being able to be used as we had anticipated. This fund supports systematic facility repairs and major maintenance projects funded by operating transfers from other Town funds. Project lists are developed annually from a long- range facility maintenance schedule, and incorporated into a routine schedule for maintenance and replacement of major facility equipment and infrastructure and permanent capital assets. Revenues and Transfers In • FYI 2/13 revenues are $551,750 and are comprised of o $550,000 transfers in from the General Fund o $1,750 interest income • A 4% increase from the FY 11 /12 estimated budget of $532,625 Expenditures/Projects • FY11/ 12 expenditures are $329,220 • An 1 1%decrease of $39,211 from the FY 1 1/12 estimated budget of $368,431 Dept # Project # Description Amount 14 30 Fire Chief Vehicle 49,000 16 35 Illuminated Street Signs 24,000 17 7 WA - Relocate Pump Irrigation System 16,000 17 8 WA - Carpet/VCT flooring 20,500 17 10 WA - Environmental building upgrades - lighting -water 1,500 17 11 WA - Exterior paint - wood treatment & replacement 5,000 17 12 WA - Painting/cloth wall coverings repairs 18,200 17 13 WA - Seal roof and overhangs 13,400 17 17 WA - Refurbish classrooms 25,000 17 18 WA - Update Security System 6,000 17 19 WA - Update Security Cameras 8,000 17 23 WA - Interior Building R&M 12,000 17 24 WA - 15 Ton Split HVAC System 32,300 17 25 WA - 2 Ton Roof Top Units 40,500 17 29 WA - Heater boilers 10,320 17 36 WA - Plumbing Repair & Replacement 10,000 9 14 Trail Repairs 10,000 20 20 Cisco Call Manager Upgrade/Domain Controller 3,500 20 21 Network Printers 5,000 20 27 Replacement of Routers/Switches 7,000 20 28 Telephones/Peripheral Devices 5,000 20 33 Server Replacements 7,000 GRAND TOTAL $ 329,220 Fund Balance Fund balance at FY 12/13 year-end is projected to be $1,078,259 Page 96 General - Maintenance and 5 Year Projection Actuals Estimated Proposed Projection Description 2003 - 2011 FY 11-12 FY 12-13 FY 13-14 1 FY 14-15 1 FY 15-16 1 FY 16-17 TOTALS Dept 7 - 18,000 1 - Ambulance Box, Chassis and Equipment 16 - 200,000 - - - - - 200,000 Fire Chief Vehicle 30 - - 49,000 - - - - 49,000 Ladder/Pumper 34 - - - - - - 1,400,000 1,400,000 Dept 14 - Total Fire/EMS _71 - 200,000 49,000 NEU,- 1,400,000 1,649,0. Illuminated Street.jpnWpt� 35 � ® 24,000in=6 - - - - 24,000 WA- Relocate Pump Irrigation System 7 - 18,000 16,000 - - 3,000 - 37,000 WA - Carpet/VCTflooring 8 2,515 - 20,500 - - 5,000 - 28,015 WA - Exterior environmental improvements - irrigation 9 - 7,200 - 5,000 5,000 - 7,000 24,200 WA- Environmental building upgrades - lighting -water 10 14,281 9,100 1,500 5,500 - 10,000 - 40,381 WA - Exterior paint- Wood treatment & replacement 11 13,938 7,000 5,000 11,000 11,000 5,000 - 52,938 WA - Painting/cloth wall coverings repairs 12 - 5,000 18,200 - - 10,000 8,000 41,200 WA- Seal roof and overhangs 13 - 5,000 13,400 - - 8,000 - 26,400 WA - Parking Lot 15 - 17,600 - - - 10,000 18,000 45,600 WA - Refurbish classrooms 17 - 25,000 25,000 25,000 25,000 25,000 25,000 150,000 WA - Update Security System 18 - - 6,000 - 10,000 - 5,000 21,000 WA - Update Security Cameras 19 4,803 5,000 8,000 5,500 - - 6,000 29,303 WA - Interior Building R&M 23 - 3,500 12,000 - - - 12,000 27,500 WA -15 Ton Split HVAC System 24 - 8,000 32,300 20,900 - - 12,000 73,200 WA- 2 Ton Roof Top Units 25 5,500 6,000 40,500 - - 5,000 - 57,000 WA - A/C 2 ton & 7.5 ton (server room) 26 - - - - - 6,000 - 6,000 WA - Heater boilers 29 - 10,000 10,320 - 10,000 - - 30,320 WA - HVAC System replacement 32 - - - 5,500 5,000 5,000 13,000 28,500 WA -Plumbing Repair & Replacement 36 - - 10,000 5,000 5,000 5,000 5,000 30,000 Dept 17 - Total Facilities & Grounds Maintenance 41,037 126,400 218,720 71,000 97,000 111,000 748,557 - 10,000 10,000 10,000 10,000 10,000 - 50,000 Trail Repairs 14 10,000 10,000 10,000 Dept 19 - Parks and Recreation NE&I Cisco Call Manager Upgrade/Domain Controller 20 - 14,000 3,500 - - - - 17,500 Network Printers 21 - 630 5,000 5,000 5,000 5,000 5,000 25,630 Replacement of Routers/Switches 27 - 438 7,000 16,500 20,000 20,000 20,000 83,938 Telephones/Peripheral Devices 28 - 8,200 5,000 10,000 5,000 7,500 10,000 45,700 Server Replacements 33 - 8,763 7,000 7,000 10,000 10,000 10,000 52,763 Dept 20- Total Information Technology 38,500 40,000 42,500 45,000 225,531 Page 97 THE TOWN OF :STLAKE WESTLAKE ACADEMY This fund was incorporated into the Town's budget beginning in FY 10/11. Westlake Academy opened its doors in September 2003 when the Town of Westlake officials took advantage of the State of Texas' acceptance of chartered schools and thus, became the first and only municipality in the state to receive a chartered school designation. This section includes an excerpt from the adopted Westlake Academy operating budget for FY 2012/2013 including the transmittal letter and the five year forecast. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION 4F INTEGRITY" --a. NM=ft= � Service 'At IE 15 2C 21 2, 2-1 24 2,' 2E 27 2E 25 3C 31 32 3- 34 Westlake Academy Program Summary Fiscal Year 2012/2013 REVENUES & OTHER SOURCES Adopted Estimated Proposed Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES & OTHER SOURCES 767,933 9% 354,020 -35% Federal Program Revenues 157,445 150,844 163,919 69,239 State Program Revenues 3,945,658 4,494,586 4,380,317 4,488,261 Local Revenues 874,207 839,412 1,238,685 1,281,934 64 Other Operating Costs 246,527 385,824 297,752 289,986 65 Debt Service - - - - -67% (116,608) -47a 1 (244,938) Total Revenues 4,977,309 1 5,484,842 5,782,921 5,839,434 Other Sources 659,704 36,967 104,844 44,823 Total Other Sources 1659,704 36,967 104,844 44,823 TOTAL REVENUES & OTHER SOURC M 5,637,013 5,521,809 5,887,765 5,884, EXPENDITURES & OTHER USES 767,933 9% 354,020 -35% 61 Payroll Related & Benefits 3,450,208 3,957,924 4,138,744 4,492,764 62 Professional & Contracted Services 849,942 971,025 1,149,978 749,490 63 Supplies and Materials 338,308 260,447 360,672 286,576 64 Other Operating Costs 246,527 385,824 297,752 289,986 65 Debt Service - - - - -67% (116,608) -47a 1 (244,938) Total Expenditures 4,884,985 5,575,220 5,947,146 5,818,816 er ses 174,271 Total Other Uses 603,000 49,807 174,271 57,663 TOTAL EXPENDITURES & OTHER USES 5,487,985 5,625,027 6,121,417 5,876,479 Proposed FY 12/13 Vs Estimated FY 11/12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 149,028 1 (103,218) (233,652) 7,778K - 1037.1 241,430 35 3E 37 3E 39 4C 41 42 43 44 45 46 46 FUND BALANCE, BEGINNING 767,933 9% 354,020 -35% (400,488) -21% (74,096) -3% (7,766) 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 -2% (128,330) 97. 68 -67% (116,608) -47a 1 (244,938) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 EXCESS REVENUES OVER(UNDER) EXPENDITURES 1 149,028 1 (103,218) (233,652) 7,778K - 1037.1 241,430 35 3E 37 3E 39 4C 41 42 43 44 45 46 46 FUND BALANCE, BEGINNING 767,933 916,961 916,961 683,309 .FUND BALANCE, ENDING 916,961 813,743 683,309 691,087 Restricted/Assigned/Committed Funds 115,810 3,684 24,396 0 UNASSIGNED FUND BALANCE, ENDING 801,151 810,059 658,913 691,087 # of Operating Days 65 55 45 45 Restricted/Assigned/Committed Funds A Technology/FFE A Uniform/Equipment Replacement Page 99 -257, (233,652) 1% 7,778 -100% (24,396) 5% 32,174 0% 0 36 37 38 39 40 41 42 43 44 45 46 46 FUND OVERVIEW WESTLAKE ACADEMY This fund was incorporated into the Town's budget beginning in FY 10/11. Westlake Academy opened its doors in September 2003 when the Town of Westlake officials took advantage of the State of Texas' acceptance of chartered schools and thus, became the first and only municipality in the state to receive a chartered school designation. As a chartered school, Westlake Academy is an open enrollment public school. In 2008 the Texas Education Agency (TEA) renewed the Academy's charter until 2016. The officials who pioneered the school also decided to follow another brave path in offering the globally recognized International Baccalaureate (IB) curriculum which is now being provided in over 900 schools nationwide and over 2,300 in 128 countries worldwide. Westlake Academy is owned and operated by the Town of Westlake and is the largest operating department of the Town. The TEA requires a separate budget be submitted to the state. A portion of that budget is now incorporated into the Town's annual budget. The Academy's fiscal year begins on September 1 st and ends of August 31 st. Revenues and Other Resources • FY 12/13 is budgeted at $5,884,257 • A decrease of ($3,508) under the ending estimated FY 1 1 /12 budget of $5,887,765 Expenditures and Other Uses • FY 12/13 is budgeted at $5,876,479 • A decrease of ($244,938) over the ending estimated FY 1 1 /12 budget of $6,121,417 • Transfers of indirect operating expenditures of $325,000 were not budgeted for FYI 2/13. Fund Balance • The projected ending fund balance for FYI 2/13 is estimated at $676,249 Page 100 Excerpt from FY 2012/13 Adopted Westlake Academy Budget Executive Summary August 13, 2012 Honorable President & Board of Trustees Westlake Academy 2600 J. T. Ottinger Road Westlake, TX 76262 RE: Transmittal of FY 2012 — 2013 Westlake Academy Budget: "Holding to the Vision, Rising to the Challenge" As Superintendent for Westlake Academy, I am submitting for your consideration the Budget for FY 12/13. This Budget for Westlake Academy encompasses all teaching and extra -curricular operating expenditures as well as State public school funding and private donations used to support the daily school operations of Westlake Academy in the 2012/13 school year. This 2012/2013 All Funds Budget totals $5,818,815 representing a 2% decline primarily due to the loss of one-time, federal and local, special revenue funds. The adopted FY 12/13 budget increases the General Fund, Fund Balance by $28,490. The increase is the result of an additional contribution from the Westlake Academy Foundation of $303,700, which will cover a portion of the costs associated with instructional personnel, curriculum, and professional development. With the continued support of the Westlake Academy Foundation, in addition to the Westlake Blacksmith Annual Fund, the Academy will be able to balance the budget through FY 12/13. If the State does not increases public education funding in the next biennium, it will be necessary to utilize the Academy's fund balance to balance the budget following FY 12/13. Figur Page 101 Budget Presentation I welcome the opportunity to present and discuss operational plans and related financial impact with all interested parties. Interaction among interested groups consistently leads to operational and educational improvements which become available to the students and parents of Westlake Academy. The development, review, and consideration of the 2012/13 Governmental Fund Budgets (the General Fund, and Special Revenue Funds) were completed with a detailed and exhaustive review of every revenue and expenditure item within the context of the Academy's Vision, Mission and Values statements, Strategic Planning efforts, and Board Policy. The budget document and the year-end annual audit are the primary vehicles to present the financial plan and the results of operations at the Academy. The budget document is organized into the following sections: • Introductory Section — Introduces the reader to the document as a whole. It highlights important information contained in the budget. Users rely on this section to get an overview — a snapshot of what they can expect to find in the rest of the document. • Organizational Section — Provides the context and framework within which the budget is developed and managed. The context for the budget is substantially predicated on the type and level of service to be provided the students of the Academy. The framework also includes the Academy's organizational and financial structure as well as the controls that direct and regulate the development and administration of the budget. • Financial Section — Presents the heart of the Academy's budget document. The budget financial schedules present the adopted budget for the Academy compared with the results of past budget plans and with future projections. • Informational Section — Contains information on past and future budgets and factors influencing the adopted budget. It puts the adopted budget into context and it explains past budget decisions. Page 102 Westlake Academy Mission, Vision & Values Westlake Academy is a public charter school offering the International Baccalaureate (IB) curriculum. Founded in 2003, with a mission to achieve academic excellence and develop life-long learners who become well-balanced, responsible global citizens, Westlake Academy is the first and only municipally - owned school in the state to receive a charter designation. Westlake Academy is the fifth school of only ten in the United States, and the only public school, to offer the full IB curriculum for grades K-12. During this year's budget retreat great care and consideration were given to the mission and vision of the Academy and the impact that these have on both the long-term goals of the Academy and its day- to-day operation. The vision and mission statements represent the outcome of this discussion and evidence the Board's continued dedication to academic excellence and personal achievement. The values statements are currently being reviewed by the Board and are listed here for reference only. MISSION: "Westlake Academy is an IB World School whose mission is to provide students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners." VISION: "Westlake Academy inspires students to achieve their highest individual potential in a nurturing environment that fosters the traits found in the IB learner profile." Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-minded, Caring, Risk -takers, Balanced, and Reflective— VALUES Maximizing Personal Development Academic Excellence Respect for Self and Others Personal Responsibility Compassion and Understanding The following desired outcomes summarize the goals and objectives established by the Board of Trustees and leadership staff at the Academy. The vision, mission and organizational goals and objectives are discussed in greater detail in the Organizational section of this document (see pages 26-31). Desired Outcomes High Student Achievement Strong Parent & Community Connections Financial Stewardship & Sustainability Student Engagement -Extracurricular Activities Effective Educators & Staff Page 103 Budget Framework - "Governing and Managing for Outcomes" The budget document is but one part of a system designed to link together critical governance and management decision making tools. This system is called "Governing and Managing for Outcomes" and is designed to integrate: • Strategic planning • Five (5) year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes • Reporting to monitor progress in outcome achievement and accountability for results Budget Process • Aligning resources to prioritized outcomes • Long term approach to ensure financial sustainability • Working within Board adopted financial policies for the Academy • Maintaining core services The process of projecting the budgeting needs of the Academy is a continual process that responds to the changing needs of the Academy students and staff as well as changes in the fiscal environment such as the current State funding reductions. The process of developing the Academy budget for fiscal year 2012/13 began with the Westlake Board of Trustees meeting that was held in February of 2012. Following is a summary of the main steps taken in preparation of the adopted budget. BOARD OF TRUSTEE BUDGET REVIEW The Board of Trustees regularly receives quarterly budget updates, some of which are detailed in the trend analysis and the five-year financial forecast discussed later in this document. Upon receipt of the adopted annual budget, the Board holds budget workshops to review adopted changes, their associated outcomes for the next fiscal year, as well as their impact in a five (5) year financial forecast. BUDGET ADOPTION The Board of Trustees holds the required public meeting and adopts the budget in August prior to beginning the fiscal year which runs from September 1st to August 31st. BUDGET AMENDMENTS The Final Amended Budget for the Year Ending August 31, 2012 will be submitted at the August, 2012 Board meeting. It will reflect all amendments previously approved by the Board of Trustees plus any final amendments. Often, these amendments influence the shaping of the current budget as actual trends in revenues and expenditures are realized and accounted for. Page 104 Figure 2 Budget Process Timeline Description of Activities October - December Strategic Plan preperation process occurs December Westlake Academy Leadership Team (WALT) begins planning FY 12/13 Budget January WALT meets with WA affiliates forjoint planning for FY 2012/13 January - March Develop CIP, Five Year Projection & Personnel Cost Estimates February Broad overview of 2012/13 Budget with BOT April Develop improvement plans for each grade level/dept. May Strategic Plan preparation process occurs, preliminary budgets developed June - July Current Budget Review June 7th BOT Budget Retreat August 13th BOT consideration/adoption of Westlake Academy FY 2012/13 Budget September - August Budget Amendments for FY 2012/13 Fall 2012 Begin strategic plan update/review process for FY 2012/13 January 2013 Annual Financial Report for FY 2011/12 Academy Approach The Academy approach to coping with the combination of fast student growth in a restricted funding environment along with increasing academic standards requires that the budget process is instructionally driven and guided by the Academy's Strategic Plan. During the budget development process the staff reviewed all revenues and expenditures and focused on aligning the allocation of resources, both personnel and financial, with the accomplishment of established goals and objectives. Page 105 Explanation & Summary of Major Budget Components REVENUES The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local. State funding is the Academy's largest revenue source making up over 76% of revenues from all funds. Staff estimates that the average level of total state aid paid through the Foundation School Program (FSP) in FY 12/13 will be approximately $6,463 per student; approximately an eight percent (8%) decrease from the FY 10/11 levels. As an open -enrollment charter school, Westlake Academy has the ability to establish specific class sizes and set limitations on secondary boundary enrollment. Enrollment for FY 12/13 is projected at 650 students in accordance with the current plan to attempt to maintain 20 students per class. Federal funding is received through grants that support special education and accounts for less than 5% of revenues for all funds; this funding is projected to decrease due to the reduction of the Education Jobs Grant. Local funding consists of two major sources, the Town and the Westlake Academy Foundation. As a municipally -owned charter school Westlake Academy does not have taxing authority; the Town of Westlake is responsible for debt service and capital improvements, these costs are estimated at $1,498,528 for FY 12/13. The Westlake Academy Foundation is an independent non-profit organization that raises funds through donations and fund raising; the FY 12/13 forecast is $1,108 per student, or approximately $720,000. EXPENDITURES Compensation and benefits are the largest operating cost for Westlake Academy. The current teacher pay scale is based on the Board policy of being within 3% of the median of the nine (9) surrounding public school districts. Per Board direction, the salary scale was held flat for FY 11/12; however, the adopted FY 12/13 budget has built in a 1% pay increase for all faculty and staff members. The increase for all applicable staff equals $36,077 (approximately 2%, including step -increases). The indirect operating costs were paid by the Academy in FY 11/12, but due to the reduction of state funding in the current biennium and the uncertainty of future funding scenarios, the indirect operating cost transfer has been removed from the FY 12/13 budget. The following table reflects these transfers with the indirect costs included in the FY 11/12 adopted budget. Figure 3 - Overall Total Cost Summary — All Governmrntal Funds and Municipal Debt Service Payments Estimated Proposed Overall Cost Summary FY 11-12 FY 12-13 Proposed Westlake Academy Budget $ 5,947,147 $ 5,763,815 Estimated Town Funded Indirect Operational Costs (Support Services) - 306,900 Subtotal All Operating Costs 5,947,147 6,070,715 Annual Debt Service Payment (Paid through Town) 1,498,450 1,498,528 Grand Total All Costs $ 7,445,597 $ 7,569,243 Page 106 Other Considerations MULTI-YEAR FINANCIAL FORECAST The current financial forecast shows the Academy's utilizing the entire fund balance by FY 16/17. Unless revenues increase or operating expenditures are reduced, Westlake Academy's estimated unassigned Fund Balance will drop below the TEA recommendation of maintaining a 45 day operating balance which was has been adopted by the board as a financial policy in FY 13/14. Figure 4 – Revenues, Expenditures & Fund Balance – General Fund Summary Historically, revenues and expenditures have increased at relatively the same rate which has dictated the need for a higher fund balance in order to sustain the 45 -day minimum requirement established by Board policy. PROGRAMS & FACILITIES In FY 10/11 and FY 11/12 the Academy increased the course offerings in foreign languages, theater arts, technology, and science. This expansion of programs and facilities was primarily funded through the addition of a third section of 20 students in grades seven through grade eleven (G7 — G11) in FY 11/12. Due the increase in program offerings and student enrollment, facilities are operating at close to 100% capacity and required the addition of three portable buildings which were added in FY 11/12. Additional facility studies have been conducted by Project Management Services, Inc. (PMSI), and the Academy's original architectural firm, Bennett, Benner, and Pettit. A Campus Master Plan and Facility Plan is expected to be completed and presented to the Board of Trustees for adoption in FY 12/13. Page 107 WA Programme Growth (Revenue, Expenditure, Fund Balance) N $7 0 $6 $5 $4 $3 $2 $1 $0 FY FY FY FY FY FY FY FY FY FY FY FY FY FY 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Revenues 1.09M 1.83M 2.41M 2.88M 3.17M 3.66M 4.28M 4.61M 5.24M 5.2M 5.68M 5.66M 5.7M 5.67M � Expenditures 1.07M 1.61M 2.21M 2.62M 3.23M 3.71M 3.92M 4.52M 5.33M 5.39M 5.68M 5.79M 5.9M 6.01M —Fund Balance 12K 232K 428K 692K 634K 502K 754K 915K 811K 658K 654K 507K 288K -71K Historically, revenues and expenditures have increased at relatively the same rate which has dictated the need for a higher fund balance in order to sustain the 45 -day minimum requirement established by Board policy. PROGRAMS & FACILITIES In FY 10/11 and FY 11/12 the Academy increased the course offerings in foreign languages, theater arts, technology, and science. This expansion of programs and facilities was primarily funded through the addition of a third section of 20 students in grades seven through grade eleven (G7 — G11) in FY 11/12. Due the increase in program offerings and student enrollment, facilities are operating at close to 100% capacity and required the addition of three portable buildings which were added in FY 11/12. Additional facility studies have been conducted by Project Management Services, Inc. (PMSI), and the Academy's original architectural firm, Bennett, Benner, and Pettit. A Campus Master Plan and Facility Plan is expected to be completed and presented to the Board of Trustees for adoption in FY 12/13. Page 107 Financial Summary The budget is developed within the guidelines predicated by the Texas Education Agency and is organized into a series of accounts called funds. The total revenue for all funds for the Academy is estimated to be $5,839,434 and total expenditure appropriations amount to $5,818,815. The following schedules present a comparison of revenues and expenditures for all Governmental Funds in the Academy's Budget. Budgets for the General Fund, the Food Service Fund (a Special revenue Fund) and the Debt Service Fund must be included in the official district budget (legal or fiscal year basis). The Academy does not maintain a Food Service Fund or a Debt Service Fund; therefore; the only fund legally adopted will be the General Fund. For informational purposes only, budgets for Special Revenue Funds are included throughout the presentation. Figure 5 — Table: Revenue Summary — All Governmental Funds REVENUES Federal Progra m Revenues State Program Revenues Local Revenues Total Revenues Audited Audited Audited FY 08/09 FY 09/10 FY 10/11 Adopted Estimated Adopted Budget Budget Budget FY 11/12 FY 11/12 FY 12/13 $ 56,134 $ 199,436 $ 157,445 $ 150,844 $ 163,919 $ 69,239 3,163,129 3,687,706 3,945,658 4,494,586 $ 4,380,317 $ 4,488,261 538,992 656,508 874,207 839,412 $ 1,238,685 $ 1,281,934 $ 3,758,255 $ 4,543,649 $4,977,310 $ 5,484,842 $ 5,782,921 $ 5,839,434 Figure 6—Graph: Revenue Summary — All Governmental Funds Revenues The largest revenue source for Westlake Academy is State Foundation School Program funding which makes up 76% of All Governmental fund revenues. Figure 7 Table: Expenditure Summary -All Governmental Funds EXPENDITURES (BY FUNCTION) 11 - Instructional 12 Resources & Media 13 Staff Development 21 - Instructional Leadership 23 -School Leadership 31 - Guidance&Counseling 33 - Health Services 35 - Food Services 36 CoCurricular/ Extra. Activities 41 Administrative 51 - Maintenance& Operations 53 - Data Processing 61 - Community Services 71 -Debt Service 81-FacilityAcquisition/Construction Total Expenditures Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 11/12 FY 12/13 $ 2,120,372 $ 2,428,184 $ 2,764,022 $ 3,029,625 $ 3,278,462 $ 3,377,707 62,513 87,511 73,398 90,134 82,929 140,756 36,973 95,387 111,933 126,230 99,068 126,952 11,660 97,623 125,265 131,742 138,136 127,812 179,554 286,307 294,931 333,805 345,030 353,683 163,575 159,850 165,245 220,628 236,725 234,011 58,845 56,963 53,513 59,700 60,853 58,324 15,448 8,135 - 9,657 12,363 9,544 111,738 116,808 7,275 134,726 101,818 186,036 527,000 318,624 105,472 601,746 697,464 314,263 279,485 265,969 301,672 587,169 621,629 607,211 88,720 157,923 525,273 159,874 174,781 166,686 66,822 59,592 154,962 66,244 79,010 91,890 82,991 41,495 69,739 - - - - - 132,286 23,940 18,878 23,940 $ 3,805,696 $ 4,180,369 $ 4,884,985 $ 5,575,220 $ 5,947,147 $ 5,818,815 Figure 8 - Expenditure Summary - All Governmental Funds The largest expenditure category is Payroll & Related items which makes up approximately 77% of all Governmental fund expenditures. Budget Trends GENERAL FUND - STATE FUNDING Despite a 4% historical average annual growth rate, the State of Texas continues to lag behind the national average for per pupil funding, providing $1,000 to $1,500 less per pupil than the national average. Due to its Charter status, Westlake Academy receives less State funding per student than other non -charter public schools because public charter schools in the State of Texas do not receive facility funding. The Academy's State funding per pupil has declined by approximately $745 per pupil since FY 09-10. Figure 9 Average Funding per Student Average Funding / Student 12,000 10,000 - 8,000 6,000 4,000 2,000 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Estimated Adopted WA Mean Texas Mean National Mean The difference between the amount of Texas State funding and Westlake Academy is the amount dedicated to facilities funding. Public charter schools in Texas do not receive facility funding. The largest funding sources for Westlake Academy continue to be State funding and the Blacksmith Apprentice Program. State funding has averaged between 80% and 86% of General Fund revenues from FY 07/08 to FY 12/13 while Blacksmith contributions have averaged between 10% and 15%. Figure 10 General Fund Revenues by Source LM $6 C 0 $5 $4 $3 $2 $1 $0 FY 12/13 Revenues by Source FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Audited Audited Audited Audited Estimated Adopted GENERAL FUND - LOCAL FUNDING All Other Local Athletics Transportation • Lunchroom Revenues ■ Investment Earnings WAF Salary Reimbursement ■ Blacksmith Apprentice Program As the student population has grown, the Blacksmith annual program contributions have increased. However, the average contribution per student was declining from FY 06/07, but has begun an upward trend in the last two fiscal years. 11 Blacksmith Contributions Blacksmith Program Contributions a _70VU,VVV 0 $700,000 $600,000 },$500,000 p $400,000 U $300,000 O $200,000 $100,000 $ Est. Propos FY FY FY FY FY FY FY FY ed FY 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Total Raised $239,446 $335,727 $388,377 $407,012 $394,129 $431,409 $524,038 $679,000 $720,000 Average per Student 907 1,036 1,122 1,074 945 879 989 1,113 1,108 2,000 1,800 1,600 1,400 1,200 1,000 800 600 The FY 12/13 Blacksmith contributions of $720,000 are based on an estimated per -student average donation of $1,108. Service Level Adjustments This budget makes use of Service Level Adjustments (SLA's) to track any cost changes. These cost changes will fall into one of four categories: first, increased operating costs to maintain current levels of service; second, increased operating costs due to expanded levels of service; third, increased costs due to the development of new services, and fourth, cost savings. Cost savings may occur for any number of reasons, but primarily arise due to increased efficiency, service level reductions, or not expending the budgeted resources. Generally speaking, Service Level Adjustments (SLA's) in this budget fall into the category of increased operating costs for existing programs. Some SLA's are due to existing program expansion, such as increasing the number of international teachers at Westlake Academy. SLA's involving new expenditure areas to target for recommendation to the Board for FY 11/12, staff recommended several areas: new positions, employee compensation. Instructional Salary Related Expenditures Total: $188,266 Desired Outcome: High Student Achievement In FY 12/13 we will have 69.93 full-time equivalent employees (FTE's), an increase of 2.45 FTEs. The increase in expenditures is the result of a combination of adding new positions, the years of experience our new teachers, an increase in unemployment insurance and other employer contributions, as well as the increased cost associated with teacher classifications and international teacher stipends. • Asst. to Secondary Principal (.50) • PYP Reading Specialist (.60) • PYP Spanish (.40) • DP Humanities (.50) • MYP Foreign Language (.34) • MYP/DP Reading Specialist (.41) • PYP PE Teaching Aide (.70) • Librarian/Aide (-1.0) Lapse of Education Job Grant (Federal Funding to Save Teaching Positions) Total: $91,375 Desired Outcome: High Student Achievement In FY 11/12 the Academy received $91,375 in a federal entitlement grant for teacher retention. This was a one year grant that was utilized to offset the salaries of approximately 1.75 FTE teaching positions. With the lapse of the federal funding, these teaching positions were moved back into the General Fund. Employee Compensation and Benefits Total: $36,077 Desired Outcomes: Effective Educators & Staff — High Student Achievement In FY 11/12 the Board directed staff to prepare the budget holding teachers' salaries flat. In FY 11/12 several of the surrounding districts increased their teacher pay and in order to maintain the Board policy of being within 3% of the median, it will be necessary to increase salaries 1% in FY 12/13. With over 70% of the Academy's expenditures being directly related to employee pay and benefits, it is important that we offer competitive salaries, wages, and benefits to attract and retain a strong faculty base, even in a difficult economy. Media & Resource (Library) Desired Outcome: High Student Achievement Total: $58,109 With the renovation to the Scott Bradley Library and the introduction of the Media Center / Research environment, the staffing requirements shifted and two full-time teachers will be working with students in the PYP, MYP, and DP program on computer aided research and database utilization skills. Athletics Department Desired Outcome: Student Engagement & Extra -Curricular Activities Total: $65,921 The majority of this cost increase is related to the experience level of the Athletic Director, the increase in expenditures of assigned funds for equipment and uniform replacement, and anticipation of greater participation in athletics, requiring additional field rentals, referees, etc. The Academy collects player fees to help offset the cost of extra -curricular activities. Professional Development Total: $50,233 Desired Outcome: Effective Educators & Staff; High Student Achievement In FY 11/12, Westlake Academy received thousands of dollars in special revenue funds (grants) targeting professional development. Without the renewal of all these grants, the professional development budget was moved back into the General Fund. Ending In -Direct Operating Cost Transfer from Academy Budget to Town Budget Total: -$306,900 Desired Outcome: Financial Stewardship and Responsibility In FY 11/12 the Academy reimbursed the Town for the in -direct operating costs for administrative services shared with the Town of Westlake. This includes the Superintendent, Finance Director, Human Resources Director, Facilities Director, and support personnel. This had been paid by the Town of Westlake from the inception of the school in 2003. The amount represents $325,000 less the 25% portion of the IT Tech and the Maintenance Engineer for time allocated to the Town. Individual Fund Summary GENERAL FUND The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources. FY /13 Adopted: Revenues = $5,608,555 Expenditures =$5,572,225 Figure 12 Revenue & Expenditure Comparison — General Fund Revenue & Expenditure Comparison 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 audited audited audited audited audited audited audited estimated Adopted ■ Revenues ■ Expenditures Expenditures have exceeded revenues over the last two fiscal years. This is due to the State's reduction in public education funding, approximately an eight percent (8%) decline. SPECIAL REVENUE FUNDS The Special Revenue Funds are the funds that account for local, state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. FY 12/13 Adopted: Revenues =$170,879 Expenditures =$191,591 Figure 13 - Special Revenue Funds Comparison Sub -total State Grants 11,911 - Variance Local Activities Estimated Adopted Estimated Fund 461 - Local Campus Activity FY 11/12 FY 12/13 to Adopted SPECIAL REVENUE FUNDS 31,143 30,000 (1,143) Federal Grants through TEA Fund 224 - IDEA B 72,544 69,239 (3,305) Fund 225 - IDEA B Preschool - - - Fund 266 SFSF (ARRA) - - - Fund 287 - Education Jobs 91,375 - (91,375) Sub -total Federal Grants 163,919 69,239 (94,680) State Grants through TEA 73,430 - (73,430) Fund 397 - Advanced Placement Incentive 5,220 - (5,220) Fund 404 - Student Success Initiative 2,200 - (2,200) Fund 410 - Material Allotment Disbursment 3,566 - (3,566) Fund 411 - Technology - - - Fund 429 - AP/IB Campus Awards 925 - (925) Sub -total State Grants 11,911 - (11,911) Local Activities Fund 461 - Local Campus Activity 31,143 30,000 (1,143) Sub -total Local Activities 31,143 30,000 (1,143) Hudson Foundation Grants Fund 481 - Hudson Foundation - - - Fund 483 - Hudson Technology - - Fund 484 - Hudson Teacher Development 35,000 (35,000) Fund 485 - Hudson Teacher Grant 10,000 - (10,000) Fund 486 - Hudson Ron Clark: Teacher Effectiveness 28,430 - (28,430) Sub -total Hudson Foundation Grants 73,430 - (73,430) Westlake Academy Foundation Grants Fund 482 - WAF Fund100 19,259 - (19,259) Fund 487 - WAF Technology for the Next Generation 100,000 - (100,000) Fund 488 - WAF Support Mathematics Teacher 4,235 - (4,235) Fund 489 - WAF Rosetta Stone 10,995 - (10,995) Fund 490 - WAF Whole School Professional Development 36,980 - (36,980) Fund 491 - WAF Accept the Best, Nothing Less! Phase 1 15,167 - (15,167) Fund 492 - WAF Accept the Best, Nothing Less! Phase II 26,742 36,000 9,258 Fund 493 - IB Learns Grant - 35,640 35,640 Fund 494 - WAF Library Fund -an -Item 61,000 - (61,000) Fund 495 - WAF Coop Tables Grant 26,622 - (26,622) Sub -total Foundation WA Grants 301,000 71,640 (229,360) Grant Total - All Special Revenue Funds 581,403 170,879 (410,524) P_ctge_1-1 Informational Summary CHANGES IN DEBT Debt service for the Academy's capital infrastructure is included in the Town of Westlake's municipal budget. The amount of debt outstanding including interest is approximately $32,194,538; this debt will be retired in 2021. The average annual debt service for Academy facilities paid by the Town of Westlake is approximately $1,500,000. Discussion of current and future capital projects may be found in the Organizational Section of this document (see pages 40 & 41). FACILITIES The Academy was designed and built to service approximately 620 students, with the addition of almost 50 students; the facilities at the Academy are projected to reach full capacity at the beginning of the FY 13/14 school year. However, curriculum and course schedules play an equally important role in determining facility use; the IB curriculum places a unique demand on staff and resources. In addition to the permanent structures on the campus, the lease cost for three temporary buildings was added as a budget amendment to the FY 10/11 Academy budget and placed into service in FY 11/12. The buildings are used to support expanded curriculum offerings in the DP programme. These buildings do not meet the criteria for "capital" expenses and are paid for from the Academy's operating budget. The 3 year lease includes a standard purchase option however, no commitment has been made at this time; the Board is currently discussing how this and other facility needs will be met in the future. PERSONNEL TRENDS The Academy has added personnel each year since its opening to support new grade levels and classes as well as curriculum expansion. In FY 11/12 the Academy added 8.4 FTE positions to support additional course offerings and student expansion. In FY 12/13 an additional 2.45 FTE positions for a total of 69.93 FTE employees (see page 95 in the Informational section for a complete list of all positions). Figure 14 Westlake Academy FTE Staff 80 70 60 50 40 30 20 10 Faculty & Staff Growth FY 03/04 - FY 12/13 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 FY 12/13 ll• Instructional Staff Instructional Aides School Leadership ll• Office Staff ll• Counselors IT ll• Nurse i Facilities Total I I Staff levels have increased steadily since the Academy opened in FY 03/04. Staffing levels have increased each year as the program offerings and each grade level is fully filled. The Academy has added 14.68 FTE positions since reaching full grade level expansion in FY 09/10. STUDENT ENROLLMENT TRENDS Westlake Academy's student enrollment is established by two sets of boundaries. The primary boundary encompasses the Town of Westlake and allows Westlake residents automatic entry into Westlake Academy. The secondary boundaries are comprised of 31 of the surrounding school districts. While any school-age child from these districts is allowed to attend the Academy, demand for entrance has exceeded the Academy's capacity necessitating an annual lottery system that is carried out according to the standards and practices dictated by Federal law. Student enrollment has grown since the Academy's opening in FY 03/04 with the addition of one new grade level each year. The Academy opened with Grades 1 through 6 and completed adding grade levels in FY 09-10. The Academy's enrollment continued to expand in FY 10/11 with an increase in target class sizes of 20 pupils per class and the addition of a third section in the secondary programme. In FY 13/14 the campus facilities at the Academy are expected to reach full capacity (including the three portable buildings discussed earlier in this document). Any future growth in student population may necessitate building or leasing additional space. Figure 15 Westlake Academy Student Enrollment I 700 600 500 400 300 200 100 0 WA Student Enrollment 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 FY 12/13 G1-6 K-7 K-8 K-9 K-10 K-11 K-12 K-12 K-12 K-12 Total enrollment has increased steadily since FY 03/04 in harmony with the expansion of grade levels. The increase from 530 in FY 10/11 to 610 in FY 11/12 is due to the Board's decision to expand class sizes in an effort to increase program offerings. Future enrollment increases or decreases are at the sole discretion of the Board. Performance Results The State of Texas utilizes the Texas Assessment of Knowledge and Skills (TAKS) test to assess students' attainment of reading, writing, math, science, and social studies skills required under Texas education standards. Although the test was created before the passage of the No Child Left Behind Act (NCLBA), it complies with the law. The charts below utilize TEA data to compare Westlake Academy's performance with several benchmark school districts including the three districts that have boundaries within the Town of Westlake (Carroll ISD, Keller ISD and Northwest ISD). 100 90 80 70 60 50 40 30 20 10 0 2011 TAKS Results Benchmark Comparisons TAKS % TAKS % TAKS % TAKS % TAKS % Passing Passing Passing Passing Passing Reading/ELA Writing Mathematics Science Social Studies ■ Lewisville ■ Northwest ■ Arlington ■ Birdville ■ Fort Worth ■ Keller ■ Hurst -Euless -Bedford Carroll Westlake Academy Charter I IOf the school districts listed above, Westlake Academy had the highest or second-highest 2011 TAKS performance for every category except science. Operating Costs per Student (Excluding Debt Service & Capital Expenditures) $9,500 $8,500 $7,500 $6,500 $5,500 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Lewisville Northwest Arlington Birdville Fort Worth Keller Hurst -Euless -Bedford Carroll Westlake Academy Charter Westlake Academy's spending per pupil declined sharply in FY 10/11 due to the State Education funding reductions. Recent enrollment increases have improved efficiencies and reduced the per student cost. Benchmarking against the surrounding local ISDs, Westlake Academy's expenditures are near the median when comparing expenditures per student excluding debt service and capital expenditures. Page 119 PARENT SURVEY RESULTS Westlake Academy is focused on delivering high quality educational services and depends upon the constant input from stakeholders. Each year Westlake Academy conducts an Annual Parent Survey to help identify any future needs and to prioritize resource allocation. The FY 10/11 Westlake Academy Parent Survey was conducted in June 2011 and achieved significant improvements in satisfaction (>5%) in thirteen (13) of the nineteen (19) service areas and programs rated. Westlake anticipates completing a parent satisfaction survey every other year to continue to track overall performance and satisfaction. Overall Satisfaction with Quality of Education Satisfied 42 Dissatisfied Yo 14% Neutral 3% 83% of the parent's surveyed were very satisfied or satisfied with the overall quality of education Westlake Academy delivers to its students. AWARDS The Association of School Business Officials International (ASBO) presented a Meritorious Budget Award to Westlake Academy for its Annual Operating Budget for the fiscal year beginning September 1, 2010. This is the second year the Academy has been honored with this award. Additionally, the Academy received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA); representing the fourth year the Academy has received this award. These awards represent a significant achievement that reflect the dedication and commitment the Board of Trustees and staff have given to meeting the highest principles of governmental accounting. These awards are valid for one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to ASBO and GFOA to determine its eligibility. Page 120 SUMMARY Westlake Academy's students, faculty, and staff continue down the path towards excellence, appearing in the top 50 public schools in the nation in three different national rankings. This shows that we lived up to our last year's theme, "Continued Excellence in the Face of Change". In FY 11/12, we spent many hours in discussion about the future of Westlake Academy, our vision, mission, and values. About how best we can reach our ultimate destination in this climate of uncertainty, and constant change. Keeping in mind our last year's budget theme of continuing excellence in the face of change, I would offer for the FY 12/13 budget theme, "Holding to the Vision, Rising to the Challenge". While we have many successes to celebrate, we are constantly striving to improve the Academy through multiple avenues, including: getting the right people on the bus, making sure that we are consistently taking measure of our course, and making adjustments as we move towards our goal; it is through our talented faculty, staff, students, and their supportive families, that we are able to unfailingly rise to the challenges, and hold to our vision. On behalf of our entire learning community, I would like to thank the Board for their leadership, dedication to excellence, and their support in making Westlake Academy and the Town of Westlake, truly a shining example of what can be accomplished when people come together with a common purpose: great things can happen! As with all good teams, it becomes necessary to draw attention to performers who go above and beyond to make sure we accomplish our goals. I would like to recognize the hard work of the Westlake Academy and Municipal Leadership Team, and specifically Debbie Piper and Ben Nibarger for their efforts in completing this award winning document. I know with the team we have in place, we will continue "Holding to the Vision, and Rising to the Challenge". Thomas E. Brymer Town Manager/Superintendent Westlake Academy P_age_121 THE TOWN OF :STLAKE ir-NIF �0 CAPITAL PROJECTS FUND This fund tracks the infrastructure and building projects funded with general fund operating transfers, intergovernmental revenue, bond funds and other special fund sources. Capital projects are those projects over $25,000 that may extend over one fiscal year to complete and reflect multiple expense categories such as engineering, design and construction. All capital projects illustrate not only the expenditure and revenue sources, but ongoing operational impact. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY" --a. NM=ft= ServiceExcellellce 'At I lE 15 2( 21 Y 2' 21 2; 2e 27 2E 25 3( 31 3` 3' 31 3,' 3E Capital Projects Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget vs FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 REVENUES & OTHER SOURCES 4,634,332 3,049,080 -347. (1,585,252) FUND BALANCE, ENDING 4,634,332 2,614,587 0% 159% 4,860,251 General Sales Tax Property Tax 159% 4,860,251 UNASSIGNED FUND BALANCE, ENDING 0% 0% Payroll Related & Benefits Hotel Tax 0% 0% Payroll Transfers In Charges for Services - - 0% Payroll Transfers Out Contributions 400,000 816,500 104% 416,500 Beverage Tax - - - 0% - Franchise Fees 400,000 -100% 0% Insurance Permits & Fees - 0% 0% Repair & Maintenance Fines & Forfeitures - - - - 0% Rent & Utilities Investment Earnings 27,055 27,800 12,800 11,000 -14% (1,800) Misc Income - - 8,000 - -100% (8,000) Total Revenues 27,055 27,800 420,800 827,500 977. 406,700 Transfers In 3,290,659 - 35,000 - -100% (35,000) Bond Proceeds 2,095,000 - 8,500,000 1007. 8,500,000 Total Other Sources 5,385,659 - 35,000 8,500,000 24186% 8,465,000 TOTAL REVENUES & OTHER SOURCES 5,412,714 27,800 JIF 9,327,500 2,426,198 Transfer Out EXPENDITURES & OTHER USES 4,634,332 3,049,080 -347. (1,585,252) FUND BALANCE, ENDING 4,634,332 2,614,587 3,049,080 7,909,331 159% 4,860,251 Payroll / Salaries 3,049,080 7,909,331 159% 4,860,251 UNASSIGNED FUND BALANCE, ENDING 0% 0% Payroll Related & Benefits 0% Payroll Transfers In 0% Payroll Transfers Out 0% Supplies - 0% Services 400,000 -100% (400,000) Insurance - 0% Repair & Maintenance 0% Rent & Utilities 0% Interfund Advances - 0% Debt 36,446 0% Capital Outlay - 0% Economic Development Incentives - - - 0% - Capital Projects 953,317 2,047,545 1,641,052 4,467,249 172% 2,826,198 Total Expenditures 989,762 2,047,545 2,041,052 4,467,249 1197o 2,426,198 Transfer Out 8,900 - - - 0% - Total Other Uses 8,900 0% TOTAL EXPENDITURES & OTHER USES 998,662 2,047,545 2,041,052 4,467,249 119% 2,426,198 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 EXCESS REVENUES OVER(UNDER)EXPENDITURES 4,414,052 1 (2,019,745) (1,585,252) 4,860,2511 -4077. 6,445,50 37 3E 35 4C 41 4, 4` 41 4! 4e 4; 4E 4S FUND BALANCE, BEGINNING 220,279 4,634,332 4,634,332 3,049,080 -347. (1,585,252) FUND BALANCE, ENDING 4,634,332 2,614,587 3,049,080 7,909,331 159% 4,860,251 Restricted/Assigned/Committed Funds 4,634,332 2,614,587 3,049,080 7,909,331 159% 4,860,251 UNASSIGNED FUND BALANCE, ENDING 0% TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 4,634,332 2,614,587 3,049,080 7,909, Restricted/Assigned/Committed Funds C Cash/CD's 410 10110 00 000 4,634,332 2,614,587 3,049,080 7,909,331 159% 4,860,251 0% - 0% 0% 0% TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 4,634,332 2,614,587 3,049,080 7,909, Page 123 38 39 40 41 42 43 44 45 46 47 48 49 FUND OVERVIEW CAPITAL PROJECTS FUND This fund tracks the infrastructure and building projects funded with general fund operating transfers, intergovernmental revenue, bond funds and other special fund sources. Capital projects are those projects over $25,000 that may extend over one fiscal year to complete and reflect multiple expense categories such as engineering, design and construction. All capital projects illustrate not only the expenditure and revenue sources, but ongoing operational impact. Completion of CIP projects may have a fiscal impact to the Town's operating funds as routine maintenance and operational expenditures are necessary to utilize the completed project. When an operating impact has been identified, it is included on the project description sheet, and costs are projected for the next three years. Upon approval of the project for an annual expenditure, the fiscal impact is integrated into the operating budget. Revenues • FYI 2/13 projected revenues are $9,327,500. • This represents an increase of $8,871,700 from the FY 11 /12 estimated budget of $455,800 o Contributions increased $416,500 - TSH proceeds ($400K) were received in FYI 1/12 and a Green Belt grant from TxDot in the amount of $816,500 is proposed in FY12/13 for median landscaping of FM1938/Davis Blvd. o Interest income is project at $11,000 for FYI 2/13 - this is a decrease of $1,800 compared to FYI 1/12. o Bond Proceeds are projected at $8.5M for FYI 2/13. These proceeds will be used to fund construction of three new buildings at Westlake Academy (if approved); ■ Cafetorium - includes stage, dressing area, storage and catering kitchen for dining and general purposes; approximately 9,600 sf. ■ Three story Secondary School - includes 15 classrooms, flex and office space; will be designed to allow for future addition if needed; approximatelyl8,900 sf. ■ Field -house - will house locker rooms to be used for both athletics and PE; a visiting team locker room; storage for equipment; offices and space to be used for the PE program; approximately 9,600 sf. Expenditures • FY 12/13 project expenditures are projected to $4,467,249 Project # Project Description Amount CP20 FM 1938 Streetscae/Wa findin 1,353,469 CP28 Streets Survey 30,645 CP30 SH 1 14/Hwy 170 Enhancements 345,460 CP31 Sta ecoach Hills Reconstruction/Draina e 41,680 CP41 I Dove Vaquero to Terra Bella 221,995 CP42 Trail Connection at 114/Solana 15,000 CP45 Westlake Portion of Hillwood Projects 1,044,000 CP46 WA North Driveway Lighting 40,000 CP47 Hwy 377 Westport Parkway Sign 25,000 CP48 Westlake Academy Expansion 1,350,000 Total Project Expense $ 4,467,249 Fund Balance • FY 12/13 ending fund balance is projected to be $7,909,331 Page 124 Capital Projects Fund 5 Year Projection Actuals Estimated Proposed Projection Proj No. Description 1 2003 - 2011 FY 11-12 FY 12-13 1 FY 13-14 1 FY 14-15 1 FY 15-16 FY 16-17 TOTALS Page 125 Revenues and Other Sources CP20 n/a Contributions - TSH Proceeds - 400,000 - - - - - 400,000 n/a Transfer in from GF for WA Expansion 30,645 35,000 - CP30 SH 114/Hwy 170 Enhancements 35,000 CP47 Hwy 377 Westport Parkway Signal 390,940 336,000 - 16,500 - 7,220 16,500 CP20 FM 1938 Streetscape/Wayfinding 498,900 CP32-B 800,000 172,000 192,443 972,000 - Total Revenues and Other Sources CP34 S. Roanoke Road Reconstruction & Drainage 2,900 1 $ 172,000 $ $ - 453,000 Page 125 Capital Project Detail CP20 FM 1938 Streetscape/Wayfinding 592,877 808,609 1,353,469 567,100 253,100 - - 3,575,155 CP28-B Streets Survey 29,355 20,000 30,645 - - 80,000 CP30 SH 114/Hwy 170 Enhancements 7,500 - 345,460 390,940 336,000 1,079,900 CP31-B Stagecoach Hills Street Reconstruction & Drainage 7,220 450,000 41,680 - - 498,900 CP32-B N. Roanoke Road Reconstruction & Drainage 3,348 192,443 - - 195,790 CP34 S. Roanoke Road Reconstruction & Drainage 2,900 - - 453,000 455,900 CP40 Sam School Road Reconstruction & Drainage - - 216,000 - 216,000 CP41 E. Dove Road Reconstruction & Drainage (Vaq - TB) 221,995 404,945 626,940 CP42 Trail Connection at 114/Solana - - 15,000 - 15,000 CP45 Hillwood Misc Project Expense 4,740 85,000 1,044,000 1,133,740 CP46 WA North Driveway Lighting - - 40,000 40,000 CP47 Hwy 377 Westport Parkway Signal 50,000 25,000 - - 75,000 CP48 Westlake Academy Expansion 35,000 1,350,000 2,225,000 2,820,000 2,105,000 8,535,000 n/a TSH Donation Expense to WA Foundation - 400,000 - - - - - 400,000 Total Capital Projects $ 647,940 $ 2,041,052 $ 4,467,249 $ 3,803,985 $ 3,862,100 $ 2,105,000 $ - $ 16,927,325 Page 125 FM 1938 Streetsca efWa findin Vision Point: Inviting Neighborhoods 1 410-74400-00-20 Project consist of the design and construction of landscape and hardscape improvements to the FM 1938 corridor from SH 114 south to Randol Mill Road, including sidewalks, trailheads, signage, rest areas, plantings, entry monuments. Per developer's agreements: Fidelity is to provide funding for landscape enhancements to the median and ROW (est. $322K) and Vaquero (Discovery Land) was to provide landscape enhancements to the median (est. $217K). We anticipate the Fidelity and Discovery Land amounts will need to be negotiated as the developer's agreements don't provide a cap nor scope of work to be designed to. The Town is required to install sidewalk on the west side of FM 1938 from Dove to SH 114 per the Fidelity developer's agreement at our cost. Utility relocations will be necessary to accomodate construction, including adjusting manholes, fire hydrants, valves and meters as necessary. Maintenance is for irrigation only. -9;J11qJA_q :111110 6111 = Expense Description Est. thru 09/30/12 Proposed FY 12/13 Planned 7 Project Total 13/14 14/15 15/16 16/17 Engineering Construction - 1,401,486 - - 1,353,469 567,100 - - - - - - 3,575,155 253,100 10,000 10,000 10,000 10,000 10,000 50,000 Services - - - - - EXPENDITURES TOTAL 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 Page 126 Description Funding Description Est. thru 09/30/12 Proposed FY 12/1313/14 Planned Project 14/15 15/16 16/17 Total Capital Projects Fund - Cash 1,401,486 1,353,469 567,100 253,100 - 3,575,155 Contributions/Grants - - - - - 10,000 10,000 10,000 10,000 10,000 50,000 Services - - - - - - - Equipment - FUNDING TOTAL 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 Page 126 Description Est. thru Proposed 09/30/12 FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - - - - - Maintenance (ROW) - 10,000 10,000 10,000 10,000 10,000 50,000 Services - - - - - - - Equipment - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL - 10,000 101000 10,000 10,000 10,000 50,000 Page 126 Street Survey Vision Point: Inviting Neighborhoods 410-73000-00-28 The Street Survey will evaluate the current status of streets and thouroughfares within Westlake's Town limits. This information will be used to establish a prioritization for repairs and replacements as well as further definition of future standards of construction and repair. We will review street design standards and update as necessary. •;• Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering 49,355 30,645 - 80,000 - - - Maintenance - - - - - - Services - - - - - EXPENDITURES TOTAL 49,355 30,645 - - - - 80,000 ff IMPACT Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 49,355 30,645 - 80,000 Supplies - - - - - - Maintenance - - - - - - Services - - - - - - FUNDING TOTAL 49,355 30,645 - - - - 80,000 ff IMPACT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - - - - Maintenance - - - - - - Services - - - - - - Equipment - - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL I - I - I - I - I - I - I - Page 127 SH114 & Hwy 170 Enhancements Vision Point: Inviting Neighborhoods 1 410-74400-00-30 This project would be a cooperative effort between Westlake, Trophy Club, and Roanoke consisting of the design and construction of landscape and hardscape improvements to the SH 1170 & 114 interchange to include plantings, painting, and entry monuments. Maintenance is for irrigation only. Project costs are estimated to be $3,000,000 for construction and $200,000 for engineering design. Funding participation is anticipated to be 1/3 from each party. 411914 1 Expense Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Engineering 7,500 - - Construction - 345,460 390,940 - - - 7,500 336,000 - - 1,072,400 336,000 - - 726,940 - - - Services - - - - - - Equipment - - - - - - EXPENDITURES TOTAL 7,500 345,460 390,940 336,000 - - 1,079,900 IMPACT ON OPERATING Funding Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 7,500 345,460 - - - - 352,960 Pending Bond issue - - 390,940 336,000 - - 726,940 - - - Services - - - - - - Equipment - - - - - - Debt Service - - FUNDING TOTAL 7,500 345,460 390,940 336,000 - - 1,079,900 IMPACT ON OPERATING Est. thru Proposed Description 09/30/12 FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - Maintenance - - - - Services - - - - - - Equipment - - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL - - - - - - - Page 128 Stagecoach Hills Street Reconstruction and Drainage Vision Point: Inviting Neighborhoods 1 410-74400-00-31 The project will provide stabilization of road subgrade and 2" of asphalt to the approximate 4,500 LF of pavement in the Stagecoach Hills Subdivision and replace/improve culverts and ditches. Foresee crack sealing during the 2nd year after completion. This project is not a candidate for Tarrant County participation. mossomm— -----�*sr. M IMP Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - - Construction 457,220 41,680 - - - - - 498,900 - - - Maintenance 2,000 2,000 2,000 2,000 2,000 10,000 Services - - - - - - - Equipment - EXPENDITURES TOTAL 457,220 41,680 - - - - 498,900 IMP Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 457,220 41,680 498,900 - - - - - - Maintenance 2,000 2,000 2,000 2,000 2,000 10,000 Services - - - - - - - Equipment - - - FUNDING TOTAL 457,220 41,680 - - -- - 498,900 IMP CT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - - - - Maintenance 2,000 2,000 2,000 2,000 2,000 10,000 Services - - - - - - - Equipment - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - 2,000 2,000 1 2,000 1 2,000 2,000 1 10,000 Page 129 Roanoke Road Reconstruction and Drainaa South Vision Point: Inviting Neighborhoods 410-74400-00-34 The project will provide stabilization of road subgrade and 6" of asphalt to approximately 4,000 LF of Roanoke Road and replace/improve culverts and ditches. Project improvements will be from Highway 170 south to the Town Limits. Foresee crack sealing during the 2nd year after completion. The cost below reflects construction by private contractor without participation from Tarrant County. ••• Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - - Construction 2,900 - - - 453,000 - 455,900 Maintenance - - - - 2,000 2,000 Services - - - - - - Equipment - - FUNDING TOTAL 2,900 EXPENDITURES TOTAL 2,900 - - 453,000 - - 455,900 ••• Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 2,900 - 2,900 Pending Bond issue - - - 453,000 - - 453,000 Maintenance - - - - 2,000 2,000 Services - - - - - - Equipment - - FUNDING TOTAL 2,900 - - 453,000 -- - 455,900 Page 130 Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - Maintenance - - - - 2,000 2,000 Services - - - - - - Equipment - - - - - Debt Service - - - - - OPERATING IMPACT TOTAL - - - - - 2,000 2,000 Page 130 Sam School Road Reconstruction and Drainage Vision Point: Inviting Neighborhoods 1 410-74400-00-40 The project will provide stabilization of road subgrade and 6" of asphalt to approximately 2,000 LF of Sam School Road and replace/improve culverts and ditches. Anticipate crack sealing 2nd year from completion. The cost below reflects construction by private contractor without Tarrant County participation. • -• Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - - - Construction 216,000 - - - - 216,000 Maintenance - - 1,000 1,000 1,000 3,000 Services - - - - - - - Equipment - FUNDING TOTAL - - EXPENDITURES TOTAL - - 216,000 - - - 216,000 • -• Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 - - Supplies Pending Bond issue - 216,000 - - - 216,000 Maintenance - - 1,000 1,000 1,000 3,000 Services - - - - - - - Equipment - FUNDING TOTAL - - 216,000 - - - 216,000 IMPACT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - - - Maintenance - - 1,000 1,000 1,000 3,000 Services - - - - - - - Equipment - - - - - - Debt Service - - - - - - OPERATING IMPACT TOTAL - - - 1,000 1,000 1,000 3,000 Page 131 Dove Road Reconstruction and Drainage (Vaquero -Terra Bella Vision Point: Inviting Neighborhoods 1 410-73000-00-41 The project will provide stabilization of road subgrade and 6" of asphalt to approximately 6,500 LF of Dove Road and replace/improve culverts and ditches. Anticipate crack sealing 2nd year from completion. The cost below reflects construction by private contractor without Tarrant County participation. This work will also include construction of a pedestrian trail from FM 1938 to the Glenwyck Farms. •-• Funding Description Expense Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Engineering - - Construction 221,995 404,945 - 221,995 - - - 626,940 Maintenance - - - 2,000 2,000 4,000 Services FUNDING TOTAL - 221,995 404,945 - - - 626,940 Equipment - - - EXPENDITURES TOTAL - 221,995 404,945 - - - 626,940 ••• Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 - 221,995 - Pending bond issue - 404,945 Supplies 221,995 - - - 404,945 - Maintenance - - - 2,000 2,000 4,000 Services FUNDING TOTAL - 221,995 404,945 - - - 626,940 IMPACT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - - Maintenance - - - 2,000 2,000 4,000 Services - - - - - - Equipment - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - 2,000 2,000 4,000 Page 132 Trail Connection at Hwy 114 and Solana Vision Point: Inviting Neighborhoods 1 410-74400-00-42 This project will be a cooperative effort between Westlake, Trophy Club, and Southlake consisting of the design and engineering of an intra -city trail system. The engineering/design costs are estimated at $45,000. Construction and landscaping cost estimates have not yet been completed. Funding participation is anticipated to be 1/3 from each party. • Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - 15,000 - 15,000 Maintenance - - Services - - - - - EXPENDITURES TOTAL - 15,000 - - - - 15,000 •-• 11011310 Funding Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 - 15,000 - 15,000 - Maintenance - - Services - - - - - Equipment FUNDING TOTAL - 15,000 - - -- - 15,000 Page 133 Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - Maintenance - - Services - - - - - Equipment - - - - - Debt Service - - - - - OPERATING IMPACT TOTAL - - - - - - - Page 133 Westlake Portion of Hillwood Projects Vision Point: Inviting Neighborhoods 1 410-46190-00-45 The Dove Road and Ottinger Road projects include work that is required to be paid by the Town for misc construction related to issues that were not part of the approved set of plans within the Hillwood developer agreement. Town Council approved an amendment to the developer agreement on August 27, 2012 to appropriate $994,000 of additional funds needed to complete Dove Road and Ottinger Road improvements. Includes the trail from Vaquero to Westlke Academy • MW Expense Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Engineering 89,740 - Capital Projects Fund - Cash - 89,740 Construction - 50,000 - - - - 50,000 Construction (per Council Amendment) - 994,000 - - - - 994,000 Equipment - - - - - - - Debt Service - - - - FUNDING TOTAL 89,740 1,044,000 EXPENDITURES TOTAL 89,740 1,044,000 - - - - 1,133,740 IMPACT Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 89,740 182,417 - - - - 272,157 Capital Projects Fund - Cash - 861,583 - - - - 861,583 - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - FUNDING TOTAL 89,740 1,044,000 - - - - 1,133,740 IMPACT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - - - - - - - Maintenance - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - Page 134 Westlake Academy North Driveway Lighting Vision Point: Inviting Neighborhoods 1 410-73000-00-46 Project Description: The project will provide permanent lighting fixtures along the new Westlake Academy north entry road. 1 - - • Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - - Construction 40,000 - - - - - - 40,000 Maintenance - - - - Services - - - - FUNDING TOTAL - 40,000 - - -- - EXPENDITURES TOTAL - 40,000 - - - - 40,000 - - • Funding Description Est. thru 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 - - - Capital Projects Fund - Cash 40,000 - - 40,000 Maintenance - - - - Services - - - - FUNDING TOTAL - 40,000 - - -- - 40,000 IMPACT ON OPERATING Est. thru Description 09/30/12 Proposed Planned FY 12/13 13/14 14/15 15/16 16/17 Project Total Supplies - Maintenance - - - - Services - - - - - Equipment - - - - - Debt Service - - - - - OPERATING IMPACT TOTAL - - - - - - - Page 135 Hwy. 377 & Westport Parkway Signal Vision Point: Leadership 1 410-73000-00-47 This intersection is currently uncontrolled (does not have a traffic signal). This is a regional project between Westlake, Tarrant County, Fort Worth, and TxDOT that will include the installation of traffic signals that will be operated and maintained by TxDOT. Westlake will be responsible for 1/3 of the construction costs. Staff has also included additional funding to upgrade the poles to powder coating similar to the existing signals at Westlake Parkway. -•all 0 11] 10 Expense Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Engineering - - Construction 50,000 25,000 - - - - - - 75,000 (reimbursment from Tarrant County for Tarrant County and Keller portion) - - - - - - - Services - FUNDING TOTAL 50,000 25,000 - EXPENDITURES TOTAL 50,000 25,000 - - - - 75,000 -•all 0 11] 10 Funding Description Est. thru Proposed Planned 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Project Total Series 2011 CO $2,095,000 50,000 8,500 - 58,500 Contributions - 16,500 - - - - 16,500 (reimbursment from Tarrant County for Tarrant County and Keller portion) - - - - - - - Services - FUNDING TOTAL 50,000 25,000 - - -- - 75,000 Page 136 • •pr Est. thru Description 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - Maintenance - - Services - - - - Equipment - - - - - Debt Service - - - - - OPERATING IMPACT TOTAL - - - - - - - Page 136 Westlake Academy Expansion Vision Point: Leadership 1 410-74400-00-48 This project consists of the construction of a three new buildings: 1) Cafetorium with stage, dressing area, storage and catering kitchen for dining and general purposes at approx. 9,600 sf. 2) Three story Secondary School at apprx. 18,900 sf. Includes 15 classrooms, flex and office space. Designed to allow for future addition in needed. 3) Fieldhouse at approx. 9,600 sf. Will house locker rooms to be used for both athletics and PE, a visiting team locker room, storage for equipment, offices and space to be used for the PE program. __W4 Expense Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Engineering - 150,000 25,000 20,000 25,000 220,000 Construction - 1,000,000 1,700,000 2,500,000 1,085,000 - 6,285,000 FF&E - - - - 900,000 - 900,000 Design Contingency 35,000 150,000 250,000 100,000 55,000 - 590,000 - 50,000 250,000 200,000 40,000 - 540,000 EXPENDITURES TOTAL 35,000 1,350,000 2,225,000 2,820,000 2,105,000 - 48,000 8,535,000 Page 137 Funding Description Est. thru 09/30/12 Proposed Planned Project Total FY 12/13 13/14 14/15 15/16 16/17 Capital Projects Fund - Cash 35,000 - - - - 35,000 Series 2012 CO $8,500,000 (if issued) - 8,500,000 - - - - 8,500,000 8,000 15,000 20,000 43,000 Services - - 5,000 13,000 15,000 33,000 Other Operating Costs - - 20,000 20,000 20,000 60,000 Miscelleaneous FUNDING TOTAL 35,000 1 8,500,000 5,000 15,000 OPERATING IMPACT TOTAL - 8,535,000 Page 137 Description Est. thru 09/30/12 Proposed FY 12/13 Planned Project Total 13/14 14/15 15/16 16/17 Supplies - - - 10,000 10,000 5,000 25,000 Maintenance - 8,000 15,000 20,000 43,000 Services - - 5,000 13,000 15,000 33,000 Other Operating Costs - - 20,000 20,000 20,000 60,000 Miscelleaneous - - - 5,000 5,000 5,000 15,000 OPERATING IMPACT TOTAL - - - 48,000 63,000 65,000 176,000 Page 137 THE TOWN OF ESTLA E CAPITAL IMPROVEMENT PLAN The purpose of a Capital Improvement Plan (CIP) is to more formally structure the process for pricing, prioritizing, and determining the scope of all Town capital projects. The CIP helps both the elected officials and the staff to see the most accurate picture possible of the Town's infrastructure and public building needs over the next five (5) years. The complete CIP document can be found on the Town's website. PERFORMANCE LEADERSHIP TEANWORK DEDICATION INTECRITY NOW— %, N Z 4-11 1k % 1*1.. Nk khIrL.1ing Service_ CAPITAL IMPROVEMENT PLAN A Town capital project should be defined as construction or reconstruction of any public building or infrastructure identified as a community need, whether funding is currently available or not. If funding is not currently available, but the project is determined by the Council to be important, the project is still included in the Council's approved five (5) year CIP and shown as unfunded. If funding is later made available, the project is already on the "radar screen", although it may be scheduled in the out years of the 5 year planning period. The Council approved the Town's formal Five (5) Year CIP on April 23, 2012. By going through the effort of a formally prepared CIP in the prior year, subsequent years' CIP should be more of an annual update to make sure of the following: • The staff has identified all the capital projects the Council sees on the horizon. • The Council can remove the projects that no longer are seen as a priority in terms of not meeting the community's strategic needs (assuming that no funding has been spent on design thus far). • Annual Council review allows project timing to be adjusted in terms of which year in the 5 year time span the project is assigned. • Annual review of the Council approved 5 year CIP allows this review to be performed at the same time as the review of the 5 year financial forecast (this is completed to see the impact of a capital project not only on the capital side, but also on the operations/maintenance side). • With Council's adoption of this 5 year CIP, along with the adopted financial policies, no capital project, regardless of funding source, is put into the CIP until it first comes through the annual update "call for projects" prepared each Spring by the staff and is included in the CIP approved by the Council. Page 139 ALL SUBMITTED CAPITAL PROJECTS BY FUNDING SOURCE Actuals Estimated Proposed - - - - - - - - - P R O J E C T 1 O N - - - - - - - - - PROJECT Proj# PROJECT DESCRIPTION 2000-2011 FY 11/12 FY 12/13 FY 13/14 1 FY 14/15 1 FY 15/16 1 FY 16/17 1 TOTALS $2,095,000 - Series 2011 CO issued 03/29/11 CONTRIBUTIONS/GRANTS $8,500,000 - Series 2012 CO issued 09/14/12 (pending approval) $8,500,000 Future Bond Funding (Pending approval) $1,800,885 Cash/Transfers In/Fund Balance $4,511,738 General Government Funding Summary Total $16,907,624 CP20 FM 1938 Streetscape/Wayfinding 592,877 - 800,000 172,000 253,100 972,000 CP47 Hwy 377 Westport Parkway Signal 88,191 130,000 16,500 - - 16,500 UF36 TOTAL CONTRIBUTIONS/GRANTS $ $ $ 816,500 $ 172,000 $ $ 988,500 $2,095,000 - Series 2011 CO issued 03/29/11 UTILITY FUND PROJECTS $8,500,000 - Series 2012 CO issued 09/14/12 (pending approval) $8,500,000 Future Bond Funding (Pending approval) $1,800,885 Cash/Transfers In/Fund Balance $4,511,738 General Government Funding Summary Total $16,907,624 UF30 TRA Assu m ptio n of N1 Sewer Line 592,877 - 127,338 567,100 253,100 127,338 UF31 N-1 Sewer Line Transfer I & I Study/Repairs 88,191 130,000 34,533 - - 164,533 UF36 Ground Storage Tank 29,355 - 2,000,000 2,000,000 UF37 Stagecoach Hills waterline connection Phase 11 78,085 363,375 - - - 363,375 CP30 SH 114/Hwy 170 Enhancements TOTAL UTILITY FUND PROJECTS $ $ 493,375 $ 2,161,871 $ $ $ $ $ 2,655,246 $2,095,000 - Series 2011 CO issued 03/29/11 GENERAL GOVERNMENTAL PROJECTS $8,500,000 - Series 2012 CO issued 09/14/12 (pending approval) $8,500,000 Future Bond Funding (Pending approval) $1,800,885 Cash/Transfers In/Fund Balance $4,511,738 General Government Funding Summary Total $16,907,624 CP20 FM 1938 Streetscape/Wayfinding 592,877 808,609 1,353,469 567,100 253,100 3,575,155 CP26 Mahotea Boone Reconst/Drainage (COMPLETE) 88,191 - - - - 88,191 CP28 Streets Survey 29,355 20,000 30,645 80,000 CP29 WA Dining Hall Improvements (COMPLETE) 78,085 - - - - 78,085 CP30 SH 114/Hwy 170 Enhancements 7,500 - 345,460 390,940 336,000 1,079,900 CP31 Stagecoach Hills Street Reconstruction & Drainage 7,220 450,000 41,680 - - 498,900 CP32 N. Roanoke Road Reconstruction & Drainage 3,348 192,443 195,790 CP33 Aspen Lane Recon/Drainage (COMPLETE) 214,022 - 214,022 CP34 S. Roanoke Road Reconstruction & Drainage 2,900 453,000 455,900 CP40 Sam School Road Reconstruction & Drainage - - 216,000 - 216,000 CP41 E. Dove Road Reconstruction & Drainage (Vaq -TB) 221,995 404,945 626,940 CP42 Trail Connection at 114/Solana - - 15,000 - 15,000 CP45 Town Portion of Hillwood Project (Bonds) 4,740 85,000 182,417 272,157 CP45 Town Portion of Hillwood Project (Cash) - - 861,583 861,583 CP46 WA North Driveway Lighting - 40,000 40,000 CP47 Hwy 377 Westport Parkway Sign - 50,000 25,000 - - 75,000 CP48 Westlake Academy Expansion 35,000 1,350,000 2,225,000 2,820,000 2,105,000 8,535,000 TOTAL GENERAL GOVERNMENTAL PROJECTS TOTALGRAND • $ 1,028,238 $ 1,641,052 $ 4,467,249 $ 3,803,985 $ 3,862,100$ 2,105,000 $ $ $ 16,907,624 $ 19,562,870 r r $3,803,985rr $2,105,000 $2,095,000 - Series 2011 CO issued 03/29/11 $2,095,000 $8,500,000 - Series 2012 CO issued 09/14/12 (pending approval) $8,500,000 Future Bond Funding (Pending approval) $1,800,885 Cash/Transfers In/Fund Balance $4,511,738 General Government Funding Summary Total $16,907,624 Page 140 UNFUNDED CAPITAL PROJECTS 5 YEAR PROJECTION Excerpt from 04/23/12 Adopted Captial Improvement Plan (pg8) Project Description Estimated FY 11-12 Proposed FY 12-13 Projection TOTALS FY 13-14 FY 14-15 FY 15-16 FY 16-17 Cemetery Improvements $ - $ $ - $ 63,000 $ 31,800 $ 250,000 $ 344,800 Trail - Pearson Ln. (Aspen -Dove) 0.5 miles 273,600 - - 273,600 Trail - Ottinger (WA - Cemetery) 0.25 miles - - 276,100 276,100 Park Improvements 174,400 366,380 105,000 106,000 106,000 857,780 Trail - Westlake Parkway. (N. of Fidelity to 114) 0.5 miles - 270,600 - - - - 270,600 Westlake Academy - New High School 31,291 469,359 4,863,258 5,363,908 Westlake Academy- New Middle School 25,819 387,281 3,855,921 4,269,020 Westlake Academy - New Media Center 9,317 139,753 858,380 1,007,450 Westlake Academy - New Multi -Purpose Building 9,826 147,394 1,470,435 1,627,655 Westlake Academy - New Performance Hall 10,393 155,897 1,311,309 1,477,599 Westlake Academy - Primary School Addition 9,578 143,671 1,230,275 1,383,524 Westlake Administration & Civic Center 21,503 322,550 3,142,140 - - 3,486,193 Fire Station - - - 372,000 4,798,560 5,170,560 Westlake Academy - Cover Existing Walkway - 270,275 270,275 Westlake Academy - West Parking Improvements - 115,500 - 115,500 Dove & Randol Mill Traffic Circle 2,019,600 - 2,019,600 J.T. Ottinger (North of WA) Reconstruction & Drainage - 556,500 - 556,500 Wyck Hill Resurface - 52,950 52,950 Pearson Lane Reconstruction & Drainage TOTALLINFUNEDiK ik" - 370,750 370,750 ivi-mi 09 00 00 wn Page 141 THE TOWN OF ESTLA E FIVE YEAR FORECAST The purpose of a forecast is to get a general picture of what the organization's financial condition over time could be, based upon conservative assumptions. The term "conservative" used in the context of financial forecasting means revenues are forecast at low growth levels or even at a decline (depending on the revenue source). PERFORMANCE LEADERSHIP TEAMWORK DEDICATION INTEGRITY i .40 _ 0 bpi '�� Service Excellevvce FIVE YEAR FORECAST NARRATIVE It is important to keep in mind the purpose of a forecast is to get a general picture of what the organization's financial condition over time could be, based upon conservative assumptions. The term "conservative" used in the context of financial forecasting means revenues are forecast at low growth levels or even at a decline (depending on the revenue source). Expenditures, while not necessarily being forecast as declining, are generally forecast with a 2-3% escalation rate, depending on inflation. Forecasts generally have at least one scenario where all that is assumed on expenditures is the current level of service and perhaps some growth in salary/wage expenses. The Council can, if they wish, ask that certain service level adjustments, whether it is service expansion or reduction, be included as alternate scenarios, particularly if it appears that revenues will not cover expenditures in the out years of the forecast. It is also important to remember, since the purpose of the forecast is to get an idea, based on conservative assumptions, as to the Town's financial condition during the five (5) year planning period, that the forecast is showing that the Town will have available funds for additional debt service as well as building a fund balance for future capital and major maintenance and replacement. This is the reason forecasting is a good tool, as it gives the Council time to strategize as to course we may want to make financially, both in the short and long term. Finally, it is important to remember the criticality that economic conditions play in forecasting, particularly as it relates to sales tax, which can be a volatile revenue source. If economic conditions improve, sales tax receipts are affected (usually positively) as well as building permit revenue. FORECAST ASSUMPTIONS - FY 2012-2013 PROPOSED BUDGET The five year financial forecast is based upon the following assumptions: REVENUES: • General Fund o Sales tax revenue is projected at a 6% decrease (primarily due to the reduction of economic development funds and conservative estimates of presumed one-time revenues as well as audit receipts). o Conservative one-time audit and presumed one time payments have been estimated at $100,000 each. In prior years these two numbers have been anywhere from $100,000 to $1,000,000 combined. Because of the uncertainly of the funds, we have been very conservative with these estimates. The on- going sales tax receipts are forecasted to increase by 3% from FY 2011-2012. o Includes the Property Tax Reduction portion of the Sales tax receipts o No additional one-time revenues related to economic development agreements are anticipated to be received o Property tax revenue is estimated at $1,183,514 based on Certified Tax Roll and M&O adopted tax rate of $.14197 per $100 of valuation. Page 143 FIVE YEAR FORECAST NARRATIVE o No new gas well revenue is projected. o Building permits/inspection/plan review fees are based on 10 new homes o Franchise fees remained flat o Contribution of indirect cost totaling $325,000 from Westlake Academy has been discontinued beginning 10/01/2013 • Utility Fund o Revenues are projected to increase by approximately 2% o Interfund Transfer from the General fund of $2M and capital project for same regarding the ground storage tank EXPENDITURES: • Specific Funds o General Fund - Operating expenditures remained fairly flat while transfers out increased due to the $2M transfer to the Utility Fund ■ Transfer out of $2M (interfund loan to UF) for ground storage tank ■ Transfer out of $550K to General Maintenance and Replacement Fund ■ Transfer supplemental funds to Debt Service for debt payments in excess of sales taxes received in 413 Economic Development Fund o Visitors Association Fund - Expenditures and transfers out increased by 4% o Utility Fund - Expenditures increased by 5% o CIP - Based on adopted CIP and anticipated bond sale • All Funds o Includes all adopted maintenance projects and equipment replacement to maintain current level of service o Salary and wages remain flat o Assume first phase of market adjustments at $100,000 FORECAST ASSUMPTIONS - FY 2013-2014 AND BEYOND PROJECTION REVENUES: o Sales tax revenue is projected to increase 3% annually o Property tax revenue is projected to increase 2% annually o Other revenue is projected to increase by 2% EXPENDITURES: o Includes all adopted maintenance projects and equipment replacement to maintain current level of service o Salary and wages increase by 2% after second phase of market adjustment in FY 2013-14 of $115,000 o Other expenditures increase by 3% (excluding any one-time expenditures) o CIP based on adopted CIP Page 144 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds DESCRIPTION FY 10-11 E FYI 111-120 • • , FY 13-14 I FY 14-15 FY 5-16 1 FY 6-17 FY 17-18 Sales Tax (ongoing 100% minus one time) 4,609,625 3,450,000 3,360,000 3,460,800 3,564,624 3,671,563 3,781,710 3,895,161 Sales Tax (audit/one-time) - 350,000 200,000 200,000 200,000 200,000 200,000 200,000 Sales Tax Allocation to 4B (2,436,973) (950,000) (890,000) (915,200) (941,156) (967,891) (995,427) (1,023,790) Sales Tax Allocation to ED (670,632) (205,000) (180,000) (185,400) (190,962) (196,691) (202,592) (208,669) Sales Tax Subtotal 1,502,019 2,645,000 2,490,000 2,560,200 2,632,506 2,706,981 2,783,691 2,862,701 Property Tax 1,226,689 1,262,053 1,183,514 1,207,184 1,231,328 1,255,955 1,281,074 1,306,695 Property Tax Subtotal 1,226,689 1,262,053 1,183,514 1,207,184 1,231,328 1,255,955 1,281,074 1,306,695 Beverage Tax 19,721 32,750 32,750 33,405 34,073 34,755 35,450 36,159 Franchise Fees 586,836 664,925 664,925 678,224 691,788 705,624 719,736 734,131 Permits and Fees 520,645 476,150 476,150 485,673 495,386 505,294 515,400 525,708 Fines & Forfeitures 605,705 640,000 560,000 571,200 582,624 594,276 606,162 618,285 Interest 10,408 13,470 13,470 13,739 14,014 14,294 14,580 14,872 Misc Income 96,079 63,929 51,277 52,303 53,349 54,416 55,504 56,614 Contributions 175,000 325,000 - - - - - - Other Sources 57,000 - - - - - - - Other Revenues 2,071,394 2,216,224 1,798,572 1,834,543 1,871,234 1,908,659 1,946,832 1,985,768 Transfer In - OF 500 Impact 145,216 37,500 37,500 38,464 39,233 40,018 40,819 41,635 Transfer In - OF (Interfund loan payment on $2M) _ 400,000 400,000 400,000 400,000 400,000 Transfer In - VA 220 Dept 22 262 8,350 9,019 9,290 9,568 9,855 10,151 10,455 Transfer In - A&S 411 4,515 - - - - - - - Transfer In - LS 418 102 - - - - - - - Transfer In - ED 210 153 - - - - - - - Transfer in-CP410 139 - - - - - - - Transfer In - 4B 200 112 - - - - - - - Transfer In - PTR 260 1,357,548 - - - - - - - Transfers In 1,508,045 45,850 46,519 447,754 448,802 449,873 450,969 452,090 Total Revenues & Transfers in 6,308,147 6,169,127 5,518,605 6,049,681 6,183,870 6,321,468 6,462,566 6,607,255 Payroll Salaries (1,832,512) (1,997,629) (1,956,805) (2,097,941) (2,257,200) (2,302,344) (2,348,391) (2,395,359) Payroll Market Increases (inc. taxes, etc) (100,000) (115,000) - - - - Payrolllnsurance/Taxes (565,657) (630,988) (625,139) (631,390) (637,704) (644,081) (650,522) (657,027) Payroll Transfers In 356,026 507,033 529,037 544,908 561,255 578,093 595,436 613,299 Operating Expenditures (1,981,201) (2,236,507) (2,149,877) (2,214,374) (2,280,805) (2,349,229) (2,419,706) (2,492,297) Expenditures (4,023,344) (4,358,091) (4,302,784) (4,513,797) (4,614,454) (4,717,561) (4,823,183) (4,931,384) Transfer Out - ED 210 (35,758) (35,758) (35,758) (35,758) (35,758) (35,758) - - Transfer Out - CP 410 (2,085,659) (35,000) - - (206,618) - - - Transfer Out - FM 252 (1,875) - - - - - - - Transfer Out - VE 257 (68,982) - - - - - - - Transfer Out -GMR600 (500,000) (530,000) (550,000) (550,000) (550,000) (500,000) (300,000) (300,000) Transfer Out- WA (K-5 Westlake reserve slots) - - (300,000) (300,000) (300,000) (300,000) Transfer Out - OF (interfund loan to OF/storage tank) - - (2,000,000) - - - - - Transfer Out- DS (Unapproved Road projects $3M (75K/$1M) - - (106,000) (225,000) (225,000) Transfer Out- DS (Bldg bond pymt $52K/$1M) $8.5M (175,474) (442,848) (438,848) (439,798) (440,648) (441,398) Transfer Out- DS 300 - (307,595) (183,087) (403,629) (373,987) (347,667) (403,293) (397,270) Transfers Out (2,692,274) (908,354) (2,944,319) (1,432,235) (1,905,211) (1,729,223) (1,668,941) (1,663,668) Total Expenditures & Transfers Out NET R&TI • • (6,715,618) �M (5,266,445) (7,247,103) (5,946,032) 103,649 (6,519,664) (6,446,784) (6,492,123) (6,595,052) Beginning Fund Balance 3,731,332 3,323,861 4,226,543 2,498,044 2,601,693 2,265,899 2,140,582 2,111,025 Ending Fund Balance 3,323,861 4,226,543 2,498,044 2,601,693 2,265,899 2,140,582 2,111,025 2,123,228 Restricted/Committed/Assigned 406,464 254,295 248,025 252,986 258,045 263,206 268,470 273,840 Unassigned Ending Balance (projected) 2,917,397 3,972,248 2,250,019 2,348,708 2,007,854 1,877,376 1,842,554 1,849,388 Operating Days 262 308 182 159 134 124 119 117 Hotel Tax 527,261 535,000 540,350 551,157 562,180 573,424 584,892 596,590 Other Revenues 20,643 21,550 21,550 21,981 22,421 22,869 23,326 23,793 Transfers In - GF for Debt Service - - - - - - - - Total Revenues & Transfers In 547,904 556,550 561,900 573,138 584,601 596,293 608,219 620,383 Expenditures (204,288) (224,427) (249,202) (256,678) (264,378) (272,310) (280,479) (288,893) Payroll Transfers to GF (152,079) (255,339) (255,225) (262,882) (270,768) (278,891) (287,258) (295,876) Transfer Out - GF 100 Dept 22 (262) (8,350) (9,019) (9,290) (9,568) (9,855) (10,151) (10,455) Transfer Out- DS 300 (180,935) (182,396) (183,692) (180,000) (180,000) (180,000) (100,000) (75,000) Total Expenditures & Transfers Out NET R&TI • • (537,564) (670,512) (697,138) (708,849) (724,715) (741,056) (677,888) (670,225) Beginning Fund Balance 1,100,941 1,111,281 997,319 862,081 726,369 586,255 441,492 371,822 Ending Fund Balance 1,111,281 997,319 862,081 726,369 586,255 441,492 371,822 321,981 Restricted/Committed/Assigned 180,935 182,396 183,692 180,000 180,000 180,000 100,000 75,000 Unassigned Ending Balance (projected) 930,346 814,922 678,389 546,369 406,255 261,492 271,822 246,981 Operating Days 632 444 355 281 205 129 146 135 Page 145 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds DESCRIPTION FY 10-11 E FYI 111 12D FY 13-14 1 FY 14-15 FY 5-16 1 FY 6-17 FY 17-18 Revenues 13,417 5,575 5,575 5,687 5,800 5,916 6,035 6,155 Transfers In - - - - - - - - Total Revenues & Transfers in 13,417 5,575 5,575 5,687 5,800 5,916 6,035 6,155 Expenditures (5,604) (5,900) (5,400) (5,562) (5,729) (5,901) (6,078) (6,260) Transfers Out - - - - - - - - Total Expenditures & Transfers Out NET R&TI ® (5,900) (5,400) (5,562) (5,729) (5,901) (6,078) (6,260) Beginning Fund Balance 141,149 148,963 148,638 148,813 148,937 149,009 149,024 148,981 Ending Fund Balance 148,963 148,638 148,813 148,937 149,009 149,024 148,981 148,876 Restricted/Committed/Assigned 148,963 148,638 148,813 148,937 149,009 149,024 148,981 148,876 Unassigned Ending Balance (projected) - ® MENIE : - - - - - ECONOMIC DEVELOPMENT 873,487 850,000 877,500 915,200 941,156 967,891 995,427 1,023,790 Sales tax (one-time) 345,000 100,000 12,500 25,000 25,000 25,000 25,000 25,000 General Sales Tax 670,785 205,000 180,000 185,400 190,962 196,691 202,592 208,669 Transfers In 35,758 35,758 35,758 35,758 35,758 35,758 - - Total Revenues & Transfers In 706,543 240,758 215,758 221,158 226,720 232,449 202,592 208,669 . Expendures (706,391) (240,758) (215,758) (221,158) (226,720) (232,449) (202,592) (208,669) Transfers Out (153) - - - - - - (1,049,290) Total Expenditures & Transfers Out (706,543 (240,759 (215,758) (221,158) (226,720) (232,449) (202,592) (208,669 Beginning Fund Balance - - - - - - - - Ending Fund Balance - - - - - - - - Restricted/Committed/Assigned - - - - - - - - Unassigned Ending Balance (projected) - - - �� (782,849) - - (642,486) Sales tax (on-going) 873,487 850,000 877,500 915,200 941,156 967,891 995,427 1,023,790 Sales tax (one-time) 345,000 100,000 12,500 25,000 25,000 25,000 25,000 25,000 Interest 396 500 500 500 500 500 500 500 Transfers In - - - - - - - - Total Revenues & Transfers In 1,218,883 950,500 890,500 940,700 966,656 993,391 1,020,927 1,049,290 Expendures - - - - - - - - Transfer Out (1,248,614) (980,230) (920,230) (940,700) (966,656) (993,391) (1,020,927) (1,049,290) Total Expenditures & Transfers Out (1,248,614) (980,230) (920,230) (940,700) (966,656) (993,391) (1,020,927) (1,049,290) NET R&TI Over(Under) E&TO Beginning Fund Balance 297,308 267,577 237,847 208,117 208,117 208,117 208,117 208,117 Ending Fund Balance 267,577 237,847 208,117 208,117 208,117 208,117 208,117 208,117 Restricted/Committed/Assigned 267,577 237,847 208,117 208,117 208,117 208,117 208,117 208,117 Assigned Ending Balance (projected) ® �� (782,849) (686,819) (654,159) (642,486) (645,448) (608,760) Property Tax 30,558 172,098 123,969 153,765 153,791 154,704 154,503 154,475 Interest 28 - - - - - - - Misc Income - - - 50 50 50 50 50 Transfer in - GF 100 - 307,595 182,986 403,629 373,987 347,667 403,293 397,270 Transfer in - GF for Academy 175,575 442,848 438,848 439,798 440,648 441,398 Transfer In - VA 220 180,935 182,396 183,692 180,000 180,000 180,000 100,000 75,000 Transfer In - 4B 200 1,248,502 980,230 920,230 940,700 966,656 993,391 1,020,927 1,049,290 Transfer In - PTR 260 76,102 - - - - - - - Total Revenues & Transfers In 1,536,125 1,642,320 1,586,452 2,120,992 2,113,332 2,115,609 2,119,421 2,117,483 Bank Services Charges (1,130) (1,130) (2,925) (2,925) (2,925) (2,925) (2,925) (2,925) Bond Principal (555,000) (668,000) (655,000) (863,000) (892,000) (905,000) (905,000) (939,000) Bond Interest (972,490) (950,898) (782,849) (686,819) (654,159) (642,486) (645,448) (608,760) Expenditures -2014 CO -$2.2M ($57K/$1M) - - - (125,400) (125,400) (125,400) (125,400) (125,400) Expenditure -2012 CO- Academy facilities - - (175,474) (442,848) (438,848) (439,798) (440,648) (441,398) Total Expenditures & Transfers Out NET R&TI Over(Under) E&TO (1,528,620) (1,620,028) (1,616,248) (2,120,992) (2,113,332) (2,115,609) (2,119,421) (2,117,483) Beginning Fund Balance - 7,504 29,796 0 0 0 0 0 Ending Fund Balance 7,504 29,796 0 0 0 0 0 0 Restricted/Committed/Assigned - - - - - - - - Assigned Ending Balance (projected) 7,504 29,796 0 0 0 0 0 0 Page 146 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds DESCRIPTION FY 10-11 E FYI11-12D ® FY 13-14 FY 14-15 FY 5-16 FY 6-17 FY 17-18 Water/Sewer/Waste Revenues 2,939,180 2,595,766 2,646,850 2,699,787 2,753,783 2,808,858 2,865,036 2,922,336 Water/Sewer Tap Fees 42,429 23,125 23,125 23,588 24,059 24,540 25,031 25,532 Fort Worth Impact Fees 145,216 37,710 37,710 38,464 39,233 40,018 40,819 41,635 Misc Income 146,716 89,434 89,434 91,223 93,047 94,908 96,806 98,742 Interest 9,699 10,000 10,000 10,200 10,404 10,612 10,824 11,041 Contributions - - - - - - - - Transfers In - GF (Interfund Loan) - - 2,000,000 - - - - - Total Revenues & Transfers In 3,283,239 2,756,035 4,807,119 2,863,261 2,920,527 2,978,937 3,038,516 3,099,286 Expenditures (988,194) (738,340) (807,718) (831,949) (856,908) (882,615) (909,093) (936,366) Water Purchases (1,015,869) (1,110,600) (1,110,600) (1,143,918) (1,178,236) (1,213,583) (1,249,990) (1,287,490) Debt Service(Hillwood) (97,943) (73,000) (73,000) (75,190) (77,446) (79,769) (82,162) (84,627) Debt Service (Keller OH Storage) (37,960) (134,668) (118,212) (119,462) (118,949) (119,879) (120,538) (120,936) IFA Debt Pymt to 4B - (29,731) (29,731) (29,731) (29,731) (29,731) (29,731) Bad Debt Expense (49,007) - - - - - - - PayrollTransfersto GF (203,592) (251,694) (273,812) (282,026) (290,487) (299,202) (308,178) (317,423) Transfer Out - GF 100 Payroll - - - - - - - - Transfer Out - UMR 510 - (50,000) (50,000) (200,000) (200,000) (200,000) (200,000) (200,000) Transfer Out - GF 100 Impact Fees (145,216) (37,500) (37,500) (38,464) (39,233) (40,018) (40,819) (41,635) Transfer Out - GF (Interfund loan) - (400,000) (400,000) (400,000) (400,000) (400,000) Capital Projects (213,364) (493,375) (2,161,871) - - - - 131 Total Expenditures & Transfers Out (2,751,145) (2,889,177) (4,662,444) (3,120,741) (3,190,990) (3,264,796) (3,340,510) (3,418,208) Beginning Fund Balance 2,571,347 3,103,441 2,970,299 3,114,974 2,857,495 2,587,032 2,301,173 1,999,179 Ending Fund Balance 3,103,441 2,970,299 3,114,974 2,857,495 2,587,032 2,301,173 1,999,179 1,680,257 Restricted/Committed/Assigned 143,780 149,050 153,522 156,592 159,724 162,919 166,177 169,501 Unassigned Ending Balance (projected) 2,959,661 2,821,249 2,961,452 2,700,903 2,427,308 2,138,254 1,833,001 1,510,756 Total Operating Expenditures 2,392,565 2,308,302 2,413,073 2,482,276 2,551,756 2,624,778 2,699,692 2,776,573 Operating Days 452 446 448 397 347 297 248 199 Revenues 112 200 125 126 128 129 130 131 Transfers In - OF 500 - 50,000 50,000 200,000 200,000 200,000 200,000 200,000 Total Revenues & Transfers In 112 50,200 50,125 200,126 200,128 200,129 200,130 200,131 Expenditures - - (52,450) (188,000) (185,000) (165,000) (175,000) (175,000) Transfers Out - - - - - - - 301,839 Total Expenditures & Transfers Out (41,037) (368,431) (52,450) (188,000) (185,000) (165,000) (175,000) (175,000) • - : • Beginning Fund Balance ® 42,528 ��12,126 42,640 92,840 90,515 15,128 102,641 35,129 117,768 25,130 152,897 25,131 178,027 Ending Fund Balance 42,640 92,840 90,515 102,641 117,768 152,897 178,027 203,159 Restricted/Committed/Assigned 42,640 92,840 90,515 102,641 117,768 152,897 178,027 203,159 Assigned Ending Balance (projected) - - 1,078,259 - - - 1,027,036 - Revenues 271 2,625 1,750 1,768 1,785 1,803 1,821 1,839 Transfers In - PTR 260 41,274 - - - - - - - Transfers In - GF 100 500,000 530,000 550,000 550,000 550,000 500,000 300,000 300,000 Transfers in - VE 257 129,374 - - - - - - - Total Revenues & Transfers In 670,919 532,625 551,750 551,768 551,785 501,803 301,821 301,839 Expenditures (41,037) (368,431) (329,220) (131,900) (121,000) (149,500) (1,556,000) (200,000) Transfers Out - - - - - - - Total Expenditures & Transfers Out NET R&TI • •MENTIM, (41,037) (368,431) (329,220) (131,900) 419,868 (121,000) 430,785 (149,500) 352,303 (1,556,000) (200,004 101,839 Beginning Fund Balance 61,654 691,535 855,729 1,078,259 1,498,127 1,928,912 (1,254,179) 2,281,215 1,027,036 Ending Fund Balance 691,535 855,729 1,078,259 1,498,127 1,928,912 2,281,215 1,027,036 1,128,875 Restricted/Committed/Assigned 691,535 855,729 1,078,259 1,498,127 1,928,912 2,281,215 1,027,036 1,128,875 Unassigned Ending Balance (projected) - - - - - - - - Page 147 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds DESCRIPTION FY 10-11 E FYI 111 12D FY 13-14 1 FY 14-15 FY 15-16 1 FY 6-17 FY 17-18 Revenues 36 45 45 46 48 49 51 52 Transfers In - - - - - - - - Total Revenues & Transfers In 36 45 45 46 48 49 51 52 Expenditures - - - - - - - - Transfers Out (102) - - - - - - - Expenditures & Transfers Out 2,891 1,800 - - - - - - NET ® 8,000 - - - - - - Beginning Fund Balance 13,598 13,531 13,576 13,621 13,668 13,715 13,765 13,815 Ending Fund Balance 13,531 13,576 13,621 13,668 13,715 13,765 13,815 13,867 Restricted/Committed/Assigned 13,531 13,576 13,621 13,668 13,715 13,765 13,815 13,867 Unassigned Ending Balance (projected) - - Iff - - 2,372,000 206,618 3,000,000 - - Total Revenues &Transfers in 21,017,124 13,359,535 23,515,329 15,898,557 13,960,084 16,946,044 13,960,276 FM1938 Streetscape/Wayfinding - - 800,000 172,000 - - - - Hwy 377 Westport Parkway Signal - - 16,500 - - - - - Contributions - TSH Proceeds - 400,000 - 13,287,408 12,621,667 15,923,755 14,634,393 Interest Income 24,164 11,000 11,000 - - - - - Interest Income - Bond Proceeds 2,891 1,800 - - - - - - Misc Revenue - 8,000 - - - - - - Transfer in from GF 2,085,659 35,000 - - 206,618 - - - Transfer in from PTR 1,205,000 - - - - - - - Other Sources - Bond Proceeds 2,095,000 - 8,500,000 2,200,000 - 3,000,000 - - Total Revenues & Transfers In 5,412,714 455,800 9,327,500 2,372,000 206,618 3,000,000 - - Westlake Portion of Hillwood Projects (4,740) (85,000) (1,044,000) - - - - - TSH Donation Expense to WA Foundation - (400,000) - - - - - - Bond Issuance Costs (36,446) - - - - - - - Transfer Out to GF (139) - - - - - - - Transfer Out to PTR (8,761) - - - - - - - Mahotea Boone Reconst/Drainage (88,191) - - - - - - - Dove/Ottinger Recon/Drainage - - - - - - - - Streets Survey (29,355) (20,000) (30,645) - - - - - SH 114/Hwy 170 Enhancements (7,500) - (345,460) (390,940) (336,000) - - - Stagecoach Hills Street Reconstruction & Drainage (7,220) (450,000) (41,680) - - - - N. Roanoke Road Reconstruction & Drainage (3,348) (192,443) - - - - - - Aspen Lane Recon/Drainage (214,022) - - - - - - S. Roanoke Road Reconstruction & Drainage (2,900) - - - (453,000) - - - Sam School Road Reconstruction & Drainage - - - (216,000) - - - E. Dove Road Reconstruction & Drainage (Vaq - TB) - - (221,995) (404,945) - - - - FM 1938 Streetscape/Wayfinding (517,956) (808,609) (1,353,469) (567,100) (253,100) - - - WA Dining Hall Improvements (78,085) - - - - - - - Trail Connection at 114/Solana - - (15,000) - - - - - WA North Driveway Lighting - - (40,000) - - - - - Hwy 377 Westport Parkway Signal - (50,000) (25,000) - - - - - WestlakeAcademyExpansion - (35,000) (1,350,000) (2,225,000) (2,820,000) (2,105,000) - - Unapproved Road Projects (2,576,100) (423,700) Total Expenditures & Transfers Out (998,662) (2,041,052) (4,467,249) (3,803,985) (3,862,100) (4,681,100) (423,700) - Beginning Fund Balance 220,279 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 Ending Fund Balance 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 717,064 Restricted/Committed/Assigned 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 717,064 Unassigned Ending Balance (projected) - - - - - - - - Total Revenues &Transfers in 21,017,124 13,359,535 23,515,329 15,898,557 13,960,084 16,946,044 13,960,276 14,210,545 Total Expenditures & Transfers Out NET R&TI • •� (22,984,482) (20,203,949) (26,089,720) (23,240,692) (24,150,262) (25,216,974) i (22,628,268) (21,252,637) Beginning Fund Balance 9,766,781 13,344,664 12,621,667 15,923,755 (10,190,179) 14,634,393 10,678,571 8,829,028 (7,042,092) 6,775,065 Ending Fund Balance 13,287,408 12,621,667 15,923,755 14,634,393 10,678,571 8,829,028 6,775,065 6,545,423 Restricted/Committed/Assigned 6,529,756 4,983,451 10,033,895 9,038,413 5,837,154 4,551,906 2,827,687 2,938,298 Unassigned Ending Balance (projected) F 6,757,652 7,638,216 5,889,8601 5,595,9801 4,841,416 1 4,277,1221 3,947,378 1 3,607,125 Page 148 This page is intentionally blank Page 149 THE To N of :STLAKE COMMUNITY PROFILE This section presents an informative overview of the Town of Westlake. A location and history of the Town is provided along with a list of Westlake Council Members. Additional information including demographics, recent trends in development and survey results is also provided in this section. PERFORMANCE LEADERSHIP TEAMWORK DEDICATION 1*4 0 VOW iFEcr RITY � j119 c ll ' Service Ex COMMUNITY PROFILE General Information The Town of Westlake is a one -of -a -kind community, an oasis with rolling hills, grazing longhorns, and soaring red-tailed hawks, located in the heart of the Fort Worth -Dallas metropolitan area. Inviting neighborhoods and architecturally vibrant corporate campuses find harmony among our meandering roads and trails, lined with native oaks and stone walls. We are leaders in education, known for our innovative partnerships between the Town -operated Charter school and our corporate neighbors. We are environmental stewards exemplifying the highest standards. Hospitality finds its home in Westlake, as a community, we are fully involved and invested in our rich heritage, vibrant present and exciting, sustainable future. Location Westlake is conveniently located between DFW Airport and Alliance Airport, on the south side of State Highway 114, providing quick, easy access to all areas of the Dallas -Ft. Worth Metroplex. The unique location of Westlake is ideal for many of its major corporate campuses and residential communities. A common ideal shared by our corporate and individual residents is their support of the existing character and charm of the community as well as a commitment to excellence in new development. Page 151 Denton - kap �k ro lu Punuer ] kFoi nt 11 do Herman [';�4 Sh'I L Im zin,n a7 _e Sn -- ,•. ❑ruP O Ne•r Argyle Fairview JUs11n NWrtI .rral C¢Y Hi nl ^❑ --S ,I o 7h2 C.1.7 \ ' nye E1 9arton rine Couple hurora -I e Rhame - Leunsville IY - lower _ Mound 77 N dale 4 Veden.;.,. Haslet Southlake Cappell a a.aa ee.•._p •'.,•.. o 287 '� 37T Keller Grape—e F­­ ^RowlettRackwaU --'Md bile Cary veoean Ra .. KLY9r xh Garlantl ,Azle 81 Cc4«yville� cDFW rn s rs7S... M...ne 8T [slacklany r_L rr. NoOh BI M d .1L Raehland HIrs ala Eu'- ]n.u�s rl• ca . Lake?a'g ..:akeS,de r -'ti S 9 — HO—City HI 1F•� rYlrlr] rst k- r ort la d + r. : s.�;Y HllbharA e„ ICLmda a.,. k V rth J R .. a 1 p w . F,n. P. 6T H,:ls,:. ��r,• P Dallas n �a 80 au MJ gwl6 ser --.err c.,_ FortWorth 80 —F — Grand Forney JII a Arlington Praire ..+�r L lJi; za7 ❑ eo r ` rtn ngian TT 1T5 = Ra rrn, a ` awaan lama Renl nrk 183 Ld9 In 'i Ft - 409 .�' < L. e I I La - r 9 } "EayC'r'e J _ K. nrnal« �';• vaam r SunleK _ J.'. -••:+ ❑nn CanY'I:e 1 law« F•ilrnhin^ slat uVh11 ce^r0U CravAey B _ Gec,ar HIII WrsA:' flel Lancaster .;...bi �.� 17S ^arrack Burlasvni q4�� cr _ f 67 ie,n�s TT Warsa., — 297 )•:II3 Falr'a.'+ �. n nn Rel Gak Location Westlake is conveniently located between DFW Airport and Alliance Airport, on the south side of State Highway 114, providing quick, easy access to all areas of the Dallas -Ft. Worth Metroplex. The unique location of Westlake is ideal for many of its major corporate campuses and residential communities. A common ideal shared by our corporate and individual residents is their support of the existing character and charm of the community as well as a commitment to excellence in new development. Page 151 History of Westlake COMMUNITY PROFILE In the beginning... The Town of Westlake has a short but fascinating history. The geographic region, known as the place where the cross timbers met the prairie, holds tales of settlers from the Peters Colony, Indian treaties signed by Sam Houston, tremendous archeological treasures, and some of the oldest settlements in north Texas. The region has always been known for its natural bounty, its trade value, and its wonderful people. The Town of Westlake and northeast Tarrant County has maintained that distinction over the years, becoming one of the most desirable and sought after places to live in America. Early Settlers... 1847 The Town of Westlake was settled by Charles and Matilda Medlin when they arrived in the area with about 20 other families in 1847. They initially settled along Denton Creek but moved south to higher ground after weathering ferocious floods from the creek. Until 1997, the three-story Medlin barn was a local historic landmark. When it had to be removed, after what was believed to be 130 years, for safety concern. Legends include those of Sam Bass and Bonnie and Clyde hiding in the barn. The 1870's... Dove Road was the cardinal road between Grapevine and Roanoke. The road took its name from the Dove Community which was located between the two towns. Dove Road originated in the 1870's and got its name from the Lonesome Dove Baptist Church located in the community. The 1930's... In the late 1930s, Ted Dealey, turned his attention to a lush and untouched piece of the Cross Timbers region. It was there he built a stunning country place designed by prominent architect, Charles Dilbeck. This place was known as the 220 Ranch. The Dealey Home, off Dove Road near Ottinger Road, is now known as Paigebrooke Farm. The 1940's - 1950's It was late in the 1940's after World War II, at about the same time that Dealey built his home, that Circle T Ranch has its beginnings with J. Glenn Turner. He used the place to raise and train Tennessee Walking horses, and as a retreat and showplace. Circle T Ranch was expanded throughout the 1950's to approximately 2,300 acres. In 1955, there were rumors of an attempt to annex Circle T Ranch; as a defensive move, J Glenn Turner organized the neighboring ranches and homeowners in the surrounding community into forming their own city. On the 27th day of December in 1956, citizens attended a meeting to declare the Town of Westlake into existence thru incorporation and to swear in the first Board of Aldermen. The area included what is known today as Westlake, plus the area north, to the northern shore of Denton Creek. This northern land was annexed from Westlake and formed the town of Trophy Club in the 1970's. Page 152 COMMUNITY PROFILE The 1960's... In 1969, the Circle T Ranch was purchased by oil millionaire Nelson Bunker Hunt. The ranch became known for its glamorous parties attended by celebrities from all over the world. The 1970s ... In the early 1970's, the state decided to name one of Westlake's well-known streets after the person who was living in the first house on the road. That person was J.T. Ottinger. Also in the early 1970s, Houston developers and professional golfer Ben Hogan approached Westlake about building a golf course, country club, and a housing development. In 1973, Westlake annexed what is now known as the town of Trophy Club, clearing the way for the upscale housing development and golf course. The 1980's ... In the mid-1980s, IBM built Solana, the multi use office complex. IBM maintained a large presence until the mid 1990's. At that time, several of the office buildings became available for use by other corporations. Eventually, IBM sold its partnership interest. The 1990's ... In 1989, Nelson Bunker Hunt declared bankruptcy and the Circle T Ranch was purchased by Ross Perot Jr. in 1993. In 1997, to the dismay of residents, there was an attempt to dissolve the Town of Westlake. Many court battles, including appeals to the Texas Supreme Court, were waged as emotions rose. Ultimately Town leadership prevailed The 2000's ... • 2000 - The Westlake Historical Preservation Society was established for the purpose of recording and preserving the rich history of the Town of Westlake. • 2002 - VIP's and residents of Westlake gather at the site of the new Westlake Academy to help raise the first wall of the school. Westlake approved the purchase of the first Fire truck and ambulance. • Westlake Historical Preservation Society holds the first Annual Decoration Day on Memorial Day. Westlake Academy opens. The hope is that the new school will spur growth and unite the Westlake community. • 2006 - Celebrations began to commemorate the 50th anniversary of the incorporation of Westlake in December 1956. • 2007 - The Town of Westlake dedicated and sealed a time capsule containing a variety of special items. This time capsule will remain sealed until September 8, 2057, during the town's 100th anniversary celebration. • 2008 - The development of Terra Bella, a 54.7 acre high- end single family subdivision began off Dove Road. • 2009 - Deloitte University announces Westlake as the site *: for its $300 million learning and leadership center. 2009 - Westlake Academy Arts & Sciences Center was completed. • 2010 - Westlake's first gas well was successfully drilled in a Solana. • 2011- New retail growth began along the Town's western boundary with construction of a new Quick Trip convenience store and a Centennial Fine Wine & Liquor store. Page 153 COMMUNITY PROFILE Westlake Local Government The Town was incorporated in 1956 as a Type A General Law Town under the rules of the State of Texas. The Town Council is comprised of a Mayor and five Council Members who are elected at large for a two year staggered term each May. The Council is entirely responsible for creating Town policy. The Council directs the Town Manager to administer the daily operations of the Town and ensure that Town policies are enforced. "1 Laura Carol Michael Clifton David Rick Wheat Langdon Barrett Cox Levitan Rennhack Mayor Mayor Pro -Tem -------------------------------------Council Members ------------------------------------- Westlake Operations The Town of Westlake has approved an operating budget of $24,909,946 for fiscal year 2012/20123 and includes approximately 105 full-time equivalent employees (municipal and academic). The Town of Westlake provides a full level of public services to its citizens as well as operates the only municipally owned Charter School in the state. The Town of Westlake utilizes a private firm for solid waste collection and disposal, as well as contracts with Keller, a neighboring community, for police services. Strategic Plan Overview During the 2011 strategic planning process, the Town Council and staff Leadership Team developed an overview of the strategic issues facing Westlake and developed action plans to monitor the success and completion of the projects. The vision and mission statements were updated to reflect the unique characteristics found within our community and the values which are important to our residents. The information is contained within five vision points which describe the areas that the Council and staff have determined are vital to maintaining our Town and providing services to enhance the lives of our residents and community. The Town's strategic plan was developed according to a Strategic Issues format, which identified events through a SWOT (strengths, weaknesses, opportunities, and threats) analysis that would affect our community over the next 24 months. This type of issues -focused version of a traditional strategic plan is designed to allow the organization to scan our environment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. Page 154 COMMUNITY PROFILE Westlake Community Events Westlake is a family -friendly environment where events are held to help get our residents out and participating in activities with their children and neighbors. Arbor Day... The Westlake Arbor Day Celebration is held each October. This annual celebration is an afternoon of activities, live entertainment, best cookie competitions, auctions, and a variety of great food. Kids' activities have included pony rides, face painting, games, crafts, and an obstacle course. In addition, there are educational sessions on tree care advice, and complimentary trees. Admission is free. Masterwork Concert Series... Decoration Day... The Westlake Preservation Historical Society sponsors its annual "Decoration Day" event each Memorial Day in Westlake at the Odd Fellow Cemetery. This community event is a public commemoration of veterans, both past and present, who have served our country and defended our freedom and liberties. Activities include live music, treasure hunts for the kids, and a homemade ice-cream competition. Past events have included live reenactments of people and events pertaining to Westlake's history. The event ends at sunset. The Masterworks Music Series is a variety of free music programs sponsored by the Town of Westlake, Maguire Partners, and ARTSNET. These free concerts are for arts lovers of all ages and feature instrumental a vocal music ranging from Country & Western to Blues & Jazz with the entertainment of local, regional and national artists. The concert season begins in April and features an exciting performance each Thursday through the month of May Performances are held at the Solana Village Center. Page 155 0 COMMUNITY PROFILE Westlake Academy The Westlake Academy is an Open Enrollment Charter School that opened Wil• September 1, 2003. Westlake Academy distinguishes itself among neighboring educational offerings with a particular focus on producing students who are globally minded. The programs of the International Baccalaureate Organization (Primary Years Program, Middle Years Program, Diploma Program) have been selected as the f;�51 4 educational model utilized at the Academy. Educational technology will be pervasive and will infuse the classroom curriculum. An environment rich with heritage, the Westlake Academy mission is to provide educational opportunities to each child in keeping with his or her individual needs. The primary geographic service area for Westlake Academy is the town limits of Westlake; students from other locations may be considered if seats are available. Westlake Academy is a K-12 public charter school and was recently ranked: #36 in the United States in the Washington Post Challenge Index #18 in the United States by Newsweek #5 in the State of Texas #6 against all Charter Schools in the United States • #37 out of approximately 22,000 public high schools in the United States by U.S Report News & World Westlake Academy is a premier learning establishment and prides itself on providing a learning environment where students have the resources and facilities to excel. Westlake Academy Campus Page 156 COMMUNITY PROFILE Westlake Facts, Figures, & Statistics The Town of Westlake has experienced exponential growth in the last decade; the national census reported 207 residents in 2000 and 992 residents in 2010. The Town is approximately 20% built out with the majority of development continuing to be corporate campuses. There has been an increase over the last decade in high-end residential development located around the Vaquero Golf Course and in Glenwyck Farms. The Town's focus on high-quality development has led to more than 1.4 million square feet of commercial space, valued at over $300 million, being added since 2005. The Town has seen a slight decrease in building permits however, the construction size and value have increased significantly over the last 10 years. In 2012, the average size of new home construction was 13,500 square feet with an average estimated construction cost of $1.57 million. Vaquero Estates Vaquero Estates Country Club F.M. 1938, Precinct Line Road construction began in FY 09/10 and will create a major north, south corridor. In addition, Deloitte University completed construction of their $160 million dollar, 160 acre, international training facility. The facility features over 800 rooms, office space, conference centers, amenity centers, as well as many parks, trails, and water features. This development represents another step towards Westlake's goal to become an education -centered community. Deloitte University Campus Page 157 COMMUNITY PROFILE Westlake Population and Employers Population The Town of Westlake has experienced exponential growth in the last decade; the national census reported 07 residents in 2000 and 992 residents in 2011. Population 2002 2003 2004 2005 2006 Average Age Percent 18 - 34 years 3.5% 35 - 54 years 52.2% 55 - 74 years:L!3.9% 9.2% 75+ years Source: 2011 Westlake Citizen Survey Household Income Percent Under $50K 2.7% $50K - $149K 6.3% $150K - $500K 42.7% $500K plus 32.9% Source: 2011 Westlake Citizen Survey 703 2007 2008 2009 2010 2011 Westlake Employers 1i The DFW Metro area is home to more Fortune 500 companies than any other area in the United States. Several major employers are located within the Town of Westlake as listed the pie chart below. "he Solana Office :�omplex was the first Df many corporate ieadquarters built by BM in the 1980's. ;ince then Westlake ias collected Ddditional corporate esidents like, Fidelity nvestments, Core _ogic, Chrysler =financial, Levi ;trauss, Deloitte and nany more. Page 158 Top 3 Employers in Westlake Sales Tax Rate Sales & Use Taxes Many people don't know that most of their sales and use tax is remitted to the State of Texas; in fact, for every dollar of taxable sales, the state receives six and one quarter cents (or 6.25%) In the State of Texas local municipalities have the option to adopt up to an additional two cents (or 2%) for local use for a total maximum combined rate of 8.25%. This local tax must be in accordance with state law and be utilized for specific purposes as identified by the state's local government code. Tax Distribution COMMUNITY PROFILE Property Tax Reduction Tax - This tax represents a 1/2 cent sales tax levy used to reduce the property tax burden on local residents and businesses by providing Westlake with an additional unrestricted revenue source. 4B Economic Development Fund - This fund utilizes the revenues generated from a '/2 cent sales tax to fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the debt incurred for the construction of Westlake Academy. General Fund Allocation - The Town levies 1 % in sales tax that is utilized to offset expenditures in the General Fund. Hotel Occupancy Tax 3 0 .c 2009 2010 2011 2012 2013 estimated proposed Page 159 Hotel Occupancy Tax In addition to sales and use tax collections, the Town receives a 7% hotel occupancy tax from the Marriott Solana and any future hotels in Westlake. This revenue is recognized in the Visitors Association Fund and is used to help fund a shuttle program for hotel guests as well as other marketing and promotional activities. General Sales Tax f c 0 i,-rll 2009 2010 2011 2012 2013 estimated proposed Property Tax Reduction Tax - This tax represents a 1/2 cent sales tax levy used to reduce the property tax burden on local residents and businesses by providing Westlake with an additional unrestricted revenue source. 4B Economic Development Fund - This fund utilizes the revenues generated from a '/2 cent sales tax to fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the debt incurred for the construction of Westlake Academy. General Fund Allocation - The Town levies 1 % in sales tax that is utilized to offset expenditures in the General Fund. Hotel Occupancy Tax 3 0 .c 2009 2010 2011 2012 2013 estimated proposed Page 159 Hotel Occupancy Tax In addition to sales and use tax collections, the Town receives a 7% hotel occupancy tax from the Marriott Solana and any future hotels in Westlake. This revenue is recognized in the Visitors Association Fund and is used to help fund a shuttle program for hotel guests as well as other marketing and promotional activities. COMMUNITY PROFILE Property Tax The Town of Westlake instituted a property tax in 2010. The current adopted rate for FY 2012-2013 is $.15684 Maintenance and operations (M&O) is $0.14197 ➢ Debt service or interest & sinking (I&S) is $0.01487 Jurisdictions The Town of Westlake contracts with the Tarrant County Tax Assessor Collector's Office to collect the Town's portion of local property tax. There are multiple taxing jurisdictions within Westlake's boundaries; whether or not a business or residence is required to pay tax to a particular jurisdiction is determined by where they are located within Westlake and the boundaries of the respective taxing jurisdictions. Currently, the following taxing jurisdictions collect property taxes in Westlake: ➢ Independent School Districts; Carroll, Keller and Northwest Tarrant County; College and Hospital ➢ Denton County and Trophy Club MUD 1 Westlake residents can determine which taxing jurisdictions apply to their property as well as obtain current property tax rate information by conducting a property search on the appropriate appraisal district website: Denton Central Appraisal District or Tarrant Appraisal District. Homestead Exemptions The Westlake Town Council approved a homestead exemption of 20%, which is the maximum amount allowed by the State of Texas. Tax Freeze The Town Council also approved a tax freeze for all residential accounts identified as over 65 by the tax appraisal district. To learn more information about the tax freeze or find out if you qualify, please visit the following websites: Denton Central Appraisal District or Tarrant Appraisal District. 2013 Ad Valorem Tax Comparison per $100 ■ Trophy Club 0.5 ■ Southalke - Y Flower Mound 0.4 E Keller to Roanoke U Colleyville 0.3 W Grapevine 0,2 0.156840 M Haslet W Westlake 0.1 Page 160 This page is intentionally blank Page 161 PERFORMANCE LEADERSHIP THE TowN of :STLAKE APPENDIX SECTION alwol"- -- TEAMWORK T{EAFAV ORI DEDICATION Service Eye �j GLOSSARY OF TERMS Account: A separate Activity: A service Balance Sheet: The basic financial reporting unit for performed by a financial statement, which budgeting, management, department or division. discloses the assets, or accounting purposes. liability, and equities of an All budgetary transactions, Allocation: Apart of a entity at a specific date in whether revenue or lump -sum amount, which is conformity with General expenditure, are recorded designated for Accepted Accounting in accounts. expenditure by specific Principles. organization units and/or Adopted Budget: The for special purposes, Balanced Budget: A budget as modified and activities, or objects. budget adopted by the finally approved by the Amortization: Payment of Town Council and Town Council. The principal plus interest over authorized by resolution adopted budget is a fixed period of time. where the proposed authorized by resolution expenditures are equal to that sets the legal Appropriation: An or less than the proposed spending limits for the fiscal authorization made by the revenues plus fund year. legislative body of a balances. government, which Accounts Payable: A permits officials to incur Basis of Accounting: A liability account reflecting obligations against and to term used referring to amount of open accounts make expenditures of when revenue, owed to private persons or governmental resources. expenditures, expenses, organizations for goods Specific appropriations are and transfers - and related and services received by a usually made at the fund assets and liabilities - are government (but not level and are granted for a recognized in the including amounts due to one-year period. accounts and reported in other funds of the same the Town's financial government or to other Appropriation Ordinance: statements. governments). The official enactment by the legislative body Bond: A written promise to Accounts Receivable: An establishing the legal pay a specified sum of asset account reflecting authority for officials to money, called the face amounts owed to open obligate and expend sum of money, called the accounts from private resources. principal amount, at a persons or organizations for specified date or dates in goods or services furnished Assets: Resources owned the future, called the by the government. or held by the Town which maturity date(s), together has monetary value. with periodic interest at a Accrual Accounting: specified rate. Recognition of the Audit: An examination, financial effects of usually by an official or a Bond Covenant: A legally transactions, events, and private accounting firm enforceable agreement circumstances in the retained by the Town with bondholders that period (s) when they occur Council, of organization requires the governmental regardless of when the financial statements and agency selling the bond to cash is received or paid. the utilization of resources. meet certain conditions in the repayment of the debt. Page 163 GLOSSARY OF TERMS Bond Ordinance: A law Capital Expenditures: Any Council: The Mayor and approving the sale of major non-recurring five council members bonds that specifies how expenditure or collectively acting as the proceeds may be spent. expenditure for facilities, legislative and including additions or policymaking body of the Bond Funds: Resources major alterations, town derived from issuance of construction of highways bonds for financing capital or utility lines, fixed Current Assets: Those improvements. equipment, landscaping assets which are available or similar expenditures. or can be made readily Budget: The Town's available to finance financial plan for a specific Cash Basis: A basis of current operations or to fiscal year that contains an accounting under which pay current liabilities. Those estimate of proposed transactions are assets which will be used expenditures and the recognized when cash up or converted into cash proposed means of changes hand within one year. Some financing them. examples are cash, Certificates of Obligations temporary investments, Budget Amendment: A (CO's): Similar to general and accounts receivable revision of the adopted obligation bonds except collected within one year. budget that, when certificates require no approved by the Council, voter approval. Current Liabilities: Debt or replaces the original Comprehensive Annual other legal obligation provision. Financial Report (CAFR): arising out of transactions This report summarizes in the past which must be Budget Calendar: financial data for the liquidated, renewed, or Schedule of key dates previous fiscal year in a refunded within one year. which the Town follows in standardized format. the preparation and Debt Service Fund: A fund adoption of the budget. Contingency: A budgetary used to account for the reserve set aside for moneys set aside for the Budget Document: emergencies or payment of interest and Instrument used by the unforeseen expenditures principal to holders of the budget -making authority not otherwise budgeted. Town's general obligation to present a and revenue bonds, the comprehensive financial Contractual Services: The sale of which finances plan of operations to the costs related to services long-term capital Town Council. performed for the Town by improvements, such as individuals, businesses, or facilities, streets and Budgetary Control: The utilities. drainage, parks and control or management of water/wastewater systems. the organization in Cost: The amount of accordance with an money or other Deficit: The excess of approved budget for the consideration exchanged expenditures over purpose of keeping for property or services. revenues during an expenditures within the Cost may be incurred accounting period; or, in limitations of available before money is paid; that the case of proprietary appropriations and is, as soon as liability is funds, the excess of revenues. incurred. expense over income Page 164 GLOSSARY OF TERMS during an accounting Exempt: Personnel not other than buildings, period. eligible to receive machinery, and overtime pay and who are equipment. Department: A major expected to work administrative division of whatever hours are Franchise Fee: A fee the Town that indicates necessary to complete levied by the Town Council overall management their job assignments. on businesses that use responsibility for an Town property or right -of - operation or a group of Expenditures: Outflow or way. This fee is usually related operations within a non -enterprise funds paid charged as a percentage functional area. or to be paid for an asset of gross receipts. obtained or goods and Depreciation: Change in services obtained. Full -Time Equivalent (FTE): the value of assets The measure of authorized (equipment, buildings, etc. Expenses: Outflow of personnel often referred to with a useful life of 5 years enterprise funds paid or to as worker -years. The full or more) due to the use of be paid for an asset time equivalent of 1 the asset. obtained or goods and person (1 FTE) services obtained. approximately represents EMS: Emergency Medical 2080 hours of work per Services Fiscal Policy: The Town's year. policies with respond to Encumbrances: The spending and debt Fund: A fiscal and commitment of management as they accounting entity with a appropriated funds to relate to government self -balancing set of purchase an item or services, programs, and accounts recording cash service. capital investments. and other financial Reflect a set off principals resources, together with all Enterprise Fund: A fund for the planning and related liabilities and established to account for programming of residual equities or operations that are government budgets. balances, and changes financed and operated in therein, which are a manner similar to private Fiscal Year: A 12 -month segregated for the business enterprises - period to which the annual purpose of carrying on where the intent of the operating budget applies specific activities or governing body is that the and at the end of which a attaining certain costs of providing goods or government determines its objectives in accordance services to the general financial position and the with special regulations, public on a continuing result of its operations. The restrictions, or limitations. basis be financed or Town of Westlake's fiscal recovered primarily year begins each October Fund Accounting: A through user charges. 1 st and ends the following governmental accounting September 30th. system that is organized Excess Fund Balance: The and operated on a fund excess of a fund's current Fixed Assets: Assets of a basis. assets over its current long-term character, liabilities and required which are intended to Fund Balance: The excess reserve limits. continue to be held or of a fund's current assets used, such as land, over its current liabilities, buildings, improvements sometimes called working Page 165 GLOSSARY OF TERAS capital or fund equity. A fund. The General Fund is Inter -fund transfer: The negative fund balance is tax supported. transfer of money from one often referred to as a fund to another. deficit. General Obligation Bonds: Bonds sold and investments: Securities and GAAP -Generally guaranteed by the Town, real estate held for the Accepted Accounting in which the full faith and production of revenues in Principles: Uniform credit of the Town is the form of interest, minimum standards and pledged for repayment. dividends, rentals, or lease guidelines for financial payments. accounting and reporting. Governmental Funds: The They govern the form and funds through which most L.F. (Linear feet): Length in content of the financial governmental functions feet. statements of an entity. typically are financed. The GAAP encompass the acquisition, use, and Lift Station: The Town's conventions, rules and financial resources and the collection system relies on procedures necessary to related current liabilities gravity to collect water. define accepted are accounted for through When the system gets to accounting practice at a governmental funds an unreasonable depth, a particular time. They (General, Special lift station pumps the water include not only broad Revenue, Capital Projects, to a higher elevation so guidelines of general and Debt Service Funds). the gravity process can applications, but also begin again. detailed practices and Goal: Generalized procedures. GAAP statements of where an Line -item budget: A provide a standard by organization desires to be budget format in which which to measure financial at some future time with departmental outlays are presentations. regard to certain grouped according to the operating elements (e.g. items that will be GASB: Acronym for financial condition, service purchased. Government Accounting levels provided, etc.) Standards Board, an MGD: Million gallons per independent, non-profit Grant: A contribution by a day. agency responsible for the government or other promulgation of organization to support a Maintenance: The upkeep accounting and financial particular function. of physical properties in reporting procedures for Typically, these condition for use or governmental entities. contributions are made to occupancy. Examples are local governments from the inspection of GFOA: Government state or federal equipment to detect Finance Officers governments. defects and the making of Association of the United repairs. States and Canada Infrastructure: Basic public investments such as streets, Modified Accrual General Fund: The fund storm drainage, water and Accounting: This method used to account for all sewer lines, streetlights and of accounting is a financial resources except sidewalks. combination of cash and those required to be accrual accounting since accounted for in another expenditures are immediately incurred as a Page 166 GLOSSARY OF TERMS liability while revenues are spending, and service sales tax approved by the not recorded until they are delivery activities of the Town of Westlake voters in actually received or are Town are controlled. The May, 2006. Texas law "Measurable" and use of annual operating allowed the Town to "available for budgets is required by collect the new'/2 cent expenditure". This type of State law. sales tax that does not accounting basis is share the restrictive conservative and is Operating Expenditure: spending limitations on recommended as the Expenditure on an existing revenues designated to standard for most item of property or the 4A Economic government funds. equipment that is not a Development Fund'/2 cent capital expenditure. sales tax. 4A sales tax was Municipal: Of or dissolved and replaced pertaining to a Town or its Ordinance: An with this sales tax. government. authoritative command or order. This term is used for Proposed Budget: The Non -departmental: laws adopted by a financial plan initially Accounts for expenditures municipality. developed by or professional services departments and and other general Performance Measures: presented by the Town government functions, Specific quantitative Manger to the Town which cannot be measures of work Council for approval. allocated to individual performed within an departments. activity or program. They Proprietary Funds: may also measure results Operation that operates Non-exempt: Personnel obtained through an like a private operation, in eligible to receive activity or program. which services are overtime pay when financed through user overtime work has been Personnel Services: charges and expenditures authorized or requested by Expenditures for salaries, include the full cost of the supervisor. wages and related fringe operations. benefits of Town Object Code: The employees. Public Hearing: An open standard classification of meeting regarding the expenditures such as Prompt Payment Act: proposed operating or office supplies or rental of Adopted in July, 1985 by capital budget allocations, equipment. the State, the Act requires which provide citizens with the Town to pay for goods an opportunity to voice Objectives: Specific, and services within 30 days their views on the merits of measurable targets set in of receipt of invoice or the the proposals. relation to goals. goods or services, whichever comes later. If PVC: Acronym for polyvinyl Operating Budget: Plan for this is not satisfied, the chloride, a plastic current expenditures and Town may be charged compound used for water the proposed means of interest on the unpaid and sewer pipes. financing them. The balance at the rate of l% annual operating budget per month. Reserve: An account used is the primary means by to indicate that a portion which most of the Property Tax Reduction of fund resources is financing, acquisition, Sales Tax (PTR): '/2 cent restricted for a specific Page 167 purpose, or is not available for appropriation and subsequent spending. Resolution: A formal statement of opinion or determination adopted by an assembly or other formal group. Resources: Total dollars available for appropriations, including estimated revenues, fund transfers, and beginning fund balances. Retained Earnings: The excess of total assets over total liabilities for an enterprise fund. Retained earnings include both short-term and long-term assets and liabilities for an enterprise fund. Revenues: Funds that the government receives as income. It includes such items a tax payment, fees from specific services, receipts from other governments, fines for forfeitures, grants, shared revenues and interest income. ROW: Acronym for right-of- way. Sales Tax: A general "sales tax" is levied on persons and businesses selling merchandise or services in the town limits on a retail basis. The categories for taxation are defined by state law. Monies collected under authorization of this tax are for the use and benefit of the town. SCADA: Acronym that stands for Supervisory Control and Data Acquisition. SCADA refers to a system that collects data from various sensors at a remote location and then sends this data to a central computer which then manages and controls the data. Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Supplies: A cost category for minor items (individually priced at less than $5,000) required by departments to conduct their operations. TMRS: Acronym for the Texas Municipal Retirement System, a pension plan for employees of member cities within the State of Texas. TRA: Trinity River Authority - A separate governmental entity responsible for providing water and wastewater services in the Trinity River basin. The Town contracts with TRA for treatment of wastewater. TXDOT: Texas Department of Transportation GLOSSARY OF TERMS Transfer -In: Funds expended in one fund and received in other. User Charges: The payment of a fee for direct receipt of a public service by the party benefiting from the service. Working Capital: Budgeted working capital is calculated as a fund's current assets less current liabilities and outstanding encumbrances. Working capital does not include long-term assets or liabilities. For budgetary purposes, working capital, rather than retained earnings, is generally used to reflect the available resources of enterprise funds. TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES MUNICIPAL OPERATIONS STATEMENT OF PURPOSE The overall intent of the following Fiscal and Budgetary Policy Statements is to enable the Town to achieve a long-term stable and positive financial condition. The watchwords of the Town's financial management include integrity, prudence, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Town Manager and Finance Director in planning and directing the Town's day-to-day financial affairs and in developing recommendations to the Town Manger and Town Council. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to: A. Present fairly and with full disclosure the financial position and results of the financial operations of the Town in conformity with generally accepted accounting principles (GAAP), and B. Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Town Council will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: A. Operating Budget: Prepare, conservatively estimate revenues, present, and adopt the Town's annual operating plan. B. Revenues Management: Design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified, and sufficient revenue stream to support desired Town services. C. Expenditure Control: Identify priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. D. Fund Balance/Retained Earnings: Maintain the fund balance and retained earnings of the various operating funds at levels sufficient to protect the Town's creditworthiness as well as its financial position from emergencies. E. Debt Management: Establish guidelines for debt financing that will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. Page 169 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Intergovernmental Relationships: Where feasible, coordinate efforts with other governmental agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. G. Grants: Seek, apply for and effectively administer within this policy's guidelines, Federal, State, and foundation grants-in-aid which address the Town's current priorities and policy objectives. H. Economic Development: Initiate where feasible, encourage, and participate in economic development efforts to create job opportunities and strengthen the local tax base and economy Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Town's financial performance and economic condition. J. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Town's financial functions. Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). L. Capital Improvement Plan/Budget and Program: Multi-year planning, forecasting, preparation, and control of the Town's capital improvement plan/budget. M. Capital Maintenance and Replacement: Annually review and monitor the state of the Town's capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, finding alternatives, and availability of resources. N. Internal Controls: To establish and maintain an internal control structure designed to provide reasonable assurances that the Town's assets are safeguarded and that the possibilities for material errors in the Town's financial records are minimized. III. OPERATING BUDGET A. Preparation - Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The "operating budget" is the Town's annual financial operating plan. The budget includes all of the operating departments of the Town, the debt service fund, all capital projects funds, and the internal service funds of the Town. The proposed budget will be prepared with the cooperation of all Town departments, and is submitted to the Town Manager who makes any necessary changes and transmits the document to the Town Council. A budget preparation calendar and timetable will be established and followed in accordance with State law. Revenue Estimates for Budgeting - In order to maintain a stable level of services, the Town shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes Page 170 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES and their impacts on revenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid -year service reductions. C. Balanced Budget - As per State Law, current operating revenues, including Property Tax Reduction Sales Tax transfers (which can be used for operations), will be sufficient to support current operating expenditures. Annually recurring revenue will not be less than annually recurring operating budget expenditures (operating budget minus capital outlay). Debt or bond financing will not be used to finance current expenditures. D. Proposed Budget Process - a proposed budget shall be prepared by the Town Manager with the participation of all of the Town's department directors. • The proposed budget shall include four basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, and (4) revenues. • The proposed budget review process shall include Council participation in the review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation. • The proposed budget process shall allow sufficient time to provide review, as well as address policy and fiscal issues, by the Town Council. • A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Town Council as well as placed on the Town's website. E. Budget Adoption - Upon the determination and presentation of the final iteration of the proposed budget as established by the Council, a public hearing date and time will be set and publicized. The Council will subsequently consider a resolution which, if adopted, such budget becomes the Town's Approved Annual Budget. The adopted budget will be effective for the fiscal year beginning October 1. The approved budget will be placed on the Town's web site. Budget Award - Each year the Council approved operating budget will be submitted annually to the Government Finance Officers Association (GFOA) for evaluation and consideration for the Award for Distinguished Budget Presentation. G. Budget Amendments - Department Directors are responsible for monitoring their respective department budgets. The Finance Department will monitor all financial operations. The budget team will decide whether to proceed with a budget amendment and, if so, will then present the request to the Town Council. If the Council decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. H. Central Control - Modifications within the operating categories (salaries, supplies, maintenance, services, capital, etc.) can be made with the approval of the Town Manager. Modifications to reserve categories and interdepartmental budget totals will be made only by Town Council consent with formal briefing and Council action. Planning - The budget process will be coordinated so as to identify major policy issues for Town Council by integrating it into the Council's overall strategic planning process for the Town. Each department shall have a multi-year business plan that integrates with the Town's overall strategic plan. Page 171 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Reporting - Monthly financial reports will be prepared by the Finance Department and distributed to and reviewed by each Director. Information obtained from financial reports and other operating reports is to be used by Directors to monitor and control departmental budget. Summary financial reports will be presented to the Town Council quarterly. Performance Measures & Productivity Indicators - Where appropriate, performance measures and productivity indicators will be used as guidelines to measure efficiency, effectiveness, and outcomes of Town services. This information will be included in the annual budget process as needed. L. Contingent Appropriation - During the budget process, staff will attempt to establish an adequate contingent appropriation in each of the operating funds. The expenditure for this appropriation shall be made only in cases of emergency, and a detailed account shall be recorded and reported. The proceeds shall be disbursed only by transfer to departmental appropriation. All transfers from the contingent appropriation will be evaluated using the following criteria: • Is the request of such an emergency nature that it must be made immediately? • Why was the item not budgeted in the normal budget process? • Why can't the transfer be made within the department? IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETER. The Town will pursue the following optimum characteristics in its revenue system: • Simplicity - The Town, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase citizen understanding of Town revenue sources. • Certainty - A knowledge and understanding of revenue sources reliability increases the viability of the revenue system. The Town will understand, to the best of its ability, all aspects of its revenue sources and their performance, as well as enact consistent collection policies to provide assurances that the revenue base will materialize according to budgets, forecasts, and plans. • Equity - The Town shall make every effort to maintain equity in its revenue system: i.e. the Town shall seek to minimize or eliminate all forms of subsidization between entities, funds, services utilities, and customer classes within a utility. • Administration - The benefits of a revenue source will not exceed the cost of collecting that revenue. Every effort will be made for the cost of collection to be reviewed annually for cost effectiveness as a part of the Town's indirect cost and cost of service analysis. • Adequacy, Diversification and Stability - The Town shall attempt, in as much as is practical, to achieve a balance in its revenue system. The Town shall also strive to maintain a balanced and diversified revenue system to protect the Town from fluctuations in any one source due to changes in local economic conditions which adversely impact that revenue source. B. OTHER CONSIDERATIONS. The following considerations and issues will guide the Town in its revenue policies concerning specific sources of funds: Page 172 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES • Cost/Benefit of Incentives for Economic Development - The Town will use due caution in the analysis of any tax or fee incentives that are being considered to encourage economic development. A cost/benefit (fiscal impact) analysis will be performed as a part of the evaluation for each proposed economic development project. • Non -Recurring Revenues - One-time or non-recurring revenues will not be used to finance on-going operational costs. Non-recurring revenues will be used only for one- time expenditures such as long-lived capital needs or one-time major maintenance projects that occur infrequently. Non-recurring revenues will not be used for budget balancing purposes except to cover the one-time expenditures described above. • Investment Income - Earnings from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the equity balance of the fund from which monies were provided to be invested. • Property Tax Revenues - The Town shall endeavor to avoid a property tax by revenue diversification, implementation of user fees, and economic development. C. USER -BASED (DEMAND DRIVEN) FEES AND SERVICE CHARGES. For services that are demand driven and can be associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. The Town staff will endeavor to prepare a review of all fees and charges annually, but not less than once every three years, in order to ensure that these fees provide for, at minimum, full cost recovery of service. D. ENTERPRISE FUND RATES. Utility rates and rate structures for water and sewer services will be constructed to target full cost of service recovery. Annually the Town will review and adopt water and sewer utility rates and a rate structure that generates revenue sufficient to fully cover operating expenses, meet the legal restrictions of all applicable bond covenants, provide for an adequate level of working capital, and recover applicable general/administrative costs. The Solid Waste function will have rates that fully recover all costs and maintain an adequate balance. The Cemetery Fund will be structured to operate on lot sales and endowments. General and Administrative (G&A) Charges - Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, customer billing, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. These charges will be determined through an indirect cost allocation study following accepted practices and procedures. E. INTERGOVERNMENTAL REVENUES. As a general rule, intergovernmental revenues (grants) will not be utilized for on-going operating costs. Any potential grant opportunity will be examined to identify all costs related to matching and continuation of program requirements. Staff will focus on one-time grants to avoid long-term implications. If it is determined that accepting a grant with on-going cost conditions is in the interests of the Town, all the operating and maintenance costs must be included in the financial forecast and their ultimate effect on operations and revenue requirements be known. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. Page 173 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES G. SPECIAL REVENUE / EDUCATIONAL FUNDS. Where feasible and practical, General and Administrative Charges (G&A) for special revenue and educational funds of the Town of Westlake will be determined on an annual basis and transfers will be made where sufficient revenue exists to cover the associated expenditures. V. EXPENDITURE CONTROL A. Appropriations - The point of budgetary control is at the department level in the General Fund and at the fund level in all other funds. When budget adjustments among Departments and/or funds are necessary, they must be approved by the Town Council. B. Current Funding Basis - The Town shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) C. Avoidance of Operating Deficits - The Town shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re -estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance within the Fund. D. Balance/Retained Earnings Policy- Expenditure deferrals into the following fiscal year, short- term loans, or use of one-time revenue sources shall be avoided to balance the budget. E. Maintenance of Capital Assets - Within the resources available each fiscal year, the Town shall maintain capital assets and infrastructure at a sufficient level to protect the Town's investment, to minimize future replacement and maintenance costs, and to continue service levels. Periodic Program Reviews - The Town Manager shall undertake periodic staff and third - party reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. G. Salary - The Town shall strive to maintain competitive salary levels for municipal employees. A salary survey will be conducted through a sampling of surrounding and comparable municipal organizations to create a comparison. The Town will strive to maintain salary levels within three percent (3%) of the median of surveyed benchmark municipalities. H. Purchasing - The Town shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use competitive bidding in accordance to State law, as well as intergovernmental partnerships and purchasing cooperatives to attain the best possible price on goods and services. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Page 174 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES VI. FUND BALANCE/RETAINED EARNINGS A. General Fund Undesignated Fund Balance - The Town shall strive to maintain the General Fund undesignated fund balance at, or in excess of, 90 days of operation. B. Retained Earnings of Other Operating Funds - In the Utility Fund, the Town shall strive to maintain positive retained earnings positions to provide sufficient reserves for emergencies and revenue shortfalls. C Use of Fund Balance - Fund Balance will be targeted to only be used with Council approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Council shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year- end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action. The Council delegates the responsibility to assign funds to the Town Manager or his/her designee. The Council shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Council will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned VII. DEBT MANAGEMENT A. Debt Issuance Analysis - All consideration of debt issuance for major capital assets will be prepared within the framework of a Council approved multi-year capital improvement plan and forecast for all Town facilities and infrastructure. B. Analysis of Debt Issuance and Debt Issuance Alternatives - Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives will include, but not be limited to, (1) grants- in- aid, (2) use of reserves, (3) use of either current on-going general revenues or one-time revenues, (4) contributions from developers and others, (5) leases, (6) user fees, and (7) impact fees. C. Use of Debt Financing - The useful life of the asset or project shall, at a minimum, exceed the payout schedule of any debt the Town assumes. Debt financing instruments to be considered by the Town may include: General obligation bonds - These must be authorized by a vote of the citizens of Westlake. Revenue bonds - These bonds generate capital requirements necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonable be expected to provide for a revenue stream to fund the debt service requirement. Page 175 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Certificates of obligation - These can be authorized by Council approval with debt service by either general revenues or backed by a specific revenue stream or a combination of both. Lease/purchase agreements - These shall only be used to purchase capital assets that cannot be financed from either current revenues or fund balance/retained earnings and to fund infrastructure improvements and additions. D. Assumption of Additional Debt - The Town shall not assume more tax -supported general purpose debt than it retires each year without first conducting an objective analysis as to the community's ability to assume and support additional debt service payments. E. Affordability Targets - The Town shall use an objective multi-year analytical approach to determine whether it can afford to assume new general purpose debt beyond what it retires each year. This process shall compare generally accepted standards of affordability to the current values for the Town. The process shall also examine the direct costs and benefits of the proposed expenditures. The decision on whether or not to assume new debt shall be based on these costs and benefits and on the Town's ability to "afford" new debt as determined by the aforementioned standards. The Town shall strive to achieve and/or maintain these standards at a low to moderate classification. Debt Structure - The Town shall structure its debt payment schedules for general purpose debt to ensure level principal repayment schedules. The Town shall not assume any debt with "balloon' repayment schedules which consist of low annual payments and one large payment of the balance due at the end of the term. While balloon payment structures minimize the size of debt payments during the period, they force a large funding requirement on the budget of the final year. Given the uncertainties of the future, level payment schedules improve budget planning and financial management. G. Sale Process - The Town shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated bid. The Town shall award bonds based on a true interest cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine the lowest and best bid. H. Bond Rating Agencies Presentations - Full disclosure of operations and open lines of communication shall be made to the bond rating agencies. Town staff, with assistance of financial advisors, shall prepare the necessary materials and presentation to the bond rating agencies. Continuing Disclosure - The Town is committed to continuing disclosure of financial and pertinent credit information relevant to the Town's outstanding securities. J. Debt Refunding - Town staff and the financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present value savings of a particular refunding should exceed 3.5% of the refunded maturities. Page 176 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES VIII. INTERGOVERNMENTAL RELATIONSHIPS The Town will pursue coordinated efforts with other governmental agencies to achieve common policy objectives, share the cost of providing government services on an equitable basis, and support favorable legislation at the State and Federal levels. A. Inter -local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of services, the Town shall actively seek to work with other local jurisdictions in joint purchasing consortia, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its citizens. B. Legislative Program - The Town shall cooperate with other jurisdictions to actively oppose any State or Federal regulation or proposal that mandates additional Town programs or services and does not provide the funding to implement them. Conversely, as appropriate, the Town shall support legislative initiatives that provide more funds for priority local programs. IX. GRANTS A. Grant Guidelines - The Town shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified above in these policies. The potential for incurring on-going costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. B. Grant Review - All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Town's policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years. C. Grant Program Termination - The Town shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified. X. ECONOMIC DEVELOPMENT A. Positive Business Environment - The Town shall endeavor, through its regulatory and administrative functions, to provide a positive business environment in which local businesses can grow, flourish and create jobs. The Town Council and Town staff will be sensitive to the needs, concerns and issues facing local businesses. Commitment to Business Expansion, Diversification, and Job Creation - The Town shall encourage and participate in economic development efforts to expand Westlake's economy to increase local employment. These efforts shall not only focus on newly developing areas but also on other established sections of Westlake where development can generate additional jobs and other economic benefits. Page 177 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES C. Coordinate Efforts with Other Jurisdictions - The Town's economic development program shall encourage close cooperation with other local jurisdictions, chambers of commerce, and groups Interested in promoting the economic well-being of this area. D. Cost/Benefit of Incentives for Economic Development - The Town will use due caution in the analysis of any tax or fee incentives that are used to encourage economic development. A cost/benefit (fiscal impact) analysis will be performed as part of such evaluation for each prospect. Economic development agreements will contain performance language as to the business's proposed economic impact to Westlake in exchange for Town incentives with adequate "claw -back" provisions for the Town. XI. FISCAL MONITORING A. Financial Status and Performance Reports - Quarterly reports comparing expenditures and revenues to current budget, projecting expenditures and revenues through the end of the year, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Town's financial position shall be prepared for review by the Town Manager and the Council. Compliance with Council Policy Statements - The Fiscal and Budgetary Policies will be reviewed annually by the Council and updated, revised or refined as deemed necessary. Policy statements adopted by the Council are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained. XII. FINANCIAL CONSULTANTS To employ the assistance of qualified financial advisors and consultants as needed in the management and administration of the Town's financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations A. Accounting - The Town is solely responsible for the recording and reporting of its financial affairs, both internally and externally. The Town's Finance Director is responsible for establishing the structure for the Town's chart of accounts and for assuring that procedures are in place to properly record financial transactions and report the Town's financial position. Page 178 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES B. External Auditing - Town will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the town's audit in accordance with generally accepted auditing standards and be knowledgeable in the Government Finance Officers Association Certificate of Achievement program. The auditors' report on Town's financial statements will be completed within a timely period of the Town's fiscal year-end. The auditor will jointly review the management letter with the Town Council, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Town Council regarding the auditor's Management Letter, addressing the issued contained therein. The Town will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. C. External Financial Reporting - Town will prepare and publish a comprehensive annual financial report (CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and awarding of the Certificate of Achievement for Excellence in Financial Reporting. D. Responsibility of Auditor to Town Council - The auditor is retained by and it accountable directly to the Town Council and will have access to direct communication with the Town Council if the Town Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. E. Internal Financial Reporting - The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Town's financial affairs. XIV. CAPITAL BUDGET AND PROGRAM A. Preparation - The Town's capital budget will include all capital projects funds and all capital resources. While the capital budget will be prepared annually on a project basis, it will be based on an on-going, multi-year capital improvement plan (CIP) that shows all funded and unfunded projects as identified by staff for all Town facilities and infrastructure. The multi-year CIP will be reviewed annually, updated by staff and presented to the Council for its review and approval. The annual capital budget will be prepared by the Finance Department with the involvement of responsible departments based on the multi- year CIP. B. Control - All capital project expenditures must be appropriated in the capital budget. The Finance Director must certify the availability of resources before any capital project contract is presented to the Town Council for approval. C. Program Planning - The capital budget will be taken from the capital improvements project plan for future years. The planning time frame for the capital improvements project plan should normally be five years, with a minimum of at least three years. The replacement and maintenance for capital items should also be projected for the next five years. Future maintenance and operational costs will be considered so that these costs can be included as appropriate in the annual budget. Page 179 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES D. Financing Programs - Where applicable and with Council approval, impact fees, pro -rata charges, assessments, or other fees should be used to fund capital projects which have a primary benefit to specific, identifiable property owners. Recognizing that long-term debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives which equal or exceed the average life of the debt issue. E. Reporting - Periodic financial reports will be prepared to enable the department directors to manage their capital budgets. Summary capital project status reports will be presented to the Town Council quarterly. XV. CAPITAL MAINTENANCE AND REPLACEMENT The Town recognizes that deferred maintenance and not anticipating capital replacement needs increases future capital costs. Annually, available funds will be evaluated during the budget process and a percentage of each operating fund's budget will be recommended to the Council for transfer. Upon approval by the Council, the recommended amount will be transferred to the appropriate funds (General or Utility Maintenance Replacement Fund) for major maintenance/ replacement of street, building roof, flooring, air conditioning, equipment, etc. XVI. INTERNAL CONTROLS A. Written Procedures - Whenever possible, written procedures will be established and maintained by the Finance Director for all functions involving purchasing, cash handling and/or accounting throughout the Town. These procedures will embrace the general concepts of fiscal responsibility set for in this policy statement. B. Department Directors' Responsibilities - Each department director is responsible for ensuring that good internal controls are followed throughout his/her department, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Departments will develop and periodically update written internal control procedures. XVII. ASSET MANAGEMENT A. Investments - The Finance Director shall promptly invest all Town funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Town Council. Further, investments shall be made in accordance with the Investment Policy approved by the Town Council for the Town of Westlake that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government Code. The Finance Director will issue quarterly reports on investment activity to the Town Council. Cash Management - Town's cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections, where feasibility, including utility bills, building and related permits and license, fines, fees, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return. C. Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The fixed asset inventory will be updated regularly. D. Capitalization Criteria - For purposes of budgeting and accounting classification, the following criteria must be capitalized: • The asset is owned by the Town of Westlake • The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year • The original cost of the asset must be at least $5,000 • The asset must be tangible • On-going repairs and general maintenance are not capitalized • New Purchases - All costs associated with bringing the asset into working order will be capitalized as part of the asset cost. This includes start up costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase • Improvements and Replacement - Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria. E. Computer System/Data Security - The Town shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications, firewalls, content filtering, spam/virus protection, and redundant data backup. ACADEMIC OPERATIONS STATEMENT OF PURPOSE The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a long-term stable and positive financial condition. The watchwords of the Academy's financial management include integrity, prudent, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Finance Director in planning and directing the Academy's day-to-day financial affairs and in developing recommendations to the Academy Superintendent or his designate and Academy Board of Trustees. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to: • Present fairly and with full disclosure the financial position and results of the financial operations of the Academy in conformity with generally accepted accounting principles (GAAP), and TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES • Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. II. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: Operating Budget: Prepare conservatively, estimate revenues, present and adopt the Academy's annual operating plan. Revenues Management: Design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired Academy services. Expenditure Control: Identify priority services, establish appropriate service levels and administer the expenditure of available resources necessary to assure fiscal stability and the effective and efficient delivery of services. Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect the Academy's creditworthiness as well as its financial position from emergencies. Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which address the Academy's current priorities and policy objectives. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Academy's financial performance and economic condition. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Academy's financial functions. Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). Internal Controls: To establish and maintain an internal control structure designed to provide reasonable assurances that the Academy's assets are safeguarded and that the possibilities for material errors in the Academy's financial records are minimized. Page 182 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES OPERATING BUDGET PREPARATION - BUDGETING IS AN ESSENTIAL ELEMENT OF THE FINANCIAL PLANNING, CONTROL, AND EVALUATION PROCESS. THE "OPERATING BUDGET" IS THE ACADEMY'S ANNUAL FINANCIAL OPERATING PLAN RELATED TO EDUCATIONAL SERVICE INSTRUCTIONAL COSTS. The Academy operating budget is legally required to include the Academy's General, Debt Service, and Food Service Funds. Currently, Westlake Academy only has one fund, the General Fund, which must be legally adopted annually. The Academy budgets the Special Revenue Funds for informational purposes only. Information to be prepared includes documentation related to Service Level Adjustments (SLAB) for increases to existing service levels or additional services, position control schedules, general and administrative cost implications, etc. will be submitted and reviewed during the budget process. SLA's related to new position requests will include an assessment of their impact on additional internal services necessary to support these positions as it relates to General & Administrative (G&A) charges in the Academy budget ( subject to funding availability) to fund these costs. A budget preparation calendar and timetable will be established and followed in accordance with State law. Revenue Estimates for Budgeting - In order to maintain a stable level of services, the Academy shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, number of students, and trends in revenues. It will also include an assessment of the State legislative environment related to public charter school funding levels. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid- year service reductions. Balanced Budget - A balanced budget is a budget with total expenditures not exceeding total revenues and monies available in the fund balance within an individual fund. Proposed Budget Content and Process - A proposed budget shall be prepared by the Superintendent or his designate with the participation of the Academy's Leadership Team, Finance Director and Academy staff, and then submitted to the Superintendent for review. Following the Superintendent's review, the proposed budget will be presented to the Board for its consideration. The proposed budget shall include five basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, (4) revenues, and (5) General Administrative (G&A) costs. The proposed budget review process shall include Board of Trustees review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation process. Page 183 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Concurrent with the Academy budget preparation, Town staff will identify and provide to the Board all direct Academy expenses contained in the Town's municipal budget. The proposed budget process shall allow sufficient time to provide review as well as address policy and fiscal issues by the Board of Trustees. A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Board of Trustees as well as placed on the Academy's website. Budget Adoption - Upon the determination and presentation of the final iteration of the proposed budget document as established by the Board of Trustees, a public hearing will be set and publicized. The Board will subsequently consider a resolution which, if adopted, such budget becomes the Academy's Annual Budget. The adopted budget will be effective for the fiscal year beginning September 1. Budget Amendments - The Superintendent or his designate and Finance Department will monitor all financial operations. A school district must amend the official budget before exceeding a functional expenditure category, i.e., instruction, administration, etc. in the total budget. The budget team will decide whether to proceed with the budget amendment and, if so, will then present the request to the Board of Trustees. If the Board decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. Planning - The budget process will be coordinated so as to identify major policy issues for the Board of Trustees by integrating it into the Board's overall strategic planning process for the Academy. Reporting - Monthly financial reports will be prepared by the Finance Department and distributed to the Superintendent or his designate. Information obtained from financial reports and other operating reports is to be used by personnel to monitor and control the budget. Summary financial reports will be presented to the Board quarterly. IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum characteristics in its revenue system: • Simplicity - The Academy, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase parent and citizen understanding of Academy revenue sources. • Certainty - A thorough knowledge and understanding of revenue sources increases the reliability of the revenue system. • Administration - The benefits of a revenue source will exceed the cost of administering that revenue. Every effort will be made for the cost of administration to be reviewed annually for cost effectiveness as a part of the indirect cost and cost of service analysis. • Equity - The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy shall seek to minimize or eliminate all forms of subsidization between entities. • Adequacy, Diversification and Stability - To the extent practical, the Academy shall attempt to achieve a balance in its revenue system. The Academy shall also strive to maintain a balanced and diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. Page 184 TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES B. REVENUE CLASSIFICANTION AND SOURCES. The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local and come from the following sources : • State Education funding • State and Federal Grants • General Donations - The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. o Westlake Academy Foundation • House of Commons o Westlake Academy Athletic Club • Local Merchants • Specific Purpose Donations - Funds donated for a specific purpose C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL Appropriations - The point of budgetary control is at the function level in the General Fund and Special Revenue Funds. When budget adjustments among functions are necessary, they must be approved by the Board of Trustees. Current Funding Basis - The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) Avoidance of Operating Deficits - The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re -estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of fund balance within the Fund. Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees. ❖ Expenditure deferrals into the following fiscal year, short-term loans, or use of one- time revenue sources shall be avoided to balance the budget. Periodic Program Reviews - The Superintendent or his designate shall undertake periodic staff and third -party reviews of Academy programs for both efficiency and effectiveness. Where appropriate, privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. General and Administrative (G&A) Charges - To the extent practical, an annual analysis of G&A charges will be performed and funding allocated, if available. The purpose of determining the associated costs for G&A charges is to identify the full operational costs of the entity in question. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. If funding is not available, these costs will be shown below the line of the financial statement in the five-year financial forecast in order to promote transparency and provide the Board with a full cost accounting of services. The charges will be determined through an indirect cost allocation study following accepted practices and procedures. Purchasing - The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Salary - The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools, to create a comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of surveyed schools. (Existing language) VI. FUND BALANCE Fund Balance Reporting - The District shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Nonspendable, Restricted, Committed, Assigned, and Unassigned. General Fund Unassigned Fund Balance - The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation. Use of Fund Balance - Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Board of Trustees shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action. The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. The Board of Trustees shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned VII. INTERGOVERNMENTAL RELATIONSHIPS Inter -local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of services, the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its students. Legislative Program - The Academy shall cooperate with other entities to actively oppose any state or federal regulation or proposal that mandates additional Academy programs or TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES services and does not provide the funding to implement them. Conversely, as appropriate, the Academy shall support legislative initiatives that provide additional funding. VIII. GRANTS Grant Guidelines - The Academy shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified by Academy Board of Trustees. The potential for incurring ongoing costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. Grant Review - All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Academy's policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years. Grant Program Termination - The Academy shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified and obtained. IX. FISCAL MONITORING Financial Status and Performance Reports - Quarterly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Academy's financial position shall be prepared for review by the Superintendent and the Board of Trustees. Student roster information will also be included in the quarter reports submitted to the Board of Trustees. Compliance with Board Policy Statements reviewed annually by the Board of Trustees necessary. Policy statements adopted by occasionally, exceptions may be appropriate policies will be specifically identified, and the and fully explained. X. FINANCIAL CONSULTANTS - The Fiscal and Budgetary Policies will be and updated, revised or refined as deemed the Board of Trustees are guidelines, and and required. However, exceptions to stated need for the exception will be documented The Academy employs the assistance of qualified financial advisors and consultants as needed in the management and administration of the Academy's financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XI. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING The Academy strives to comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations. Required Texas Education Agency (TEA) account coding will be used for all revenue and expenditure reporting. • Accounting - Currently, the Education Service Center (Region XI) books all revenues and expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding and approval of expenditures and revenues. Documentation and coding of deposits are forwarded to the Town's Finance Department for review and preparation of deposit slips. Town's Finance Director and staff are responsible for review and transfer of invoices and other documentation to the Service Center for processing as well as the physical deposit of funds. It is the responsibility of the Superintendent or his designate and Academy staff to review the monthly reports for any discrepancies and report to the Town's Finance Director for analysis and re -class of questioned bookings, if appropriate. • External Auditing - Academy will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the Academy's audit in accordance with generally accepted auditing standards. The auditors' report on Academy's financial statements will be completed within a timely period of the Academy's fiscal year-end. The auditor will jointly review the management letter with the Academy Board of Trustees, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Academy Board of Trustees regarding the auditor's Management Letter, addressing the issued contained therein. The Academy will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. • Responsibility of Auditor to Academy Board of Trustees - The auditor is retained by and is accountable directly to the Academy Board of Trustees and will have access to direct communication with the Academy Board of Trustees if the Academy Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. • Internal Financial Reporting - The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Academy's financial affairs. XII. INTERNAL CONTROLS Written Procedures - Whenever possible, written procedures will be established and maintained by the Finance Director and utilized by all Academy personnel for all functions involving purchasing, cash handling and/or accounting throughout the Academy. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement. Academy Staff Responsibilities - The Superintendent or his designate, in consultation with the Finance Director, will be responsible for ensuring that appropriate internal controls are followed throughout the Academy, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Staff will develop and periodically update written internal control procedures. XIII. ASSET MANAGEMENT • Investments - The Finance Director shall promptly invest all Academy funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Academy Board of Trustees. The Academy Board of Trustees has formally approved a separate Investment Policy for the Academy of Westlake that meets the requirements of the Public Funds Investment Act TOWN OF WESTLAKE / WESTLAKE ACADEMY FISCAL AND BUDGETARY POLICIES (PFIA), Section 2256 of the Texas Local Government Code. The Academy's investment practices will be conducted in accordance with this policy. The Finance Director will issue quarterly reports on investment activity to the Academy Board of Trustees. Cash Management - Academy's cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections, where feasible, including field trips, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return. Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The fixed asset inventory will be updated regularly. Capital Assets -Currently all capital assets of Westlake Academy are owned and purchased by the Town of Westlake. In subsequent years, additional asset purchases may be paid with Westlake Academy funds. Capitalization Criteria - For purposes of budgeting and accounting classification, the following criteria must be capitalized: o The asset is owned by the Westlake Academy o The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year o The original cost of the asset must be at least $5,000 o The asset must be tangible o On-going repairs and general maintenance are not capitalized o New Purchases - All costs associated with bringing the asset into working order will be capitalized as a part of the asset cost. This includes startup costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase o Improvements and Replacement - Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria. Computer System/Data Security - The Academy shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications, firewalls, content filtering, spam/virus protection, and redundant data backup. INVESTMENT POLICY POLICY STATEMENT It is the policy of the Town of Westlake (the "Town") that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the Town and conforming to all applicable state and Town statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the Town to be in complete compliance with local law and the Texas Public Funds Investment Act (the "Act", Texas Government Code 2256). The earnings from investments will be used in a manner that best serves the public trust and interests of the Town. II. SCOPE This Investment Policy applies to all the financial assets and funds held of the Town. Any new funds created by the Town will be managed under the provisions of this Policy unless specifically exempted by the Town Council and this Policy. III. OBJECTIVES AND STRATEGY It is the policy of the Town that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. These objectives encompass the following. • Safety of Principal - Safety of principal is the foremost objective of the Town. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. The suitability of each investment decision will be made on the basis of safety. • Liquidity - The Town's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. Investment decisions will be based on cash flow analysis of anticipated expenditures. • Diversification - Diversification is required in the portfolio's composition. Diversification of the portfolio will include diversification by maturity and market sector and will include the use of a number of broker/dealers or banks for diversification and market coverage. Competitive bidding will be used on each sale or purchase. • Yield - The Town's investment portfolio shall be designed with the objective of attaining a reasonable market yield, taking into account the Town's risk constraints and cash flow needs. A reasonable market yield for the portfolio will be defined as the six month (180 day) U.S. Treasury Bill which compares to the portfolio's maximum weighted average maturity of six months. The authorized investment purchased will be of the highest credit quality and marketability supporting the objectives of safety and liquidity. Securities, when not matched to a specific liability, will be short term to provide adequate liquidity. The portfolio shall be diversified to protect against market and credit risk in any one sector. Page 190 INVESTMENT POLICY The maximum weighted average maturity of the portfolio will be no more that 180 days and the maximum stated maturity of any security will not exceed two years. The funds are combined for investment purposes but the unique needs of all the funds in the portfolio are recognized and represented. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The Town shall maintain a cash management program which includes timely collection of accounts receivable, prudent investment, disbursement of payments within invoice terms and the management of banking services. IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Specific investment parameters for the investment of public funds in Texas are stipulated in the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act"). The Act is attached as Exhibit A. The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral requirements for all public funds deposits. The Collateral Act is attached as Exhibit B. The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local governments in Texas to participate in a Texas investment pool established thereunder. V. DELEGATION OF INVESTMENT AUTHORITY The Finance Director, acting on behalf of the Council, is designated as the Investment Officer of the Town and is responsible for all investment management decisions and activities. The Council is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officer shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include safekeeping, wire transfers, banking services contracts, and other investment related activities. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officer is not available. No officer or designee may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer and approved by the Town Manager. VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Page 191 INVESTMENT POLICY This standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." Limitation of Personal Liability - The Investment Officer and those delegated investment authority, when acting in accordance with the written procedures and this Policy and in accord with the Prudent Person Rule, shall be relieved of personal liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change are reported in a timely manner and that appropriate action is taken to control adverse market effects. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the Town. The controls shall be designed to prevent loss of public funds due to fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the Town. VIII. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The choice of high-grade government investments and high-grade, money market instruments are designed to assure the marketability of those investments should liquidity needs arise. • Obligations of the United States Government, its agencies and instrumentalities, not to exceed two (2) years to stated maturity and excluding mortgage backed securities; • Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to stated maturity; • No-load, SEC registered money market mutual funds. No more than 80% of the entity's monthly average balance may be invested in money market funds • Public Funds interest bearing accounts; and • Constant dollar, AAA -rated Texas Local Government Investment Pools as defined by the Public Funds Investment Act. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment until this Policy has been amended and the amended version adopted by the Council. Delivery versus Payment - All investment security transactions shall be conducted on a delivery versus payment (DVP) basis to assure that the Town has control of its assets and/or funds at all times. Page 192 INVESTMENT POLICY IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS Securities broker/dealers may be primary or regional broker/dealers and will meet other criteria as determined by the Investment Officer including state registration and completion of a Town Broker/Dealer questionnaire (attached as Exhibit D). The following criteria must be met by authorized firms. • annual provision of an audited financial statement, • proof of certification by the National Association of Securities Dealers (NASD) • proof of current registration with the Texas State Securities Commission, and • completion of the Town's broker/dealer questionnaire. Every bank and broker/dealer with whom the Town transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The firm will be required to return a signed copy of the Certification Form (attached as Exhibit C) certifying that the Policy has been received and reviewed and only those securities approved by the Policy will be sold to the Town. X. DIVERSIFICATION AND MATURITY LIMITATIONS It is the policy of the Town to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over -concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. XI. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment (DVP) basis and be held in safekeeping by either an approved, independent third party financial institution or the Town's designated depository. Securities Owned by the Town - All safekeeping arrangements shall be approved by the Investment Officer and an agreement of the terms executed in writing. The safekeeping bank may not be within the same holding company as the bank from which the securities are purchased. The custodian shall be required to issue original safekeeping receipts to the Town listing each specific security, rate, description, maturity, CUSIP number, and other pertinent information. Collateral - Collateralization shall be required on all bank time and demand deposits for principal and accrued interest amounts over the FDIC insurance coverage of $100,000 (by tax identification number). In order to anticipate market changes and provide a level of additional security for all funds, collateral with a market value equal to 102% of the total deposits are required. The pledging bank will be made contractually liable for monitoring and maintaining the collateral levels at all times. All collateral will be held by an independent third party bank outside the holding company of the bank, pledged to the Town. Authorized collateral will include only: • Obligations of the US Government, its agencies and instrumentalities to include mortgage backed securities which pass the bank test, • Municipal obligations rated at least A by two nationally recognized rating agencies. • The custodian shall be required to provide original safekeeping receipts clearly marked that the security is pledged to the Town. Page 193 INVESTMENT POLICY XII. REPORTING The Investment Officer shall submit quarterly reports to the Council containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program and in full compliance with the Act. At a minimum the report shall contain: • Beginning and ending market value of the portfolio by market sector and total portfolio • Beginning and ending book value of the portfolio by market sector and total portfolio • Change in market value during the period • Detail on each asset (book, market, description, par ad maturity date) • Earnings for the period • Overall weighted average maturity of the portfolio The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer. It will contain all elements as required by the Act and be signed by the Investment Officers as in compliance with the Act and this Policy. Market prices for assignment of market values will be obtained from an independent source. The three month Treasury Bill average yield for the reporting period will be reported as a gauge of performance and risk. XIII. DEPOSITORIES The Town will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of Town owned securities. Other banking institutions from which the Town may purchase only certificates of deposit will also be designated as a depository. All banking arrangements will be in written form in accordance with FIRREA which requires a resolution of approval of the agreement by the Bank Council or Bank Loan Committee. XIV. INVESTMENT POLICY ADOPTION BY COUNCIL The Town's Investment Policy and its incorporated strategies shall be adopted by resolution annually by the Council. Page 194 • Town of Westlake 'Westlake, a premier �nozvledge based community Strategic Issues -Focused Governance System In order to focus our efforts as it pertains to serving the residents and businesses as well as creating a dynamic strategic planning document, the Council and staff developed a Strategic Issues -Focused Governance System (SIGS). The system is designed to combine the strategic plan, Balanced Scorecard Strategy Map and program based budget document into a comprehensive tool to guide the Town Council and staff as well as create an achievable vision for Westlake. The plan is organized according to Strategic Issues, identified as affecting our community over the next 24 months. This type of issues focused version of a traditional strategic plan is designed to allow the organization to scan our envi- ronment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. The Strategy Map from the Balanced Scorecard component of the SIGS outlines the Town Council directives which are vital to our service provision levels for our community and identify measurable objectives to indicate our performance in these areas of achievement. The Program Based Budget is an effort to quantify the cost of services by program rather than the traditional line -item budget format. The financial costs are identified by each program, rather than by each department, along with an explanation of the core services and program objectives. The philosophy of the Town of Westlake's team embraces a "shared services model" as the most cost effective method to deliver excellent public services to the community through our dedicated and professional staff members. The community consists of our local residents, the children, parents and staff of Westlake Academy, our corporate citizens, the employees who work in Westlake and various other customers, developers and visitors who do business in and around our town. Through the use of a hybrid of internal direct service provision, inter -local agreements, public/private partnerships and the shared provision of programs at Westlake Academy, the staff strives to maintain Westlake as a premiere choice for Table of Contents families and corporate neighbors while operating in a financially responsible manner. Balanced Scorecard Strategy Map 2 Business Cycle Chart 3 Mission, Vision & Community Values Statements 5 Strategic Plan 5 Program Based Budget Summary 14 Vaquero Each departmental director and their staff teams are cross -trained and provide support or management of the service programs for both the Town of Westlake and the Town - owned charter school, Westlake Academy. These programs include facilities maintenance, development, human resources, IT support, financial services, communica- tions, and executive level management. The final results are a group of individuals who are actively engaged in creating a unique living experience through community events, educational opportunities and distinctive neighborhoods, which cannot be experienced anywhere else. Page 195 Approved — December 12, 2011 v u C v u X w v V 41 N 9c N u r_ m c L 0 V M CL E v E E 0 V b,0 c �L m U jt a t L fp J N V m d 4- 0 v tA tA 0 CL Ln0 J :E rc y � v 3 v w oocQLL. �- L J a H U IJJ Cy Q = V) z W V) W lJJ z O W d C = o O N LU r d w W s a 0 N o a WH LLz W LU > 0 H U LL. in a LU z zQ t/) O Page 196 'i' I - LU z ULA CL O W W 0 'i CL Q 0°10 > LL 7 N-' Oq CooLLE a a z �u oge 197 ' Town of Westlake Strategic Plan 'Westlake, a premier knowledge based community" 3 Village Circle, Suite 202, Westlake, Texas 76262 www.westlake-tx.org (817) 430-0941 Vision Statement Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. Vision Points 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. Leadership - A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. Caring Community- - Informed residents, small town charm and values, historical preservation. Community Values • Innovation Preservation of our natural beauty • Educational leaders • Family friendly and welcoming • Engaged citizens • Strong aesthetic standards • Transparent government • Fiscal responsibility 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. 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 PROUD TOBE with our vibrant culture and metropolitan location." ACertified Scenic City scenictexas.org Page 5 �': Page 6 "Good business leaders create a vision, articulate the vision, and relentlessly drive it to completion. " - Jack Wl'elcb Solana Office Complex Town of Westlake History and Demographics Approximately 992 residents currently occupy the Town of Westlake's 6.6 square miles, which is situated in the northern triangle of the Fort Worth — Dallas area. Originally settled in 1847, Westlake was incorporated in 1956. Today, the Town of Westlake is home to several neighborhoods, all of which share a commitment to excellence, but possess unique character and charm. All residents live in single-family homes and there is an award winning private golf course in town. The median age in Westlake is 38, and 51% of the residents are female. Some of the community's top employers are: Fidelity Investments, TD Auto Finance, and CoreLogic. Several companies have offices in Solana, a high-profile corporate campus near State Highway 114. Solana's Village Circle also provides a mix of retail spaces and restau- rants, plus offers the 296 -room Marriott Solana hotel. The sales tax rate in Westlake is 8.25%. Of the money collected, 6.25% is paid to the state of Texas,1 % to the Town, and the remaining 1 % to a local property tax relief fund and an economic development fund. Top Employers • Fidelity Investments • TD Auto Finance • CoreLogic • Wells Fargo Bank • McKesson Corporation • Deloitte University • Marriott — Solana Recent Infrastructure Re -investment & Development Projects • FM 1938 —Construction of major north/south thoroughfare • Deloitte University • Dove Road and Ottinger Road Improvements • Stagecoach Hills Waterline & Paving/Drainage Improvements • Aspen Lane, Mahotea Boone and Roanoke Road Paving/Drainage Improvements • SH 114/ SH 1170 Interchange Page 199 Page 7 Strategic Plan Overview During the 2011 strategic planning process, the Town Council and staff Leadership Team developed an overview of the strategic issues facing Westlake and developed action plans to monitor the success and completion of the projects. The vision and mission statements were updated to reflect the unique characteristics found within our community and the values which are important to our residents. The information is contained within five vision points which describe the areas that the Council and staff have determined are vital to maintaining our Town and providing services to enhance the lives of our residents and community. Vision Point One — Sense of Place Vision Point Two — Leadership Vision Point Three — Caring Community Vision Point Four—Exemplary Governance Vision Point Five — Service Excellence SENSE OF PLACE — The Town is home to several different types of community developments, which include residential, corporate and agricultural uses. Our largest residential neighborhood is home to a state of the art golf facility and many beautiful homes. Stagecoach Hills airpark is located along the historic stagecoach line which once transported passengers from Keller to Denton. Westlake residential neighborhoods include: • Aspen Lane • Glenwyck Farms • Mahotea Boone • Paigebrooke Farms • Stagecoach Hills • Terra Bella • Vaquero • Wyck Hill The Town is located along the Tarrant and Denton County borders and has portions of major State highways that surround its perimeter. We are an ideal location for businesses and have enjoyed a long history with our corporate campus developments. LEADERSHIP — Town leaders foresaw the need for a facility to educate the children of Westlake in a local setting and to provide the citizens with a civic campus and a sense of community. In 2003, the Town raised funds to build Westlake Academy, the only open -enrollment charter school owned and operated by a municipality in the State. The Academy of- fers the rigorous International Baccalaureate curriculum, for grades K-12, and all resi- dents are eligible to enroll their children. The Town also utilizes the "shared services' configuration to provide cutting edge service delivery to our residents and customers. The staff steps outside the traditional roles associated with each department in a municipality and works in a cross - functional manner between the Town and the Academy programs. This assists us in keeping our overhead to a minimum while serving our community. Page 200 Town of Westlake "Vision without action is a dream. Action without vision is simply passing the time. Action with vision is making a positive d�erence. " - Joel Barker Page 8 Town of Westlake Entrance to Glenwyck Farms CARING COMMUNITY — In an effort to foster citizen engagement, enhance our neighborhoods and increase participation in the community, many of the residents serve on various advisory boards that are committed to furthering the mission of the Town and ensuring Westlake is truly a unique community. The Westlake Historical Preservation Society was created to identify, preserve, and perpetuate the history of the Town and the Cross Timbers region. The Town is committed to protecting and improving the quality of life of Westlake residents, businesses and students by encouraging, inspiring, educating and entertaining artistic and creative endeavors. The Public Art Society of Westlake provides a wide range of professional and artistic presentations to foster the arts in the community and we are a co-sponsor of the Masterworks Concert Series with the Arts Council Northeast, who promote local artists through public concert events. Westlake also hosts several local events to foster community involvement through the annual Christmas Tree Lighting Event, Decoration Day, Vintage Car Show and Arbor Days. EXEMPLARY GOVERNANCE — Westlake is governed by a Mayor and Town Council with each of the five council members serving a two-year term. The Town Council also serves as the governing board for Westlake Academy, in the capacity of the Board of Trustees. The dual service configuration supports the cooperative delivery of program services for the Westlake community. The Town Council appoints the Town Manager, who also functions as the Academy's Superintendent, establishes town policies, and serves as the legislative body of the Town. In this capacity, the Council also approves the Town budget. The community is fortunate to have a dedicated group of residents who serve on our various boards and strive to promote the vision of the Town. SERVICE EXCELLENCE — The Town is staffed by a group of professionals who provide our residents and customers with the highest quality of public services in an efficient and responsive manner. The staff is involved in community gatherings, such as the neighborhood and parent meetings, concerts series, and various holiday based events —as well as striving to maintain personal relationships with our residential population to foster the Sense of Place and Caring Community found in Westlake. The Town's Leadership Team of department directors brings more than 150 years of collective municipal experience and knowledge to the Town along with a strong commitment to public service excellence. Page 201 Page 9 Town of Westlake Strategic Plan Strategic Issues VP The Towns strategic plan was developed according to a Strategic Issues format, which identified events through a SWOT (strengths, weaknesses, opportunities, and threats) analysis that would affect our community over the next 24 months. This type of issues - focused version of a traditional strategic plan is designed to allow the organization to k—i _, scan our environment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. The five component Westlake Academy issues we identified as strategic are: • Capital Investment • Fiscal Stewardship & Organizational Effectiveness • Human Resources (Employee Investment) • Comprehensive Planning and Management of Natural Resources • Public Safety and Emergency Preparedness Under each outcome strategy, staff has created action items necessary to support or achieve the desired result, which is linked to the Strategy Map. "Westlake has been a lot of things, but it has never been ordinary. " Fort Vortb Star Telegram CAPITAL INVESTMENT — Ensure the infrastructure and capital investments of the Town are maintained to sustain the community's quality of life. Outcome Strategies: 1. Existing Infrastructure Reinvestment (Current Assets) Leadership Team Member(s): Tom Brymer / Eddie Edwards / Jarrod Greenwood / Troy Meyer Staff Action 1.1: Facilities — Review of long-term rental options in comparison to building a permanent structure. Strategy Map: Financial Stewardship - Sustain Fiscal Health Completion Date: April, 2012 Staff Action 1.2: Cemetery — Analysis of long-term sustainability and marketing opportunities to increase the return on investment in the facility. Strategy Map: Financial Stewardship - Sustain Fiscal Health Completion Date: December, 2013 Staff Action 1.3: Completion of FM 1938 (Precinct Line Road) - Implementation of streetscaping projects. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: FM 1938 — Summer, 2012, Final Streetscaping — Fall, 2015 Staff Action 1.4: FM 114/170 Interchange — Partner with TxDoT, the Town of Trophy Club and City of Roanoke to complete the streetscaping project. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: Summer, 2013 Page 202 2011/12 Glenwyck Park Page 10 Strategic Issues, (cont.) CAPITAL INVESTMENT, (cont.) 2. Technology and Equipment Investment Leadership Team Member(s): Todd Wood / Richard Whitten / Eddie Edwards Staff Action 2.1: Capital Investment in Vehicles—Review of emergency and fleet maintenance needs and replacement opportunities. Strategy Map: Operational Processes - Preserve our Infrastructure to Meet the Life Expectancy of Our Assets Completion Date: October, 2012 Staff Action 2.2: Radio Accessibility of Emergency Services — Examine public safety communication interoperability of the Westlake emergency radio system. Strategy Map: Customer Focus -- Promote Community Health, Safety & Welfare Completion Date: June, 2012 Staff Action 2.3: Capital Investment in Technology—Review of current technology needs and forecast anticipated requirements for internal operations, citizen engagement and equipment replacement in the form of a technology plan. Strategy Map: Customer Focus - Promote Community Health, Safety & Welfare Completion Date: June, 2012 3. Policy and Cost Analysis Drive by Growth (Future Assets) Leadership Team Member(s): Tom Brymer / Debbie Piper/ Jarrod Greenwood / Eddie Edwards / Todd Wood / Troy Meyer Staff Action 3.1: Conduct feasibility study for water/sewer impact fees to offset the cost of infrastructure development. Strategy Map: Financial Stewardship - Sustain Fiscal Health Completion Date: June, 2012 Staff Action 3.2: Park Land and Trail Development — Work in partnership with surrounding municipalities to allow for connection of trails within Westlake to our neighboring communities. Strategy Map: Customer Focus - Promote Community Health, Safety & Welfare Completion Date: July, 2012 Staff Action 3.3: Evaluate Westlake Academy campus needs and expansion options. Strategy Map: Operational Processes - Optimize the Use of Our Shared Services Model Completion Date: August, 2012 4. Hwy 170/NTTA project Staff Action 4.1: Monitor the construction of the Hwy 170/NTTA project and provide Council with updates as to the impact on mobility in Westlake. Strategy Map: Customer Focus - Promote Community Health, Safety & Welfare Completion Date: Annual Report in November FISCAL STEWARDSHIP AND ORGANIZATIONAL EFFECTIVENESS — Maintain a balanced approach to revenue forecast- ing and expenditure allocation to ensure the necessary resources for long-term sustainability. Outcome Strategies: 5. Budget according to established service level provisions within departments. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 5.1: Prepare budgets in a fiscally responsible manner to maintain a low tax rate while serving our stakeholders. Strategy Map: Financial Stewardship - Prepare the Budget with Linkages to the Strategic Priorities Completion Date: Annually by October 1st. Page 203 Page 11 Strategic Issues, (cont.) FINANCIAL STEWARDSHIP AND ORGANIZATIONAL EFFECTIVENESS, (cont.) Town of Westlake Staff Action 5.2: Continually monitor our revenue income and expenditures as it relates to the program budgeting function to provide Council with comprehensive financial information. Strategy Map: Financial Stewardship- Sustain Financial Health Completion Date: Provided through Quarterly Financial Reports Staff Action 5.3: Examine Town's capacity for re -investment in technology, FFE, capital expenditures, etc. Strategy Map: Financial Stewardship - Identify and Allocate Funding for Maintenance of Public Assets Completion Date: June, 2012 Staff Action 5.4: Develop/propose a financial policy to provide for future replacement needs of technology, FFE, etc. Strategy Map: Financial Stewardship - Identify and Allocate Funding for Maintenance of Public Assets Completion Date: December, 2012 6. Maximize the service provision level to our customers through the use of the shared services model, public/private partnerships and the implementation of innovative inter -governmental agreements. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 6.1: Seek additional partnerships through either the use of Memorandums of Understanding (MOU's) or Interlocal Agreements (ILA's) relative to items such as economic development, tourism, cost reductions or enhanced efficiencies in service delivery mechanisms, infrastructure developments, mobility activities, etc. Strategy Map: Customer Focus -- Provide Outstanding Service and Program Delivery Completion Date: Provide annual December report to Council Staff Action 6.2: While maintaining high standards, continue to create incentive mechanisms that encourage businesses to locate in Westlake. These include flexible "development friendly" ordinances, adequate or expandable infrastructure, simplified fee structures and review procedures, and responsive staff support. Strategy Map: Customer Focus - Provide Outstanding Service and Program Delivery G1,CDACH AIRPAM as= im — All Entrance to Stagecoach Hills 7. Develop a communication and marketing plan that is comprehensive in nature to encourage dialogue with our residents and foster community involvement. Leadership Team Members(s): Ginger Awtry/ Tom Brymer/ Todd Wood Staff Action 7.1: Provide consistent and timely communication to promote resident and stakeholder engagement in the business, events and opportunities in Westlake. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: Provided through Monthly and Quarterly Publications Staff Action 7.2: Implement new website and monitor/update content material for relevancy and timeliness. Strategy Map: Customer Focus - Provide Excellent, Responsive Customer Service Completion Date: February, 2012 Page 204 2011/12 Strategic Issues, (cont.) Page 12 HUMAN RESOURCES (Employee Investment) —Provide the appropriate staffing levels at the Town as it relates to service delivery to our community. Outcome Strategies: 8. Include personnel estimates in the five-year financial forecast based on expansion of service provision to the Academy and community as directed by growth/demand for services. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 1.1: In conjunction with 5 -year financial forecast, department heads to identify staffing needs for all programs of service. Strategy Map: Operational Processes - Optimize the Use of Our Shared Services Model Completion Date: Annually by August, 2012 Staff Action 1.2: Continually evaluate ways to maximize our delivery methods by cross -training employees and identifying skill sets which would be beneficial across the organization (i.e., security at the Academy, event preparation and volunteering, communication efforts through dynamic publica- tions, IT services between the Academy/Town, etc.) Strategy Map: Operational Processes - Encourage Stakeholder and Staff Engagement Completion Date: Report in August, 2012 Spring Flowers r Terra Bella Entry COMPREHENSIVE PLANNING AND MANAGEMENT OF NATURAL RESOURCES — Ensure the standards are maintained and promoted in the management of growth and development within the Town to foster our unique character and rural -like atmosphere. Outcome Strategies: 9. Update Town's Comprehensive Plan Leadership Team Member(s): Troy Meyer/ Eddie Edwards/Jarrod Greenwood A. Review of Current Comprehensive Planning document. Staff Action 9.A.1: Review existing plan provisions and incorporate into new proposal; Examine the possibility of hiring an outside consultant to assist in the process. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: June, 2012 B. Review of Land Use Plan & Financial Analysis of Impact to Sustainability Staff Action 9.13.1: Understanding the impact of the current land use plan on future growth and financial sustainability of the Town's municipal services, fees, and infrastructure necessary to support future development. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: March, 2013 C. Supporting Master Plans • Thoroughfare Plan • Parks/Trail/Open Space • Utilities (Water, Sewer, Duct Bank) Staff Action 9.C.1: Draft supporting master plans according to concepts approved by Council in the Comprehensive Planning document. Strategy Map: Customer Focus - Enhance and Maintain a Sense of Community Completion Date: March, 2013 Page 205 2011/12 Strategic Issues, (cont.) COMPREHENSIVE PLANNING AND MANAGEMENT OF NATURAL RESOURCES, (Cont.) D. Review and recommend necessary changes to existing ordinances to align with Comprehensive Plan Strategy Map: Customer Focus - Provide Outstanding Service and Program Delivery Completion Date: March, 2013 10. Investigate and review of environmental preservation and conservation opportunities. Leadership Team Member(s): Jarrod Greenwood / Troy Meyer Staff Action 10.1: Provide Council with report outlining programs that would benefit the residents in their conservation efforts. Strategy Map: Customer Focus - Provide Outstanding Service and Program Delivery Completion Date: Report to Council in April, 2012 Page 13 Staff Action 10.2: Compare and contrast the programs relative to surrounding communities and the options found in the environmental conservation "best practices" of local government, to include an estimated cost of service provision. Strategy Map: Customer Focus - Provide Outstanding Service and Program Delivery Completion Date: April, 2013 PUBLIC SAFETY AND EMERGENCY PREPAREDNESS — Provide a safe community for our residents and business partners. Outcome Strategies: 11. Consistently seek an effective service delivery method to provide comprehensive police services for the Town residents. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 11.4: Monitor and report on the success of the current police services contract to ensure a safe environment for our residents. Strategy Map: Customer Focus - Provide Outstanding Service and Program Delivery Completion Date: Annual report in February/March 12. Plan and implement strategies to enhance the emergency preparedness of the residents and Town facilities. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 2.1: Evaluate on the local level that all departments have adequate training, equipment, and communication tools, to effectively address emergency situations as they arise. Strategy Map: Customer Focus - Promote Community Health, Safety and Welfare Completion Date: May, 2012 Staff Action 2.2: Review Town/Academy Standard Operating Procedures and emergency plans to maintain readiness. Strategy Map: Customer Focus - Promote Community Health, Safety and Welfare Completion Date: December, 2012 Staff Action 2.3: Inventory and identify availability of recommended Emergency Operations Center components. Strategy Map: Customer Focus - Promote Community Health, Safety and Welfare Completion Date: June, 2013 Page 206 2011/12 Page 14 Programs of Service The program budget allocations are used as a means of providing our residents and Council with the costs associated with each public service provision according to the specific program rather than the traditional line -item designations. It has been developed with a governance approach that places greater emphasis on the services and activities provided to our stakeholders rather than the individual departments that carry out the assigned work duties. The information listed below, groups the programs with the Vision Point most closely related to the service and identifies the department that is primarily responsible for ensuring the necessary work is completed to reach our goals and objectives. Spring Flowers The program budget may also be utilized as a tool for prioritizing services and making organizational funding decisions. Deciding how responsive, effective or efficient a particular service should be carries implicit costs. Westlake continues to deliver the highest quality services possible while maintaining relatively low provision costs. The professional staff at the Town of Westlake takes pride in the work they do and the services they offer to our residents. r - , Aii-I Terra Bella Entry Vision Point One — 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. Program Total Allocation Key Service Delivery Dem Comprehensive Planning & Economic Development $ 84,199 Dept. 11—Administration Dept. 12 Building Inspections $ 38,253 Dept. 12 — Planning & Dev. Code Enforcement $ 5,182 Dept. 12 — Planning & Dev. Transportation Services $ 39,646 Dept. 16 — Public Works Parks & Recreation Maintenance $ 106.031 Dept. 19 — Parks & Rec. TOTAL $ 273,311 $ 20,501 Dept. 18 Vision Point Two — Leadership: A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. Program Total Allocation Key Service Delivery Dept. Plan Review & Inspections $ 48,945 Dept. 12 — Planning & Dev. Gas Well Permit Administration $ 8,197 Dept. 12 — Planning & Dev. Planning & Zoning $ 39,252 Dept. 12 — Planning & Dev. Water Services $1,662,660 Dept. 16 — Public Works Sewer Services $ 444,994 Dept. 16 — Public Works Solid Waste & Recycling $ 33,533 Dept. 16 — Public Works Westlake Academy Foundation Support Services $ 20,501 Dept. 18 — Finance Academic Support Services $ 139,151 Dept. 21— Human Resources Texas Student Housing $ 28,767 Dept. 13 — Town Secretary TOTAL $2,426,000 Page 207 2011/12 Programs of Service, (cont.) Vision Point Three — Caring Community: Informed residents, small town charm and values, historical preservation. Program Total Allocation Key Service Delivery Dem Emergency Prevention $ 70,023 Dept. 14 — Fire & EMS Citizen Engagement & Communications $ 117,221 Dept. 22 — Communications TOTAL $ 187,244 Vision Point Four — Exemplary Governance: Town officials, both elected and appointed, exhibit respect, stewardship, vision, and transparency. Pro ram Municipal Governance Academic Governance Total Allocation Key Service Delivery Dept.. $ 183,083 $ 78.384 TOTAL $ 261,467 Dept. 11— Administration Dept. 11— Administration Vision Point Five — Service Excellence: Public service that is responsive and professional, while balancing efficiency, effectiveness, and financial stewardship. Program Total Allocation Key Service Delivery Dept. Financial Management $ 291,888 Dept. 11— Administration Municipal Administration $ 656,508 Dept. 11— Administration Academic Administration $ 274,369 Dept. 11— Administration Records Management $ 29,621 Dept. 13 — Town Secretary Emergency Operations $ 991,454 Dept. 14 — Fire & EMS Emergency Operations — Billing Services $ 12,000 Dept. 14 — Fire & EMS Emergency Operations — Support Services $ 30,504 Dept. 14 — Fire & EMS Police Services $ 775,326 Dept. 23 — Police Municipal Court—Case Processing $ 61,478 Dept. 15 — Municipal Court Municipal Court — Docketing $ 52,013 Dept. 15 — Municipal Court Warrant & Jail Services $ 96,525 Dept. 15 — Municipal Court Municipal Court - Collection Services $ 17,393 Dept. 15 — Municipal Court Judiciary & Administration $ 37,024 Dept. 15 — Municipal Court Utility Billing & Processing $ 67,419 Dept. 18 — Finance Municipal Accounting Services $ 202,190 Dept. 18 — Finance Human Resources —Administration $ 6,501 Dept. 21— Human Resources Human Resources —Total Compensation $ 2,000 Dept. 21— Human Resources Human Resources — Risk Management $ 4,210 Dept. 21— Human Resources Human Resources —Employment Services $ 3,166 Dept. 21— Human Resources Right -of -Way (ROW) Management $ 143,096 Dept. 16 — Public Works Election Administration $ 12,928 Dept. 13 —Town Secretary Municipal IT Operations $ 81,592 Dept. 20 — Information Tech. Municipal Network Operations $ 6,363 Dept. 20 — Information Tech. TOTAL $ 3,855,570 Page 208 Page 15 'We are limited, not by our abilities, but by our own vision.)) - Anonymous This page is intentionally blank