Adopted Budget Includes $396,383 in Estimated Tax Revenue to Be Raised from New Property Added to the Tax Roll This Year

CITY OF FRIENDSWOOD, TEXAS ADOPTED ANNUAL BUDGET October 1, 2020 - September 30, 2021 Mayor Mike Foreman Mayor Pro Tem Trish Hanks Position #1 Steve Rockey Position #2 Sally Branson Position #4 Robert J. Griffon Position #5 John Scott Position #6 Brent Erenwert BUDGET TEAM City Assistant City Police Manager City Manager Secretary Chief Morad Kabiri Steven Rhea Melinda Welsh Robert B. Wieners Fire Director of Director of Director of Marshal Engineering Public Works Library Services Brian Mansfield Jildardo Arias René Ibarra Matt Riley Director of Director of Director of Director of Community Parks & Human Information Development Recreation Resources Technology Aubrey Harbin James Toney Bill Bender James O'Brien Director of Deputy Director Administrative of Administrative Budget Financial Services Services Manager Analyst Katina Hampton Rhonda Bloskas Jennifer Walker Emily Peltier Thanks to all the City Staff who assisted throughout the budget process. Budget cover designed by Katy Blanchard CITY OF FRIENDSWOOD Organization Chart Citizens of Friendswood City Attorney Mayor and City Council City Secretary x Prosecutors x Administration x Records Management Municipal Judge x Elections City Manager Boards, Committees, x Administration & Commissions Assistant City Manager Administrative Services x Economic Development x Finance x Communications/Public Information x Utility Billing x Municipal Court Community Development x Administration Planning and Zoning Human Resources x x Human Resources x Inspections/Code Enforcement x Insurance x Risk Management Parks & Recreation Information Technology x Administration x Cybersecurity x Recreation Programs x Infrastructure Services & Ops x Park Operations x Facility Operations Fire Marshal x Administration Public Works x Investigations/Inspections x Administration x Emergency Management Streets / Sidewalks x FVFD Contract x x Drainage Operations x Water Operations Police Department x Sewer Operations x Administration x Patrol Engineering Criminal Investigations x x Engineering x Animal Control x Projects x Communications Library Services x Friendswood Public Library In accordance with Texas Senate Bill (S.B.) 2 On September 14, 2020, the City’s fiscal year 2020-2021 budget was adopted with revenues and expenses based on a tax rate of $0.497314. On October 1, 2020, the City of Friendswood ratified adoption of its 2020 tax rate of $0.487314 per $100 property valuation. This tax rate will not raise taxes for maintenance and operations beyond last year’s tax rate. The adopted tax rate of 48.73 cents is 4.5 cents or 8.5% less than the voter-approval tax rate of 53.25 cents. The adopted budget includes $396,383 in estimated tax revenue to be raised from new property added to the tax roll this year. The City of Friendswood’s total tax debt service obligation is $47,567,582. Debt service obligations of the City of Friendswood secured by property taxes, in fiscal year 2020-2021: $3,729,089. Property Tax Comparison FY 20 FY 21 (per $100 valuation) Adopted Adopted Adopted Tax Rate $0.521439 $0.487314 Adopted O&M Rate $0.432160 $0.392152 Adopted I&S Rate $0.089279 $0.095161 No New Revenue Tax Rate (effective tax rate) $0.495289 $0.487314 No New Revenue Operating Rate $0.475100 $0.476906 Maximum No New Revenue Operating Rate $0.513108 $0.493597 Maximum Debt Tax Rate $0.104879 $0.108144 Voter Approved Tax Rate (rollback rate) $0.553481 $0.532452 Data included in the table is reflective of State Comptroller’s Truth-In-Taxation guidelines for informational purposes. City of Friendswood’s 2020 adopted total tax rate is $0.4873 which includes the maintenance & operations (M&O) rate of $0.3921 and the debt service (I&S) rate of $0.0952. City Council Position Vote on Budget Vote on Tax Rate Mike Foreman Mayor Yes Yes Trish Hanks Mayor Pro-Tem Yes No Steve Rockey Position 1 Yes Yes Sally Branson Position 2 Yes Yes Robert J. Griffon Position 4 Yes Yes John Scott Position 5 No Yes Brent Erenwert Position 6 Yes Yes Distinguished Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Friendswood. Texas for its annual budget for the fiscal year beginning October 1, 2019. 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. Guide to Use of the Budget The primary purpose of this document is to plan both the operating and capital improvement expenditures in accordance with the policies of the City of Friendswood. By adoption of this budget, the City Council establishes the level of services to be provided, the amount of taxes and utility rates to be charged and the various programs and activities to be provided. The Introduction and Overview section includes the City Manager’s budget message with a “budget-in-brief” summary. Also featured in this section is an Overview of the City; detailing community and population demographics, Fiscal Year Fact Sheet of the City’s property tax base, staffing summary, utility customer count and utility rates. This section presents City Council’s mission statement and strategic goals and long range planning tools used to guide the City’s budget process. The Financial Structure, Policy and Process section begins with flowcharts listing of each of the City’s funds. Fund narratives follow providing definitions for each fund utilized by the City and the funds’ basis of accounting and budgeting. A matrix correlating the City’s fund uses by functioning unit (City department) is incorporated. The City’s Financial Management Policy and Investment Policy is included. Budget provisions from the City’s Charter are included and details of the budget process and this year’s budget calendar close this section. The Financial Summaries section provides the revenues, expenditures and proposed ending fund balance for the City’s governmental funds as well as enterprise funds. Governmental funds include General Fund, Police Investigation Funds, Fire/EMS Donation Fund, Hazard Mitigation Grant Program, Texas Water Development Board Flood Mitigation Acquisition Grant, 2017 Community Development Block Grant-Disaster Relief (Harris and Galveston County), Municipal Court Fund, Sidewalk Installation Fund, Park Land Dedication Fund, Streets Maintenance Fund, Tax Debt Service Fund, 1776 Park Trust Fund and General Obligation Bonds Construction Funds. Enterprise funds include Water and Sewer Operation Fund, Water and Sewer Revenue Bonds Construction Funds, Water and Sewer CIP/Impact Fee Funds, and Water and Sewer Revenue Debt Service Fund. Additional funds are the Vehicle Replacement Fund and Friendswood Downtown Economic Development Fund. A description of each fund precedes the fund schedules and includes the basis of budgeting. The section also includes detailed revenue schedules by fund and account element/object and inter-fund transfer schedules. The next section is reserved for the Debt & Capital section. The tax and revenue debt service portion of this section contains summary schedules, tax debt service and revenue debt service to maturity charts and payment schedules for each bond issue of the City. Currently, the City’s Capital Improvement Plan is being reviewed by the Community Development Department, Engineering Department, Public Works Department, and other City departmental Directors. The adopted budget document includes available information from the Capital Improvement Program for the upcoming budget year by fund and project as well as the detail by object account. The next section is entitled Departmental Information. Each department includes: (1) an organizational chart depicting the department structure; (2) department narrative, goals, objectives and performance measures; (3) department summary with department totals across all funds and a departmental staffing table showing the full-time equivalents. The general ledger account number segment for fund, department and division accounts are included for cross-reference to the detail division budgets. The detailed departmental pages are formatted to include FY19 actual; FY20 original budget; FY20 amended budget; year to date 6/30/2020 actual expenditures; year-end estimate for FY20; and FY21 adopted budget data. The Supplemental Information section contains a City-wide personnel schedule by full-time equivalents, departmental decision package recommendations, sales tax revenue comparison schedule, estimated tax valuations, historical tax levy and tax rate comparisons, including graphs, and glossary of budget terminology and acronyms. Table of Contents INSTRUCTIONS FOR NAVIGATING THE ANNUAL BUDGET PDF DOCUMENT Bookmarks for major sections are provided in the navigation pane on the left. Click on the bookmark to jump directly to that section. If a “>” sign is at the left of a bookmark, click on the “>” to bring up subheadings. The Table of Contents is hyperlinked. To jump to a specific page or subsection from the Table of Contents, hover the pointer finger on the title or page number and click the mouse. Click the Table of Contents box located at the bottom right corner of any page to return to page 7 of the Table of Contents at any time. INTRODUCTION AND OVERVIEW City

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