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Fiscal Year 2015-2016Town of Trophy Club, TX Annual Program of Services 2015-2016 Cover Photo: Joint Town Hall & Police Facility Concept Approved by Voters on November 3, 2015 02 i Trophy Club, TX | Annual Program of Services FY15-16 Budget i TABLE OF CONTENTS INTRODUCTION COUNCIL VOTE & TAX RATE ..............................................................................................................1 PREPARED BY ....................................................................................................................................2 KEY OFFICIALS ...................................................................................................................................3 BUDGET AWARD ...............................................................................................................................4 READER’S GUIDE ..............................................................................................................................5 BUDGET CALENDAR ........................................................................................................................11 MANAGER’S MESSAGE ...................................................................................................................12 STRATEGIC PLANNING STRATEGY MAP ...............................................................................................................................20 FIVE-YEAR FORECAST .....................................................................................................................21 FISCAL YEAR 2016 STRATEGIC PLAN ...............................................................................................22 TROPHY CLUB VISION 2030 ............................................................................................................23 ORGANIZATION ORGANIZATIONAL CHART ..............................................................................................................27 FULL-TIME EQUIVALENT SUMMARY ..............................................................................................28 TAX RATE TAX RATE CALCULATION .................................................................................................................30 TAXABLE VALUES, TAX RATES, AND TAX RATIOS ............................................................................31 BUDGET IN BRIEF BUDGET IN BRIEF ............................................................................................................................33 ALL FUNDS SUMMARIES ALL FUNDS SUMMARY FISCAL YEAR 2016 .....................................................................................42 ALL FUNDS SUMMARY (THREE-YEAR) ............................................................................................44 SUPPLEMENTAL ITEMS, CAPITAL & EQUIPMENT REPLACEMENT SUPPLEMENTAL ITEMS ...................................................................................................................47 CAPITAL & EQUIPMENT REPLACEMENT .........................................................................................48 THE GENERAL FUND GENERAL FUND ANALYSIS ..............................................................................................................50 MANAGER’S OFFICE ........................................................................................................................57 LEGAL ..............................................................................................................................................60 POLICE .............................................................................................................................................63 EMERGENCY MEDICAL SERVICES ...................................................................................................67 STREETS ...........................................................................................................................................71 PARKS ..............................................................................................................................................74 ii Trophy Club, TX | Annual Program of Services FY15-16 Budget ii TABLE OF CONTENTS MEDIANS .........................................................................................................................................78 RECREATION ...................................................................................................................................79 COMMUNITY EVENTS .....................................................................................................................83 COMMUNITY DEVELOPMENT ........................................................................................................84 PLANNING & ZONING .....................................................................................................................87 FINANCE ..........................................................................................................................................88 MUNICIPAL COURT .........................................................................................................................91 HUMAN RESOURCES .......................................................................................................................93 INFORMATION SERVICES ................................................................................................................97 FACILITY MAINTENANCE ..............................................................................................................100 OTHER MAJOR FUNDS CAPITAL PROJECTS FUND .............................................................................................................102 DEBT SERVICES FUND ...................................................................................................................104 SPECIAL REVENUE FUNDS COURT SECURITY FUND ................................................................................................................111 COURT TECHNOLOGY FUND .........................................................................................................112 CRIME CONTROL PREVENTION DISTRICT FUND ..........................................................................113 ECONOMIC DEVELOPMENT CORPORATION 4B FUND .................................................................115 HOTEL OCCUPANCY TAX FUND .....................................................................................................117 STREET MAINTENANCE SALES TAX FUND ....................................................................................119 TAX INCREMENT REINVESTMENT ZONE #1 FUND .......................................................................121 RECREATION PROGRAM FUND .....................................................................................................122 ANNIVERSARY FUND ....................................................................................................................123 PROPRIETARY FUNDS TROPHY CLUB PARK FUND ...........................................................................................................125 STORM DRAINAGE UTILITY FUND ................................................................................................128 CAPITAL IMPROVEMENT PROGRAM CAPITAL IMPROVEMENT PROGRAM ............................................................................................133 SUPPLEMENTAL INFORMATION ABOUT THE TOWN OF TROPHY CLUB ..........................................................................................140 PROCUREMENT POLICIES AND PROCEDURES .............................................................................142 INVESTMENT POLICY ....................................................................................................................160 CASH HANDLING POLICY ..............................................................................................................174 DEBT MANAGEMENT POLICIES AND PROCEDURES ....................................................................176 FUND BALANCE POLICY ................................................................................................................178 FLEET REPLACEMENT POLICY .......................................................................................................180 GLOSSARY .....................................................................................................................................183 ACRONYMS ...................................................................................................................................188 1 Trophy Club, TX | Annual Program of Services FY15-16 Budget 1 COUNCIL VOTE & TAX RATE Town Council Record Vote The Town Council voted on September 22, 2015 to adopt a tax rate that exceeded the effective rate, but was lower than the rollback rate. This is the fourth consecutive year that the Town Council has lowered the property tax rate. This budget will raise more total property taxes than last year’s budget by $842,694, which is a 12.7% increase from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $400,165. The above statement is provided in compliance with Truth in Taxation laws. Name Title For Against Nick Sanders Mayor  Greg Lamont Mayor Pro Tem  Tim Kurtz Council Member  Jim Parrow Council Member  Garrett Reed Council Member  Rhylan Rowe Council Member  Philip Shoffner Council Member  2014-2015 2015-2016 LAST YEAR CURRENT YEAR Maintenance & Operations (M&O)$0.380000/$100 $0.374000/$100 Interest & Sinking (I&S)$0.110000/$100 $0.110000/$100 Total Property Tax Rate $0.490000/$100 $0.484000/$100 Mandated Rate Calculations Rollback Tax Rate $0.499140/$100 $0.496987/$100 Effective Tax Rate $0.468137/$100 $0.462128/$100 Effective Maintenance and Operations Rate $0.360315/$100 $0.352128/$100 Interest & Sinking (I&S)$0.110000/$100 $0.110000/$100 Tax Supported Debt Service $1,573,662 $1,727,067 Municipal Tax Rate 2 Trophy Club, TX | Annual Program of Services FY15-16 Budget 2 PREPARED BY: STEPHEN SEIDEL TOWN MANAGER STEVEN GLICKMAN, CPA ASSISTANT TOWN MANAGER & CHIEF FINANCIAL OFFICER APRIL REILING PUBLIC INFORMATION OFFICER & MARKETING MANAGER AMBER KARKAUSKAS CONTROLLER APRIL EZELL CHIEF FINANCIAL ANALYST JOHN ZAGURSKI STRATEGIC SERVICES COORDINATOR ADOPTED ON SEPTEMBER 22, 2015 3 Trophy Club, TX | Annual Program of Services FY15-16 Budget 3 KEY OFFICIALS Town Council Pictured left to right: (seated) Council Member Jim Parrow, Mayor Nick Sanders, Mayor Pro Tem Greg Lamont, (standing) Council Member Garrett Reed, Council Member Rhylan Rowe, Council Member Tim Kurtz, and Council Member Philip Shoffner Appointed Officials Town Manager Stephen Seidel Town Attorney Patricia Adams Town Secretary Holly Fimbres Municipal Judge Honorable Mark Chambers Management Team Assistant Town Manager/Chief Financial Officer Steven Glickman, CPA Emergency Medical Services & Fire Chief Danny Thomas Human Resources Manager Carmel Fritz Information Systems Director Mike Pastor Infrastructure & Development Services Manager Pat Cooke Parks & Recreation Director Adam Adams Police Chief Patrick Arata Public Information Officer/Marketing Manager April Reiling 4 Trophy Club, TX | Annual Program of Services FY15-16 Budget 4 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Town of Trophy Club Texas For the Fiscal Year Beginning October 1, 2014 �/.� Executive Director THE GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA (GFOA) HAS PRESENTED A DISTINGUISHED BUDGET PRESENTATION AWARD TO THE TOWN OF TROPHY CLUB FOR THE ANNUAL BUDGET BEGINNING OCTOBER 01, 2014. 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 COMMUNICATIONS 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. 5 Trophy Club, TX | Annual Program of Services FY15-16 Budget 5 READER’S GUIDE The Reader’s Guide provides an overview of the Town of Trophy Club’s budget process and budget documents. The Town of Trophy Club has prepared a budget designed to meet the highest standards of performance in municipal budgeting. This document provides a summary of all budgeted funds, including both revenue and expenditure summaries. Major budget documents, the budget process, and the organization of the budget itself are described below. MAJOR BUDGET DOCUMENTS The Town of Trophy Club’s budget process includes the production of the following three key documents: the Manager’s Message, the Proposed Budget, and the Adopted Budget. It is important to understand the timing and purpose of these documents in order to fully understand the process itself. The Manager’s Message The Manager’s Message is submitted to Town Council in late July as a part of the proposed budget. This report summarizes and identifies key issues with regard to revenues, expenditures, and programming for the coming year. The Proposed Budget Pursuant to the Town Charter, the proposed budget must be submitted to Town Council by July 31, or at least sixty (60) days prior to the first day of the new fiscal year. This document represents a balanced version of departmental budget requests versus projected revenues. The proposed budget is a product of policy as expressed by the Town Council and is prepared by the Town Manager, Assistant Town Manager/CFO, and Finance Department. The Adopted Budget The adopted budget represents a modified version of the proposed budget after public hearings and Town Council review throughout the summer. Any changes deemed necessary by Town Council to programming levels or revenue projections are reflected in the adopted budget. Revisions may also be made to reflect any updates to budget information. THE BUDGET PROCESS The Town of Trophy Club uses a program-based budgeting process. Each budgeting unit or division is given a target or “baseline” funding level based upon the previous year’s funding level. With a few exceptions, no capital assets, wages and benefits, or one-time packages are included in baseline funding. Any funding request that represents new expenditures and programs, or that is in excess of baseline funding, must be submitted as a supplemental request. These supplemental requests may be new equipment, personnel, or service level increases. Revenue Projections The budgeted revenue projections for fiscal year 2016 began early in the 2015 fiscal year. The projections were calculated by the Finance Department with help from the departments that generate the revenue. Projections are based upon consultations with state and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions with directly associated staff members. Although revenue projections are prepared early in the budget process, the revenue analysis continues with departmental budget development and extends until the budget is adopted based upon any new information. Proposed Budget Analysis/Compilation The Finance Department reviews and compiles a preliminary draft of departmental budgets to present to the Budget Team, which is comprised of the Town Manager, Assistant Town Manager/ CFO, Controller, and Strategic Services Coordinator. During Budget Team discussions, any department director may be asked to answer questions from the entire group concerning their budget. Given revenue projections and baseline funding requirements, budget funding changes are made according to necessity and priority. A total recommended funding level is determined and weighed against available resources. Proposed Budget Development The Town Manager, no later than July 31 each year 6 Trophy Club, TX | Annual Program of Services FY15-16 Budget 6 (Charter Section 9.02), shall prepare and submit to Town Council the annual budget for the next fiscal year. The Town Manager’s proposed budget should assume, for each fund, operating revenues and reserves that are equal to, or exceed, operating expenditures. The Town Manager’s budget message summarizes funding requirements, major changes in programs, and alternatives for funding. Town Council Budget Workshop Sessions Budget work sessions are held with Town Council to review and discuss the proposed budget. Discussions and study may follow at subsequent work sessions up to budget adoption. Capital Improvement Program The Town Manager shall prepare and submit to Town Council a five (5) year capital improvement program no later than the first day of August each Year. The capital program shall be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition (Charter Section 9.08). Public Hearing/Budget Adoption A public hearing on the proposed budget and two public hearings on the tax rate (if required by Truth in Taxation laws) are held in August and September prior to final budget consideration. At the public hearings, citizens may make formal comments concerning the proposed budget. The public also has the opportunity to attend Town Council budget workshop sessions in August and September. Budget adoption occurs in September after Town Council deliberations and public hearings. The Town Council adopts a tax rate to support adopted funding levels. Pursuant to the Town Charter, the budget in place for the preceding year shall remain in place on a month-to-month basis until such time as a new budget has been adopted if no Town Council action is taken before the end of the fiscal year, September 30. Compilation of Adopted Budget/ Budget Maintenance The adopted budget is compiled and published during the first months of the new fiscal year. The adopted budget in the form of an amended proposed budget is available for public inspection in October. General Ledger accounts are prepared for the new fiscal year prior to October 1. Budget maintenance is a year-round activity of divisions/departments and Finance Department staff. Other spending control mechanisms include monthly review of expenditures by the Finance Department. During the budget process departments make revenue and expenditure estimates for the current year with the assistance of the Budget Team. Finally, program goals, objectives, and measures are evaluated during budget implementation to determine the effectiveness of program activities and levels of appropriate funding for subsequent years. FINANCIAL STRUCTURE The financial structure of the budget is organized by funds. A fund is generally defined as a fiscal and accounting entity which has its own self- balancing set of accounts for recording cash and other financial resources, as well as any liabilities or residual equities or balances. Normally, funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations; however, when appropriate, funds are comprised of departments. BUDGETED FUNDS The Town employs two types of funds: Governmental and Proprietary. The Town also has two component-units: the EDC 4B Fund and the TIRZ #1 Fund. 7 Trophy Club, TX | Annual Program of Services FY15-16 Budget 7 GOVERNMENTAL FUNDS These funds are accounted for on a modified accrual basis. The specific funds which make up the Governmental Fund type are as follows: General Fund, Debt Service Fund, Capital Projects Fund, Grants Fund, and Special Revenue Funds which include: Court Security Fund, CCPD Fund, Anniversary Fund, Street Maintenance Sales Tax Fund, Hotel Occupancy Tax Fund, Court Technology Fund, and Recreation Program Fund. Each of the above-mentioned funds operates separately and independently from one another; therefore, they are budgeted separately and include separate financial statements. Each fund represents a specific function and maintains individual objectives. PROPRIETARY FUNDS These funds are used to account for “business- type” activities that are financed by the revenues generated from these activities. The Town of Trophy Club has two of these funds: the Storm Drain Utility Fund and the Trophy Club Park Fund. Proprietary Funds are accounted for on the full accrual basis. COMPONENT UNITS These units are legally separate organizations for which the elected officials of the primary government are financially accountable. The Town of Trophy Club has two discretely presented component-units: the Economic Development Corporation 4B (EDC 4B) and the Tax Increment Reinvestment Zone #1 (TIRZ #1). The Town of Trophy Club’s primary government is financially accountable for the Trophy Club the EDC 4B and the TIRZ #1. The Town presents the financial statements of the EDC 4B and TIRZ #1 discretely. Discrete presentation entails reporting component unit financial data in one or more columns separate from the financial data of the primary government. FUND DESCRIPTIONS MAJOR FUNDS A major fund must make up at least 10% of the total expenditures, revenue, assets, or liabilities of that fund type and 5% of the total for all fund types. A government may also report a fund as major if it is of particular importance or interest to users. CHART OF GOVERNMENTAL FUNDS CHART OF PROPRIETARY FUNDS CHART OF COMPONENT UNITS Governmental Funds Proprietary Funds Component Units Capital Projects Fund Grants Fund Storm Drainage Utility Fund EDC 4B Fund General Fund Debt Services Fund Special Revenue Funds Trophy Club Park Fund TIRZ #1 Fund Court Security Fund Anniversary Fund CCPD Fund Street Maintenance Fund Hotel Occupancy Fund Court Technology Fund Recreation Program Fund General Fund The primary operating fund of the Town, the General Fund contains the control and fiscal accounting for the Town’s general service operations such as administration, public safety, parks, etc. The General Fund’s major revenue sources are ad valorem taxes, sales taxes, licenses and permits, and franchise fees. Capital Projects Fund This fund is utilized for the acquisition and construction of major capital assets. The Capital Projects Fund was created to account for proceeds from the sale of general obligation bonds, certificates of obligation, tax or revenue notes, or operating funds set aside or reserved for such 8 Trophy Club, TX | Annual Program of Services FY15-16 Budget 8 projects to be used for the costs associated with the acquisition or construction of major capital assets. Debt Service Fund This fund is used to record and control the accumulation of resources for payment of general long-term debt principal and interest. The Town issues debt to acquire or construct capital assets, such as roads or parks for the general benefit of Trophy Club citizens. Resources include an applicable portion of the ad valorem tax levy and related interest income usable from debt service. Grants Fund This fund accounts for any receipts and uses of grants the Town may receive throughout the fiscal year. NON-MAJOR FUNDS Special Revenue Funds are used to account for the receipt of specific revenue sources that are restricted for expenditures for a specified purpose. Included in the special revenue funds are: Hotel Occupancy Fund Funds from hotel occupancy taxes can be used to promote tourism and the hotel industry in Trophy Club. Street Maintenance Fund A 0.25% voter approved sales tax for which funds may be used to maintain the Town’s existing street system infrastructure. Crime Control Prevention District (CCPD) Fund A 0.25% voter approved sales tax for which funds may be used to finance activities related to crime control and prevention including, but not limited to, equipment, training, and programs. Court Security Fund This fund is used to provide security for the Trophy Club Municipal Court through a $3 fee per violation. Court Technology Fund This fund is used to purchase technology related items for the Trophy Club Municipal Court through a $4 fee per violation. Anniversary Fund This fund is used to account for donations, sponsorships, and expenditures related to the Town’s Anniversary festivities. Recreation Program Fund This fund was created to account for the revenues and expenditures associated with recreational programs within the Town of Trophy Club. Expenditures are expected to be matched with program revenues. PROPRIETARY FUNDS Trophy Club Park Fund Funded by user fees, this fund accounts for revenue and expenses associated with servicing, maintaining, and improving parkland the Town leases from the Army Corps of Engineers adjacent to Lake Grapevine. Storm Drainage Utility Fund Funded by a drainage fee collected from residents and businesses each month, this fund accounts for revenues and expenses associated with construction and maintenance of the Town’s storm drainage system. COMPONENT UNITS EDC 4B Fund Funded by a 0.50% voter approved sales tax, the Trophy Club Economic Development Corporation 4B is a Discretely Presented Component Unit that may be used to fund economic and community development. TIRZ #1 Fund This fund was created to aid development of the Trophy Wood District through the contribution of 60% of the Town’s real property increment, and 25% of the Towns $0.01 general fund sales tax generated within the zone. Tarrant county also contributes 60% of the county’s real property increment. BASIS OF BUDGETING AND ACCOUNTING The budgetary and accounting policies of the Town, to include all documents prepared, conform to generally accepted accounting principles (GAAP). 9 Trophy Club, TX | Annual Program of Services FY15-16 Budget 9 The General, Debt Service, Capital Projects, and Special Revenue Funds, except for discretely presented component-units, are prepared on the modified accrual basis of accounting. Under this basis of accounting, revenues are recognized when they become both “measurable” and “available” to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred, except for: (1) inventories of material and supplies, which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items, which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts that need not be recognized in the current period; (4) interest on special assessment indebtedness, which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long-term debts that are generally recognized when due. Proprietary Funds, which include the Drainage Utility Fund and the Trophy Club Park Fund, and discretely presented component units, which include the EDC 4B Fund and the TIRZ #1 Fund, are prepared using the accrual basis of accounting. In accrual accounting, revenues are recognized when earned, regardless of when cash is received. Likewise, expenses are also recognized when incurred, not considering the actual cash flow. The measurement is thus focused on the flow of economic resources. ORGANIZATIONAL RELATIONSHIP A department is a major administrative segment of the Town, which indicates overall management responsibility for an operation or a group of related operations within a functional area (e.g., Police Department, Fire Department, Parks Department, and Recreation Department). The smallest organizational unit budgeted is the program. The program indicates responsibility for one functional area, and in many cases these functional areas are put together to demonstrate a broader scope of responsibility. When this is done, the programs are combined to make up a department. For example, the Parks Department is comprised of Parks General, Independence Park, Harmony Park, Lakeview Soccer Fields, and Medians & Common Areas. BUDGET ADMINISTRATION AND DEVELOPMENT The Town of Trophy Club’s policies set forth the basic framework for the fiscal management of the Town. These policies were developed within the parameters established by applicable provisions of the Texas Local Government Code and the Town of Trophy Club Charter. The policies are intended to assist the Town Council and Town Staff in evaluating current activities and proposals for future programs. BUDGET PERIOD Fiscal Year The fiscal year of the Town of Trophy Club “shall begin on the first (1st) day of each October and end on the last (30th) day of September of each calendar year. Such fiscal year shall also constitute the budget and accounting year” (Charter Section 9.01). BUDGET DEVELOPMENT Submission The Town Manager shall submit to the Council a proposed budget, accompanying message, and 5-year Capital Improvement Program before the first day of August of each year. The Council shall review the proposed budget and revise it as deemed appropriate prior to general circulation for public hearing (Charter Section 9.04). Public Hearing on Budget The Council shall hold a public hearing on the budget and shall provide adequate public notice of such hearing, including publication of notice as required by State law. Truth in Taxation Budget development procedures will be in conformance with the State law outlined in the Truth in Taxation process. In the event of a tax increase, notices will be provided and required hearing(s) held in conformance to State law. 10 Trophy Club, TX | Annual Program of Services FY15-16 Budget 10 Adoption The Council, by majority vote, shall adopt the budget by ordinance no later than the 30th day of September. Adoption of the budget shall constitute appropriations of the amount specified as expenditures from the fund indicated. If the Council fails to adopt a budget by the beginning of the fiscal year, the budget currently in place for the preceding year shall remain in place on a month- to-month basis until such time as a new budget has been adopted. BUDGET ADMINISTRATION Budget Amendment The Council, by ordinance, may make supplemental appropriations for the year. To address a public emergency affecting life, health, property, or public peace, the Council may also make emergency appropriations. Such appropriations may be made by emergency ordinance. The level of budgetary control for amendments must be, at a minimum, made on a fund level. Transfers At any time during or before the fiscal year, the Council may, by resolution, transfer part or all of the unencumbered appropriation balance from one department, fund, service, strategy or organizational unit to the appropriation for other departments or organizational units or a new appropriation. The Town Manager may transfer funds among programs within a department, fund, service, strategy, or organizational unit and shall report such transfers to the Council in writing in a timely manner. Public Records The budget, budget message, and all supporting schedules shall be in a public record in the office of the Town Secretary and shall be available to the public for inspection upon request. Balance Budget Required The Town of Trophy Club will develop balanced budgets in which current resources (current revenues plus fund balance) will equal or exceed current expenditures. Funding of Current Expenditures with Current Resources The budget will assure that current expenditures are funded with current resources. Current operating expenditures will not be capitalized or funded through the use of long-term debt. REVENUE POLICIES Revenue Goal The Town will attempt to maintain a diversified and stable revenue stream to shelter it from short-run fluctuations in any one revenue source. Development of Revenue Projection The Town will estimate its annual revenues using an objective analytical process. The Town will project revenues for the next two years. Each existing and potential revenue source will be examined annually. Fund Balance Policy The Town implemented a fund balance policy, in conformity with GASB 54, to establish a key element of the financial stability by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the Town maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the Town’s general operations. The Town currently has an estimated FY15 ending fund balance of $3,662,226 or 46% of General Fund expenditures. The FY16 budget estimates an ending fund balance of $3,745,717 or 43% of General Fund expenditures. The Town goal is to maintain an unassigned fund balance of at least 30% of General Fund expenditures, which would equal $2,408,136 in FY15 and $2,596,893 in FY16. Town policy requires a minimum unassigned fund balance of 15% of General Fund expenditures, which would equal $1,204,068 in FY15 and $1,298,447 in FY16. 11 Trophy Club, TX | Annual Program of Services FY15-16 Budget 11 BUDGET CALENDAR Fiscal Year 2016 January 23-24 Friday & Saturday • Town Council and Management Retreat/Strategic Planning April 10 Friday • Denton Central Appraisal District begins sending out weekly preliminary appraisal totals April 27 Monday • Tarrant Appraisal District submits 1st preliminary appraisal totals April 28 Tuesday • Workshop with Council over FY16 tax rate and revenue diversification May 12 Tuesday • Mid-year review presentation to Council May 18 - 29 • Departmental budget meetings May 26 Tuesday • Workshop with Council to discuss FY16 compensation June 9 Tuesday • Workshop with Council to discuss General Fund revenues July 14 Tuesday • Workshop with Council to discuss General Fund expenditures & supplemental items • Receive CCPD Budget July 24 Friday • Certified Appraisal Roll due from Denton & Tarrant Appraisal Districts July 28 Tuesday • Workshop with Council to discuss all other funds July 31 Friday • Hand deliver hard copy Proposed Budget to Council members • Publish Notice of Public Hearing on CCPD Budget August 3 Monday • Denton County Tax Assessor/Collector provides Effective and Rollback Tax Rates August 11 Tuesday • Workshop with Council on the Proposed Budget • Public Hearing on CCPD Budget • Submit Effective & Rollback Rate calculations to Council • Vote to propose tax rate (if over effective rate) • Set Public Hearings for August 25th and September 8th (if applicable) August 14 Friday • Publish Notice of Public Hearing on the Budget • Publish Notice of Public Hearing Proposed Tax Rate (if applicable) • Publish Notice of Public Hearing on PID Service Assessment August 25 Tuesday • Workshop with Council on the Proposed Budget • First Public Hearing on Tax Rate (if applicable) • CCPD Budget Adoption September 8 Tuesday • Second Public Hearing on Tax Rate (if applicable) • Public Hearing on Budget • Resolution accepting proposed SAP & set Public Hearing date • Joint meeting with the CCPD (if applicable) September 22 Tuesday • Budget adoption • Tax Rate adoption • Approve Tax Roll • Public Hearing on PID Service Assessment • Vote to ratify Property Tax revenue • Adopt PID Assessment Rate October 1 Thursday • Fiscal Year 2015-2016 begins 12 Trophy Club, TX | Annual Program of Services FY15-16 Budget 12 Trophy Club Town Council 100 Municipal Drive Trophy Club, TX 76262 Dear Town Council: In accordance with the Trophy Club Town Charter and the State of Texas Local Government Code, the adopted Fiscal Year 2016 Budget for the fiscal year beginning October 1, 2015 and ending September 30, 2016 is presented along with an attached five-year Capital Improvement Program. In financial terms, the adopted FY16 Budget presents the plan for accomplishment of municipal objectives during the forthcoming fiscal year. Preparation of this document requires a comparison of the anticipated revenues with adopted programs and priorities that are based on Town Council priorities, service demands or prior project commitments. While the adopted budget does not fund all departmental requests, it meets Town Council goals expressed during the planning process. The adopted budget has been formulated by reflecting the core values of: • Providing exceptional governmental services • Remaining fiscally sound • Effectively allocating resources to meet citizen needs • Valuing our employees The FY16 Budget is a responsible financial plan developed utilizing advanced planning methods and Governmental Accounting Standards Board (GASB 34) provisions and complying with the adopted Fund Balance Policy (GASB 54). Prudent financial and operational philosophies have guided budget development. Every budget seeks to allocate scarce resources, and there will always be more needs than available funds. The FY16 Budget highlights include: Personnel • New Police Officer • Sergeant promotion for an existing Police Officer • New Firefighter/Paramedic (50% funded by Trophy Club MUD #1) • $135,000 for merit increases & Police salary true-up • Intern/part-time Network Specialist Equipment Replacement & Capital • Bleacher replacement program for Harmony Park • Replacement grandstand lawnmower for Parks • Water slide run and barrier reconfiguration at pool • Spray pad feature replacement at pool • Small pool resurface 13 Trophy Club, TX | Annual Program of Services FY15-16 Budget 13 • Small pool filter replacement • Various IT related purchases and upgrades • Stryker Power Cot for EMS (replaces manual cot) • Replacement Police Vehicle • Toddler playground at Harmony Park • Shade structure for toddler playground at Harmony Park • Furniture, Fixtures, and Equipment funded by the CCPD for the Police in the new facility Capital Improvement Program • Capital Improvement Projects totaling $9,050,531 including a proposed joint Town Hall and Police Facility FY16 BUDGET DEVELOPMENT CONSIDERATIONS The adopted budget includes total revenues of $12,410,329 and expenditures of $20,844,215. Expenditures exceed revenues by $8,433,886 due to $8,993,531 of improvements in the Capital Projects Fund and Storm Drainage Fund (for which debt was issued in prior periods or is anticipated to be issued in the budget year). Excluding the capital improvements, the overall budget contains a surplus (revenues over expenditures) of $559,645. The fund balance of the General Fund is anticipated to increase $83,491 despite a transfer of $385,000 to fund capital projects. This section discusses, by fund, the major issues addressed in the FY16 budget. GENERAL FUND Revenues – Each revenue source is carefully evaluated during the budget process to ensure adequate levels of funding. As the Town reaches substantial build out, with accompanying smaller increases in assessed value and sharp decreases in licensing and permitting revenue, it endeavors to diversify its revenue sources to reduce reliance on property taxes. Identified diversification areas include maximization of sales tax revenue along the Highway 114 corridor and accompanying increased franchise fee collections that are included with substantial build-out. • Property Tax – The largest revenue source in the General Fund is the ad valorem tax. A tax rate of 0.484/$100 was adopted, a decrease from the previous year’s tax rate of 0.49/$100. Property tax revenue in FY16 is expected to increase by $581,246 over the FY15 estimate. Of this amount, $309,218 can be attributed to over $82M in new properties added to the tax roll in FY16. Strong growth is expected over the next fiscal year, and is a major consideration when projecting future property tax revenues. ◊ Property Tax Rate - The FY16 Budget is based on a property tax rate of $0.484 per $100 assessed valuation, a $0.006 decrease from FY15. A Council and staff goal was to propose a tax rate below the FY15 tax rate. The adopted tax rate includes $0.11 to service debt and $0.374 to fund maintenance and operations. ◊ Property Tax Base - The Certified 2015 Appraisal Rolls show an increase of 13.1% over the 2014 certified values. The majority of the increase, 6.7%, is attributed to new properties added to the tax roll this year, while existing properties increased by 6.4%. The average appraised home value is $352,731. FY16 projects 100 homes to be built which will continue to increase the total assessed value of Trophy Club, and thus increase total revenues derived from property tax at the adopted tax rate. 14 Trophy Club, TX | Annual Program of Services FY15-16 Budget 14 ◊ Franchise Fees – The second largest revenue source in the General Fund is Franchise Fees. The fees are projected based on the past and current trends plus new development. Franchise Fees are projected to increase 13.40% in FY16 over the FY15 estimate, and should continue to increase as the Town approaches build out. On September 8, 2015, the Town Council took action to increase the solid waste Franchise Fees from 6% to 12% and on September 22, 2015 they took action to increase the gas franchise from 4% to 5%. This was done to diversify the Town’s revenue stream. It also allowed the Council to reduce property taxes by $0.006/$100 and save the average residential taxpayer approximately $7 per year. ◊ Sales Tax – Sales tax receipts are the third largest revenue source in the General Fund. The FY16 budget projects a 4.53% growth in receipts over the FY15 estimate. Included in the sales tax are general sales taxes and mixed beverage taxes. Sales tax revenue is wholly dependent on the local economic conditions and can fluctuate. The Town has a potential for major commercial development along the corridor of Highway 114 that could help diversify the Town’s revenue sources in future years. Two destination restaurants, Meat U Anywhere and Bread Winners & Quarter Bar are anticipated to be operational beginning sometime in FY16, with more expected in FY17. Additionally, the Economic Development Corporation 4B (EDC 4B) purchased over seven acres of land in the Trophy Wood District in early FY16 to control the future development of the area with hopes of enticing future commercial development to increase sales tax in the future. ◊ Licenses and Permits – Licenses and Permits are the fourth largest revenue source for the General Fund. This revenue source grouping contains building permits and miscellaneous permits. This revenue source is expected to decrease 22.82% from the FY15 estimate due to the Town approaching substantial build-out. The heavy reduction in revenue derived from licensing and permits is considered when looking to the future. Increased property valuation from new properties on future tax rolls will make up for the substantial loss of this revenue source along with increased collections of sales taxes and Franchise Fees. ◊ Fines and Fees – Fines and Fees represent revenue generated from the municipal court, development related fees, and recreation based fees. This revenue source is expected to decrease 19.76% compared to the FY15 estimate, due to new developments approaching build-out which decreases the number of development related fees collected, and further strengthens the Town’s need to diversify its revenue sources. Strategic Management Planning – The Town evaluates all current and future spending and revenue projections in the context of the Town’s Five-Year Forecast. The Five-Year Forecast provides a responsible estimate of the Town’s future financial position based on past and future trend analysis, expectations, and the regional economy. Municipal Utility District Services Contract – A significant change to previous years is the relationship between the Town and Utility District. The Town is in the process of negotiating a new contract with the MUD. In that contract no exchange of money is proposed, only an exchange of services which are rendered to the other entity. Personnel – As municipal governments are primarily service-oriented they are extremely reliant on their employees. The Town of Trophy Club is no different, for a department to add positions, a need must first exist. Citizens and Council have come to expect the highest level of service at the lowest possible cost, all while being competitive in the marketplace. The adopted budget exemplifies this exact sentiment. 15 Trophy Club, TX | Annual Program of Services FY15-16 Budget 15 • Compensation - The FY16 Budget includes a point/performance based merit distribution of up to 2% per employee/evaluation on October 1st and April 1st, an annual stipend of $750 per employee, and Police Salary True-Up with base pay increases of up to 4% increase or adjustment to range minimum on October 1st (would not be eligible for additional 2% on October 1st). The overall effort to bring employees salaries to competitive rates will continue, and the Town’s strategy will be reviewed annually to determine the extent of future endeavors. • Health Insurance - The health insurance program in FY16 continues with the Texas Municipal League Intergovernmental Employee Benefits Pool (TML IEBP). The Town offers three plans: a PPO, an HRA, and an HSA; rates for the plans increased 3%, 15%, and 3%, respectively. TML IEBP is a non-profit health provider centered on providing full service health protection of political subdivisions of Texas. • Personnel Changes – Personnel changes are considered on an as needed basis after a demonstrated need exists. As the Town grows, service level demand also grows. In order to meet increasing service demand the FY16 budget includes the following personnel changes: ◊ New Police Officer ◊ Sergeant promotion for an existing Police Officer ◊ New Firefighter/Paramedic (50% funded by Trophy Club MUD #1) ◊ Intern/Part-Time Network Specialist ◊ Crossing guard Full Time Equivalents (FTE’s) changed from 3.60 FTE’s to 3.15 FTE’s based on updated work schedules Services and Supplies – One area where fiscal responsibility can be applied most effectively is in the services and supplies the Town purchases. The services and supplies budget increased 12.97% from the FY15 estimate with 2.89% of that increase coming from supplemental items. Any new programs that require the purchase of services or supplies will be carefully examined in the context of any potential revenue they generate and benefit they bring to Town citizens. Equipment Replacement – The Town funds equipment replacement by setting aside an amount each year equal to each department’s equipment depreciation. Expenditures for FY16 include the following items: Police • Replacement Police Patrol Vehicle Parks • Replacement grandstand lawnmower • Bleacher replacement program for Harmony Park Recreation • Slide run and barrier reconfiguration for pool • Spray pad feature replacement for pool • Small pool resurface • Small pool filter replacement Information Technology • Various IT related purchases and upgrades 16 Trophy Club, TX | Annual Program of Services FY15-16 Budget 16 Emergency Medical Service • Stryker Power Cot for EMS (replaces manual cot) Fund Balance – The Town has a Fund Balance Policy with a goal of 30% of the Town’s annual General Fund expenditures being classified as unassigned fund balance. An unassigned fund balance of less than 15% is a cause for concern unless it is planned or deliberate. The Town’s budgeted fund balance in the General Fund is projected at 43% of expenditures, which is well above the Town’s policy. The Town endeavors to maintain its current strong fund balance levels, but will consider use of fund balance to fund major capital projects and/or acquisitions while maintaining an ending fund balance within the Town’s policy. Capital Improvement Program – The five-year Capital Improvement Program includes scheduled construction of major capital improvements such as streets, facilities, parks, etc. These improvements are generally funded by debt proceeds, but may be funded by existing fund balances or grants when available. In FY13 the Town issued $3M in Certificates of Obligation (CO) with $1.3M to fund identified streets projects and $1.7M to fund identified drainage improvements. In FY14 the Town issued $2.5M in Certificates of Obligation to fund the purchase of land for a joint Town Hall and Police Facility. Additionally, in FY14 a $600,000 Tax Note was issued to fund various streets projects and park improvements. When considering capital improvements the Town considers federal and state mandates, the effect on Town citizens, and the effect a project will have on future operating budgets. The following projects are included in the Capital Improvement Program for FY16: • Street and drainage improvements to Pin Oak Court • Street improvements to Timberline Court • Street and drainage improvements to Pebble Beach Drive • Construction of a new joint Town Hall and Police Station • Broadway Creek improvements and amenity lake slopes • Cypress Court drainage inlets • Construction of practice soccer fields at Lakeview Elementary • Street and drainage improvements to Trophy Club Dr. (roundabout to Meadow Creek) • Park Monument Signs • Harmony Park toddler playground and shade structure OTHER FUNDS Debt Service Fund – In FY14 the Town issued a $2.5M CO for the purchase of land for a joint Town Hall and Police Station. Also in FY14, a $600,000 Tax Note was issued to fund street and parks projects. Additionally, in FY14 the Town adopted a debt management policy and had its bond rating upgraded from AA to AA+ by Standard and Poor’s. In FY 2015 the Town refunded the 2007 GO bonds and realized $218,000 in interest savings. The adopted I&S tax rate for FY16 is $0.11 per $100 of valuation, which is the same I&S tax rate adopted in FY 2015. The budget includes total debt issuances of $9.75M in FY16 to fund a joint Town Hall and Police Facility and street and drainage improvements. Economic Development Fund 4B – In FY13 the Town of Trophy Club dissolved the Economic Development Fund 4A. The 0.50% 4A sales tax was reallocated between the Economic Development Fund 4B and a new Crime Control Prevention District. This essentially doubled the revenues for the 4B. Both 4A and 4B combined to service the 2002-A GO Bonds, which were to be defeased prior to dissolving the 4A. Due to a lack of fund balance in 4B the Town defeased the debt with $660,000 of fund balance from the General Fund. To repay this debt the 4B Fund had an interlocal agreement with the Town to pay $54,964 every year through FY28 to the General Fund. However, those payments were eliminated by Council beginning 17 Trophy Club, TX | Annual Program of Services FY15-16 Budget 17 in FY16 due to the EDC 4B issuing $2.65M in debt to finance the purchase two parcels of land for the purpose of economic development that is expected to generate sales tax to further diversify the Town’s revenue. Crime Control and Prevention District (CCPD) - The CCPD fund receives its revenues from a 0.25% sales tax. This fund is to help the police department with capital replacement costs, supplies, and activities related to crime control and prevention. The FY16 CCPD budget contains $6,400 for uniforms, $51,000 for small equipment such as Tasers, duty weapons, protective clothing, rapid response equipment, etc., and $125,000 to purchase furniture, fixtures, and equipment for the new Police building. Starting in FY17 the CCPD will begin to service $2,000,000 of debt issued for the joint Town Hall and Police Facility. Street Maintenance Sales Tax Fund - In May 2014, citizens reauthorized a 0.25% Street Maintenance Sales Tax. The sales tax is needed to augment the funding provided in the General Fund for the maintenance of Town streets. State law requires that the tax be reauthorized by the citizens after the initial four years. In order for the tax to not lapse, the Council held a reauthorization election on May 8, 2010 in which voters approved the reauthorization of the sales tax. As of FY10, the Street Maintenance sales tax receipts and expenditures were reported as a separate fund. The FY16 budget projects a 4.51% growth in receipts along with $100,000 in street maintenance projects and $24,940 in vehicle maintenance, signs and markings, fuel and small tools. This fund also finances the personnel cost of 70% of a streets employee. Storm Drainage Utility Fund - The Town of Trophy Club charges a fee to Trophy Club property owners to cover the costs of providing the infrastructure and facilities that permit the safe drainage of storm water, the prevention of surface water stagnation, and the prevention of pollution arising from nonpoint runoff. The Town engaged the services of Freese and Nichols, Inc. (FNI) to conduct a master drainage study in order to better assess current infrastructure and future needs. Phase I of this study was completed and identified five major areas of concern related to storm drainage. The Town also engaged FNI to complete a financial analysis to correctly identify revenue options, appropriate expenses, and residential/commercial storm drainage fees necessary to accomplish these storm water improvement projects. Based on those recommendations, the fee for residential home owners increased from $3 to $6 in FY13, and commercial entities were increased based on an Equivalent Residential Unit (ERU) system. The Town has commenced Phase I implementation and issued a $1.7 million Certificate of Obligation backed by storm water fee revenue to address three areas identified by FNI. Additionally, the Town has retained FNI to initiate Phase II which will include a regional analysis on water drainage and the impact on Trophy Club. The Town is looking to partner with surrounding municipalities, counties, and a developer as well as seeking grant funding. The FY16 Budget for the Storm Drainage Utility Fund includes funding for 25% of the personnel cost of the Infrastructure and Development Services Manager, mosquito abatement, debt service related to the 2007 GO, 2013 CO, and 2015 GO Refunding, and drainage capital projects totaling $242,627. FUTURE CHALLENGES AND OPPORTUNITIES With regards to the long and short term, the most significant challenge Trophy Club faces is heavy reliance on property tax revenue. In FY 2015, 60% of the General Fund revenue for the Town was property tax revenue; by FY 2020 it is projected to be up to 69%. The Town endeavors to maintain a mix of revenue where property tax does not exceed 65% of total revenue generated in the General Fund. The Town is only a few years away from build out, which has already decreased permitting revenue and has pushed the Town into an even deeper reliance on property tax revenue. 18 Trophy Club, TX | Annual Program of Services FY15-16 Budget 18 The administration has focused on a multi-faceted solution to address the revenue issue. In September 2015, the Council increased Franchise Fees associated with solid waste and natural gas while decreasing the property tax rate. On the Economic Development front, the Town staff has been working with Council and the EDC4B board to recruit and develop new opportunities for destination restaurants that will increase the Town’s sales tax revenues. The first steps were taken by creating a Tax Increment Reinvestment Zone #1 (TIRZ#1) in the Trophy Wood District in FY13. Next, the Town entered into a public- private partnership with Old Town Development, to bring about high-end, destination eateries within TIRZ#1. The first of these restaurants to sign a lease is Bread Winners & Quarter Bar. The eatery/bar will feature classical architectural touches, a courtyard feel, a rooftop space and old-world charm. The restaurant will not only be a strong addition to the region but a great place for our residents to eat, drink, and mingle. In the coming months the Town will be announcing the other slated restaurants and plans for the area. Additionally, acclaimed BBQ restaurant Meat U Anywhere has purchased land on the corner of Trophy Club Drive and State Highway 114 to begin construction of a new restaurant. This is a regionally and state recognized, award-winning BBQ destination that will be a great place to eat for Trophy Club residents and will draw in diners from around the Metroplex and beyond. Another great opportunity is the growth in the number of hotels established. The Town already has Hampton Inn & Suites and Value Place Extended Stay Hotel, and two more hotels, Homewood Suites and a Holiday Inn will be completed in FY16. All of the hotels are located in the Trophy Wood District and will help create a unique destination for overnight travelers or those just wanting to visit Trophy Club for a sumptuous dining experience. SUMMARY & CONCLUSION The Town of Trophy Club is poised to have a strong and exciting upcoming fiscal year. This year’s FY16 budget represents a collective effort by the Town Council and the Town Staff to meet challenges facing our community. This budget is more than a financial document; it is a policy document that lays the groundwork for a continuation of current services and stabilizes the future financial position in order to carry on the Town’s duties and responsibilities, while meeting the goals and objectives outlined in the Town’s Strategy Map. The Town staff will continue to work to review, evaluate, and innovate to improve service delivery. I appreciate the opportunity to lead an organization that provides our community with exceptional services, strong public safety, and an excellent quality of life. I would like to thank the Town Council for volunteering their time to serve their community and providing leadership to continue to make the Town of Trophy Club “a great place to call home!” Sincerely, Stephen Seidel Town Manager 19 Trophy Club, TX | Annual Program of Services FY15-16 Budget 19 Strategic Planning Photo Credit: Stephen Zieverink 20 Trophy Club, TX | Annual Program of Services FY15-16 Budget 20 STRATEGIC PLANNING The Town of Trophy Club utilizes three distinct planning processes that enables the organization to work on a daily basis to accomplish the community’s long term strategies and goals, and evaluate its performance. To develop Trophy Club Vision 2030, a series of community meetings in which citizens, council members, and staff worked together through strategic questions related to Trophy Club’s history, governance, and future. Four meetings were held over a period of four months between 2012-2013. At each meeting, participants met in groups of three, which were rotated with each question in order to enable them to interact with a variety of people throughout the process. The Town Council developed a strategy map that presented the Town’s responsibilities and principles that will enable achievement of their long term vision for Trophy Club. Each department has listed a set of performance measures that assist them in achieving the Town’s responsibilities and principles within the strategy map. All three of these processes drive the Town of Trophy Club’s service delivery and aid in long and short-term financial planning. Strategy Map MISSION To maintain Trophy Club’s standing as a Premier Residential Community and a “Great Place to Call Home” by protecting and promoting the interests of its Residents, Businesses, and Property Owners. To support our Mission, we are tasked with the following areas of primary Responsibility: • Exceeding high standards for public safety and low crime rates. • Maintaining and improving street and storm drainage infrastructure. • Fostering a business-friendly environment. • Collaborating with Trophy Club MUD #1 and other governmental entities. • Maintaining Town assets, services, and codes of ordinance that preserve the natural beauty of Trophy Club. • Improving the aesthetic and recreational value of the Town. We pledge to carry out our Responsibilities operating under the following Principles: • Operating a limited government with maximum transparency. • Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. • Remaining accountable and responsive to residents, businesses, and property owners, with emphasis on proactive communication and problem solving. • Taking deliberate, targeted action resulting from thoughtful analysis, weighing costs and benefits in all situations. • Conducting ourselves as leaders, following the highest ethical standards, with humility before residents. RESPONSIBILITIES PRINCIPLES 21 Trophy Club, TX | Annual Program of Services FY15-16 Budget 21 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Estimate Adopted Planning Planning Planning Planning Beginning Fund Balance $ 3,045,021 $ 3,662,226 $ 3,745,717 $ 3,315,847 $ 3,544,633 $ 3,572,096 Revenue: Property Tax 5,220,298 5,801,544 6,132,903 6,306,686 6,402,741 6,517,666 Franchise Fees 835,341 947,257 951,693 952,372 967,668 983,430 Sales Tax 720,501 753,125 882,131 905,191 929,015 953,644 Licenses and Permits 723,794 558,606 281,326 247,560 199,482 189,520 Fines and Fees 523,856 420,359 426,793 433,626 439,458 446,589 Intergovernmental 126,134 - - - - - Charges for Service 310,278 274,909 279,096 283,996 289,011 294,144 Interest Revenue 7,000 18,000 22,000 26,000 30,000 35,000 Grant Revenue 77,018 - - - - - Miscellaneous 89,105 240,000 85,050 86,823 88,618 90,438 Total Revenue 8,633,325 9,013,800 9,060,992 9,242,254 9,345,993 9,510,431 Expenditures: Personnel 5,923,406 6,245,821 6,517,342 6,762,600 7,016,972 7,281,022 Services/Supplies 1,892,203 2,137,625 2,142,396 2,193,218 2,137,145 2,189,052 Capital 211,511 272,863 442,125 168,650 275,413 187,337 Total Expenditures 8,027,120 8,656,309 9,101,863 9,124,467 9,429,530 9,657,411 Other Sources (Uses): Transfers In 11,000 111,000 111,000 111,000 111,000 111,000 Transfers Out - (385,000) (500,000) - - - Total Other Sources (Uses) 11,000 (274,000) (389,000) 111,000 111,000 111,000 Net Increase (Decrease) 617,205 83,491 (429,871) 228,787 27,463 (35,980) Ending Fund Balance $ 3,662,226 $ 3,745,717 $ 3,315,847 $ 3,544,633 $ 3,572,096 $ 3,536,116 Fund Balance as % of Expenditures 45.62%43.27%36.43%38.85%37.88%36.62% GENERAL FUND FIVE-YEAR FORECAST 22 Trophy Club, TX | Annual Program of Services FY15-16 Budget 22 Planning Point Long-Term Plan Related Council Responsibilities & Principles Personnel The Town endeavors to provide competitive total compensation packages and an outstanding work environment. As the Town has approached substantial build-out, adding new personnel is only considered if a demonstrated need first exists and funding must also be secured. In FY16 a new police officer is budgeted along with the promotion of an existing officer to Sergeant which ensures adequate supervision per shift. A Firefighter/Paramedic is also budgeted (50% funded by the MUD) to ensure five firefighters per shift. A part-time network specialist is also budgeted to assist the Information Services department due to the ever increasing reliance on technology. • Exercising fiscal discipline and taking a business- like approach to Town operations and budget prioritization. • Taking deliberate, targeted action resulting from thoughtful analysis, weighing costs and benefits in all situations. Services & Supplies As the Town is near build-out, emphasis on long-term financial sustainability requires close scrutiny on expenditures for services and supplies. Each year will be evaluated to provide an adequate level of funding with an overall goal for increases not to exceed inflation. • Exercising fiscal discipline and taking a business- like approach to Town operations and budget prioritization. Equipment Replacement Equipment replacement is currently funded through operations. Each year an amount equal to each department’s depreciation is set aside to fund future replacements. The Town maintains a Fleet Replacement Policy in which a point system is used to determine priority for replacement based on age, miles, hours, repair costs, etc. The FY16 budgeted equipment replacement includes $215,863 for police patrol vehicle replacement, mower replacement, bleacher replacement, various pool replacements, and various IT replacements. • Maintain Town assets, services, and code of ordinances that preserve the natural beauty of Trophy Club. Capital Projects The Town uses three criteria as a basis to repair, replace, or improve infrastructure: 1) State and Federal mandates, 2) health and safety of citizens, and 3) to improve the Town. Priorities likely to be addressed are the joint Town Hall and Police Facility, street reconstruction, and drainage improvements. Voters approved a $5.4M GO bond for a joint Town Hall and Police Facility in November 2015. In addition, the Town anticipated issuing a $4.35M CO for street improvements ($2.35M) and the CCPD contribution towards the Police Facility ($2M). Additionally, funding remains from the 2014 Tax Note for street improvements, the 2014 CO (which has been reallocated from land acquisition for a joint Town Hall and Police Facility to construction of the facility), and the 2013 CO for drainage improvements. • Taking deliberate, targeted action resulting from thoughtful analysis, weighing costs and benefits in all situations. Economic Development Economic development is a priority for the Town and it is important in providing a diversified revenue base. While the Town is actively focused on the remaining land for economic development, undeveloped land is limited. The EDC 4B has purchased 7.5 acres of land in the Trophy Wood District for the purpose of economic development. Additionally, PD30, a 26 acre tract of land off Highway 114 and Trophy Club Drive, is anticipated to be developed over the next couple of years. • Fostering a business-friendly environment. Fund Balance The Town’s goal is to maintain an undesignated fund balance of 30% of annual expenditures in the General Fund. An unassigned fund balance of less than 15% is a cause for concern unless the action was deliberate. The Town currently maintains a higher-than-normal unassigned fund balance, projected at 40.3% for fiscal year end 2015. With the addition of 1.55 Full-time Equivalents (in the General Fund), in FY16 (over the FY15 estimate), the estimated unassigned fund balance is anticipated to decrease to 35.7% by the end of the Five Year Forecast in FY20. • Exercising fiscal discipline and taking a business- like approach to Town operations and budget prioritization. Debt Issuance In November 2015, voters approved funding for a joint Town Hall and Police Facility. The $5.4M GO Bond will be combined with $2 million from the CCPD, $1.15M in savings from the 2014 CO and operating funds to complete the project. With the Town nearing build out, all other future debt issues will be primarily used to maintain and replace existing infrastructure rather than to support new growth. Issues will be considered in conjunction with expiring debt to minimize the effect on the tax rate. The budgeted FY16 I&S percentage of the tax rate is 23%. • Exercising fiscal discipline and taking a business- like approach to Town operations and budget prioritization. FISCAL YEAR 2016 STRATEGIC PLAN (With Links to Council Responsibilities & Principles) 23 Trophy Club, TX | Annual Program of Services FY15-16 Budget 23 Drivers for Trophy Club’s Growth Many factors contributed to Trophy Club’s growth in the past. Some of those which were identified were: • Golf • Location • Family oriented • Affluent, yet affordable • Airport • Picturesque • Rural • IBM • Master planned community While some of those drivers still currently exist, participants perceive that there are new things that are now driving Trophy Club’s growth. For example, some of the things that are currently driving growth are: • Schools • Real estate values • Golf course • Hwy 114 (location & ease) • Entire highway system • Location between DFW Airport and Alliance Airport • Location between Dallas and Fort Worth • Youth sports • Safety • Balance of affluent yet affordable • Parks • Family oriented As Trophy Club moves into its future, it will be important for leaders to realize that the things that draw people to Trophy Club will be similar to the things that are currently drawing people to Trophy Club. The list may expand by a few items, but it is not likely to be radically different. Citizen Satisfaction Trophy Club residents enjoy an excellent quality of life. Community surveys indicate that they are highly satisfied with their lives, with the amenities that they have, and with the city as a whole. This is a very positive thing, but it also creates a measure of anxiety that as growth comes to Trophy Club it will erode the quality of life that residents now experience. There is a deep desire for city leaders to make decisions that will guard against the erosion of their quality of life. Some things that participants hope will never change: • Character & elegance • Country club • Small town feel • Sense of community • Enclosed safety • Quality of schools • Beauty Citizen Hopes Trophy Club residents also anticipate positive changes continuing to happen in the future. The participants desire more cohesiveness in the community. They also desire for there to be better relationships between town leaders and citizens, as well as between citizens themselves. Amongst the changes that participants hope for in the future are the following: • Willingness to embrace change • More inclusive of entire Town • Less negativity • Senior adult activity center • Senior adult living center • Increased property values • More progressive TROPHY CLUB VISION 2030 Trophy Club was originally developed around the Country Club and has a rich history as a community in a picturesque setting. While maintaining its connection with golf, the town is now also the home of a great school system through NISD, unique homes, and a population that consists of people of all ages. Trophy Club citizens value having a strong sense of community, and they desire to be actively engaged in local government. Trophy Club is ideally situated on Highway 114 between Alliance Airport and DFW Airport. Due to the strategic location of this corridor, Trophy Club is in a great position to capitalize on the many benefits that this provides to its citizens and stakeholders. At the same time, it is important that Trophy Club plans strategically to maximize these opportunities. 24 Trophy Club, TX | Annual Program of Services FY15-16 Budget 24 Trophy Club’s Future At the intersection of those things that people hope will never change and the things that they hope do change is the vision for Trophy Club 2030. Participants envision Trophy Club in the future of being: • Progressive • Cohesive • Grounded (not pretentious) • Regionally synergized • Re-inventive • Business friendly • Creative • Safety • Family oriented • Thriving • Green 5 Pillars for Trophy Club Vision 2030 1. A Premier Residential Community Trophy Club should strive to be a premier residential community. Although developing the Highway 114 Corridor offers an opportunity for more retail and office developments, Trophy Club will continue to be a predominantly residential community. Participants want leaders to make decisions that will honor the residential nature of Trophy Club. Unique, affordable housing has been a major component of Trophy Club’s heritage, and even as some commercial growth and redevelopment takes place, Trophy Club’s DNA as a town will remain the same. Participants envision Trophy Club becoming the benchmark for what a residential community should be like in 2030. This will mean maintaining a commitment to being re-inventive and being sensitive to the need for redevelopment. Being a premier residential community will also mean becoming more environmentally green and having a proactive posture about protecting the environment by using new technologies and staying in step with emerging environmental standards. Trophy Club’s brand centers on being a premier residential destination. This would include being a community where people can experience aging in place through senior living facilities. Participants believe that being strategic and consistent with greater branding is the key to promoting the positive benefits of Trophy Club. Key Thoughts: • Benchmark residential community • Environmentally friendly • A community for all ages • Faith friendly community • Strategic branding 2. Economic Development Trophy Club needs to be strategic and intentional in attracting businesses and jobs that add to the quality of life. Although it will continue to be a predominantly residential community, Trophy Club does need to develop more retail shopping and attract more job-producing businesses. Development on Highway 114 provides an opportunity for commercial development in Trophy Club. This is needed not only because of the amenities and jobs that it will provide to citizens, but it is also needed to help offset the town’s dependence upon property taxes. Participants hope to attain a better balance between property taxes and sales taxes, but at the same time, they want leaders to be very intentional and discriminant about the businesses that Trophy Club will house. Attention needs to be given to making sure that these businesses fit in well with the current culture of Trophy Club. At the same time, the council should be open to wisely using such tools as establishing a Tax Increment Financing District (TIF) in order to facilitate economic development. In addition to attracting new businesses, economic development should also focus on doing things that help retain existing businesses. Participants believe that efforts should be made to maximize the use of the town’s parks and park facilities. As a part of this, leaders should carefully examine how Trophy Club Park can best be used to generate revenue for the town. Key Thoughts: • Strategic commercial development that honors Trophy Club’s residential culture • Balance between property taxes and sales taxes • Retain businesses • Maximize economic benefits of parks and facilities 3. Amenities Trophy Club should strive to strategically add and sustain the kinds of amenities that a premier 25 Trophy Club, TX | Annual Program of Services FY15-16 Budget 25 residential community will have by 2030. Some of the things envisioned are as follows: • Make the Town more golf cart friendly and more bike friendly • Improve the trail system, making the Town more walkable and more connected • Build a partnership with schools to provide accessibility to the community • Support and enhance parks • Community/senior center • Municipal/Public Safety Facility • Maximize accessibility and possibilities offered by Trophy Club Park and Lake Grapevine • Embrace “modernization,” including staying current with new technology Providing these amenities will require that leaders plan strategically and develop the financial mechanisms to fund them. The town needs more economic development in order to provide the kinds of amenities that residents want. As with the first two pillars, this points to the importance of the council identifying the balance it wants between property taxes and sales taxes. Trophy Club is a picturesque community; residents value this. Residents desire that parks, trails, and other things that enable them to enjoy the area continue to be a priority for the future. Code enforcement is an important aspect of maintaining the beauty of the city, and maximizing the natural beauty of Trophy Club—including enhancing the view and entrance from Highway 114. Key Thoughts: • Strategically add amenities that residents want • Use Economic Development to provide more amenities • Maintain picturesque beauty of Trophy Club • Make the view and entrance from highway 114 more appealing 4. Excellence in Governance Trophy Club needs to become known for excellence in communication and transparency from the Council and Management. Participants desire that Trophy Club’s governance be characterized by transparency and excellence in communicating with citizens. They envision the town leadership being proactive in seeking citizen input in a variety of ways. Excellence includes being intentional about communicating plans, events, news, and developments to the public. Trophy Club is well known for being a safe place to live, and since residents value this safety, they want to foster a high standard in public safety, staff, and municipal services. Key Thoughts: • Pro-active communication • Strive for excellence • Highly transparent • Promote public safety 5. Trophy Club’s Relationship with Other Governmental Agencies Maintaining healthy relationships with other governmental agencies is a key to Trophy Club’s success, and none is more important to Trophy Club than its relationship with NISD. This must be an ongoing priority. The school’s success will have a big impact upon the town’s success. In order to continue to provide excellent customer service to citizens in the region Trophy Club also needs to maintain healthy relationships with entities such as: • Southlake • Roanoke • Westlake • Denton County • Tarrant County • MUD • TxDot • Corps of Engineers • Other cities in the region Trophy Club should continue to be cooperative with MUD while also examining the ways in which this relationship should evolve. Dialogue with MUD about the most cost effective and efficient way to provide services in the future should begin now. Key Thoughts: • Maintain positive relationships with other governmental agencies • Trophy Club’s relationships with MUD and NISD are especially important 26 Trophy Club, TX | Annual Program of Services FY15-16 Budget 26 Organization 27 Trophy Club, TX | Annual Program of Services FY15-16 Budget 27 Organizational Chart TROPHY CLUB CITIZENS Mayor & Council Town Secretary Town JudgeTown AttorneyTown Manager Assistant Town Manager/CFO Police EMS Marketing/PIO Infrastructure & Community Development Economic Development Parks & Recreation Finance & Court Human Resources Information Services 28 Trophy Club, TX | Annual Program of Services FY15-16 Budget 28 Full-Time Equivalent (FTE) Summary 2011-12 ACTUAL 2012-13 ACTUAL 2013-14 ACTUAL 2014-15 ESTIMATE 2015-16 CHANGES 2015-16 ADOPTED GENERAL FUND Administrative Services Manager’s Office 4.80 4.00 6.00 5.00 -5.00 Human Resources 2.00 1.00 1.00 1.00 -1.00 Information Services 2.00 2.00 2.00 2.00 0.50 2.50 Legal 1.00 1.00 1.00 1.00 -1.00 Public Safety Services Police 16.50 20.80 23.60 24.60 0.55 25.15 Emergency Medical Services 6.60 6.80 7.80 7.80 0.50 8.30 Streets 4.00 3.80 3.80 2.30 0.50 2.80 Parks 11.50 9.50 10.30 10.50 2.50 13.00 Medians -3.00 3.00 3.00 -3.00 - Recreation*2.10 2.10 2.10 2.10 -2.10 Planning and Zoning 1.00 1.00 2.00 --- Community Development 3.50 5.00 5.00 5.75 -5.75 Financial Services Finance 3.00 3.00 3.00 3.00 -3.00 Municipal Court 1.00 1.00 1.00 1.00 -1.00 Facilities Management N/A N/A N/A N/A N/A N/A TOTAL GENERAL FUND 58.00 64.00 71.60 69.05 1.55 70.6 TROPHY CLUB PARK FUND 2.70 1.40 1.48 1.48 -1.48 STREET MAINTENANCE SALES TAX FUND 0.60 0.70 0.70 0.70 -0.7 STORM DRAINAGE UTILITY FUND 0.30 0.50 0.50 0.50 -0.25 0.25 TOTAL FULL TIME EQUIVALENTS (FTEs)61.60 66.60 74.28 71.73 1.3 73.03 *Does Not Include Seasonal FTEs for FY 16 Summary of Changes • Intern/part-time Network Specialist for Information Services • Police Offer • Decreased the number of crossing guards by 0.45 FTEs due to updated work schedules • Firefighter/Paramedic split with the Trophy Club MUD #1 • Streets Supervisor is now 100% funded by the General Fund (previously split with Storm Drainage) • Medians was consolidated with Parks, and a full-time position was made into a part-time position • The Infrastructure & Development Services Manager is now split 75%/25% between the General Fund and the Storm Drainage Utility Fund 29 Trophy Club, TX | Annual Program of Services FY15-16 Budget 29 Tax Rate 30 Trophy Club, TX | Annual Program of Services FY15-16 Budget 30 Line Actual Actual Adopted Ref Truth in Taxation Formula 2013-2014 2014-2015 2015-2016 1 =Start PY Taxable Value 1,039,062,412 1,201,386,205 1,388,705,005 2 -Tax Ceilings 122,090,903 140,275,971 162,994,030 3 +PY ARB Value Loses 2,503,991 1,300,000 1,252,510 4 -PY First Year Exemption Loss 2,256,960 4,795,820 3,764,365 5 =PY Adjusted Taxable Roll 917,218,540 1,057,614,414 1,223,199,120 6 *PY Total Tax Rate 0.518543 0.499300 0.490000 7 =PY Adjusted Tax Levy 4,756,172 5,280,668 5,993,675 8 +PY Taxes Refunded 5,681 921 746 9 -PY Taxes in Tax Increment Financing (TIF) - - 3,630 10 =PY Adjusted Tax Levy with Refunds and TIF 4,761,853 5,281,589 5,990,791 11 Start CY July Certified Tax Roll 1,184,966,294 1,368,841,034 1,566,947,193 12 +CY Property Under Protest 10,684,465 12,254,509 11,252,095 13 -Tax Ceilings 139,405,687 161,468,798 197,738,589 14 -CY Annexed Property 14,953,453 - 1,434,611 15 -CY New Improvements 107,411,760 91,412,858 82,678,727 16 =CY Adjusted Tax Roll 933,879,859 1,128,213,887 1,296,347,361 17 CY Effective Tax Rate (Line 10/Line 16 * 100) 0.509899 0.468137 0.462128 18 Start PY Adjusted Taxable Roll (Line 5) 917,218,540 1,057,614,414 1,223,199,120 19 *PY M&O Rate 0.403543 0.384300 0.380000 20 =PY M&O Levy 3,701,371 4,064,412 4,648,157 21 +Taxes Refunded for Years Preceding Tax Year 4,496 717 576 22 -Taxes in Tax Increment Financing (TIF) - - 3,630 23 =PY M&O Levy (including taxes refunded) 3,705,867 4,065,129 4,645,103 24 /CY Adjusted Tax Roll (Line 16) 933,879,859 1,128,213,887 1,296,347,361 25 =CY Effective M&O Rate 0.396824 0.360315 0.358322 26 *CY M&O Rollback Factor 108%108%108% 27 =CY M&O Rollback Rate 0.428569 0.389140 0.386987 28 CY Debt Service Needed 1,214,682 1,341,601 1,518,517 29 /Anticipated Collection Rate 100%100%100% 30 =Adjusted Debt Service 1,214,682 1,341,601 1,518,517 31 /CY Taxable Value (Line 11 + Line 12 - Line 13) 1,056,245,072 1,219,626,745 1,380,460,699 32 =CY Debt Service Tax Rate 0.115000 0.110000 0.110000 33 =CY Rollback Rate (Line 27 + Line 32) 0.543569 0.499140 0.496987 TAX RATE CALCULATION 31 Trophy Club, TX | Annual Program of Services FY15-16 Budget 31 Actual Actual Adopted 2013-2014 2014-2015 2015-2016 NET TAXABLE VALUES $ 1,056,245,072 $ 1,219,626,745 $ 1,380,460,699 % Change in Taxable Value 15.08%15.47%13.19% Tax Ceilings 139,405,687 161,468,798 197,738,589 New Construction 107,411,760 91,412,858 82,678,727 TRUTH-IN-TAXATION Effective Tax Rate $ 0.509899 $ 0.468137 $ 0.462128 Rollback Rate Calculation Effective M&O 0.396824 0.360315 0.358322 Effective M&O x 1.08 0.428569 0.389140 0.386987 Debt Service Rate 0.115000 0.110000 0.110000 Rollback Rate 0.543569 0.499140 0.496987 TAX RATE General Fund (M&O) 0.384300 0.380000 0.374000 Debt Service (I&S) 0.115000 0.110000 0.110000 TOTAL 0.499300 0.490000 0.484000 TAX LEVY General Fund (M&O) $ 4,517,575 $ 5,138,466 $ 5,776,544 Debt Service (I&S) 1,351,864 1,490,172 1,697,277 TIRZ #1 - 6,062 3,573 TOTAL 5,869,439 6,634,700 7,477,394 A.V. TAX - 1 PENNY (NET) $ 105,625 $ 121,963 $ 138,046 TAX RATE RATIO General Fund (M&O)76.97%77.45%77.25% Debt Service (I&S)23.03%22.46%22.70% TIRZ #1 0.00%0.09%0.05% TOTAL 100.00%100.00%100.00% Items to Note: The Effective Rate ($0.462128) - This rate enables the public to evaluate the relationship between taxes for the preceding year and current taxes. This rate would produce the same tax dollars if applied to the same properties in both years. The Rollback Rate ($0.496987) - This rate, in essence, provides a ceiling (8% above the Effective Rate) in which any tax adopted above this rate would be subject to a Rollback Election if initiated by the public. A successful election would rollback the tax rate to the Rollback Rate. TAXABLE VALUES, TAX RATES, AND TAX RATIOS 32 Trophy Club, TX | Annual Program of Services FY15-16 Budget 32 Budget In Brief Photo Credit: Mayor Pro Tem Greg Lamont 33 Trophy Club, TX | Annual Program of Services FY15-16 Budget 33 BUDGET IN BRIEF The Town of Trophy Club continues to be “a great place to call home.” The financial outlook of the Town is strong considering the following: continued growth of property values; two new high-end restaurants: Meat U Anywhere and Bread Winners & Quarter Bar set to begin construction; and the completion of two new hotels: Holiday Inn and Homewood Suites. These new additions will continue to grow the property, sales, and hotel occupancy tax base. This growth will diversify the Town’s revenue base, which insulates the community for revenue shortfalls during times of economic recession. This year’s budget reflects the Town Council and Town Staff’s efforts to meet potential challenges in the upcoming year. The Town of Trophy Club is approaching build-out. As a result, the revenues received from housing- related permits will decrease, but total assessed property value is still expected to increase. The biggest challenge that the Town now faces is to be fiscally responsible while maintaining its high level of service. With a steadily growing population there will be a corresponding increase in service demand. The budget is developed around the responsibilities and principles set forth by the Town Council in the Strategy Map presented below: Strategy Map MISSION To maintain Trophy Club’s standing as a Premier Residential Community and a “Great Place to Call Home” by protecting and promoting the interests of its Residents, Businesses, and Property Owners. To support our Mission, we are tasked with the following areas of primary Responsibility: • Exceeding high standards for public safety and low crime rates. • Maintaining and improving street and storm drainage infrastructure. • Fostering a business-friendly environment. • Collaborating with Trophy Club MUD #1 and other governmental entities. • Maintaining Town assets, services, and codes of ordinance that preserve the natural beauty of Trophy Club. • Improving the aesthetic and recreational value of the Town. We pledge to carry out our Responsibilities operating under the following Principles: • Operating a limited government with maximum transparency. • Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. • Remaining accountable and responsive to residents, businesses, and property owners, with emphasis on proactive communication and problem solving. • Taking deliberate, targeted action resulting from thoughtful analysis, weighing costs and benefits in all situations. • Conducting ourselves as leaders, following the highest ethical standards, with humility before residents. RESPONSIBILITIES PRINCIPLES 34 Trophy Club, TX | Annual Program of Services FY15-16 Budget 34 Staff Goals Personnel • Provide quality personnel support services in employment, training, employee relations, benefits, compensation, and payroll such that employees are enabled to better serve community members and meet the organizational goals of the Town. • Promote competitive pay, benefits, and a healthy work environment in order to retain and attract qualified and competent staff. The FY16 Budget includes a point/performance based merit distribution of up to 2% per employee/evaluation on October 1st and April 1st, an annual stipend of $750 per employee, and Police Salary True-Up with base pay increases of up to 4% increase or adjustment to range minimums on October 1st (would not be eligible for additional 2% on October 1st). Technology • Utilize current and new technology to create greater efficiency in the Town government: • Complete Town Secretary and Community Development records migration to Laserfische. • Beginning records migration to Laserfische for Finance, Municipal Court, Police, and Human Resources. • Continue to utilize and expand the usage of Content Manager for Finance and Human Resources. • Utilizing Geographic Information Systems to improve permitting, planning, and code enforcement and integration with the Town’s Energov Software. Economic Development • Continue to work with commercial property owners and brokers to attract and retain businesses. • Continue development of the Trophy Wood District. Public Safety • Provide a safe environment for the citizens and visitors of Trophy Club by increasing police- community partnerships and encouraging voluntary compliance of all laws and ordinances. • Trophy Club EMS will continue to provide and maintain community education programs. • Work to decrease response times for both EMS and Police. • Increase EMS staff by one so that all shifts are equally manned. • New Police Officer & Sergeant promotion so that each shift is supervised. Town Facilities • Begin construction on new joint Town Hall and Police Facility. • Begin construction on new toddler playground and shade structure for Harmony Park. • Relocate existing NEOS system at Harmony Park to Independence Park West. • Construct eight youth practice soccer fields on leased land from Northwest Independent School District by Lakeview Elementary. • Update parks monument signs throughout Town. • Reconstruct the slide run and barrier at Trophy Club Pool. 35 Trophy Club, TX | Annual Program of Services FY15-16 Budget 35 Budget Highlights • The Town of Trophy Club lowered its tax rate from $0.49/$100 in FY15 to $0.484/$100 in FY16. Despite the decreased tax rate, property tax revenue (including delinquent taxes and penalty & interest) is expected to increase $812,634 or 12.19% from FY15. • General Fund expenditures are expected to increase 4.83% compared to the previous year’s adopted budget, primarily due to increased personnel costs. Personnel expenditures are expected to increase 3.62% compared to the previous year’s budget because of the addition of 1.55 full time equivalents, merit increases, and police salary true-ups. Capital replacement expenditures are expected to decrease 1.07% from the FY15 Budget, due to smaller replacement needs from departments than in the FY15 Budget. Highlights for General Fund Capital Replacement include: • Mower for Parks • Bleacher replacement program for Harmony Park • New patrol vehicle for Police • Improvements to Trophy Club Pool • Various IT related purchases and upgrades • Stryker Powercot for EMS • Street and Drainage capital projects funded by the 2013 CO, existing fund balance, the 2014 Tax Note, and proposed 2015 CO are expected to continue this fiscal year with a large slate of new projects including: • Pin Oak Court street maintenance and drainage improvements • Timberline Court street maintenance and drainage improvements • Pebble Beach street maintenance and drainage improvements • Broadway Creek and Amenity Lake Slopes improvements • Cypress Court drainage inlets • Trophy Club Drive reconstruction (roundabout to Meadow Creek) • Capital Projects not related to Streets and Drainage include: • Lakeview practice soccer fields • Harmony Park toddler playground and shade structure • Relocation of the NEOS system from Harmony Park to Independence Park West • New park monument signs • The bond election for the joint Town Hall and Police Building was approved by voters in November 2015. Construction will begin in the spring of 2016 and the building is expected to be complete by April 2017. 36 Trophy Club, TX | Annual Program of Services FY15-16 Budget 36 Revenues - All Funds Property Tax $ 7,512,357 General Fund 5,801,544 Debt Service Fund 1,704,718 TIRZ #1 6,095 Sales Tax 1,488,221 General Fund 753,125 EDC 4B 365,109 Street Maintenance Fund 182,554 CCPD 186,433 TIRZ #1 1,000 Franchise Fees 947,257 Licenses and Permits 558,606 Fines and Fees 1,015,059 Charges for Service 274,909 Occupancy Tax 354,520 Investment Income 19,400 Miscellaneous Income 240,000 Total Revenues $ 12,410,329 Expenditures - All Funds General Fund $ 8,656,309 Debt Service Fund 1,727,067 Capital Projects Fund 8,848,404 CCPD Fund 182,400 Street Maintenance Fund 160,412 Storm Drainage Utility Fund 576,842 Trophy Club Park Fund 152,806 Hotel Occupancy Fund 155,825 Court Technology Fund 5,200 EDC 4B Fund 370,950 Recreation Program Fund 8,000 Total Expenditures $ 20,844,215 Please note: Expenditures exceeding revenues in total reflects a draw-down in available balances primarily due to capital projects’ expenditures (corresponding bond proceeds reflected as other sources in prior years and related expenditures generally made over several years). Total Revenues $12,410,329 Total Expenditures $20,844,215 61% 12% 8% 4% 8% 2%3% 0%2% Property Tax Sales Tax Franchise Fees License and Permits Fines and Fees Charges for Service Occupancy Tax Investment Income Miscellaneous Income 42% 1%1%0% 41% 8% 3% 2%1%1% 0% Capital Projects Fund Hotel Occupancy Fund Trophy Club Park Fund Recreation Program Fund The General Fund Debt Service Fund Stormwater Drainage Utility Fund EDC 4B Fund CCPD Fund Street Maintenance Fund Court Technology Fund 37 Trophy Club, TX | Annual Program of Services FY15-16 Budget 37 FY 2015 Budget FY 2015 Estimate FY 2016 Adopted % Change (From FY15 Budget) % Change (From FY15 Estimate) Property Tax $ 5,166,466 $ 5,220,298 $ 5,801,544 12.29%11.13% Franchise Fees 812,506 835,341 947,257 16.58%13.40% Sales Tax 676,324 720,501 753,125 11.36%4.53% Licenses and Permits 710,631 723,794 558,606 -21.39%-22.82% Fines and Fees 466,101 523,856 420,359 -9.81%-19.76% Charges for Service 260,852 310,278 274,909 5.39%-11.40% Miscellaneous Income 118,550 89,105 240,000 102.45%169.35% Investment Income 6,000 7,000 18,000 200.00%157.14% Grant Revenue 77,018 77,018 - -100%-100% Intergovernmental 192,901 126,134 - -100%-100% Total Revenues $ 8,487,349 $ 8,633,325 $ 9,013,800 6.20%4.41% Revenue - Highlights: • The Town of Trophy Club lowered its tax rate from $0.49/$100 in FY15 to $0.484/$100 in FY16. Despite the decreased tax rate, property tax revenue is increasing $581,246 or 11.13% from the FY15 estimate. • Revenue from licenses and permits are expected to decrease $165,188 or 22.82% from the FY15 estimate. This is due to a decrease in residential permits, which will continue to decrease as the Town approaches build-out. • In September 2015, the Town Council increased the solid waste franchise fees from 6% to 12% and the gas franchise from 4% to 5%. In total, franchise fees are expected to increase $111,916 or 13.4% from the FY15 estimate. • Miscellaneous income is expected to increase due to new ground leases with Sprint and Verizon to generate cell tower revenue. In total, miscellaneous revenue is projected to increase $150,895 or 169% over the FY15 estimate. General Fund Revenue 64% 6% 11%8% 5% 3% 3% 0% Property Tax Licenses and Permits Franchise Fees Sales Tax Fines and Fees Miscellaneous Income Charges for Service Investment Income General Fund Revenues $9,013,800 38 Trophy Club, TX | Annual Program of Services FY15-16 Budget 38 FY 2015 Budget FY 2015 Estimate FY 2016 Adopted % Change (From FY15 Budget) % Change (From FY15 Estimate) Manager’s Office $ 899,938 $ 1,052,177 $ 843,529 -6.27%-19.83% Human Resources 92,495 95,940 123,872 33.92%29.11% Information Services 423,312 478,244 531,262 25.50%11.09% Legal 193,389 177,963 196,972 1.85%10.68% Police 2,110,098 2,005,029 2,352,871 11.51%17.35% Emergency Medical Services 1,016,722 845,096 916,059 -9.90%8.40% Streets 411,677 421,966 420,120 2.05%-0.44% Medians 299,310 300,369 --100%-100% Parks 1,043,416 985,603 1,388,795 33.10%40.91% Recreation 550,039 542,083 658,647 19.75%21.50% Community Events 60,201 24,932 31,881 -47.04%27.87% Community Development 572,921 556,846 582,726 1.71%4.65% Finance 387,097 345,212 410,419 6.02%18.89% Municipal Court 85,936 83,111 87,077 1.33%4.77% Facilities Maintenance 111,042 112,550 112,079 0.93%-0.42% Total Expenditures $8,257,594 $ 8,027,120 $8,656,309 4.83%7.84% General Fund Expenditures By Department General Fund Expenditures By Department $8,656,309 0% 5% 10% 15% 20% 25% 30% 39 Trophy Club, TX | Annual Program of Services FY15-16 Budget 39 FY 2015 Budget FY 2015 Estimate FY 2016 Adopted % Change (From FY15 Budget) % Change (From FY15 Estimate) Personnel $ 6,027,652 $ 5,923,406 $ 6,245,821 3.62%5.44% Services & Supplies 1,954,139 1,892,203 2,137,625 9.39%12.97% Capital 275,803 211,511 272,863 -1.07%29.01% TOTAL $ 8,257,594 $ 8,027,120 $ 8,656,309 4.83%7.84% General Fund Expenditures By Use Expenditure - Highlights: • Personnel – Total personnel expenditures are expected to increase $322,415 or 5.44% from the FY15 estimate. FY16 budget includes the following personnel changes and adjustments: • New Police Officer • Sergeant promotion for an existing Police Officer • New Firefighter/Paramedic (50% funded by Trophy Club MUD #1) • Intern/part-time Network Specialist • Crossing Guard Full-Time Equivalents (FTE’s) changed from 3.60 FTE’s to 3.15 FTE’s based on updated work schedules • $135,000 merit pool • Services and Supplies – The services and supplies budget increased $245,422 or 12.97% from the FY15 estimate, 2.89% of which are supplemental items. The remainder of the increase is derived from the following: shifting personnel costs to contract labor in the Parks department, the relocation of the NEOS system, increased EMS collection fees, a new medical director, Laserfiche, Information Services cloud storage and backup, and the use of Geographic Information Systems (GIS) services. • Capital - Capital expenditures include both capital replacement and new capital expenditures. The capital expenditures budget for the general fund increased $61,352 or 29.01% from the FY15 estimate primarily due to a supplemental toddler playground and shade structure for Harmony Park. 72% 25% 3% Personnel Services & Supplies Capital General Fund Expenditures By Use $8,656,309 40 Trophy Club, TX | Annual Program of Services FY15-16 Budget 40 Future Challenges & Financial Position The most significant challenge Trophy Club faces is heavy reliance on property tax revenue. The Town endeavors to maintain a mix of revenue where property tax does not exceed 65% of total revenue generated in the General Fund. The Town is only a few years away from build-out, which has already decreased permitting revenue and has pushed the Town into an even deeper reliance on property tax revenue. When residential build-out occurs, any growth in assessed valuation will reflect appreciation in the existing tax base, essentially leveling property tax revenues. Over the next five years the Town will see an increase in franchise fees, sales tax and hotel occupancy tax revenue. In September 2015, the Town Council took action to increase the solid waste franchise fees from 6% to 12% and the gas franchise from 4% to 5%. Sales tax will increase due to the addition of two new restaurants to the Town: Meat U Anywhere and Bread Winners & Quarter Bar. Hotel occupancy tax will increase as both Homewood Suites and Holiday Inn open in 2016. It is the goal of the Town to achieve and maintain an unassigned fund balance in the General Fund of at least 30% of expenditures. The Town considers a balance of less than 15% to be cause for concern, barring unusual or deliberate circumstances. The Town currently has an estimated FY15 ending fund balance of $3,662,226 or 46% of General Fund expenditures of which $3,234,088 or 40% is unassigned. The FY16 budget estimates an ending fund balance of $3,745,717 or 43% of General Fund expenditures of which $3,579,717 or 41% is unassigned. General Fund Revenues, Expenditures, Ending Fund Balance & Fund Balance Goal $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Estimate FY 2016 (Adopted) Revenue Expenditures Ending Fund Balance Fund Balance Goal 46% 34% 39% 46%43% 41 Trophy Club, TX | Annual Program of Services FY15-16 Budget 41 All Funds Summaries Photo Credit: Officer Barry Sullivan 42 Trophy Club, TX | Annual Program of Services FY15-16 Budget 42 The General Fund Debt Service Fund Capital Projects Fund CCPD Fund Street Maint. Fund Storm Drainage Utility Fund Trophy Club Park Fund Beginning Fund Balance $ 3,662,226 $ 105,367 $ 1,293,027 $ 38,491 $ 49,584 $ 407,907 $ (70,458) Revenue Property Tax 5,801,544 1,704,718 Sales Tax 753,125 186,433 182,554 Franchise Fees 947,257 Licenses and Permits 558,606 Intergovernmental Fines and Fees 420,359 414,700 165,000 Charges for Service 274,909 Occupancy Tax Investment Income 18,000 250 100 100 Miscellaneous Income 240,000 Total Revenue $ 9,013,800 $ 1,704,968 $ 100 $ 186,433 $ 182,554 $ 414,800 $ 165,000 Expenditures General Government 97,500 Manager’s Office 843,529 Human Resources 123,872 Information Services 531,262 Legal 196,972 Police 2,352,871 182,400 Emergency Medical Services 916,059 Streets & Drainage 420,120 160,412 158,815 Parks 1,388,795 152,806 Recreation 658,647 Community Events 31,881 Community Development 582,726 Finance 410,419 Municipal Court 87,077 Facility Management 112,079 Debt Service 1,727,067 175,400 Capital - Projects 8,750,904 242,627 Total Expenditures $ 8,656,309 $ 1,727,067 $ 8,848,404 $ 182,400 $ 160,412 $ 576,842 $ 152,806 Other Sources (Uses): Debt Issuance 9,750,000 Transfers In 111,000 87,206 385,000 Transfers Out (385,000) (25,000) (62,206) (8,000) Total Other Sources (Uses) $ (274,000) $ 87,206 $ 10,135,000 $ - $ (25,000) $ (62,206) $ (8,000) Net Increase (Decrease) $ 83,491 $ 65,107 $ 1,286,696 $ 4,033 $ (2,858) $ (224,248) $ 4,194 Ending Fund Balance $ 3,745,717 $ 170,474 $ 2,579,723 $ 42,524 $ 46,726 $ 183,659 $ (66,264) ALL FUNDS SUMMARY FISCAL YEAR 2016 43 Trophy Club, TX | Annual Program of Services FY15-16 Budget 43 ALL FUNDS SUMMARY FISCAL YEAR 2016 Hotel Occupancy Fund Court Technology Fund Court Security Fund Grants Fund Anniversary Fund EDC 4B Fund TIRZ #1 Recreation Program Fund Total $ 451,931 $ 21,437 $ 21,793 $ (6,333) $ 4,614 $ 490,480 $ 8,291 $ 2,812 $ 6,481,170 6,095 7,512,357 365,109 1,000 1,488,221 947,257 558,606 - 4,000 3,000 8,000 1,015,059 274,909 354,520 354,520 500 450 19,400 240,000 $ 355,020 $ 4,000 $ 3,000 $ - $ - $ 365,559 $ 7,095 $ 8,000 $ 12,410,329 370,950 468,450 843,529 123,872 531,262 196,972 2,535,271 916,059 739,347 1,541,601 8,000 666,647 155,825 187,706 582,726 410,419 5,200 92,277 112,079 1,902,467 8,993,531 $ 155,825 $ 5,200 $ - $ - $ - $ 370,950 $ - $ 8,000 $ 20,844,215 9,750,000 583,206 (100,000) (3,000) (583,206) $ (100,000) $ - $ (3,000) $ - $ - $ - $ - $ - $ 9,750,000 $ 99,195 $ (1,200) $ - $ - $ - $ (5,391) $ 7,095 $ - $ 1,316,114 $ 551,126 $ 20,237 $ 21,793 $ (6,333) $ 4,614 $ 485,089 $15,386 $2,812 $ 7,797,285 44 Trophy Club, TX | Annual Program of Services FY15-16 Budget 44 The General Fund Debt Service Fund Capital Projects Fund FY 2014 Actual FY 2015 Estimated FY 2016 Adopted FY 2014 Actual FY 2015 Estimated FY 2016 Adopted FY 2014 Actual FY 2015 Estimated FY 2016 Adopted Beginning Fund Balance $ 2,530,394 $ 3,045,021 $ 3,662,226 $ 119,722 $ 118,092 $ 105,367 $ 2,065,909 $ 4,505,273 $ 1,293,027 Revenue Property Tax 4,547,901 5,220,298 5,801,544 1,360,863 1,507,248 1,704,718 Sales Tax 662,723 720,501 753,125 Franchise Fees 772,621 835,341 947,257 Licenses and Permits 893,733 723,794 558,606 Intergovernmental 386,879 126,134 - 55,992 Fines and Fees 551,899 523,856 420,359 Charges for Service 236,719 310,278 274,909 Grant / Contributions 58,892 77,018 - 200,061 Occupancy Tax Investment Income 2,942 7,000 18,000 246 250 1,548 1,600 100 Miscellaneous Income 109,621 89,105 240,000 Total Revenue $ 8,223,930 $ 8,633,325 $ 9,013,800 $ 1,361,109 $ 1,507,248 $ 1,704,968 $ 57,540 $ 201,661 $ 100 Expenditures General Government 97,500 Manager’s Office 829,603 1,052,177 843,529 Human Resources 74,282 95,940 123,872 Information Services 333,769 478,244 531,262 Legal 196,520 177,963 196,972 Police 2,065,029 2,005,029 2,352,871 Emergency Medical Services 808,788 845,096 916,059 Streets & Drainage 403,868 421,966 420,120 Medians 294,342 300,369 - Parks 1,020,004 985,603 1,388,795 Recreation 503,373 542,083 658,647 Community Events 38,805 24,932 31,881 Planning & Zoning 260,939 - - Community Development 326,821 556,846 582,726 Finance 392,220 345,212 410,419 Municipal Court 79,573 83,111 87,077 Facility Management 81,550 112,550 112,079 Debt Service 1,403,122 1,575,613 1,727,067 Capital - Projects 768,476 3,413,907 8,750,904 Total Expenditures $ 7,709,485 $ 8,027,120 $ 8,656,309 $ 1,403,122 $ 1,575,613 $ 1,727,067 $ 768,476 $ 3,413,907 $ 8,848,404 Other Sources (Uses): Debt Issuance 3,290 3,150,329 9,750,000 Transfers In 11,000 11,000 111,000 40,383 52,350 87,206 385,000 Transfers Out (10,818) - (385,000) (29) Total Other Sources (Uses) $ 182 $ 11,000 $ (274,000) $ 40,383 $ 55,640 $ 87,206 $ 3,150,300 $ - $ 10,135,000 Net Increase (Decrease) $ 514,627 $ 617,205 $ 83,491 $ (1,630) $(12,725) $ 65,107 $ 2,439,364 $ (3,212,246) $ 1,286,696 Ending Fund Balance $ 3,045,021 $ 3,662,226 $ 3,745,717 $ 118,091 $ 105,367 $ 170,474 $ 4,505,273 $ 1,293,027 $ 2,579,723 ALL FUNDS SUMMARY (THREE-YEAR) 45 Trophy Club, TX | Annual Program of Services FY15-16 Budget 45 Storm Drainage Utility Fund Trophy Club Park Fund Other Funds Total (All Funds) FY 2014 Actual FY 2015 Estimated FY 2016 Adopted FY 2014 Actual FY 2015 Estimated FY 2016 Adopted FY 2014 Actual FY 2015 Estimated FY 2016 Adopted FY 2014 Actual FY 2015 Estimated FY 2016 Adopted $ 1,976,400 $ 777,346 $ 407,907 $ (6,470) $ 1,830 $ (70,458) $ 397,160 $ 801,704 $1,083,102 $ 7,083,115 $ 9,249,266 $ 6,481,170 8,291 6,095 5,908,764 6,735,837 7,512,357 626,031 690,374 735,096 1,288,754 1,410,875 1,488,221 772,621 835,341 947,257 893,733 723,794 558,606 442,871 126,134 - 399,692 407,000 414,700 150,925 90,000 165,000 22,933 12,400 15,000 1,125,449 1,033,256 1,015,059 3,938 240,657 310,278 274,909 2,491 74,384 61,383 351,463 - 235,796 252,000 354,520 235,796 252,000 354,520 25 100 417 850 950 5,178 9,450 19,400 26,001 2,750 10,700 138,372 99,805 240,000 $425,718 $407,000 $414,800 $150,925 $90,000 $165,000 $894,356 $1,048,999 $1,111,661 $11,113,578 $11,888,233 $12,410,329 215,593 198,876 370,950 215,593 198,876 468,450 829,603 1,052,177 843,529 74,282 95,940 123,872 333,769 478,244 531,262 196,520 177,963 196,972 72,856 296,100 182,400 2,137,885 2,301,129 2,535,271 808,788 845,096 916,059 79,956 148,091 158,815 114,096 140,002 160,412 597,920 710,059 739,347 294,342 300,369 - 134,625 154,288 152,806 1,154,630 1,139,891 1,541,601 12,781 6,500 8,000 516,154 548,583 666,647 92,200 155,825 38,805 117,132 187,706 260,939 - - 326,821 556,846 582,726 392,220 345,212 410,419 21,764 5,923 5,200 101,337 89,034 92,277 81,550 112,550 112,079 163,045 178,963 175,400 1,566,166 1,754,576 1,902,467 1,361,164 422,035 242,627 40,794 2,170,434 3,835,942 8,993,531 $ 1,604,165 $ 749,089 $ 576,842 $ 134,625 $ 154,288 $ 152,806 $ 477,883 $739,601 $882,787 $12,097,757 $14,659,619 $20,844,215 3,150,329 3,290 9,750,000 6,460 4,358 62,201 63,350 583,206 (27,067) (27,350) (62,206) (8,000) (8,000) (8,000) (16,287) (28,000) (128,000) (62,201) (63,350) (583,206) $ (20,607) $ (27,350) $ (62,206) $ (8,000) $ (8,000) $ (8,000) $ (11,929) $ (28,000) $(128,000) $ 3,150,329 $ 3,290 $ 9,750,000 $(1,199,054) $ (369,439) $ (224,248) $ 8,300 $ (72,288) $ 4,194 $ 404,544 $ 281,398 $ 100,874 $ 2,166,150 $(2,768,096) $ 1,316,114 $ 777,346 $ 407,907 $ 183,659 $ 1,830 $ (70,458) $ (66,264) $ 801,703 $1,083,102 $1,183,976 $ 9,249,265 $ 6,481,170 $ 7,797,285 ALL FUNDS SUMMARY (THREE-YEAR) (Other Funds Include: Court Security Fund, Court Technology Fund, Street Maintenance Sales Tax Fund, Crime Control Prevention District Fund, Grants Fund, Anniversary Fund, TIRZ #1, Recreation Program Fund, Economic Development 4B Fund and Hotel Occupancy Tax Fund) 46 Trophy Club, TX | Annual Program of Services FY15-16 Budget 46 SUPPLEMENTAL ITEMS, CAPITAL & EQUIPMENT REPLACEMENT 47 Trophy Club, TX | Annual Program of Services FY15-16 Budget 47 SUPPLEMENTAL ITEMS General Fund Department Item Amount Description One-Time Expenditures Parks NEOS Relocation $4,000 Move NEOS System from Harmony Park to Independence Park West. Parks Hardscapes $7,500 Convert non-irrigated medians to hardscapes. Parks Playground - Harmony Park $35,000 Replaces NEOS system with small toddler playground at Harmony Park. Parks Shade Structure - Harmony Park $22,000 Adds shade structure to supplemental small toddler playground at Harmony Park. Police New Police Officer & Sergeant Promotion Equipment $8,200 Equipment for new patrol officer. Ongoing Expenditures IS Cloud Backup and Recovery $35,000 Cloud backup and recovery solution. IS Intern/Part-Time Network Specialist $25,498 Provide network and desktop support to Town Employees. EMS Firefighter/Paramedic $22,504 Adds one firefighter/paramedic to a shift to make five scheduled per shift. Police New Police Officer & Sergeant Promotion Personnel Cost $82,248 Adds one patrol officer and promotes one officer to Sergeant. Total Supplemental (General Fund) $241,950 Capital Projects Fund Department Item Amount Description One-Time Expenditures Parks Playground - Harmony Park $15,000 Replaces NEOS system with small toddler playground at Harmony Park. Total Supplemental (Capital Projects Fund) $15,000 Note: Supplemental items represent new or upgraded programs or equipment to the Town. 48 Trophy Club, TX | Annual Program of Services FY15-16 Budget 48 General Fund Department Item Amount Description Parks 36’ Grandstand Mower $7,600 Scheduled replacement due to age/ condition. Parks Harmony Park Bleachers $15,000 Replacement plan to convert wooden bleachers at Harmony Park to metal bleachers. Police Ford Patrol Vehicle (Fully Equipped) $45,800 Replaces 2008 Ford Expedition. Recreation Slide Run and Barrier Relocation $15,000 Reconfigure existing slide run at pool, replace plumbing as needed, so that it runs onto the splash pad rather than onto a hard surface. Recreation Spray Pad Feature Refurbishing $25,000 Refurbishes worn spray pad features. Recreation Small Pool Resurface $21,000 Resurfaces and renovates small pool. Recreation Small Pool Filter $19,000 Replaces small pool filter and equipment. IS Server Replacement $8,500 Scheduled IT replacement. IS Computer Replacement $14,613 Scheduled IT replacement. IS Printer and Copier Replacement $9,100 Scheduled IT replacement. IS Infrastructure Replacement $15,000 Scheduled IT replacement. IS Software Replacement $2,250 Scheduled IT replacement. EMS Stryker Powercot $18,000 Replaces manual cot. Supplemental Parks Toddler Playground - Harmony Park $35,000 Replaces NEOS system with small toddler playground Harmony Park. Parks Shade Structure for Toddler Playground - Harmony Park $22,000 Adds a shade structure to supplemental small toddler playground at Harmony Park. General Fund Total $272,863 Crime Control and Prevention District (CCPD) Department Item Amount Description Police Furniture, Fixtures, and Equipment $125,000 For new Police facility. CCPD Total $125,000 Capital Projects Fund Department Item Amount Description Parks Toddler Playground - Harmony Park $15,000 Replaces NEOS system with small toddler playground Harmony Park. Capital Projects Fund Total $15,000 CAPITAL & EQUIPMENT REPLACEMENT 49 Trophy Club, TX | Annual Program of Services FY15-16 Budget 49 The General Fund Photo Credit: Mayor Pro Tem Greg Lamont 50 Trophy Club, TX | Annual Program of Services FY15-16 Budget 50 GENERAL FUND ANALYSIS Revenues, Expenditures (By Department) & Fund Balance Revenues FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Property Tax $ 3,852,874 $ 4,149,900 $ 4,547,901 $ 5,166,466 $ 5,220,298 $ 5,801,544 $ 6,132,903 $6,306,686 Licenses and Permits 1,112,979 947,870 893,733 710,631 723,794 558,606 281,326 247,560 Franchise Fees 693,722 718,952 772,621 812,506 835,341 947,257 951,693 952,372 Sales Tax 606,714 609,889 662,723 676,324 720,501 753,125 882,131 905,191 Fines and Fees 688,797 644,609 551,899 466,101 523,856 420,359 426,793 433,626 Intergovernmental 265,686 184,689 386,879 192,901 126,134 - - - Charges for Service 210,831 235,594 236,719 260,852 310,278 274,909 279,096 283,996 Investment Income 5,632 4,919 2,942 6,000 7,000 18,000 22,000 26,000 Grant Revenue - 75,599 58,892 77,018 77,018 - - - Prior Year Adjustment (217,750) (96,870) - - - - - - Miscellaneous Income 87,000 203,766 109,621 118,550 89,105 240,000 85,050 86,823 Total Revenues $ 7,306,485 $ 7,678,919 $ 8,223,930 $ 8,487,349 $ 8,633,325 $ 9,013,800 $ 9,060,992 $ 9,242,254 Expenditures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Manager’s Office $ 636,758 $ 707,166 $ 829,603 $ 899,938 $ 1,052,177 $ 843,529 $ 867,856 $ 908,678 Human Resources 94,839 102,771 74,282 92,495 95,940 123,872 128,053 132,222 Information Services 330,204 342,319 333,769 423,312 478,244 531,262 570,841 549,473 Legal 154,236 171,157 196,520 193,389 177,963 196,972 203,401 210,230 Police 1,638,863 2,068,309 2,065,029 2,110,098 2,005,029 2,352,871 2,385,390 2,505,280 Emergency Medical Services 695,139 768,367 808,788 1,016,722 845,096 916,059 1,154,578 965,188 Streets 417,998 766,411 403,868 411,677 421,966 420,120 472,630 491,014 Medians - - 294,342 299,310 300,369 - - - Parks 1,141,216 947,734 1,020,004 1,043,416 985,603 1,388,795 1,349,570 1,386,011 Recreation 470,551 496,388 503,373 550,039 542,083 658,647 659,909 626,738 Community Events 47,889 47,374 38,805 60,201 24,932 31,881 32,688 33,614 Planning & Zoning 233,134 257,138 260,939 - - - - - Community Development 248,339 319,168 326,821 572,921 556,846 582,726 649,029 667,225 Finance 528,143 372,816 392,220 387,097 345,212 410,419 422,715 438,687 Municipal Court 78,929 68,731 79,573 85,936 83,111 87,077 89,984 93,050 Facilities Maintenance 65,341 75,344 81,550 111,042 112,550 112,079 115,220 117,059 Total Expenditures $ 6,781,579 $ 7,511,193 $ 7,709,485 $ 8,257,594 $ 8,027,120 $ 8,656,309 $ 9,101,863 $ 9,124,467 Other Sources (Uses)FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Transfers In $ 64,019 $ 12,300 $ 11,000 $ 11,000 $ 11,000 $ 111,000 $ 111,000 $ 111,000 Transfers Out (100,615) (780,734) (10,818) (385,000) - (385,000) (500,000) - Total Other Sources (Uses) $ (36,596) $ (768,434) $ 182 $ (374,000) $ 11,000 $ (274,000) $ (389,000) $ 111,000 Fund Balance FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 2,642,792 $ 3,131,102 $ 2,530,394 $ 2,960,660 $ 3,045,021 $ 3,662,226 $ 3,745,717 $ 3,315,086 Net Increase (Decrease) 488,310 (600,708) 514,627 (144,245) 617,205 83,491 (429,871) 228,787 Ending Fund Balance $ 3,131,102 $ 2,530,394 $ 3,045,021 $ 2,816,415 $ 3,662,226 $ 3,745,717 $ 3,315,847 $ 3,544,633 Fund Balance Detail FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Reserve Fund Balance (30% of Total Expenditures) $ 2,034,474 $ 2,253,358 $ 2,312,846 $ 2,477,278 $ 2,408,136 $ 2,596,893 $ 2,730,559 $ 2,737,340 Assigned Fund Balance 228,138 228,138 228,138 228,138 228,138 - - - Committed Fund Balance - - - - 200,000 166,000 144,000 122,000 Unassigned Fund Balance in Excess (Deficit) of 30% 868,491 48,898 504,038 110,999 825,952 982,825 441,288 685,293 Total Fund Balance $ 3,131,102 $ 2,530,394 $ 3,045,021 $ 2,816,415 $ 3,662,226 $ 3,745,717 $ 3,315,847 $ 3,544,633 51 Trophy Club, TX | Annual Program of Services FY15-16 Budget 51 General Fund Revenues The largest revenue source in the General Fund is the Ad Valorem Property Tax. Property tax revenues are calculated by multiplying the tax rate by the property tax base. The tax rate for the FY16 adopted budget is based on a $0.48400 ad valorem tax rate. This rate is 4.7% more than the calculated effective tax rate ($0.462128/$100) that would provide the same level of revenue on existing properties as FY15. The ad valorem tax rate is comprised of two components; the first is the Maintenance and Operations component (M&O) that is used to calculate revenue to fund the Town’s General Fund operations such as Police and Administration; the second component is the Interest & Sinking (I&S) portion that is used to calculate revenue to pay the Town’s general debt service obligations. The property tax base is calculated by both Denton County and Tarrant County, since the Town of Trophy Club has property in both counties. Summing both appraised values together amounts to the total appraised value for Trophy Club. After adding both appraisal rolls, the total property value shows an increase of 13.1% over the prior year certified values, and a current average home value of $352,731. In FY16, 100 homes are projected for construction which will continue to increase the total assessed value of Trophy Club, and in turn increase revenues derived from property tax. Over the next year the property tax base is forecast to increase by 10% over the previous fiscal year due to new growth and increased values of existing properties. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 FY 13 Actual FY 14 Actual FY 15 Estimate FY 16 Adopted FY 17 Planning FY 18 Planning GRANT REVENUE MISCELLANEOUS INCOME INVESTMENT INCOME CHARGES FOR SERVICES INTERGOVERNMENTAL FINES AND FEES SALES TAXES FRANCHISE FEES LICENSING AND PERMITS PROPERTY TAXES 0.470000 0.515000 0.530000 0.518543 0.499300 0.490000 0.484000 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 PROPERTY TAX RATE HISTORY 52 Trophy Club, TX | Annual Program of Services FY15-16 Budget 52 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 FY 13 Actual FY 14 Actual FY15 Estimate FY16 Adopted FY17 Planning FY18 Planning General Fund Revenues Franchise Fees are the second largest revenue source in the General Fund. These fees are charged to gas, electric, telecommunications, solid waste, and cable companies for the use of the Town’s right- of-ways. In September 2015, Town Council took action to increase the solid waste franchise fees from 6% to 12% and the gas franchise from 4% to 5%. They are projected based on past and current trends and franchisees’ estimates. Franchise fees are projected to increase 13.38% over the FY15 estimate.Sales Tax is the third largest revenue source in the General Fund. Consumers pay 8.25% in sales tax in the Town of Trophy Club. Of that, the State of Texas charges 6.25% sales tax. Local governments have an additional 1.0% sales tax that they automatically receive. The remaining 1.0% of sales tax has to be approved for specific use by voters. The 2.0% of sales tax that the Town collects is distributed as follows: the General Fund receives 1% of the sales tax, 0.5% goes to fund the Economic Development 4B Fund, 0.25% goes to the Street Maintenance Sales Tax Fund, and 0.25% goes to the Crime Control Prevention District Fund. Included in the sales tax totals is the Mixed Beverage tax, which amounts to 3.0% of the revenue for this category. The FY16 budget projects a 4.53% growth in total receipts over the current year’s estimate. The sales tax revenue is dependent on local economic conditions and can fluctuate. Future projections include the addition of two new restaurants Meat U Anywhere BBQ and Bread Winners & Quarter Bar, which are projected $- $200,000 $400,000 $600,000 $800,000 $1,000,000 FY 13 Actual FY 14 Actual FY15 Estimate FY 16 Adopted FY 17 Planning FY 18 Planning Electric Gas Telecommunications Cable Refuse Franchise Fees Sales Tax Licensing & Permits to open in 2016. Licensing and Permits are the fourth largest revenue source for the General Fund. This revenue source grouping contains Building and Miscellaneous Permits, and is expected to decrease 22.82% from the FY15 estimate due to the Town approaching substantial build-out. The heavy reduction in revenue derived from licensing and permits is considered when looking to the future. Increased property valuation from new properties on future tax rolls will make up for the substantial loss of this revenue source along with increased collections of sales taxes and franchise fees. Sales Tax Breakdown State of Texas 6.25% Trophy Club 1.00% TC Economic Development 0.50% Street Maintenance 0.25% CCPD 0.25% Total 8.25% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 FY 13 Actual FY 14 Actual FY15 Estimate FY16 Adopted FY17 Planning FY18 Planning 53 Trophy Club, TX | Annual Program of Services FY15-16 Budget 53 Fines and Fees are charges for utilizing a government service or receiving a penalty. The main revenue sources for Fines and Fees are development related fees, recreational fees, and court related fines and fees. • Development-related fees (composed of P & Z Administrative Fees, Developer Fees, Zoning Fees, and Platting Fees) are expected to sharply decrease $130,722 or 94.57% compared to the FY15 estimate due to new developments reaching build-out. The majority of revenue received is from Developer Fees. These fees sharply increased from FY 2011-2012 due to new residential development, but with development coming to a close, revenues are projected to decrease steeply. • The Municipal Court derives its revenues from citations primarily associated with motor vehicles, misdemeanors, and code enforcement. The fines and fees from the Municipal Court have remained fairly constant and are projected to remain steady for the next three years. • Recreation-based revenues stem from the pool, community events, and day camp. Pool entry fee revenue was lower than expected in FY15 due to an extremely wet summer for the area. As the population increases, recreation-based revenues are projected to increase. This revenue source overall is projected to increase $36,962 or 13.38% over the FY15 estimate. In general, Fines and Fees are projected to decrease $103,498 or 19.76% from the Fiscal Year 2015 estimate due to a decrease in building-related fees as the Town approaches build-out. Fines and Fees are expected to stabilize over the next three fiscal years. One factor that might cause a slight increase in revenue would be unforeseen commercial development, which has not been programmed into the future forecast. Interest Income is expected to increase $11,000 or 157.14% from the FY15 Estimate, primarily due to the investment of fund balance in Certificates of Deposit (CD) that yield a higher interest rate than the Town’s interest bearing accounts. The Town of Trophy Club maintains an investment policy to ensure the safety of principle, maintain sufficient liquidity to meet operational needs, maintain the trust of the public, and optimize interest earnings. Miscellaneous Revenues represent unanticipated revenues as well as minor sources not contained in other categories. Included in this category are other various non-routine revenues received during the year. Tower rental and gas well revenues also fall into this category. This revenue category is expected to increase due to a new ground lease with Sprint, cell tower revenue from Verizon, and a one-time payment of $156,700 from Sprint. In total, miscellaneous revenue is projected to increase $150,895 or 169.35% over the FY15 estimate. Fines & Fees Revenue General Fund Revenues $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 FY 13 Actual FY 14 Actual FY15 Estimate FY16 Adopted FY17 Planning FY18 Planning Development-Related Revenue Municipal Court Revenue Recreational Revenue Police Revenue Other Fines & Fees 54 Trophy Club, TX | Annual Program of Services FY15-16 Budget 54 FY13 Actual FY14 Actual FY15 Budget FY15 Estimate FY16 Adopted FY17 Planning FY18 Planning Property Tax Property Taxes $ 4,081,555 $ 4,517,989 $ 5,138,466 $ 5,160,298 $ 5,776,544 $ 6,107,903 $ 6,281,686 Property Taxes/Delinquent 46,578 18,045 15,000 40,000 15,000 15,000 15,000 Property Taxes/P & I 21,767 11,867 13,000 20,000 10,000 10,000 10,000 TOTAL PROPERTY TAXES $ 4,149,900 $ 4,547,901 $ 5,166,466 $ 5,220,298 $ 5,801,544 $ 6,132,903 $ 6,306,686 SALES TAXES Sales Tax - General $ 592,638 $ 641,946 $ 654,543 $ 698,684 $ 730,218 $ 853,497 $ 873,694 Mixed Beverage Tax 17,251 20,777 21,780 21,816 22,907 28,633 31,497 TOTAL SALES TAXES $ 609,889 $ 662,723 $ 676,324 $ 720,501 $ 753,125 $ 882,131 $ 905,191 FRANCHISE FEES Electric $ 358,644 $ 360,796 $ 389,270 $ 384,940 $ 399,347 $ 410,837 $ 418,807 Cable 184,833 207,906 221,453 235,144 251,914 256,953 262,092 Refuse 73,020 85,739 82,905 81,928 142,560 130,080 116,640 Gas 48,288 64,470 69,690 82,459 103,074 105,135 107,238 Telecommunications 54,168 53,710 49,188 50,870 50,362 48,687 47,596 TOTAL FRANCHISE FEES $ 718,952 $ 772,621 $ 812,506 $ 835,341 $ 947,257 $ 951,693 $ 952,372 LICENSES AND PERMITS Building Permits $ 781,820 $ 699,466 $ 500,952 $ 515,848 $ 374,052 $ 106,000 $ 81,000 Fire Permits/Sprinkler 125 ------ Miscellaneous Permits 155,509 194,267 209,679 207,946 184,554 175,326 166,560 Plumbing Permits 10,416 ------ TOTAL LICENSES AND PERMITS $ 947,870 $ 893,733 $ 710,631 $ 723,794 $ 558,606 $ 281,326 $ 247,560 INTERGOVERNMENTAL MUD Service Contract $ 85,465 $ 77,048 $ 26,271 $ 26,170 $ -$ -$ - Intergov Transfer In MUD 41,116 10,373 10,996 10,000 --- Intergov Transfer In EDC 52,239 299,458 155,634 89,964 --- Recovery of Prior Year Expense 5,869 ------ TOTAL INTERGOVERNMENTAL $ 184,689 $ 386,879 $ 192,901 $ 126,134 $ - $ - $ - GRANT REVENUE Grant Revenue $ 75,599 $ 58,892 $ 77,018 $ 77,018 $ -$ -$ - TOTAL GRANT REVENUE $ 75,599 $ 58,892 $ 77,018 $ 77,018 $ - $ - $ - CHARGES FOR SERVICES EMS Runs $ 138,509 $ 174,064 $ 150,072 $ 158,434 $ 160,018 $ 161,619 $ 163,235 CIA Lien Revenues - 145 - 1,350 - - - PID Reimbursement 43,400 8,825 8,000 47,715 8,000 8,000 8,000 NISD Contract 53,685 53,685 102,780 102,779 106,891 109,477 112,761 TOTAL CHARGES FOR SERVICES $ 235,594 $ 236,719 $ 260,852 $ 310,278 $ 274,909 $ 279,096 $ 283,996 General Fund Revenue Detail Summary 55 Trophy Club, TX | Annual Program of Services FY15-16 Budget 55 FINES AND FEES FY13 Actual FY14 Actual FY15 Budget FY15 Estimate FY16 Adopted FY17 Planning FY18 Planning P & Z Administrative Fees $ 4,364 $ 4,620 $ 3,000 $ 1,800 $ 1,500 $ 1,500 $ 1,500 Developer Fees 214,019 132,063 30,000 135,622 5,000 5,000 5,000 Zoning Fees 6,141 - - 300 - - - Platting Fees 8,585 4,122 3,000 500 1,000 1,000 1,000 Denton/Tarrant County Pledge - EMS 5,305 5,554 5,000 5,562 5,500 5,500 5,500 Municipal Court Fines/Fees 150,905 114,212 128,750 100,231 103,238 106,335 109,525 Municipal Court Child Safety Fees 9,709 4,559 5,665 4,071 4,194 4,319 4,449 Day Camp Programs 49,298 54,128 60,000 62,815 60,600 61,206 61,818 Aquatic Programs 18,099 15,644 19,190 11,500 19,382 19,576 19,772 Recreation Programs 2,015 4,747 - - - - - Pool Concessions 20,716 24,633 23,000 21,000 23,000 23,000 23,000 Pool Entry Fees 92,879 110,604 123,789 100,000 126,265 128,790 131,366 Swim Team Programs 26,550 28,576 26,260 37,100 29,150 29,442 29,736 Records Management Revenue 371 336 500 700 500 500 500 Golf Cart Registration 1,325 1,775 1,000 1,200 1,000 1,000 1,000 City Vehicle Registration Fees/ Child Safety 10,471 10,797 10,000 12,000 10,000 10,000 10,000 Community Events Revenue 7,227 6,010 1,200 1,000 1,500 1,500 1,700 Convenience Fees 1,627 1,390 1,267 4,500 4,050 3,645 3,281 Animal Control 3,322 4,183 3,500 3,500 3,500 3,500 3,500 Miscellaneous Police Revenue 1,476 2,156 1,500 300 1,500 1,500 1,500 Pool Rentals 10,205 13,990 19,480 13,000 19,480 19,480 19,480 TC Magazine - 7,800 - 7,155 - - - TOTAL FINES AND FEES $ 644,609 $ 551,899 $ 466,101 $ 523,856 $ 420,359 $ 426,793 $ 433,626 INTEREST INCOME Interest Income $ 4,919 $ 2,942 $ 6,000 $ 7,000 $ 18,000 $ 22,000 $ 26,000 TOTAL INTEREST INCOME $ 4,919 $ 2,942 $ 6,000 $ 7,000 $ 18,000 $ 22,000 $ 26,000 MISCELLANEOUS Auction Sales $ - $ - $ - $ 5,450 $ - $ - $ - Gas Well Revenues 1,512 198 - - - - - Donation - 260 - 1,905 - - - Tower Revenue 37,375 31,625 34,500 28,750 181,000 24,300 24,300 Recreation Rentals 18,229 36,350 33,000 33,000 34,000 35,000 36,000 Miscellaneous Revenue 146,650 41,188 51,050 20,000 25,000 25,750 26,523 TOTAL MISCELLANEOUS $ 203,766 $ 109,621 $ 118,550 $ 89,105 $ 240,000 $ 85,050 $ 86,823 TOTAL REVENUES $ 7,775,787 $ 8,223,930 $ 8,487,349 $ 8,633,325 $ 9,013,800 $ 9,060,992 $ 9,242,254 General Fund Revenue Detail Summary 56 Trophy Club, TX | Annual Program of Services FY15-16 Budget 56 General Fund Expenditures Personnel – Personnel related expenditures are expected to increase $322,415 or 5.4% in FY16 from the FY15 estimate. New personnel changes for FY16 include: new Police Officer, Sergeant promotion for an existing Police Officer, new Firefighter/Paramedic (50% funded by Trophy Club MUD #1), Intern/ part-time Network Specialist, and crossing guard, Full-Time Equivalents (FTE) changed from 3.60 FTE’s to 3.15 FTE’s based on updated work schedules. The FY16 Budget includes a point/performance based merit distribution of up to 2% per employee/evaluation on October 1st and April 1st, an annual stipend of $750 per employee, and Police Salary True-Up with base pay increases of up to 4% or adjustment to salary range minimum on October 1st (not be eligible for additional 2% on October 1st). Services & Supplies – The services and supplies budget increased 12.97% from the FY15 estimate with 2.89% of that increase coming from supplemental items. Any new programs that require the purchase of services or supplies will be carefully examined in the context of any potential revenue they generate and benefit they bring to Town citizens. Capital – Capital expenditures are expected to increase $61,352 or 29.01% from the FY15 estimate. General Fund equipment replacement budgeted for FY16 includes: a Police patrol vehicle, grandstand lawnmower, bleacher program for Harmony Park, slide run and barrier reconfiguration for pool, spray pad feature refurbishment for pool, small pool resurface, small pool filter replacement, various IT related replacements, and Stryker Power Cot for EMS (replaces manual cot). FY 2015 Budget FY 2015 Estimate FY 2016 Adopted % Change (From FY15 Budget) % Change (From FY15 Estimate) Personnel $ 6,027,652 $ 5,923,406 $ 6,245,821 3.62%5.44% Services & Supplies 1,954,139 1,892,203 2,137,625 9.39%12.97% Capital 275,803 211,511 272,863 -1.07%29.01% TOTAL $ 8,257,594 $ 8,027,120 $ 8,656,309 4.83%7.84% Expenditures by Category 57 Trophy Club, TX | Annual Program of Services FY15-16 Budget 57 THE MANAGER’S OFFICE Mission To provide leadership and direction for the Trophy Club team by utilizing the best management practices, progressive thinking and planning, as well as promoting a positive public image of the organization and the Town on both a local and regional basis. The Manager’s Office seeks to support the Town’s mission by building strong partnerships and deepening community involvement, creating business-friendly economic development, fostering environmentally sound policies, ensuring the safety and security of all residents and staff, and maintaining financial and operational stewardship. Top 3 Accomplishments for FY15 • Successfully negotiated property acquisitions for joint Town Hall and Police Facility and two Trophy Wood properties • Successfully recruited Bread Winners & Quarter Bar and Meat U Anywhere • Launched ‘No Soliciting’ sign program Strategic Planning Goal 1- Facilitate staff efforts to fulfill day-to-day requirements for the Town as well as Council goals • Manage day-to-day Town operations • Implement FY16 Budget • Foster a positive work environment • Strategic planning retreats with Town Council and Management Team Goal 2- Meet and negotiate with various representatives, local and otherwise, on behalf of the Town • Continue to partner with government entities to seek opportunities on regional services and programs • Continue to partner with the Metroport Chamber of Commerce, Metroport Cities, Northwest Communities, Trophy Club Country Club, and other local and regional organizations Goal 3- Act in a leadership role for the staff and spearhead Council initiatives • Continue to plan and act accordingly to evaluate land acquisition opportunities • Continue developing communication initiatives such as newsletters, Annual Report, website, etc • Town fiscal integrity • Continue to update and maintain Town codification • Implement Vision 2030 • Manage Capital Improvement Projects Goal 4- Work with Economic Development to attract new businesses to the Town • Host developers/business Alliance Development Forum • Continue to work with commercial property owners and brokers to attract and retain businesses • Work with EDC 4B on strategic business attraction, development, and retention • Continue to focus and develop Trophy Club and regional marketing initiatives Goal 5- Spearhead new programs and Town initiatives to foster Town progress and long-term growth • Review Town ordinances and codes for appropriate updates • Continue to seek and apply for award recognition 58 Trophy Club, TX | Annual Program of Services FY15-16 Budget 58 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $495,718 $562,769 $682,554 $757,082 $928,877 $689,144 -9% Services & Supplies 141,040 144,397 147,049 142,856 123,300 154,385 8% TOTAL $636,758 $707,166 $829,603 $899,938 $1,052,177 $843,529 -6% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE # of weekly updates for the Town Council 36 49 34 52 52 # of recognitions from local, state, national, and media organizations 5 3 6 4 5 Performance Measure: Open Records Requests (ORRs) Turnaround FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Percent of ORRs completed within 5 Days ---67.19%75.00% Average # of Days to Process --- 4.14 < 5.00 # of ORRs Processed 288 332 334 192 120 Explanation State law requires that municipal governments provide ORRs back to the requester within 10 business days. Council Objective Operating a limited government with maximum transparency. Measure It is the Town’s goal to process all routine ORR within five business days. PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED TOWN MANAGER 1.00 1.00 1.00 ASSISTANT TOWN MANAGER 1.00 1.00 1.00 TOWN SECRETARY 1.00 1.00 1.00 EXECUTIVE SECRETARY 1.00 1.00 1.00 ECONOMIC DEVELOPMENT COORDINATOR 1.00 0.00 0.00 PIO/MARKETING MANAGER 1.00 1.00 1.00 TOTAL FTEs 6.00 5.00 5.00 59 Trophy Club, TX | Annual Program of Services FY15-16 Budget 59 Managers Office FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $382,616 $416,592 $489,071 $523,682 $ 688,406 $ 507,062 $ 524,809 $ 543,177 Longevity 1,288 1,728 1,583 1,863 1,883 1,168 1,528 1,888 Stipend - 10,000 7,200 4,500 4,000 3,000 3,750 3,750 Retirement 53,290 64,353 93,378 115,002 128,400 77,518 81,394 85,464 Medical Insurance 18,770 19,864 34,842 51,838 45,350 49,631 52,113 54,718 Dental Insurance 1,501 1,709 2,828 3,828 3,250 3,234 3,396 3,565 Vision Insurance 383 422 654 819 685 624 655 688 Life Insurance & Other 1,172 3,886 2,840 3,445 3,115 3,227 3,388 3,558 Social Security Taxes 21,813 23,950 27,690 29,400 32,200 27,497 28,459 29,455 Medicare Taxes 5,578 6,250 7,207 7,686 9,904 7,413 7,672 7,941 Unemployment Taxes 1,086 58 1,247 1,242 2,020 1,035 1,071 1,109 Workman’s Compensation 796 1,192 1,377 1,327 1,459 1,285 1,330 1,377 Pre-Employment Physical/Testing 62 125 105 - 115 - - - Auto Allowance 7,207 12,161 12,039 12,000 7,640 6,000 6,000 6,000 Employee Relations 157 482 493 450 450 450 450 450 Total Personnel $ 495,718 $ 562,769 $ 682,554 $ 757,082 $ 928,877 $ 689,144 $ 716,016 $ 743,140 Services/Supplies Professional Outside Services $ 9,475 $ 7,500 $ 8,911 $ 2,000 $ - $ 2,000 $ 2,000 $ 2,500 TC Magazine - - - - 13,050 - - - Records Management 1,316 1,451 1,628 1,584 1,988 2,042 2,097 2,154 Newsletter/Year-In-Review 10,000 4,720 6,634 10,000 10,000 10,600 11,000 11,500 Elections 5,509 25,627 16,351 24,000 12,000 22,000 8,000 8,000 Meals on Wheels 3,000 2,000 2,000 - - - - - Advertising 1,661 1,516 2,302 3,000 1,500 3,900 3,900 3,900 Printing 290 94 144 2,000 1,500 2,980 2,980 3,050 Schools & Training 4,752 1,433 3,665 3,775 3,920 4,255 4,505 4,305 Service Charges & Fees 723 - - - - - - - Telephone 750 1,205 200 500 - - - - Communications/Pagers/Mobiles 2,094 2,541 4,326 4,980 3,800 4,060 4,060 4,060 Independent Labor 1,783 1,625 1,652 1,700 1,700 1,800 1,800 2,000 Dues & Membership 15,322 12,386 15,096 19,294 17,199 20,775 21,102 21,465 Travel & Per Diem 7,162 3,696 6,450 7,678 4,915 7,938 7,810 7,885 Meetings 7,880 6,591 3,949 9,608 8,080 9,688 9,814 10,824 Office Supplies 4,935 3,041 2,672 3,000 2,500 3,500 3,500 3,500 Postage 1,368 2,043 1,727 2,187 1,500 2,300 2,425 2,550 Publications/Books/Subscriptions 281 283 199 48 48 48 48 48 Mayor/Council Expense 44,759 34,298 23,419 20,402 13,100 23,399 24,274 24,889 Furniture/Equipment <$5,000 3,764 60 1,943 - 500 1,000 1,000 1,000 Maintenance Supplies 82 51 - 100 - - - - Contingency Expense 14,136 24,669 42,495 25,000 25,000 25,000 25,000 35,000 Miscellaneous Expense - 7,567 1,287 2,000 1,000 7,100 7,100 7,200 Incentive Program - - - - - - 9,425 9,708 Total Services/Supplies $ 141,040 $ 144,397 $ 147,049 $ 142,856 $ 123,300 $ 154,385 $ 151,840 $ 165,538 Total Expenditures $ 636,758 $ 707,166 $ 829,603 $ 899,938 $ 1,052,177 $ 843,529 $ 867,856 $ 908,678 60 Trophy Club, TX | Annual Program of Services FY15-16 Budget 60 LEGAL Mission To assist the Town of Trophy Club in achieving its goals and objectives by providing legal services that offer efficient and ethical Town representation consistent with professionally-accepted legal practices. Top 3 Accomplishments for FY15 • Town Hall and EDC land purchase transactions • Old Town Development economic development contracts • Sign ordinance Strategic Planning Goal 1- Provide legal support to Council and Town staff • Legislation • Municipal Court/Police • Legal advice/briefings • Zoning and development • Code enforcement Goal 2- Provide efficient and effective legal representation • Identification of liability risks • Joint governmental contracts Goal 3- Promote positive recognition and reputation with the general public and external contacts • Encourage regional positive recognition • Promote professional development • Provide direct contact to residents Goal 4- Proactively reduce liability to Town by having risk management services • Develop inspection procedures • Safety protocols and training for departments • Claims management • Personnel policy interpretation Goal 5- Increase efforts to collect monies due to the Town in a timely manner • PID • Facility damages • Court 61 Trophy Club, TX | Annual Program of Services FY15-16 Budget 61 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $140,092 $147,427 $155,337 $162,446 $162,018 $165,480 2% Services & Supplies 14,143 23,731 41,183 30,943 15,945 31,492 2% TOTAL $154,236 $171,157 $196,520 $193,389 $177,963 $196,972 2% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE # of Ordinances/Resolutions/documents reviewed/prepared 250 275 275 260 250 # of Requests for general legal research/ advice 1,175 1,500 1,510 1,510 1,500 # of Agendas reviewed 39 41 41 40 40 # of cases prosecuted -182 370 336 300 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED TOWN ATTORNEY 1.00 1.00 1.00 TOTAL FTEs 1.00 1.00 1.00 62 Trophy Club, TX | Annual Program of Services FY15-16 Budget 62 LEGAL FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $110,636 $112,759 $115,964 $116,233 $118,419 $122,200 $126,477 $130,904 Longevity - 878 968 1,058 1,060 1,148 1,238 1,328 Stipend - 2,500 1,800 750 750 750 750 750 Retirement 15,370 16,265 20,860 28,203 25,100 24,820 26,061 27,364 Medical Insurance 4,432 4,463 5,334 5,570 5,730 5,781 6,070 6,374 Dental Insurance 344 363 364 387 440 414 435 456 Vision Insurance 82 81 81 81 88 81 85 89 Life Insurance & Other 366 1,238 692 696 710 716 752 789 Social Security Taxes 6,772 6,960 7,129 7,254 7,600 7,254 7,508 7,771 Medicare Taxes 1,601 1,677 1,722 1,712 1,810 1,799 1,862 1,927 Unemployment Taxes 261 9 207 207 50 207 214 222 Workman's Compensation 229 234 216 295 261 310 321 332 Total Personnel $140,092 $147,427 $155,337 $162,446 $162,018 $165,480 $171,773 $178,306 Services/Supplies Professional Outside Services $4,421 $13,225 $33,024 $20,000 $5,200 $20,000 $20,000 $20,000 Schools & Training 175 250 270 450 450 450 475 475 Telephone 90 258 7 76 - - - - Communications/Pagers/Mobiles 641 564 614 624 624 696 696 696 Dues & Membership 380 390 315 475 500 495 515 535 Travel & Per Diem 1,192 1,269 559 1,500 1,000 1,550 1,600 1,650 Office Supplies 5 132 147 130 100 130 130 130 Postage 5 - - 10 50 50 50 50 Publications/Books/Subscriptions 7,235 7,643 6,247 7,628 8,021 8,021 8,062 8,288 Miscellaneous Expenses - - - 50 - 100 100 100 Total Services/Supplies $14,143 $23,731 $41,183 $30,943 $15,945 $31,492 $31,628 $31,924 Total Expenditures $154,236 $171,157 $196,520 $193,389 $177,963 $196,972 $203,401 $210,230 63 Trophy Club, TX | Annual Program of Services FY15-16 Budget 63 POLICE Mission To promote and maintain a safe and peaceful community and enforce all laws without prejudice or bias, utilizing proactive partnerships to anticipate and meet the challenges of our changing environment. We will accomplish this mission by standing committed to a standard of excellence and maintaining that we are accountable for our actions to one another and the community we serve. Top 3 Accomplishments for FY15 • An inventory of all Police equipment was completed • A complete overhaul of the evidence room along with the completion of court orders to destroy all items from closed cases • Upgraded to new HD Wide angle body camera systems Strategic Planning Goal 1- Enhance public safety and reduce disorderly behavior • Preventive patrol of burglary prone areas • Enhance follow-up investigations with technological assets • Improve community service training Goal 2- Enhance community policing strategies • Bicycle patrol/rodeos • National Night Out Against Crime • Safety Fair in conjunction with Fire Department • Continue School Resource Officer Program Goal 3- Enhance community service opportunities • Citizens’ Police Academy – maintain one per year • Increase Citizens on Patrol participation Goal 4- Further enhance reputation of department • Continue to pursue recognition program Goal 5- Improve communications with community • Increase use of Connect CTY 64 Trophy Club, TX | Annual Program of Services FY15-16 Budget 64 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Personnel $1,369,687 $1,595,503 $1,785,362 $1,868,734 $1,743,557 $2,022,142 8% Services & Supplies 196,455 376,205 230,562 241,364 261,472 284,929 18% Capital 72,721 96,601 49,105 - - 45,800 N/A TOTAL $1,638,863 $2,068,309 $2,065,029 $2,110,098 $2,005,029 $2,352,871 12% PERFORMANCE MATRIX Performance Measure - Volunteer Hours FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL # of citizen volunteer hours with the police department 3,000 3,000 3,407 4,709 3,700 Explanation Utilization of volunteers saves the Town and Trophy Club Tax payers money, as well as increases the service level that the police can provide. Council Objective Exceed high standards for public safety and low crime rate. Measure It is the Town’s goal to utilize the citizen volunteers for at least 3,700 hours for FY16. Performance Measure -Police Response Time (Priority 1 Calls) FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Average response time for calls for assistance (Min)--1.94 Min 1.88 Min < 2.00 Min Explanation Lower response time is commonly associated with community security and citizens satisfaction. Priority 1 calls are those deemed critical. Council Objective Exceed high standards for public safety and low crime rate. Measure It is the Town’s goal to have under a 2 minute average response time for Priority 1 calls. 65 Trophy Club, TX | Annual Program of Services FY15-16 Budget 65 Police FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 949,327 $ 1,137,839 $ 1,208,716 $ 1,249,755 $ 1,189,046 $ 1,386,202 $ 1,434,719 $ 1,484,934 Overtime 59,287 44,773 56,032 46,324 65,086 61,420 63,570 65,795 Longevity 8,578 10,140 11,828 12,728 12,073 11,170 12,880 14,590 Stipend - 20,000 24,900 15,750 16,600 15,750 16,500 16,500 Certification 6,575 1,025 14,049 12,000 11,600 10,200 10,200 10,200 Holiday Pay 17,007 - 24,890 25,080 20,000 30,327 31,388 32,487 Retirement 133,034 157,574 183,548 217,589 169,593 186,621 195,952 205,750 Medical Insurance 80,859 87,756 109,937 127,636 109,716 143,875 151,069 158,622 Dental Insurance 7,072 8,298 9,150 10,321 8,679 10,478 11,002 11,552 Vision Insurance 1,709 1,963 2,165 2,271 1,901 2,352 2,470 2,593 Life Insurance & Other 5,405 14,931 9,769 10,882 8,980 12,336 12,953 13,600 Social Security Taxes 61,328 71,609 79,741 83,445 75,697 92,390 95,624 98,970 Medicare Taxes 14,347 16,748 18,649 19,752 17,502 21,969 22,738 23,534 Unemployment Taxes 6,061 678 5,594 5,085 3,870 5,001 5,176 5,357 Workman's Compensation 17,272 19,382 23,699 27,116 30,514 28,851 29,861 30,906 Pre-Employment Physicals/Testing 660 2,639 714 1,200 1,100 2,000 1,500 1,500 Clothing Allowance 1,168 150 1,979 1,800 1,600 1,200 - - Total Personnel $ 1,369,687 $ 1,595,503 $ 1,785,362 $ 1,868,734 $ 1,743,557 $ 2,022,142 $ 2,097,601 $ 2,176,891 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED POLICE CHIEF 1.00 1.00 1.00 POLICE LIEUTENANT 1.00 1.00 1.00 CID SERGEANT 0.00 1.00 1.00 POLICE SERGEANT 3.00 3.00 4.00 ANIMAL CONTROL OFFICER 1.00 1.00 1.00 DETECTIVE/JUVENILE INVESTIGATOR 1.00 1.00 1.00 SCHOOL RESOURCE OFFICER 2.00 2.00 2.00 POLICE OFFICER 11.00 10.00 10.00 POLICE ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 SEASONAL SCHOOL CROSSING GUARDS 3.60 3.60 3.15 TOTAL FTEs 24.60 24.60 25.15 66 Trophy Club, TX | Annual Program of Services FY15-16 Budget 66 Police FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services & Supplies Professional Outside Services $ - $ - $ - $ - $ 9,500 $ 14,500 $ 2,500 $ 2,750 Advertising - - 148 - - 7,000 5,000 5,000 Printing 583 606 339 800 800 700 600 600 Schools & Training 4,181 4,918 6,693 5,500 6,000 9,900 8,800 9,650 Electricity 12,907 18,317 15,953 18,500 15,000 15,500 16,000 16,500 Water 873 802 1,203 1,500 1,100 1,650 1,700 1,750 Telephone 975 1,520 221 1,000 - - - - Communications/Pagers/Mobiles 7,045 8,292 9,654 12,864 13,124 13,189 13,189 13,189 Building Maintenance 10,264 148,093 6,457 12,500 18,850 12,500 12,500 12,500 Vehicle Maintenance 19,041 21,022 30,551 21,730 19,000 20,000 20,000 21,200 Equipment Maintenance 4,120 4,373 3,813 4,250 4,500 3,450 3,450 4,550 Cleaning Services 560 - - - 400 - - - Qualifying Expenses 3,168 3,867 981 5,400 5,400 11,400 7,100 7,100 Emergency Management 1,000 2,000 - 2,000 1,500 2,000 2,000 2,000 Dispatch - Denton County 45,553 51,141 51,141 34,600 34,600 33,000 42,000 42,000 Independent Labor 4,150 2,550 4,710 6,000 6,000 7,000 7,500 8,500 Dues & Membership 1,724 2,003 1,702 2,250 1,250 1,500 1,500 1,650 Travel & Per Diem 3,725 3,053 5,024 5,000 5,400 8,500 7,000 7,500 Meetings 282 75 153 375 240 500 500 500 Office Supplies 1,564 2,638 2,087 2,500 2,500 2,350 2,350 2,450 Postage 351 383 1,099 900 500 550 550 550 Publications/Books/Subscription 1,396 - 1,296 350 500 1,600 600 1,600 Fuel 40,647 55,886 48,207 58,995 34,000 42,240 45,000 50,000 Uniforms 4,777 12,281 14,319 14,500 20,000 17,500 15,300 15,800 Protective Clothing 3,319 8,334 2,268 3,950 7,600 900 - - Investigative Materials 1,780 4,073 6,041 6,500 6,808 6,000 6,000 6,000 Golf Cart Stickers - 425 - - - 750 - 500 Animal Control 7,288 4,399 4,772 6,250 6,250 6,250 6,250 6,750 Small Equipment 10,696 9,583 4,382 6,150 8,150 9,200 3,600 3,600 Furniture/Equipment <$5,000 225 1,691 479 2,000 2,500 2,000 2,000 2,000 Maintenance Supplies 2,283 2,370 2,832 2,000 2,500 2,600 2,600 1,000 Miscellaneous Expenses 1,460 736 750 1,500 2,000 1,500 1,500 1,500 Programs & Special Projects 521 773 3,286 1,500 25,500 29,200 16,200 16,200 Total Services/Supplies $ 196,455 $ 376,205 $ 230,562 $ 241,364 $ 261,472 $ 284,929 $ 253,289 $ 264,889 Capital Capital Outlay $ 72,721 $ 96,601 $ 49,105 $ - $ - $ 45,800 $ 34,500 $ 63,500 Total Capital $ 72,721 $ 96,601 $ 49,105 $ - $ - $ 45,800 $ 34,500 $ 63,500 Total Expenditures $ 1,638,863 $ 2,068,309 $ 2,065,029 $ 2,110,098 $ 2,005,029 $ 2,352,871 $ 2,385,390 $ 2,505,280 67 Trophy Club, TX | Annual Program of Services FY15-16 Budget 67 EMERGENCY MEDICAL SERVICES Mission To provide quality service to the citizens of Trophy Club by providing timely and efficient response to fire, medical, rescue, and calls for public service. Our mission enhances the Town’s mission by providing a safe and secure environment to all Town residents as well as developing strong partnerships and community involvement. Top 3 Accomplishments for FY15 • Medical Education with Baylor Scott & White • Medical Control through BEST (Blue Emergency Services Team) Dr. Justin Northeim • 11 scheduled CPR Classes, 56 participants Strategic Planning Goal 1- Provide quality service to the citizens • Educational classes • Emergency response • Program development Goal 2- Provide and maintain community education programs • CPR classes • School education • Citizen Fire Academy • Home inspection programs Goal 3- Program development for corporate and Town staff • Day camp programs • Staff safety awareness classes • Citizens Fire Academy • EMS Training Goal 4- Resource management and working agreements with regional assets • Medical control - Baylor Scott & White - BEST Medical Control • Northeast Fire Department Association (NEFDA) • Denton and Tarrant County Interlocal Agreement Goal 5- Program development that maintains our ability to collect and support billing and records management • Intermedix contract 68 Trophy Club, TX | Annual Program of Services FY15-16 Budget 68 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Personnel $588,560 $658,407 $711,887 $764,304 $749,373 $793,590 4% Services & Supplies 64,700 63,919 64,208 73,058 77,723 104,469 43% Capital 41,879 46,041 32,693 179,360 18,000 18,000 -90% TOTAL $695,139 $768,367 $808,788 $1,016,722 $845,096 $916,059 -10% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE EMS alarms responded to 350 359 395 463 473 Medical transports completed 270 262 242 232 240 Continuing education training hours (total employees)675 675 804 774 800 Performance Measure - Response Time FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Average response time (in-district)4:57 5:07 5:35 5:42 < 6:00 Response time to EMS alarms in less than six minutes 72%70%62%56%75% Explanation The sooner emergency responders can arrive the sooner life saving support can be given. This number not only affects the number of lives saved but also insurance rates within the Town. Council Objective Exceed high standards for public safety and low crime rate. Measure It is the Town’s goal to respond to in district EMS alarms in less than six minutes. PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FIRE CHIEF 0.50 0.50 0.50 FIRE CAPTAIN 1.50 1.50 1.50 DRIVER/ENGINEER 1.50 1.50 1.50 FIREFIGHTER/PARAMETIC 4.00 4.00 4.50 PART-TIME FIREFIGHTER 0.30 0.30 0.30 TOTAL FTEs 7.80 7.80 8.30 69 Trophy Club, TX | Annual Program of Services FY15-16 Budget 69 EMS FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 395,406 $ 443,107 $ 455,011 $ 471,029 $ 476,000 $ 500,453 $ 517,969 $ 536,098 Overtime 36,777 40,233 40,075 45,258 44,000 48,735 50,441 52,206 Longevity 3,271 4,099 4,655 5,501 5,300 5,761 6,511 7,261 Stipend - 8,575 9,150 11,250 10,200 11,250 12,000 12,000 Certification 1,350 360 5,119 4,800 5,060 4,200 4,200 4,200 Holiday Pay 8,829 - 13,290 14,749 14,500 15,873 16,429 17,004 Retirement 59,260 67,164 75,410 91,367 74,950 76,167 79,975 83,974 Medical Insurance 36,711 41,410 54,500 59,167 60,900 65,597 68,877 72,321 Dental Insurance 3,209 3,775 4,154 4,387 4,388 4,871 5,115 5,370 Vision Insurance 723 783 824 807 782 859 902 947 Life Insurance & Others 2,085 5,835 3,861 4,030 3,881 4,585 4,814 5,055 Social Security Taxes 25,613 28,357 30,189 33,563 33,146 35,675 36,924 38,216 Medicare Taxes 5,990 6,632 7,062 8,013 7,581 8,507 8,805 9,113 Unemployment Taxes 2,046 206 1,648 1,620 - 1,699 1,758 1,820 Workman's Compensation 7,222 7,421 6,768 8,763 8,425 9,358 9,686 10,025 Pre-Employment Physicals/Testing 67 451 171 - 260 - - - Total Personnel $ 588,560 $ 658,407 $ 711,887 $ 764,304 $ 749,373 $ 793,590 $ 824,404 $ 855,609 70 Trophy Club, TX | Annual Program of Services FY15-16 Budget 70 EMS FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services/Supplies Collection Fees $ 18,071 $ 10,514 $ 14,989 $ 14,006 $ 17,500 $ 18,000 $ 18,000 $ 18,000 Hazmat Disposal 2,576 499 3,194 500 1,150 1,131 1,131 1,131 Radios - - - 500 335 1,000 1,000 1,000 Schools & Training 1,989 1,732 1,150 1,575 1,100 3,830 2,830 2,830 Electricity - 4,021 6,960 6,700 7,200 7,400 7,600 7,800 Water - 984 1,353 1,750 1,500 1,900 1,950 2,000 Telephone 157 226 7 120 - - - - Communications/Pagers/Mobiles 4,870 3,555 2,658 2,616 2,200 2,790 2,790 2,790 Building Maintenance - 110 326 200 700 700 700 700 Vehicle Maintenance 3,437 4,859 5,424 4,500 4,500 9,200 6,500 9,200 Equipment Maintenance 1,623 1,541 799 4,700 4,000 5,700 5,700 5,700 Emergency Management - - - - 2,180 2,500 2,500 2,500 Dispatch - Denton County - 1,315 1,295 2,216 2,216 2,379 2,379 2,379 Dues & Membership 474 800 1,727 1,332 1,432 884 884 884 Flags & Repairs 4,687 2,462 1,767 2,000 2,000 2,000 2,000 2,000 Travel & Per Diem 1,801 1,748 636 1,600 800 2,325 2,325 2,325 Meetings 75 22 28 100 100 100 100 100 Safety Programs - - - 500 500 1,170 920 920 Inspection Fees - - - - - 870 - 870 Office Supplies 101 103 180 150 150 225 225 225 Postage 53 44 12 70 70 100 100 100 Publications/Books/Subscriptions - - - 200 200 300 300 300 Fuel 5,756 6,034 5,714 6,423 6,250 8,060 8,250 8,500 Uniforms 3,177 2,566 2,698 2,500 2,500 3,140 2,515 2,000 Medical Control 3,024 6,924 3,024 7,000 7,000 12,750 12,750 12,750 Pharmacy 3,512 2,382 2,579 2,750 2,750 3,710 3,710 3,710 Oxygen 674 1,241 1,078 900 900 1,050 1,050 1,050 Disposable Supplies 7,739 6,747 5,949 5,400 5,400 6,140 6,140 6,140 Small Equipment 875 2,906 - 2,200 2,540 4,740 3,450 2,500 Maintenance Supplies - - - 150 150 150 150 150 Miscellaneous Expense 31 584 663 400 400 225 225 225 Total Services/Supplies $ 64,700 $ 63,919 $ 64,208 $ 73,058 $ 77,723 $ 104,469 $ 98,174 $ 100,779 Capital Capital Outlay $ 41,879 $ 46,041 $ 32,693 $ 179,360 $ 18,000 $ 18,000 $ 232,000 $ 8,800 Total Capital $ 41,879 $ 46,041 $ 32,693 $ 179,360 $ 18,000 $ 18,000 $ 232,000 $ 8,800 Total Expenditures $ 695,139 $ 768,367 $ 808,788 $ 1,016,722 $ 845,096 $ 916,059 $ 1,154,578 $ 965,188 71 Trophy Club, TX | Annual Program of Services FY15-16 Budget 71 STREETS Mission To provide a safe, clean, and well-maintained roadway system to the residents of Trophy Club. Top 3 Accomplishments for FY15 • Complete re-construction of a portion of Indian Creek in time and under budget • Annual street re-striping 41,500 feet • Completed Hazardous Mitigation Action Plan Strategic Planning Goal 1- Provide well-maintained streets and storm drains • Concrete street repairs • Inlet and structure inspection, cleaning, and repair • Street, curb, and gutter sweeping • Emergency response • Signs and markings • New construction Goal 2- Provide timely & knowledgeable response to resident issues • Quick customer response • Customer service Goal 3- Establish five-year plan for streets and storm drainage • Identify and rank streets in need of reconstruction • Identify and rank streets in need of maintenance • Identify projects associated with improved traffic flow and transportation needs • Identify and rank storm drainage projects Goal 4- Provide support for other Town Departments • Parks • Police Department 72 Trophy Club, TX | Annual Program of Services FY15-16 Budget 72 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $268,817 $401,150 $234,485 $222,195 $191,936 $220,656 -1% Services & Supplies 149,181 365,261 169,383 189,482 174,849 199,464 5% Capital - - - - 55,181 - N/A TOTAL $417,998 $766,411 $403,868 $411,677 $421,966 $420,120 2% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Streets sweeping (curb miles)87 90 93 95 97 Striping (linear feet)37,665 38,346 39,500 41,500 42,000 Concrete placed/poured (cubic yards)233 320 400 215 150 Ratio of lane miles of street maintained per employee 30:01 30:01 30:01 45:1 45:1 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED DIRECTOR OF STREETS SERVICES 1.00 0.00 0.00 PROJECT MANAGER 0.00 1.00 1.00 STREETS SUPERVISOR 0.50 0.00 0.50 STREETS MAINTENANCE WORKER 1.30 1.30 1.30 TOTAL FTEs 2.80 2.30 2.80 73 Trophy Club, TX | Annual Program of Services FY15-16 Budget 73 Streets FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 188,402 $ 270,120 $ 156,796 $ 148,225 $ 131,100 $ 150,174 $ 178,034 $ 184,266 Overtime 599 1,773 1,111 3,000 2,598 3,000 3,000 3,000 Longevity 1,752 3,834 1,894 1,961 1,962 1,773 2,010 2,247 Stipend - 8,530 4,086 2,085 2,015 1,725 2,475 2,475 Retirement 26,846 39,794 23,872 26,229 19,600 20,367 24,558 25,786 Medical Insurance 23,692 37,729 21,498 19,860 18,360 23,530 30,207 31,717 Dental Insurance 1,962 3,124 1,580 1,541 1,335 1,660 2,093 2,198 Vision Insurance 497 710 330 298 281 329 420 441 Life Insurance & Other 1,046 4,239 1,318 1,288 1,118 1,536 1,590 1,645 Social Security Taxes 10,981 15,859 9,339 9,498 7,760 9,607 11,400 11,799 Medicare Taxes 2,563 3,709 2,184 2,251 1,870 2,272 2,692 2,786 Unemployment Taxes 1,059 70 848 573 - 580 683 706 Workman's Compensation 9,418 11,560 9,453 5,386 3,927 4,103 4,482 4,638 Pre-Employment Physicals/Testing - 100 176 - 10 - - - Total Personnel $ 268,817 $ 401,150 $ 234,485 $ 222,195 $ 191,936 $ 220,656 $ 263,644 $ 273,705 Services/Supplies Professional Services - PID Utility $ - $ - $ 5,522 $ 5,000 $ 4,000 $ 5,000 $ 5,000 $ 5,000 Advertising - 475 200 - - - - - Schools & Training 398 693 - 600 1,570 1,175 1,945 1,175 Electricity 127,292 173,475 155,159 173,237 160,000 181,899 190,994 200,544 Water 5,017 42,239 - - - - - - Telephone 76 115 15 125 - - - - Communications/Pagers/Mobiles 2,671 3,980 2,427 2,580 2,100 2,100 2,100 2,100 Property Maintenance 1,295 113,845 - - - - - - Building Maintenance - 2,030 - - - - - - Vehicle Maintenance 626 4,371 126 - - - - - Equipment Maintenance 1,312 4,156 2,159 3,000 2,000 3,000 3,000 3,000 Storage Rental - 2,242 - - - - - - Dues & Membership 155 174 179 428 210 428 428 428 Travel & Per Diem 798 567 - 812 1,269 812 1,269 812 Meetings - 37 75 150 150 150 150 150 Safety Program - 41 - - - - - - Office Supplies 192 291 356 200 200 200 200 200 Postage 3 30 3 100 100 100 100 100 Fuel 5,436 9,678 - - - - - - Uniforms 1,900 2,086 1,645 1,750 1,750 3,100 2,300 2,300 Small Tools 2,011 4,565 1,517 1,500 1,500 1,500 1,500 1,500 Safety Equipment - 170 - - - - - - Total Services/Supplies $ 149,181 $ 365,261 $ 169,383 $ 189,482 $ 174,849 $ 199,464 $ 208,986 $ 217,309 Capital Capital Outlay $ - $ - $ - $ - $ 55,181 $ - $ - $ - Total Capital $ - $ - $ - $ - $ 55,181 $ - $ - $ - Total Expenditures $ 417,998 $ 766,411 $ 403,868 $ 411,677 $ 421,966 $ 420,120 $ 472,630 $ 491,014 74 Trophy Club, TX | Annual Program of Services FY15-16 Budget 74 PARKS Mission To preserve and enhance the Town of Trophy Club's exceptional quality of life through the planning, maintaining, and landscaping of the parks and public areas. The Parks Department reinforces the Town's mission by ensuring a healthy, picturesque, and environmentally sound community. Top 3 Accomplishments for FY15 • Opened the Dino Toddler Playground • Installed a pilot channel at Freedom Dog Park to increase drainage • Converted 10 ancillary medians to a hardscape design for water conservation and to reduced maintenance Strategic Planning Goal 1 - Proactively maintain and reinforce sound environmental practices within the community • Installation and retrofit to drip irrigation • Public environmental awareness • Installation and retrofit to xeriscape landscaping Goal 2 - Maintain current and future park and public amenities for increased resident enjoyment • Sports field maintenance • Trail maintenance • Facility maintenance • Staff training to implement current maintenance standards • Medians and common area maintenance Goal 3 - Streamline current operations to achieve greater efficiency • Eliminate or reduce maintenance of non-town owned properties • Identify areas that are more appropriate for contact maintenance • Reduce overall use of freshwater irrigation • Aquatic area maintenance Goal 4 - Evaluate maintenance procedures for new amenities • Concrete trail maintenance and pond maintenance • Long-term solutions for park drainage issues • Evaluate new open space and park/land maintenance areas • Implement infrastructure repair and replacement plan Goal 5 - Bring new park amenities online • Relocate the NEOS system to Independence West • Additional playground at Harmony Park • Install new practice fields at Lakeview Park The Parks Department was combined with the Medians Department in FY16 75 Trophy Club, TX | Annual Program of Services FY15-16 Budget 75 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $ 653,640 $ 549,713 $ 601,121 $ 657,422 $ 616,626 $ 786,327 20% Services & Supplies 480,576 299,313 382,801 321,164 304,147 522,868 63% Capital 7,000 98,708 36,083 64,830 64,830 79,600 23% TOTAL $1,141,216 $ 947,734 $1,020,004 $1,043,416 $ 985,603 $1,388,795 33% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Medians and common areas maintained 85 114 114 114 106 Sports fields maintained 17 22 22 22 35 Medians redesigned ---4 3 Medians converted to hardscape or xericape 5 7 10 1 10 Acres maintained by contract labor 12 14 28 30 62 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED P & R DIRECTOR 0.50 0.50 0.50 PARKS SUPERINTENDENT 1.00 1.00 1.00 PARKS SUPERVISOR 0.00 1.00 1.00 PARKS CREW LEADER 1.00 0.00 0.00 ATHLETIC CREW LEADER 1.00 1.00 1.00 PARK IRRIGATOR CREW LEADER 1.00 1.00 1.00 PARK IRRIGATOR 0.00 0.00 1.00 LANDSCAPE MAINTENANCE WORKER 3.00 3.00 5.00 ATHLETIC FIELD TECHNICIAN 1.00 1.00 0.00 SPRAY TECHNICIAN CREW LEADER 1.00 1.00 1.00 APPLICATOR SPRAY TECHNICIAN 1.00 1.00 1.00 PART-TIME MAINTENANCE WORKER 0.00 0.00 0.50 TOTAL FTEs 10.50 10.50 13.00 The Parks Department was combined with the Medians Department in FY16 76 Trophy Club, TX | Annual Program of Services FY15-16 Budget 76 Parks FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 439,757 $ 368,787 $ 392,610 $ 428,803 $ 409,369 $ 527,769 $ 546,241 $ 565,359 Overtime 20,119 12,838 18,271 12,500 14,600 15,000 15,000 15,000 Longevity 3,345 2,267 2,880 3,461 3,490 4,466 5,411 6,356 Stipend - 8,750 10,800 7,125 7,375 7,875 9,375 9,375 Certification 1,250 205 1,510 1,500 1,835 3,600 3,600 3,600 Retirement 66,301 55,305 62,411 76,589 61,600 70,712 74,248 77,960 Medical Insurance 64,901 51,148 57,647 68,640 65,650 86,779 91,118 95,674 Dental Insurance 5,007 3,919 4,102 4,861 4,495 5,715 6,001 6,301 Vision Insurance 1,166 887 939 1,050 1,043 1,213 1,274 1,337 Life Insurance & Other 2,982 5,494 3,436 3,762 3,552 5,262 5,525 5,801 Social Security Taxes 27,918 23,050 25,158 27,668 25,650 34,152 35,347 36,584 Medicare Taxes 6,529 5,391 5,884 6,574 6,020 8,101 8,385 8,678 Unemployment Taxes 3,908 243 2,755 2,174 142 2,691 2,785 2,883 Workman's Compensation 9,009 8,771 10,126 10,300 11,680 12,677 13,121 13,580 Pre-Employment Physicals/Testing 435 503 547 315 125 315 - - Auto Allowance 1,012 2,156 2,044 2,100 - - - - Total Personnel $ 653,640 $ 549,713 $ 601,121 $ 657,422 $ 616,626 $ 786,327 $ 817,430 $ 848,489 The Parks Department was combined with the Medians Department in FY16 77 Trophy Club, TX | Annual Program of Services FY15-16 Budget 77 Parks FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services/Supplies Professional Outside Services $ 1,015 $ - $ 1,220 $ - $ - $ - $ - $ - Advertising 2,274 175 1,025 1,000 2,200 825 825 825 Printing - 85 - - - - - - Schools & Training 912 2,731 1,918 4,596 4,072 4,845 4,097 4,370 Electricity 34,195 33,354 33,437 41,695 29,444 38,639 39,639 40,139 Water 145,812 79,152 82,743 73,315 71,500 121,000 121,050 123,500 Telephone 394 393 23 435 - - - - Communications/Pagers/Mobiles 6,131 6,648 6,765 7,220 8,300 8,926 8,926 8,926 Property Maintenance 211,702 89,737 156,335 113,100 106,500 185,000 176,900 180,300 Building Maintenance 3,787 3,155 2,090 2,500 3,500 3,500 3,500 2,500 Vehicle Maintenance 7,692 13,108 9,315 8,241 10,288 10,288 10,288 10,288 Equipment Maintenance 12,053 13,776 10,403 11,032 11,000 11,000 11,000 11,000 Independent Labor - - - - - 53,600 53,600 53,600 Equipment Rental/Lease - 121 8 - - - - - Storage Rental 2,222 6,866 14,097 14,008 14,008 11,408 11,408 11,408 Portable Toilets 1,646 2,693 1,999 4,243 1,900 3,556 4,588 4,727 Dues & Membership 318 250 511 1,189 1,030 1,430 1,430 1,430 Travel & Per Diem 1,704 1,028 4,487 2,155 2,180 2,692 210 710 Meetings 787 388 778 900 900 750 750 750 Safety Program 900 18 165 464 750 600 600 600 Tree City - - - - - 10,000 10,000 10,000 Office Supplies 379 444 983 372 500 383 402 422 Postage 15 19 65 52 25 25 25 25 Publications/Books/Subscriptions 151 254 405 515 500 500 500 500 Fuel 23,713 23,946 24,714 17,013 17,000 25,149 26,250 27,000 Uniforms 8,705 9,416 8,622 6,750 6,750 9,432 9,432 9,432 Small Tools 12,719 9,464 13,811 7,000 7,000 16,450 13,850 13,850 Safety Equipment 965 947 1,844 2,039 3,500 2,070 2,070 2,070 Small Equipment - 558 1,802 - - - - - Furniture/Equipment <$5,000 285 505 1,368 1,030 1,000 500 500 500 Hardware - 84 - - - - - - Miscellaneous Expense 100 - 1,869 300 300 300 300 300 Total Services/Supplies $ 480,576 $ 299,313 $ 382,801 $ 321,164 $ 304,147 $ 522,868 $ 512,140 $ 519,172 Capital Capital Outlay $ 7,000 $ 98,708 $ 36,083 $ 64,830 $ 64,830 $ 79,600 $ 20,000 $ 18,350 Total Capital $ 7,000 $ 98,708 $ 36,083 $ 64,830 $ 64,830 $ 79,600 $ 20,000 $ 18,350 Total Expenditures $ 1,141,216 $ 947,734 $ 1,020,004 $ 1,043,416 $ 985,603 $ 1,388,795 $ 1,349,570 $ 1,386,011 The Parks Department was combined with the Medians Department in FY16 78 Trophy Club, TX | Annual Program of Services FY15-16 Budget 78 MEDIANS PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED PARK IRRIGATOR 1.00 1.00 0.00 LANDSCAPE MAINTENANCE WORKER 2.00 2.00 0.00 TOTAL FTEs 3.00 3.00 0.00 Medians FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ - $ - $ 94,632 $ 98,876 $ 100,639 $ - $ - $ - Overtime - - 3,022 2,000 5,000 - - - Longevity - - 1,063 285 200 - - - Stipend - - 3,600 2,250 2,000 - - - Retirement - - 14,882 17,469 15,150 - - - Medical Insurance - - 15,656 16,709 16,430 - - - Dental Insurance - - 1,168 1,442 1,300 - - - Vision Insurance - - 260 300 277 - - - Life Insurance & Other - - 868 985 969 - - - Social Security Taxes - - 6,109 6,272 6,760 - - - Medicare Taxes - - 1,429 1,499 1,604 - - - Unemployment Taxes - - 830 621 107 - - - Workman's Compensation - - 1,824 2,375 3,283 - - - Pre-Employment Physicals/Testing - - 70 - - - - - Total Personnel $ - $ - $ 145,412 $ 151,083 $ 153,719 $ - $ - $ - Services/Supplies Electricity $ - $ - $ 9,263 $ 1,030 $ 3,250 $ -$ -$ - Water - - 31,257 32,273 40,000 - - - Communications/Pagers/Mobiles - - 1,317 1,200 1,100 - - - Property Maintenance - - 98,319 84,000 84,000 - - - Building Maintenance - - 197 - - - - - Vehicle Maintenance - - 1,883 2,048 - - - - Equipment Maintenance - - 250 3,167 - - - - Meetings - - - 103 - - - - Safety Program - - 296 155 - - - - Tree City - - - 10,000 7,500 - - - Fuel - - 2,432 5,447 5,400 - - - Uniforms - - 927 2,444 2,400 - - - Small Tools - - 2,790 6,360 3,000 - - - Total Services/Supplies $ - $ - $ 148,930 $ 148,227 $ 146,650 $ - $ -$ - Total Expenditures $ - $ - $ 294,342 $ 299,310 $ 300,369 $ - $ - $ - The Medians Department was combined with the Parks Department in FY16 79 Trophy Club, TX | Annual Program of Services FY15-16 Budget 79 RECREATION Mission To preserve and enhance the Town of Trophy Club’s exceptional quality of life by offering our citizens a variety of recreational and athletic opportunities and special events that combine to create an environment that fosters both community spirit and pride. Top 3 Accomplishments for FY15 • Managed and Planned for 87 programs and 25 events • Created a new multi-year agreement for use of Town facilities with Trophy Club/Roanoke Youth Baseball Association • Implemented Active.Net registration website that improved customer experience and saved staff time Strategic Planning Goal 1- Promote physical activity and a healthy lifestyle • Triton Swim Team • Tennis camp • Sports association support • Volunteer support Goal 2- Offer unique recreation programs, events, and amenities to residents of all ages • Family Camp-Out • Summer Adventure Camp • Freedom Dog Park • Third-party programs Goal 3- Encourage community involvement through increased awareness and opportunities • Business vendors at community events • Eagle Scout projects • Facility rentals • Community events Goal 4- Evaluation of revenue-producing programs • Baseball and soccer tournaments • Birthday parties • Pool fees • Enterprise program fund Goal 5- Bring new programming on-line • Dog obedience & training classes • Active adult classes • Nature classes 80 Trophy Club, TX | Annual Program of Services FY15-16 Budget 80 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $324,286 $346,991 $357,015 $393,165 $382,166 $417,042 6% Services & Supplies 146,266 149,397 146,358 156,874 159,917 161,605 3% Capital - - - - - 80,000 N/A TOTAL $470,551 $496,388 $503,373 $550,039 $542,083 $658,647 20% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Adult/senior programs ---14 16 Aquatics programs ---57 57 Youth programs ---13 36 Volunteer hours ---475 500 Public private partnerships ---10 12 Event attendees 5,000 6,000 10,000 11,000 11,500 Planned events 6 7 8 26 27 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED PARKS & RECREATION DIRECTOR 0.50 0.50 0.50 RECREATION SUPERINTENDENT 0.60 0.60 0.60 RECREATION SUPERVISOR 1.00 1.00 1.00 CAMP DIRECTOR 0.27 0.27 0.27 ASSISTANT CAMP DIRECTOR 0.21 0.21 0.21 CAMP COUNSELOR 1.69 1.69 1.69 ASSISTANT POOL MANAGER 0.28 0.28 0.28 HEAD LIFEGUARDS 0.74 0.74 0.74 LIFEGUARDS 3.84 3.84 3.84 CASHIER 0.93 0.93 0.93 SWIM TEAM 0.69 0.69 0.69 TOTAL FTEs 10.76 10.76 10.76 81 Trophy Club, TX | Annual Program of Services FY15-16 Budget 81 Recreation FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 258,705 $ 275,485 $ 279,981 $ 309,673 $ 307,500 $ 335,983 $ 347,742 $ 359,913 Overtime 1,616 1,011 2,647 3,800 3,800 3,800 3,800 3,800 Longevity 383 524 760 892 901 1,135 1,315 1,495 Stipend - 3,650 3,300 1,575 1,575 1,575 1,575 1,575 Retirement 15,716 18,524 19,957 23,140 19,540 18,912 19,858 20,850 Medical Insurance 10,114 11,348 12,489 13,341 13,150 14,032 14,734 15,470 Dental Insurance 711 835 840 891 997 1,055 1,108 1,163 Vision Insurance 184 199 199 199 208 199 209 219 Life Insurance & Other 769 1,945 1,133 1,141 1,151 1,270 1,334 1,400 Social Security Taxes 17,673 17,274 17,589 19,491 19,150 21,137 22,194 23,304 Medicare Taxes 4,133 4,040 4,113 4,581 4,500 4,966 5,140 5,320 Unemployment Taxes 4,986 165 3,743 2,198 605 2,203 2,280 2,360 Workman's Compensation 5,720 6,836 5,210 7,438 6,589 8,070 8,352 8,645 Pre-Employment Physicals/Testing 2,564 3,000 3,012 2,705 2,500 2,705 2,800 2,898 Auto Allowance 1,012 2,156 2,044 2,100 - - - - Total Personnel $ 324,286 $ 346,991 $ 357,015 $ 393,165 $ 382,166 $ 417,042 $ 432,440 $ 448,412 82 Trophy Club, TX | Annual Program of Services FY15-16 Budget 82 Recreation FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services/Supplies Software & Support $ 8,500 $ 3,500 $ 3,648 $ 4,805 $ 4,009 $ 4,009 $ 1,109 $ 1,109 Collection Fees 3,531 158 - - - - - - Health Inspections - - - 261 261 269 277 285 Advertising 2,970 862 2,957 2,716 1,895 1,976 1,996 2,017 Printing 2,592 4,749 - 5,813 7,500 8,500 8,500 8,900 Schools & Training 1,257 1,227 1,038 5,733 3,055 3,075 3,265 1,975 Service Charges & Fees - 4,440 8,407 5,700 15,300 15,300 15,300 15,300 Electricity 7,929 18,958 18,573 19,500 17,500 19,000 19,000 19,000 Water 18,377 9,519 8,036 13,138 11,000 14,000 14,300 14,600 Telephone 1,672 1,681 1,728 1,295 1,907 1,916 1,920 1,923 Communications/Pagers/Mobiles 2,562 2,847 2,887 3,000 3,000 4,196 4,196 4,196 Insurance - - - 501 - - - - Property Maintenance 13,656 7,338 17,072 6,221 11,433 6,407 6,599 6,796 Equipment Maintenance 1,182 250 86 - - - - - Library Services - 15,000 15,000 - - - - - Independent Labor 408 - - 2,824 - - - - Equipment Rental/Lease 4,885 5,454 6,386 5,901 7,400 7,622 7,851 8,087 Building rental/Lease (2,896) - - - - - - - Dues & Membership 6,787 5,807 6,510 7,367 7,932 8,024 8,219 8,420 Travel & Per Diem 5,262 3,197 3,944 5,910 4,573 5,495 5,456 5,526 Meetings 505 1,083 366 1,191 669 669 674 679 Field Trips 4,974 4,066 5,452 5,665 5,665 5,835 6,010 6,190 Office Supplies 1,417 824 2,126 1,988 1,895 1,625 1,632 1,639 Postage 113 483 - 777 1,324 1,363 1,404 1,446 Publications/Books/Subscriptions - 208 200 478 478 300 300 300 Fuel - 10 438 - - - - - Uniforms 9,281 5,809 9,676 8,110 7,950 8,386 8,623 8,866 Chemicals 20,286 18,811 12,622 19,156 12,622 13,000 13,000 13,000 Concessions 8,167 9,885 7,103 10,400 7,103 8,000 8,000 8,000 Program Supplies 3,800 4,573 2,644 3,578 6,408 6,624 4,455 4,475 Special Events 1,322 1,310 1,047 1,914 2,313 1,971 2,030 2,091 Community Events 2,502 - - - - - - - Safety Equipment 1,271 1,629 1,364 1,190 1,160 1,225 1,262 1,300 Small Equipment 5,893 2,770 1,146 2,500 5,391 3,540 2,750 2,800 Furniture/Equipment <$5,000 2,990 9,900 3,340 5,509 5,700 5,212 5,216 5,219 Hardware 3,463 - 870 1,500 2,233 1,800 1,800 1,800 Maintenance Supplies 677 1,042 1,498 1,909 1,940 1,966 2,025 2,086 Miscellaneous Expenses 928 2,010 194 324 300 300 300 300 Total Services/Supplies $ 146,266 $ 149,397 $ 146,358 $ 156,874 $ 159,917 $ 161,605 $ 157,469 $ 158,325 Capital Capital Outlay $ - $ - $ - $ - $ - $ 80,000 $ 70,000 $ 20,000 Total Capital $ - $ - $ - $ - $ - $ 80,000 $ 70,000 $ 20,000 Total Expenditures $ 470,551 $ 496,388 $ 503,373 $ 550,039 $ 542,083 $ 658,647 $ 659,909 $ 626,738 83 Trophy Club, TX | Annual Program of Services FY15-16 Budget 83 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Services & Supplies $47,889 $47,374 $38,805 $60,201 $24,932 $31,881 -47% TOTAL $47,889 $47,374 $38,805 $60,201 $24,932 $31,881 -47% Community Events FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services/Supplies Advertising $ 3,030 $ 300 $ 512 $ 1,288 $ 300 $ 530 $ 546 $ 563 Printing 783 1,288 364 3,914 2,759 1,650 1,650 1,750 Schools & Training - - 230 - 205 205 205 225 Event Rentals 33,073 33,466 26,399 37,690 9,101 15,799 16,268 16,772 Dues & Membership - - 200 124 205 205 205 215 Travel & Per Diem - - 428 567 567 583 601 619 Uniforms 756 - - 606 800 800 850 850 Program Supplies 9,502 12,535 10,572 13,231 9,295 11,366 11,598 11,832 Miscellaneous Expense 746 (214) 100 2,781 1,700 743 765 788 Total Services/Supplies $ 47,889 $ 47,374 $ 38,805 $ 60,201 $ 24,932 $ 31,881 $ 32,688 $ 33,614 Total Expenditures $ 47,889 $ 47,374 $ 38,805 $ 60,201 $ 24,932 $ 31,881 $ 32,688 $ 33,614 COMMUNITY EVENTS 84 Trophy Club, TX | Annual Program of Services FY15-16 Budget 84 COMMUNITY DEVELOPMENT Mission To maintain Trophy Club in such a manner that it enhances quality of life for current and future residents by seeking compliance with the Town’s Code of Ordinances and to provide prompt, friendly, and efficient customer service to all. Top 3 Accomplishments for FY15 • Construction oversight of Homewood Suites and Holiday Inn • Upgraded to Energov Software • Code Enforcement Officer became fully certified by State of Texas Strategic Planning Goal 1 - Structurally sound residential and commercial construction • Inspections by fully licensed Inspector/Certified Building Official • Customer service • Plan review (residential and commercial) Goal 2 - Quality residential and commercial developments in Trophy Club • Liaison • Customer service • Code enforcement Goal 3 - Streamlined permitting for efficient and timely service to community • Online permitting capabilities • Effective communication policies allow for quick customer response times Goal 4 - Beautification efforts • Community Clean-Up Event • Trash collection, electronic recycling, shredding Goal 5 - Improve and/or update zoning and other land use ordinances • Improved/updated ordinances • Residential • Commercial • Code enforcement 85 Trophy Club, TX | Annual Program of Services FY15-16 Budget 85 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $185,085 $287,778 $302,809 $429,897 $397,029 $451,227 5% Services & Supplies 45,890 31,390 24,013 143,024 117,817 131,499 -8% Capital 17,364 - - - 42,000 - N/A TOTAL $248,339 $319,168 $326,821 $572,921 $556,846 $582,726 2% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Number of inspections Completed -3,581 5,100 4,755 4,500 High grass/weeds violations 97 110 10 142 124 Sign violations 75 50 70 112 140 Trailer/boat/vehicle parking violations 21 25 60 16 20 Outdoor storage violations 35 20 20 34 40 Number of permits issued 1,785 1,572 1,650 1,672 1,600 Plats processed 12 8 10 4 3 P & Z meetings held 11 14 13 15 12 Ordinances amended to reflect council policies 2 1 2 2 3 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED INFRASTRUCTURE & DEVELOPMENT SERVICES MANAGER 0.00 0.75 0.75 TOWN PLANNER 1.00 1.00 1.00 BUILDING SERVICES MANAGER 1.00 0.00 0.00 CUSTOMER SERVICE/CODE ENFORCEMENT 1.00 1.00 1.00 BUILDING INSPECTOR 1.00 1.00 1.00 PERMIT OFFICIAL 1.00 1.00 1.00 ADMINISTRATIVE ASSISTANT 1.00 1.00 1.00 TOTAL FTEs 6.00 5.75 5.75 86 Trophy Club, TX | Annual Program of Services FY15-16 Budget 86 Community Development FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 138,964 $ 206,471 $ 211,862 $ 298,068 $ 280,385 $ 318,266 $ 329,405 $ 340,934 Overtime 247 895 3,607 3,000 6,800 5,000 5,000 5,000 Longevity 915 1,005 1,235 1,595 1,530 1,900 2,290 2,680 Stipend - 5,500 4,100 4,500 4,000 4,312 4,312 4,312 Retirement 18,943 29,778 32,154 51,888 40,648 42,832 44,974 47,222 Medical Insurance 11,012 21,504 26,738 38,871 35,208 36,455 38,278 40,192 Dental Insurance 902 2,015 1,968 2,603 2,350 2,535 2,662 2,795 Vision Insurance 214 450 429 543 500 523 549 577 Life Insurance & Other 950 3,373 1,953 2,745 2,345 2,967 3,115 3,271 Social Security Taxes 8,724 12,777 13,083 18,765 17,600 20,160 21,168 22,226 Medicare Taxes 2,040 2,988 3,060 4,454 4,160 4,777 4,944 5,117 Unemployment Taxes 1,391 259 1,170 1,242 65 1,190 1,232 1,275 Workman's Compensation 451 757 1,203 1,623 1,438 10,310 10,671 11,044 Pre-Employment Physicals/Testing 332 7 247 - - - - - Total Personnel $ 185,085 $ 287,778 $ 302,809 $ 429,897 $ 397,029 $ 451,227 $ 468,600 $ 486,646 Services/Supplies Professional Outside Services $ 2,812 $ - $ - $ 12,000 $ 12,000 $ 8,000 $ 83,000 $ 83,000 Engineering - - - 75,000 75,000 75,000 50,000 50,000 Plan Review Services - 4,709 - 5,000 - 5,000 5,000 5,000 Appraisal - - - 500 - - - - Health Inspections 6,000 5,975 5,350 6,100 6,100 6,900 7,200 7,200 Inspection Services 16,300 - - 8,000 2,000 8,000 8,000 8,000 Advertising - 461 33 1,100 1,100 1,100 1,100 1,100 Printing 890 734 1,679 1,100 1,100 1,100 1,100 1,100 Computer Mapping - - - 4,000 - - - - Abatements 2,055 2,920 190 3,000 1,800 3,000 3,000 3,000 Schools & Training 1,365 1,187 1,519 2,800 2,400 1,950 1,950 1,950 Service Charges & Fees - 331 - - - - - - Telephone 337 794 85 600 - - - - Communications/Pagers/Mobiles 1,506 1,609 2,199 3,672 2,500 4,512 4,512 4,512 Vehicle Maintenance 862 869 3,973 3,000 3,000 3,000 3,000 3,000 Dues & Membership 421 260 251 1,627 1,227 1,307 1,307 1,307 Travel & Per Diem 517 117 123 1,000 800 1,000 1,000 1,000 Meetings 22 75 - 240 240 240 240 240 Plat Filing Fees - - - 1,100 - - - - Office Supplies 1,367 1,106 559 2,500 1,500 1,500 1,500 1,500 Postage 825 798 470 500 500 500 500 500 Publications/Books/Subscriptions 661 454 225 700 350 2,000 500 500 Fuel 3,978 6,217 5,060 6,245 4,000 4,870 5,000 5,150 Uniforms 1,181 1,527 1,726 2,340 1,600 1,920 1,920 1,920 Miscellaneous Expense 4,792 1,248 571 900 600 600 600 600 Total Services/Supplies $ 45,890 $ 31,390 $ 24,013 $ 143,024 $ 117,817 $ 131,499 $ 180,429 $ 180,579 Capital Capital Outlay $ 17,364 $ - $ - $ - $ 42,000 $ - $ - $ - Total Capital $ 17,364 $ - $ - $ - $ 42,000 $ - $ - $ - Total Expenditures $ 248,339 $ 319,168 $ 326,821 $ 572,921 $ 556,846 $ 582,726 $ 649,029 $ 667,225 87 Trophy Club, TX | Annual Program of Services FY15-16 Budget 87 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $99,378 $104,932 $125,871 $ - $ - $ - N/A Services & Supplies 133,756 152,206 135,068 - - - N/A TOTAL $233,134 $257,138 $260,939 $ - $ - $ - N/A Planning & Zoning FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 76,872 $ 78,257 $ 94,418 $ - $ - $ - $ - $ - Longevity 280 510 600 - - - - - Stipend - 2,500 1,800 - - - - - Retirement 10,719 11,380 14,113 - - - - - Medical Insurance 4,432 4,463 5,886 - - - - - Dental Insurance 344 363 394 - - - - - Vision Insurance 82 81 88 - - - - - Life Insurance & Other 366 1,034 580 - - - - - Social Security Taxes 4,752 5,001 5,944 - - - - - Medicare Taxes 1,111 1,170 1,390 - - - - - Unemployment Taxes 261 9 414 - - - - - Workman's Compensation 159 165 244 - - - - - Total Personnel $ 99,378 $ 104,932 $ 125,871 $ - $ - $ - $ - $ - Services/Supplies Professional Outside Services $ - $ 27,459 $ 30,875 $ - $ - $ - $ - $ - Engineering 115,243 116,150 96,647 - - - - - Advertising 3,628 357 1,275 - - - - - Printing 453 228 45 - - - - - Computer Mapping 1,829 5,196 465 - - - - - Schools & Training 455 55 430 - - - - - Telephone 510 628 111 - - - - - Communications/Pagers/Mobiles 616 615 717 - - - - - Dues & Membership 334 (425) 525 - - - - - Travel & Per Diem 525 28 - - - - - - Meetings 85 40 153 - - - - - Plat Filing Fees 1,657 790 951 - - - - - Office Supplies 259 402 2,557 - - - - - Postage 61 565 51 - - - - - Publications/Books/Subscriptions - 119 57 - - - - - Miscellaneous Expenses 31 - 211 - - - - - Planning 8,070 - - - - - - - Total Services/Supplies $ 133,756 $ 152,206 $ 135,068 $ - $ - $ - $ - $ - Total Expenditures $233,134 $257,138 $260,939 $ - $ - $ - $ - $ - PLANNING & ZONING This department was consolidated with the Community Development in FY15. 88 Trophy Club, TX | Annual Program of Services FY15-16 Budget 88 FINANCE Mission To provide the highest quality financial management, support, fiduciary oversight, and public accountability to the wide range of constituents of Trophy Club, and to ensure that financial resources are collected, preserved, invested, and dispersed in a fiscally accountable manner. The Finance Department endeavors to promote the Town’s mission by creating strong partnerships and encouraging community involvement as well as by enhancing the Town’s financial and operational stewardship. Top 3 Accomplishments for FY15 • Submitted the Town’s first Popular Annual Financial Report • Refunded 2007 General Obligations Bonds for a net savings of $218,000 in interest • Content manager (paperless document storage) implementation for Accounts Payable Strategic Planning Goal 1 - Provide timely and accurate financial information to the Town departments and community • Continue to advocate for transparency by meeting the requirements for Texas Comptroller Leadership Circle Award and analyze new avenues of providing information to readers of financial data. • Adhere to governmental requirements such as implementing GASB 68: Accounting and Financial Reporting. • Work with internal departments to meet accounts payable processing goal under net 30. • Encourage vendors to provide ACH information to reduce departmental processing time, provide swifter payment, and endeavor towards a GREEN INITIATIVE. • Continue to work towards separation of duties and improve checks and balances while developing a “working smart” culture. • Promote customer service externally as well as internally through friendliness, compassion, and efficiency. Goal 2 - Update Policies and Procedures in accordance with the Town’s current operational methods and goals • Improve Procurement Policies and Procedures. • Update Purchase Card (P-Card) Program: Cardholders Policies and Procedures Manual. • Revise Cash Handling Policy. • Amend standard departmental forms. Goal 3 - Promote training of personnel • Cross-training Finance personnel on court procedures to cover Court Clerk. • Provide training to Town departments on budget controls and procurement policies. • Encourage departmental training on job-specific tasks by mentoring internally or attending external courses. 89 Trophy Club, TX | Annual Program of Services FY15-16 Budget 89 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud vs. Ad) Personnel $259,681 $254,187 $267,197 $266,946 $240,576 $285,126 7% Services & Supplies 117,623 108,978 125,023 120,151 104,636 125,293 4% Capital 150,839 9,650 - - - - N/A TOTAL $528,143 $372,816 $392,220 $387,097 $345,212 $410,419 6% PERFORMANCE MATRIX Performance Measure- Investment Yield FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Actual Investment Yield --0.065%0.103%0.300% Benchmark (6 month Treasury Bill)--0.068%0.106%0.200% Yield Compared to Benchmark --95%97%150% Explanation Idle cash is to be promptly invested to preserve capital, provide adequate liquidity for the Town's needs, promote the public trust, and achieve interest earnings. Council Objective Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. Measure To achieve earnings which exceed the benchmark of a rolling six month treasury bill. Performance Measure -Accounts Payable Turnaround FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Percent of Payables Paid within 30 Days ---83.70%95.00% Average Days Payable --- 18.23 21.00 # of Invoices Paid 2,191 2,276 2,169 2,502 2,650 # of Checks Processed 1,644 1,576 1,523 1,661 1,600 Explanation The Town's payment terms are net 30 and the Town endeavors to pay all invoices within that time frame. Mail processing and the length of time invoices are held by departments affects the percentage of invoices paid within the Town's terms. Council Objective Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. Measure To pay 95% of invoices within 30 days while not disbursing funds too quickly to increase investment yield and smooth cash flow. 90 Trophy Club, TX | Annual Program of Services FY15-16 Budget 90 PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FINANCE DIRECTOR 1.00 0.00 0.00 CONTROLLER 0.00 1.00 1.00 CHIEF FINANCIAL ANALYST 1.00 1.00 1.00 STRATEGIC SERVICES COORDINATOR 0.00 1.00 1.00 BUDGET ANALYST 1.00 0.00 0.00 TOTAL FTEs 3.00 3.00 3.00 Finance FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 196,651 $ 188,446 $ 200,610 $ 188,912 $ 186,600 $ 209,643 $ 216,981 $ 224,575 Longevity - 135 140 270 200 455 665 875 Stipend - 4,500 3,500 2,250 1,500 2,250 2,250 2,250 Retirement 27,484 24,776 28,135 32,338 21,300 27,605 28,985 30,435 Medical Insurance 17,992 19,291 16,940 23,861 16,930 23,995 25,195 26,454 Dental Insurance 1,004 1,262 1,333 1,665 1,325 1,731 1,818 1,908 Vision Insurance 229 144 346 398 274 357 375 394 Life Insurance & Other 994 2,508 1,463 1,671 1,163 1,833 1,897 1,964 Social Security Taxes 11,148 10,238 11,063 11,729 8,600 13,026 13,482 13,954 Medicare Taxes 2,713 2,394 2,587 2,776 2,080 3,079 3,187 3,298 Unemployment Taxes 1,044 31 634 597 105 621 643 665 Workman's Compensation 422 398 382 479 424 531 550 569 Pre-Employment Physicals/Testing - 64 64 - 75 - - - Total Personnel $ 259,681 $ 254,187 $ 267,197 $ 266,946 $ 240,576 $ 285,126 $ 296,026 $ 307,341 Services/Supplies Professional Outside Services $ - $ 13,320 $ - $ 2,100 $ 5,650 $ 2,100 $ 2,100 $ 2,100 Auditing 58,000 35,000 44,000 32,750 22,750 35,500 34,750 37,500 Appraisal 40,886 43,407 45,724 46,394 46,832 51,629 54,210 55,470 Tax Administration 2,971 3,831 3,987 4,416 3,291 3,312 3,478 3,513 Advertising 2,339 2,140 2,631 3,800 3,800 3,800 3,800 3,800 Printing 2,135 1,948 2,309 750 1,731 5,750 5,750 5,750 Schools & Training 1,666 371 1,564 2,855 3,199 2,830 2,230 2,555 Service Charges & Fees - 200 16,954 18,120 10,800 10,956 11,116 11,278 PID (84) 87 114 100 - 100 100 100 Telephone 347 222 22 100 - - - - Communications/Pagers/Mobiles 685 664 821 900 375 900 900 900 Building Maintenance 6 - - - - - - - Dues & Membership 1,175 1,310 1,313 1,500 1,540 1,370 1,375 1,450 Travel & Per Diem 2,360 1,460 2,165 2,916 1,768 3,096 2,930 2,980 Meetings 95 311 - 100 100 100 100 100 Office Supplies 1,480 1,657 1,753 1,800 1,800 1,800 1,800 1,800 Postage 1,212 891 1,463 1,000 1,000 1,500 1,500 1,500 Publications/Books/Subscriptions 26 576 57 250 - 250 250 250 Furniture/Equipment <$5000 - 1,150 146 200 - 200 200 200 Miscellaneous Expense 2,325 435 - 100 - 100 100 100 Total Services/Supplies $ 117,623 $ 108,978 $ 125,023 $ 120,151 $ 104,636 $ 125,293 $ 126,689 $ 131,346 Capital Capital Outlay $ 150,839 $ 9,650 $ - $ - $ - $ - $ - $ - Total Capital $ 150,839 $ 9,650 $ - $ - $ - $ - $ - $ - Total Expenditures $ 528,143 $ 372,816 $ 392,220 $ 387,097 $ 345,212 $ 410,419 $ 422,715 $ 438,687 91 Trophy Club, TX | Annual Program of Services FY15-16 Budget 91 MUNICIPAL COURT Top 3 Accomplishments for FY15 • Attended legislative update seminar and made sure court is in compliance with new laws • Entered all court offense codes into RMS system to prepare for electronic tickets • Completed Warrant Round-Up Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Personnel $ 68,308 $ 55,108 $ 71,725 $ 75,397 $ 75,227 $ 77,388 3% Services & Supplies 10,621 13,623 7,848 10,539 7,884 9,689 -8% TOTAL $ 78,929 $ 68,731 $ 79,573 $ 85,936 $ 83,111 $ 87,077 1% PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED SENIOR COURT CLERK 1.00 1.00 1.00 TOTAL FTEs 1.00 1.00 1.00 92 Trophy Club, TX | Annual Program of Services FY15-16 Budget 92 Municipal Court FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 50,763 $ 40,796 $ 52,306 $ 54,747 $ 54,100 $ 56,867 $ 58,857 $ 60,917 Longevity 140 200 - 80 - 140 200 260 Stipend - 1,000 1,200 750 750 750 750 750 Certifications 718 557 - - 2,025 900 900 900 Retirement 6,854 4,949 7,492 8,714 7,260 7,106 7,461 7,834 Medical Insurance 4,671 3,281 5,334 5,570 5,730 5,781 6,070 6,374 Dental Insurance 358 261 364 387 440 414 435 456 Vision Insurance 86 58 81 81 88 81 85 89 Life Insurance & Other 343 597 508 512 529 552 571 591 Social Security Taxes 3,197 2,636 3,317 3,399 3,380 3,590 3,716 3,846 Medicare Taxes 748 617 776 806 790 851 881 912 Unemployment Taxes 329 50 250 222 21 222 230 238 Workman's Compensation 101 106 97 129 114 134 139 144 Total Personnel $ 68,308 $ 55,108 $ 71,725 $ 75,397 $ 75,227 $ 77,388 $ 80,295 $ 83,311 Services/Supplies Professional Outside Services $ 1,458 $ 643 $ 1,467 $ 1,890 $ 1,400 $ 1,890 $ 1,890 $ 1,890 Judge's Compensation 3,900 3,900 3,600 4,500 4,350 4,500 4,500 4,500 Advertising - - 742 - - - - - Printing 982 870 630 1,100 665 1,100 1,100 1,100 Schools & Training 500 400 50 350 150 350 350 350 Service Charges & Fees 1,301 4,949 - - - - - - Telephone 169 285 69 150 - - - - Jury Fees - - 36 144 108 144 144 144 Dues & Membership 101 130 60 130 - 130 130 130 Travel & Per Diem 1,043 1,136 - 625 125 375 375 375 Meetings - 29 - - - - - - Office Supplies 299 287 278 450 250 300 300 300 Postage 465 460 916 1,000 500 600 600 650 Warrant Round-Up 272 422 - - - - - - Furniture/Equipment <$5000 - 113 - 200 200 200 200 200 Miscellaneous Expense 131 - - - 136 100 100 100 Total Services/Supplies $ 10,621 $ 13,623 $ 7,848 $ 10,539 $ 7,884 $ 9,689 $ 9,689 $ 9,739 Total Expenditures $ 78,929 $ 68,731 $ 79,573 $ 85,936 $ 83,111 $ 87,077 $ 89,984 $ 93,050 93 Trophy Club, TX | Annual Program of Services FY15-16 Budget 93 HUMAN RESOURCES Mission To provide quality personnel support services in employment, training, employee relations, benefits, compensation, and payroll such that employees are enabled to better serve community members and meet the organizational goals of the Town. Top 3 Accomplishments for FY15 • Finalized new Performance Review Document and process, and conducted supervisor training. • Completed Records Management process on 25 boxes of HR files scanning, and destroying as prescribed by guidelines. • Finalized RFP for selection of an Independent Insurance Broker for 2016-2017 Health Insurance Benefits process. 94 Trophy Club, TX | Annual Program of Services FY15-16 Budget 94 Strategic Planning Goal 1 - Promote competitive pay, benefits and a healthy work environment in order to retain and attract qualified and competent staff • Timely Pay/Benefit surveys • Ensure annual insurance open enrollment process and accompanying training is conducted and accurate • Provide management/employee training on applicable topics • Conduct RFP for 2015-2016 broker to ensure competitive health benefits • Stay current on all regulations related to HR practices Goal 2 - To protect the Town’s assets and resources by minimizing the internal and external exposures and associated risks • Revise and implement departmental standard operating procedures as required ensuring all regulatory and internal compliance • Ensure that all safety and appropriate training occurs as required • Recommend professional and skills training for staff Goal 3 - Advise and support the organization in all aspects of Human Resources • Ensure Town’s HR is conducted in compliance with all state and federal regulations, internal policies, and standard operating procedures • Policy Administration • Compensation and Benefits Administration • Records Management • Disciplinary process and actions • Recruitment process – selection and retention Goal 4 - Ensure the Town is compliant with all aspects of Health Care Reform and Patient Protection & Affordable Care Act (PPACA) • Stay current on changes and current reporting requirements associated with the National Health Care Reform & PPACA to ensure the Town is in compliance • Provide all required training to leadership and employees as applicable • Ensure that all reporting requirements are met within required timeliness Goal 5 - Ensure recruitment, placement, evaluation and separation of employees are in compliance with laws • Job descriptions are updated and current • Recruitment process is consistent and in compliance with laws • Performance evaluation process is conducted within prescribed timeliness and tool is relevant • Conduct exit interview process and provide appropriate feedback to leaders to address retention issues 95 Trophy Club, TX | Annual Program of Services FY15-16 Budget 95 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Personnel $ 90,623 $ 97,595 $ 70,840 $ 87,655 $ 91,990 $119,557 36% Services & Supplies 4,215 5,176 3,442 4,840 3,950 4,315 -11% TOTAL $ 94,839 $102,771 $ 74,282 $ 92,495 $ 95,940 $123,872 34% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Number of applications processed*365 200 327 215 250 Performance Measure- Turnover, Absence Rate, and Tenure FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL % of employee turnover*11%15%20%16%12% Average employee absence rate (sick days)---6.23 5.00 Average tenure (years)---4.27 5.00 Explanation Lower employee turnover and absence rate, save the Town money in training, and increase organizational efficiency. The longer an employee is tenured at the Town the more institutional knowledge an employee has to better perform their assigned tasks. Council Objective Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. Measure It is the Town’s goal to have a turnover rate at or below 12%, less than a five day absence rate, and for average tenure at or above five years. *Does not include seasonal FTEs PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED HR MANAGER 0.00 1.00 1.00 HR COORDINATOR 1.00 0.00 0.00 TOTAL FTEs 1.00 1.00 1.00 96 Trophy Club, TX | Annual Program of Services FY15-16 Budget 96 Human Resources FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 56,305 $ 60,012 $ 42,830 $ 51,765 $ 58,600 $ 76,274 $ 78,944 $ 81,707 Longevity 473 563 - 65 - - 90 180 Stipend - 2,500 500 750 - - 750 750 Retirement 7,824 8,830 6,485 8,882 8,350 9,916 10,412 10,932 Medical Insurance 4,945 4,301 341 - 4,830 5,781 6,070 6,374 Dental Insurance 344 353 330 387 390 414 435 456 Vision Insurance 82 79 73 81 78 81 85 89 Life Insurance & Other 366 922 358 474 490 626 648 671 Social Security Taxes 3,453 3,911 2,739 3,213 3,650 4,729 4,895 5,066 Medicare Taxes 808 915 641 762 886 1,106 1,145 1,185 Unemployment Taxes 261 9 213 207 - 207 214 222 Workman's Compensation 111 131 91 131 116 193 200 207 Pre-Employment Physicals/Testing - - 147 - 450 - - - Employee Relations 4,475 5,257 6,603 8,150 7,550 10,850 10,280 10,280 Tuition Reimbursement 8,451 7,509 7,049 10,100 4,100 6,500 6,500 6,500 Employee Assistance Program 2,727 2,303 2,442 2,688 2,500 2,880 3,072 3,264 Total Personnel $ 90,623 $ 97,595 $ 70,840 $ 87,655 $ 91,990 $ 119,557 $ 123,738 $ 127,882 Services/Supplies Physicals/Testing $ 1,909 $ 295 $ 190 $ 540 $ 150 $ 540 $ 540 $ 540 Advertising - - 345 - 800 - - - Printing 8 20 45 150 - 150 150 150 Schools & Training 299 2,095 300 1,000 1,300 1,000 1,000 1,000 Telephone 132 89 13 100 - - - - Communications/Pagers/Mobiles 228 857 454 900 625 900 900 900 Dues & Membership 240 255 315 250 300 300 300 300 Travel & Per Diem - 168 699 500 - 500 500 500 Meetings 20 - 39 - - - - - Office Supplies 544 1,030 723 1,000 600 600 600 600 Postage 236 307 139 300 175 325 325 350 Publications/Books/Subscriptions 600 60 180 100 - - - - Total Services/Supplies $ 4,215 $ 5,176 $ 3,442 $ 4,840 $ 3,950 $ 4,315 $ 4,315 $ 4,340 Total Expenditures $ 94,839 $ 102,771 $ 74,282 $ 92,495 $ 95,940 $ 123,872 $ 128,053 $ 132,222 97 Trophy Club, TX | Annual Program of Services FY15-16 Budget 97 INFORMATION SERVICES Mission To increase the productivity of Trophy Club services by developing and maintaining technological and informational support systems for the Town of Trophy Club. The Information Services Department seeks to enhance the Town's mission by improving the effectiveness and efficiency of operational processes which promotes financial and operational stewardship. Top 3 Accomplishments for FY15 • Migrated the police departments first generation personal video recorders (PVR) to the latest generation greatly improving audio and video quality. • Migrated Incode Permitting to their new Energov product. • Migrated our current online records to Laserfiche. Strategic Planning Goal 1- Cost effective solutions to current and future projects • Printer consumables • E-Cycle • Power efficient options Goal 2- Provide a secure infrastructure for all users and services within Trophy Club • Data security • Application/security patching • Security policies • Business continuity Goal 3- Support systems and applications that meet the goals of the whole organization • Online Records Migration Goal 4- Provide timely and efficient support services to all departments • Helpdesk monitoring • Network monitoring • Environmental monitoring Goal 5- Develop/maintain a technically-skilled staff that is competent in current and emerging technology • Texas Association of Governmental Information Technology Managers • Microsoft certification 98 Trophy Club, TX | Annual Program of Services FY15-16 Budget 98 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Personnel $172,777 $181,544 $186,288 $191,325 $190,312 $218,142 14% Services & Supplies 92,431 124,270 139,203 200,374 256,432 263,657 32% Capital 64,996 36,506 8,278 31,613 31,500 49,463 56% TOTAL $330,204 $342,319 $333,769 $423,312 $478,244 $531,262 26% PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Scheduled web services uptime 99%99%99%99%99% Scheduled server uptime 99%99%99%99%99% Applications supported 171 175 175 132 135 Devices/Servers supported 264 306 310 278 280 Performance Measures - Work Order Turnaround FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 GOAL Work order requests 702 1,025 1,035 808 850 Work orders resolved within 2 work days 77%82%83%76%80% Explanation Technology continues to play a pivotal role in the delivery of services for local governments. A quicker turnaround time on work orders leads to increased efficiency of service delivery. Council Objective Exercising fiscal discipline and taking a business-like approach to Town operations and budget prioritization. Measure It is the Town’s goal to respond and resolve work orders within 2 working days. PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED INFORMATION SERVICES DIRECTOR 1.00 1.00 1.00 NETWORK SUPPORT SPECIALIST 1.00 1.00 1.00 INTERN/PART-TIME NETWORK SPECIALIST 0.00 0.00 0.50 TOTAL FTEs 2.00 2.00 2.50 99 Trophy Club, TX | Annual Program of Services FY15-16 Budget 99 Information Services FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Personnel Salaries $ 131,133 $ 133,759 $ 137,092 $ 139,358 $ 142,080 $ 167,773 $ 173,645 $ 179,723 Longevity 975 1,125 1,455 1,620 1,635 1,800 1,980 2,160 Stipend - 3,500 3,000 1,500 1,500 1,500 1,500 1,500 Retirement 18,293 19,320 20,584 24,068 20,120 19,197 19,197 19,197 Medical Insurance 9,921 10,166 10,664 11,139 11,350 11,562 12,140 12,747 Dental Insurance 687 726 727 774 820 828 869 913 Vision Insurance 163 163 163 162 181 162 170 179 Life Insurance & Other 732 1,932 1,118 1,130 1,143 1,238 1,300 1,365 Social Security Taxes 8,167 8,554 8,765 8,741 8,980 10,514 10,882 11,263 Medicare Taxes 1,910 2,000 2,050 2,066 2,140 2,481 2,568 2,658 Unemployment Taxes 524 18 414 414 50 621 643 665 Workman's Compensation 272 281 257 353 313 466 482 499 Total Personnel $ 172,777 $ 181,544 $ 186,288 $ 191,325 $ 190,312 $ 218,142 $ 225,376 $ 232,868 Services/Supplies Software & Support $ 43,013 $ 79,168 $ 92,954 $ 147,602 $ 176,090 $ 170,947 $ 172,602 $ 174,261 Security 1,499 663 859 1,350 956 1,350 1,350 1,350 Schools & Training 3,352 2,800 840 3,500 3,200 3,650 3,650 3,650 Telephone 5,248 6,218 6,073 5,808 5,040 9,488 9,488 9,488 Communications/Pagers/Mobiles 1,506 2,036 2,358 2,716 3,436 30,476 30,476 30,476 Independent Labor 1,002 1,696 1,346 3,000 8,000 10,500 10,500 10,500 Copier Rental/Leases 6,202 6,164 9,634 7,908 7,908 9,136 9,136 9,136 Dues & Membership 100 300 100 250 150 250 250 250 Travel & Per Diem - 1,534 - 2,849 2,355 2,869 2,022 2,353 Meetings - - 56 72 50 122 122 122 Office Supplies 666 852 648 721 600 721 721 721 Printer Supplies 9,171 8,030 8,647 7,500 7,500 7,500 7,500 7,500 Postage 86 108 307 250 55 250 300 300 Uniforms - - - 225 225 125 125 125 Hardware 20,584 14,701 15,382 16,623 40,867 16,273 11,598 8,373 Total Services/Supplies $ 92,431 $ 124,270 $ 139,203 $ 200,374 $ 256,432 $ 263,657 $ 259,840 $ 258,605 Capital Capital Outlay $ 64,996 $ 36,506 $ 8,278 $ 31,613 $ 31,500 $ 49,463 $ 85,625 $ 58,000 Total Capital $ 64,996 $ 36,506 $ 8,278 $ 31,613 $ 31,500 $ 49,463 $ 85,625 $ 58,000 Total Expenditures $ 330,204 $ 342,319 $ 333,769 $ 423,312 $ 478,244 $ 531,262 $ 570,841 $ 549,473 100 Trophy Club, TX | Annual Program of Services FY15-16 Budget 100 FACILITY MAINTENANCE Mission To support the Town of Trophy Club in being a municipal service provider through efficient and environmentally sustainable operation and maintenance of the Town buildings. Facility Maintenance is a non-departmental expenditure, meaning that the expense is associated with the entire organization instead of a particular department. Facility management includes the utilities for the Town of Trophy Club facilities, maintenance on the facility, the cleaning service, and insurance for the facility. Facility Maintenance FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services/Supplies Electricity $ 13,584 $ 14,948 $ 12,870 $ 15,000 $ 12,000 $ 14,500 $ 14,500 $ 14,500 Water 1,027 926 1,038 1,860 1,100 1,200 1,250 1,300 Insurance 42,305 44,241 51,788 54,265 54,242 56,971 59,812 61,601 Building Maintenance 3,029 12,251 14,142 10,000 15,000 15,000 15,000 15,000 Equipment Maintenance - 150 362 250 500 250 250 250 Cleaning Services 2,801 448 - 17,292 18,208 17,658 17,658 17,658 Vending Machine Supplies 41 - - - - - - - Furniture/Equipment<$5,000 - - - 10,875 10,000 5,000 5,000 5,000 Maintenance Supplies 2,553 2,381 1,350 1,500 1,500 1,500 1,750 1,750 Total Services/Supplies $ 65,341 $ 75,344 $ 81,550 $ 111,042 $ 112,550 $ 112,079 $ 115,220 $ 117,059 Total Expenditures $ 65,341 $ 75,344 $ 81,550 $ 111,042 $ 112,550 $ 112,079 $ 115,220 $ 117,059 101 Trophy Club, TX | Annual Program of Services FY15-16 Budget 101 Other Major Funds Photo Credit: Mayor Pro Tem Greg Lamont 102 Trophy Club, TX | Annual Program of Services FY15-16 Budget 102 The Capital Projects Fund receives the proceeds from bonds or other legally authorized instruments issued for specific capital improvements and equipment. The related expenditures associated with capital projects are recorded in this fund. The Capital Improvement Program is reviewed each year by the Town Council to determine the need for projects and the issuance of debt to finance planned improvements or projects. In FY16 the budgeted fund balance in the Capital Projects Fund is expected to increase $1,286,696 or 99.5% from the FY15 estimated ending fund balance due to the issuance of bond proceeds not being fully expended in FY16. The Capital Projects Fund Balance includes funds originating from: A. 2010 General Obligation Bond - $5 million • The voters approved the bond for park projects which includes: ◊ Eastside Trail Head ◊ Harmony Park ◊ Independence Park ◊ Freedom Park ◊ Trail Improvements • The FY16 budget includes the remaining funds of $15,000 to be used for the toddler playground at Harmony Park B. 2010 Tax Note - $500,000 • This note was approved by Council for streets and parks capital equipment and park improvements. • The FY16 budget includes the remaining funds of $41,000 to be used for monument signs in the park system. C. 2012 Tax Note - $500,000 • This note was approved by Council for facility planning and land acquisition. • The FY16 budget includes the remaining funds of $143,803 to be used for architectural fees and professional services for the joint Town Hall and Police Facility. D. 2013 Certificate of Obligation - $3 million ($1.7 million is located in the Storm Drainage Fund) • Council approved this bond to be used for street ($1.3M) and drainage ($1.7M) projects which includes: ◊ Indian Creek – Street Reconstruction - Completed in FY15 ◊ Pebble Beach Drive – Street Reconstruction E. 2014 Certificate of Obligation – $2.5 million • Municipal and Police Services Facility Land Purchase: $1,346,833. • Remaining funds were reauthorized to be spent on professional services and construction of new joint Town Hall and Police Facility. F. 2014 Tax Note - $600,000 • Pebble Beach Drive – Street Reconstruction • Lakeview Practice Soccer Fields – Park Improvements • Pin Oak Court – Street Reconstruction • Timberline Court – Street Reconstruction G. Proposed Bond Package • $5.4 million General Obligation Bond for joint Town Hall and Police Facility • $4.35 Certificate of Obligation ◊ $2 million for the joint Town Hall and Police Facility (Serviced by the CCPD) ◊ $2.35 million for Streets Projects CAPITAL PROJECTS FUND 103 Trophy Club, TX | Annual Program of Services FY15-16 Budget 103 Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Beginning Fund Balance $ 1,599,988 $ 996,425 $ 2,065,909 $ 4,275,854 $ 4,505,273 $ 1,293,027 -70% Revenues 323,781 61,809 57,540 200,500 201,661 100 -100% Expenditures (1,427,344) (318,392) (768,476) (4,627,524) (3,413,907) (8,848,404)91% Other Sources (Uses) 500,000 1,326,067 3,150,300 385,000 - 10,135,000 2532% Net Increase (Decrease) (603,563) 1,069,484 2,439,364 (4,042,024) (3,212,246) 1,286,696 -132% Ending Fund Balance $ 996,425 $ 2,065,909 $ 4,505,273 $ 233,830 $ 1,293,027 $ 2,579,723 1003% Capital Projects Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 1,599,988 $ 996,425 $ 2,065,909 $ 4,275,854 $ 4,505,273 $ 1,293,027 $ 2,579,723 $ 2,904,823 Revenue Contributions/Grants $ 322,536 $ 30,230 $ - $ 200,000 $ 200,061 $ - $ - $ - Interest Revenue 1,245 1,429 1,548 500 1,600 100 100 100 Miscellaneous Revenue - 30,000 - - - - - - Intergovernmental Revenue - - 55,992 - - - - - Prior Year Adjustment - 150 - - - - - - Total Revenue $ 323,781 $ 61,809 $ 57,540 $ 200,500 $ 201,661 $ 100 $ 100 $ 100 Expenditures General Government $ 2,453 $ 51,089 $ 18,070 $ - $ 125,000 $ - $ - $ - Bond Issuance Costs 21,200 29,367 68,850 - - 97,500 40,000 32,500 Capital Outlay 1,403,691 237,936 681,556 4,627,524 3,288,907 8,750,904 4,135,000 2,256,000 Total Expenditures $ 1,427,344 $ 318,392 $ 768,476 $ 4,627,524 $ 3,413,907 $ 8,848,404 $ 4,175,000 $ 2,288,500 Other Sources (Uses) Debt Proceeds $ 500,000 $ 1,300,000 $ 3,100,000 $ - $ - $ 9,750,000 $ 4,000,000 $ 2,000,000 Bond Premium - 33,794 50,329 - - - - - Transfer In - - - 385,000 - 385,000 500,000 - Transfer Out - (7,727) (29) - - - - - Total Other Sources (Uses) $ 500,000 $ 1,326,067 $ 3,150,300 $ 385,000 $ - $10,135,000 $ 4,500,000 $ 2,000,000 Net Increase (Decrease) $ (603,563) $ 1,069,484 $ 2,439,364 $(4,042,024) $(3,212,246) $ 1,286,696 $ 325,100 $ (288,400) Ending Fund Balance $ 996,425 $ 2,065,909 $ 4,505,273 $ 233,830 $ 1,293,027 $ 2,579,723 $ 2,904,823 $ 2,616,423 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Ending Fund Balance 104 Trophy Club, TX | Annual Program of Services FY15-16 Budget 104 DEBT SERVICE FUND The Debt Service Fund is used for the accumulation of resources for payment of long-term debt principal and interest. The long-term debt is used to finance major capital improvements and equipment including the construction of parks, streets, public facilities, and other general government projects. Resources include an applicable portion of the Ad Valorem Tax Levy and related interest income usable for debt service. DEBT MANAGEMENT SUMMARY A. Debt Issuance. The Town issues debt only for the purpose of acquiring or constructing capital assets for the general benefit of its citizens and to allow it to fulfill its various missions as a town. Debt may be issued for the purposes of purchasing land or rights-of-way and/or improvements to land, for construction projects to provide for the general good, or for capital equipment. B. Types of Debt. ◊ General Obligation Bonds (GOs). General obligation bonds are used to fund capital assets of the general government, are not to be used to fund operating needs of the Town, and are backed by the full faith and credit of the Town, as well as, the ad valorem tax authority of the Town. General obligation bonds must be authorized by a vote of the citizens of the Town of Trophy Club. ◊ Certificates of Obligation (COs). Certificates of obligation are used to finance permanent improvements and land acquisition, the need for which arises between bond elections. In addition, they may also be used to finance costs associated with capital project overruns or to acquire equipment. Debt service for COs may be from general tax revenues under certain circumstances as defined by law. They may also be backed by a specific revenue stream(s) or by a combination of tax revenues and specific revenue streams. • Method of Sale. The Town uses a competitive bidding process in the sale of bonds unless the nature of the issue warrants a negotiated bid. In situations where a competitive bidding process is not elected, the Town will present the reasons why, and the Town will actively participate with the financial advisor in the selection of the underwriter or direct purchaser. • Bidding Parameters. The notice of sale will be carefully constructed so as to ensure the best possible bid for the Town, in light of the existing market conditions and other prevailing factors. Parameters to be examined include: ◊ Limits between lowest and highest coupons ◊ Coupon requirements relative to the yield curve ◊ Method of underwriter compensation, discount or premium coupons ◊ Use of true interest cost (TIC) versus net interest cost (NIC) ◊ Use of bond insurance ◊ Deep discount bonds ◊ Variable rate bonds ◊ Call provisions C. Analysis of Financing Alternatives. Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives include, but are not be limited to: 1) Grants-in-aid 2) Use of reserves 3) Use of current revenues 4) Contributions from other developers and others 5) Leases 6) Impact fees 105 Trophy Club, TX | Annual Program of Services FY15-16 Budget 105 D. Disclosure. Full disclosure of operations will be made to the bond rating agencies and other depositories of financial information as required by the Security and Exchange Commission (SEC) Rule 15c2-12, specifically, Texas Municipal Advisory Council (State Information Depository). E. Rating Agency Communication. Town management will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit preserved. The Town management, with the assistance of financial advisors and bond counsel, will prepare the necessary materials for presentation to the rating agencies, aid in the production of Official Statements, and take responsibility for the accuracy of all financial information released. F. Federal Requirements. The Town will maintain procedures to comply with arbitrage rebate and other federal requirements. G. Debt Limit. The State of Texas limits the ad valorem tax rate to $2.50 per $100 valuation. The Town of Trophy Club’s adopted rate of $0.484 per $100 valuation falls well below this limit. H. Bond Rating. The Town of Trophy Club went through a bond rating process in May 2014. Standard and Poor’s upgraded the Town’s bond rating to AA+. The Town’s bond rating directly affects the cost of debt. The Town’s policies are focused on issues which maintain high bond ratings and keep debt costs reasonable. Financial Summary FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED % Change (Bud. vs. Ad) Beginning Fund Balance $ 85,388 $ 94,267 $ 119,722 $ 122,222 $ 118,092 $ 105,367 -14% Revenues 1,287,814 1,911,619 1,361,109 1,498,553 1,507,248 1,704,968 14% Expenditures (1,360,266) (2,750,417) (1,403,122) (1,573,662) (1,575,613) (1,727,067)10% Other Sources (Uses) 81,331 864,253 40,383 127,350 55,640 87,206 -32% Net Increase (Decrease) 8,879 25,455 (1,630) 52,241 (12,725) 65,107 25% Ending Fund Balance $ 94,267 $ 119,722 $ 118,092 $ 174,463 $ 105,367 $ 170,474 -2% 106 Trophy Club, TX | Annual Program of Services FY15-16 Budget 106 Debt Services Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 85,388 $ 94,267 $ 119,722 $ 122,222 $ 118,092 $ 105,367 $ 170,474 $ 214,943 Revenue Property Taxes $1,049,656 $1,163,144 $1,351,988 $1,490,172 $1,489,851 $1,697,277 $ 1,815,800 $ 1,984,452 Property Taxes/Delinquent 7,389 11,959 5,091 4,356 11,598 4,465 4,499 4,784 Property Taxes/Penalty & Interest 6,967 5,774 3,784 3,775 5,799 2,976 2,999 3,189 Intergovernmental Transfer EDC 222,922 729,909 - - - - - - Interest Income 880 833 246 250 - 250 300 400 Total Revenue $1,287,814 $1,911,619 $1,361,109 $1,498,553 $1,507,248 $1,704,968 $1,823,598 $1,992,825 Expenditures Bond Principal $ 885,000 $2,294,000 $ 998,000 $1,088,000 $1,088,000 $1,339,500 $ 1,293,600 $ 1,563,600 Bond Interest 471,016 451,417 398,872 481,912 441,127 383,067 682,916 619,296 Paying Agent Fees 4,250 5,000 6,250 3,750 3,750 4,500 4,500 4,500 Bond/CO Issuance cost - - - - 42,736 - - - Total Expenditures $1,360,266 $2,750,417 $1,403,122 $1,573,662 $1,575,613 $1,727,067 $ 1,981,016 $ 2,187,396 Other Sources (Uses) Bond Proceeds $ - $ - $ - $ - $2,030,000 $ - $ - $ - Refund Cost - - - - (2,026,710) - - - Transfer In 81,331 864,253 40,383 127,350 52,350 87,206 201,887 202,209 Total Other Sources (Uses) $ 81,331 $ 864,253 $ 40,383 $ 127,350 $ 55,640 $ 87,206 $ 201,887 $ 202,209 Net Increase (Decrease) $ 8,879 $ 25,455 $ (1,630) $ 52,241 $ (12,725) $ 65,107 $ 44,468 $ 7,637 Ending Fund Balance $ 94,267 $ 119,722 $ 118,092 $ 174,463 $ 105,367 $ 170,474 $ 214,943 $ 222,580 $- $50,000 $100,000 $150,000 $200,000 $250,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Ending Fund Balance 107 Trophy Club, TX | Annual Program of Services FY15-16 Budget 107 Debt Services Fund Revenue & Other Sources ($1,792,174) Total Debt Service Principal Interest Total 2016 $ 1,378,000 $ 390,342 $ 1,768,342 2017 798,000 357,103 1,155,103 2018 828,000 332,705 1,160,705 2019 853,000 307,331 1,160,331 2020 883,000 284,360 1,167,360 2021 898,000 258,178 1,156,178 2022 938,000 228,193 1,166,193 2023 758,000 196,796 954,796 2024 775,000 172,757 947,757 2025 770,000 147,910 917,910 2026 560,000 123,519 683,519 2027 580,000 103,388 683,388 2028 600,000 82,425 682,425 2029 495,000 62,744 557,744 2030 515,000 43,200 558,200 2031 150,000 22,863 172,863 2032 155,000 17,613 172,613 2033 160,000 12,188 172,188 2034 165,000 6,188 171,188 $12,259,000 $ 3,149,800 $15,408,800 Town of Trophy Club Debt Schedule* *Does not include proposed debt issuances. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Property Taxes Property Taxes/Delinquent Property Taxes/Penalty & Interest Intergovernmental Transfer EDC Interest Income Transfer In 108 Trophy Club, TX | Annual Program of Services FY15-16 Budget 108 2004 CO 2007 GO 2010 GO Principal Interest Total Principal Interest Total Principal Interest Total 2016 $ 33,000 $ 14,439 $ 47,439 $ 150,000 $ 18,800 $ 168,800 $ 200,000 $ 159,106 $ 359,106 2017 33,000 12,810 45,810 155,000 12,800 167,800 210,000 153,106 363,106 2018 33,000 11,221 44,221 165,000 6,600 171,600 220,000 146,806 366,806 2019 33,000 9,632 42,632 230,000 140,206 370,206 2020 33,000 8,065 41,065 240,000 133,306 373,306 2021 33,000 6,453 39,453 250,000 123,706 373,706 2022 33,000 4,864 37,864 260,000 113,706 373,706 2023 33,000 3,275 36,275 275,000 103,306 378,306 2024 35,000 1,690 36,690 285,000 92,306 377,306 2025 300,000 80,906 380,906 2026 310,000 68,906 378,906 2027 325,000 56,506 381,506 2028 340,000 43,506 383,506 2029 355,000 29,906 384,906 2030 370,000 15,263 385,263 2031 2032 2033 2034 $ 299,000 $ 72,450 $ 371,450 $470,000 $38,200 $508,200 $4,170,000 $1,460,550 $5,630,550 2010 GO Refunding 2013 CO 2014 CO Principal Interest Total Principal Interest Total Principal Interest Total 2016 $ 175,000 $ 43,275 $ 218,275 $ 70,000 $ 33,787 $ 103,787 $ 100,000 $ 72,888 $ 172,888 2017 180,000 38,900 218,900 75,000 31,975 106,975 105,000 70,888 175,888 2018 185,000 33,500 218,500 80,000 30,038 110,038 105,000 68,788 173,788 2019 190,000 27,950 217,950 85,000 27,975 112,975 105,000 66,688 171,688 2020 195,000 22,250 217,250 85,000 25,850 110,850 110,000 64,588 174,588 2021 200,000 16,400 216,400 85,000 23,725 108,725 110,000 62,388 172,388 2022 210,000 8,400 218,400 90,000 21,425 111,425 115,000 59,088 174,088 2023 95,000 18,881 113,881 120,000 55,638 175,638 2024 95,000 16,150 111,150 120,000 52,038 172,038 2025 100,000 13,225 113,225 125,000 48,438 173,438 2026 120,000 9,925 129,925 130,000 44,688 174,688 2027 125,000 6,094 131,094 130,000 40,788 170,788 2028 125,000 2,031 127,031 135,000 36,888 171,888 2029 140,000 32,838 172,838 2030 145,000 27,938 172,938 2031 150,000 22,863 172,863 2032 155,000 17,613 172,613 2033 160,000 12,188 172,188 2034 165,000 6,188 171,188 $ 1,335,000 $ 190,675 $ 1,525,675 $ 1,230,000 $ 261,081 $ 1,491,081 $ 2,425,000 $ 863,413 $ 3,288,413 109 Trophy Club, TX | Annual Program of Services FY15-16 Budget 109 2014 Tax Notes 2015 GO Refunding Principal Interest Total Principal Interest Total 2016 $ 300,000 $ 1,335 $ 301,335 $ 350,000 $ 46,713 $ 396,713 2017 - 40,000 36,624 76,624 2018 - 40,000 35,752 75,752 2019 - 210,000 34,880 244,880 2020 - 220,000 30,302 250,302 2021 - 220,000 25,506 245,506 2022 - 230,000 20,710 250,710 2023 - 235,000 15,696 250,696 2024 - 240,000 10,573 250,573 2025 - 245,000 5,341 250,341 2026 - 2027 - 2028 - 2029 2030 2031 2032 2033 2034 $ 300,000 $ 1,335 $ 301,335 $ 2,030,000 $ 262,097 $ 2,292,097 Annual Debt Services By Issuance* $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2004 CO Total 2007 GO Total 2010 GO Total 2010 GO Refunding Total 2013 CO Total 2014 CO Total 2014 Tax Notes Total 2015 GO Refunding Total *Does not include proposed debt issuances. 110 Trophy Club, TX | Annual Program of Services FY15-16 Budget 110 Special Revenue Funds 111 Trophy Club, TX | Annual Program of Services FY15-16 Budget 111 COURT SECURITY FUND Fund Description The Court Security Fund is used for the purpose of providing security personnel, services, and security equipment to the Trophy Club Municipal Court and to promote financial stewardship by delivering responsive customer service. This fund is primarily used to offset the expenditures associated with providing bailiff services for the Trophy Club Municipal Court. $- $5,000 $10,000 $15,000 $20,000 $25,000 Ending Fund Balance Court Security Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ - $ 17,448 $ 22,147 $ 22,526 $ 22,293 $ 21,793 $ 21,793 $ 21,893 Revenue Municipal Court Security Fee $ 3,499 $ 4,699 $ 3,146 $ 3,788 $ 2,500 $ 3,000 $ 3,100 $ 3,200 Total Revenue $ 3,499 $ 4,699 $ 3,146 $ 3,788 $ 2,500 $ 3,000 $ 3,100 $ 3,200 Total Expenditures $ - $ - $ - $ - $ - $ - $ - $ - Other Sources (Uses) Transfer In $ 13,949 $ - $ - $ - $ - $ - $ - $ - Transfer Out - - (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) Total Other Sources (Uses) $ 13,949 $ - $ (3,000) $ (3,000) $ (3,000) $ (3,000) $ (3,000) $ (3,000) Net Increase (Decrease) $ 17,448 $ 4,699 $ 146 $ 788 $ (500) $ - $ 100 $ 200 Ending Fund Balance $ 17,448 $ 22,147 $ 22,293 $ 23,314 $ 21,793 $ 21,793 $ 21,893 $ 22,093 112 Trophy Club, TX | Annual Program of Services FY15-16 Budget 112 COURT TECHNOLOGY FUND Fund Description The Court Technology Fund is used for the sole purpose of financing the purchase or maintenance of technological enhancements for the Trophy Club Municipal Court and promoting financial and operational stewardship by improving the effectiveness and efficiency of operational processes. The court technology fee is primarily used to offset the costs related to the annual maintenance and support of the Incode Court Software system along with any other technology purchases made by the municipal court. Ending Fund Balance Court Technology Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ - $ 32,514 $ 38,780 $ 22,071 $ 23,960 $ 21,437 $ 20,237 $ 19,072 Revenue Municipal Court Technology Fee $ 4,510 $ 6,265 $ 4,194 $ 5,000 $ 3,400 $ 4,000 $ 4,135 $ 4,270 Miscellaneous Revenue - - 2,750 - - - - - Total Revenue $ 4,510 $ 6,265 $ 6,944 $ 5,000 $ 3,400 $ 4,000 $ 4,135 $ 4,270 Expenditures Services & Supplies Software & Support $ - $ - $ 2,494 $ 5,730 $ 5,118 $ 5,200 $ 5,300 $ 5,400 Hardware 1,240 - 5,830 - 805 - - - Total Services & Supplies $ 1,240 $ - $ 8,324 $ 5,730 $ 5,923 $ 5,200 $ 5,300 $ 5,400 Capital Capital Outlay $ - $ - $ 13,440 $ - $ - $ - $ - $ - Total Capital Outlay $ - $ - $ 13,440 $ - $ - $ - $ - $ - Total Expenditures $ 1,240 $ - $ 21,764 $ 5,730 $ 5,923 $ 5,200 $ 5,300 $ 5,400 Other Sources (Uses) Transfer In $ 29,244 $ - $ - $ - $ - $ - $ - $ - Total Other Sources (Uses) $ 29,244 $ - $ - $ - $ - $ - $ - $ - Net Increase (Decrease) $ 32,514 $ 6,265 $ (14,819) $ (730) $ (2,523) $ (1,200) $ (1,165) $ (1,130) Ending Fund Balance $ 32,514 $ 38,780 $ 23,960 $ 21,341 $ 21,437 $ 20,237 $ 19,072 $ 17,942 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED 113 Trophy Club, TX | Annual Program of Services FY15-16 Budget 113 CRIME CONTROL PREVENTION DISTRICT FUND Fund Description Chapter 363 of the Texas Local Government Code allows for the creation of a Crime Control and Prevention District (CCPD). CCPD is a local sales tax funded organization, governed by an independent board appointed by the Town Council that may finance all costs of a crime control and crime prevention program, including costs for personnel, administration, expansion, enhancement and capital expenditures. Sales tax funds the CCPD with 0.25%, which the voters approved on May 11, 2013. CCPD Goals Throughout the history of law enforcement in America, changes in technology ushered in changes in crime control strategies. As equipment, technology, and training have improved agencies moved from the traditional model, to the professional model, to the community policing model, and finally to the intelligence-led model. The Trophy Club Police Department recognizes the effectiveness of the two most recent models but also recognizes the effectiveness of traditional law enforcement practices such as rapid response to calls for service. The Trophy Club Police Department primarily uses a hybrid form of community policing, embracing the problem-solving and partnership aspects of community policing. Also included are what many consider a more traditional response by having a uniformed officer respond to all calls for service as quickly as time permits. Detectives follow-up on all criminal events. However, in keeping with the problem oriented/community oriented model, officers look for potential problem areas where there are reoccurring problems and partner with residents and other stake holders to resolve those problems. The Town of Trophy Club is a proactive town and its police department is no different. The department attempts to equip its staff with the most effective safety and crime fighting equipment they can reasonably afford. Funding sources have traditionally included the General Fund and grants. There are obvious limits on these sources of funding. Any increase to the sales tax rate such as proposed through the creation of the CCPD will collect taxes from non-residents who consume law enforcement services and provide needed funding to improve public safety. The 1/4 of a cent sales tax allocated for the CCPD appears as a fair way of spreading that burden because the choice to make purchases for which sales tax dollars are collected rests solely with the purchaser. Goal 1: Support the future police building. Goal 2: Equipment and New Technology – In order to carry out its mission, the police department must equip and train its officers with various tools to maintain and improve public safety. Such tools may include small equipment assigned to individual officers up to capital equipment. Police department Supervisors, along with the Town’s Information Services staff continually evaluate new technology that can be employed to enhance our capabilities and efficiency. Goal 3: Critical law enforcement services in the Town of Trophy Club rely upon establishing minimum staffing levels in specific areas in order to carry out its mission. 114 Trophy Club, TX | Annual Program of Services FY15-16 Budget 114 CCPD FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ - $ - $ 23,007 $ 92,246 $ 93,746 $ 38,491 $ 42,524 $ 38,369 Revenue Sales Tax $ - $ 23,007 $ 141,855 $ 147,272 $ 166,361 $ 186,433 $ 217,345 $ 222,488 Interest Income - - 45 - 100 - - - Total Revenue $ - $ 23,007 $ 141,900 $ 147,272 $ 166,461 $ 186,433 $ 217,345 $ 222,488 Expenditures Services & Supplies Uniforms $ - $ - $ - $ - $ 5,400 $ 6,400 $ 5,500 $ 6,000 Small Equipment - - 27,564 36,285 48,816 51,000 24,000 32,500 Total Services & Supplies $ - $ - $ 27,564 $ 36,285 $ 54,216 $ 57,400 $ 29,500 $ 38,500 Capital Capital Outlay $ - $ - $ 43,597 $ 47,179 $ 167,500 $ 125,000 $ 42,000 $ 30,500 Total Capital $ - $ - $ 43,597 $ 47,179 $ 167,500 $ 125,000 $ 42,000 $ 30,500 Total Expenditures $ - $ - $ 71,161 $ 83,464 $ 221,716 $ 182,400 $ 71,500 $ 69,000 Other Sources (Uses) Transfer Out $ - $ - $ - $ (75,000) $ - $ - $ (150,000) $ (150,000) Total Other Sources (Uses) $ - $ - $ - $ (75,000) $ - $ - $ (150,000) $ (150,000) Net Increase (Decrease) $ - $ 23,007 $ 70,740 $ (11,192) $ (55,255) $ 4,033 $ (4,155) $ 3,488 Ending Fund Balance $ - $ 23,007 $ 93,746 $ 81,054 $ 38,491 $ 42,524 $ 38,369 $ 41,857 Ending Fund Balance $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED 115 Trophy Club, TX | Annual Program of Services FY15-16 Budget 115 ECONOMIC DEVELOPMENT CORPORATION 4B FUND Fund Description The Town of Trophy Club Economic Development 4B (EDC 4B) is used to promote economic development within the Town. Funded by 0.5% of sales tax receipts, the Trophy Club EDC 4B aims to design superior strategies and oversight plans that are geared toward intensifying economic activity and heightening the already superior Trophy Club lifestyle. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Ending Fund Balance $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Revenues Expenditures Revenues Vs. Expenditures 116 Trophy Club, TX | Annual Program of Services FY15-16 Budget 116 EDC 4B FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 341,135 $ 382,708 $ 188,704 $ 332,636 $ 339,715 $ 490,480 $ 485,089 $ 536,138 Revenue Sales Tax - General $ 147,391 $ 246,997 $ 322,784 $ 327,272 $ 349,342 $ 365,109 $ 426,749 $ 436,847 Advertising Revenue 13,850 - - - - - - - NTX Magazine Revenue - - 3,938 - - - - - Interest Income - - 179 300 300 450 600 900 Total Revenue $ 161,241 $ 246,997 $ 326,901 $ 327,572 $ 349,642 $ 365,559 $ 427,349 $ 437,747 Expenditures Auditing $ 1,000 $ 3,500 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Election - 6,116 - - - - - - Advertising 12,953 2,910 7,704 3,000 3,780 5,200 6,900 6,400 Printing - - 1,000 500 - 500 500 750 Discover Trophy Club Magazine - - - - - - - - Schools & Training 1,766 1,955 1,430 2,120 270 1,310 1,310 1,310 Dues & Membership 300 400 650 1,050 600 1,050 1,150 1,150 Travel & Per Diem 2,396 153 132 1,533 30 694 694 694 Office Supplies 872 522 220 400 250 250 250 250 Community Events - - - - - - - - Miscellaneous Expense 2,983 12,427 6,059 7,100 5,234 7,950 9,950 9,950 EDC Projects 23,464 123,285 36,133 11,850 3,900 3,750 11,350 3,950 Incentive Programs - - - 140,773 93,848 140,773 140,773 140,773 Transfer to General Fund 47,151 55,200 66,597 155,634 89,964 - - - Transfer to Debt Service 26,783 234,533 54,964 - - - - - Debt Service ----- 208,473 202,423 200,823 Total Expenditures $ 119,668 $ 441,001 $ 175,890 $ 324,960 $ 198,876 $ 370,950 $ 376,300 $ 367,050 Net Increase (Decrease) $ 41,573 $ (194,004) $ 151,011 $ 2,612 $ 150,766 $ (5,391) $ 51,049 $ 70,697 Ending Fund Balance $ 382,708 $ 188,704 $ 339,715 $ 335,248 $ 490,480 $ 485,089 $ 536,138 $ 606,835 117 Trophy Club, TX | Annual Program of Services FY15-16 Budget 117 HOTEL OCCUPANCY Fund Description Hotel occupancy tax revenue is used to promote tourism in Trophy Club by developing strong community partnerships which create a positive regional identity. Created for Fiscal Year 2007-2008, Town Council adopted and levied tax for the occupancy of hotel rooms. The Hotel Occupancy Tax Fund’s primary function is to account for the receipt and distribution of the Town’s Hotel/Motel Occupancy Tax and promote tourism to Trophy Club. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Revenues Vs. Expenditures Ending Fund Balance $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Total Revenue Total Expenses 118 Trophy Club, TX | Annual Program of Services FY15-16 Budget 118 Hotel Occupancy Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 1,890 $ 1,321 $ 87,225 $ 285,590 $ 283,481 $ 451,931 $ 551,126 $ 714,125 Revenue Hotel Occupancy Tax $ 20,543 $ 108,170 $ 235,796 $ 233,416 $ 252,000 $ 354,520 $ 458,065 $ 462,646 Interest Income 32 11 163 300 450 500 600 900 Total Revenue $ 20,575 $ 108,181 $ 235,959 $ 233,716 $ 252,450 $ 355,020 $ 458,665 $ 463,546 Expenditures Advertising $ - $ - $ - $ - $ - $ 83,000 $ 84,500 $ 64,500 Printing - - - - 15,000 - 35,000 - Event Rentals 20,719 22,277 39,703 38,825 45,000 46,825 49,166 51,624 July 4 Celebration 425 - - - 24,000 26,000 27,000 28,000 Total Expenditures $ 21,144 $ 22,277 $ 39,703 $ 38,825 $ 84,000 $ 155,825 $ 195,666 $ 144,124 Other Sources (Uses) Transfer Out $ - $ - $ - $ - $ - $ (100,000) $ (100,000) $ (100,000) Total Other Sources (Uses) $ - $ - $ - $ - $ - $ (100,000) $ (100,000) $ (100,000) Net Increase (Decrease) $ (569) $ 85,904 $ 196,256 $ 194,891 $ 168,450 $ 99,195 $ 162,999 $ 219,422 Ending Fund Balance $ 1,321 $ 87,225 $ 283,481 $ 480,481 $ 451,931 $ 551,126 $ 714,125 $ 933,547 119 Trophy Club, TX | Annual Program of Services FY15-16 Budget 119 STREET MAINTENANCE SALES TAX FUND Fund Description The Street Maintenance Sales Tax Fund is used to provide a safe, clean, and well-maintained roadway system to the residents of Trophy Club. This fund recieves all of its revenue from 0.25% sales tax. PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED STREET MAINTENANCE WORKER 0.7 0.7 0.7 TOTAL FTEs 0.7 0.7 0.7 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED $0 $50,000 $100,000 $150,000 $200,000 $250,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Revenues Expenditures Revenues Vs. Expenditures Ending Fund Balance 120 Trophy Club, TX | Annual Program of Services FY15-16 Budget 120 Street Maintenance Sales Tax Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 34,750 $ 75,999 $ 46,700 $ 24,268 $ 39,915 $ 49,584 $ 46,726 $ 73,200 Revenue Sales Tax $ 147,391 $ 148,159 $ 161,392 $ 163,636 $ 174,671 $ 182,554 $ 213,374 $ 218,424 Total Revenue $ 147,391 $ 148,159 $ 161,392 $ 163,636 $ 174,671 $ 182,554 $ 213,374 $ 218,424 Expenditures Personnel Salaries $ 17,821 $ 22,799 $ 16,110 $ 22,041 $ 21,700 $ 22,612 $ 23,403 $ 24,106 Overtime 114 174 317 - 1,350 - - - Longevity 160 340 405 - - 59 94 129 Stipend - 720 864 540 360 525 525 525 Retirement 2,517 3,365 2,615 3,814 3,160 3,016 3,122 3,215 Medical insurance 2,962 3,652 2,443 5,087 5,000 5,250 5,513 5,788 Dental Insurance 198 261 167 392 440 408 428 450 Vision Insurance 47 59 37 99 102 97 97 97 Life Insurance & Other 142 388 146 246 230 245 254 261 Social Security Taxes 1,173 1,490 1,119 1,367 1,194 1,406 1,455 1,499 Medicare Taxes 280 348 262 327 296 336 346 356 Unemployment Taxes 160 6 149 149 90 145 149 154 Workman's Compensation 972 1,166 1,630 1,338 1,185 1,373 1,414 1,457 Total Personnel $ 26,546 $ 34,768 $ 26,264 $ 35,400 $ 35,107 $ 35,472 $ 36,800 $ 38,037 Services & Supplies Vehicle Maintenance $ - $ 883 $ 1,565 $ 3,700 $ 3,700 $ 3,700 $ 3,700 $ 3,700 Street Maintenance 41,495 69,958 99,456 70,000 50,000 100,000 100,000 100,000 Signs & Markings 23,166 27,790 19,687 15,000 43,995 15,000 15,000 15,000 Fuel 2,984 5,611 7,892 6,500 6,500 5,540 5,700 5,900 Small Tools - - - 700 700 700 700 700 Miscellaneous Expense - - 25 - - - - - Total Service & Supplies $ 67,645 $ 104,242 $ 128,626 $ 95,900 $ 104,895 $ 124,940 $ 125,100 $ 125,300 Total Expenditures $ 94,191 $ 139,010 $ 154,890 $ 131,300 $ 140,002 $ 160,412 $ 161,900 $ 163,337 Other Sources (Uses) Transfer Out $ (11,951) $ (38,448) $ (13,287) $ (25,000) $ (25,000) $ (25,000) $ (25,000) $ (25,000) Total Sources Other (Uses) $ (11,951) $ (38,448) $ (13,287) $ (25,000) $ (25,000) $ (25,000) $ (25,000) $ (25,000) Net Increase (Decreases) $ 41,249 $ (29,299) $ (6,785) $ 7,336 $ 9,669 $ (2,858) $ 26,474 $ 30,087 Ending Fund Balance $ 75,999 $ 46,700 $ 39,915 $ 31,604 $ 49,584 $ 46,726 $ 73,200 $ 103,287 121 Trophy Club, TX | Annual Program of Services FY15-16 Budget 121 TAX INCREMENT REINVESTMENT ZONE #1 FUND Fund Description The Tax Increment Reinvestment Zone #1 (TIRZ#1) fund was created to aid development of the Trophy Wood District through the contribution of 60% of the Town’s real property increment, and 25% of the Towns $0.01 general fund sales tax generated within the zone. Tarrant County contributes 60% of their real property increment, as well. Ending Fund Balance TIRZ #1 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ - $ - $ - $ - $ - $ 8,291 $ 15,386 $ 119,748 Revenue Property Tax $ - $ - $ - $ 8,291 $ 8,291 $ 6,095 $ 75,000 $ 95,000 Sales Tax - - - 475 - 1,000 29,362 37,619 Total Revenue $ - $ - $ - $ 8,766 $ 8,291 $ 7,095 $ 104,362 $ 132,619 Total Expenditures $ - $ - $ - $ - $ - $ - $ - $ - Total Other Sources (Uses) $ - $ - $ - $ - $ - $ - $ - $ - Net Increase (Decrease) $ - $ - $ - $ 8,766 $ 8,291 $ 7,095 $ 104,362 $ 132,619 Ending Fund Balance $ - $ - $ - $ 8,766 $ 8,291 $ 15,386 $ 119,748 $ 252,367 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED 122 Trophy Club, TX | Annual Program of Services FY15-16 Budget 122 RECREATION PROGRAM FUND Fund Description The Recreational Program Fund was created to account for the revenues and expenditures associated with recreational programs within the Town of Trophy Club. Expenditures are expected to be matched with program revenues. $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Revenues Vs. Expenditures Recreational Programs Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ - $ - $ - $ 4,000 $ 2,812 $ 2,812 $ 2,812 $ 2,812 Revenue Recreation Programs $ - $ - $ 15,593 $ 4,000 $ 6,500 $ 8,000 $ 8,500 $ 9,000 Total Revenue $ - $ - $ 15,593 $ 4,000 $ 6,500 $ 8,000 $ 8,500 $ 9,000 Expenditures Recreational Programs $ - $ - $ 12,781 $ 4,000 $ 6,500 $ 8,000 $ 8,500 $ 9,000 Total Expenditures $ - $ - $ 12,781 $ 4,000 $ 6,500 $ 8,000 $ 8,500 $ 9,000 Net Increase (Decrease) $ - $ - $ 2,812 $ - $ - $ - $ - $ - Ending Fund Balance $ - $ - $ 2,812 $ 4,000 $ 2,812 $ 2,812 $ 2,812 $ 2,812 123 Trophy Club, TX | Annual Program of Services FY15-16 Budget 123 ANNIVERSARY FUND Fund Description The Anniversary Fund was created due to remaining donations that were specifically collected for the celebration of the Town of Trophy Club’s 25th Anniversary. These funds can only be used to purchase services and supplies for anniversary events. Ending Fund Balance $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Anniversary Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Fund Balance $ 2,114 $ 2,114 $ 2,114 $ 2,114 $ 2,114 $ 4,614 $ 4,614 $ 4,614 Revenue Miscellaneous Contributions $ - $ - $ - $ - $ 10,700 $ - $ - $ - Total Revenue $ - $ - $ - $ - $ 10,700 $ - $ - $ - Expenditures Community Events $ - $ - $ - $ - $ 8,200 $ - $ - $ - Total Expenditures $ - $ - $ - $ - $ 8,200 $ - $ - $ - Net Increase (Decrease) $ - $ - $ - $ - $ 2,500 $ - $ - $ - Ending Fund Balance $ 2,114 $ 2,114 $ 2,114 $ 2,114 $ 4,614 $ 4,614 $ 4,614 $ 4,614 124 Trophy Club, TX | Annual Program of Services FY15-16 Budget 124 Proprietary Funds Photo Credit: April Reiling 125 Trophy Club, TX | Annual Program of Services FY15-16 Budget 125 TROPHY CLUB PARK FUND Fund Description To provide the facilities and programs that meet the recreational needs of Trophy Club as it develops, preserve open space for the enjoyment of all visitors and provide specific areas for environmental education. The Trophy Club Park Fund is aimed towards ensuring that all current Trophy Club Park facilities and programs are maintained and operated at a standard of excellence. To this end, the Fund is also intended to explore and create new facilities and programs that allow Trophy Club residents to utilize the park resources to the fullest extent possible. Much of the equestrian/pedestrian trail work in this park continues to be performed by volunteers. PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Motorized trails maintained (miles)9 9 9 9 9 Non-motorized trails maintained (miles)3 4 7 7 7 Park attendant monitoring (hours per week)32 32 32 32*32* Special events at park 8 6 6 0*3* Classes offered at park 4 4 3 0*2* # of volunteer hours ---1,174 900 * Due to flooding TCP ATV trails were closed for the majority of FY15 and is projected to open mid-way through FY16 Ending Working Capital PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED RECREATION SUPERINTENDENT 0.40 0.40 0.40 TCP GATE ATTENDANT 1.08 1.08 1.08 TOTAL FTEs 1.48 1.48 1.48 $(80,000) $(70,000) $(60,000) $(50,000) $(40,000) $(30,000) $(20,000) $(10,000) $- $10,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTEDPhoto Credit: April Reiling 126 Trophy Club, TX | Annual Program of Services FY15-16 Budget 126 Revenues Vs. Expenditures Trophy Club Park FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Working Capital $ (34,642) $ (26,115) $ (6,470) $ 4,389 $ 1,830 $ (70,458) $ (66,264) $ (54,026) Revenue Park Revenue $ 138,712 $ 130,663 $ 150,925 $ 153,752 $ 90,000 $ 165,000 $ 168,000 $ 171,000 Interest Income - - - - - - - - Total Revenue $ 138,712 $ 130,663 $ 150,925 $ 153,752 $ 90,000 $ 65,000 $ 168,000 $ 171,000 Expenses Personnel Salaries $ 36,506 $ 38,612 $ 40,096 $ 43,008 $ 40,600 $ 45,544 $ 47,138 $ 48,552 Longevity - 64 88 112 112 204 286 368 Stipend - 600 600 300 900 300 300 300 Retirement 2,939 3,117 3,487 4,222 3,620 3,504 3,627 3,735 Medical Insurance 1,984 2,029 2,520 2,826 2,620 3,000 3,150 3,308 Dental Insurance 137 145 147 155 227 233 245 257 Vision Insurance 33 33 33 32 39 32 32 32 Life Insurance & Other 146 357 209 211 245 239 247 255 Social Security Taxes 2,240 2,433 2,457 2,673 2,400 2,836 2,935 3,023 Medicare Taxes 524 569 574 630 600 668 688 709 Unemployment taxes 489 59 403 306 84 306 315 325 Workman's Compensation 877 896 768 1,033 915 1,094 1,127 1,161 Pre-Employment Physicals/Testing 102 4 - - - - - - Total Personnel $ 45,976 $ 48,917 $ 51,383 $ 55,508 $ 52,362 $ 57,960 $ 60,090 $ 62,024 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Total Revenue Total Expenses 127 Trophy Club, TX | Annual Program of Services FY15-16 Budget 127 Trophy Club Park FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services & Supplies Professional Outside Services $ - $ - $ - $ 5,000 $ 2,500 $ 2,500 $ - $ - Auditing - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Software & Support 453 3,493 2,444 3,849 6,596 7,241 4,316 4,316 Collection Fees - 1,215 - - - - - - Advertising 1,514 1,808 2,640 1,500 1,650 1,235 1,235 1,235 Printing 712 - - 1,416 1,244 - - 1,000 Schools & Training 879 663 1,825 340 200 - - - Service Charges & Fees 6,043 3,298 2,859 6,000 6,495 8,495 8,495 8,495 Electricity 2,068 3,392 2,625 3,600 2,500 2,800 2,800 2,800 Water 2,054 1,650 1,720 1,697 2,905 1,747 1,799 1,852 Telephone 998 1,178 1,521 1,600 1,825 1,900 1,900 1,900 Communications/Pagers/Mobiles 1,547 1,626 2,001 1,560 1,700 933 933 933 Insurance - - - - - 1,200 1,200 1,200 Property Maintenance 37,382 7,131 26,249 10,500 15,674 10,500 10,500 10,500 Equipment Maintenance 2,176 (911) 5,243 2,426 2,576 2,384 2,384 2,384 Independent Labor - 11,798 10,800 10,200 8,000 26,600 26,600 26,600 Portable toilets 3,590 3,590 3,944 4,000 3,644 3,644 3,644 3,644 Dues & Membership 200 199 60 320 250 250 250 250 Travel & Per Diem 854 424 776 387 505 492 507 522 Office Supplies 151 294 347 1,013 1,013 1,044 1,075 1,107 Postage 169 25 94 318 200 327 336 346 Fuel 259 374 1,232 1,490 1,000 1,250 1,300 1,350 Uniforms 456 383 333 645 520 520 520 520 Community Events 5,587 5,269 8,362 6,500 12,000 14,900 14,900 14,900 Small Tools 1,883 1,384 1,010 1,400 1,000 1,200 1,200 1,200 Furniture/Equipment<$5,000 - - 590 1,720 1,866 1,920 - - Maintenance Supplies 2,185 515 717 451 451 464 478 493 Miscellaneous Expense 426 - - 557 500 300 300 300 Total Services & Supplies $ 71,586 $ 49,800 $ 78,393 $ 69,489 $ 77,814 $ 94,846 $ 87,672 $ 88,847 Capital Capital Expenses $ 12,623 $ - $ 4,850 $ 25,330 $ 24,112 $ - $ - $ - Total Capital $ 12,623 $ - $ 4,850 $ 25,330 $ 24,112 $ - $ - $ - Total Expenses $ 130,185 $ 98,717 $ 134,625 $ 150,327 $ 154,288 $ 152,806 $ 147,762 $ 150,871 Other Sources (Uses) Transfer Out $ - $ (12,300) $ (8,000) $ (8,000) $ (8,000) $ (8,000) $ (8,000) $ (8,000) Total Other Sources (Uses) $ - $ (12,300) $ (8,000) $ (8,000) $ (8,000) $ (8,000) $ (8,000) $ (8,000) Net Increase (Decrease) $ 8,527 $ 19,645 $ 8,300 $ (4,575) $ (72,288) $ 4,194 $ 12,238 $ 12,129 Ending Working Capital $ (26,115) $ (6,470) $ 1,830 $ (186) $ (70,458) $ (66,264) $ (54,026) $ (41,897) 128 Trophy Club, TX | Annual Program of Services FY15-16 Budget 128 STORM DRAINAGE UTILITY FUND Fund Description The Storm Drainage Utility Fund is to provide a safe, clean, and well-maintained storm drainage system to the residents of Trophy Club. In FY11 the Strom Drainage Fund was converted to a proprietary fund by a formal action of council. The Fund is responsible for directly servicing $1.7 million dollars of debt from the 2013 Certificate of Obligation. PERFORMANCE MATRIX Workload Measures FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 ACTUAL FY 2016 ESTIMATE Storm drain structure inspection & cleaning 1,200 1,200 1,550 1,580 1,600 Streets and gutter sweeping (curb miles)90 90 93 72 80 Storm drain system repairs 233 320 400 95 100 Ending Working Capital $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED PERSONNEL SCHEDULE POSITION TITLE FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED INFRASTRUCTURE & DEVELOPMENT SERVICES MANAGER 0.00 0.25 0.25 STREETS SUPERVISOR 0.50 0.00 0.00 TOTAL FTEs 0.50 0.25 0.25 129 Trophy Club, TX | Annual Program of Services FY15-16 Budget 129 Revenues Vs. Expenditures Storm Drainage Utility Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Beginning Working Capital $ 47,183 $ 72,981 $ 237,062 $ 120,619 $ 199,172 $ 201,768 $ 183,659 $ 237,164 Revenue Storm Drainage Fee $ 180,668 $ 370,042 $ 394,692 $ 402,800 $ 407,000 $ 414,700 $ 418,300 $ 421,180 Hazardous Waste Stipend 6,000 5,500 5,000 - - - - - Miscellaneous Revenue - - 26,001 21,000 - - - - Interest Income - - 25 100 - 100 100 100 Total Revenue $ 186,668 $ 375,542 $ 425,718 $ 423,900 $ 407,000 $ 414,800 $ 418,400 $ 421,280 Expenses Personnel Services Salaries $ 15,203 $ 23,214 $ 23,864 $ 24,238 $ 16,940 $ 21,814 $ 22,577 $ 23,255 Overtime 118 253 575 - 250 - - - Longevity 171 304 349 394 395 65 77 102 Stipend - 750 750 375 375 188 188 188 Retirement 2,148 3,433 3,715 4,224 2,520 2,869 2,969 3,058 Medical Insurance 1,657 2,537 2,665 2,785 1,495 1,445 1,517 1,593 Dental Insurance 115 185 298 334 135 104 109 115 Vision Insurance 27 41 41 41 22 20 20 20 Life Insurance & Other 223 402 234 250 139 168 174 179 Social Security Taxes 946 1,501 1,559 1,527 1,100 1,356 1,403 1,446 Medicare Taxes 221 351 365 363 269 320 331 341 Unemployment Taxes 86 4 103 104 - 52 54 55 Workman's Compensation 752 1,183 1,295 1,472 1,304 127 131 135 Total Personnel $ 21,666 $ 34,156 $ 35,812 $ 36,107 $ 24,944 $ 28,528 $ 29,552 $ 30,488 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Total Revenue Total Expenses 130 Trophy Club, TX | Annual Program of Services FY15-16 Budget 130 Storm Drainage Utility Fund FY 2012 ACTUAL FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 BUDGET FY 2015 ESTIMATE FY 2016 ADOPTED FY 2017 PROJECTED FY 2018 PROJECTED Services & Supplies Professional Outside Services $ - $ - $ - $ - $ 18,081 $ 18,200 $ 18,700 $ 19,200 Engineering/Construction 3,998 40,339 5,356 100,000 80,000 80,000 80,000 80,000 Trash Removal/Recycling 12,896 19,359 2,021 1,500 1,500 2,000 2,000 2,000 Vehicle Maintenance 464 - - - - - - - Equipment Maintenance 567 - - - - - - - Street Sweeping 3,850 3,850 4,720 6,000 6,000 12,000 12,000 12,000 Independent Labor 8,000 9,011 30,070 17,366 17,366 17,887 18,781 19,720 Dues & Membership 2,555 2,570 200 200 200 200 200 200 Fuel 1,675 69 446 - - - - - Small Tools 565 - - - - - - - Miscellaneous Expense - 110 1,331 - - - - - Total Services & Supplies $ 34,571 $ 75,308 $ 44,145 $ 125,066 $ 123,147 $ 130,287 $ 131,681 $ 133,120 Capital Transfer to Drainage Capital Projects $ 40,251 $ 61,603 $ 200,000 $ 164,000 $ 50,000 $ 36,488 $ - $ - Total Capital $ 40,251 $ 61,603 $ 200,000 $ 164,000 $ 50,000 $ 36,488 $ - $ - Debt Service Principal $ - $ - $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 145,000 $ 145,000 Interest - 3,049 23,045 38,963 38,963 35,400 31,775 28,088 Total Debt Service $ - $ 3,049 $ 163,045 $ 178,963 $ 178,963 $ 175,400 $ 176,775 $ 173,088 Total Expenses $ 96,487 $ 174,116 $ 443,001 $ 504,136 $ 377,054 $ 370,703 $ 338,008 $ 336,696 Other Sources (Uses) Transfer In $ - $ - $ 6,460 $ - $ - $ - $ - $ - Transfer Out (64,382) (37,344) (27,067) (27,350) (27,350) (62,206) (26,887) (27,209) Total Other Sources $ (64,382) $ (37,344) $ (20,607) $ (27,350) $ (27,350) $ (62,206) $ (26,887) $ (27,209) Net Increase (Decrease) $ 25,798 $ 164,081 $ (37,890) $ (107,586) $ 2,596 $ (18,109) $ 53,505 $ 57,376 Ending Working Capital $ 72,981 $ 237,062 $ 199,172 $ 13,033 $ 201,768 $ 183,659 $ 237,164 $ 294,540 131 Trophy Club, TX | Annual Program of Services FY15-16 Budget 131 Storm Drainage Capital Projects FY 2015 FY 2016 FY 2017 FY 2018 Previous Balance $ 578,174 $ 206,139 $ - $ - Sources of Funds Bond Proceeds $ - $ - $ - $ - Capital Funding from Operations 50,000 36,488 - - Total Sources $ 628,174 $ 242,627 $ - $ - Expenses Indian Creek $ 227,076 $ - $ - $ - Cypress Court Drainage Inlets 74,756 20,000 Pin Oak Court - 51,260 - - Pebble Beach Drive 71,368 71,367 - - Broadway Creek Improvements and Amenity Lake Slopes 48,835 100,000 - - Total Expenses $ 422,035 $ 242,627 $ - $ - Remaining Balance $ 206,139 $ - $ - $ - Total Debt Service Principal Interest Total 2016 $ 145,000 $ 35,400 $ 180,400 2017 145,000 31,775 176,775 2018 150,000 28,088 178,088 2019 155,000 24,275 179,275 2020 155,000 20,400 175,400 2021 160,000 16,462 176,462 2022 165,000 12,194 177,194 2023 170,000 7,588 177,588 2024 175,000 2,625 177,625 2025 - - - $ 1,420,000 $ 178,807 $ 1,598,807 Storm Drainage Fund Debt Schedule* *Does not include proposed debt issuances. 132 Trophy Club, TX | Annual Program of Services FY15-16 Budget 132 Capital Improvement Program Photo Credit: Janet Lamont 133 Trophy Club, TX | Annual Program of Services FY15-16 Budget 133 CAPITAL IMPROVEMENT PROGRAM Program Description The Capital Improvement Program (CIP) represents the Town’s plan for development. The Capital Improvement Program is reviewed each year to reflect changing priorities and to provide a framework for identifying capital requirements, the impact of capital projects on operating budgets, scheduling, and coordinating related projects. Capital project funds are created to account for proceeds from the sale of general obligation bonds, certificates of obligation, tax or revenue notes, or operating funds set aside or reserved for such projects to be used for the costs associated with the acquisition or construction of major capital improvements. Budgets are developed by project and may transcend more than one fiscal year. The Capital Improvement Program budget is prepared based on the following criteria: 1. Public safety, health, and life 2. Service demands 3. Legal requirements, liability, and mandate 4. Quality and reliability of current service level 5. Economic growth and development 6. Funding ability 7. Operating budgets The five-year Capital Improvement Program shown on the next page illustrates, by fund and function, the estimated costs for equipment purchases and/or improvement projects. For Fiscal Year 2015-2016, vehicle and equipment purchases have been fully funded within the Capital Replacement Fund (component of the General Fund pg. 48). Additionally, the Town has secured $3,000,000 in Certificate of Obligation funding for road improvements and storm drainage projects. A small portion of improvement costs for Indian Creek Drive will be covered by the remaining $2,000,000 from Denton County TRIP 2008 Bond funds. The Town also has funding from the 2014 Tax Notes available. The joint Town Hall and Police Facility is funded by remaining 2012 Tax Note proceeds, reauthorized 2014 CO proceeds, proposed bonds and fund balance of the General Fund and CCPD. 134 Trophy Club, TX | Annual Program of Services FY15-16 Budget 134 Capital Improvement Program: Projects in Progress and Currently Funded Projects Project Name Fund Funding Source Project Phase Description Pin Oak Court Capital Projects Fund / Storm Drainage Fund 2014 Tax Note / Fund Balance / Drainage Fund Operations Construction Reconstruction of a neighborhood street and any needed storm drainage infrastructure repair or replacement Timberline Court Capital Projects Fund 2014 Tax Note / Fund Balance Construction Reconstruction of a neighborhood street and any needed storm drainage infrastructure repair or replacement Pebble Beach Drive Capital Projects Fund / Storm Drainage Fund 2013 CO / 2014 Tax Note / Fund Balance/ Drainage Fund Operations Construction Reconstruction of Pebble Beach Drive from Indian Creak to North Cul-De-Sac Cypress Court Drainage Inlets Storm Drainage Fund 2013 CO / Drainage Fund Operations Construction Install drainage inlets along Cypress Court Broadway Creek Improvements and Amenity Lake Slopes Storm Drainage Fund 2013 CO / Drainage Fund Operations Engineering Drainage improvements to Broadway Creek and Amenity Lake Slopes Joint Town Hall and Police Facility Capital Projects Fund 2012 Tax Note / 2014 CO / Proposed Bonds/ CCPD / Fund Balance Engineering Construction of joint Town Hall and Police Facility on land purchased with 2014 CO off of Trophy Wood Drive Trophy Club Dr. (Roundabout to Meadow Creek) Capital Projects Fund Proposed Bonds / Fund Balance Engineering Paving and storm drainage improvements from the roundabout to Meadow Creek Lakeview Practice Soccer Fields Capital Projects Fund 2014 Tax Note / Fund Balance Engineering Construct youth (under age eight) practice soccer fields on leased land from NISD by Lakeview Elementary Park Monument Signs Capital Projects Fund 2010 Tax Note Planning Replaces monument signs at Harmony Park, Independence Park West, and the Pool and adds a sign at Freedom Park Harmony Park Toddler Playground and Shade Structure General Fund 2010 GO / General Fund Operations Planning Replaces the NEOS system at Harmony Park with a small toddler playground and shade structure Subtotal: Projects in Progress/ Currently Funded 135 Trophy Club, TX | Annual Program of Services FY15-16 Budget 135 Capital Improvement Program: Projects in Progress and Currently Funded Projects Total Prior Funding FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Total Annual Operating Budget Impact $ 59,000 $ 277,739 $ - $ - $ - $ - $ 336,739 $ - $ 24,000 $ 155,858 $ - $ - $ - $ - $ 179,858 $ - $400,000 $ 333,934 $ - $ - $ - $ - $ 733,934 $ - $ 74,756 $ 20,000 $ - $ - $ - $ - $ 94,756 $ - $ 48,845 $ 100,000 $ - $ - $ - $ - $ 148,845 $ - $ - $6,000,000 $ 2,900,000 $ - $ - $ - $ 8,900,000 $ 100,000 $ - $2,000,000 $ 1,235,000 $ - $ - $ - $ 3,235,000 $ - $150,000 $ 50,000 $ - $ - $ - $ - $ 200,000 $ 12,765 $ - $ 41,000 $ - $ - $ - $ - $ 41,000 $ - $ - $ 72,000 $ - $ - $ - $ - $ 72,000 $ 1,000 $756,601 $9,050,531 $ 4,135,000 $ - $ - $ - $13,942,132 $ 113,765 136 Trophy Club, TX | Annual Program of Services FY15-16 Budget 136 Capital Improvement Program: Future Funded Projects Project Name Fund Funding Source Project Phase Description Indian Creek Drive Capital Projects Fund / Storm Drainage Fund Proposed Bonds Planning Reconstruction of Indian Creek Drive from Meadowbrook to Harmony Park Trophy Club Drive Capital Projects Fund / Storm Drainage Fund Proposed Bonds Planning Street reconstruction southbound from Durango to Bobcat Phoenix Drive Capital Projects Fund / Storm Drainage Fund Proposed Bonds Planning Reconstruction of a neighborhood street and any needed storm drainage infrastructure repair or replacement Trophy Lake Drive Capital Projects Fund / Storm Drainage Fund Proposed Bonds Planning Street reconstruction from Village Trail to SH 114 Municipal Drive Street Maintenance Sales Tax Fund Street Maintenance Sales Tax Planning Street reconstruction Subtotal: Future Funded Projects 137 Trophy Club, TX | Annual Program of Services FY15-16 Budget 137 Capital Improvement Program: Future Funded Projects Total Prior Funding FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Total Annual Operating Budget Impact $ - $ - $ - $ 1,256,000 $ 1,000,000 $ - $ 2,256,000 $ - $ - $ - $ - $ 1,000,000 $ 770,000 $ - $ 1,770,000 $ - $ - $ - $ - $ - $ 578,813 $ 245,000 $ 823,813 $ - $ - $ - $ - $ - $ 750,000 $ 397,000 $ 1,147,000 $ - $ - $ - $ - $ - $ - $ 70,499 $ 70,499 $ - $ - $ - $ - $ 2,256,000 $ 3,098,813 $712,499 $ 6,067,312 $ - Capital Improvement Program: Future Funded Projects Project NameFundFunding SourceProject PhaseDescription Indian Creek Drive Capital Projects Fund / Storm Drainage Fund Proposed BondsPlanning Reconstruction of Indian Creek Drive from Meadowbrook to Harmony Park Trophy Club Drive Capital Projects Fund / Storm Drainage Fund Proposed BondsPlanning Street reconstruction southbound from Durango to Bobcat Phoenix Drive Capital Projects Fund / Storm Drainage Fund Proposed BondsPlanning Reconstruction of a neighborhood street and any needed storm drainage infrastructure repair or replacement Trophy Lake Drive Capital Projects Fund / Storm Drainage Fund Proposed BondsPlanningStreet reconstruction from Village Trail to SH 114 Municipal Drive Street Maintenance Sales Tax Fund Street Maintenance Sales Tax PlanningStreet reconstruction Subtotal: Future Funded Projects 138 Trophy Club, TX | Annual Program of Services FY15-16 Budget 138 Capital Improvement Program: Future Consideration (Unfunded Projects) Project Name Fund Description Projected Start Date Troon Court Drive Capital Projects Fund Street reconstruction from Indian Creek to cul-de-sac Fiscal Year 2022 Murfield Court Capital Projects Fund Street reconstruction Fiscal Year 2022 Woodlands Court Capital Projects Fund Street reconstruction Fiscal Year 2022 Portland Drive Capital Projects Fund Street reconstruction Fiscal Year 2022 Wilshire Court Capital Projects Fund Street reconstruction Fiscal Year 2023 Lee Court Capital Projects Fund Street reconstruction Fiscal Year 2023 Glendale Court Capital Projects Fund Street reconstruction Fiscal Year 2023 Ross Court Capital Projects Fund Street reconstruction Fiscal Year 2024 Llano Drive Capital Projects Fund Street reconstruction Fiscal Year 2024 T.W. King Parking Area/ Emergency Exit Capital Projects Fund Parking lot / emergency exit construction Fiscal Year 2024 Bobcat Blvd.Storm Drainage Fund Drainage system improvements Fiscal Year 2024 Operation and Maintenance Costs Annually, the projected costs of operations and maintenance associated with capital projects anticipated to be completed and coming on-line are estimated and included in the respective departments’ operating budget. Any associated tax rate impact and/or estimated user fee analysis is included in each fiscal year’s Adopted budget. The Town Council discusses and debates funding options during budget deliberations. Street reconstruction, parking lot reconstruction, and drainage improvements are not anticipated to have additional maintenance expenditures within the five-year window. Costs associated with on-going operations are shown in accordance to the cost to contract maintenance services. The Town may choose to utilize Town Staff, which would likely have similar cost- but also with a higher service level. On-going operating costs for facility construction is estimated on the basis of the new facility’s cost of utilities, janitorial services, supplies, and general building and parking lot maintenance less the costs associated with the facility being replaced, if applicable. In the engineering phase of facility development, more accurate assumptions can be formed in regards to these costs. 139 Trophy Club, TX | Annual Program of Services FY15-16 Budget 139 Supplemental Information Photo Credit: Jeff Robinson 140 Trophy Club, TX | Annual Program of Services FY15-16 Budget 140 The Town of Trophy Club, Texas was incorporated in 1985 as Texas’ first premiermaster planned community and is located in North Texas. This area of the state has proven to be one of the top growth areas in Texas and the United States. In 2016 Trophy Club is pleased to welcome several new business including Meat U Anywhere BBQ, Bread Winners/Quarter Bar, Homewood Suites, and the Holiday Inn. The Town currently occupies a land area of just over four square miles and serves a growing population of approximately 13,000 residents. Trophy Club has operated as a Home Rule municipality utilizing a Council-Manager form of government since 2004. Policy-making and legislative authority are vested in the Town Council consisting of the Mayor and six other Council Members. The Town Council is responsible for, among other things, passing ordinances and resolutions, adopting the budget, appointing boards and committees, and hiring the Town Manager, Town Attorney, and Town Secretary. The Town Council is elected on a non-partisan basis. The Town Manager is responsible for carrying out the policies and ordinances of the Town Council, overseeing the day-to-day operations of the government, and for appointing the heads of the various Town departments. The Town of Trophy Club provides a full range of municipal services including general government, public safety (police and EMS), streets, parks and recreation, planning and zoning, code enforcement, and drainage utilities. Water/Wastewater and Fire protection are provided by the Trophy Club Municipal Utility District #1. Trophy Club’s location is ideal for both businesses and residents, many of whom commute to Dallas, Denton, Las Colinas, and Fort Worth. Trophy Club maintains a small-town feeling with the advantages of nearby metro areas. The Township offers an outstanding quality of life, with great educational and recreational amenities. Two 18-hole golf courses anchor the community, including the only course designed by Ben Hogan. Pleasant residential neighborhoods, excellent educational institutions, and numerous recreational activities truly establish Trophy Club as “a great place to call home.” About The Town of Trophy Club 141 Trophy Club, TX | Annual Program of Services FY15-16 Budget 141 Size: 4.2 square miles (2,688 acres) Households: 4,365 Population: 13,000+ Average Household Income: $124,000 Median Home Sales Price: $357,500 Education: 63% have a Bachelor’s degree or higher Outstanding Schools: Beck & Lakeview Elementary Schools, Medlin Middle School and Byron Nelson High School Strong Housing Market: Home prices range from $180,000’s to $1,200,000+ and average home values have increased for the past seven years Financial Status: AA+ Standard and Poor’s Bond Rating Pristine Parks: 9 parks, 3 playgrounds, world-class dog park, state-of- the-art baseball complex, soccer fields, multi-use fields, community pool and spray pad, bocce ball courts, disc golf, tennis and basketball courts, workout stations, nature trails, nature preserve, MX and ATV areas, pavilions and picnic areas, access to Lake Grapevine via Trophy Club Park, boat ramp, fishing, white sandy beach Well Recognized: Ranked '5th Best Neighborhood in DFW' by Dallas Morning News (2015); Ranked '36th Best Suburb in America by Business Insider (2015); Ranked the ‘3rd Healthiest Community in North Texas’ by Dallas Morning News (2014); Ranked ‘7th Best Suburb in North Texas’ by D Magazine (2014) Community Features: 40+ miles of trails and sidewalks and 1,000+ acres of parks Annual Events: Easter Eggstravaganza, Back to Nature, July 4th Celebration, Movie Series in the Park, TCWC Garden & Holiday Home Tours, Fall Family Festival, PetFest, and Christmas Celebration Youth & Adult Sports Leagues: Bocce Ball League (adult), Kickball League (adult), Trophy Club/Roanoke Football Association, Greater Northwest Soccer Association, Trophy Club/Roanoke Baseball Association, Trophy Club/Roanoke Track and Field Association, and Bobcat Wrestling Club Community Organizations: Trophy Club Women’s Club, Trophy Club Families, Keep Trophy Club Wild, Boy Scouts, Girl Scouts, Cub Scouts, and Daisies/Brownies/Junior Girl Scouts/Cadettes Demographics A Great Place to Call Home Active Community 142 Trophy Club, TX | Annual Program of Services FY15-16 Budget 142 TOWN OF TROPHY CLUB PROCUREMENT POLICIES AND PROCEDURES SECTION 1.0: POLICIES 1.01 Purpose The purpose of the Town’s Procurement Policy is to provide the parameters for the expenditure of funds in the procurement of goods and services for the Town of Trophy Club. The policies and procedures outlined herein are intended to comply with the Town of Trophy Club’s Mission and legally mandated federal and state statutes. 1.02 Policy Regardless of the value of the expenditure, it is the policy of the Town of Trophy Club to promote competition that produces the highest quality goods and services at the lowest possible price whether or not the item is subject to bid. The Town Manager in coordination with the Town Council is charged with establishing the policies for the procurement of all goods and services. The Finance Department: • Develops purchasing objectives, programs, and procedures for the acquisition of materials, equipment, supplies, and services; • Helps department managers provide open and fair competition to vendors; and • Helps departments prepare and obtain approval of purchase orders, price agreements, and contracts. The City Secretary’s Office/Department Managers or designee: • Receives, and monitors formal bids for purchases. The Department Managers: • Develops and maintains technical and non-technical commodity specifications; • Ensures funding is available for procurement in department budgets; • Provides open and fair competition to vendors; • Prepares requisitions; • Obtains approval of purchase orders, price agreements, and contracts; • Prepares requests for proposals (RFPs), requests for qualifications (RFQs) and requests for bids (RFBs); and • Monitors and evaluates the performance of vendors including, but not limited to, compliance with contract specifications. 1.03 Free and Open Competition All procurement transactions, regardless of dollar value, whether advertised or negotiated, shall be conducted in a manner so as to provide maximum free and open competition. The Town Manager or Town Council should be alert to organizational conflicts of interest or noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors who develop or draft specifications and other requirements for solicitation instruments (Requests for Bids or Proposals) shall be excluded from competing for such procurement. 143 Trophy Club, TX | Annual Program of Services FY15-16 Budget 143 1.04 Compliance In order to have an efficient purchasing function, all departments must work in close cooperation with the Finance Department. Departments can ensure compliance with the Town’s policies and procedures by: • Informing departmental personnel of the purchasing requirements and ensuring adherence; • Planning purchases in advance in order to allow sufficient time to advertise, when necessary, obtain proposals, quotations, or bids, determine best source, and issue purchase orders with reasonable lead- time for delivery and thus prevent emergencies; • Providing accurate and concise specifications for items requested and timely preparing requisitions; • Inspecting or supervising the inspection of commodities, services and equipment delivered; and determining acceptability of their quality, quantity, and conformity with specifications; and • Providing complete written documentation of a vendor's performance to be used in future bid award evaluations. SECTION 2.0: CODE OF ETHICS Officers and employees of The Town of Trophy Club are public servants, who will carry out their activities in a fair and legal manner avoiding actual or perceived conflicts of interest. All officers and staff members are expected to conduct the activities of the Town in full compliance with the law and in an honest, fair, and courteous manner. Officers and staff members must neither ask nor expect contractors, vendors or others with whom the Town does business to favor the Town, the officer, or the individual staff member with special treatment. Officers and staff members should not permit personal preferences and dislikes to affect decisions related to their duties. To do so acts against the Town’s policy which is to treat all individuals, members, potential members, contractors, and others fairly and equitably. Conversely, officers and staff members are expected to use their best professional judgment and expertise when evaluating potential vendors and contracts for purchasing goods and services. This section does not preclude officers and staff from considering past purchasing experience with a specific vendor when making a future purchasing decision or recommendation to Town Council. Third party references and vendor experience may be considered by the Town when evaluating and awarding contracts for purchases. SECTION 3.0: CONFLICT OF INTEREST 3.01 Contracts Specifically, with reference to contracts, no employee or officer of the Town who exercises any functions or responsibilities in the review or approval of an undertaking or the carrying out of one of Town’s contracts shall participate in any decision relating to that contract if the decision affects his or her personal financial interest, such officer or employee has a substantial interest as defined by state law, or participation by such officer or employee is otherwise prohibited by state law or Town policy. If a former staff member or Town officer has worked less than one year for a business seeking to contract with the Town, the business entity must make this known and must describe the relationship between the former employee/officer and the firm. In no instance may this former employee/officer have hours billed on any project or program. To do so is reason for not awarding a contract. 144 Trophy Club, TX | Annual Program of Services FY15-16 Budget 144 3.02 Declaration of Conflict of Interest In the event of a conflict of interest as defined by state law, the affected officer or employee must file a signed affidavit declaring his or her conflict of interest. The affidavit must be filed with the Town Secretary. Such official, officer or employee must abstain from discussion of or voting on a bid, proposal, or contract submitted by a business entity in which he/she has a substantial interest. More specifically, in addition to the requirement to complete an affidavit, when an item is placed before a Board, Commission, Committee, or Town Council for review, any and all members of those bodies who has a conflict of interest shall announce that he/she has such conflict and shall leave the room until the body has discussed and taken action on the item for which the member has a conflict. Moreover, it is the policy of the Town that an employee who has a substantial interest in a business entity as defined by state law, shall follow the procedure outlined in this section by completing an affidavit and leaving the room where a discussion and/or vote is taking place regarding the business entity in which the employee has an interest. Further, it is the obligation of officials, officers, and employees to avoid apparent conflicts of interest by abstaining and following the procedures specified in this section. Officials, officers, and employees shall abstain from participating in the procurement process, which includes but is not limited to discussions, lobbying, rating, scoring, recommending, providing current copies of contracts outside of Public Information Act process, explaining or assisting in the design or approval of the procurement process on contract with the organization he or she represents or from which he or she receives a direct financial benefit; or on contracts with organizations in which a family member will realize a direct benefit. 3.03 Violations and Remedies Violations of the provisions of this Article constitute misconduct, subjecting the violator to any and all penalties prescribed by law. Penalties, sanctions, or other disciplinary actions, to the extent permitted by state or local law, rules or regulations, shall be imposed for violations of the code of conduct/conflict of interest standards, by the Town’s officers, employees or agents or by persons, contractors or their agents, when the procurement involves state or federal programs and/or funds. Appropriate sanctions, penalties, or disciplinary actions shall be applied for violation(s) of these policies and/or state law. Violations of state or federal law shall be referred to the proper authority having jurisdiction over it. 3.04.1 Substantial Interest A person has a substantial interest in a business entity if: (1) the person owns 10 percent or more of the voting stock or shares of the business entity or owns either 10 percent or more or $15,000 or more of the fair market value of the business entity; or (2) funds received by the person from the business entity exceed 10 percent of the person’s gross income for the previous year. Additionally, a local public official is considered to have a substantial interest if a person related to the official in the first degree by blood or marriage, as defined by Chapter 573 of the Texas Government Code, has a substantial interest as defined herein. SECTION 4.0: LEGAL CONSIDERATIONS 4.01 Procurements Exempt from State Law Competitive Bid Requirements Purchases made by the Town shall be in accordance with State law. Except as specifically exempted by state law or by the terms of this Procurement Policies and Procedures Manual, including but not limited to Sections Four, Five and Seven, written, competitive bids must be taken for all procurements over $50,000. Procurements exempt from the competitive bid requirement are as follows: 145 Trophy Club, TX | Annual Program of Services FY15-16 Budget 145 • Those made in case of public calamity, where it is necessary to act immediately to appropriate money to relieve the necessity of the Town’s residents or to protect or to preserve Town property and for which Town Council has approved a Resolution ratifying the expenditure as an exception to the competitive bid requirement. Public calamity shall mean a grave event or occurrence that causes great loss or distress for the residents of the Town, including but not limited to natural disasters, acts of war, acts of terrorism, and other events as authorized by law or as determined by the Town Council to constitute a public calamity after consideration of the existing facts and circumstances. Purchases made pursuant to this exception shall be in accordance with the Emergency Management Procedures in effect at the time of the purchase; • Those made necessary by unforeseen damage to Town property, machinery or equipment for which Town Council has approved a Resolution ratifying the expenditure as an exception to the competitive bid requirement. Such resolution shall explain the nature of the damage, the cause of the damage, and the urgent need that supports the use of an exception to competitive bid. Unforeseen damage shall mean unexpected damage caused by some natural force or act of vandalism or other criminal or negligent act or omission. Purchases made pursuant to this exception shall be in accordance with the Emergency Management Procedures in effect at the time of the purchase; • A procurement necessary to preserve or to protect the public health or safety of the Town’s residents for which Town Council has approved a Resolution ratifying the expenditure as an exception to the competitive bid requirement. Purchases made pursuant to this exception shall be in accordance with the Emergency Management Procedures in effect at the time of the purchase; • Those for personal, professional, or planning services as budgeted are exempt from competitive bid; however, the procurement of those types of services shall be done in accordance with state law requirements and the RFQ/RFP process as specified in the Town’s Procurement Policies and Procedures manual, including but not limited to Section 5.07 of that manual; • Those for work performed and paid for by the day as work progresses as budgeted by the Town Council; • A purchase of land or right-of-way for which Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • Items that are available from only one source and for which Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • A purchase of rare books, papers, and other library materials for a public library and for which Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • Paving, drainage, street widening, and other public improvements, or related matters, if at least one- third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements; • A public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters and for which Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • A payment under a contract by which a developer participates in the construction of a public improvement as provided by Chapter 212 of the Texas Local Government Code and for which Town 146 Trophy Club, TX | Annual Program of Services FY15-16 Budget 146 Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • Personal property sold: o At an auction by a state licensed auctioneer provided that such purchase has been approved as a part of the budget or that the Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; o At a going out of business sale held in compliance with Chapter 17, Texas Business and Commerce Code provided that such purchase has been approved as a part of the budget or that the Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement o By a political subdivision of the state of Texas, a state agency of the State of Texas, or an entity of the federal government pursuant to an interlocal agreement approved by Town Council; or o Under an interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391 of the Texas Local Government Code provided that such purchase has been approved as a part of the budget and that Town Council has approved the interlocal contract for cooperative purchasing; • Services performed by blind or severely disabled persons; • Goods purchased by a municipality for subsequent retail by the municipality and for which Town Council has approved a Resolution authorizing the expenditure as an exception to the competitive bid requirement; • Electricity; or • Purchases made pursuant to an approved cooperative purchasing program or those from an approved state program provided that Town Council has approved participation in the cooperative purchasing or approved state program. Contracts shall be awarded in a manner consistent with the provisions of Town policy statements and state law. 4.02 Conflict of Interest An employee of the Town may not solicit bid quotations from relatives of the employee or relatives of another Town employee on products to be purchased by The Town. 4.03 Public Access to Procurement Information Procurement information shall be a public record to the extent provided by the Texas Open Records Act and the Freedom of Information Act and shall be available to the public as provided therein. If a proposal contains information that the bidder considers proprietary and does not want disclosed to the public or used for any purpose other than the evaluation of the offer, all such information must be clearly marked as proprietary and confidential by making such notation on each page or portion thereof containing propriety and confidential information. The Town reserves the right to duplicate, use, or disclose the information as needed to prepare contract documents and working documents for the project and is not liable for accidental disclosure of such information. 147 Trophy Club, TX | Annual Program of Services FY15-16 Budget 147 4.04 Confidentiality of Bidders Quotations A vendor’s bid/proposal is confidential until opened. Therefore, no bid or proposal shall be opened before the date and time of the published opening of such bid/proposal. Opening bids/proposals prior to the publication date and time is a violation of state law and Town policy. SECTION 5.0: METHODS OF PROCUREMENT 5.01 General The Town has four methods for procuring goods and services each of which is determined by the total estimated cost of the purchase. However, regardless of the cost of the purchase, the objective is to secure the highest quality goods and services at the lowest possible price. No purchase may be split to circumvent the dollar amount requirements. With the exception of Petty Cash and procurement card purchases, the procurement process begins with the preparation and approval of a Purchase Order (see Section 6.0). All purchases except those made through Petty Cash, Procurement Card, or those listed under the exemptions in Section 6.0 must be made through an approved Purchase Order or Contract. Purchase Orders will not be issued “after-the-fact”. 5.02 Petty Cash Purchases - Cost up to $100 All Town departments and employees have access to the use of petty cash funds for individual item purchases with dollar values not in excess of $100. The petty cash fund is to be used for small purchases that the employee can pick up at a local facility if a purchasing card is not accepted or if the employee has not been given a purchase card. Town employees are not to misuse petty cash funds by splitting a purchase into more than one transaction in order not to exceed the $100 limit. A petty cash slip must be completed and signed by the requesting employee and authorized by the employee’s manager. Receipts for each transaction must accompany the petty cash slip. Neither a purchase requisition nor competitive bids are required when using petty cash. 5.03 Procurement Card Purchases –Travel Expenses • Personal travel expenses (expenses made in support or for the benefit of anyone other than the employee/ official or expenses made in support or for the benefit of the employee which are not attributable to Town business) may not be charged to a procurement card issued by the Town of Trophy Club. All travel and related expenses incurred must be documented and submitted to the Town along with a completed Travel Expense Form that includes all receipts and supporting documents in accordance with IRS codes and regulations. A copy of the Travel Expense Form is attached as Exhibit “A” to this Procurement Policies and Procedures Manual. • If the training or seminar was not approved through the budget process, written permission must be obtained from the Department Manager or Town Manager prior to travel. There must be money in the budget to cover the travel unless the Town Manager or designee makes the exception. • Transportation – Attach a copy of the airline ticket showing flight times to the appropriate purchasing card transaction sheet received from the Procurement Card Administrator. If the mileage to drive your personal car is more than the cost of the airline ticket plus ground transportation (i.e. taxi or shuttle service) plus airport parking costs, the employee reimburses the difference. Attach a copy of taxi or shuttle service receipts if applicable to the purchasing card transaction sheet if they take a purchasing card. If you drive your personal car and claim mileage, you cannot charge your gasoline on your purchasing card. 148 Trophy Club, TX | Annual Program of Services FY15-16 Budget 148 If you drive a Town of Trophy Club vehicle or if you receive a car allowance, you can charge your gasoline for out-of town trips. • Lodging – A copy of the invoice showing all expenses should be attached to the purchasing card transaction sheet received from the Procurement Card Administrator. In-room movies or pay television, personal phone calls in excess of $5 per day, golf, sporting events, dry cleaning or laundry, and valet parking are not reimbursable expenses. For Texas destinations, you need to present a copy of the Texas Sales and Use Tax Exemption Certification. State taxes should not be paid but city taxes may or may not be exempt depending on local resolutions. • Meals – Receipts should be attached to the purchasing card transaction sheet received from the Procurement Card Administrator. You actually need two receipts. One would include the breakdown of items bought. The other would be the receipt that shows the actual amount charged that includes a reasonable gratuity. No alcoholic beverages may be charged. The total for the day depends on the time you leave and the time you come back. Generally, you must be traveling by 8:00 a.m. to receive breakfast and stay after 6:00 p.m. to receive the evening meal. The maximum reimbursable expenses for meal and incidental expenses (M&IE) are not to exceed the U.S. General Services Administration’s (GSA) daily rate. This daily rate includes taxes and gratuities.. • Registration – if you do an on-line registration, be sure to screen print details that show how much the conference costs, dates of the conference, and name of the conference. If you fax the registration information, keep a copy of the same details. Attach the copy to the purchasing card transaction sheet. • Any unauthorized expenses are the responsibility of the cardholder and must be reimbursed to the Town of Trophy Club. • The Town Manager or designee must approve any exceptions to the above. 5.04 Procurement Card Purchases The intent of the procurement card is to provide a controlled, but less labor-intensive alternative to the existing procedures for purchasing and paying for items up to the predetermined credit limits. The Department Managers shall determine employees within each Department who are to be issued a procurement card and the transaction value limit to be assigned to each individual’s card. The Town Manager or designee shall approve all limits. Cards are issued in the name of the designated Town employee and the Town of Trophy Club. The card remains the property of the Town of Trophy Club. Each potential cardholder shall attend a training session and sign a procurement card policy that documents the cardholder’s responsibilities prior to being issued a card. The Procurement Card is to be used to make purchases for operations included in the Town’s approved budget. Violations of these requirements may result in revocation of use privileges and/or disciplinary action, up to and including termination of employment. Employees who have inappropriately used the Procurement Card will be required to reimburse the Town for all costs associated with the improper use. Department Managers shall report any violations of this policy or abuse of a procurement card to the Town Manager or designee. Department Managers who fail to properly report such violation or abuse shall be subject to disciplinary action, up to and including termination of employment. Each employee who has been issued a card shall ensure that a receipt that indicates the place, date and nature of the purchase is obtained each time the card is used. The receipts will be attached to the procurement card transaction sheet, which will be signed, dated, and turned in to each applicable Department Manager who will review each purchase for appropriateness. The Department Manager shall sign the purchasing card transaction sheet as an indication that all transactions have been reviewed and approved and forward it to the Procurement Card Administrator 149 Trophy Club, TX | Annual Program of Services FY15-16 Budget 149 within the specified time limit of no more than three days. The Procurement Card Administrator will reconcile the individual Department packets with the monthly statement received from the issuing Bank. Should any charges not be supported by receipts, the Procurement Card Administrator will notify the applicable Department Manager who shall obtain a receipt or other proper documentation evidencing the nature and amount of the purchase. In the event that a receipt is lost or an employee fails to obtain a receipt, a lost receipt form shall be completed and attached to the procurement card transaction sheet. Such form shall contain an explanation of the reason that the receipt was not obtained or was lost and any and all steps taken to obtain a duplicate copy of the receipt. The lost receipt form shall be signed by the Manager or Director of the Employee’s Department. An employee’s procurement card privileges may be revoked for failure to provide a receipt or otherwise comply with the Town Purchasing Policies and Procedures Manual. Use of a procurement card for a purchase in excess of $2,500 shall require the review and approval of the Town Manager or designee. If a purchase order is issued, attach the original purchase order with the appropriate signatures to the procurement card transaction sheet so that Finance can close the purchase order for financial reporting. The Procurement Card Administrator is responsible for compliance with the issuing bank’s Procurement Card guidelines and notifying the Town Manager or designee of any problems. Additionally, each Department Manager shall be responsible for taking appropriate remedial action to correct noncompliance with the Town’s policies and procedures governing procurement cards by his or her respective employees. 5.05 Purchases over $3,000 but less than $50,000 If the cost of the item(s) exceeds $3,000 but is less than $50,000, departments are required to secure at least three (3) documented quotes on the item(s). In keeping with State Law, at least two (2) of the quotes must be from Historically Underutilized Business (HUBs) located in Denton County or Tarrant County based upon information provided by the State Comptroller. If a purchase falls within the foregoing cost parameters and if a firm classified as a HUB handles that type of product, such HUB must be contacted on a rotating basis, but a department must attempt to contact at least two (2) HUB's on each order. Once all bids have been received and evaluated, the Department Manager or his or her designee will place the purchase to the lowest responsible bidder. In the event that a Department Manager or his or her designee desires to award a bid to a bidder other than the low bidder, such employee shall provide a detailed explanation in writing specifying why the lowest bidder was not accepted. Such written explanation shall be attached to the bid sheet. 5.06 Competitive Sealed Bids - Cost over $50,000 The Town Council must approve all non-budgeted or unanticipated purchases with values in excess of $50,000 prior to the purchase. Once a resolution has been passed or approval has been granted, the purchase must be made through the use of competitive sealed bids (see Section 7.0) or some other purchasing method as authorized by this policy. Invitations for sealed bids shall include specific instructions to the vendors concerning bid submission requirements including the time, date and place for receipt of bids by the Town. Competitive sealed bids are to be advertised in local newspapers of general circulation under the legal notices section. The bid must be advertised at least 14 days prior to the date of the bid opening. The advertisement is to give adequate instruction as to the nature of the bid, date and time of bid opening, and bidders conference, if applicable. Exceptions to Competitive Sealed Bidding Competitive sealed bidding is not necessary if one of the exceptions in Section 4.0 of these policies is applicable. 150 Trophy Club, TX | Annual Program of Services FY15-16 Budget 150 5.07 Professional Consulting Services Contracts –RFQ/RFP Process a. RFQ/RFP Process - Professional consulting services means those within the scope of the practices of accounting, architecture, land surveying, professional engineering, and other areas as defined by the laws of the State of Texas. Such services to the Town are to be provided pursuant to a third party independent contractor agreement for a specified time period. Competitive bidding shall not be used to select the professionals/consultants contracted by the Town. Compensation will be negotiated before the contract is signed and after the consultant has been selected on the basis of his or her demonstrated competence and qualifications to perform the services for a fair and reasonable price. When professional consulting services are needed, the Department requesting the services will prepare a Request for Qualifications setting forth a description of the scope of services needed, the minimum desired qualifications, credentials and experience, and the relative importance of each, and will forward that information to the Town Manager. The RFQ shall be advertised and may also be sent out to qualified vendors whom Town staff recommends. The Town Manager will assemble a team (Selection Team) of appropriate staff that will evaluate the responses submitted by those firms whose qualifications meet the requirements set forth in the Request for Qualifications. Requests for Proposals shall be solicited and processed in accordance with the requirements set forth in Section 5.07(b) hereof. b. RFP Process - A Request for Proposal (RFP) will be sent to each consultant identified by the Selection Team in accordance with the RFQ process set forth in Section 5.07(a) above. However, if the two- step RFQ/RFP Process is not utilized and the single step RFP process is utilized, then the RFP must be advertised and must require that proposals contain information identifying qualifications, credentials, and experience of those vendors submitting a response. The RFP shall also list the services desired and a deadline for return of the RFP. The request shall require the responding professionals/consultants to provide a schedule for completion of the scope of services, where applicable. Copies of the proposal(s) shall be submitted to the Town Secretary who shall process the responses in accordance with Section 7.0 and who will forward to the members of the Selection Team. Interviews shall be scheduled with the highest ranked firms. The Selection Team will ask each finalist to make a presentation of experience and then may question the firms as to capability and methods of approach for furnishing the required services. Professional compensation is not considered in these discussions. The qualified firm(s) shall be ranked from most qualified to least qualified. The Selection Team shall begin negotiations with the most qualified to develop a contract. The Town contract shall include all relevant terms and conditions, including but not limited to, compensation, time required and full scope of work to be performed. If an agreement satisfactory to both the Town and firm cannot be reached, negotiations will be terminated with that firm and the process started over with the second choice candidate and so on. As soon as an agreement is reached, the Selection Team shall make its recommendation to the Town Council. c. Frequency - The RFQ/RFP process for professional services may be utilized bi-annually. 5.08 Annual Contracts For goods or services that are used repetitively throughout the Town such as office supplies, paper goods, mailing services, or stationery, the Town may enter into an annual contract with a supplier. The purpose of entering into an annual contract is to eliminate the need to obtain competitive pricing each time repetitively used items are requested. The Town will obtain competitive sealed bids requiring that bid prices remain in effect for a specified period. The Town will enter into agreement, upon approval of the Town Council (if the contract price exceeds $50,000), with the approved bidder by signing a contract stating the terms and conditions. Once the contract period nears the end of the term, the Finance Department will re-advertise the bid request for the following year giving fair opportunity for vendors to respond. 151 Trophy Club, TX | Annual Program of Services FY15-16 Budget 151 5.09 Sole Source Purchases When a department identifies a potential sole source purchase, a detailed justification explaining why a sole source purchase is necessary must be provided to the Town Manager or designee in advance for review and concurrence. Upon review and concurrence of the Town Manager or designee, a Resolution outlining the basis for the sole source purchase shall be submitted for Town Council approval. Except as specifically provided otherwise in these policies, a sole source purchase may only be made pursuant to an approved Town Council Resolution. 5.10 State Contract Purchasing The Town has the option of purchasing items on contract through the Houston-Galveston Area Council Cooperative Purchasing program and the State of Texas central purchasing agency. Participation in these programs is strictly voluntary and the Town is not obligated to purchase through either. According to Section 271.081 - 271.083 of the Texas Local Government Code, The Town is not required to obtain competitive bids for items that are on state or local government contract. Because the State of Texas central purchasing agency purchases in large quantities through a state cooperative purchasing program, prices are generally lower than retail. One must keep in mind when purchasing items under state contract that there are no alterations or modifications to the specifications that are listed with the cooperative purchasing programs. 5.11 Alternative Project Delivery Methods for Certain Projects Alternative project delivery methods, include but are not limited to, construction manager at risk, construction manager agent, and design build contracts. Any of the alternative project delivery methods specified in Subchapter H of Chapter 271 of the Texas Local Government Code, as amended, may be utilized provided that the purchase and the procedures utilized in making that purchase comply with all requirements specified therein. SECTION 6.0: THE REQUISITION PROCESS 6.01 Procedure for Non-Emergency Purchases When the need arises for a single purchase of goods and/or services with an estimated value in excess of $10,000, the user Department shall originate an on-line purchase order. The purchase order must be prepared far enough in advance of the date that the goods or services are needed to allow all procurement procedures to properly function, including: • Securing appropriate approval of the purchase • Advertising for bids, if necessary • Obtaining bids or price quotations • Evaluating bids • Preparing the contract • Allowing delivery of goods or services in a timely manner 152 Trophy Club, TX | Annual Program of Services FY15-16 Budget 152 Each Department is responsible for ensuring that duplicate purchases are not made. Once a purchase order is received, the Department Manager must: • Check the purchase order for completeness, including quantity and concise specifications; • If specified as a sole source, ensure the reason for the sole source is documented and appropriate; • Verify the budget authority. Check budget line item authority and budget balance for sufficient unencumbered amount to cover the purchase. Once the vendor selection process has been completed, the Department Manager will bring the requisition to Finance who will prepare the purchase order. The Department Manager will then secure the appropriate approval of the purchase order or contract. The Town is not liable for making payment to vendors for purchases that have not had prior approval of the Department Manager and have not been issued a purchase order number. The Department needs to attach the approved Purchase Order to the invoice received and forward to Finance for payment. 6.02 Procedure for Emergency Purchases The designation of emergency purchase indicates a situation of such urgency that normal purchasing procedures must be modified in the interest of time, and therefore no competitive bids are required. The Town is allowed to make emergency or exempted purchases without competitive bidding as defined in Texas statutes. An approved Town Council Resolution is required for all emergency purchases; provided however, that if due to exigent circumstances, the purchase must be made and time does not allow the posting and holding of a Council meeting, the Town Manager or designee, may authorize the expenditure by providing written permission to make the emergency purchase in accordance with the Emergency Management Procedures in effect at the time of the purchase; provided however, that the Town Manager or designee shall prepare and submit, a ratifying Resolution to Council at the first available Council meeting after the purchase is made where the item may be properly posted as required by law. A purchase is not considered to be an emergency if the expenditure becomes necessary due to poor planning. All emergency purchases are processed as follows: • The applicable Department Manager will be notified immediately with as much information as possible about the emergency purchase required. • The Department Manager contacts as many vendors as necessary to arrange the emergency purchase. The purchase is completed by telephone by issuing a verbal purchase order number to the vendor and requesting expedited delivery. The purchase order is either mailed or faxed to the vendor at a later date. • Staff making the request may be required to pick-up the emergency purchase from the vendor, if applicable, if expedited delivery from the vendor is not available. • Council approval or ratification must be obtained for all such emergency purchases exceeding $50,000. SECTION 7.0: PURCHASING PROCESSES 153 Trophy Club, TX | Annual Program of Services FY15-16 Budget 153 7.01 Policy Competitive written or telephone bids are to be sought for all purchases over $3,000 (see Section 5.05). All practical means to obtain the best price available should also be used when making emergency purchases. Competitive sealed bids are required for those bids exceeding $50,000 (see Section 5.06). The bid consists of the items offered by the vendor in response to the specifications, along with details governing the offer. The Town bidding procedures contain the following general requirements: • A short summary of the Request For Bid (RFB) or Request for Proposal (RFP) shall be published in local newspapers of general circulation. The advertisement is to be published under the Legal Notices section of the newspaper. This should be coordinated through the Town Secretary’s Office. • Bids are received until the date and hour set out in the specifications. The Town Secretary or her designee will mark bids with the date and time at which they are received. Once a bid is submitted, the bidder cannot alter or correct a bid. A vendor who wishes to withdraw a previously submitted bid and/ or submit an alternate bid may only do so prior to the bid opening. Under no circumstances will bids be accepted after the specified date and time. • The bids are to be opened at the date and hour specified in the bid and notice documents, and submitted to the requesting department for review. Generally, bids are awarded to the lowest responsible bidder or the bidder who provides the best value to the Town.. Occasionally, a bid may be split between vendors to obtain optimum pricing. If no bid is found to be acceptable, the entire bidding process must be repeated. Sealed bids are opened publicly in the presence of at least three (3) Town employees. The Town Secretary or her designee will coordinate the opening of the bids. • Bids are to be kept confidential from competitors until after the bid has been opened. Once the bid is opened, the bid becomes open record in accordance with the Texas Open Records Act. • Sealed bids must be submitted to the Town of Trophy Club by mail or hand delivered to Town offices. Envelopes must be clearly marked that a sealed bid is enclosed. Faxed or late bids will not be considered for award. They should be addressed to the Town Secretary. • The Town of Trophy Club reserves the right to reject any and all bids submitted and to waive any and all irregularities. It is the consistent policy of the Town to use competitive principles in awarding all public contracts of any amount with only limited exceptions as allowed by law. This includes the purchase and lease of goods, the purchase of services, and construction projects. These competitive principles apply to all departments of the Town of Trophy Club. • If the Town contracts for public work in excess of $50,000 it is required that the contractor execute a payment bond solely for the protection of beneficiaries who supply materials or labor to the specific public works project and have a direct contractual relationship with the contractor to replace the protections afforded by lien rights. •If the Town contracts for public work in excess of $100,000 it must require its contractor to execute a performance bond solely for the protection of the Town in the event of contractor default and/or termination. *The Town requires the successful bidder on a public works project to provide a two (2) year maintenance bond covering the full final cost of the project. 154 Trophy Club, TX | Annual Program of Services FY15-16 Budget 154 • If the Town receives only one bid or proposal in response to its request the Town may accept the bid or proposal received, reject the bid or proposal and re-advertise, or reject the bid or proposal and decide not to undertake the project. • The Town will give preference in purchasing products made of recycled materials if the products meet applicable specifications as to quantity and quality as found in the bid requests. 7.02 Requests for Bids (RFB) or Requests for Proposals (RFP) RFBs and RFPs are used to notify vendors that the Town has specific requirements for goods and/or services and that vendors are being offered an opportunity to fulfill those requirements. The bid system is to be kept simple and practical, and the bids must be advertised as widely as possible in order for competition to work. Complicated bid invitations or requests for proposals discourage competition and drive up prices. 7.03 Bid Packet A bid packet contains documents needed by the vendor to respond to the requirements of the RFB/RFP. It may include several elements: Request for Bid (RFB) or Request for Proposal (RFP): This is the cover form for the bid/proposal package. It provides specific information that the bidder will need to respond. As applicable, it should include: • Quantity and brief description of goods or services to be provided • Request for unit cost, extended cost, and total cost of items bid • Estimated delivery time if vendor is awarded the bid • Closing date and time for receiving bids or proposals. • Place where bids or proposals are to be sent, including the address and office • Person to contact for additional information • Instructions to bidders (see example in Appendix F) • For RFPs only: Factors to be used in the evaluation process, the weights attached to each factor. Evaluation factors may include price, experience of vendor’s staff, ability to respond in a timely manner, past recommendations, safety record in accordance with a duly adopted Town vendor safety record policy, and financial soundness, as well as any others considered necessary. Other evaluation factors will depend on the individual requirements attached with the procurement. Standard Terms and Conditions: All conditions of doing business with the Town will remain constant for all contracts and purchases, unless specifically deleted. They are usually presented as an attachment to the RFP. Special Provisions: Terms and conditions required for a particular contract or purchase. 155 Trophy Club, TX | Annual Program of Services FY15-16 Budget 155 Specification: The description of the purchase requirements. In place of enclosing the actual specification, information about where the specification may be obtained may be substituted. Pricing: The offer and acceptance page. The vendor quotes prices in accordance with the specification requirements. Prices are usually provided by unit and include the total cost for the estimated amount required. A list of attendees and minutes of the bidders conference by the Town Secretary or his/her staff must be kept as part of the procurement file. 7.04 Competitive Proposals Competitive proposals can only be used for procurements of high-technology products or services as allowed by law. The specification shall be written using performance standards rather than the description of the good or service. The specification must also specify the relative importance of price and other evaluation factors by identifying the weight to be given to each factor. • Vendors submit a proposal for a system to satisfy the requirements set forth in the proposal. Proposals may incorporate various types of hardware or services to accomplish the performance objectives set forth in the specifications. • After proposals are received, the Town may enter into discussions with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract based upon proposal specifications. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. Revisions may be permitted during the discussion process after submissions and before the award of the contract in order to obtain the best final offers. • The contract must be awarded to the responsible offeror whose proposal is determined to be the most advantageous to the Town considering the relative importance of price and the other evaluation factors included in the request for proposal. 7.05 Cancellation of a RFB/RFP RFBs and RFPs may be canceled by the Town at any time before the date set for opening bids. A cancellation notice should be mailed or faxed to all vendors receiving bid or proposal invitations. 7.06 Modification of a RFB/RFP RFBs and RFPs submitted to vendors may also be modified by the Town after being issued but before the final date for submission. When modifications are required, addenda shall be mailed and/or faxed to all vendors receiving bid or proposal packets. The modification notification should state whether the bid opening date is or is not extended. The bid opening date may be extended if notification of the amendment will not give vendors ample time to respond to the modified request. 7.07 Receiving the Bid or Proposal – Procedural Requirements Receiving competitive bids and proposals must be done properly in order to ensure that no possibility of favoritism or even the appearance of favoritism exists. Notice of the time and place at which the bids/ proposals will be publicly opened must be published at least once a week for two consecutive weeks. The date of the first publication must be at least fifteen (15) days before the date of public opening. 156 Trophy Club, TX | Annual Program of Services FY15-16 Budget 156 • Each bid or proposal must be returned to the Town Secretary’s Office as designated in the invitation. Each proposal is to be in a separate envelope, sealed and with the bid or proposal identification number marked on the outside of the envelope. If more than one bid is to be submitted, vendors are required to use separate envelopes for each bid. • The bid or proposal envelope must be clearly marked by the offeror with the date upon which it is submitted to the Town and the Town Secretary or his/her designee shall mark the date and time of receipt by the Town. • The bid or proposal envelope should then be filed unopened together with the other bids or proposals for the same bid invitation until the time of the bid opening. • Bids or proposals must be received by and opened on the date, hour and location as specified in the invitation/request. Vendors are invited and encouraged to attend the bid opening. Bid openings are considered open meetings and anyone can attend. Three (3) Town representatives (i.e. employee, town official or professional staff) must be present at all bid openings. • All bids and proposals must be sealed with the identification number clearly marked on the outside of the envelope. One bid or proposal may be submitted per envelope. Opened bids shall be kept on file and available for inspection. 7.08 Disqualified Bids The following are grounds for disqualifying a submitted bid: • Incomplete bids/proposals may be considered non-responsive. Such bids/proposals may be considered for award if the non-responsiveness is due to a non-material omission. (i.e., the omission does not affect price, quality, quantity, delivery or other material contractual conditions). • Unsigned bids/proposals, or bids/proposals with unauthorized signatures. • Bids or proposals received after the date and time for opening. Late bids/proposals are not considered for award of the purchase, will not be opened, and will be returned to the submitting bidder/proposer. • Bids/proposals where prices are conditional on award of another bid, or when prices are subject to unlimited escalation. If allowed by the specification, prices may be subject to escalation based on an independent wholesale index. 7.09 Correction or Withdrawal of a Bid Bids may not be altered or amended after the submission deadline. A non-material omission or error may be waived if: • The omission or error relates to a matter of form, not substance; and • Does not otherwise prejudice the other bidders/offerors. Any alteration or change made to a bid or offer prior to opening must be initialed by the authorized signatory of the bidder guaranteeing authenticity. Mathematical errors may not be corrected. In the event of a conflict between a unit price for an item(s) and the total price for such item(s), the Town reserves the right to resolve the conflict by accepting the lowest price. 157 Trophy Club, TX | Annual Program of Services FY15-16 Budget 157 SECTION 8.0: EVALUATING COMPETITIVE BIDS 8.01 General The Finance Director or his/her designee will provide tabulations, calculation checks, price extension and information about compliance with specifications to the RFB/RFP. 8.02 Tabulating the Results When bids or proposals are opened, the results are tabulated by the Finance Director or his designee for easy reference. The following information is included in the bid analysis: • All calculations and sums are double checked for accuracy. • Unit prices are extended to a total price for the requested quantity. • The bid or proposal is verified to determine if all requirements listed meet specifications. All areas where the bid/proposals fail to meet conditions included in the specifications and whether any failures disqualify the bid/proposal are listed. Any modifications to the specifications submitted by the vendor are so noted. • All required samples to be included, if applicable, are verified by the Department. • Samples of the desired product, if required, are tested and results of the test noted by the Department. 8.03 Basis for Purchase Decision The evaluation and recommendation includes whether or not the vendor has submitted a responsive bid or proposal (one that meets all criteria of the RFB/RFP). Additionally, information on the vendor’s record of being a responsible bidder (one who has proven capable of performing a contract and/or appears financially and technically capable of adequately performing this contract) is included. If the bidder’s safety record is to be considered, the evaluation states if the bidder has an acceptable record, and if not, the identifiable factors that were not satisfactory as required by the written definition and criteria for accurately determining the safety record of a bidder and the Town has complied with all other requirements of §252.0435 of the Texas Local Government Code, as amended. SECTION 9.0: AWARDING THE BID 9.01 Policy The Town awards bids to the vendor who meets the requirements set forth in the bid documents who offers the lowest cost or the vendor who provides goods or services at the best value for the Town pursuant to the criteria set forth in Section 252.043 of the Texas Local Government Code, as amended. If staff recommends award of a bid to a vendor who is not the lowest responsible bidder, justification for the vendor selection must be documented. In the event that no bid is deemed satisfactory, the Town may declare that all bids are unacceptable. 158 Trophy Club, TX | Annual Program of Services FY15-16 Budget 158 9.02 Disqualification of a Bidder If a bidder has provided unsatisfactory service or products to the Town in the past, those experiences are to be thoroughly documented in order to support any later disqualifications. A vendor who fails to provide satisfactory products, goods or services or who has breached, terminated or been terminated from a contract with the Town in the past will be removed from the Approved Vendors List for future bidding opportunities and may be disqualified from bidding on future projects. SECTION 10.0: PROTESTING A BID Upon selection of an offer or bidder, all competitors must be notified in writing of the procurement results and advised of their right to appeal the decision by the Department. A protest must be submitted to the Town Manager or designee within seven (7) calendar days of the date upon which the Town’s written notice of procurement results is made. All such protests will be reviewed by the Town Manager or designee who will issue a written decision regarding the protest. An appeal from the decision of the Town Manager or designee may be made to Town Council and shall be placed on the Council agenda on the first available date for which notice and publication requirements may be met after a written notice of appeal is received by the Town Secretary. SECTION 11.0: PROCUREMENT SPECIFICATIONS A specification is a concise description of goods or services the Town seeks to buy, and the requirements the vendor must meet in order to be considered for the award. A specification may include requirements for testing, inspection or preparing an item for delivery, or preparing or installing it for use. The specification is the total description of the purchase. A good specification has four characteristics: • It sets the minimum acceptability of the good or service. The term minimum acceptability is key, since the vendor must know the minimum standard to determine what to provide. Setting too high a standard means tax dollars will be wasted, while setting too low a standard means the good or service will not meet the expectations of the user. • It should promote competitive bidding. The maximum number of responsible vendors should be able to bid to the specifications. Restrictive specifications decrease competition. • It should contain provisions for reasonable tests and inspections for acceptability of the good or service. The methods and timing of testing and inspection must be indicated in the specification. Tests should refer to nationally recognized practices and standards, whenever possible. • It should provide for an equitable award to the lowest responsible bidder. The buyer obtains goods or services that will perform to expectations, and the vendor is able to provide the goods or services at an equitable price. SECTION 12.0: MODIFICATION AND TERMINATION OF CONTRACTS 12.01 Policy All modifications or changes to a contract must be in writing. The Town Manager or designee may approve a modification or change order that increases or decreases a contract by $15,000 or less. The Town Council must approve modifications or change orders exceeding $15,000. The original contract price is 159 Trophy Club, TX | Annual Program of Services FY15-16 Budget 159 not to be increased by more than 25%. Additionally, funding must be available to cover the cost of the price increase. The original contract price may not be decreased by more than 25% without the consent of the contractor. A contract awarded by the Town Council may only be terminated upon the approval of such termination by Town Council. 12.02 Requirement to Re-bid • In the event that a change order exceeds 25% of the contract price, a new bid must be solicited using the same bidding procedures as noted in Section 6.0. A new bid solicitation is to be issued if the procurement of supplies, equipment or services is materially different from that specified in the previous bid process regardless of the percentage increase in the contract price. SECTION 13.0: DELIVERY OF GOODS Once goods are delivered to the Town’s offices, receipt of delivery is noted by signature of the receiving department or a receptionist. If a receptionist receives goods, he/she will notify the department to which the goods belong. The person receiving the goods should make every effort to inspect the goods prior to signing the delivery ticket. If visible damage to a container being delivered is detected, it should be noted on the delivery ticket. Although damage to the contents of the package may not be seen, making this notation on the delivery ticket could make filing a claim easier if in fact the contents are damaged. Sometimes, damage to goods is concealed in packaging and the receiving party has no way of knowing of the damage. SECTION 14.0: DISPOSAL OF SURPLUS PROPERTY Annually, all departments shall review their assets and determine which items are no longer needed. A list of surplus, obsolete or unused supplies, materials or equipment, including description, make, model, and serial numbers should be forwarded to the Town Manager. Upon review and approval by Town Manager or his/her designee the items on the department’s lists may be traded in for the acquisition of new property (with Town Manager or their designee’s approval), transferred to other departments, or sold through public auction. Obsolete or unneeded items or group of items less than $100 in fair market value may be thrown away, recycled, sold through a silent auction, or donated to another public entity or charity with Town Manager or their designee’s approval. A copy of the items sold including amounts, names, and addresses will be provided to the Finance Department so that it can be removed from asset lists and insurance. 160 Trophy Club, TX | Annual Program of Services FY15-16 Budget 160 TOWN OF TROPHY CLUB INVESTMENT POLICY I. POLICY It is the policy of the Town of Trophy Club that after allowing for the anticipated cash flow requirements of the Town of Trophy Club and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible. Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to Trophy Club funds. Trophy Club’s investment portfolio shall be designed and managed in a manner designed to maximize this revenue source, to be responsive to public trust, and to be in compliance with legal requirements and limitations. Investments shall be made with the primary objectives of: • Safety and preservation of principal • Maintenance of sufficient liquidity to meet operating needs • Public trust from prudent investment activities • Optimization of interest earnings on the portfolio II. PURPOSE The purpose of this investment policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”), which requires the Town of Trophy Club to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of Trophy Club’s funds. III. SCOPE This Investment Policy shall govern the investment of all financial assets of the Town of Trophy Club. These funds are accounted for in the Town of Trophy Club’s Comprehensive Annual Financial Report (CAFR) and include: • General Fund • Special Revenue Funds • Capital Projects Funds • Proprietary Funds • Debt Service Funds, including reserves and sinking funds, to the extent not required by law or existing contract to be kept segregated and managed separately • Any new fund created by the Town of Trophy Club, unless specifically exempted from this Policy by the Town Council or by law. The Town of Trophy Club consolidates fund cash balances to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance 161 Trophy Club, TX | Annual Program of Services FY15-16 Budget 161 with generally accepted accounting principles. This Investment Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds. However, this policy does not apply to the assets administered for the benefit of the Town of Trophy Club by outside agencies under deferred compensation programs. IV. INVESTMENT OBJECTIVES The Town of Trophy Club shall manage and invest its cash with four primary objectives, listed in order of priority: safety, liquidity, public trust, and yield, expressed as optimization of interest earnings. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. The Town of Trophy Club shall maintain a comprehensive cash management program, which includes collection of accounts receivable, vendor payments in accordance with the Town’s purchasing policies, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to insure maximum cash availability and maximum earnings on short-term investment of idle cash. Safety [PFIA 2256.005(b)(2)] Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit and interest rate risk. • Credit Risk and Concentration of Credit Risk – The Town of Trophy Club will minimize credit risk, the risk of loss due to the failure of the issuer or backer of the investment, and concentration of credit risk, the risk of loss attributed to the magnitude of investment in a single issuer, by: • Limiting investments to the safest types of investments • Pre-qualifying the financial institutions and broker/dealers with which the Town of Trophy Club will do business • Diversifying the investment portfolio so that potential losses on individual issuers will be minimized. • Interest Rate Risk – the Town of Trophy Club will manage the risk that the interest earnings and the market value of investments in the portfolio will fall due to changes in general interest rates by limiting the maximum weighted average maturity of the investment portfolio to 365 days. The Town of Trophy Club will, in addition,: • Structure the investment portfolio so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to liquidate investments prior to maturity. • Invest operating funds primarily in certificates of deposit, shorter-term securities, money market mutual funds, or local government investment pools functioning as money market mutual funds. • Diversify maturities and staggering purchase dates to minimize the impact of market movements over time. 162 Trophy Club, TX | Annual Program of Services FY15-16 Budget 162 Liquidity [PFIA 2256.005(b)(2)] The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that investments mature concurrent with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or local government investment pools that offer same-day liquidity. In addition, a portion of the portfolio will consist of securities with active secondary or resale markets. Public Trust All participants in the Town of Trophy Club’s investment process shall seek to act responsibly as custodians of the public trust. The investment officer shall avoid any transaction that might impair public confidence in the Town of Trophy Club’s ability to govern effectively. Yield (Optimization of Interest Earnings) [PFIA 2256.005(b)(3)] The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. V. INVESTMENT STRATEGY STATEMENTS The Town of Trophy Club portfolio will be structured to benefit from anticipated market conditions and to achieve a reasonable return. Relative value among asset groups shall be analyzed and pursued as part of the investment program within the restrictions set forth by the investment policy. The Town of Trophy Club maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios. Operating Funds Suitability - All investments authorized in the Investment Policy are suitable for Operating Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for the pooled operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The dollar-weighted average maturity of operating funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less. Constant $1 net asset value investment pools and money market mutual funds shall be an integral component in maintaining daily liquidity. Investments for these funds shall not exceed an 18-month period from date of purchase. 163 Trophy Club, TX | Annual Program of Services FY15-16 Budget 163 Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Operating Funds shall be the 91 day Treasury bill. Suitability - All investments authorized in the Investment Policy are suitable for Reserve and Deposit Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for reserve and deposit funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate reserve fund from investments with a low degree of volatility. Except as may be required by the bond ordinance specific to an individual issue, investments should be of high quality, with short-to-intermediate-term maturities. The dollar-weighted average maturity of reserve and deposit funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Reserve and Deposit Funds shall be the 91 day Treasury bill. Bond and Certificate Capital Project Funds and Special Purpose Funds Suitability - All investments authorized in the Investment Policy are suitable for Bond and Certificate Capital Project Funds and Special Purpose Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for bond and certificate capital project funds, special projects and special purpose funds portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of investments held should not exceed the estimated project completion date or a maturity of no greater than three years. The dollar-weighted average maturity of bond and certificate capital project funds and special purpose funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less. 164 Trophy Club, TX | Annual Program of Services FY15-16 Budget 164 Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Bond and Certificate Capital Project Funds and Special Purpose Funds shall be the 91 day Treasury bill. A secondary objective of these funds is to achieve a yield equal to or greater than the arbitrage yield of the applicable bond or certificate. Debt Service Funds Suitability - All investments authorized in the Investment Policy are suitable for Debt Service Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date. The dollar-weighted average maturity of debt service funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Debt Service Funds shall be the 91 day Treasury bill. VI. RESPONSIBILITY AND CONTROL Delegation of Authority [PFIA 2256.005(f)] In accordance with the Town of Trophy Club and the Public Funds Investment Act, the Town Council designates the Assistant Town Manager/CFO as the Town of Trophy Club’s Investment Officer. The Investment Officer is authorized to execute investment transactions on behalf of the Town of Trophy Club and may designate a secondary investment officer to act in his/her absence. No other person may engage in an investment transaction or the management of the Town of Trophy Club funds except as provided under the terms of this Investment Policy. The investment authority granted to the investing officer is effective until rescinded. 165 Trophy Club, TX | Annual Program of Services FY15-16 Budget 165 Quality and Capability of Investment Management [PFIA 2256.005(b)(3)] The Town of Trophy Club shall provide periodic training in investments for the designated investment officers and other investment personnel through courses and seminars offered by professional organizations, associations, and other independent sources in order to insure the quality and capability of investment management in compliance with the Public Funds Investment Act. Training Requirement [PFIA 2256.008 – Local Governments] In accordance with the Town of Trophy Club and the Public Funds Investment Act, designated Investment Officers shall attend an investment training session no less often than once every two years and shall receive not less than 8 hours of instruction relating to investment responsibilities. A newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the officer took office or assumed the officer’s duties. The investment training session shall be provided by an independent source. For purposes of this policy, an “independent source” from which investment training shall be obtained shall include a professional organization, an institution of higher education or any other sponsor other than a business organization with whom the Town of Trophy Club may engage in an investment transaction. Internal Controls (Best Practice) The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town of Trophy Club are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officer shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points. • Control of collusion. • Separation of transactions authority from accounting and record keeping. • Custodial safekeeping. • Avoidance of physical delivery securities. • Clear delegation of authority to subordinate staff members. • Written confirmation for telephone (voice) transactions for investments and wire transfers. • Development of a wire transfer agreement with the depository bank or third party custodian. Investment Policy Certification [PFIA 2256.005(k-l)] A qualified representative, as defined by PFIA section 2256.002(10), of all investment providers, including financial institutions, banks, money market mutual funds, and local government investment pools, 166 Trophy Club, TX | Annual Program of Services FY15-16 Budget 166 must sign a certification acknowledging that the organization has received and reviewed the Town of Trophy Club’s investment policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the Town of Trophy Club’s policy. Prudence [PFIA 2256.006] The standard of prudence to be applied by the Investment Officer shall be the “prudent investor” rule. This rule states that “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 probable income to be derived.” In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: • The investment of all funds, or funds under the Town of Trophy Club’s control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment. • Whether the investment decision was consistent with the written approved investment policy of the Town of Trophy Club. Indemnification The Investment Officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment’s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments. Ethics and Conflicts of Interest [PFIA 2256.005(i)] Officers and employees involved in the investment process shall refrain from personal business activity that would conflict with the proper execution and management of the investment program, or that would impair their ability to make impartial decisions. Employees and Investment Committee (see Section XIII) members shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and Investment Committee members shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the Town of Trophy Club. An Investment Committee member of the Town of Trophy Club who has a personal business relationship with an organization seeking to sell an investment to the Town of Trophy Club shall file a statement disclosing that personal business interest. An Investment Committee member who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the Town of Trophy Club shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the Town Council. 167 Trophy Club, TX | Annual Program of Services FY15-16 Budget 167 VII. SUITABLE AND AUTHORIZED INVESTMENTS Portfolio Management The Town of Trophy Club currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash flow requirements and investments are purchased with the intent to be held until maturity. However, investments may be liquidated prior to maturity for the following reasons: • An investment with declining credit may be liquidated early to minimize loss of principal. • Cash flow needs of the Town of Trophy Club require that the investment be liquidated. Investments [PFIA 2256.005(b)(4)(A)] Trophy Club funds governed by this policy may be invested in the instruments described below, all of which are authorized by Chapter 2256 of the Government Code (Public Funds Investment Act). Investment of Town of Trophy Club funds in any instrument or security not authorized for investment under the Act is prohibited. The Town of Trophy Club will not be required to liquidate an investment that becomes unauthorized subsequent to its purchase. I. Authorized 1. Obligations of the United States of America, its agencies and instrumentalities. 2. Certificates of Deposit issued by a depository institution that has its main office or a branch office in Texas. The certificate of deposit must be guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor and secured by obligations in a manner and amount as provided by law. In addition, certificates of deposit obtained through a depository institution that has its main office or a branch office in Texas and that contractually agrees to place the funds in federally insured depository institutions in accordance with the conditions prescribed in Section 2256.010(b) of the Public Funds Investment Act are authorized investments. Additionally, funds invested by the Town through a broker that has a main office or branch office in Texas and is selected from a list approved by the Town as required by section 2656.025of the Public Funds Investment Act or a depository institution that has a main office or branch office in Texas and is selected by the Town are authorized investments if the following conditions are met: a. the broker or depository institution selected by the Town as specified above arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the Town; b. the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and c. the Town appoints a depository bank or a clearing broker registered with the Securities and Exchange Commission Rule 15c-3 (17CFR, Section 240 15c3-3) as custodian for the Town with respect to the certificates of deposit issued for account to the Town. 3. Fully collateralized direct repurchase agreements with a defined termination date secured by 168 Trophy Club, TX | Annual Program of Services FY15-16 Budget 168 obligations of the United States or its agencies and instrumentalities. These shall be pledged to the Town of Trophy Club, held in the Town of Trophy Club’s name, and deposited at the time the investment is made with the Town of Trophy Club or with a third party selected and approved by the Town of Trophy Club. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Master Repurchase Agreement must be signed by the bank/dealer prior to investment in a repurchase agreement. All repurchase agreement transactions will be on a delivery vs. payment basis. Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at the time funds are disbursed. (Sweep Accounts and/or Bond Proceeds) 4. No-Load Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission and provide a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 78a) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1), 2) have a dollar weighted average stated maturity of 90 days or less, 3) seek to maintain a net asset value of $1.00 per share, and 4) invest in securities authorized by this investment policy. 5. Local government investment pools, which 1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and 3) are authorized by resolution or ordinance by the Town Council. In addition, a local government investment pool created to function as a money market mutual fund must mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at $1.00 net asset value. If an Investment in the Town’s portfolio becomes an unauthorized investment due to changes in the Investment Policy or the Public Funds Investment Act, or an authorized investment is rated in a way that causes it to become an unauthorized investment the investment committee of the Town shall review the investment and determine whether it would be more prudent to hold the investment until its maturity, or to redeem the investment. The investment committee shall consider the time remaining until maturity of the investment, the quality of the investment, and the quality and amounts of any collateral which may be securing the investment in determining the appropriate steps to take. (PFIA 2256.021) Additionally, Trophy Club is not required to liquidate investments that were authorized at the time of purchase. (PFIA 2256.017) II. Not Authorized [PFIA 2256.009(b)(1-4)] Investments including interest-only or principal-only strips of obligations with underlying mortgage- backed security collateral, collateralized mortgage obligations with an inverse floating interest rate or a maturity date of over 10 years are strictly prohibited. VIII. INVESTMENT PARAMETERS Maximum Maturities [PFIA 2256.005(b)(4)(B)] The longer the maturity of investments, the greater their price volatility. Therefore, it is the Town of Trophy Club’s policy to concentrate its investment portfolio in shorter-term securities in order to limit principal risk caused by changes in interest rates. 169 Trophy Club, TX | Annual Program of Services FY15-16 Budget 169 The Town of Trophy Club attempts to match its investments with anticipated cash flow requirements. The Town of Trophy Club will not directly invest in securities maturing more than two years from the date of purchase; however, the above described obligations, certificates, or agreements may be collateralized using longer dated investments. Because no secondary market exists for repurchase agreements, the maximum maturity shall be 120 days except in the case of a flexible repurchase agreement for bond proceeds. The maximum maturity for such an investment shall be determined in accordance with project cash flow projections and the requirements of the governing bond ordinance. The composite portfolio will have a weighted average maturity of 365 days or less. This dollar-weighted average maturity will be calculated using the stated final maturity dates of each security. [PFIA 2256.005(b) (4)(C)] Diversification [PFIA 2256.005(b)(3)] The Town of Trophy Club recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Risk is managed through portfolio diversification that shall be achieved by the following general guidelines: • Limiting investments to avoid overconcentration in investments from a specific issuer or business sector (excluding U.S. Treasury securities and certificates of deposit that are fully insured and collateralized in accordance with state and federal law), • Limiting investment in investments that have higher credit, • Investing in investments with varying maturities, and • Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. IX. SELECTION OF BANKS AND DEALERS Depository At least every five years a Depository shall be selected through the Town of Trophy Club’s banking services procurement process, which shall include a formal request for proposal (RFP). The selection of a depository will be determined by competitive bid and evaluation of bids will be based on the following selection criteria: • The ability to qualify as a depository for public funds in accordance with state law. • The ability to provide requested information or financial statements for the periods specified. • The ability to meet all requirements in the banking RFP. • Complete response to all required items on the bid form • Lowest net banking service cost, consistent with the ability to provide an appropriate level of service. • The credit worthiness and financial stability of the bank. 170 Trophy Club, TX | Annual Program of Services FY15-16 Budget 170 Authorized Brokers/Dealers [PFIA 2256.025] The Town of Trophy Club Investment Committee (see Section XIII) shall, at least annually, review, revise, and approve a list of qualified broker/dealers and financial institutions authorized to engage in securities transactions with the Town of Trophy Club. Those firms that request to become qualified bidders for securities transactions will be required to provide a completed broker/dealer questionnaire that provides information regarding creditworthiness, experience and reputation, and 2) a certification stating the firm has received, read and understood the Town of Trophy Club’s investment policy and agree to comply with the policy. Authorized firms may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule), and qualified depositories. All investment providers, including financial institutions, banks, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the Town of Trophy Club’s investment policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the Town of Trophy Club’s policy. [PFIA 2256.005(k-l)] Competitive Bids It is the policy of the Town of Trophy Club to require a minimum of two (2) quotes for all individual security purchases and sales except for: a) transactions with no-load money market mutual funds and local government investment pools and b) treasury and agency securities purchased at issue through an approved broker/dealer or financial institution. The investment officer shall develop and maintain procedures for ensuring competition in the investment of the Town of Trophy Club’s funds. Delivery vs. Payment [PFIA 2256.005(b)(4)(E)] Securities shall be purchased using the delivery vs. payment method with the exception of investment pools and mutual funds. Funds will be released after notification that the purchased security has been received. X. CUSTODIAL CREDIT RISK MANAGEMENT Safekeeping and Custodial Agreements The Town of Trophy Club shall contract with a bank or banks for the safekeeping of securities either owned by the Town of Trophy Club as part of its investment portfolio or held as collateral to secure demand or time deposits. Securities owned by the Town of Trophy Club shall be held in the Town of Trophy Club’s name as evidenced by safekeeping receipts of the institution holding the securities. Collateral for deposits will be held by a third party custodian designated by the Town of Trophy Club and pledged to the Town of Trophy Club as evidenced by safekeeping receipts of the institution with which the collateral is deposited. Original safekeeping receipts shall be obtained. Collateral may be held by the depository bank’s trust department, a Federal Reserve Bank or branch of a Federal Reserve Bank, a Federal Home Loan Bank, or a third party bank approved by the Town of Trophy Club. Collateral Policy [PFCA 2257.023] Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the Town of Trophy 171 Trophy Club, TX | Annual Program of Services FY15-16 Budget 171 Club to require full collateralization of all Town of Trophy Club funds on deposit with a depository bank, other than investments. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest on the deposits or investments less an amount insured by the FDIC. At its discretion, the Town of Trophy Club may require a higher level of collateralization for certain investment securities. Securities pledged as collateral shall be held by an independent third party with whom the Town of Trophy Club has a current custodial agreement. The Investment Officer is responsible for entering into collateralization agreements with third party custodians in compliance with this Policy. The agreements are to specify the acceptable investment securities for collateral, including provisions relating to possession of the collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the Town of Trophy Club and retained. Collateral shall be reviewed at least monthly to assure that the market value of the pledged securities is adequate. Collateral Defined The Town of Trophy Club shall accept only the following types of collateral: • Obligations of the United States or its agencies and instrumentalities • Direct obligations of the state of Texas or its agencies and instrumentalities • Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States • Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized rating firm not less than A or its equivalent with a remaining maturity of ten (10) years or less • A surety bond issued by an insurance company rated as to investment quality by a nationally recognized rating firm not less than A • A letter of credit issued to the Town of Trophy Club by the Federal Home Loan Bank Subject to Audit All collateral shall be subject to inspection and audit by the Investment Officer or his/her designee, including the Town of Trophy Club’s independent auditors. XI. PERFORMANCE Performance Standards The Town of Trophy Club’s investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio shall be designed with the objective of obtaining a rate of return through budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow requirements of the Town of Trophy Club. Performance Benchmark It is the policy of the Town of Trophy Club to purchase investments with maturity dates coinciding with 172 Trophy Club, TX | Annual Program of Services FY15-16 Budget 172 cash flow needs. Through this strategy, the Town of Trophy Club shall seek to optimize interest earnings utilizing allowable investments available on the market at that time. Market value will be calculated on a quarterly basis on all securities owned and compared to current book value. The Town of Trophy Club’s portfolio shall be designed with the objective of regularly meeting or exceeding the average rate of return on U.S. Treasury Bills at a maturity level comparable to the Town of Trophy Club’s weighted average maturity in days. XII. REPORTING (PFIA 2256.023) Methods The Investment Officer shall prepare an investment report on a quarterly basis that summarizes investment strategies employed in the most recent quarter and describes the portfolio in terms of investment securities, maturities, and shall explain the total investment return for the quarter. The quarterly investment report shall include a summary statement of investment activity prepared in compliance with generally accepted accounting principles. This summary will be prepared in a manner that will allow the Town of Trophy Club to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will be provided to the Town Council. The report will include the following: • A listing of individual securities held at the end of the reporting period. • Unrealized gains or losses resulting from appreciation or depreciation by listing the beginning and ending book and market value of securities for the period. • Additions and changes to the market value during the period. • Average weighted yield to maturity of portfolio as compared to applicable benchmark. • Listing of investments by maturity date. • Fully accrued interest for the reporting period • The percentage of the total portfolio that each type of investment represents. • Statement of compliance of the Town of Trophy Club’s investment portfolio with state law and the investment strategy and policy approved by the Town Council. An independent auditor will perform a formal annual review of the quarterly reports with the results reported to the governing body [PFIA 2256.023(d)]. Monitoring Market Value [PFIA 2256.005(b)(4)(D)] Market value of all securities in the portfolio will be determined on a quarterly basis. These values will be obtained from a reputable and independent source and disclosed to the governing body quarterly in a written report. 173 Trophy Club, TX | Annual Program of Services FY15-16 Budget 173 XIII. INVESTMENT COMMITTEE Members An Investment Committee, consisting of the Town Manager, the Investment Officer, and the Secondary Investment Officer, shall review the Town’s investment strategies and monitor the results of the investment program at least quarterly. This review can be done by reviewing the quarterly written reports and by holding committee meetings as necessary. The committee will be authorized to invite other advisors to attend meetings as needed. Scope The Investment Committee shall include in its deliberations such topics as economic outlook, investment strategies, portfolio diversification, maturity structure, potential risk to the Town’s funds, evaluation and authorization of broker/dealers, rate of return on the investment portfolio, and review of compliance with the investment policy. The Investment Committee will also advise the Town Council of any future amendments to the investment policy that are deemed necessary or recommended. Procedures The investment policy shall require the Investment Committee to provide minutes of investment information discussed at any meetings held. The committee shall meet at least annually to discuss the investment program and policy. XIV. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)] The Town of Trophy Club’s investment policy shall be adopted by resolution of the Town Council. It is the Town of Trophy Club’s intent to comply with state laws and regulations. The Town of Trophy Club’s investment policy shall be subject to revisions consistent with changing laws, regulations, and needs of the Town of Trophy Club. The Town Council shall adopt a resolution stating that it has reviewed the policy and investment strategies not less than annually, approving any changes or modifications. 174 Trophy Club, TX | Annual Program of Services FY15-16 Budget 174 TOWN OF TROPHY CLUB CASH HANDLING POLICY CASH: During hours of operation, coins, currency and checks will be secured in a designated locked drawer or cash register. When not in use all coins, currency and checks must be stored in one of three locking bank bags assigned to each cashier and secured in the designated safe. Each cashier will be assigned a cash till (cash drawer) for use during their scheduled shift. Cash in this till remains the property of the Town of Trophy Club and at no time will be converted to or otherwise allowed for personal use. There is only one cashier assigned per till. When not in use, the till must be secured in one of the three locking bank bags assigned to each cashier. Cash tills are provided to perform the function of cashier only. At no time will the cashier use this till to cash checks, pay vouchers, provide petty cash, issue refunds, or any other cash related function except to make change for cash transactions, store cash received for services/goods, and store check payments received for same said functions. Cash tills must be counted at the beginning of a shift and at shift end to ensure the till is at the issued balance. EACH CASH TILL MUST ALWAYS REMAIN AT THE ISSUED BALANCE. Cash till variances, missing tills, or theft must be reported immediately to the supervisor. COIN PAYMENTS Payment of Fees and Fines tendered in coins will be accepted until 10:00 a.m. each day. Payers must anticipate a delay in crediting of payments while coin payments are triple counted for accuracy. For coin payments tendered in currency less than a quarter ($0.25), Staff will utilize a maximum of one (1) hour during the business day to complete the triple counting process. Payer must remain on premises while coins are being counted. If counting cannot be completed within that one (1) hour period, the balance of the currency will be returned to the Payer, a receipt will be issued for the partial payment, and the Payer may return the following business day to complete the tender of payment. If payment in full is not received or a payment in not completed until after a delinquency date, Payer will be subject to delinquency fees as well as other fees and penalties authorized by law. A sign advising the public of the Town’s Coin Payment Policy shall be posted to provide notice to the public. CHECKS: Proper identification must be requested from the presenting party. Lack of identification is proper grounds for check refusal. Checks must be restrictively endorsed upon receipt (i.e. stamped “For Deposit Only” upon receipt). Checks must be made payable to the Town of Trophy Club and are to be accepted for the amount of the purchase/transaction only. Personal checks cannot be exchanged for cash. Checks must not be post dated or otherwise held for future processing. Third party checks are not permitted. REPORTING AND DEPOSITS: 175 Trophy Club, TX | Annual Program of Services FY15-16 Budget 175 Record each transaction in designated cash receipt application or cash register immediately when received. Payment type (cash, check, or credit card) must be indicated on each transaction. Daily reconciliations are required for each cashier’s shift. The reconciliation for each cashier’s shift must be completed immediately at the close of his/her shift. Each cashier will prepare a deposit slip related to that shift’s transactions. The original deposit slip and all cash and checks related to that shift’s receipts must be secured in one of the cashier’s bank bags and turned into the cashier’s supervisor, or his/her designee. The remaining cashier’s designated till will be secured in a locking bank bag assigned to the cashier. Each cashier must close out their respective transactions at the end of each shift and balance the cash and checks to the transaction report and/or the cash register tape for the same period. The supervisor or his/her designee will deliver all deposits related to the previous business day to the Finance Department along with the cash receipts report and related duplicate copy of the deposit slip. Cash counting and/or deposit preparation must be performed out of public view. If a cashier’s cash and checks do not balance to the transaction report for the same period, the resulting shortage or overage must be reported immediately to the cashier’s supervisor. The cashier will secure all relevant documents, reports, and the related cash and checks in a locking bank bag and provide such to the supervisor or his/ her designee. The supervisor will notify the Director of Finance and take the locked bank bag to the Director of Finance or his/her designee. The Director of Finance and/or his/her designee will verify the shortage or overage. 176 Trophy Club, TX | Annual Program of Services FY15-16 Budget 176 TOWN OF TROPHY CLUB DEBT MANAGEMENT POLICIES AND PROCEDURES Purpose The purpose of the Town’s Debt Management Policy is to provide the parameters for issuance and management of debt to construct or acquire major capital assets. The policies and procedures outlined herein are intended to comply with the Town of Trophy Club’s Mission and federal and state statutory requirements. Policy Debt financing, including general obligation bonds, certificates of obligation, revenue bonds, lease/ purchase agreements or any other obligation allowed under Texas law may be used to construct or acquire major capital assets that cannot be funded with current reserves. • The maximum allowable debt term shall not exceed twenty-five (25) years. • Debt shall not be issued and used to fund current operating expenditures. • The Town shall adopt a Capital Improvement Program during each budget cycle that spans a minimum of five (5) years. The Program shall recommend specific funding sources for each project in year one (1) and proposed funding sources for years two (2) through five (5). • Principal payments shall commence no later than the fifth year after a bond sale. • The Town shall ensure full disclosure of operations to the bond rating agencies and other depositories of financial information as required by Security and Exchange Commission (SEC) Rule 15c2-12, specifically, the Texas Municipal Advisory Council (State Information Depository). The Town Finance Department shall be responsible for the preparation of all disclosure documents and releases required by Rule 15c2-12. • The Town shall adhere to reporting requirements under Internal Revenue Code Section 148 - Arbitrage Regulations for all tax-exempt debt issued. If an arbitrage liability is found to exist it shall be recorded in the Town’s financial statements. • The Town shall obtain debt ratings from a minimum of one nationally-recognized bond-rating agency on all issues sold in public markets. The Town shall furnish required information to the rating agency once every two years to maintain ratings on debt outstanding. • The Town uses a competitive bidding process in the sale of bonds unless the nature of the issue warrants a negotiated bid, or the Council in its discretion determines that a negotiated bid provides a greater benefit to the Town. In situations where a competitive bidding process is not elected, the Town shall present the reasons why it has elected that option, and the Town shall actively participate with the financial advisor in the selection of the underwriter or direct purchaser. • Staff shall explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives shall include, but shall not be limited to: 1) grants in aid, 2) use of reserves, 3) use of current revenues, 4) contributions from developers and others, 5) leases, and/ or 6) impact fees. • Reimbursement resolutions may be used as a cash management tool for debt funded projects. Reimbursement resolutions may be used for any project that has been approved in the Town’s Capital Improvement Program and may be used for other projects if the projects are revenue supported or funded within the departments’ operating budget. 177 Trophy Club, TX | Annual Program of Services FY15-16 Budget 177 • If the Town is considering the use a derivative product for debt management, the Town shall first prepare an analysis of the risks and potential rewards of the product before selecting the structure. The Town’s Bond Counsel shall opine that the Town is authorized to enter into the necessary agreements under all existing statutes prior to the Town taking formal action to proceed. • The Town shall consider an advance or current refunding of outstanding debt only if present value savings over the economic life of the debt exceeds 2.5%, unless a debt restructuring or bond covenant revisions are necessary. • The Town’s interest and sinking (I&S) tax rate shall at no point exceed $0.20 per $100 valuation. • The Town’s ratio of net debt (total outstanding tax-supported debt less debt service fund balance) to total taxable assessed valuation shall not exceed 3.5% (excluding overlapping debt). All bond issuance shall be structured to maintain a debt-to-assessed ratio of 3.5% or less. • The ratio of debt service expenditures to total expenditures (General Fund operating expenditures and debt service combined) shall not exceed 35%. • Prior to any debt issuance, the Finance Department shall analyze the impact on the current tax- supported debt before issuing any additional debt. This analysis shall include the current and projected debt-to-assessed and debt-to-total ratios as well as any other applicable analysis. • The Town recognizes that it is of the utmost importance that elected and appointed Town officials, and all others associated with the issuance of Town debt, not only avoid the reality of a conflict of interest, but the appearance thereof as well. Town officials shall conduct themselves in a fashion consistent with the best interests of the Town and taxpayers. Elected and appointed Town officials shall avoid even the appearance of linkages between politics and public finance that can erode the confidence of citizens. This includes avoiding gratuities and political contributions of more than nominal value from service providers, and the disclosure of all possible conflicts of interest shall be provided in writing and filed with the Town Secretary and the Finance Department. 178 Trophy Club, TX | Annual Program of Services FY15-16 Budget 178 TOWN OF TROPHY CLUB FUND BALANCE POLICY Purpose The purpose of this policy is to establish a key element of the financial stability of the Town by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the Town maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the Town’s general operations. Definitions Fund Equity–A fund’s equity is generally the difference between its assets and its liabilities. Fund Balance–An accounting distinction is made between the portions of fund equity that spendable and nonspendable. These are broken up into five categories: • Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or permanent funds. • Restricted fund balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and child safety fees. • Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. • Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. • Unassigned fund balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. Policy Committed Fund Balance The Town Council is the Town’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Council at the Town’s Council meeting. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. 179 Trophy Club, TX | Annual Program of Services FY15-16 Budget 179 Assigned Fund Balance The Town Council has authorized the Town’s Financial Director as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy. Minimum Unassigned Fund Balance It is the goal of the Town to achieve and maintain an unassigned fund balance in the general fund equal to 30% of expenditures. The Town considers a balance of less than 15% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the Town’s desired goal, the Town will assess the severity of the issue and based on council direction will proceed with the following actions. Finance will review all assigned, committed, and reserved fund balances if feasible council/authorized official may convert these funds to unassigned. If this is not an option, council/authorized official will look to generate excess reserves to replenish these unassigned funds to maintain compliance with this policy. If the Town is unable to become compliant in the current year, the Town will look to replenish unreserved fund balance in the next budget cycle. Order of Expenditure of Funds When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the Town Council, and unassigned fund balance), the Town will start with the most restricted category and spend those funds first before moving down to the next category with available funds. 180 Trophy Club, TX | Annual Program of Services FY15-16 Budget 180 TOWN OF TROPHY CLUB FLEET REPLACEMENT POLICY General Policy It is the policy of the Town of Trophy Club to provide staff with the tools needed to do the job in a professional, competent, and safe manner. Among the biggest “tools” in accomplishing the task are motor vehicles. In addition, these items are a very substantial financial investment and need to be handled in the most economic manner to the Town, both in their operation and in maximizing their disposal value. Each vehicle has a number of “lives”. Vehicles have a service life, which is the amount of time a vehicle is capable of rendering service. Vehicles have a technological life, which is the amount of time a vehicle is capable of rendering service. Vehicles have a technological life, which represents the relative productivity decline of the unit as compared to newer models. Most important, a vehicle has an economic life, which is the length of time the average total vehicles cost is at a minimum. The unit expenses and costs should be considered in determining fleet replacement recommendations; the following is a list of those expenses/ costs: 1. Fuel Costs 2. Operation Costs 3. Maintenance Costs, to include parts availability 4. Downtime 5. Technological Obsolescence 6. Condition 7. Safety The realities of the budget process, monetary restrictions, and administrative policies will limit the replacement that can be made each year, and that priorities must be set to determine which vehicles to replace with available funds. The purpose of this policy is to set forth an outline for user departments, in cooperation with the Finance Department to establish these priorities for recommendation to management. Equipment Replacement Evaluation and Criteria Vehicles will be evaluated by four criteria: age, mileage, operation & maintenance cost, condition of body, and mechanical components. A baseline is set for each criterion and points are assigned, depending on how the item’s data compares to the base standard. The ratings are low, base (equal to the standard), high and extreme. Points are assigned as follows: 1-low, 2-base, 3-high, and 4-extreme. Any point total equaling or exceeding eleven (11) indicates that the vehicle should be recommended for replacement. The point total is used to rank its replacement priority, and the larger the number the higher the replacement priority will be. A priority ranking will be developed for the entire fleet by class of vehicle regardless of departmental assignment. Priority ranking is intended to serve as a guide and should be considered along with manager recommendation. Special circumstances might present themselves such that a vehicle may not meet the criteria for recommendation to replace, but due to circumstances not captured in the policy a department head may recommend to replace early. Or on the contrary, a vehicle may meet the criteria for replacement but the manager might recommend delaying replacement because they feel the vehicle can still be of use with little maintenance costs. The following is a brief explanation of the rating criteria: 181 Trophy Club, TX | Annual Program of Services FY15-16 Budget 181 Age: based on the experience in the class of equipment and industry standards as recommended by the Government Services Administration, State standards, other cities, etc., and intended to reflect the least cost and highest resale value to the Town. Mileage/Hours: based on the experience in the class of equipment and industry standards as recommended by the Government Services Administration, State standards, other cities, etc., and intended to reflect the least cost and highest resale value to the Town. Maintenance Cost: The base cost will be a total of maintenance and repair costs as a percentage of the original purchase price. Accident and warranty repairs are not to be included in this total. Condition: a physical evaluation made for each vehicle that meets or exceeds the base standards for age, mileage, and maintenance costs. The criteria would be an assignment of a repair cost as a percentage of the book value of the vehicle. Vehicle history, such as accidents would also be considered at this point. Comments and Other Considerations: This is where the Department Manager can comment on vehicle history, costs, technological changes, safety items, etc. that should be considered in the evaluation Replacement Parameters Age Condition Points Below base replacement age 0 < 1 year over base 1 1-2 years over base 2 3-4 years over base 3 4+ years over base 4 Mileage Condition Points Below base replacement mileage 0 Base + < 10,000 miles (600 hours) 1 Base + 10,000-20,000 miles (600-1,200 hours) 2 Base + 20,000 miles (+1,200 hours) 3 Maintenance Cost Condition Points < 5% of the purchase cost 1 5% to 12% of purchase cost 2 13% to 25% of purchase cost 3 > then 25% of purchase cost 4 182 Trophy Club, TX | Annual Program of Services FY15-16 Budget 182 Condition Evaluation Condition Points Repair cost <6% of the book value 2 Repair cost 6% to 18% of book value 3 Repair cost >18% of replacement 4 Equipment Replacement Base Criteria Item Age Mileage/Hours Truck (non-diesel) 5 80,000 Truck (diesel) 7 90,000 Ambulance 7 75,000/7,500 Police Vehicle 3 60,000 Police Administrative Vehicle 5 80,000 Vehicle/Equipment Evaluation Summary Report Item #:__________________________ Evaluation/Report Date:________________ Department Assignment: _________________________________________________ Year:________________ Make:_____________________ Model:________________ Description/Use:_______________________________________________________ Summary Values Age ________________ Base Age from Policy _________________ Points: ________ Mileage_____________ Base Mileage________________________ Points: ________ Purchase Cost: _______________ Total M&R: _________________ Points: ________ Book Value: ______________ Est Repair Cost:_________________ Points: _________ Total Points Comments and other considerations: _____________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ 183 Trophy Club, TX | Annual Program of Services FY15-16 Budget 183 The Annual Program of Services contains specialized and technical terminology that is unique to public finance and budgeting. To assist the reader of this document in understanding these terms, a budget glossary has been included in this document. Accrual Basis: A basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. For example, in accrual accounting, revenue that was earned between April 1 and June 30, but for which payment was not received until July 10, is recorded as being received on June 30 rather than July 10. Adjusted Tax Roll: Calculated by adding the properties under protest to the July Certified Tax Roll, less the sum of the tax ceiling, annexed properties, and new improvements. Ad Valorem Taxes (Current): All property, real, personal, tangible, intangible, annexations, additions, and improvements to property located within the taxing unit’s jurisdiction, which are subject to taxation on January 1 of the current fiscal year. Each year, by ordinance, the Town Council exempts taxes on automobiles and other items from the tax levy. Following the final passage of the appropriation ordinance, Town Council sets the tax rate and levy for the fiscal year beginning October 1 and continuing through the following September 30. Ad Valorem Taxes (Delinquent): All taxes are due on receipt of bill and are delinquent if not paid before February 1 of the fiscal year in which they are imposed, except when the taxing unit postpones the delinquency date due to late mailing of tax bills or successful rollback elections. Ad Valorem Taxes (Penalty and Interest): A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of the month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. However, the delinquent tax on July 1 incurs a total penalty of twelve percent (12%) of the amount of the delinquent tax without regard to the number of months the tax has been delinquent. Appropriation: A legal authorization granted by a governing body to make expenditures and to incur obligations for specific purposes. Appropriation Ordinance: The official enactment by the Town Council to establish legal authority for Town officials to obligate and expend resources. Assessed Valuation: A value that is established for real or personal property for use as a basis for levying property taxes. (Note: Property values are established by the Denton County Appraisal District.) Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. Audit: A comprehensive examination of how an organization’s resources were actually utilized, concluding in a written report of the findings. A financial audit is a review of the accounting system and financial information to determine how government funds were spent and whether expenditures were in compliance with the legislative body’s appropriations. A performance audit consists of a review of how well the organization met its stated goals. Balanced Budget: funding current expenditures with current resources. Bond: A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds. These are most frequently used for construction of large capital projects, such as buildings, streets and bridges. Budget: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term “budget” is used in two senses in practice. Sometimes it designates the financial plan presented to the governing body for adoption and sometimes the financial plan finally approved by that body. It is usually necessary to specify whether the budget under consideration is preliminary and GLOSSARY 184 Trophy Club, TX | Annual Program of Services FY15-16 Budget 184 tentative or whether it has been approved by the governing body. Budget Amendment: A legal procedure utilized by the Town staff and Town Council to revise a budget appropriation. The Town of Trophy Club’s Town Charter requires Town Council approval through the adoption of a supplemental appropriation ordinance (which specifies both the source of revenue and the appropriate expenditure account) for any interfund adjustments. Town staff has the prerogative to adjust expenditures within a departmental budget. Budget Calendar: The schedule of key dates or milestones, which the Town departments follow in the preparation, adoption, and administration of the budget. Budget Document: The instrument used by the operational authority to present a comprehensive financial program to the Town Council. Budget Message: The opening section of the budget which provides the Town Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and the views and recommendations of the Town Manager. Capital Equipment Budget: The portion of the annual operating budget that appropriates funds for the purchase of capital equipment items. These expenditures are often separated from regular operating items, such as salaries, services, and supplies. The capital equipment budget includes funds for capital equipment purchases, which are usually distinguished from operating items according to their value and projected useful life. Examples include vehicles, equipment, furniture, machinery, building improvements, and special tools. Capital Improvements: A permanent addition to the Town’s assets, including the design and construction of buildings or facilities, streets and drainage infrastructure, and the permanent structures. Cash Management: The management of cash necessary to pay for government services while investing temporary cash excesses in order to earn interest revenue. Cash management refers to the activities of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking relationships, and investing funds in order to achieve the highest interest and return available for temporary cash balances. Certificates of Obligation: are a financing mechanism a city may use to pay a contractual obligation incurred in: (1) a construction contract; (2) the purchase of materials, supplies, equipment, machinery, buildings, land, and rights-of-way for authorized needs and purposes; or (3) the payment of professional services, including services provided by tax appraisers, engineers, architects, attorneys, map makers, auditors, financial advisors, and fiscal agents. Commitment: The pledge of appropriated funds to purchase an item or service. Funds are committed when a requisition is issued through the purchasing division of the Town. Committed Fund Balance: the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Cost: (1) The amount of money or other consideration exchanged for property or services. (2) Expense. Current Taxes: Taxes that are levied and due within one year. Debt Service: The Town's obligation to pay the principal and interest of all bonds and other debt instruments according to a pre-determined payment schedule. Deficit: (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting period. Delinquent Taxes: Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached. Department: An organizational unit which has the responsibility of providing programs, activities, and functions in a related field. Depreciation: The process of estimating and recording the lost usefulness, expired useful life or diminution of service from a capital asset that cannot or will not be restored by repair and will be replaced. The cost of the capital asset's lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its useful life. Disbursement: Payment for goods and services. 185 Trophy Club, TX | Annual Program of Services FY15-16 Budget 185 Division: An administrative segment of the Town, which indicates management responsibility for an operation or a group of related activities within a functional area. Divisions are the basic units of the budget upon which departments are composed. Encumbrances: Commitments related to unperformed (executory) contracts for goods or services. Expenditure: This term refers to the outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expense is actually paid. This term applies to governmental funds. Note: An encumbrance is not an expenditure. An encumbrance reserves funds to be expended. Expenses: Charges incurred (whether paid immediately or unpaid) for operation, maintenance, interest and other charges. Expenses are used for government wide financial statements and proprietary funds. Fiscal Year: The time period designated by the Town signifying the beginning and ending period for recording financial transactions. The Town of Trophy Club has specified October 1 to September 30 as its fiscal year. Fixed Assets: Assets of a long-term character which are intended to continue to be held or used, such as land, buildings, and improvements other than buildings, machinery, and other equipment. Full Faith and Credit: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds.) Franchise Fee: This is a charge paid for the use of Town streets and public right of way and is in lieu of all other municipal charges, fees, street rentals, pipe taxes or rentals, easement or other like franchise fees, inspections, fees, and /or charges of every kind except only Ad Valorem and special assessment taxes for public improvements (i.e., gas, telephone and cable TV). Full-Time Equivalent (FTE): A unit of measure based on the number of hours that an employee works during the fiscal year. One FTE is equal to 2080 hours (2920 for 24 hour shift personnel). Function: A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible. Fund: An accounting entity that has a set of self- balancing accounts and that records all financial transactions for specific activities of government functions. Fund Balance: Fund balance is the excess of assets over liabilities and is, therefore, also known as surplus funds. General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund. General Obligation Bonds: Bonds that finance a variety of public projects, such as streets, buildings, and improvements. The repayment of these bonds is usually made from the General Debt Service Fund, and these bonds are backed by the full faith and credit of the issuing government. Generally Accepted Accounting Principles (GAAP): Uniform standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. They encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. They provide a standard by which to measure financial presentations. Governmental Funds: Those funds through which most governmental functions typically are financed. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, and General Debt Service). Grants: Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose, activity, or facility. Income: A term used in proprietary fun type accounting to represents (1) revenues or (2) the excess of revenues over expenses. Interfund Transfers: Amounts transferred from one fund to another to recover the charge for administrative services. Intergovernmental Revenue: Revenue received from another governmental entity for a specified purpose. In the Town of Trophy Club, these are funds from Denton County, the State of Texas, and through recovery of indirect costs from federal and state agencies. Investments: Securities and real estate held for the production of revenues in the form of interest, dividends, rentals or lease payments. 186 Trophy Club, TX | Annual Program of Services FY15-16 Budget 186 Levy: (Verb) To impose taxes, special assessments or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments or service charges imposed by a government. Long-Term Debt: Debt with a maturity of more than one year after the date of issuance. Mixed Beverage Tax: A tax imposed on the gross receipts of a Licensee for the sale, preparation or service of mixed beverages or from the sale of ice or non-alcoholic beverages and consumed on the premised of the permittee. Modified Accrual Basis: The accrual basis of accounting adapted to the governmental fund type spending measurement focus. Under it, revenues are recognized when they become both “measurable” and “available to finance expenditures of the current period.” Expenditures are recognized when the related fund liability is incurred except for (1) inventories of materials and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay and other employee benefit amounts which need not be recognized in the current period, but for which larger-than-normal accumulations must be disclosed in the notes to the financial statements; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; (5) principal and interest on long-term debt which are generally recognized when due. Nonspendable Fund Balance: includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or permanent funds. Operating Budget: Plan of current expenditures and the proposed means of financing them. The annual operating budget (or, in the case of some state governments, the biennial operating budget) is the primary means by which most of the financing acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Even where not required by law, however, annual operating budgets are essential to sound financial management and should be adopted by every government. Operating Expenses: Fund expenses which are directly related to the fund’s primary service activities. Operating Income: The excess of fund operating revenues over operating expenses. Operating Revenues: Fund revenues, which are directly related to the fund’s primary service activities. They consist primarily of use charges for services. Ordinance: A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Ordinarily, the statutes or charter will specify or imply those legislative actions, which must be by ordinance and those which may be by resolution. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, universally require ordinances. Other Financing Sources: Governmental fund general long-term debt proceeds, operating transfers out, and material proceeds of fixed asset dispositions. Such amounts are classified separately from revenues. Overlapping Debt: The proportionate share of the debts of local governments located wholly or in part within the limits of the reporting government, which must be borne by property within each government. Performance Measures: Specific quantitative and qualitative measures of work performed as an objective of the department. Workload Measures: Workload measures should reflect how well a program is performing its activities to meet the needs of the public and the organization. They should measure productivity, effectiveness, efficiency or the impact of a service provided. While activity measures indicate “how much” activity the division/department is performing, workload measures identify “how well” the division/department is performing. Program Budget: A budget that focuses upon the goal and objectives of an agency or jurisdiction rather than upon its organizational budget units or object classes or expenditures. Program Description: Describes the nature of service delivery provided at this level of funding. 187 Trophy Club, TX | Annual Program of Services FY15-16 Budget 187 It clearly explains how service delivery will be different from the prior budget year. Program Goals: Program goals describe the purpose or benefit the division/department plans to provide to the community and/or organizations it serves. Goals identify the end result the division/ department desires to achieve with its activities, but goals are often ongoing and may not be achieved in one year. Property Tax: Property taxes are levied on both real and personal property according to the property’s valuation and the tax rate. Property Under Protest: Properties whose owners have filed an appraisal protest. These values are separated because their value is unknown until a ruling is given on the protest. Proprietary Fund: A fund established to account for operations (a) that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including depreciation) for providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Reconciliation: A detailed analysis of changes in revenue or expenditure balances within a fund. Requisition: A written request from a department to the purchasing office for specific goods or services. This action precedes the authorization of a purchase order. Reserve: An account used to indicate that a portion of a fund's balance is legally restricted for a specific purpose and is, therefore, not available for general appropriations. Restricted Fund Balance: includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and child safety fees. Revenue Bonds: Bonds usually sold for constructing a project that will produce revenue for the government. All or part of the revenue is used to pay the principle and interest of the bond. Revenues: (1) Increases in governmental fund type net current assets from other than expenditure refunds and residual equity transfers. Under NCGA Statement 1, general long-term debt proceeds and operating transfers in are classified as “other financing sources” rather than revenues. (2) Increases in proprietary fund type net total assets from other than expense refunds, capital contributions and residual equity transfers. Under NCGA Statement 1, operating transfers in are classified separately from revenues. Sales Tax: A general “sales tax” is levied on persons and businesses selling merchandise or services in the town limits on a retail basis. The categories for taxation are defined by state law. Money collected under authorization of this tax is for the use and benefit of the Town; however, no town may pledge anticipated revenues from this source to secure the payment of funds or other indebtedness. Tax Ceiling: is the amount you pay in the year that you qualified for the age 65 or older or disabled person exemption. The taxes on your home may go below the ceiling but not above the amount of the ceiling. Tax Rate: The amount of tax stated in terms of a unit of the tax base; for example, $.50 per $100 (one hundred dollars) assessed valuation of property. Tax Roll: The official list showing the amount of taxes levied against each taxpayer or property. Frequently, the tax roll and the assessment roll are combined, but even in these cases the two can be distinguished. Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, sewer service charges. Unassigned Fund Balance: is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. Working Capital: Budgeted working capital is calculated as a fund’s current assets less current liabilities and outstanding encumbrances. 188 Trophy Club, TX | Annual Program of Services FY15-16 Budget 188 ACH - Automated Clearing House ARB - Appraisal Review Board AV - Ad Valorem CAFR - Comprehensive Annual Financial Report CCPD – Crime Control Prevention District CIP - Capital Improvement Program CPR - Cardiopulmonary Resuscitation CO – Certificates of Obligation CY - Current Year DFW – Dallas and Fort Worth DWI – Driving While Intoxicated EDC – Economic Development Corporation E.g. - for example (from the Latin exempli gratia) EMS – Emergency Medical Service ERU - Equivalent Residential Unit FMLA – Family Medical Leave Act FNI - Freese and Nichols Inc. FTE – Full-Time Equivalent FY - Fiscal Year GAAP - Generally Accepted Accounting Principals GASB - Governmental Accounting Standers Board GFOA – Government Finance Officers Association of the United States and Canada GIS - Geographic Information Systems GO – General Obligation HD - High Definition HR - Human Resources HRA - Health Reimbursement Account HSA – Health Savings Account HR – Human Resources HUBs - Historically Under Represented Businesses I.e. - in other words or that is (from the Latin id est) I & S – Interest and Sinking LGIPs - Local Government Investment Pools M & O - Maintenance and Operation MUD – Municipal Utility District NIC - Net Interest Costs NEFDA - Northeast Fire Department Association NISD – Northwest Independent School District ORR - Open Records Request P & I – Principal and Interest P & Z – Planning and Zoning PID – Public Improvement District PIFA - Public Funds Investment Act PIO - Public Information Officer PPACA - Patient Protection & Affordable Care Act PPO - Preferred Provider Organization ACRONYMS 189 Trophy Club, TX | Annual Program of Services FY15-16 Budget 189 PVR - Personal Video Recorder PY - Prior Year RFB - Request for Bid RFP - Request for Proposal RFQ - Request for Quote RMS - Records Management Systems SGR – Strategic Government Resources Inc. SOP - Standard Operating Procedure TC - Trophy Club TCP - Trophy Club Park TIC - True Interest Costs TIF – Tax Incremental Finance TIRZ #1 - Tax increment Reinvestment Zone #1 TML – Texas Municipal League TML IEBP – Texas Municipal League Intergovernmental Employee Benefits Pool ZBA – Zoning Board of Adjustment